Markus Andrews

Britain is signing its first trade “memorandum” with Indiana, in an apparent signal that a post-Brexit deal with the entire United States is out of reach.Ministers are hailing the tie-up with the 17th-largest state by population size as “a major milestone” from which businesses will “start reaping the rewards”.Talks are underway with around 20 other states and the Department for International Trade expects around eight “memorandum of understandings” to be agreed soon.However, the announcement did not include any concrete changes that would flow from the first results of what the department calls its “state level strategy”.It would “look to improve procurement processes and strengthen academic and research ties” and “support our talented professionals with provisions on diversity”, the department said.The memorandum would be “paving the way for professional qualifications to be recognised”, a media release said.The new strategy is being pursued after Joe Biden made it clear that a US-UK free trade agreement is off the table, even before the latest bust-up over London’s plans to tear up the Northern Ireland protocol.It was promised as a major prize from Brexit, campaigners lashing out at Barack Obama when he warned – in 2016 – that a deal would take a decade to achieve.Meanwhile, the UK is losing 3.5 per cent of its GDP from leaving the EU single market and customs union, the Bank of England warned this month.Anne-Marie Trevelyan, the trade secretary, said: “Our ambitious agreement with Indiana will help deliver value to UK businesses and support our areas of shared interest, such as levelling up.“This is Global Britain in action, making innovative deals on the world stage – and will help UK companies grow faster, innovate more and support jobs and economic growth.”But the energy company bp America was more cautious in its description of what it called “the strengthening relationship between the United Kingdom and Indiana”.Nick Thomas-Symonds, Labour’s shadow trade secretary, said the government was on course for “another broken promise”, having promised a US trade deal by the end of 2022.“Ministers should also be honest with exporters – and the British public – that state-level deals are no substitute for the completed US-UK trade deal they were promised.”Naomi Smith, chief executive of the internationalist campaign group Best for Britain, called it “a feeble consolation prize for the Brexiter’s most fabled US trade deal, which is now indefinitely on ice”.And Sarah Olney, the Liberal Democrat trade spokesperson, said: “Boris Johnson can’t pull the wool over anyone’s eyes – being left to negotiate with one state at a time with his tail between his legs.” More

A popular Conservative Party website has run prominent Labour adverts urging the Tories to drop Boris Johnson after the Partygate scandal. Readers of Conservative Home , a news and analysis blog popular with grassroots members, were on Thursday met with a wall of advertisements attacking the prime minister following the damning Sue Gray report which detailed parties at Downing Street during a nationwide lockdown. The advert featured a medic wearing protective eyeware and a mask, and asks: “Look into her eyes and tell her you still support Boris Johnson.”It is unclear if the editors of Conservative Home were aware in advance the adverts would be running, but the site’s chief executive, Mark Wallace, appeared unfazed.He tweeted: “Even the @UKLabour Party agrees that advertising on @ConHome is the best way to reach the most influential political audiences. “Adverts (from all sorts of clients) help to make our top-flight independent journalism possible.”The adverts led some to suggest that Labour was effectively funding its political opponents, although Mr Wallace noted his site was independent of the Conservative Party. The Labour stunt comes as the backlash continued on Thursday against Mr Johnson following the damaging revelations of the Partygate controversy.Four Tories have gone public with their demands that Mr Johnson resign since the publication of the report which laid bare the extent of raucous behaviour in No 10 at a time when millions were forced to cut off contact with loved ones during coronavirus lockdowns.Former minister Stephen Hammond and fellow MPs David Simmonds and John Baron spoke out on Thursday, following Julian Sturdy who called for Mr Johnson’s exit on Wednesday.Mr Hammond said he “cannot and will not defend the indefensible” and indicated he had sent a letter of no confidence to the Tory backbench 1922 Committee.“All I can do as a backbencher is speak out and submit a letter,” he said.Conservative Home is independent of Conservative Party but describes itself as championing “the interests of grassroots Tory members” and says that it argues for a “broad conservatism”.The Independent has contacted Labour for further comment. More

