Chancellor Jeremy Hunt has reiterated the government’s commitments to make benefits sanctions harsher – while also committing to raising the national living wage above £11 an hour.
In his speech to the Conservative Party conference in Manchester, the senior minister also revealed a plan to save £1bn by freezing the expansion of the Civil Service and reducing the level of staffing to pre-pandemic levels.
Mr Hunt‘s intervention comes around six weeks ahead of his autumn financial statement.
While not as tumultuous as his predecessor’s party conference speech last year – where Kwasi Kwarteng had to admit his party was U-turning on a key part of his mini-budget – Mr Hunt is still under pressure.
Many voices within the Conservative Party want him to cut taxes, including cabinet ministers.
Speaking to Sky News’ Sunday Morning with Trevor Phillips, Levelling Up Secretary Michael Gove said he would “like to see the tax burden reduced by the next election”.
Mr Hunt on Saturday said the government was “not in a position to talk about tax cuts at all” – but all bets are off when it comes to party conferences.
The government has been eyeing welfare changes as a way to cut down on spending, and also encouraging people back into work in a bid to grow the economy.
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Image: The chancellor will address conference today
Mr Hunt told the party membership in Manchester: “Since the pandemic, things have been going in the wrong direction. Whilst companies struggle to find workers, around 100,000 people are leaving the labour force every year for a life on benefits.
“As part of that, we will look at the way the sanctions regime works. It is a fundamental matter of fairness. Those who won’t even look for work do not deserve the same benefits as people trying hard to do the right thing.”
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3:49
Government divided over tax
The chancellor also announced that Work and Pensions Secretary Mel Stride would look again at the benefit sanctions regime to make it harder for people to claim benefits while refusing to take active steps to move into work.
And a spokesman confirmed the proposals would be set out in the upcoming autumn statement.
Speaking last month, Mr Stride said that he was consulting on changes to the Work Capability Assessment, the test aimed at establishing how much a disability or illness limits someone’s ability to work.
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Tories tight-lipped on tax cut prospects
Mr Hunt also confirmed a new policy that could seek people looking for new jobs, with a freeze on the number of civil servants.
“We have the best civil servants in the world – and they saved many lives in the pandemic by working night and day,” said the chancellor. “But even after that pandemic is over, we still have 66,000 more civil servants than before.
“New policies should not always mean new people. So today I’m freezing the expansion of the civil service and putting in place a plan to reduce its numbers to pre-pandemic levels. This will save £1bn next year.
“And I won’t lift the freeze until we have a proper plan not just for the civil service but for all public sector productivity improvements.”
But the move was criticised by the Public and Commercial Services union general secretary, Mark Serwotka, who said: “Thirty seconds after praising civil servants for their work during the pandemic, Jeremy Hunt announced a freeze on recruitment.
“Shrinking an already-overstretched and under-resourced civil service will inevitably result in cuts to vital services that people depend on.”
He added: “As usual, a Conservative government is seeking to blame working people for the incompetence of their own ministers.”
Raising the living wage
On the national living wage, Mr Hunt said the government was going to accept the Low Pay Commission’s recommendation to raise the baseline to at least £11 an hour from April 2024.
Resisting sizeable pay increases in the public sector has been part of the government’s strategy to keep spending and inflation under control.
Mr Hunt said: “Since we introduced the national living wage, nearly two million people have been lifted from absolute poverty. That’s the Conservative way of improving the lives of working people. Boosting pay, cutting tax.”
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Ahead of the speech, Prime Minister Rishi Sunak, said: “I’ve always made it clear that hard work should pay, and today we’re providing a well-earned pay rise to millions of people across the country.
“This means a full-time worker will receive an increase of over £1,000 to their annual earnings, putting more money in the pockets of the lowest paid.
“We’re sending a clear message to hard-working taxpayers across the country; our Conservative government is on your side”.
Hunt struggles to be heard above tax cut hollers
The chancellor’s speech usually sets the agenda at conference, but today, Jeremy Hut was playing catch up.
He’s been struggling to be heard among the clamour within his party for tax cuts.
Today he attempted to regain control of the narrative – chiefly that bringing down inflation is the “best tax cut” the government can give to the public.
“We’re getting there,” he said. “The plan is working and now we must see it through – just as Margaret Thatcher did many years ago.”
It was a rebuke to members of his own party as much as it was to Labour, as just hours earlier, former prime minister Liz Truss was leading the charge on the issue.
Speaking at a packed fringe event, she said that tax cuts were the key to making the Tories “the party of business again” and “unlocking economic growth”.
And she urged the government to cut corporation tax to 19% at the autumn statement.
But during his appearance, the chancellor warned that while it was easy to support a high growth and low tax economy, it was “harder to make it happen”.
Labour’s shadow work and pensions secretary, Liz Kendall, said her party “believes in responsibility – that those who can work, should look for work and take jobs when they are offered”.
But she said the government also had “a responsibility to create real opportunities and not write people off”, adding: “This is something the Tories have utterly failed to deliver.
“We now have record numbers of people out of work due to long-term sickness, which is costing taxpayers an extra £15bn a year just since the pandemic.
“[Labour] will tackle the root causes of economic inactivity by driving down NHS waiting lists, reforming social security, making work pay, and supporting people into good jobs across every part of the country. Real opportunities matched by the responsibility to take them up – because that’s what fairness is all about.”
The World Transformed, a left-wing political festival, has historically ran alongside the Labour Party Conference as an unofficial fringe event.
But a lot has changed since it began in 2016, organised then by the Corbyn-backed group Momentum. And like the former Labour leader himself, TWT has gone independent.
