KEIR Starmer’s future as Prime Minister is looking increasingly untenable this morning as he faces growing calls for this resignation.
Labour suffered the worst set of election results in it’s history last week and anger over the party’s performance – and Starmer’s poor decision-making in particular – has built to boiling point.
Keir Starmer came out fighting with another ‘reset’ speech yesterday but critics were unconvinced by the latest pledges and clamour for the beleaguered PM to step down have continued to grow.
It’s understood some cabinet members are among the 70+ Labour MPS who are urging Starmer to go and this morning’s cabinet meeting promises to be a particularly difficult one for a PM who is seeing support evaporating by the hour.
Labour-supporting trade unions have been calling for a change of direction for some time and some have withdrawn funding from the political party they united to form in 1900. Last Thursday’s catastrophic defeat was the final straw:
JOINT STATEMENT FROM LABOUR’s AFFILIATED UNIONS
‘Labour’s affiliated unions are deeply concerned by the Party’s catastrophic election results. They show a stark disconnect between this Labour Government and the working people and communities that it was elected to represent.
‘Voters right across the country have sent a clear message: that this Government are not delivering on the promised change they so desperately want to see. This cannot continue. Voters want to see a radical new direction from Labour, that stems the tide of division and unites workers and communities in every part of the country.
‘TULO unions are united in calling for a fundamental change of direction on economic policy and political strategy, so that Labour do what it was elected to do: govern in the interests of workers.
‘Labour must also deliver the rebalancing of power in the workplace promised in the New Deal for Working People, in full, without any carve-outs or loopholes. The stakes are too high to continue on this path.
‘Labour’s unions have a responsibility to the Party that we created, and as a result TULO have demanded a meeting with the Prime Minister and Party Leadership to discuss the urgent change in direction that we all know is needed.’
STARMER RECRUITS BROWN AND HARMAN AS CALLS FOR RESIGNATION GROW
Keir Starmer has appointed two old (‘New’?) Labour figures following disastrous election results on Thirsday. The latest in a long line of ‘resets’ will see Gordon Brown and Harriet Harman taking on rolesin government.
Keir Starmer appointed Gordon Brown as the Prime Minister’s Special Reviewer on Global Finance and Cooperation yesterday. The former Prime Minister will advise on how global finance cooperation can build a stronger Britain, boosting the country’s security and resilience.
His appointment comes as the UK prepares to hold the Presidency of the G20 next year.
He will be tasked with developing new international finance partnerships that can support defence and security-related investment, including measures that underpin the UK’s relationship with Europe.
As part of the role he will engage with international leaders and finance institutions as well as private finance partners to establish multilateral finance mechanisms.
Gordon Brown was Britain’s longest-serving modern Chancellor of the Exchequer.
As Prime Minister, he worked with international counterparts as they responded to the worldwide financial crisis.
In April 2009, he hosted the G20 Summit in London where world leaders pledged to make an additional $1.1 trillion available to help the world economy through the crisis and restore credit, growth and jobs.
Gordon Brown will report directly to the to the Prime Minister. This is an unpaid part-time role.
Keir Starmer also appointed Harriet Harman as the Prime Minister’s Adviser on Women and Girls.
Baroness Harman will advise the PM on how to galvanise Government to deliver for women and girls.
She will work with ministers across Government to drive an impactful agenda focusing on tackling violence against women and girls, unlocking economic opportunity, and improving representation.
The role will see her draw on work with women across Parliament to identify action needed to tackle misogyny and deliver greater opportunity for women in parliamentary and public life.
As part of the appointment, she will also work with the Cabinet Secretary to drive a shift in culture across the Civil Service and Ministerial offices, enhancing opportunity for women and enhancing government delivery for women.
Throughout her career, Baroness Harman has been a vocal advocate for women and girls, including on issues such as women’s political representation, maternity rights, and tackling violence against women and girls.
In her previous role as Solicitor General, Harriet led a successful drive within government to make tackling domestic violence a priority.
The campaign led to the introduction of a new law – the Domestic Violence Crime and Victims Act – to ensure more effective prosecutions for domestic violence and a new network of 60 specialist domestic violence courts.
Her appointment underlines the Government’s commitment to empowering women and girls.
For the first time, this government has declared the scale of violence and abuse suffered by women and girls in this country is a national emergency.
The landmark Violence Against Women and Girls Strategy sets out how we will achieve our pledge to halve these vile crimes in a decade – stopping violence before it starts, relentlessly pursuing perpetrators and better supporting victims and survivors.
Baroness Harman will report directly to the to the Prime Minister. This is an unpaid part-time role.
The appointments come after a dreadful set of election results across the country on Thursday, brought about by increasing criticism of the Prime Minister’s decision-making.
The appointments smack of desperation as Starmer tries to shore up his position – incredible given the scale of his majority just two years ago.
Some (doubtless unwanted) words of advice from another Labour Party leader:
Growing anger within the Labour movement has now seen one backbench MP threaten to challenge Starmer’s leadership if no-one in the cabinet is willing to do so.
Catherine West has given her colleagues until tomorrow (Monday) to put up or shut up. Doubtless some telephones will be red hot over this weekend.
