Connect with us

Published

on

Liz Truss has apologised for the “mistakes” she has made in her first few volatile weeks as prime minister – but insisted she will lead the Tories into the next general election.

Speaking for the first time after almost all the tax cuts announced in last month’s mini-budget were scrapped, Ms Truss said: “I recognise we have made mistakes.

“I am sorry for those mistakes, but I fixed those mistakes. I appointed a new chancellor, we have restored economic stability and fiscal discipline.

“What I now want to do is go on and deliver for the public.

“We were elected on the 2019 manifesto, and I want to go on and deliver that.”

Please use Chrome browser for a more accessible video player

Rigby tells chancellor: ‘PM has totally failed’

Chancellor Hunt urges Tories to ‘give Truss a chance’

After a fifth Conservative MP – senior backbencher Sir Charles Walker – warned her days are numbered, Ms Truss said she was focused on “delivering for the British public”.

More on Liz Truss

“We are in difficult economic times; we are in different international times with the war being perpetrated in Ukraine.

“Now is the time to focus on delivering, making sure we are delivering on our energy package,” she said.

Speaking to the BBC, the prime minister added: “I wanted to act… to help people with their energy bills to deal with the issue of high taxes, but we went too far and too fast. I’ve acknowledged that.”

Ms Truss said it was the “mark of an honest politician” to admit their mistakes.

She said she is “sticking around” because she was “elected to deliver for this country”, adding: “I will lead the Conservatives into the next general election.”

Beth Rigby analysis: ‘It can’t go on like this’ – it looks to be over for PM Truss

Please use Chrome browser for a more accessible video player

Has the chancellor done enough?

Ms Truss is battling to save her premiership after new chancellor Jeremy Hunt tore up the bulk of the economic strategy that brought her into office as prime minister just six weeks ago.

On Tuesday, she is expected to meet the European Research Group of Conservative MPs, after meeting with the One Nation wing of the party on Monday evening.

Ms Truss became PM after winning the Tory leadership contest on the back of promises to dramatically cut tax and upend the status quo in the Treasury.

But she has been left humiliated by a raft of U-turns after her tax-slashing mini-budget unleashed turbulence in the financial markets, sending the pound to record lows against the dollar, interest and mortgage rates soaring, and forcing the Bank of England to intervene.

The chaos ultimately led to Mr Kwarteng’s downfall, and he was sacked after just 38 days in the job.

On Monday, his replacement as chancellor, Mr Hunt, revealed he was reversing nearly all the tax cuts unveiled last month and said he would be setting up an economic advisory council to assist the government as it seeks to repair the damage caused by Ms Truss’s fiscal policies.

The changes Mr Hunt revealed include:

• No cuts to dividend tax rates
• Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
• No new VAT-free shopping scheme for overseas visitors to the UK
• No freeze on alcohol duty rates
• Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
• Energy price guarantee only until April 2023

He also signalled there could be U-turns on other policy areas, including the windfall tax, pensions triple lock and pledge to raise defence spending.

The government had already axed plans to scrap the 45p rate of income tax for top earners and had U-turned on a promise not to increase corporation tax.

Please use Chrome browser for a more accessible video player

‘I don’t think her position is recoverable’

The extraordinary events have led to some Tory MPs calling for Ms Truss to go, with Sir Charles Walker telling Sky News political editor Beth Rigby: “I think her position is untenable. She has put colleagues, the country, through a huge amount of unnecessary pain and upset and worry.”

He suggested she has one to two weeks to resign before MPs try to remove her.

But Mr Hunt has insisted Ms Truss will be prime minister at Christmas, as he called on rebel Tory MPs to “give her a chance”.

Continue Reading

UK

Who are the suspended Labour MPs – and why did they lose the whip?

Published

on

By

Who are the suspended Labour MPs - and why did they lose the whip?

Sir Keir Starmer has suspended four Labour MPs today for “repeated breaches of party discipline”.

Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell were suspended from the parliamentary Labour Party and will sit as independent MPs.

All four voted against the government’s welfare reforms earlier this month, among 47 party MPs to rebel.

Follow the latest at Politics Hub

However, Sky News understands that this isn’t the only reason behind the decision, and that more suspensions could come.

But who are the four MPs suspended? And how critical were they of the government?

Brian Leishman

Brian Leishman.
Pic: Uk Parlament
Image:
Pic: UK Parliament

The MP for Alloa and Grangemouth was first elected in last year’s general election. While the constituency was contested for the first time that year, it would have been an SNP seat notionally.

Mr Leishman is also a member of the Socialist Campaign Group inside Labour and was previously elected to Perth and Kinross Council in 2022.

A frequent voter against the government, he has criticised his party for not doing enough to save Grangemouth oil refinery, and rebelled against votes on the Winter Fuel Allowance and welfare.

Please use Chrome browser for a more accessible video player

From April: Minister defends refinery closure

In a statement, he said: “I am a proud Labour member, and I remain committed to the party.”