Rishi Sunak has said the energy market must be “urgently” reformed to ensure households are not hit by huge price rises in the future, though he warned any changes would take time to be implemented. The chancellor was asked by Money Saving Expert’s Martin Lewis why the UK doesn’t adopt a similar policy to other European countries in limiting the energy price cap rise.In France, for example, the energy price cap for 2022 was lifted by just 4 per cent. In the UK, the energy price cap increased by 12 per cent in October 2021 and 54 per cent in April 2022.The April increase is equivalent to £700 for “typical” levels of dual fuel consumption paid by direct debit, and consumers are braced for the energy price cap to rise by more than £800 to £2,800 in October as the squeeze on living standards continues.Mr Lewis suggested Mr Sunak could regulate to stop energy companies imposing astronomical increases in bills, by imposing a limit on how much energy bills can rise.The chancellor replied: “We do have an independent regulator who does exactly that, and we do have a price cap. Many other countries didn’t have a price cap.”Mr Sunak went on to committ to reforming the energy market, acknowledging it was not “working as well as we want it to work”.He said: “With regard to electricity generation, we have said that we will reform the market in a similar way to what some of the other European countries have done. That will take a bit of time which is why I said today I am urgently looking at the best way to do that in advance of reforms happening.” He added: “I am actually sympathetic to the idea that that market isn’t working as well as we want it to work. These people providing electricity are getting to sell that electricity at the very high prices of natural gas, not the cost of what it costs them to produce the electricity. “That isn’t ideal, we want to see how we can fix that. That’s what some other countries have done.”Earlier on Thursday during his cost-of-living statement in the Commons, Mr Sunak said: “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.” More

Rishi Sunak has been accused of risking Britain’s reputation as a climate leader by announcing tax relief measures that will encourage energy firms to invest in fossil fuel extraction during a climate emergency.Climate groups and opposition politicians rebuked the chancellor for incentivising oil and gas extraction when climate scientists, the United Nations and the International Energy Agency have made it clear that the world needs to stop new investment in fossil fuels.“It’s bone-headedly stupid, even by this government’s low standards, not only to allow but in fact to incentivise the production of new climate-wrecking fossil fuels, rather than keeping them firmly in the ground where they belong,” Green MP Caroline Lucas told The Independent.“This measure will not only make absolutely no difference to families’ soaring energy bills, [but] any new fossil fuel production acts as a wrecking ball to our net zero climate targets, and makes us an embarrassment on the world stage, particularly while we still [retain] the Cop26 presidency.”Rishi Sunak announces £15bn package for cost of living crisisThe incentive came as part of a package of announcements to tackle the cost of living crisis in Britain, which included a temporary 25 per cent windfall tax on the profits of oil and gas companies to help support struggling households.In order to ensure that companies are not deterred from investment by the new levy, Mr Sunak announced that those that invest in oil and gas extraction will be entitled to hefty tax relief on that spending.“The UK government’s position breaks the pledge it made at the climate talks last year to phase out subsidies for oil and gas projects,” Tessa Khan, director of Uplift, a group that campaigns for a just and fossil-fuel-free UK, told The Independent.“It is also completely contradictory when it comes to both heading off the climate crisis and tackling the cost of living crisis,” she said. “Fossil fuels are at the heart of both, and yet the chancellor is doubling down and encouraging companies to extract more.”Analysts and oil executives suggested the measure wouldn’t fundamentally change energy companies’ investment strategies, as the investment tax break, along with the tax on their profits, is due to expire in 2025.“That’s quite a short time for companies looking at investment in the North Sea,” said Sam Alvis, head of economy at Green Alliance.An energy company executive who spoke to The Independent on the condition of anonymity said the announcement wouldn’t change the course on net zero in a big way because the firm’s investment horizons are mostly five or 10 years.Nevertheless, the executive described the move by the government as “messy” and “confusing”.