Boris Johnson ‘gets on with the job’ as his government collapses around him
IT was perhaps the most remarkable day in British political history. Seldom, if ever, has so much drama been packed into twenty-four hours.
What happened yesterday? In summary:
New Chancellor of the Exchequer Nadhim Zahawi does the early morning round of media calls: business as usual, getting on with the job, etc. etc.
An uncomfortable Prime Minister’s Questions sees Boris Johnson ridiculed by Opposition party leaders and attacked by members of his own party
PMQs is followed by a damning statement to parliament by outgoing Education secretary Sajid Javid
Boris Johnson leaves Westminster to attempt to appoint new ministers. This proves impossible as there is a steady stream of resignations – more than 40 by the end of the day – as well as new flood of letters of no confidence.
If PMQs was painful. an appearance in front of the high-powered Liaison Committee later in the afternoon was excruciating, with politicians from all sides taking the opportunity to heap further misery on a clearly flustered Prime Minister.
Asked by a committee member how his week was going, Boris Johnson replied: ‘Terrific’. I assume he was joking – but then, with this Prime Minister, you can never be really sure …
You might have thought the Prime Minister’s ‘terrific’ day couldn’t have got any worse … but this was no ordinary day.
Awaiting the PM at Downing Street was a group of Cabinet ministers, including newly-appointed Chancellor Nadhim Zahawi-, the vast majority of whom urged him to stand down.
The chairman of the Tory Party’s 1922 committee also patiently awaited his audience with the PM – and it’s not breaking any confidences to say that Sir Graham Brady was not the bearer of glad tidings of great joy either …
Johnson met each of them individually, but rather than heed their considered advice that the game was up, the Prime Minister instead sided with the views of arch-loyalists Nadine Dorries and Jacob Rees-Mogg and decided instead to fight on … and as a parting shot for the evening fired arch-conspirator Michael Gove!
Putting all those internal difficulties aside, The Prime Minister found time to ‘get on with the job’ and fired off a letter to Scotland’s First Minister Nicola Sturgeon to confirm that no, I won’t be agreeing to another referendum …
A busy day at the office indeed, and a day on which Wimbledon really couldn’t match Westminster for excitement and drama.
Who knows what surprises today will bring as the Prime Minister attempts to salvage his government from the remnants of his deeply divided party?
Can his ‘terrific’ week really get any worse? Resignation looks inevitable but could this serial survivor really escape once again?
30 million people across the UK will benefit from the biggest personal tax cut in a decade from today
‘Hard working Brits’ will save up to £330 per year – 2.2 million lifted out of personal tax altogether
70% of UK workers now paying less National Insurance, even after accounting for the Health and Social Care Levy
30 million people across the UK will benefit from the biggest personal tax in a decade from today – with hard working Brits saving up to £330 per year.
The £6 billion tax cut will see the level at which people start paying National Insurance rise to £12,570 – lifting 2.2 million people out of paying any personal tax and ensuring people get to keep more of the money they earn.
The threshold change means that 70% of UK workers will pay less National Insurance, even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end to spiralling social care costs.
Speaking before his resignation last night, formerChancellor of the Exchequer Rishi Sunak said: “I know rising prices are putting pressure on hard-working families across the UK – which is why we’ve stepped in to help to ease the burden with a £37 billion package of support this year, including at least £1,200 going directly to the 8 million most vulnerable families.
“Today marks the next stage in that package, with the biggest personal tax cut in over a decade coming in to help millions of workers across the UK keep up to £330 more each year.”
The Prime Minister (at time of writing, anyway – Ed.) said: “We know it’s tough for many families across the UK, but we want you to know that this government is on your side.
“Today’s tax cut means around 70 per cent of British workers will pay less National Insurance – even after accounting for the Health and Social Care Levy that is funding the biggest catch up programme in NHS history and putting an end spiralling social care costs.
“So whether you are a receptionist, work in hospitality or are a delivery driver, this tax cut is likely to make you and your family better off.”
From today the level at which people start paying National Insurance has risen from £9,880 to £12,570.
This change means that millions of people working across hundreds of different industries across the UK will now be better off.
This includes bricklayers who’ll save £218, care workers who’ll save £324, hairdressers who will get a £118 benefit and nursery assistants who’ll get a £343 yearly boost.
Workers can check their salary in the government’s online tool to estimate the amount they could save between July 2022 to July 2023.
The last major personal tax cut of today’s magnitude was nearly ten years ago, when the income tax personal allowance increased by £1,100 in 2013. Today’s threshold change is more than double that, as working people are now able to hold on to an extra £2,690 free from tax.
Today’s change to National Insurance thresholds comes as part of the Chancellor’s wider vision for a lower tax economy. At the Spring Statement Mr Sunak announced a 1p income tax cut in 2024 – which will be the first cut to the basic rate in 16 years and will save the average taxpayer a further £175 a year.
