Tag: Westminster

Rishi Sunak: “I will earn your trust”

Prime Minister Rishi Sunak’s statement on the steps of Downing Street

Good morning, I have just been to Buckingham Palace and accepted His Majesty The King’s invitation to form a government in his name.

It is only right to explain why I am standing here as your new Prime Minister.

Right now our country is facing a profound economic crisis. 

The aftermath of Covid still lingers. 

Putin’s war in Ukraine has destabilised energy markets and supply chains the world over.

I want to pay tribute to my predecessor Liz Truss, she was not wrong to want to improve growth in this country, it is a noble aim. 

And I admired her restlessness to create change.

But some mistakes were made. 

Not borne of ill will or bad intentions. Quite the opposite, in fact. But mistakes nonetheless. 

And I have been elected as leader of my party, and your Prime Minister, in part, to fix them.

And that work begins immediately.

I will place economic stability and confidence at the heart of this government’s agenda. 

This will mean difficult decisions to come.

But you saw me during Covid, doing everything I could, to protect people and businesses, with schemes like furlough.

There are always limits, more so now than ever, but I promise you this

I will bring that same compassion to the challenges we face today.

The government I lead will not leave the next generation, your children and grandchildren, with a debt to settle that we were too weak to pay ourselves. 

I will unite our country, not with words, but with action. 

I will work day in and day out to deliver for you.

This government will have integrity, professionalism and accountability at every level.

Trust is earned. And I will earn yours.

I will always be grateful to Boris Johnson for his incredible achievements as Prime Minister, and I treasure his warmth and generosity of spirit.

And I know he would agree that the mandate my party earned in 2019 is not the sole property of any one individual, it is a mandate that belongs to and unites all of us.

And the heart of that mandate is our manifesto.

I will deliver on its promise.

A stronger NHS.

Better schools.

Safer streets.

Control of our borders.

Protecting our environment.

Supporting our armed forces.

Levelling up and building an economy that embraces the opportunities of Brexit, where businesses invest, innovate, and create jobs.

I understand how difficult this moment is.

After the billions of pounds it cost us to combat Covid, after all the dislocation that caused in the midst of a terrible war that must be seen successfully to its conclusions I fully appreciate how hard things are.

And I understand too that I have work to do to restore trust after all that has happened.

All I can say is that I am not daunted. I know the high office I have accepted and I hope to live up to its demands.

But when the opportunity to serve comes along, you cannot question the moment, only your willingness.

So I stand here before you ready to lead our country into the future. 

To put your needs above politics.

To reach out and build a government that represents the very best traditions of my party.

Together we can achieve incredible things.

We will create a future worthy of the sacrifices so many have made and fill tomorrow, and everyday thereafter with hope.

Thank you.

Liz Truss leaves without saying sorry

Liz Truss has given her final speech as Prime Minister on the steps of Downing Street:

It has been a huge honour to be Prime Minister of this great country.

In particular, to lead the nation in mourning the death of Her Late Majesty The Queen after 70 years of service,

and welcoming the accession of His Majesty King Charles III.

In just a short period, this government has acted urgently and decisively on the side of hardworking families and businesses.

We reversed the National Insurance increase.

We helped millions of households with their energy bills and helped thousands of businesses avoid bankruptcy.

We are taking back our energy independence…

…so we are never again beholden to global market fluctuations or malign foreign powers.

From my time as Prime Minister, I am more convinced than ever we need to be bold and confront the challenges that we face.

As the Roman philosopher Seneca wrote: “It is not because things are difficult that we do not dare. It is because we do not dare that they are difficult.”

We simply cannot afford to be a low growth country where the government takes up an increasing share of our national wealth…

and where there are huge divides between different parts of our country.

We need to take advantage of our Brexit freedoms to do things differently.

This means delivering more freedom for our own citizens and restoring power in democratic institutions.

It means lower taxes, so people keep more of the money they earn.

It means delivering growth that will lead to more job security, higher wages and greater opportunities for our children and grandchildren.

Democracies must be able to deliver for their own people…

We must be able to outcompete autocratic regimes, where power lies in the hands of a few.

And now more than ever we must support Ukraine in their brave fight against Putin’s aggression.

Ukraine must prevail.