“We are trying to sell a message to our shareholders – that investment and dividends will have to be shaped by, focused on, ensuring a net-zero-compatible future,” the executive said.“This muddies the waters, with a mixed message on where investment should be focused from the government.”Companies can get tax relief for investment in renewables through the super-deduction mechanism. This gives businesses tax breaks on investment in physical capital.However, the mechanism can also be used to invest in fossil fuel infrastructure, according to Mr Alvis.Ami McCarthy, political campaigner for Greenpeace UK, described the tax break announced on Thursday as “utter stupidity”. “The Chancellor is either in the pocket of the oil and gas industry or is simply happy to see the world burn,” she said.Ed Davey, leader of the Liberal Democrats, said that in order to reach net zero, the country needs to go “hell for leather for renewable power”.“We should be cracking down on new exploration because it’s not needed,” he said. “If you were serious about getting to net zero, if you were serious about protecting us from climate change, if you were serious about making sure our country was independent of Russia and other people, you would go far more into renewables. So why aren’t they doing that?”A Shell spokesperson said that the company had “consistently emphasised” the importance of a stable environment for long-term investment. “The chancellor’s proposed tax relief on investments in Britain’s energy future is a critical principle in the new levy,” they said.The spokesperson confirmed that Shell still intends 75 per cent of its planned £20-25bn investment in the UK energy system to be in low- and zero-carbon products and services, including offshore wind, hydrogen, carbon capture utilisation and storage, and electric mobility.A spokesperson for BP said: “As we have said before, we see many opportunities to invest in the UK, into energy security for today, and into energy transition for tomorrow.“Naturally we will now need to look at the impact of both the new levy and the tax relief on our North Sea investment plans.”The Treasury declined to comment. More

Rishi Sunak has been accused of costing taxpayers £6bn by dithering over his windfall tax U-turn, after he announced a levy on oil and gas companies to help pay for a £15bn cost-of-living support package.The announcement also sparked fears that the sudden injection of cash would drive up inflation and interest rates.And environmentalists accused the chancellor of offering state subsidies for climate change, after he announced new tax breaks to ensure the £5bn levy does not deter investment in North Sea oil and gas extraction.Mr Sunak finally bowed to months of pressure on Thursday to impose a 25 per cent tax on the “extraordinary profits” of energy giants, part-funding assistance worth £1,200 a year for around 8 million of the country’s poorest households.The move was welcomed as a “breathing space” for families faced with a choice between heating and eating, as prices for energy and food soar.But the levy applies only from 26 May, meaning that the Treasury will receive no extra income from the additional earnings resulting from recent price spikes, with BP and Shell reporting combined “super-profits” of £11.5bn in the last quarter of 2021 and the first three months of 2022 alone.The Treasury confirmed that borrowing would be increased to cover the remaining £10bn of the cost of the package.Mr Sunak’s package of help will provide one-off payments of £650 to 8.3 million households in receipt of means-tested benefits, £300 to 8 million pensioner households, and £150 each to 6 million individuals receiving disability benefits. In some cases the total will reach £1,650.Cost of living: how to get helpThe cost of living crisis has touched every corner of the UK, pushing families to the brink with rising food and fuel prices. The Independent has asked experts to explain small ways you can stretch your money, including managing debt and obtaining items for free. – If you need to access a food bank, find your local council’s website and then use the local authority’s site to locate your nearest centre. – The Trussell Trust, which runs many foodbanks, has a similar tool. – Citizens Advice provides free help to people in need. The organisation can help you find grants or benefits, or advise on rent, debt and budgeting. – If you are experiencing feelings of distress and isolation, or are struggling to cope, The Samaritans offers support; you can speak to someone for free over the phone, in confidence, on 116 123 (UK and ROI), email [email protected], or visit the Samaritans website to find details of your nearest branch.In what was effectively an emergency Budget, delivered a day after the publication of Sue Gray’s Partygate report, he also doubled the planned rebate on fuel bills from £200 to £400, and converted the payment from a loan to a grant.The cash will