The Chancellor also committed to cutting and reforming business taxes later this year in the autumn, to help spur business growth and productivity. The government is currently working with industry on how best to do that.
The increase to the National Insurance thresholds will leave around 76% of National Insurance payers in the North East better, 75% in the North West and Merseyside, and 62% in London.
Today’s landmark personal tax cut also comes as the government launched new Help for Households campaign designed to raise awareness and signpost people to the £37 billion in support on offer and targeted at those most in need.
The support provides millions of the most vulnerable households at least £1,200 of support in total this year to help with the cost of living, with all domestic electricity customers receiving at least £400 to help with their bills.
It also includes a 5p fuel duty cut – the biggest cut ever to fuel duty rates, a rise in the national living wage to give full time workers an extra £1,000 and a cut to the Universal Credit taper rate to provide over 1 million families an extra £1,000.
The NICs threshold change takes effect following the government making tough but responsible decisions to manage the public finances responsibly and choosing not to saddle future generations with almost £400 billion of debt used to protect jobs and the economy during the pandemic – worth around £5,500 for every person in the UK.
The government had planned for this good news story to be the big news event of today, but those plans were scuppered by the resignation of two senior cabinet ministers last night. As former Prime Minister Harold MacMillan once ruefully observed: “Events, dear boy. Events” …
BELEAGUERED BORIS JOHNSON INSISTS HE’LL ‘GET ON WITH THE JOB’
Chancellor of the Exchequer Rishi Sunak and Health Secretary Sajid Javid resigned from Boris Johnson’s Tory government last night.
The mishandling of the former deputy Chief Whip Chris Pincher affair seems to have been the final straw for the two senior cabinet ministers, who submitted letters of resignation within minutes of each other last night.
Four junior ministers and Solicitor General Alex Chalk also resigned, piling pressure on the Prime Minister to step down.
Prime Minister Boris Johnson has vowed to carry on, however, and promoted three loyalists in an attempt to shore up his teetering government. The following ministerial appointments have been made:
Rt Hon Nadhim Zahawi MP to be Chancellor of the Exchequer
Rt Hon Steve Barclay MP to be Secretary of State for Health and Social Care
Rt Hon Michelle Donelan MP to be Secretary of State for Education
Health and Social Care Secretary Steve Barclay said: “It is an honour to take up the position of Health and Social Care Secretary. Our NHS and social care staff have showed us time and again – throughout the pandemic and beyond – what it means to work with compassion and dedication to transform lives.
“This government is investing more than ever before in our NHS and care services to beat the Covid backlogs, recruit 50,000 more nurses, reform social care and ensure patients across the country can access the care they need.”
THE Government is collapsing and it has been “corrupted” by Prime Minister Boris Johnson, Labour leader Sir Keir Starmer said last night.
Speaking to GB News after the resignation of Chancellor of the Exchequer Rishi Sunak and Health Secretary Sajid Javid, he also called for a General Election.
He told Darren McCaffrey: “It’s clear that this Tory government is now collapsing.
“Tory cabinet ministers have been cheerleaders for Johnson throughout this sorry saga. They backed him when he broke the law.
“They backed him when he lied. They backed him when he mocked the sacrifices of the British people, so they have been complicit as he has disgraced his office and let down his country.
“And frankly, if they had a shred of integrity, they would have gone months ago. The Tory Party is corrupted and tragic.
“One man at the top won’t fix it. We need a real change of government and a fresh start for Britain.”
Sir Keir added: “There’s anything but political stability, this government is collapsing. Cabinet members have been backing Boris Johnson through this.
“The Tory party is corrupted and we need not just a change at the top of the Tory party, we need a change of government and a fresh start for our country so we can actually address those big issues that are undoubtedly out there.”
He continued: “He isn’t fit to be Prime Minister. He’s not fit to govern the country.
“That is appalling for many people across the Conservative Party but they have to reflect on the fact that they have backed him for months and months and months and resigning today, it means nothing against their complicity for all those months when they should have seen him for what he was they knew who he was.”
Starmer called for a General Election: “We need a fresh start for Britain. We need a change of government and this government is collapsing. The Tory party is corrupted and changing one man at the top of the Tory party won’t make any difference. It won’t fix the problems.
“Let’s have a fresh start for Britain, let’s have a real change of government.”
First Minister Nicola Sturgeon tweeted: “Feels like end might be nigh for Johnson – not a moment too soon. Notable tho that the resigning ministers were only prepared to go when they were lied to – they defended him lying to public. The whole rotten lot need to go.
“And Scotland needs the permanent alternative of independence.”
Prime Minister’s Questions will be interesting today!
This week, the Royal Life Saving Society UK (RLSS UK), the national charity and leader in lifesaving and lifeguarding training across the UK and Ireland, brought its annual Drowning Prevention Week campaign to Westminster.
