Starmer: Fixing the Foundations? Or AUSTERITY 2 – the sequel?

Prime Minister Keir Starmer delivered a speech in the Downing Street garden today on fixing the foundations of our country

When I stood on the steps of Downing Street – just over there – two months ago. I promised this government would serve people like you. 

Apprentices. Teachers. Nurses. Small business owners. Firefighters. Those serving our community and our country every day. 

I promised that we would get a grip on the problems we face. And that we would be judged by our actions, not by our words. 

I said before the election – and I say it again really clearly today: Growth.

And, frankly, by that I do mean wealth creation…

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is the number one priority of this government.

That’s why, in our first few weeks, we set up the National Wealth Fund –

because we want every person and every community to benefit. 

It’s why we’ve unlocked planning decisions –

Because we are going to build 1.5 million new homes. 

It’s why we’ve set up Great British Energy – 

To create good jobs and cut people’s bills. 

And it’s why we ended the national strikes that have crippled our country for years. 

Because I defy anyone to tell me that you can grow the economy…

when people can’t get to work – because the transport system is broken.

Or can’t return to work – because they’re stuck on an NHS waiting list.

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And these are just the first steps towards the change that people voted for. 

The change I’m determined to deliver. 

But before the election I also gave a warning.

I said change would not happen overnight. 

When there is deep rot in the heart of a structure, you can’t just cover it up.

You can’t tinker with it or rely on quick fixes. 

You have to overhaul the entire thing. 

Tackle it at root. 

Even if it’s harder work and takes more time. 

Because otherwise what happens?

The rot returns.

In all the same places.

And it spreads. 

Worse than before. 

You know that – I know that. 

That’s why this project has always been about fixing the foundations of this country. 

But I have to be honest with you. Things are worse than we ever imagined. 

In the first few weeks, we discovered a £22 billion black hole in the public finances. 

And before anyone says ‘oh this is just performative’.

Or ‘playing politics’.

Let’s remember.

The OBR did not know about this.

They didn’t know.

They wrote a letter saying they didn’t know.

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Even just last Wednesday, we found out that

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We borrowed almost £5 billion more than the OBR expected in the last three months alone.

That’s not performative – that’s fact. 

But as well as the things we’ve discovered, we’ve also seen shocking scenes across the nation. 

A mindless minority of thugs – who thought they could get away with causing chaos. 

Smashing up communities and terrifying minorities. 

Vandalising and destroying people’s property. 

Even trying to set fire to a building – with human beings inside it. 

And as if that wasn’t despicable enough. 

People displaying swastika tattoos.

Shouting racist slurs on our streets. 

Nazi salutes at the cenotaph –

The cenotaph – the very place we honour those who gave their lives for this country. 

Desecrating their memory….

Under the pretence – and it is a pretence – of ‘legitimate protest’.

Now they’re learning that crime has consequences. 

That I won’t tolerate a break down in law and order under any circumstances. 

And I will not listen to those who exploit grieving families, and disrespect local communities.

But these riots didn’t happen in a vacuum. They exposed the state of our country. Revealed a deeply unhealthy society. The cracks in our foundation laid bare – 

Weakened by a decade of division and decline.

Infected by a spiral of populism…

Which fed off cycles of failures

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Stuck in the rut of the politics of performance. 

And I saw the beginning of that downward spiral firsthand.

Back in 2011.

When riots ripped through London and across the country. 

I was then Director of Public Prosecutions. 

And when I think back to that time.

I see just how far we have fallen. 

Because responding to those riots was hard – of course it was.

But dealing with the riots this summer was much harder. 

In 2011, I didn’t doubt the courts could do what they needed to do.

This time – to be honest with you – I genuinely didn’t know.

Let me tell you this. Every day of that disorder – literally every day – we had to check the precise number of prison places we had and where those places were.

To make sure we could arrest, charge and prosecute people quickly. 

Not having enough prison places is about as fundamental a failure as you can get. 

And those people throwing rocks, torching cars, making threats.

They didn’t just know the system was broken.

They were betting on it.

Gaming it.

They thought – ‘ah, they’ll never arrest me.

And if they do, I won’t be prosecuted.

And if I am, I won’t get much of a sentence.’

They saw the cracks in our society after 14 years of populism and failure – and they exploited them. 

That’s what we have inherited.

Not just an economic black hole.

A societal black hole. 

And that’s we have to take action and do things differently.

And part of that is being honest with people – about the choices we face. And How tough this will be. And frankly – things will get worse before they get better.

I didn’t want to release prisoners early. 

I was Chief Prosecutor for five years. 

It goes against the grain of everything I’ve ever done. 

But to be blunt – if we hadn’t taken that difficult decision immediately.

We wouldn’t have been able to respond to the riots as we did. 

And if we don’t take tough action across the board. We won’t be able to fix the foundations of the country as we need. 

I didn’t want to means test the Winter Fuel Payment. But it was a choice we had to make. 

A choice to protect the most vulnerable pensioners. while doing what is necessary to repair the public finances. 

Because pensioners also rely on a functioning NHS.

Good public transport.

Strong national infrastructure. 

They want their children to be able to buy homes.