From Thursday to Sunday, a programme of politics, arts and cultural events will be held in Manchester, a week after Labour’s annual party gathering ended.
“It no longer made any sense to be a fringe festival of the Labour conference,” Hope Worsdale, an organiser since 2018, tells Sky News. “We need a space for the independent left to come together.”
This decision was made before the formation of Your Party in July and the surge of support behind the Greens and its new leader Zack Polanski, but both these factors have given TWT some extra momentum. Organisers say it is not just a festival, but a “statement of intent from the British left” – and a left that looks different from how it used to.
Previous headline speakers were Labour MPs in the left-wing Socialist Campaign Group, and in 2021, the showstopper was American democrat Bernie Sanders calling in live for an event alongside John McDonnell.
Image: The World Transformed, previously headlined left-wing Labour MPs
Image: Bernie Sanders and John McDonnell in conversation at TWT in 2021
This year, Mr Polanski, Jeremy Corbyn and Zarah Sultana are the only British politicians due to speak at events – though Brian Leishman, who lost the Labour whip in the summer, is also scheduled on a panel.
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TWT was put on pause last year for organisers to reflect upon its role going forward, after Sir Keir Starmer’s election victory.
In 2021, 2022 and 2023, while he was leader of the opposition, the festival was able to “co-exist” with Labour as a space for activists on the left to discuss ideas.
But the prime minister’s “shift to the right” has alienated so many of those grassroots members that it was felt TWT’s core audience would no longer be at Labour Party conferences, says Hope, who joined Labour in the Corbyn years and has since left.
Image: TWT in 2016. Pic: TWT
Image: Event at TWT in 2023
“Our official position isn’t that Labour is dead and no one should engage with it,” she says.
“But they have shifted the values of Labour so radically since the last election, broken promise after promise, attacked civil liberties… there’s been such a suite of terrible decisions that mean people who are generally progressive and generally left wing feel like they have to take their organising elsewhere.”
So what’s on the cards?
There will be 120 events held in Hulme, Manchester, from Thursday to Sunday evening.
At the heart of the programme is daily assemblies, which organisers say are “designed to hold genuinely constructive debates about what we should do and how we should do it”.
But there’s just as much partying as there is politics – Dele Sosimi and his Afrobeat Orchestra are headlining the Saturday night slot while a “mystery guest” will host what TWT calls its “infamous” pub quiz on Friday night.
Back in 2018 that was Ed Miliband’s job, when 10,000 activists were expected to attend TWT. This year, organisers anticipate around 3,000 people will gather, but those involved insist this is a real chance for the left to strategise and co-ordinate, given the involvement of over 75 grassroots groups, trade unions, and activist networks.
Collaboration ‘vital’
A key question the left will need to address is how it can avoid splitting the vote given the rise of the Greens, socialist independents and the formation of Your Party,
One activist from the We Deserve Better organisation, which is campaigning for a left-wing electoral alliance and will be at TWT this weekend, acknowledged collaboration is “vital” if the left is to make gains under Britain’s first-past-the-post system.
Image: Jeremy Corbyn at TWT. Pic: Reuters
But it remains to be seen whether Your Party co-leaders Mr Corbyn and Ms Sultana can even work together following their public spat last month, let alone with other parties. The pair put on a united front at a rally in Liverpool on the eve of TWT, when Sultana said she was “truly sorry” and promised “no more of that”. But will the truce last?
“It’s not ideal”, says the activist. “Hopefully they are back on track…a lot of collaboration is happening at the grassroots and we need to make sure it’s formalised so we can beat Labour and the right, we need to put on united front.”
They point to seats like Ilford North, where Health Secretary Wes Streeting clung on by a margin of just 528 votes in the general election, after a challenge from British-Palestinian candidate Leanne Mohamad, who ran in protest against Labour’s stance on Gaza.
Meanwhile, in Hackney, the Greens are hoping to gain their first directly elected mayor next May, with the Hackney Independent Socialist Group of councillors throwing their weight behind the party’s candidate, Zoe Garbett.
The We Deserve Better activist says Labour’s “hostile war on the left” has made these areas ripe for the taking, and what is more important than party affiliation is galvanising momentum behind one candidate who shares socialist values on issues like public ownership and immigration – be they the Greens, independents, or Your Party.
“The World Transformed reflects a general reorientation of the left outside of Labour. If they are taking these places for granted, we are going to win. If we unite as the left then we can win even bigger. Bring it on.”
Is Labour in danger?
There is some cause for Labour to be worried. It is haemorrhaging votes to both the right and the left after a tumultuous first year in office (13% to Reform UK, 10% to the Greens and 10% to the Lib Dems, according to an Ipsos poll in September).
Many Labour MPs feel the prime minister has spent too much energy trying to “out Reform Reform” with a focus on immigration, and he needs to do more to win back moderate and progressive voters that will be gathering at TWT this weekend.
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Starmer’s ‘anti-Reform party’ gamble
One fed-up MP told Sky News it was a shame TWT had decided to branch away from Labour, but not a surprise.
“This was something that was on the cards for a while, a parting of the ways, it’s another thing to show what’s happening with the direction of the party.”
He said in previous years the festival “was full of people for the first time in their life who were excited about politics and had a leadership looking at how it could challenge the biggest issues in our country”.
“Debates could be heated but it was always a place for intellectual discussion and that inside the Labour Party is now dead.”
But he said the party ultimately had bigger things to worry about than TWT, with a budget round the corner and potentially catastrophic local elections in May.
“I don’t think it will keep Keir Starmer or Morgan McSweeney up at night.”
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