MPs came together with the RLSS UK CEO and Charity Director, lifeguards, Olympian Professor Greg Whyte OBE, Paralympian Ellie Robinson MBE, and over 50 other Parliamentarians to discuss the importance of spreading water safety awareness, as well as what practical steps could be taken in their constituencies to address the issue.
At the event, MPs had the chance to see this guidance first-hand, including how to use throw lines, how to respect bodies of water, among other resources and also check out the cutting-edge equipment that is now being used to keep our shorelines and lakes safer than ever.
The RLSS UK also showed MPs the charity’s brand-new animation aimed at educating parents and their children about water safety and starting conversations of how their family can enjoy the water safely this summer.
Over 400 people die every year in the UK and Ireland from accidental drowning, yet every drowning is avoidable. Of those who drown, some 40% had no intention of entering the water in the first place. Yet people should still feel free to enjoy the water, as with the correct education and awareness, this can be done safely.
Drowning Prevention Week, which began on 18th June and continues until 25th June, encourages the public to be ready to enjoy being in, on, or around water this summer by ensuring that they and their families have a good understanding of water safety.
Lee Heard, Charity Director at RLSS UK said:“With June, July, and August proving to be the months with the most fatalities, it is vitally important that everyone understands water safety, especially during the summer months.
“We want to ensure that everyone can enjoy their summer break and enjoy being in or around water but be safe in the knowledge that they, and their children, have the skills and understanding about water safety, which could potentially save a life.
“It is fantastic to have so many MPs pledge to support our work in their constituencies, and even Ministers and Lords, came to show their support for our Drowning Prevention Week campaign. Their support will help us to highlight the issues surrounding water safety education and helping to educate communities.”
Olympian Professor Greg Whyte OBE, said: “I have been privileged to work with the Royal Life Saving Society UK for many years, as we strive to spread awareness around water safety and help people to enjoy water safely.
“Every MP who came along to our event, and who helps us spread the message and awareness of this important campaign is helping us reach our ultimate goal of zero water deaths, and for that I am grateful.”
Paralympian Ellie Robinson MBE, said:“While swimming ability is of course crucial, far more worrying is the statistic that some 40% of people who drown had no intention of entering the water in the first place. Only by spreading greater awareness of water safety can we help people to enjoy water safely and reduce fatalities.”
The event came quickly after the inaugural meeting of the All Party Parliamentary Group (APPG) for Water Safety. This took place earlier this month and aims to establish more accessible water safety education across the UK to prevent future drownings.
Damien Moore MP, Chair of the APPG on Water Safety, said:“Every drowning is a tragedy, and despite the RLSS UK’s excellent education campaign having reached an estimated 20 million people across the UK, these horrific accidents continue to happen.
“It is my sincerest hope that by hosting this event in Parliament, we have helped to further spread awareness of how best to enjoy water safely, so that ultimately lives can be saved.
“I want to thank the RLSS UK, along with every MP who came along to our event, for the vital work that they are doing in spreading awareness.”
‘Freedom of speech and the views of elected lawmakers will be given greater weight in law’ under a Bill of Rights introduced to the Westminster Parliament yesterday. The Bill has been condemned by the Scottish Government, who say the proposals are ‘shocking and unnecessary’.
Freedom of speech to be given greater weight in law
New permission stage in court to prevent trivial legal claims wasting taxpayers’ money
Allows future laws to make it harder for foreign criminals to frustrate deportation process
The Bill will ensure courts cannot interpret laws in ways that were never intended by Parliament and will empower people to express their views freely.
At the same time, it will help prevent trivial human rights claims from wasting judges’ time and taxpayer money. A permission stage in court will be introduced requiring people to show they have suffered a significant disadvantage before their claim can go ahead.
The Bill will also reinforce in law the principle that responsibilities to society are as important as personal rights. It will do this by ensuring courts consider a claimant’s relevant conduct, like a prisoner’s violent or criminal behaviour, when awarding damages.
The Bill will make clear that the UK Supreme Court is the ultimate judicial decision-maker on human rights issues and that the case law of the European Court of Human Rights does not always need to be followed by UK courts.
Deputy Prime Minister, Lord Chancellor and Secretary of State for Justice, Dominic Raab said: “The Bill of Rights will strengthen our UK tradition of freedom whilst injecting a healthy dose of common sense into the system.
“These reforms will reinforce freedom of speech, enable us to deport more foreign offenders and better protect the public from dangerous criminals.”
The Bill of Rights will make it easier to deport foreign criminals by allowing future laws to restrict the circumstances in which their right to family life would trump public safety and the need to remove them.
It will mean that under future immigration laws, to evade removal a foreign criminal would have to prove that a child or dependent would come to overwhelming, unavoidable harm if they were deported.
As a result, any new laws will curb the abuse of the system that has seen those convicted of hurting their own partners and children evade removal by claiming it would breach their right to family life in the UK.
The Bill of Rights will also:
Boost freedom of the press and freedom of expression by introducing a stronger test for courts to consider before they can order journalists to disclose their sources.