They want their grandchildren to get a good education.

So we have made that difficult decision –

To mend the public finances.

So everyone benefits in the long term –

Including pensioners. 

Now that is a difficult trade off. 

And there will be more to come. 

I won’t shy away from making unpopular decisions now…

If it’s the right thing for the country in the long term. 

That’s what a government of service means. 

This shouldn’t be a country where people fear walking down their street.

Their TVs showing cars and buildings being set on fire.

This shouldn’t be a country where the Prime Minister can’t guarantee prison places.

This shouldn’t be a country where people are paying thousands more on their mortgage. 

Or waiting months for hospital appointments they desperately need. 

Where our waters are filled with sewage.

Where parents worry that their kids won’t get the opportunities they did. 

Where nothing seems to work anymore. 

So, when I talk about the inheritance the last government left us…

The £22 billion black hole in our finances…

This isn’t about a line on a graph.

That’s about people’s lives. 

Your lives.

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This government won’t always be perfect, but I promise you this:

You will be at the heart of it…

In the forefront of our minds…

At the centre of everything we do.  

That’s why I wanted to invite you here today.

To show that decent, hard-working people who make up the backbone of this country belong here. 

This government is for you.

A garden and a building that were once used for lockdown parties…

Remember the pictures just over there? With the wine and the food.

Well this garden…

And this building…

are now back in your service.

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Those things happened precisely because the government itself lost its focus.

on the hopes and ambitions of working people. 

During those recent riots, I made huge asks…

of the police and of the criminal justice system –

People already stretched to the limit.

They knew I was making big asks of them.

And I’m not going to apologise for it.

But let me tell you this – they delivered.

They deserve our gratitude.

And that’s why I went to Southport…

To Lambeth…

To Belfast…

To thank them personally. To shake the hands of the first responders who rose up to the ask I made of them.

They deserve a government that trusts them.

Supports them.

And works with them. 

That is the sort of government we will be.

One that works with people, not does things to them. 

One that believes in hard graft, not gimmicks.

Honest about the challenges we face…

And working tirelessly to fix them. 

That is how we will always work. 

Now, next week, parliament returns. The business of politics will resume. But it won’t be business as usual.

Because we can’t go on like this anymore. Things will have to be done differently. 

We will do the hard work to root out 14 years of rot. Reverse a decade of decline. And fix the foundations. 

Between now and Christmas, we will carry on as we have started. Action not words.

We will introduce legislation and take decisions to protect taxpayers’ money.

To take on the blockers by accelerating planning. to build homes and boost growth.

We’ll move forward this autumn with harnessing the full potential of AI for growth and the public good.  

We’ll bring rail service into public ownership, putting passengers first. 

The biggest levelling up of workers’ rights in a generation to give people security, dignity and respect at work.

And Great British Energy will be owned by the taxpayer, making money for the taxpayer. Producing clean energy and creating good jobs. 

That is our focus for the rest of the year. 

But I will be honest with you. There’s a budget coming in October. and it’s going to be painful.

We have no other choice given the situation that we’re in. So those with the broadest shoulders should bear the heavier burden. And that’s why we’re cracking down on non-doms.

Those who made the mess should have to do their bit to clean it up. That’s why we’re strengthening the powers of the water regulator and backing tough fines on water companies that have let sewage flood our rivers, lakes and seas. 

But just as when I responded to the riots – I’ll have to turn to the country and make big asks of you as well.

To accept short term pain for long term good.

The difficult trade-off for the genuine solution.

And I know that after all that you’ve been through – that is a really big ask and really difficult to hear. 

That is not the position we should be in. It’s not the position I want to be in. But we have to end the politics of the easy answer that solves nothing. 

But I also know that we can get through this together. 

Because the riots didn’t just betray the sickness. They also revealed the cure.

Found not in the cynical conflict of populism. But in the coming together of a country.

The people who got together the morning after. All around the country. With their brooms, their shovels, their trowels. And cleared up their community.

They reminded us who we really are. 

I felt real pride in those people who cleaned up the streets.

Rebuilt the walls. Repaired the damage.

And I couldn’t help thinking about the obvious parallels. 

Because imagine the pride we will feel as a nation.

When, after the hard work of clearing up the mess is done.

We have a country that we have built together. 

Built to last.

That belongs to every single one of us. 

And all of us have a stake in it.

Our hard work rewarded – a dozen times over. 

Because we’ll have an economy that works for everyone. 

An NHS not just back on its feet, but fit for the future. 

Streets that everyone feels safe in. 

No longer dependent on foreign dictators…because we’re producing our own clean energy right here.

And giving every child – wherever they come from. Whatever their background.The chance – to go as far as their talent will take them. 

I won’t lose sight of that prize. I won’t lose sight of what we were elected to do. 

And most importantly – I won’t lose sight of the people that we were elected to do it for. 

You.

This is our country. Let’s fix it – together.