be deducted from the energy bills of every household for six months from October, meaning wealthy households will benefit as well as poorer ones – and those with more than one home will receive multiple payments.The Household Support Fund, which allows local councils to offer discretionary help, was boosted by £500m to £1.5bn and extended from October until March 2023.Mr Sunak said the money was targeted at “those who are paying the highest price for the high inflation we face”, adding: “I said we would stand by people, and that is what this support does today.”But shadow chancellor Rachel Reeves said Mr Sunak had spent five months dismissing Labour’s calls for a windfall tax, with Boris Johnson ordering Tory MPs to vote it down as recently as last week.Mr Sunak’s “dither and delay” had cost consumers £53m for every day the chancellor refused to act, she said.“For months, it has been clear that more was necessary to get people’s bills down,” Ms Reeves told the Commons. “So what took this government so long?”And Liberal Democrat Treasury spokesperson Christine Jardine branded the move a “levy lite”, pointing out that it would have raised £11bn if it had been introduced when her party first proposed it last October.Meanwhile, it emerged that the energy profits levy – a temporary measure that raises tax on North Sea profits from 40 to 65 per cent – could remain in place until the start of 2026. The Treasury said it would be phased out earlier only “if oil and gas prices return to historically more normal levels”.And ministers are to consult with the electricity generation industry on a similar scheme, in an effort to bring consumer prices more in line with the true cost of production.The chief economist at the Confederation of British Industry, Rain Newton-Smith, warned that the levy would damage investment as well as the government’s net zero ambitions.“It sends the wrong signal to the whole sector, at the wrong time, against a backdrop of rising business taxation elsewhere,” she said.And there was discontent on the Tory back benches, with John Baron calling for a hike in the minimum wage to provide longer-term assistance, and Richard Drax and Edward Leigh saying the chancellor should have given a boost to people’s wallets by cutting tax.But the Resolution Foundation, a think tank that seeks to improve living standards for those on low and middle incomes, said that Mr Sunak’s package was “a good attempt to target those with higher energy bills”, while warning that it was less generous to larger families with many children.The chief executive of the Child Poverty Action Group, Alison Garnham, said it was “a relief that government is finally waking up to the fact that families need more support”.But she said: “With almost 4 million children living in poverty, the chancellor is kidding himself if he thinks that the problem is temporary, or that the package he offered today will stop people finding themselves so far back that they never recover.”And there was anger that unpaid carers in receipt of Carer’s Allowance were excluded from the additional support, as well as fears that the one-off payments will have to be repeated within months unless inflationary pressures abate.The head of the Institute for Public Policy Research think tank’s Centre for Economic Justice, Dr George Dibb, said Mr Sunak’s unwillingness to provide long-term solutions to households’ financial pressures could force him to return with another package as early as January.“Everything announced today is a sticking plaster,” said Dr Dibb. “With a government that lurches from crisis to crisis, and energy prices remaining high into 2023, vulnerable families and businesses will be looking to the chancellor to come back to the Commons in the new year. A better solution would be supporting long-term confidence in the British economy with a more permanent fix.” More

Rory Stewart has said the entire Downing Street operation is now focused solely on trying to keep “monstrous ego” Boris Johnson in power, as he warned about the erosion of trust in British politics and compared the current leadership to that of convicted fraudster and former Italian prime minister, Silvio Berlusconi. The former Conservative cabinet minister joined a chorus of voices criticising the prime minister and his No 10 team after the damning Sue Gray report laid bare the extent of the lockdown-breaking behaviour at the heart of government. Mr Stewart – who was defeated by Mr Johnson in the 2019 Tory party leadership race – said: “They won’t make basic decisions, they won’t cut, for example, VAT on fuel, which is crucial to people’s lives. And the reason they can’t make decisions is they are fighting, day by day, these headlines. “The whole of Downing Street is just about one thing, which is the survival of the prime minister. They are sacrificing everything, the country, the party, their