Prevent courts from placing new costly obligations on public authorities to actively protect someone’s human rights and limit the circumstances in which current obligations apply, for example, police forces having to notify gang members of threats towards them from other gangs.
Insulate the Government’s plans to increase the use of prison Separation Centres against legal challenge from extremist offenders claiming ‘a right to socialise’.
Recognise that trial by jury is a fundamental component of fair trials in the UK.
Prevent human rights from being used as a way to bring claims on overseas military operations once alternative options are provided by upcoming legislation.
Confirm that interim measures from the European Court of Human Rights under Rule 39, such as the one issued last week which prevented the removal flight to Rwanda, are not binding on UK courts.
This will be achieved while retaining the UK’s fundamental commitment to the European Convention on Human Rights.
UK BILL OF RIGHTS CONDEMNED
Call for Scottish Parliament to be consulted
Proposals to repeal the Human Rights Act are a “shocking and unnecessary” attempt to remove safeguards afforded to every member of society, Equalities Minister Christina McKelvie has said.
Putting on record the Scottish Government’s unequivocal opposition to the UK Government’s Bill of Rights, published today, Ms McKelvie stressed that the Scottish Parliament would have to agree to any changes affecting the devolution settlement.
Ms McKelvie said: “This shocking and unnecessary legislation seeks to put UK Ministers above some of the most fundamental checks and balances that underpin our democracy.
“The fact remains that we do not need a new Bill of Rights. The Human Rights Act is one of the most important laws passed by the UK Parliament. For more than 20 years it has delivered fairness and justice – protecting our rights to privacy and liberty, freedom of expression and peaceful protest. It has prevented discrimination, inhumanity and the abuse of power.
“The UK Government’s Rwanda policy has been challenged in the European Court of Human Rights. This legislation appears to be part of its response – an attempt to remove safeguards protecting every member of our society.
“As a founding signatory of the European Convention on Human Rights, the UK Government should be championing international human rights standards and the rule of law. Instead its Ministers appear intent on damaging the UK’s global reputation.
“I would urge them to stop this act of vandalism which will have an impact on public bodies that must adhere to it. The UK Government must also remain fully committed to the European Convention on Human Rights and to membership of the Council of Europe.
“The Human Rights Act is built into the heart of the devolution settlement, and any legislation that breaches the Act has no force in law. Let me make clear that it would therefore be wholly unacceptable to make changes affecting Scotland without the explicit agreement of the Scottish Parliament.
“I am proud that the Scottish Government is treading a different path, showing human rights leadership by protecting and enhancing our rights and freedoms, with plans for future Scottish legislation to extend devolved human rights safeguards even further.”
Since report publication in July 2018, the immigration system in the UK has undergone significant reforms, in addition to leaving the European Union, the covid-19 pandemic had a major impact on immigration.
The Scottish Secretary points out in his response that non-EEA work visa applications are back to pre-pandemic levels, and EEA work visas have been increasing since the end of EU free movement.
At the time of publishing its report – July 2018 – the Committee raised concern that the points-based immigration system was complicated and bureaucratic.
In the Scottish Secretary’s response, he states that reforms are ongoing to streamline and simplify the system. He also offers an update on the latest quarterly statistics on EU immigration, showing that as of 31 December 2021, more than six million EU nationals and their families have been granted status under the EU Settlement Scheme, of which nearly 300,000 are in Scotland.
Scottish Affairs Committee Chair, Pete Wishart MP, said: “I am pleased that our Committee has finally received the Government’s response to the predecessor Committee’s report on immigration.
“However, such a delayed response has made it almost impossible for the Committee to track and scrutinise the impact immigration reforms are having on the people of Scotland.
“The predecessor Committee, which I chaired, would no doubt be disappointed that the Government response failed to address recommendations that could have benefited Scotland.
“This includes helping to tailor the immigration system to the needs of Scotland, such as through a Scotland specific shortage occupation list.”
Over 347,000 unemployed people on benefits have found work in just four months through the government’s Way to Work campaign – an ambitious national push to get half a million more people into jobs by the end of June.
new figures show 347,000 people have moved into work since January – thanks to a government-backed drive to fill vacancies
with one month to go until the campaign ends, the government is calling on UK employers to join forces with Jobcentres to help more people find work
alongside vital job support to lift incomes, the new £15 billion package to help with the cost of living will help millions of households
The Prime Minister and Work and Pensions Secretary haveurged employers of all sizes to use the free recruitment support from their local Jobcentre to help fill the record number of vacancies in the jobs market and support the continued economic recovery by getting people into work.
Since January, DWP jobcentres across the UK have been ramping up operations with weekly jobs fairs – bringing employers in for face-to-face appointments and offering jobs on the spot to thousands of people.