Following a poor Holyrood result that saw Labour sharing a distant second place with Reform, there’s a call for change at the top of Scottish Labour, too.
Campaign for Socialsim said: “Anas Sarwar and Jackie Baillie have failed to convince working class voters that we are on their side.
“They must now resign with grace and pass on the torch to those who can.”
David Graham, a former Labour Party councillor, was found guilty yesterday (23 July, 2025), following a trial at Kirkcaldy Sheriff Court.
The offences took place at various locations in Fife and Edinburgh between February and August, 2023.
The Fife councillor, who was suspended by the Labour Party two years ago, will be sentenced at a later date.
Detective Inspector Graham Watson said: “Graham is a manipulative individual who groomed and sexually abused his teenage victim.
“He was well-known and in a position of power when the offending took place.
“I would like to thank the female for her assistance in bringing him to justice.
“We remain committed to investigating all reports of sexual crime and would encourage anyone affected to report it.
“Every report is taken seriously and will be fully investigated, no matter how much time has passed, with support from our specially trained officers and partner agencies.”
CANTERBURY MP Rosie Duffield has resigned from the Labour Party, criticising Labour leader Sir Keir Starmer – now labelled Free Gear Keir – for accepting thousands of pounds worth of personal items while at the same time removing Winter Fuel Payments from thousands of struggling pensioners.
The UK’s long experiment with a low-rights, low-wage economy is drawing to an end, and employers need to recognise now is not the time for foot-dragging (writes TUC’s TIM SHARP).
Rupert Soames, president of business lobby group the Confederation of British Industry (CBI), was this week driven to acknowledge that improved workers’ rights is “really good for people who are employed”.
This matters because bolstering workers’ rights is central to the Labour Party’s New Deal for working people.
This pledges sweeping but necessary changes including stamping out the exploitative use of zero hours contracts, ending the ability of employers to fire and rehire workers on lower wages, and scrapping the current wait for up to two years for basic workplace protections.
Such reform is desperately needed.
Rise in insecure work
TUC analysis of official figures shows that by the end of 2022 there were around 3.9 million people in insecure employment, a rise of 23 per cent since the coalition took office – almost double the rise of 12 per cent in overall employment growth.
As Soames, having recently spent eight years as chief executive of outsourcing giant Serco, will be well aware: insecure work disproportionately affects groups of workers who are already discriminated against in the workplace, such as Black and minority ethnic (BME) workers.
Over half of those living in poverty are in working households – and this rises to three quarters of children living in poverty.
Even the current government promised 20 times to introduce an employment bill. But the pledge remains unfilled.
Faltering economy
Meanwhile, the flawed idea that weak workers’ rights means a stronger economy and higher productivity has been tested to destruction.
As the Resolution Foundation has pointed out: “Labour productivity grew by just 0.4 per cent a year in the UK in the 12 years following the financial crisis, half the rate of the 25 richest OECD countries (0.9 per cent).”
Moreover, things are getting worse not better. Economic growth is flatlining with the country teetering on the brink of recession.
The relentless undermining of wages and incomes has repercussions on spending in the economy, with household consumption failing.
This is why Richard Walker, boss of grocery chain Iceland, switched support to Labour citing concern about the impact of the rising cost of living on their customers.
Higher pay and greater security are clearly in the interests of both workers and businesses, for they mean more spending and more revenues for business.
Watering down
Soames warned that “European model” of stronger worker rights, while benefiting those in work, is “really bad for people who are unemployed because companies are terrified to take them on”.
This suggests some in business are oblivious to the events of the past decade or so.
The Marmot review, for example, recognised that insecure and poor quality employment is associated with an increased risk of physical and mental health worsening. That in turn leads to absence due to illness, and worklessness.
No wonder businesses continue to complain of staff shortages.
Indeed his language is reminiscent of the apocalyptic and entirely inaccurate warnings that a national minimum wage would lead to two million more unemployed.
The incoming Labour government in 1997 was right to disregard claims from the Right that the minimum wage would cost millions of jobs. Now there is a wealth of evidence, over 25 years of the minimum wage, that it has protected the lowest paid with no employment effects at all.
It should take unevidenced claims about the New Deal in the same spirit.
Behind the times
While some in the business lobby are dragging their heels, previous advocates of unconstrained free markets now advocate reform.
The OECD’s 2018 Jobs Strategy finally put to bed its long standing celebration of flexibility and market fundamentalism.
“Countries with policies and institutions that promote job quality, job quantity and greater inclusiveness perform better than countries where the focus of policy is predominantly on enhancing (or preserving) market flexibility,” it said.
In the UK, the Institute for Fiscal Studies warned that: “Higher earnings inequality, with low real earnings growth, and a very different labour market from 40 years ago have placed the world of work in a much more unequal and divisive place. To halt or reverse this trend requires significant attention be devoted to ways to restore and reinvigorate real earnings growth and to generate decent jobs with good career opportunities in an inclusive way”.
Conclusions
A radical and effective programme is long overdue both for workers – whether currently in employment, looking for work or will be joining the jobs market in future – and for the wider economy.