And we must continue to strengthen our nation’s defences.

That is what I have been striving to achieve… and I wish Rishi Sunak every success, for the good of our country.

I want to thank Hugh, Frances, Liberty, my family and friends, and all the team at No10 for their love, friendship and support.

I also want to thank my protection team.

I look forward to spending more time in my constituency, and continuing to serve South West Norfolk from the backbenches.

Our country continues to battle through a storm.

But I believe in Britain.

I believe in the British people.

And I know that brighter days lie ahead.

Small Mercies: Serial liar withdraws from Tory leadership race (following another lie about numbers)

FORMER Prime Minister Boris Johnson issued the following statement last night:

Johnson’s final acceptance that the anticipated support just isn’t there for him clears the way for a run-off between hot favourite Rishi Sunak and Penny Mordaunt – but only if the latter can attract enough votes among her fellow Tory MPs. That’s looking increasingly unlikely.

If she can’t reach the 100 vote target, we can look forward to the anointing of Rishi Sunak as our new Prime Minister, with the Tory party membership having no say.

Contest or coronation? We’ll know at 2pm.

Weekly update … and what a week!

Monday morning seems like an age ago, and the political circus is likely to continue into next week (writes Fraser of Allander Institute’s MAIRI SPOWAGE).

On Monday, the new chancellor undid pretty much every tax measure in the ex-Chancellor and soon-to-be ex-PM’s “mini”-budget. Only those already legislated for will proceed (the scrapping of the health and social care levy and the stamp duty cuts in England will still happen).

Although the PM has resigned, it still looks like the Fiscal Plan will be presented on 31st October, which is an interesting political situation given that presumably means that Jeremy Hunt will remain as Chancellor whoever wins the leadership election over the next week. But perhaps the last wee while has taught us that presuming anything is foolish!

For Scotland, the extra funding that was going to be generated by these tax measures for the Scottish Budget has now largely disappeared, with only the stamp duty reductions generating additional funding for Scotland.

This presents significant challenges for the Deputy First Minister in managing an already very stretched budget.

Economic Case for Independence published

Somewhat overshadowed by events at Westminster, the Scottish Government published the third in their series of papers to set out a new case for independence on Monday. This paper, “A stronger economy with independence” was expected to set out the economic case, covering issues such as currency, trade, and public sector finances.

We published analysis of the paper on Monday – and look out for our Guide to the Economics of Independence which we’ll be publishing soon and updating as more information is released by the Scottish Government.

Inflation goes back above 10%

The Office for National Statistics (ONS) published September inflation data, which showed that CPI inflation had gone back into double digits, running at 10.1%.

Underneath the headline rate, food and non-alcoholic beverages inflation is now estimated to be 13.1%. There was a slight downward pressure from motor fuels, as the prices at the pumps fall back from the peaks they reached in July.

These data still do not capture the energy price rises households are now experiencing as of 1st October, so expect there to be further increases in the rate when that data is published next month.

Interestingly (well, if you are interested in economic statistics, come on!) it may be that the change in the way the government is supporting households on energy may change the outlook for inflation. If, as is expected, the help after April is more targeted as cash transfers to those households most in need, then this will not put downward pressure on the actual price of energy.

We’ll be looking out for the OBR and Bank of England’s (3rd November) view on the pathway for inflation given these changes.

New Public Sector Finance Data published this morning (Friday)

ONS have also put out the latest public sector finances release, which contains public finance statistics (including deficit and debt) up to September 2022.

These have the first statistics on revenue generated by the Energy Profits Levy, which shows that £2.7 billion was generated from this tax in the year to date. It will be interesting to get the OBR’s independent view of the likely take from this tax over the next few years – and obviously to see if the Chancellor chooses to extend this in some way in the Fiscal Statement.

More broadly, it contains up-to-date statistics on the size of the UK National Debt. Debt has reached £2.5 trillion, which is equivalent to 98% of GDP – levels not seen since the 1960s.

This reminds us of the challenging fiscal environment, which sets the backdrop for the statement by the Chancellor in 10 days time.

No confirmation on the Scottish Government’s Emergency Budget Review 

As we write this, we have no confirmation whether the Scottish Government’s Emergency Budget Review (EBR) will go ahead next week, as previously indicated.