Jobseekers walking away with roles have also secured an income, with those getting full time work set to be thousands of pounds better off than if they were on benefits. Helping households improve their finances and manage current cost of living pressures is a key priority for the government, with a £15 billion package announced on Thursday to support almost all of the eight million most vulnerable households across the UK.
On a visit to the North East of England, the Prime Minister and Work and Pensions Secretary Therese Coffey visited CityFibre, a new employer to the Way to Work campaign who have already benefitted from 200 new recruits from around the UK, hired through their local Jobcentres.
During the visit, they also met local employees who have secured skilled jobs as a result of the campaign and the support of their local Jobcentre.
Prime Minister Boris Johnson said: ““I was only ten years old when unemployment was last this low.
“But with a vast number of vacancies in the jobs market, it is more critical than ever to access the huge pool of untapped talent in towns and cities right across the country, which is why I am thrilled with the progress we have made with the Way to Work scheme.”
Secretary of State for Work and Pensions Thérèse Coffey said: “Unemployment is at its lowest since the 1970s with full time workers across the UK £6000 better off than if they were on benefits.
“And there are still vacancies to fill. That’s why our jobcentres are helping employers short circuit the recruitment process so they can get talent in fast.
“So, if you’re hiring, make the most of the help on offer from us.”
Greg Mesch, Chief Executive at CityFibre said: “CityFibre is rolling out the UK’s finest digital infrastructure to millions of homes and businesses nationwide. To build these new Full Fibre networks, we’re creating thousands of new network construction jobs and providing industry training to those that need it.
“We and our construction partners are working closely with DWP nationally, and local Jobcentres, by engaging with schemes like Way to Work. We look forward to increasing our involvement in the future.”
Alongside vital job support to help jobseekers secure an income, the new £15 billion cost of living support package will help almost all of the eight million most vulnerable households across the UK as they are set to receive help of at least £1,200 this year, including a new one-off £650 cost of living payment.
The government has also announced a £500 million increase for the Household Support Fund, delivered by local authorities, extending it to March 2023. This brings the total Household Support Fund to £1.5 billion.
To find out more about how DWP can help fill vacancies with quality candidates, please visit the Way to Work page on GOV.UK
A trickle of Tory MPs have submitted letters of no confidence in Boris Johnson following the publication of the Sue Gray report.
Unless that trickle becomes a flood over the weekend as MPs attend constituency surgeries it appears Johnson has got away with it. Again.
Madam Deputy Speaker, The high inflation we are experiencing now is causing acute distress for the people of this country. I know they are worried, I know people are struggling. I want to explain what is happening, why it is happening, and what we propose to do about it.
I trust the British people, and I know they understand no government can solve every problem, particularly the complex and global challenge of inflation.
But this government will never stop trying to help people, to fix problems where we can, to do what is right – as we did throughout the pandemic.
We need to make sure that for those whom the struggle is too hard…and for whom the risks are too great…they are supported.
This government will not sit idly by whilst there is a risk that some in our country might be set so far back… they might never recover.
This is simply unacceptable. I will never allow that happen.
And I want to reassure everybody – we will get through this.
We have the tools and the determination we need to combat and reduce inflation.
We will make sure the most vulnerable and the least well off get the support they need at this time of difficulty.
And we will turn this moment of difficulty into a springboard for economic renewal and growth.
With more jobs, higher skills, greater investment – our plan for a stronger economy.
Madam Deputy Speaker, Before I turn to the details of our plan, let me put into context for the House, the challenge we face.
This country is now experiencing the highest rate of inflation we have seen for forty years.
The Bank of England expect inflation to average around 9% this year.
Our exposure to global shocks continues to explain most of the inflation above the 2% target.
Supply chain disruption as the world reopened from Covid…
…combined with Russia’s invasion of Ukraine…
…and potentially exacerbated by recent lockdowns in China…
…are all contributing to significant price increases for goods and energy.
However, over the course of this year, the situation has evolved and has become more serious.
There are areas of particular concern.
Even excluding energy and food, core inflation has become broader based and elevated.
Of the basket of goods and services we use to measure inflation, a record proportion are seeing above average price increases.
Also, we are acutely exposed to the European energy price shock and, like the US, we have a tight labour market.
Make no mistake – the lowest unemployment in almost 50 years, just months after averting a jobs crisis during the pandemic, is good news.
But combined with the shock to European energy prices, it does contribute to the UK’s relatively high rate of inflation.
And lastly, as the Bank have noted, longer-term inflation expectations have risen above their historical averages, by more than they are in the US and Europe.
We cannot and must not allow short term inflationary pressures to lead people to expect that high inflation will continue over the long term.
Because Madam Deputy Speaker
We can get inflation under control.
It is not some abstract force outside our grasp.
It may take time, but we have the tools we need and the resolve it will take to reduce inflation.
Madam Deputy Speaker,
We have three specific tools available to combat and reduce inflation – and we are using them all.
Independent monetary policy. Fiscal responsibility. And supply side activism.