As TUC general secretary Paul Nowak told the CBI conference last year: “Decent employers will recognise the promise of Labour’s economic reset and work with unions to boost productivity, skills and security at work.”
Now is not the time for foot-dragging. The economy needs a major reboot and the opponents of change need to get out of the way.
New analysis shows pay gap between non-disabled and disabled workers is now 14.6% – higher than it was a decade ago
Disabled women face even bigger pay penalty of 30% – £3.73 an hour
TUC says Labour’s New Deal for Working People would be a “game changer” for disabled workers, introducing mandatory disability pay gap reporting and a day one right to flexible work
New analysis published by the TUC yesterday shows that non-disabled workers earn around a sixth (14.6%) more than disabled workers
The analysis reveals that the pay gap for disabled workers across the board is £1.90 an hour, or £66.50 per week – over what the average household spends on their weekly food shop (£62.20).
That makes for a pay difference of £3,460 a year for someone working a 35-hour week – and means that disabled people effectively work for free for the last 47 days of the year and stop getting paid today, on the day the TUC has branded Disability Pay Gap Day.
“Zero progress” on disability pay gap
The pay gap has fallen since last year, when the overall pay gap was £2.05 (17.2%) an hour.
The new analysis shows that the disability pay gap is now higher than it was a decade ago (13.2% in 2013/14) when the first comparable pay data was recorded.
And the gap is only slightly lower than when the TUC first launched Disability Pay Gap Day using 2016/17 data (when it was 15.0%).
Disability pay gap by gender and age
The new TUC analysis reveals that disabled women face the biggest pay gap. Non-disabled men are paid on average 30% (£3.73 an hour, £130.55 a week, or £6,780 a year) more than disabled women.
The research also shows that the disability pay gap persists for workers for most of their careers. At age 25 the pay gap is £1.73 an hour hitting a high of £3.18 an hour, or £111.30 a week, for disabled workers aged 40 to 44.
National, regional and industrial disability pay gaps
The analysis looked at pay data from across the country and found disability pay gaps in every region and nation of the UK.
The highest pay gaps are in Wales (21.6% or £2.53 an hour), followed by the South East (19.8% or £2.78 an hour) and the East of England (17.7% or £2.30 an hour).
The research found that disability pay gaps also vary by industry. The biggest pay gap is in financial and industrial services, where the pay gap stands at a huge 33.2% (£5.60 an hour).
Unemployment
Not only are disabled workers paid less than non-disabled workers, they are also more likely to be excluded from the job market.
Disabled workers are twice as likely as non-disabled workers to be unemployed (6.7% compared to 3.3%).
And the analysis shows disabled BME workers face a much tougher labour market – one in 10 (10.4%) BME disabled workers are unemployed compared to nearly one in 40 (2.6%) white non-disabled workers.
Zero-hours contracts
The analysis shows that disabled workers are more likely than non-disabled workers to be on zero-hours contracts (4.5% to 3.4%).
And disabled BME women are nearly three times as likely as non-disabled white men (6.0% to 2.2%) to be on these insecure contracts.
The TUC says zero-hours contracts hand the employer total control over workers’ hours and earning power, meaning workers never know how much they will earn each week, and their income is subject to the whims of managers.
The union body argues that this makes it hard for workers to plan their lives, look after their children and get to medical appointments.
And it makes it harder for workers to challenge unacceptable behaviour by bosses because of concerns about whether they will be penalised by not being allocated hours in future.
New Deal for Working People
The TUC is calling for government action to end the discrimination disabled workers’ face in the jobs market.
The union body says Labour’s New Deal for Working People would be a “game changer” for workers’ rights.
Labour has pledged to deliver new rights for working people in an employment bill in its first 100 days.
Labour’s new deal would:
Introduce disability and ethnicity pay gap reporting.
Strengthen flexible working rights by introducing a day one right to work flexibly.
Ban zero-hours contracts to help end the scourge of insecure work.
Give all workers day one rights on the job. Labour will scrap qualifying time for basic rights, such as unfair dismissal, sick pay, and parental leave.
Ensure all workers get reasonable notice of any change in shifts or working time, with compensation that is proportionate to the notice given for any shifts cancelled or curtailed.
Beef up enforcement by making sure the labour market enforcement bodies have the powers they need to undertake targeted and proactive enforcement work and bring civil proceedings upholding employment rights.
TUC General Secretary Paul Nowak said: “We all deserve to be paid fairly for the work we do. But disabled people continue to be valued less in our jobs market.
“It’s shameful there has been zero progress on the disability pay gap in the last decade. Being disabled shouldn’t mean you are given a lower wage – or left out of the jobs market altogether.
“Too many disabled people are held back at work, not getting the reasonable adjustments they need to do their jobs. And we need to strengthen the benefits system for those who are unable to work or are out of work, so they are not left in poverty.
“It’s time for a step change. Labour’s New Deal for Working People would be an absolute game changer for disabled workers. It would introduce mandatory disability pay gap reporting to shine a light on inequality at work.
“Without this legislation, millions of disabled workers will be consigned to many more years of lower pay and in-work poverty.”