Remember, this review is to look at in-year (2022-23) spending to balance the budget in the face of higher than expected (at the time of the last budget) inflationary pressures, particularly in relation to the public sector pay bill.

We wrote yesterday about employability support, one of the areas that John Swinney has already indicated will be cut. A number of questions remain to be answered. and we hope the EBR will be clear in laying out the evidence considered when deciding where the axe will fall.

The response to whatever is set out by the UK Chancellor on the 31st October will come in the Scottish Government’s draft budget for 2023-24 on the 15th December. For fiscal fans, the fun is due to continue for some months yet!

TRUSS RESIGNS

PRIME Minister Liz Truss has resigned after just six weeks in post.

Truss, who yesterday declared she was ‘a fighter, not a quitter’, has, well, quit after just 45 days in the job.

Her resignation statement was equally short:

I came into office at a time of great economic and international instability.

Families and businesses were worried about how to pay their bills.

Putin’s illegal war in Ukraine threatens the security of our whole continent.

And our country had been held back for too long by low economic growth.

I was elected by the Conservative Party with a mandate to change this.

We delivered on energy bills and on cutting national insurance.

And we set out a vision for a low tax, high growth economy – that would take advantage of the freedoms of Brexit.

I recognise though, given the situation, I cannot deliver the mandate on which I was elected by the Conservative Party.

I have therefore spoken to His Majesty The King to notify him that I am resigning as Leader of the Conservative Party.

This morning I met the Chair of the 1922 Committee Sir Graham Brady.

We have agreed there will be a leadership election to be completed in the next week.

This will ensure we remain on a path to deliver our fiscal plans and maintain our country’s economic stability and national security.

I will remain as Prime Minister until a successor has been chosen.

Thank you.

Scotland’s First Minister Nicola Sturgeon tweeted:”There are no words to describe this utter shambles adequately. It’s beyond hyperbole – & parody. Reality tho(ugh) is that ordinary people are paying the price.

“The interests of the Tory party should concern no-one right now. A General Election is now a democratic imperative.”

Labour leader Sir Keir Starmer said: “After 12 years of Tory failure, the British people deserve so much better than this revolving door of chaos. We need a general election, now.”

His full statement:

Truss will remain as PM until her successor is elected – not by the people of Great Britain, but by Tory MPs.

NOW, WHAT COULD POSSIBLY GO WRONG?

Death throes of a dying Government?

CHAOTIC TORY GOVERNMENT LURCHES FROM CRISIS TO CRISIS

HOME SECRETARY RESIGNS

DEFIANT TRUSS CLINGS ON – FOR NOW

Suella Braveman’s scathing resignation letter:

Prime Minister’s response:

If the resignation of another senior government minister was serious enough, worse was to follow on a chaotic evening at Westminster as Tory whips were accused of bullying and physically manhandling MPs over a crucial vote on fracking.

Both the Chief Whip and Deputy Chief Whip resigned – or maybe they didn’t.

Chaos. Utter chaos.

At time of writing Liz Truss remains in post as Prime Minister, clinging on despite her authority collapsing around her. Whether she will still be there this evening is anyone’s guess.

Too far, too fast: We have to be honest with people, says Chancellor Hunt

Statement from Chancellor of the Exchequer, Jeremy Hunt:

Chancellor of the Exchequer, Jeremy Hunt said: “My focus is on growth underpinned by stability. The drive on growing the economy is right – it means more people can get good jobs, new businesses can thrive and we can secure world class public services. But we went too far, too fast.

“We have to be honest with people and we are going to have to take some very difficult decisions both on spending and on tax to get debt falling but the top of our minds when making these decisions will be how to protect and help struggling families, businesses and people.

“I will set out clear and robust plans to make sure government spending is as efficient as possible, ensure taxpayer money is well spent and that we have rigorous control over our public finances.”

The Fall Guy: Kwasi Kwarteng sacked

CHANCELLOR Kwasi Kwarteng has been sacked, carrying the can for the ill-judged ‘mini-budget’ which has caused economic turmoil since it was announced three weeks ago today.

‘I’m going nowhere’ Kwarteng, Prime Minister Liz Truss’s choice as Chancellor, was recalled from an IMF meeting in Washington DC this morning to be told the news.