First, our primary tool is a strong, independent monetary policy.
Since control of monetary policy was taken out of the hands of politicians 25 years ago, inflation has averaged precisely 2%.
It is right the Bank of England are independent.
And I know the Governor and his team will take decisive action to get inflation back on target and ensure inflation expectations remain firmly anchored.
Second, we need responsible fiscal policy.
That means providing fiscal support where required but not making the situation unnecessarily worse…causing inflation, interest, and mortgage rates to go up further than they otherwise would.
Excessively adding fiscal stimulus into a supply constrained economy…
…especially one in which households and businesses have built up over £300 billion of excess savings…
…risks being counterproductive and increasing inflationary pressures.
In other words, fiscal support should be timely, targeted, and temporary.
Timely, because we need to help people when the shock is at its worst.
Targeted, because unconstrained stimulus will make the problem worse.
And temporary, because if we do not meet our fiscal rules, and ensure the public finances are resilient in the longer run…
…we create even greater risks on inflation, interest rates, and the trend rate of economic growth.
And third, we are taking an activist approach to supply side reforms.
This will increase our productive capacity, ease inflationary pressures, and raise our long-term growth potential.
The PM’s energy security strategy will, over time, reduce bills by increasing energy supply and improving energy efficiency.
The W&P Secretary is moving half a million jobseekers off welfare and into work…
…and doing more to support older people back into the jobs market.
The Home Secretary is making our visa regime for high-skilled migrants one of the most competitive in the world.
And, in the autumn, we will bring forward tax cuts and reforms to encourage businesses to invest more, train more, and innovate more – the path to higher growth.
So, independent monetary policy.
Fiscal responsibility.
Supply side reform.
The country should have confidence, that using these three tools…
…we will combat inflation – and reduce it over time.
But of course, we know that households are being hit hard, right now.
So today, Madam Deputy Speaker, we will provide significant support to the British people.
But as I have said, a critical part of how we are dealing with inflation is responsible fiscal policy.
What this means in practical terms is that as we support people more, we need to think about the fairest way to fund as much of that cost as possible.
The oil and gas sector is making extraordinary profits.
Not as the result of recent changes to risk taking or innovation or efficiency.
But as the result of surging global commodity prices – driven in part by Russia’s war.
And for that reason, I am sympathetic to the argument to tax those profits fairly.
But as ever, there is a sensible middle ground.
We should not be ideological about this…we should be pragmatic.
It is possible to both tax extraordinary profits fairly…and incentivise investment.
And so, like previous governments, including Conservative ones – we will introduce a temporary, targeted, Energy Profits Levy.
But, we have built into the new Levy a new Investment Allowance, similar to the super-deduction…
…that means companies will have a new and significant incentive to reinvest their profits.
The new Levy will be charged on profits of oil and gas companies at a rate of 25%.
It will be temporary, and when oil and gas prices return to historically more normal levels, the Levy will be phased out – and with a sunset clause written into the legislation.
And, crucially, with our new investment allowance, we are nearly doubling the overall investment relief for oil and gas companies.
This means that, for every £1 a company invests, they’ll get back 90 per cent in tax relief.
So the more a company invests, the less tax they will pay.
And we understand that certain parts of the electricity generation sector are also making extraordinary profits.
The reason for this is the way our market works.
The price electricity generators are paid is linked not to the costs they incur in providing that electricity…but rather to the price of natural gas – which is extraordinarily high right now.
Other countries like France, Italy, Spain and Greece have already taken measures to correct this.
As set out in the Energy Security Strategy, we are consulting with the power generation sector and investors…
…to drive forward energy market reforms and ensure that the price paid for electricity is more reflective of the costs of production.
Those reforms will take time to implement.
So, in the meantime, we are urgently evaluating the scale of these extraordinary profits…and the appropriate steps to take.
So, Madam Deputy Speaker,
Our Energy Profits Levy will encourage investment, not deter it.
It raises around £5bn revenue over the next year so that we can help families with the cost of living.
And it avoids having to increase our debt burden further.
Because there is nothing noble in burdening future generations with ever more debt to pay…
…because politicians of the day were too weak to make the tough decisions.
Madam Deputy Speaker,
I know the whole House will agree we have a responsibility to help those who…
…through no fault of their own…
…are paying the highest price for the inflation we face.
To help with the cost of living, we are going to provide significant, targeted support to millions of the most vulnerable people in our society:
Those on the lowest incomes, pensioners, and disabled people.
First, people on the lowest incomes.
Over eight million households already have incomes low enough for the state to be supporting their cost of living through the welfare system.
They could be temporarily unemployed and looking for work.
Unable to work because of long-term sickness or disability.
Or on low pay and using benefits to top up their wages.
Right now, they face incredibly difficult choices.
So, I can announce today we will send, directly to around eight million of the lowest income households, a one-off Cost of Living Payment of £650.