He added that he wishes “to remain a Labour MP and deliver the positive change many voters are craving,” but added he voted against the government on some issues to represent his constituents.

“I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences,” he said.

“It is the honour of my life to be the MP for Alloa and Grangemouth, and my priority remains representing and fighting for constituents, whether they voted for me or not.”

Chris Hinchliff

Chris Hinchliff .
Pic: Uk Parliament
Image:
Pic: UK Parliament

Another 2024 newcomer to Parliament, the MP for North East Hertfordshire is one of the younger politicians at 31 years old.

He won the constituency for the first time since it was established in 1997.

As MP, Mr Hinchliff has supported rebellions on cuts to welfare and the Winter Fuel Allowance, and also proposed amendments to the government’s Planning and Infrastructure Bill – criticising the government’s consultation with private finance groups – in April.

So far, the MP hasn’t made a public statement, but he had previously said he didn’t mind losing the whip over his opposition to the welfare cuts.

Read more:
Starmer would be foolish not to recognise threat posed by a Corbyn party
Dozens of MPs call for UK to recognise Palestine as state
PM: former Tory ministers have ‘serious questions to answer’ over Afghan data breach

Neil Duncan-Jordan

Neil Duncan-Jordan.
Pic: Uk Parliament
Image:
Pic: UK Parliament

The MP for Poole was also elected in the 2024 election, winning his seat from the Conservatives by just 18 votes. It was the first time Labour had won in the constituency.

Before standing for election, Mr Duncan-Jordan was a regional officer for UNISON, one of the largest trade unions in the UK.

He’s been an outspoken critic of proposed cuts to welfare and disability payments, calling the welfare bill a “dog’s dinner” and last year leading an early day motion to postpone an end to the Winter Fuel Allowance.

In response to losing the whip, said in a statement: “I understood this could come at a cost, but I couldn’t support making disabled people poorer”.

“Although I’ve been suspended from the Parliamentary Labour Party today,” he added, “I’ve been part of the Labour and trade union movement for 40 years and remain as committed as ever to its values.

“To my constituents: it’s business as usual. I remain your hardworking local MP, I will continue to take up your concerns and speak up for Poole.”

Rachael Maskell

Rachel Maskell. Pic: UK Parliament
Image:
Pic: UK Parliament

Shortly before 4pm, the MP for York Central became the fourth MP to be suspended by the government for rebelling.

In Parliament since 2015, Ms Maskell led the welfare rebellion against the government’s reforms – and voted against them even after they were significantly watered down.

Please use Chrome browser for a more accessible video player

Maskell slams ‘Dickensian’ welfare cuts

Earlier this month, she told Sky News presenter Gareth Barlow: “No one feels comfortable when the family is arguing, and that’s why listening is so important.

“I want to see instituted back in the heart of the party a recognition of the role of backbenchers.”

And speaking to Sky’s chief political correspondent Jon Craig after her suspension, she said: “The reason I have been suspended is because I voted in the way I did. I believe I am fighting for people that really matter, the poorest people in society.

“That is why the Labour Party was created – I will never give up that fight.”

Continue Reading

UK

Starmer says former Tory ministers have ‘serious questions to answer’ over Afghan data breach

Published

on

By

Starmer says former Tory ministers have 'serious questions to answer' over Afghan data breach

Sir Keir Starmer has said former Tory ministers have “serious questions to answer” about how the names of Afghans who worked with UK forces were exposed.

Nearly 7,000 Afghan nationals are being relocated to the UK after their names were accidentally sent in an email in February 2022, when Boris Johnson was prime minister, but the leak was only discovered by the British military in August 2023, when Rishi Sunak was PM.

A super-injunction, preventing the reporting of the mistake, was imposed that year in an attempt to prevent the Taliban from finding out about the leak.

The Conservative government at the time then started transporting thousands of Afghans to the UK in secret as they were in danger.

On Tuesday, the injunction was lifted.

Politics latest: Starmer hammered over unexpected inflation rise

Please use Chrome browser for a more accessible video player

Victim of Afghan data breach speaks to Sky

Kicking off Prime Minister’s Questions, Sir Keir said: “Ministers who served under the party opposite have serious questions to answer about how this was ever allowed to happen.

“The chair of the defence committee has indicated that he intends to hold further inquiries.

“I welcome that and hope that those who are in office at the time will welcome that scrutiny.”

The data breach saw a defence official accidentally release details of almost 19,000 people seeking to flee Afghanistan after the return of the Taliban.

Conservative leader Kemi Badenoch avoided mentioning the data breach, but Lib Dem leader Sir Ed Davey said it was “shocking” how it had been kept secret for three years.

Sir Ed said the prime minister will have the Lib Dems’ support if he decides to pursue a public inquiry.

Mr Healey’s Tory predecessor, Sir Ben Wallace, said he makes “no apology” for applying for the initial four-month injunction and insisted it was “not a cover-up”.

The scheme, which had been kept under wraps until yesterday, has so far cost hundreds of millions of pounds.