Prime Minister Liz Truss will desperately hope that the departure of close ally Kwarteng will appease the markets. She made the following brief statement confirming a humiliating U-turn this afternoon:

Good afternoon,

My conviction that this country needs to go for growth is rooted in my personal experience.

I know what it’s like to grow up somewhere that isn’t feeling the benefits of growth.

I saw what that meant and I am not prepared to accept that for our country.

I want a country where people can get good jobs, new businesses can set up and families can afford an even better life.

That’s why from day one I’ve been ambitious for growth.

Since the 2008 financial crisis, the potential of this great country has been held back by persistently weak growth.

I want to deliver a low tax, high wage, high growth economy.

It’s what I was elected by my party to do.

That mission remains.

People across this country rightly want stability.

That is why we acted to support businesses and households with their energy costs this winter.

It’s also the case that global economic conditions are worsening due to the continuation of Putin’s appalling war in Ukraine.

And on top of this, debt was amassed helping people through the Covid pandemic.

But it is clear that parts of our mini budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change.

We need to act now to reassure the markets of our fiscal discipline.

I have therefore decided to keep the increase in corporation tax that was planned by the previous government. This will raise £18 billion per year.

It will act as a down-payment on our full Medium-Term Fiscal Plan which will be accompanied by a forecast from the independent OBR.

We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term.

We will control the size of the state to ensure that taxpayers’ money is always well spent.

Our public sector will become more efficient to deliver world-class services for the British people.

And spending will grow less rapidly than previously planned.

I met the former Chancellor earlier today. I was incredibly sorry to lose him. He is a great friend and he shares my vision to set this country on the path to growth.

Today I have asked Jeremy Hunt to become the new Chancellor.

He is one of the most experienced and widely respected government ministers and parliamentarians.

And he shares my convictions and ambitions for our country.

He will deliver the Medium-Term Fiscal Plan at the end of this month.

He will see through the support we are providing to help families and businesses including our Energy Price Guarantee that’s protecting people from higher energy bills this winter.

And he will drive our mission to go for growth, including taking forward the supply side reforms that our country needs.

We owe it to the next generation to improve our economic performance to deliver higher wages, new jobs and better public services, and to ease the burden of debt.

I have acted decisively today because my priority is ensuring our country’s economic stability.

As Prime Minister, I will always act in the national interest.

This is always my first consideration.

I want to be honest, this is difficult. But we will get through this storm.

And we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.

Kwarteng’s replacement – and the UK’s fourth Chancellor in a tumultuous 2022 – is none other than veteran former health secretary Jeremy Hunt.

Hunt supported Rishi Sunak – who’s predictions on the economy have been proved painfully accurate – in the recent Tory leadership election.

Hunt himself was an early casualty in the recent Tory leadership election and was also once voted as the most unpopular front-line politician of all time!

Clearly another popular choice … what could possibly go wrong?

HM Treasury issued the following statement this evening:

Government update on Corporation Tax

  • The Prime Minister has set out that the way the government is delivering on its mission to achieve a low tax, high wage, high growth economy is to change.
  • The legislated increase in the Corporation Tax rate from April 2023 will go ahead, with most small businesses benefitting from the new small profits rate.
  • Chancellor Jeremy Hunt will deliver the Medium-Term Fiscal Plan on 31 October, detailing action to get debt falling as a percentage of GDP over the medium term.

The government has today [Friday 14 October] announced that Corporation Tax will increase to 25% from April 2023 as already legislated for, raising around £18 billion a year and acting as a down payment on its full Medium-Term Fiscal Plan.

The decision has been taken in recognition of the need to ensure the UK’s economic stability and reassure markets of its commitment to fiscal discipline, after elements of September’s Growth Plan went further and faster than markets were expecting.

The Prime Minister has set out that the government is prepared to do whatever is necessary to ensure debt is falling as a share of the economy in the medium term and to ensure that taxpayers’ money is well spent, putting public finances on a sustainable footing.

The previously announced small profits rate of Corporation Tax will be maintained. Smaller or less profitable businesses will not pay the full 25% rate, and companies with less than £50,000 of profit – the large majority – will not see any increase at all, continuing to pay Corporation Tax at 19%.