Two more Tory MSPs endorse Tom Tugendhat to be Conservative Leader

  • Two more Scottish MSPs announce they are endorsing Tom Tugendhat’s bid to become the next Leader of the Conservative Party
  • They argue that they’re supporting Tom because he understands the challenges facing Scotland including those around food and energy security, rural communities, and Scotland’s farmers and fishing industries
  • Joining the eight Conservative MSPs who endorsed Tugendhat earlier this week, demonstrating the strength of support he’s building across Scotland

Two more Members of the Scottish Parliament – Brian Whittle MSP and Alexander Stewart MSP – have announced that they are backing Shadow Security Minister, Tom Tugendhat MP to be the next Leader of the Conservative Party, bringing his total MSP support to 10.

Reiterating their colleagues’ comments, the two MSPs said they want to see an end to 17 years of nationalist SNP rule that has led to failing public services and a government distracted by unnecessary constitutional debates. Scotland needs a government that serves the Scottish people and delivers on their priorities. They believe Tom is the only candidate who will help deliver this. 

Celebrating Tom’s passion for Scotland and the wider Union, they said that he is the only candidate who has spent the time needed to understand the challenges facing Scotland, including those surrounding energy security, fisheries, farming and rural communities. Likewise, he is the only candidate who has taken the time to meet with Scottish Conservative Party members, regularly campaign in the country and attend Scottish Conservative Party Conference multiple times. 

The MSPs explained they wanted someone who would not only protect and fight for the Union, but understood that if Scotland fails, everyone across the United Kingdom would feel the consequences. With Tugendhat as Leader, they argue they would always have a champion for the Union – and the priorities of Scotland – at the helm in Westminster.

As a soldier, Tugendhat spent over 10 years keeping the entire United Kingdom safe before entering Parliament. He was one of the first MPs to warn about the threat of Russia and China. As Security Minister, he was responsible for the National Security Act, which resulted in Britain arresting and charging more Russian and Chinese spies in his time as Minister than in the previous decade.

The MSPs said they were supporting Tom as they know he will deliver for the Scottish people, ensuring energy security and economic rejuvenation, and support rural communities, including Scotland’s cherished farming and fishing industries. 

Tom recognises that the Conservative Party has been undermined by infighting and factionalism in Westminster, which led to a failure to deliver and a breakdown in trust with the public. He has made it clear that this leadership election is about choice. A choice between drawing a line under the infighting and a future focused on uniting the Party and rebuilding it around core Conservative values. He argues that people across the United Kingdom deserve better and as Leader of the Conservative Party, he promised to rebuild our party, regain trust and beat Labour at the next election.

The MSPs outlined that they want a leader who will end the infighting in Westminster and return the Party to traditional conservative values, something Tugendhat has always fought for, including when he voted against Covid vaccine passports and did not support the National Insurance rise.

 They also believe the Scottish people rejected the SNP in a sign they want to move on from the independence debate and want their government to focus on delivery. As a man who delivers on his promises and can unite the party, the MSPs argue thatTom will be an electoral asset for the Scottish Conservatives at the next 2026 Holyrood elections. They believe Scotland deserves better and that Tugendhat will take the Scottish Conservatives and Scotland into a new era. 

In a joint statement, Brian Whittle MSP and Alexander Stewart MSP said: “We are proud to join eight of our Conservative MSP colleagues who are endorsing Tom Tugendhat to be the next Leader of the UK Conservative Party. 

“Together with our colleagues, we represent all parts of the Scottish Party and recognise the need to have a Conservative Leader at the helm in Westminster who not only champions our successes, but also recognises that if any part of the Union fails, we all fail. 

“Tom is that Leader. He is a man of principle, service and duty. Someone who says what he will do, then gets it done. Someone who knows that Scottish people deserve more, who will champion our nation and is an asset to the Party in Scotland. He understands the challenges our nation faces and will offer real solutions. 

“The journey ahead of us is immense. But, this is our opportunity to reset our Party under a new leader who can take the fight to the SNP. Under Tom’s leadership, we can win the hearts and minds of the Scottish people at the Holyrood elections in 2026 and local elections the following year.”

Welcoming the MSPs’ support, Tom Tugendhat said: “It is an absolute privilege to have Brian and Alexander backing me to be the next Leader of the Conservative and Unionist Party. 

“I am thrilled to have their support, along with  8 of their Conservative MSP colleagues, who announced their support for me earlier this week.  

“Unionism is indivisible from Conservatism and as the Conservative Leader, I promise to always fight for the Union and deliver on the priorities of the Scottish people.”

Edinburgh’s visitor levy scheme takes another step forward

PLANS for a Visitor Levy in Edinburgh took another significant step forward yesterday (22 August), as councillors agreed key details of the draft scheme.

It is anticipated that the levy will generate tens of millions of pounds a year to reinvest in the city’s infrastructure and sustainable tourism from summer 2026.

A formal 12-week public consultation seeking further input from residents, visitors and businesses, will commence in the coming weeks. This will inform the final scheme, which will be agreed in January 2025, allowing the 18-month implementation period to begin.

Edinburgh will become the first place in the UK to launch such a city-wide levy, which will drastically help the Council manage the demands of increased tourism while ensuring sustainable investment in the visitor economy, public services, city maintenance, affordable housing and preserving the Capital’s cultural heritage.