However, the total cost to the taxpayer of existing schemes to assist Afghans who are deemed eligible for British support, as well as the additional cost from the breach, will come to at least £6bn.

Please use Chrome browser for a more accessible video player

Afghans being relocated after data breach

Earlier, Defence Secretary John Healey told Sky News he is “deeply uncomfortable” with the government using a super-injunction to keep the massive data breach hidden.

He said: “I’m really deeply uncomfortable with the idea that a government applies for a super-injunction.

“If there are any [other] super-injunctions in place, I just have to tell you – I don’t know about them. I haven’t been read into them.

“The important thing here now is that we’ve closed the scheme.”

Mr Healey was informed of the breach while in opposition, and earlier this year he commissioned a review that led to the injunction being lifted.

He said “accountability starts now” and added Labour had to deal with the risks, court papers, intelligence assessments and different schemes when they came to power last summer before they could lift the injunction.

Continue Reading

UK

Inflation jumps to 3.6% on fuel and food price pressures

Published

on

By

Inflation jumps to 3.6% on fuel and food price pressures

The rate of inflation has risen by more than expected on the back of fuel and food price pressures, according to official figures which have prompted accusations of an own goal for the chancellor.

The Office for National Statistics (ONS) reported a 3.6% level for the 12 months to June – a pace not seen since January last year.

That was up from the 3.4% rate seen the previous month. Economists had expected no change.

Money latest: What do inflation figures mean for rate cut prospects?

ONS acting chief economist Richard Heys said: “Inflation ticked up in June driven mainly by motor fuel prices which fell only slightly, compared with a much larger decrease at this time last year.

“Food price inflation has increased for the third consecutive month to its highest annual rate since February of last year. However, it remains well below the peak seen in early 2023.”

A key driver of food inflation has been meat prices.

More from Money

Beef, in particular, has shot up in cost – by more than 30% over the past year – according to Association of Independent Meat Suppliers data reported by FarmingUK.

Image:
Beef has seen the biggest percentage increase in meat costs. Pic: PA

High global demand alongside raised production costs have been blamed.

But Kris Hamer, director of insight at the British Retail Consortium, said: “While inflation has risen steadily over the last year, food inflation has seen a much more pronounced increase.

“Despite fierce competition between retailers, the ongoing impact of the last budget and poor harvests caused by the extreme weather have resulted in prices for consumers rising.”

It marked a clear claim that tax rises imposed on employers by Rachel Reeves from April have helped stoke inflation.

Balwinder Dhoot, director of sustainability and growth at the Food and Drink Federation, said: “The pressure on food and drink manufacturers continues to build. With many key ingredients like chocolate, butter, coffee, beef, and lamb, climbing in price – alongside high energy and labour expenses – these rising costs are gradually making their way into the prices shoppers pay at the tills.”

Chancellor Rachel Reeves said of the data: “I know working people are still struggling with the cost of living. That is why we have already taken action by increasing the national minimum wage for three million workers, rolling out free breakfast clubs in every primary school and extending the £3 bus fare cap.

“But there is more to do and I’m determined we deliver on our Plan for Change to put more money into people’s pockets.”

The wider ONS data is a timely reminder of the squeeze on living standards still being felt by many households – largely since the end of the COVID pandemic and subsequent energy-driven cost of living crisis.

Record rental costs alongside elevated borrowing costs – the latter a result of the Bank of England’s action to help keep a lid on inflation – have added to the burden on family budgets.

Please use Chrome browser for a more accessible video player

Is the cost of living crisis over?

Most are still reeling from the effects of high energy bills.

The cost of gas and electricity is among the reasons why the pace of price growth for many goods and services remains above a level the Bank would ideally like to see.

Added to that is the toll placed on finances by wider hikes to bills. April saw those for water, council tax and many other essentials rise at an inflation-busting rate.

The inflation figures, along with employment data due tomorrow, are the last before the Bank of England is due to make its next interest rate decision on 7 August.

The vast majority of financial market participants, and many economists, expect a quarter point cut to 4%.

That forecast is largely based on the fact that wider economic data is suggesting a slowdown in both economic growth and the labour market – twin headaches for a chancellor gunning for growth and juggling hugely squeezed public finances.

Read more from Sky News:
Chancellor considering ‘changes’ to ISAs
Most important part of Reeves’s speech was what wasn’t said
HMRC doesn’t know how many billionaires pay tax in the UK

Professor Joe Nellis, economic adviser at the advisory firm MHA, said of the ONS data: “This is a reminder that while price rises have slowed from the highs of 2021-23, the battle against inflation is far from over and there is no return to normality yet – especially for many households who are still feeling the squeeze on essentials such as food, energy, and services.

“However, while the Bank of England is expected to take a cautious approach to interest rate policy, we still expect a cut in interest rates when the Monetary Policy Committee next votes on 7th August.

“Despite inflation at 3.6% remaining above the official 2% target, a softening labour market – slowing wage growth and decreasing job vacancies – means that the MPC will predict inflation to begin falling as we head into the new year, justifying the lowering of interest rates.”

Continue Reading

Trending