The UK’s corporate tax regime will remain competitive and supportive of growth at the 25% rate, continuing to be the lowest rate in the G7. As part of the forthcoming tax review, the government will look at how the tax system can go further to promote growth and investment.

The government is committed to growing the economy and taking forward supply-side reforms that will ignite strong and sustained growth that delivers prosperity for the UK.

Chancellor of the Exchequer Jeremy Hunt will set out the government’s Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility.

Pentlands MSP Gordon Macdonald backs calls for Chancellor to go

 INDEPENDENCE THE ONLY ROUTE TO ESCAPE TORY CUTS FOR GOOD

SNP MSP Gordon Macdonald has backed calls for Chancellor of the Exchequer Kwasi Kwarteng to resign or be sacked following his shambolic handling of the UK’s finances. 

It comes as the independent Office for Budget Responsibility confirmed they offered to provide a forecast to the Chancellor to go alongside his fiscal statement, but that it was not commissioned by the UK Government.

This was despite the OBR confirming it WAS able to produce an updated forecast that satisfied the legal requirements of the Charter for Budget Responsibility.

And the calls to quit have intensified after Prime Minister Liz Truss refused to rule out her Government slashing benefits and cutting £18billion from public services – which threatens Scotland’s budget and our NHS – to pay for Kwarteng’s staggering incompetence in mishandling the economy.

SNP MSP Gordon Macdonald said: “The fallout from the new Truss administration’s ‘mini-budget’ has been huge, taking a wrecking ball to the UK’s finances, endangering the pension funds of millions, causing banks to withdraw mortgages and leaving millions of families in Edinburgh deep distress.

“We now learn that despite the OBR publishing their forecast to the UK Government, the Treasury will delay the publication until November 23. This is simply unacceptable.

“It’s been a disastrous first few weeks of the Truss premiership but if the rhetoric from the Conservatives is to be believed, much worse is yet to come.

“Within days of taking office, we have once again seen the devastating consequences of Scotland being shackled to this outdated, corrupt Westminster system. Mortgages, pensions and savings of the people of Edinburgh are all being badly hit – and there is no plan to fix it.

“Instead of trying to dodge accountability or, as we now know, drinking champagne with hedge fund managers on the night of his budget, the Chancellor must do the honourable thing and resign or be sacked.

“And Truss’s plan to impose a new wave of Tory austerity cuts is utterly obscene. After 12 years of Tory mismanagement and Brexit damage, the UK already had the worst levels of poverty and inequality in north west Europe.

“The UK government should be reversing the damage it has caused, not doubling down on cuts and pushing more people into poverty.

“These actions underline the need for Scotland to become an independent country – so we can escape Westminster control and get rid of the Tories for good.”

Truss: I am determined to deliver

Prime Minister Liz Truss’s statement on the steps of Downing Street:

Good afternoon,

I have just accepted Her Majesty The Queen’s kind invitation to form a new government. 

Let me pay tribute to my predecessor.

Boris Johnson delivered Brexit, the Covid vaccine, and stood up to Russian aggression.

History will see him as a hugely consequential Prime Minister.

I’m honoured to take on this responsibility at a vital time for our country.

What makes the United Kingdom great is our fundamental belief in freedom, in enterprise, and in fair play.

Our people have shown grit, courage and determination time and time again.

We now face severe global headwinds caused by Russia’s appalling war in Ukraine and the aftermath of Covid.

Now is the time to tackle the issues that are holding Britain back.

We need to build roads, homes and broadband faster.

We need more investment and great jobs in every town and city across our country.

We need to reduce the burden on families and help people get on in life.

I know that we have what it takes to tackle those challenges.

Of course, it won’t be easy. But we can do it.

We will transform Britain into an aspiration nation…with high-paying jobs, safe streets and where everyone everywhere has the opportunities they deserve.

I will take action this day, and action every day, to make it happen.

United with our allies, we will stand up for freedom and democracy around the world – recognising that we can’t have security at home without having security abroad.

As Prime Minister, I will pursue three early priorities.

Firstly, I will get Britain working again.

I have a bold plan to grow the economy through tax cuts and reform.

I will cut taxes to reward hard work and boost business-led growth and investment.

I will drive reform in my mission to get the United Kingdom working, building, and growing.