Edinburgh Council backed the Lib Dem proposal to split Transient Visitor Levy income, after a fixed Housing investment, between: 55% city operations 35% culture and 10% destination management.

Key highlights of the draft visitor levy scheme include:

  • Flat 5% charge per night: Visitors staying in accommodation will be required to pay a small, fixed fee per night of 5% of the accommodation cost, capped at seven consecutive nights.
  • Wide range of accommodation: The levy will apply to paid accommodation including hotels, short-term lets, hostels and bed and breakfasts, but will exclude stays in campsites.
  • Funding allocation: The levy is expected to raise £45-50 million a year by 2028/29.  Revenue generated will be reinvested directly into initiatives that benefit residents and enhance visitor experiences, such as a ‘Well Kept City Fund’, affordable housing, city infrastructure, destination marketing and support for major events and festivals.
  • Shaped with industry input: The draft scheme has been shaped by many years of engagement with local businesses, residents, and tourism stakeholders including hoteliers.
  • Expected to launch 2026: When the draft scheme is finalised, early in the new year, the Council will begin working with partners to implement the Visitor Levy and make it live by Summer 2026.

Read the full report considered by Councillors and more information on the visitor levy scheme.

The decision is a victory for Edinburgh housing campaigners and trade unionists:

Council Leader, Cammy Day, said:We can’t take Edinburgh’s incredible cultural offering and reputation as a fantastic place to visit for granted, and a visitor levy presents an innovative way of sustaining the sector and the city.

“It will significantly increase our ability to invest in the visitor experience and the tourism pressures we face, from keeping the city clean to responding to our housing emergency, so that everyone can continue to enjoy all that the city has to offer. By better supporting these services we can secure Edinburgh’s future as a top global destination.

“These proposals have been shaped by the views of residents, visitors and industry. We’re committed to making sure this is the best levy for Edinburgh and will begin our formal consultation as soon as the Scottish Government allow.

“This is a once in generation opportunity for Edinburgh and I look forward to the many benefits a visitor levy will bring, allowing us to reinvest tens of millions of pounds in sustaining and improving the things that make our city so special – for our visitors and residents who live here all year round.”

Neil Ellis, Chairman of the Edinburgh Hotels Association, said:Edinburgh Hotels Association welcomes the introduction of the visitor levy for its intended use of improving the experience of all visitors, local, national or international, through additional spending.

“This is a fantastic opportunity to further enhance Edinburgh’s reputation on the world stage as a must-visit destination.”

Christina Sinclair, Director of Edinburgh World Heritage, said: “The visitor levy brings an opportunity to generate crucial funds to invest in our historic city, ensuring its heritage remains authentic and that the UNESCO-designated Old and New Towns of Edinburgh World Heritage Site are protected, enhanced and promoted for future generations.

Charlie Cumming, Chief Executive of the Edinburgh & Lothians Greenspace Trust, said: “ELGT are in support of the funds raised from the proposed visitor levy to provide additional resource to make improvements to the city’s public spaces. It will be encouraging to see much needed funding for the upkeep of our much-valued greenspaces that provide many benefits to residents and visitors.

“The funding will also provide an opportunity to develop sustainable improvements to help mitigate against climate change and biodiversity loss.”

Roddy Smith, Chief Executive of Essential Edinburgh, said: “We welcome the next phase of the consultation by the City of Edinburgh Council.

“The key principle for the implementation of the visitor levy remains, that the money collected and then distributed should be additional to existing Council resources and not replacement funds and be used to finance projects that primarily support the tourism sector.

“We welcome the three potential funding pots which if used appropriately will have a significant impact on how our city looks, and how we can support our crucial heritage and arts/event sectors.

“Importantly, it will also invest in dedicated marketing and promotion, to ensure our successful tourism sector continues to grow sustainably. With an effective public and private partnership driving this work, we are excited that real progress can be made.

“Edinburgh must not take our tourism sector for granted, and if the finance generated through the levy goes towards supporting our tourism sector, then the city will see economic benefits for our business both directly and in the supply chain, employment growth and much needed large infrastructure projects being delivered. This will materially benefit all the residents in the city.

“Essential Edinburgh will continue our engagement with our members, the industry and Council to move forward towards the finalisation of the scheme.’

Third of Scottish Tory MSPs endorse Tom Tugendhat to be party Leader

NEW SCOTS TORY MP ALSO BACKS THE FORMER-SOLDIER

Eight Members of the Scottish Parliament, a third of all eligible Conservative MSPs, have announced that they are backing Shadow Security Minister, Tom Tugendhat MP to be the next Leader of the Conservative Party.

The MSPs include Douglas Lumsden, Tim Eagle, Roz McCall, Stephen Kerr, Tess White, Maurice Golden, Finlay Carson and Sandesh Gulhane. 

Endorsing Tom for Leader, they said that he is the only candidate who has spent the time needed to understand the challenges facing Scotland, including those surrounding energy security, fisheries, farming and rural communities.

Likewise, he is the only candidate who has taken the time to meet with Scottish Conservative Party members, regularly campaign in the country and attend Scottish Conservative Party Conference multiple times. 