The North Sea Transition Authority has today granted development and production consent for the Rosebank field, north-west of Shetland.
The consent has been given by the oil and gas regulator to owners Equinor and Ithaca Energy, following the acceptance of the Environmental Statement.
An NSTA spokesperson said: “We have today approved the Rosebank Field Development Plan which allows the owners to proceed with their project.
“The FDP is awarded in accordance with our published guidance and taking net zero considerations into account throughout the project’s lifecycle.”
GREEN MP Caroline Lucas described the announcement as “the greatest act of environmental vandalism in my lifetime, causing emissions equal to 28 lowest income countries, busting #climate targets & doing nothing for energy security since vast majority is for export” #climatecriminals
Labour’s Environment spokesperson, Shadow Climate and Net Zero Secretary Ed Miliband said: “Here’s what it means. Rosebank: £3.75bn of taxpayer subsidy which could have been invested in renewables. 80% of oil exported, not a penny off bills, equivalent to half all UK emissions for a year.
“Colossal waste of taxpayer money and climate vandalism.” However Ed’s boss Sir Keir Starmer has already said that a future Labour government will NOT reverse the decision.
More responses from environmental organisations to follow
OUR Scottish Future is to stage a major rally next month to make the case for a plan that makes Britain work for Scotland.
Welsh First Minister Mark Drakeford and Andy Burnham, the Mayor of Greater Manchester are confirmed as speakers at the event to be held on June 1st in Edinburgh.
They will be joined by former Prime Minister Gordon Brown, Scottish Labour leader Anas Sarwar and comedian and actor Arabella Weir to set out the case for radical reform to political institutions across the UK.
Mr Brown said yesterday that the vision of a new UK can unite people in Scotland and across Britain who are looking for a better future.
Our Scottish Future was formed three years ago to make the case for Scottish devolution and for reform of the UK.
Last year, the Brown Commission published its report on the UK’s Future, proposing major reforms to Westminster, a replacement of the House of Lords, and further devolution across the UK.
The June 1st rally will aim to bring together supporters from across the UK to show the united demands for change both in Scotland and outside it.
Gordon Brown said:“There are many things we are divided about as a country, whether it’s over culture, the constitution, or on the economy. But we can all unite around a mission to change the UK and tackle the great challenges of the 21s century: poverty, inequality, climate change, and sustained economic growth.
“In our politics, people are looking for a hopeful message which shows how Scotland and the UK can work together.”
Mark Drakeford, First Minister of Wales and Leader of Welsh Labour, said:“The current union of the United Kingdom isn’t working for people in any part of this country we are proud to call home.
“We need a new, strengthened union, which guarantees that no one will find themselves unable to eat or relying on a food bank; facing old age or illness at the margins of society. A union which offers strong devolution for all parts of the UK; a union where all four nations are treated as equals.
“In Gordon’s report we have a blueprint for real and lasting change to transform our country for the better.”
The Mayor of Greater Manchester, Andy Burnham said:“Just like Scotland, Wales and Northern Ireland, the North of England has suffered from an over-concentration of political and economic power in the South East of the UK.
“This is changing with the devolution of power out of Westminster but in our experience it works best when it goes deep. Places in all parts of the UK should have the ability to build a better future from the bottom up and collaborate with neighbours.
“The creation of Mayoral Combined Authorities in England is enabling places like Greater Manchester to begin to chart our own destiny. But whilst devolution needs to spread throughout England, it’s also important that powers are devolved out of Holyrood and into local areas.
“Gordon has set out a route map for the empowerment of communities and the strengthening of the bonds between all the regions and nations of the United Kingdom.”
The event will take place at Central Hall in Edinburgh, at 730pm on June 1st.
Attendees must register their intention to come and can do so here:
UK Government will provide a record £41 billion per year to the Scottish Government.
Scotland will also benefit from UK-wide support for people and businesses, green jobs and investment to level up opportunities.
Targeted funding will support local projects across Scotland, including road and infrastructure improvements, investment in local communities and funding for businesses.
The Chancellor today announced Barnett-based funding for the Scottish Government of £41 billion per year – delivering the largest annual funding settlement, in real terms, since devolution over 20 years ago. This includes a £4.6 billion per year spending boost – as part of a Budget and Spending Review that delivers a stronger economy for the whole of the UK.
Rishi Sunak set out a plan to deliver the priorities of the British people by investing in stronger public services, levelling up opportunity, driving business growth and helping working families with the cost of living.
As part of the significant spending plans, Scotland will receive an average of £41 billion per year in Barnett-based funding representing a 2.4% rise in the Scottish Government’s budget each year. The Scottish Government will now receive around £126 per person for every £100 per person of equivalent UK Government spending in England.
Chancellor of the Exchequer, Rishi Sunak said: “This is a budget for the whole of the UK. We’re focused on what matters most to the British people – the health of their loved ones, access to world-class public services, jobs for the future and tackling climate change.
“By providing record funding, the Scottish Government can tackle backlogs in the NHS and ensure people in Scotland get the support they need as we recover from the pandemic.