Support worth over £5bn to give vulnerable people certainty that we are standing by them at this challenging time.
DWP will make the payment in two lump sums – the first from July, the second in autumn, with payments from HMRC for those on Tax Credits, following shortly after.
There is no need for people to fill out complicated forms or bureaucracy – we will send the payment straight into their bank accounts.
Our policy will benefit over eight million households in receipt of means-tested benefits, from July.
Uprating, in that time frame, could only be done for those on Universal Credit.
And our policy will provide a larger average payment this year of £650.
Whereas uprating the same benefits by 9% would only be worth, on average, £530.
There are two further groups who will need targeted extra support.
Many pensioners are disproportionately impacted by higher energy costs.
They can’t always increase their incomes through work.
And, because they spend more time at home, and are more vulnerable, they often need to keep the heating on for longer.
And we estimate many people who are eligible for Pension Credit are not currently claiming it…
…which means there will be many vulnerable pensioners not receiving means-tested benefits.
So, I can announce today that, from the autumn, we will send over eight million pensioner households who receive the Winter Fuel Payment – an extra, one-off Pensioner Cost of Living Payment of £300.
Disabled people also face extra costs in their day-to-day lives – like having energy-intensive equipment around the home or workplace.
So, to help the 6 million people who receive non-means tested disability benefits, we will send them, from September…
…an extra, one-off Disability Cost of Living Payment, worth £150.
Many disabled people will also receive the payment of £650 I have already announced, taking their total cost of living payments to £800.
And I can reassure the House that next year, subject to the Secretary of State’s review, benefits will be uprated by this September’s CPI…
…which, on current forecasts, is likely to be significantly higher than the forecast inflation rate for next year.
Similarly, the triple lock will apply for the state pension.
Of course, we recognise the risk that, as with any policy, there may be small numbers of people who fall between the cracks.
For example, it is not possible right now for DWP or HMRC to identify people on Housing Benefit who are not also claiming other benefits.
So, to support them and others, we will extend the Household Support Fund, delivered by Local Authorities, by £500m from October.
This is a significant set of interventions to support the most vulnerable in our country.
We will legislate to deliver this support on the same terms in every part of the United Kingdom – including Northern Ireland.
And, taken together, our direct cash payments, will help one third of all UK households with the cost of living, support worth over £9bn.
So, Madam Deputy Speaker,
We are meeting our responsibility to provide the most help to those on the lowest incomes.
I believe that is fair and I’m confident the House would agree.
But there are many other families who do not require state support in normal times.
They are also facing challenging times.
Is it fair to leave them unsupported?
The answer must surely be no.
While it is impossible for any government to solve every problem, we can and will ease the burden as we help the entire country through the worst of this crisis.
So, we will provide more support with the rising cost of energy – and that support will be universal.
Earlier this year, we announced £9bn to help with the cost of energy.
Including a Council Tax rebate of £150 for tens of millions of households.
And we plan to provide all households with £200 off their energy bills from October, with the cost of that repaid over the following five years.
Since then, the outlook for energy prices has changed.
I’ve heard people’s concerns about the impact of these repayments on future bills.
So I have decided that those repayments will be cancelled.
So, for the avoidance of doubt, this support is unambiguously a grant.
And furthermore, I have decided that the £200 of support for household energy bills will be doubled to £400 for everyone.
We’re on the side of hard-working families, with £6bn of financial support.
So, Madam Deputy Speaker,
To summarise:
Our strategy is to combat and reduce inflation over time through independent monetary policy, fiscal responsibility, and supply side activism.
We are raising emergency funds to help millions of the most vulnerable families who are struggling right now.
And all households will benefit from universal support for energy bills of £400 – with not a penny to repay.
In total, the measures I’ve announced today provide support worth £15bn.
Combined with the plans we’ve already announced…that means we are supporting families with the cost of living to the tune of £37bn or 1.5% of GDP.
That’s higher or similar to countries like France, Germany, and Italy.
And I’m proud to say that around three quarters of the total support will go to vulnerable households.
As a result of the measures we’ve announced today, and the action we’ve already taken this year:
The vast majority of households will receive £550.
Pensioners will receive £850.
And almost all of the eight million most vulnerable households in the country will, in total, receive support of at least £1,200.
Let me put this into context.
The House will have noted the news from Ofgem earlier this week.
They currently expect the energy price cap to rise in October to £2,800.
That’s an average increase in people’s bills this year of just under £1,200.
The same amount our policies will provide for the most vulnerable this year.
I know there are other pressures.
I am not trying to claim we have solved the entire problem for everyone.
No government could.
But I hope that when people hear the significant steps we are taking…
…the millions we are helping…
…they will feel some of the burden eased, some of the pressures lifted.
And they will know, this Government is standing by them.