Proud champions of the union, the MSPs explained they wanted someone who would not only protect and fight for the union, but understood that if Scotland failed, everyone across the United Kingdom would feel the consequences. With Tugendhat as Leader, they argue they would always  have a champion for the Union – and the priorities of Scotland – at the helm in Westminster.

As a soldier, Tugendhat spent over 10 years keeping the entire United Kingdom safe before entering Parliament. He was one of the first MPs to warn about the threat of Russia and China.

As Security Minister, he was responsible for the National Security Act, which resulted in Britain arresting and charging more Russian and Chinese spies in his time as Minister than in the previous decade.

The MSPs said they were supporting Tom as they know he will deliver for the Scottish people, ensuring energy security and economic rejuvenation, and support rural communities, including Scotland’s cherished farming and fishing industries. 

Tom recognises that the Conservative Party has been undermined by infighting and factionalism in Westminster, which led to a failure to deliver and a breakdown in trust with the public.

He has made it clear that this leadership election is about choice. A choice between drawing a line under the infighting and a future focused on uniting the Party and rebuilding it around core Conservative values.

He argues that people across the United Kingdom deserve better and as Leader of the Conservative Party, he promised to rebuild our party, regain trust and beat Labour at the next election.

The MSPs outlined that they want a leader who will end the infighting in Westminster and return the Party to traditional conservative values, something Tugendhat has always fought for, including when he voted against Covid vaccine passports and did not support the National Insurance rise.

At the general election, the MSPs believe the Scottish people rejected the SNP in a sign they want to move on from the independence debate and want their government to focus on delivery.

As a man who delivers on his promises and can unite the party, the MSPs are backing Tom as they believe he will be an electoral asset for the Scottish Conservatives at the next 2026 Holyrood elections. They believe Scotland deserves better and that Tugendhat will take the Scottish Conservatives and Scotland into a new era. 

In a joint statement, the MSPs said:

“We are backing Tom Tugendhat to be our next UK Party Leader. We believe – indeed we know – that he is the best person for the job.

A Leader to create a united party for our United Kingdom. A man of principle, service and duty. 

Someone who says what he will do, then gets it done. Someone who gets Scotland, is a friend of Scotland, and is an asset to the Party in Scotland.

We need a UK Leader who will be a help, not a hindrance, to the Scottish Conservatives in the battles ahead – Holyrood 2026 and the local elections the year after.

We do not need a caretaker leader of the opposition, but someone capable and hungry to be the next Prime Minister for all of the UK.

That Leader is Tom Tugendhat.

ALSO supporting Mr Tugenhadt is new MP for Gordan and Buchan, Harriet Cross, who commented: “I am delighted to endorse Tom Tugendhat MP for Leader of our Great Party. As a newly elected MP for the Conservative and Unionist Party, it is my duty to support a Leader who will protect and fight for our Union. With Tom at the helm of the Conservative Party, the Union will always have a champion. 

“This is because Tom gets Scotland. He has taken the time to attend multiple Scottish Conservative Conferences, and meet local associations and members. He is someone who cherishes the union and wants all its nations to succeed.

“As part of the new generation of Conservatives, I want a Leader who will take forward traditional conservative values for the Party to unite around, and promise we deliver for all nations. I know that Tom Tugendhat is a man of his word. When he promises something, he delivers. And in ensuring our Party rebuilds trust with the voters of Scotland on a Conservative platform, Tom Tugendhat is the best hope for our Party.”

Welcoming the support, Tom Tugendhat said:It is an absolute privilege to have so many of my Scottish Conservative colleagues backing me to be the next Leader of the Conservative and Unionist Party today.

“I am thrilled to have their support. Unionism is indivisible from Conservatism and as leader, I promise to always fight for the Union and deliver on the priorities of the Scottish people.” 

Lammy: ‘It’s never too late for peace in the Middle East’

‘we must break the cycle of violence’

David Lammy and his French counterpart Stéphane Séjourné write for The Observer on how a ceasefire could enable progress towards a two-state solution – the only long-term route to safety and security:

This is a perilous moment in the Middle East. Israel’s actions in Gaza continue to lead to intolerable loss of civilian life. Hostages taken by Hamas terrorists remain in chains, 316 days since the 7 October attack. There are French and British citizens among them.

Fighting between Israel and Lebanese Hezbollah has intensified. Iranian threats of further escalation mean the risks of a full-scale regional war are rising.

What we are witnessing is a destructive cycle of violence. One miscalculation, and the situation risks spiralling into an even deeper and more intractable conflict. This cycle, with its tendency towards escalation, is making progress towards a political solution harder.

Our response is to reconnect – using the joint strengths of our diplomacy to press a common message. We, the foreign ministers of France and the United Kingdom, travelled together last week to Israel and the Occupied Palestinian Territories.

By making the first joint visit by a British and French foreign minister for well over a decade, we are showing our commitment to working ever more closely together in a new spirit of cooperation, in the interests of our national security, Europe’s security and the Middle East’s security.

Our countries have a strong record of working together to tackle today’s challenges and, 80 years on from the D-day landings and the liberation of France, we must continue to exercise global leadership in an era of renewed geopolitical instability.