“The UK Government continues to level up opportunities across all parts of the UK, with investments in green jobs and high-speed internet access for thousands more homes in Scotland through Project Gigabit.
Scottish Secretary, Alister Jack said: “The Budget delivers for people in Scotland, and right across the UK.
“The Scottish Government’s block grant, boosted by an additional £4.6 billion a year due to spending in England, means that the funding for the Scottish Government is the highest it has ever been.
“It demonstrates our commitment to level up right across the UK. The Budget ushers in an era of real devolution, ensuring money is spent on projects that matter most to people in Scotland.
“The UK Government made a clear commitment to maintain Scotland’s level of funding following the vote to leave the EU, and we have delivered on that promise. We are taking decisions in the UK rather than in Brussels and dealing directly with local authorities who know their communities best.
“From the Knoydart community pub, to Dumbarton town centre and the Granton Gasworks – all these projects will bring real, visible improvements for local communities. Special funding for Glasgow’s iconic Burrell Collection and Extreme E will help drive economic growth and jobs on the back of culture and tourism.
“The continuation of the freeze on spirit duty will be a boost to Scotland’s thriving whisky industry.
“Over the past 18 months the UK Government has been focused on protecting people’s livelihoods, their incomes, and their jobs. We now need to look to the future, to build a stronger economy for people in all parts of the UK.”
Targeted funding in Scotland
On top of the record funding for the Scottish Government, Scotland will benefit from the UK Government’s commitment to invest in people, jobs, communities and businesses. Targeted projects in Scotland include:
Over £200 million to be invested in Scotland to boost the post-pandemic recovery and enhance the Scottish economy, including:
£172 million of the Levelling Up Fund for 8 important projects including the redevelopment of Inverness Castle, the much-needed renovation of the Westfield Roundabout in Falkirk, and a new marketplace in Aberdeen City Centre.
Over £1.07 million of the Community Ownership Fund for five projects in Whithorn, Inverie, New Galloway, Kinloch Rannoch and Callander that are protecting valued community assets.
Providing £1.9 billion for farmers and land managers and £42.2 million to support fisheries.
Up to £1 million, to support the delivery of a ‘green’ formula E race showcasing Hebridean Green Hydrogen to a global audience.
Expanding the existing trade and investment hub in Edinburgh to grow trade for Scotland.
Up to £3 million to bring world-class art exhibitions to the Burrell Collection in the heart of Glasgow.
UK-Wide Support
As a result of our strong United Kingdom, Scotland will benefit from:
A 50% cut in domestic Air Passenger Duty for flights between England, Scotland, Wales and Northern Ireland and an additional £22.5 million of new funding in anticipation of the Union Connectivity
Review recommendations where we will work with the devolved administrations on improving UK-wide connectivity.
New funding for the British Business Bank to establish a £150 million fund in Scotland, helping Scottish businesses to get the financing they need.
The new £1.4 billion Global Britain Investment Fund which will support investment directly into Scotland.
A record £20 billion by 2024-25 in Research and Development supporting innovation in Scotland.
Confirmation that total funding will at a minimum match the size of EU Funds in Scotland, each year through the over £2.6bn UK Shared Prosperity Fund, which will invest in skills, people, businesses, and communities, including through ‘Multiply’, a new adult numeracy programme that will provide people across Scotland with essential numeracy skills.
An increase to the National Minimum Wage of £9.50 an hour, with young people and apprentices also seeing increases.
Freezes to fuel duty for the twelfth consecutive year and a freeze on Vehicle Excise Duty for heavy goods vehicles.
A freeze on alcohol duty, which will mean that whisky benefits from the lowest real terms tax rate since 1918.
BUDGET REACTION
Rachel Reeves MP, Labour’s Shadow Chancellor, responding to the Budget, said:Families struggling with the cost of living crisis, businesses hit by a supply chain crisis, those who rely on our schools and our hospitals and our police – they won’t recognise the world that the Chancellor is describing. They will think that he is living in a parallel universe.
The Chancellor in this budget, has decided to cut taxes for banks. So, Madame Deputy Speaker, at least the bankers on short haul flights sipping champagne will be cheering this budget today.
And the arrogance, after taking £6 billion out of the pockets of some of the poorest people in this country, expecting them to cheer today for £2 billion given to compensate.
In the long story of this Parliament, never has a Chancellor asked the British people to pay so much for so little.
Time and again today, the Chancellor compared the investments that he is making to the last decade. But who was in charge in this lost decade? They were.
So, let’s just reflect on the choices the Chancellor has made today – the highest sustained tax burden in peacetime.
And who is going to pay for it?
It’s not international giants like Amazon – the Chancellor has found a tax deduction for them. It’s not property speculators – they’ve already pocketed a stamp duty cut. And it’s clearly not the banks – even though bankers’ bonuses are set to hit a record high this year.
Instead, the Chancellor is loading the burden on working people. A National Insurance Tax rise – on working people. A Council Tax hike – on working people. And no support today for working people with VAT on their gas and electricity bills.
And what are working people getting in return? A record NHS waiting list, with no plan to clear it, no way to see a GP and still having to sell their home to pay for social care.
