Related video: Kwasi Kwarteng leaves Downing Street after being sacked as chancellor
Jeremy Hunt has warned he will be making “eye-watering” decisions after the economy shrank in what is feared to be the beginning of the longest recession on record.
The chancellor admitted there would be a “tough road ahead” after new figures revealed that the UK economy contracted by 0.2 per cent between July and September.
The chancellor said the government would be forced to take “extremely difficult decisions to restore confidence and economic stability”, but insisted that the “fundamental resilience of the British economy is cause for optimism in the long run.”
The Office for National Statistics (ONS) said that Gross Domestic Product (GDP) had fallen by 0.6 per cent in September, in part due to the Queen’s funeral. It could herald the beginning of a recession – which is defined as two quarters of shrinking GDP in a row.
Elsewhere, shadow chancellor Rachel Reeves referred to the latest GDP figures as “extremely worrying” and “another page of failure in the Tories’ record.”
Police issue no fines over Covid lockdown party at Tory HQ
The Metropolitan Police has decided against any action over a Covid lockdown party at Conservative Party headquarters.
Former Tory mayoral candidate Shaun Bailey – believed to be in line for a peerage – and Tory aides were seen posing together for a photo while London was under strict rules.
Several of them wore festive hats, and one was in a Christmas jumper as they raised glasses next to buffet food despite a ban on indoor socialising in December 2020.
But Scotland Yard said in a statement on Friday that officers found “insufficient evidence to disprove the version of events provided by attendees”.
A leaked group photograph of Mr Bailey’s party attendees
” height=”726″ width=”982″ layout=”responsive” class=”i-amphtml-layout-responsive i-amphtml-layout-size-defined” i-amphtml-layout=”responsive”> A leaked group photograph of Mr Bailey’s party attendees
Councils set to cut bus routes, libraries and streetlamps as austerity fears grow
Councils across England expect to make major cuts to bus routes, libraries, streetlamps and other vital services, a startling new survey has found as fears grow of a return to austerity.
The County Councils Network (CCN) survey also found that many councils are likely to reduce adult social care packages in a bid to stave over bankruptcy.
It comes as Rishi Sunak and his chancellor Jeremy Hunt prepare to announce spending cuts at next week’s Budget, as experts warn that local government, policing and transport could all be hit.
Adam Forrest has more:
Michael Gove ‘optimistic’ about resolution with Northern Ireland
Michael Gove said he was “optimistic” about finding a resolution to the row over post-Brexit arrangements in Northern Ireland, but played down any EU or Irish hopes that the controversial Northern Ireland Protocol Bill’s legislative passage would be paused.
Speaking at a press conference following the British-Irish Council summit, , the UK’s intergovernmental relations minister said: “The programme of legislation in the House of Commons is something that is above my paygrade. I’m not aware of any plans to pause consideration of the Protocol Bill.”
“The discussions that the prime minister had with all colleagues here about the importance of finding a safe landing zone I think were conducted in a cordial and constructive fashion and as the Northern Ireland Secretary said, he is a glass half-full man so we remain optimistic about the opportunities of reaching a resolution.”
Taoiseach says Anglo-Irish relations have ‘improved very significantly’
Irish Taoiseach Micheal Martin has said Anglo-Irish relations have “improved very significantly” and that he and Rishi Sunak want to get Northern Ireland Protocol issues resolved “in a harmonious way”.
He told a press conference at the British-Irish Council summit: “I think the relationship, certainly between the prime minister and I and both governments, has improved very significantly.
“And I think we’re both of a mind to – with our colleagues in the European Union – to get this issue resolved in a harmonious way.
“And I think the meeting over these two days has again reinforced the importance of all of us working together on shared challenges and shared issues.
“So therefore, the need to really get this issue resolved is important because we have other bigger issues also. Really significant economic challenges coming our way, we have the war in Ukraine.”
Sunak told to apologise after ex-minister’s ‘racial slur’ sparks diplomatic row
Rishi Sunak’s first overseas summit with other world leaders risks being undermined by a diplomatic row over a ‘crass racial slur’ used by a former Tory minister.
The Independent can reveal that the Japanese government complained about the comments, made in the House of Commons by ex-armed forces minister Mark Francois, and demanded a correction.
Shadow foreign secretary David Lammy has now called on Mr Sunak to apologise on behalf of his party before next week’s G20, where he is expected to come face to face with the Japanese prime minister.
Met to take no action against mayoral candidate Shaun Bailey
Scotland Yard is taking no action against former mayoral candidate Shaun Bailey and other attendees of a mid-lockdown gathering at the Conservative Party headquarters.
With Mr Bailey believed to be in line for a peerage, the Metropolitan Police said in a statement: “The investigation reviewed all the material thoroughly and, after careful consideration, it was determined that there was insufficient evidence to disprove the version of events provided by attendees to a standard that would meet the threshold required.
“As a result, a decision was made that no further action should be taken.”
Watch: Queen’s funeral bank holiday partially responsible for economic shrink, says ONS
Tory protocol bill could still prevent UK-EU deal, says diplomat
Joao Vale De Almeida, the outgoing EU ambassador to the UK, has said a deal can be done on the Northern Ireland Protocol very soon.
But he warned that if a compromise cannot be reached before the Tory government’s Northern Ireland Protocol Bill becomes law then “the situation changes considerably”.
“It’s an understatement to say that this is not helpful,” he told Times Radio. “We think it’s not lawful. It’s illegal in terms of the respect of an international treaty. We accepted to talk even if the bill goes through parliament, but one should be very clear if the bill becomes law, the situation changes considerably.”
He added: “I think in the coming weeks, coming months, with a certain degree of urgency that we can find a way out.”
Boris Johnson worst PM in my 40 years, says ex-Foreign Office chief
The former head of Britain’s diplomatic service said Boris Johnson was the worst prime minister he worked under during his almost 40 year-stint in government.
Sir Simon McDonald – who served under seven Tory and Labour prime ministers – said Mr Johnson was a “charismatic” but “chaotic” leader.
“[Margaret] Thatcher was the best and Johnson was the worst,” Lord McDonald told Sky News in a revealing interview.
Adam Forrest reports:
Soaring inflation hitting lower income households hardest, says Andrew Bailey
The governor of the Bank of England has said that high inflation is hitting lower income households the hardest because a bigger slice of their spending goes on “essentials of living”, like food and energy.
Andrew Bailey told reporters during a visit to the north of England that the current inflation is “particularly bad” and will take up to two years to control.
He said that it would be sensible for businesses to direct pay rises to lower paid workers in this environment.
Mr Bailey told Newcastle’s The Journal and Business Live: “Quite a few businesses are saying to me that they are doing more to direct their pay rises to the lower paid, and I think that is sensible.
“Inflation is bad for the least well-off generally and this inflation is particularly bad.
“The reason is that it’s concentrated on energy and food – these are the essentials of living.
“That means this inflation is hitting them harder, relatively speaking.”