The UK and France are united behind a common set of messages which we delivered to Israelis and Palestinians, including in meetings with Israel’s foreign minister, Israel Katz, and the Palestinian Authority’s prime minister, Mohammad Mustafa.

As UN security council permanent members, we share not only a common interest, but a common responsibility to play our part in the security of Israel, the Occupied Palestinian Territories and the stability of the region as a whole.

All sides should focus on the recently restarted negotiations on a ceasefire and hostage deal in Gaza. These talks offer a vital opportunity to secure an immediate ceasefire that ends the horrendous conflict in Gaza. A route to securing the release of all the hostages still cruelly held by Hamas. And a pathway to restoring stability to a region already under immense suffering and facing the prospect of far worse.

Our visit to a Palestine Red Crescent Society warehouse was a stark reminder of the toll of this conflict, which is unacceptable. Without progress towards a ceasefire, this will only worsen. Brave healthcare workers across humanitarian organisations are racing to prevent an all-out polio outbreak but they can only start vaccinating if it’s safe to do so.

It’s never too late for peace. An all-out conflict across the region is in nobody’s interests. All parties need to show restraint and invest in diplomacy. Any Iranian attack would have devastating consequences, not least in undermining current Gaza ceasefire negotiations.

The UK and France are not alone in highlighting the urgency of diplomacy to avoid further conflict. Both of us have talked to counterparts across the region and beyond, who share our desire to see a de-escalation in the current tensions. American, Egyptian and Qatari mediators are playing a particularly valuable role in coordinating the negotiations on a ceasefire and hostage deal.

And our engagement reinforces our conviction that urgently securing such a deal is in the interests of Israelis, Palestinians and the wider region. Only a deal can relieve civilian suffering. Only a deal can restore communities’ sense of security. Only a deal can open up the space for progress towards a two-state solution – the only long-term route to safety, security and dignity for Israelis and Palestinians alike.

There can be no delays or excuses. We must all come together. Reconnect in the interests of peace.

Only a political solution can deliver the peace we so desperately need. That’s why we want not just a ceasefire in Gaza but why we are urging Israel, Hezbollah and Lebanon to engage with the US-led discussions to resolve their tensions diplomatically, based on the principles set out by UN security council resolution 1701.

Lammy has been criticised for removing a yellow pin badge expressing solidarity with Israeli hostages when meeting the Palestinian prime minister.

The Foreign Secretary and Stephane Sejourne, his French counterpart, wore the symbols on their suits as they met with Israel Katz, the foreign minister of Israel, on Friday.

REFORM SCOTLAND: Time for action instead of ‘perpetual talk’ on local government powers

Think tank calls more financial controls to be devolved from Holyrood to local authorities

Reform Scotland, the independent, non-partisan think tank, has today released its response to the Local Government, Housing and Planning Committee’s call for views on the sustainability of local government finances.

The think tank suggests that successive Holyrood governments have failed to create the conditions for sustainable local government, and that political discourse has been dominated by “perpetual talk without action”.

For example, nearly 15 years ago the Christie report highlighted the necessity of early intervention and preventative spending programmes. The importance of that report is regularly highlighted by politicians and policymakers, yet it has not been delivered upon.

To make matters worse, prevention programmes are often delivered by the third sector in collaboration with local authorities, and with councils’ budgets under growing strain, all too often these programmes are first in the line for cuts.

In its response, Reform Scotland calls for:

  • Collaboration on new approaches for financing local government activity, such as social bridging finance
  • The end to central government interference in the setting of Council Tax rates, and an empowerment of local authorities to consider the adjustment of bands and exemptions
  • More fiscal powers to be devolved to local authorities to allow them to respond to local needs

Reform Scotland Director, Chris Deerin, said: “During the 25 years of devolution, we have focused on the transfer of powers between Westminster and Holyrood, but we have taken our eye off the ball when it comes to the power of local authorities.

“Unfortunately, in that time we have seen Scotland become further centralised. This approach must end. Scotland is too diverse to presume that the solutions which can work for Edinburgh can work for Elgin, or those that work for Glasgow can work for Gairloch.

“We need to shift away from a drip-drip approach of devolving small, occasional powers, which simply encourages councils to come cap in hand to the Scottish Government, and towards empowerment and recognising that local communities are best placed to meet local needs.

“We have seen years of broad agreement that a one-size-fits-all approach cannot work, yet this has amounted to little more than perpetual talk, without action. Now is the time for action.”

The full response can be read here.

Breakthrough in rail dispute could signal end of England’s strikes

New pay proposal could see an end to two years of industrial action, protect passengers from further national strikes and improve the reliability of services

Following a series of positive talks led by the new UK government, ASLEF yesterday (14 August 2024) agreed to recommend a new pay proposal to its members.

The offer made to ASLEF is a 5% pay rise for 2022/23, 4.75% for 23/24, and 4.5% for 24/25. The offer will now be put to ASLEF members in a referendum.

This marks a significant step towards resetting industrial relations and resolving the long-running rail dispute, which has seen services disrupted for over 2 years now. As the pay proposal includes an offer for the year ahead, it also means there is no national rail dispute on the horizon.