Community policing nowhere to be seen, a court backlog leaving victims without justice and almost every rape going unprosecuted.
A growing gap in results and opportunities between children at private and state schools. Soaring number of pupils in supersize classes and no serious plan to catch up on learning stolen by the virus. £2 million announced today – a pale imitation of the £15 billion catch up fund that the Prime Minister’s own education tsar said was needed. No wonder, Madame Deputy Speaker, that he resigned.
Now the Chancellor talks about world class public services. Tell that to a pensioner waiting for a hip operation. Tell that to a young woman waiting to go to court to get justice. Tell that to a mum and dad, waiting for their child the mental health support they need.
And the Chancellor says today that he has realised what a difference early years spending makes. I would just say to the Chancellor, has he ever heard of the Sure Start programme that this Tory government has cut?
And why are we in this position? Why are British businesses being stifled by debt while Amazon gets tax deductions?
Why are working people being asked to pay more tax and put up with worse services?
Why are billions of pounds in taxpayer money being funnelled to friends and donors of the Conservative party while millions of families are having £20 a week taken off them?
Madame Deputy Speaker, why can’t Britain do better than this?
The Government will always blame others. It’s business’ fault, it’s the EU’s fault, it’s the public’s fault.
The global problems, the same old excuses. But the blunt reality is this – working people are being asked to pay more for less for three simple reasons:
Economic mismanagement,
An unfair tax system,
And wasteful spending.
Each of these problems is down to 11 years of Conservative failure and they shake their heads but the cuts to our public services have cut them to the bone. And while the Chancellor and the Prime Minister like to pretend they are different, the Budget they’ve delivered today will only make things worse.
The solution starts with growth. The Government is caught in a bind of its own making. Low growth inexorably leads to less money for public services, unless taxes rise.
Under the Conservatives, Britain has become a low growth economy. Let’s look at the last decade – the Tories have grown the economy at just 1.8 percent a year.
If we had grown at the same rate as other advanced economies, we could have spent over £30bn to invest in public services without needing to raise taxes.
Let’s compare this to the last Labour Government. Even taking into account the global financial crisis, Labour grew the economy much faster – 2.3 percent a year.
If the Tories matched our record, we would have spent £30bn more on public services without needing to raise taxes.
It could not be clearer. The Conservatives are now the party of high taxation, because the Conservatives are the party of low growth.
The Office for Budget Responsibility confirmed this today – that we will be back to anaemic growth. The OBR said that by the end of this Parliament, the UK economy will be growing by just 1.3%. Which is hardly the plan for growth that the Chancellor boasted about today, hardly a ringing endorsement of his announcements.
Under the Tory decade we have had ow growth and there’s not much growth to look forward to.
The economy has been weakened by the pandemic but also by the Government’s mishandling of it.
Responding to the virus has been a huge challenge. Governments around the world have taken on debt, but our situation is worse than other countries.
Worse, because our economy was already fragile going into the crisis. Too much inequality, too much insecure work, too little resilience in our public services.
And worse, because the Prime Minister dithered and delayed, against scientific advice – egged on by the Chancellor – we ended up facing harsher and longer restrictions than other countries.
So, as well as having the highest death toll in Europe, Britain suffered the worst economic hit of any major economy.
The Chancellor now boasts that we are growing faster than others, but that’s because we fell the furthest.
And whilst the US and others have already bounced back to pre-pandemic levels, the UK hasn’t. Our economy is set to be permanently weaker.
On top of all of that, the Government is now lurching from crisis to crisis. People avoiding journeys because they can’t fill up their petrol tank is not good for the economy. People spending less because the cost of the weekly shop has exploded is not good for the economy. And British exporters facing more barriers than their European competitors because of the deal that this government did is not good for the economy.
If this were a plan, it would be economic sabotage. When the Prime Minister isn’t blagging that this chaos is part of his cunning plan, he says he’s “not worried about inflation.”
Tell that to families struggling with rising gas and electricity bills, with rising prices of petrol at the pump and with rising food prices. He’s out of touch, he’s out of ideas and he’s left working people out of pocket.
Madame Deputy Speaker, Conservative mismanagement has made the fiscal situation tight. And when times are tight it’s even more important to ensure that taxes are fair, that taxpayers get value for money. But the Government fails on both fronts.
We have a grossly unfair tax system with the burden heaped on working people.
Successive budgets have raised council tax, income tax and now National Insurance. But taxes on those with the broadest shoulders, those who earn their income from stocks, shares, and property portfolios have been left largely untouched.
Businesses based on the high street are the lifeblood of our communities and often the first venture for entrepreneurs.
But despite what the Chancellor has said today, businesses will still be held back by punitive and unfair business rates. The Government has failed to tax online giants and watered-down global efforts to create a level playing field.
And just when we need every penny of public money to make a difference, we have a government that is the by-word for waste, cronyism and vanity projects.
We’ve had £37 billion for a test and trace system that the spending watchdog says, ‘treats taxpayers like an ATM cash machine’. A yacht for ministers, a fancy paint job for the Prime Minister’s plane and a TV studio for Conservative Party broadcasts, which seems to have morphed into the world’s most expensive home cinema.