We will get spades in the ground to make sure people are not facing unaffordable energy bills and we will also make sure, that we are building hospitals, schools, roads, and broadband.

Secondly, I will deal hands-on with the energy crisis caused by Putin’s war.

I will take action this week to deal with energy bills and to secure our future energy supply.

Thirdly, I will make sure that people can get doctors’ appointments and the NHS services they need. We will put our health service on a firm footing.

By delivering on the economy, on energy, and on the NHS, we will put our nation on the path to long-term success.

We shouldn’t be daunted by the challenges we face.

As strong as the storm may be, I know that the British people are stronger.

Our country was built by people who get things done.

We have huge reserves of talent, of energy, and determination.

I am confident that together we can:

Ride out the storm,

We can rebuild our economy,

And we can become the modern brilliant Britain that I know we can be.

This is our vital mission to ensure opportunity and prosperity for all people and future generations. I am determined to deliver. Thank you.

CABINET APPOINTMENTS:

  • The Rt Hon Elizabeth Truss MP as Prime Minister, First Lord of the Treasury, Minister for the Civil Service, and Minister for the Union
  • The Rt Hon Dr Thérèse Coffey MP as Secretary of State for Health and Social Care. She will also be Deputy Prime Minister (below).
  • The Rt Hon Kwasi Kwarteng MP as Chancellor of the Exchequer
  • The Rt Hon James Cleverly MP as Secretary of State for Foreign, Commonwealth and Development Affairs
  • The Rt Hon Suella Braverman QC MP as Secretary of State for the Home Department
  • Wendy Morton MP as Parliamentary Secretary to the Treasury (Chief Whip). She will attend Cabinet
  • The Rt Hon Ben Wallace MP has been re-appointed as Secretary of State for Defence
  • The Rt Hon Brandon Lewis CBE MP as Lord Chancellor, and Secretary of State for Justice
  • The Rt Hon Nadhim Zahawi MP as Chancellor of the Duchy of Lancaster, Minister for Intergovernmental Relations and Minister for Equalities
  • The Rt Hon Penny Mordaunt MP as Lord President of the Council, and Leader of the House of Commons
  • Lord True CBE as Lord Privy Seal, and Leader of the House of Lords
  • The Rt Hon Jake Berry MP as Minister without Portfolio
  • The Rt Hon Alok Sharma MP has been re-appointed as COP26 President
  • The Rt Hon Jacob Rees-Mogg MP as Secretary of State for Business, Energy and Industrial Strategy
  • The Rt Hon Simon Clarke MP as Secretary of State for Levelling Up, Housing and Communities
  • Kemi Badenoch MP as Secretary of State for International Trade and President of the Board of Trade
  • Chloe Smith MP as Secretary of State for Work and Pensions
  • The Rt Hon Kit Malthouse MP as Secretary of State for Education
  • Ranil Jayawardena MP as Secretary of State for Environment, Food and Rural Affairs
  • The Rt Hon Anne-Marie Trevelyan MP as Secretary of State for Transport
  • The Rt Hon Michelle Donelan MP as Secretary of State for Digital, Culture, Media and Sport
  • The Rt Hon Chris Heaton-Harris MP as Secretary of State for Northern Ireland
  • The Rt Hon Alister Jack MP has been re-appointed as Secretary of State for Scotland
  • The Rt Hon Sir Robert Buckland KBE QC MP has been re-appointed as Secretary of State for Wales
  • Chris Philp MP as Chief Secretary to the Treasury. He will attend Cabinet
  • Rt Hon Michael Ellis QC MP as Attorney General. He will attend Cabinet
  • Edward Argar MP as Paymaster General and Minister for the Cabinet Office. He will attend Cabinet
  • Vicky Ford MP as a Minister of State (Minister for Development) in the Foreign, Commonwealth and Development Office. She will attend Cabinet
  • Tom Tugendhat MBE MP as a Minister of State (Minister for Security) in the Home Department. He will attend Cabinet
  • James Heappey MP has been re-appointed as a Minister of State in the Ministry of Defence. He will be Minister for the Armed Forces and Veterans and will attend Cabinet.
  • Graham Stuart MP as a Minister of State (Minister for Climate) in the Department for Business, Energy and Industrial Strategy. He will attend Cabinet.