The Secretary of State for Transport, Louise Haigh, says the breakthrough shows how this government is “putting passengers first”.

If agreed by ASLEF members, the pay proposal could see an end to 2 years of industrial action, protect passengers from further national strikes and improve the reliability of services, which train passengers have been missing for far too long.

Poor industrial relations have caused disruption and delay for working people, prevented families from visiting loved ones and stopped the public from attending events, damaging the hospitality sector.

New industry estimates revealed today show that railway revenue foregone because of strikes since June 2022 has totalled around £850 million – a debilitating amount for the industry and a huge burden that falls directly on the taxpayer. Accounting for additional impacts of strikes, including those due to people being unable to work, or due to potential reductions in spending on hospitality and retail, the total impact likely exceeds £1 billion.

This government changed the tone and got unions back around the table to resolve rail disputes. In recent weeks, the Transport Secretary has instructed senior officials to conduct intensive talks with unions in order to resolve disputes in the interests of the travelling public, which has led to this significant breakthrough.

Transport Secretary, Louise Haigh, said: “When I took this job, I said I wanted to move fast and fix things – starting by bringing an end to rail strikes. Finally today the end is in sight.

“If accepted, this offer would finally bring an end to this long-running dispute and allow us to move forward by driving up performance for passengers with the biggest overhaul to our railways in a generation.”

Transport disruption has a huge impact on the wider economy, with sectors like hospitality and tourism among the worst affected.

In the financial year of 2022 to 2023 alone, strike action was estimated to cost over £500 million of economic output due to people not being able to work.

If ASLEF members vote yes, it will end the national two-year pay dispute during which drivers have taken 18 days of strike action as well as refusing to work non-contractual overtime.

The dispute – the longest in the recent history of Britain’s railways – was because the Tory government, and the privatised train companies, refused to give train drivers, who have not had an increase in salary for five years, since their last pay deals expired in 2019, the pay rise they deserve because, during that time, the cost of living has increased significantly.

Mick Whelan, ASLEF’s general secretary, who negotiated the deal with Simon Weller, assistant general secretary, and Dave Calfe, executive committee president, emerged from talks at the DfT to say:‘We are pleased that after being treated with utter contempt for the last two years by the privatised train companies, and the previous government that was pulling their strings, we finally have a new government – a Labour government – that listens and wants to make the railway work for staff, for passengers, and for the taxpayer.

‘The offer is a good offer – a fair offer – and it is what we have always asked for, a clean offer, without a land grab for our terms & conditions that the companies, and previous government, tried to take in April last year.

‘We will put it to members with a recommendation for them to accept.’

The no-strings three-phase offer is for 5% for 2022-2023; 4.75% for 2023 to 2024; and 4.5% for 2024 to 2025. Backdated and pensionable.

Mick Whelan added: ‘We have achieved more in the last four weeks of a Labour government than we managed under a Tory government that set out to destroy us – first by refusing to meet us, then by insisting the companies could only offer us 2%, then by offering us 4% but with a land grab for all the T&Cs we have spent 144 years negotiating with productivity and sweat.

‘We have gone from people behaving dishonestly and deceitfully and trying to rip up all our t&cs to a group of people who seem to understand the interests of rail workers, the travelling public and the taxpayer.’

GERS stats ‘show higher public spending for Scotland as part of UK’

The annual Government Expenditure and Revenue report underlines the collective economic strength of the UK, says Scotland Office Minister Kirsty McNeill

The collective economic strength of the UK means higher spending on public services in Scotland, according to new figures released today [14 August].

The Scottish Government’s Government Expenditure and Revenue (GERS) figures show that people in Scotland benefit from £2,417 more per head of additional spending compared to the UK average, as a result of the redistribution of wealth throughout the UK.

In 2023-24, £88.5 billion in tax receipts was raised in Scotland through devolved and reserved taxation, with £111 billion in public spending for Scotland. That works out to 8.1 per cent of UK revenue and 9.1 per cent of spending.

The figures also reveal that the ‘notional deficit’ in Scotland grew to around £22 billion, or 10.4 per cent of GDP, more than double the UK deficit of 4.5 per cent of GDP.

The UK Government is committed to retaining the Barnett Formula and funding arrangements agreed with the Scottish Government in the Fiscal Framework, which enables this higher spending for Scotland, and working in partnership with the Scottish Government to drive economic growth in Scotland.

UK Government Minister for Scotland Kirsty McNeill said: “These figures underline the collective economic strength of the United Kingdom.

“By pooling and sharing resources across the UK, Scots benefit by £2,417 more per head in public spending than the UK average. That means more money for schools and hospitals, if the Scottish Parliament chooses to invest in those areas.

“Ensuring economic stability and then delivering economic growth are two of the driving missions of the UK Government. We have reset relationships with partners across the UK, and want to work closely with the Scottish Government to produce better results for people in Scotland.”

The Scottish Conservatives added: “Today’s GERS figures underline the huge benefits Scotland gains from being part of the United Kingdom.

“Every single person is almost £2,400 better off because of higher spending on Scotland’s public services.”

Better Together? The GERS figures can be found here.