£3.5bn of Government contracts awarded to friends and donors of the Conservative Party, a £190 million loan to a company employing the PMs former Chief of Staff, £30 million to the former Health Secretary’s pub landlord. And every single one of those cheques signed by the Chancellor.
And now he comes to ordinary working people and asks them to pay more. More than they have ever been asked to pay before and at the same time, to put up with worse public services. All because of his economic mismanagement, his unfair tax system and his wasteful spending.
There are of course some welcome measures in this budget today, as there are in any budget.
Labour welcomes the increase in the National Minimum Wage, though the Government needs to go further and faster. If they had backed Labour’s position of an immediate rise to at least £10 an hour then a full-time worker on the minimum wage would be in line for an extra £1,000 a year.
Ending the punitive public sector pay freeze is welcome, but we know how much this Chancellor likes his smoke and mirrors. So, we’ll be checking the books to make sure the money is there for a real terms pay rise.
Labour also welcomes the Government’s decision to reduce the Universal Credit taper rate, as we have consistently called for. But the system has got so far out of whack that even after this reduction, working people on universal credit still face a higher marginal tax rate than the Prime Minister. And those unable to work – through no fault of their own – still face losing over £1000 a year. And for families who go out to work everyday but don’t get government benefits, on an average wage, who have to fill up their car with petrol to get to work, who do that weekly shop and who see their gas and electricity prices go up – this budget today does absolutely nothing for them.
We have a cost-of-living crisis.
The Government has no coherent plan to help families to cope with rising energy prices. Whilst we welcome the action taken today on Universal Credit, millions will struggle to pay the bills this winter.
The Government has done nothing to help people with their gas and electricity bills with that cut in VAT receipts as Labour has called for. A cut that is possible because we are outside the European Union and can be funded by the extra VAT receipts that have been experienced in the last few months.
Working people are left out in the cold while the Government hammers them with tax rises.
National Insurance is a regressive tax on working people, it is a tax on jobs.
Under the Chancellor’s plans, a landlord renting out dozens of properties won’t pay a penny more. But their tenants, in work, will face tax rises of hundreds of pounds a year. And he is failing to tackle another huge issue of the day. Adapting to climate change.
Adapting to climate change presents opportunities – more Jobs, lower bills and cleaner air. But only if we act now and at scale. According to the OBR, failure to act will mean public sector debt explodes later, to nearly 300% of GDP.
The only way to be a prudent and responsible Chancellor is to be a Green Chancellor. To invest in the transition to a zero-carbon economy and give British businesses a head-start in the industries of the future.
But with no mention of climate in his conference speech and the most passing of references today, we are burdened with a Chancellor unwilling to meet the challenges we face.
Homeowners are left to face the costs of insulation on their own, industries like steel and hydrogen are in a global race without the support they need and the Chancellor is promoting domestic flights over high speed rail int he week before COP26.
It is because of this Chancellor that in the very week we try and persuade other countries to reduce emissions, this Government can’t even confirm it will meet its 2035 climate reduction target.
Madame Deputy Speaker, everywhere working people look at the moment they see prices going up and shortages on the shelves. But this Budget did nothing to address their fears.
Household budgets are being stretched thinner than ever but this Budget did nothing to deal with the spiralling cost of living. It is a shocking missed opportunity by a government that is completely out of touch.
There is an alternative. Labour would scrap the business rates and replace it with something much better by ensuring online giants pay their fair share. That’s what being pro-business looks like.
We wouldn’t put up National Insurance for working people, we would ensure those with the broadest shoulders pay their share. That’s what being on the side of working people looks like.
We’d end the £1.7 billion subsidy the Government gives private schools and put it straight into local state schools. That’s what being on the side of working families looks like.
We’d deliver a climate investment pledge – £28bn every year for the rest of the decade. That’s Giga-factories to build batteries for electric vehicles, a thriving hydrogen industry and retrofitting, so we keep homes warm and get energy bills down. That’s what real action on climate change looks like.
This country deserves better but they’ll never get it under this Chancellor who gives with one hand but takes so much more with the other.
The truth is this – what you get with these two is a classic con game. It’s like one of those pickpocketing operations you see in crowded places. The Prime Minister is the front man – distracting people with his wild promises. All the while, his Chancellor dips his hand in their pocket. It all seems like fun and games until you walk away and realise your purse has been lifted.
But people are getting wise to them. Every month they feel the pinch. They are tired of the smoke and mirrors, of the bluster, of the false dawns, of the promises of jam tomorrow.
Labour would put working people first. We’d use the power of government and the skill of business to ensure that the next generation of quality jobs are created right here, in Britain.
We’d tax fairly, spend wisely and after a decade of faltering growth, we’d get Britain’s economy firing on all cylinders.
That is what a Labour budget would have done today.
Edinburgh Pentlands SNP MSP Gordon MacDonald said that the Tory UK Government’s budget makes it clear that “independence is the only way to give Edinburgh a fair recovery from the pandemic.”