And Madam Deputy Speaker in conclusion,
Supporting people with the cost of living is only one part of our plan for a stronger economy…
…A plan that is creating more jobs…
…Cutting taxes for working people…
…Reducing our borrowing and debt…
…Driving businesses to invest and innovate more…
…unleashing a skills revolution…
…Seizing the benefits of Brexit…
…And levelling up growth in all parts of the United Kingdom.
The British people can trust this government because we have a plan for a stronger economy and I commend this Statement to the House.
Government blocks evidence session with Cabinet Secretary
The Government have blocked the Cabinet Secretary, Simon Case, and Government ethics chief, Darren Tierney, from appearing before the Public Administration and Constitutional Affairs Committee on Tuesday 24 May.
The session was confirmed several weeks ago as part of the Committee’s inquiry into the propriety of governance in light of Greensill. It was due to discuss the management of conflicts of interest and unregulated appointments in the Civil Service, the Downing Street parties and the recent announcement on the Government’s intention to reduce the size of the Civil Service by almost 100,000 jobs.
The Committee has been told by officials that ministerial approval for the Cabinet Secretary to give evidence on Tuesday has been pulled. The session will not take place on 24 May and has been rescheduled for the 28 June.
Chair of PACAC William Wragg MP said: “The session with the Cabinet Secretary was an important one considering the number of propriety and ethics issues on the agenda. We had also hoped to get clarity on the Government’s plans for civil service reform, public scrutiny of which was much needed after they were briefed to the press last weekend.
“The intervention to pull the session at such short notice evades timely parliamentary scrutiny of these plans and puts government transparency in a poor light.”
Tens of thousands of British Sign Language (BSL) users are anticipating a momentous day today as a Bill that will see BSL become a recognised language in Britain is expected to clear its final hurdle on the way to becoming law.
The British Sign Language Bill, a Private Member’s Bill introduced by Rosie Cooper MP last year and backed by the government, will receive its third reading in the House of Lords today before it passes into law following Royal Assent.
The BSL Act will recognise BSL as a language of England, Wales and Scotland in its own right. It is also supported by a duty on the Secretary of State for the Department for Work and Pensions (DWP) to regularly report on what each relevant government department has done to promote or facilitate the use of British Sign Language in its communications with the public.
The Act further places a requirement on the DWP Secretary of State to issue guidance to departments on the promotion and facilitation of BSL. The guidance will be developed together with D/deaf BSL signers.
Minister for Disabled People, Health and Work Chloe Smith MP said: “Today is a momentous day and I truly hope it will transform the lives of D/deaf people across the country.
“The BSL Bill will help remove barriers faced by the D/deaf community in daily life and is a further welcome step towards a more inclusive and accessible society.
“I am so grateful to the efforts of Rosie Cooper MP and the wonderful campaigners who have brought the BSL Bill to the point of passing into law and I’m proud to have played a small part in its journey.”
Rosie Cooper MP said: “At long last, the Deaf community will be able to say that their language is legally recognised.
“Working across party lines and with the Deaf community, I really believe we have made history by creating a mechanism for Deaf people to achieve equal access to public services. Their voices will be heard loud and clear and there will be no excuse for failing to respect BSL as a language.
“The hard work doesn’t stop here however, but the door is now open for the Deaf community make real progress fixing the injustices that they continue to face.”
David Buxton, Chair of the British Deaf Association, said: “We are extremely pleased to see the UK Parliament finally vote to recognise British Sign Language as a language of Great Britain in law today, after 19 long years of campaigning.
“Today is a historic day for the Deaf community in the UK, and an inspiration for other countries around the world where the national sign language has not yet been recognised in law.
“The British Deaf Association looks forward to working hand in hand with the government and civil servants to implement and monitor the progress of the BSL Act 2022.
“While today is a day to celebrate, we are aware that this marks the first step on a long path towards providing truly equal access to public services, information and opportunities for Deaf BSL users in Great Britain.”
Mark Atkinson, Chief Executive at RNID, said: “RNID and our supporters join with the Deaf community today to celebrate this historic moment as British Sign Language passes the final hurdle before it is legally recognised in England, Wales and Scotland.
“We’re immensely proud to have worked alongside other deaf organisations and parliamentarians to support this campaign. We look forward to the BSL Bill getting Royal Assent soon and to working with the government to make sure the BSL Act makes a real difference to the lives of Deaf people in the UK.”
The Third Reading of the BSL Bill takes place today in the House of Lords and following this it will receive Royal Assent.
The BSL Bill was first introduced on 16 June 2021 and passed through the House of Commons on 17 March 2022, receiving unanimous cross-party support.
The Minister for Disabled People, Health and Work has worked closely with Labour MP Rosie Cooper and D/deaf people’s charities and organisations, such as the Royal National Institute for Deaf People (RNID) and the British Deaf Association (BDA), to ensure the Bill effectively meets the needs of those who will benefit most.
Figures from the British Deaf Association suggest that 151,000 people use BSL in the UK, 87,000 of whom are D/deaf.