UK Government decision ends universal fuel payments for Scots

Scottish Government left with “no choice” following funding cut

Plans to means-test Winter Fuel Payment in England and Wales will see the Scottish Government’s funding cut by up to £160 million.

Social Justice Secretary Shirley-Anne Somerville has confirmed the Scottish Government therefore has ‘no alternative’ but to replicate the decision in Scotland and restrict payments to pensioners who receive eligible benefits.

Social Justice Secretary Shirley-Anne Somerville said: “Despite all efforts to review our financial position we have been left with no choice but to follow the UK Government and restrict payments to older people who receive relevant eligible benefits.

“This is a necessary decision when faced with such a deep cut to our funding and in the most challenging financial circumstances since devolution. The reduction we are facing amounts to as much as 90% of the cost of Scotland’s replacement benefit, the Pension Age Winter Heating Payment.

“Given the UK Government’s decision to restrict payments to those in receipt of means-tested benefits, such as Pension Credit, and the implications for the Scottish Government detailed above, I have urged the Secretary of State for Work and Pensions to undertake a benefits take-up campaign for Pension Credit and to move forward with plans for a social energy tariff.

“Both of these measures will provide some further protection to energy customers in greatest need.”

Deputy First Minister Kate Forbes commented:

Scottish Parliament: Written answer

Age Scotland: Winter Fuel Payment decision ‘brutal’ for Scottish pensioners

Age Scotland is continuing to urge the UK government to reconsider plans to scrap the winter fuel payment for pensioners who do not receive pension credit.

The charity has responded to news that, following the UK Government’s plans to means-test the Winter Fuel Payment, the Scottish Government will have no alternative but to replicate the decision in Scotland.

Age Scotland’s Policy Director, Adam Stachura, said: “It’s infuriating that huge numbers of older people will miss out on the vital Winter Fuel Payment when it is devolved to Scotland.

“We recognise the financial challenge the Scottish Government would face to make up the shortfall to keep the payment universal, but we desperately hoped there could be a more effective delivery of this payment and that it could have looked more generous than the UK Government’s new, and meagre, approach.

“At minimum, a quarter of a million pensioners in Scotland on the lowest incomes or living in fuel poverty will no longer receive this vital financial support over the winter months, while hundreds of thousands more on modest incomes are going to struggle with their energy bills even more than normal as a result.

“This brutal decision by the UK Government was made too fast, cuts too deep and its impact will be severe. It’s important that they rethink this move, as it has a huge impact on the devolution of social security and the needs of Scottish pensioners who live in some of the coldest homes in the UK.”

Visit www.age.scot/SaveWFP to sign Age Scotland’s petition to save the Winter Fuel Payment. 

Chancellor Reeves: Pension funds can fire up the UK economy

  • Chancellor Rachel Reeves calls on UK pension schemes to invest more in the UK economy and deliver better returns for savers
  • Wants UK to learn lessons from ‘Canadian model’ ahead of meeting with major Canadian retirement funds
  • Reeves confirms first Mansion House address will focus on financial service sector’s role in delivering more investment and financing growth as work continues to fix foundations of the economy, rebuild Britain and make every part of the country better off

The Chancellor Rachel Reeves has called on pension funds to “learn lessons from the Canadian model and fire up the UK economy”.

The Chancellor hosted a roundtable with the so-called ‘Maple 8’ group of Canadian retirement funds in Toronto on Wednesday (7 August), who have invested billions of pounds in the UK economy in recent years.

She will urge the funds to continue backing Britain and take home lessons about how consolidation of pension schemes into larger funds can help drive investment in productive assets such as vital infrastructure and high-growth businesses.

The meeting is part of intensive industry engagement for the landmark review of pension fund investment announced last month to boost investment in the UK and deliver higher returns for people’s pension pots.

Also on the Chancellor’s agenda to deliver more investment and finance growth is the financial services sector, with Rachel Reeves confirming her first Mansion House address will set out how she will work in partnership with industry and regulators to deliver growth.

This will include delivering the stability the sector needs to grow, the support it needs to invest across the UK and reforms it needs to remain at the cutting-edge of new innovations and technologies.

Chancellor of the Exchequer Rachel Reeves said: “The size of Canadian pension schemes means they can invest far more in productive assets like vital infrastructure than ours do.

“I want British schemes to learn lessons from the Canadian model and fire up the UK economy, which would deliver better returns for savers and unlock billions of pounds of investment.

“We’re already beginning to see schemes announce plans to invest. That’s a vote of confidence in our work to fix the foundations of the economy, rebuild Britain and make every part of our country better off.”

Industry strongly welcomed the announcement of the pension fund investment review, with supportive comments made by groups such as Legal & General, the BVCA, Aviva, Barclays and Phoenix.

New investment vehicles have since been announced to channel pension fund money into infrastructure and the UK’s fastest growing companies. Last week Phoenix and Schroders launched their Future Growth Capital co-investment fund, which will invest up to £20 billion in the UK over the next decade.

Channelling more pension fund money will release investment demand and comes alongside measures to unlock supply through fixing the broken planning system, setting up a National Wealth Fund and the biggest overhaul of listings rules for the UK stock exchange.