Gordon MacDonald said that the budget, described by the head of the Institute for Fiscal Studies as “actually awful” for living standards, is failing the people of Scotland by failing to tackle the cost of living crisis, the Brexit crisis and the climate crisis whilst the Tory Government prioritise cuts to the cost of champagne and giving tax breaks to bankers.
The Edinburgh Pentlands MSP said: “What the Tory UK Government has outlined today does not meet the ambition needed to build a fair and sustainable recovery and to tackle the cost of living crisis.
“It’s painfully clear that there will be no fair recovery from the pandemic under Westminster control.
“This Tory budget fails Scotland as a whole and doesn’t go anywhere near supporting people in Edinburgh, who are being hit by an energy crisis, a Brexit crisis, labour shortages and an inflation crisis under Westminster control.
“The UK Government budget is leaving families in Edinburgh hundreds of pounds worse off next year due to Tory cuts, tax hikes and the soaring cost of Brexit.
“It’s little wonder that, in May’s election, the people of Scotland voted overwhelmingly for a different future when they gave the SNP the highest share of the vote since the dawn of devolution and a clear mandate for an independence referendum – Independence is the only way to keep Scotland safe from Tory cuts.”
“The chancellor admitted that we will have zero pay growth across the economy next year. And he has no plan to get real wages rising for everyone after an eleven year pay squeeze, with average real pay growth over the next four years predicted to be just 0.3 per cent.
“He should have announced fair pay deals for whole industries, negotiated with unions, designed to get pay and productivity rising in every sector.
“Families face a triple whammy of a £1,000 universal credit cut, tax hikes and fast-rising energy and food bills. All the while wages across the economy stand still.”
On the universal credit taper cut, she added:
“Workers on universal credit should always have been able to keep more of their wages. This change does not make up for the £1,000 per year cut to universal credit, and does not help those on universal credit who cannot work.”
Centre for Cities’ Chief Executive Andrew Carter said:“Raising the National Living Wage is a quick win for the levelling up agenda and will have the biggest impact in the places that are crucial to the Prime Minister winning the next election. Four of the five places where the most people will benefit are in the North.
“While a pay increase is good news for people struggling with the cost of living crisis, it does not address the reasons why they live on low pay in the first place: a lack of well-paid jobs in their local area.
“We’ve seen today the beginnings of a plan focused on skills, innovation and infrastructure to address this, but turning it from rhetoric to reality will depend on ministers’ willingness to work with metro mayors and councils on delivering it.
“I am now looking to the delayed Levelling Up White Paper to set out how this will happen.”
Katie Schmuecker, Deputy Director of Policy & Partnerships at JRF said:“This is a tale of two Budgets for families on low incomes.
“For those in work, the change to the taper rate and work allowance, alongside the National Living Wage increase, are very positive steps, allowing low-paid workers to keep more of what they earn. Together these measures improve our social security system for working families and demonstrate a serious intent to turn the tide on the pre-pandemic trend of rising in-work poverty.
“But the reality is that millions of people who are unable to work or looking for work will not benefit from these changes. The Chancellor’s decision to ignore them today as the cost of living rises risks deepening poverty among this group, who now have the lowest main rate of out-of-work support in real terms since around 1990.
“Among the people in our society who cannot work are cancer patients, people with disabilities and those caring for young children or elderly parents.
“Their energy bills and weekly shop are going up like everyone else’s and they face immediate hardship, hunger and debt in the months ahead. The Chancellor had an opportunity to support families on the lowest incomes to weather the storm ahead, and he did not take it.”
New analysis by the independent Joseph Rowntree Foundation reveals that the rising cost of living wipes out much of the financial gain some families will receive from the Universal Credit changes announced today.
Weekly incomes and Costs for 2022/23
Family 1: single adult, no children, not working
Family 2: single parent, with one young child (assume age 5), part-time 16 hours per week
Family 3: couple with two young children (assume 7 and 5). One FT worker
Family 4: single parent, with one young child (assume age 5), full-time 35 hours per week
Family 5: Couple with two young children (assume 7 and 5). 1 FT worker (35 hours), 1 PT worker (16 hours)
Weekly income before new announcements
£77
£278
£433
£333
£489
Weekly gain from taper rate and work allowance
£0
£8
£19
£19
£31
Total loss from higher cost of living due to…
-£13
-£16
-£23
-£18
-£24
1) increase in energy prices
-£7
-£7
-£7
-£7
-£7
2) overall cost of living increase
-£6
-£8
-£13
-£8
-£13
3) increase in National Insurance and impact of inflation on earnings
£0
-£1
-£3
-£3
-£4
Overall weekly gain or loss after measures and cost of living
-£13
-£8
-£4
£1
£7
Note all five families lost £20-a-week in October 2021, due to the cut in the Universal Credit Standard Allowance, so all are worse-off than they would have been in September 2021. All workers are assumed to be paid at the National Living Wage rate, so benefit from its increase.
Peter Kelly,Director of the Poverty Alliance, said: “It is a shameful, unjust decision that makes the Chancellor’s rhetoric about ‘levelling up’ seem as empty as the pockets of the hundreds of thousands of people swept into poverty as a result.”