careers, to try to keep this monstrous ego floating around in Downing Street.”Ms Gray’s report detailed events at which officials sang karaoke, drank so much they were sick, became involved in altercations and abused security and cleaning staff.Mr Stewart said that the slow drip of embarrassing stories for the prime minister and his administration had the cumulative effect of eroding trust in politics. “You end up feeling like an aggrieved partner or wife,” he said. “Everytime he is like ‘it’s just one small thing, it’s just one party, it’s one cake, one leaving party, one prorogation of parliament, one lobbying scandal, one wallpaper problem, but they mount up to make our country feels like Berlusconi’s Italy.”Mr Stewart is no ally of the prime minister. The former cabinet minister – who was expelled from the Conservative parliamentary party – previously said that Mr Johnson was an “amoral character” and “the most accomplished liar in public life”.He said in January, when allegations of No 10 parties were swirling, that the prime minister “lies … he’s disorganised … he betrays almost every personal commitment that he has”.He added: “He was manifestly unsuited to be prime minister from the beginning, so it’s very, very disturbing that a great country like Britain should have chosen somebody so unsuitable for the role.” More

Finance expert Martin Lewis has welcomed the government’s new package of support measures to tackle the cost of living crisis.Rishi Sunak laid bare a £15 billion deal which specifically targeted those in the lowest income households, pensioners and people with disabilities.Mr Lewis has been critical of the government’s fiscal response throughout the Covid pandemic and cost of living crisis, yet admitted he was “breathing a sigh of relief” after the announcement in the House of Commons.He said it was “very close” to what he’s asked the chancellor for in a conversation on Monday in which he called for those who “have to choose between freezing and starving” be prioritised.“I have to say this looks to be a relatively generous package from the government. I think they have listened, I would have liked to see it earlier but better late than never,” Mr Lewis said.The long-awaited and much-needed package will see eight millions of the lowest-income households – those on Universal Credit, Tax Credits, Pension Credits and legacy tax – receive a payment of £650 that they will not need to repay.In addition to this, separate one-off payments of £300 will go to pensioners, and £150 to those receiving disability benefits – a move Mr Lewis was “very pleased” to see after pushing for extra support for those with disabilities.Rishi Sunak announces £15bn package for cost of living crisisThe government has also decided to revise the energy bills discount – a £200 loan to ease pressure of energy bills yet needed to be repaid – for a grant double the value.All households, no matter the income, will receive a £400 discount in October which will not be required to pay back – a decision that Mr Lewis welcomed.The moneysupermarket.com founder said: “When I spoke to [Mr Sunak], I said we had to prioritise those who had to choose between freezing and starving – and I think that’s absolutely right.“When you’re talking about £1500-a-year bill increase, for those people, it’s an impact on lives, but for others it’s substantial impact on lifestyle.“The loan-not-loan is gone, it’s exactly what I suggested, so I’m quite happy with that. It’s gone and it’s been replaced with a straight grant.”The timing of Mr Sunak’s announcement had raised eyebrows with many accusing the chancellor of attempting to detract attention from the damning Sue Gray report into alleged parties in Downing Street throughout the Covid pandemic.Yet Mr Lewis argued the publication of the findings actually brought the package forward as, per previous conversations, the announcements were likely to have come in July.“It’s not a case the Sue Gray report has delayed this, if anything the Sue Gray report has brought this earlier,” he said.Mr Lewis is set to interview the chancellor on Thursday evening  following his announcement, where he will put forward questions to the chancellor live on Twitter.It will be live-streamed on MoneySavingExpert.com from 5.15pm, and will also be available live via @MartinSLewis and @MoneySavingExp on Twitter, Martin Lewis and MoneySavingExpert on Facebook, and MoneySavingExpert on YouTube. More

Just over 24 hours after Sue Gray’s long-awaited Partygate report dropped in full, chancellor Rishi Sunak unveiled plans for millions of households to receive a £400 discount on their energy bills.While the government’s plan to tackle the cost of living crisis might dominate the headlines for a moment and move the focus away from lockdown law-breaking in Downing Street, the fallout from Partygate continues. The inquiry by the committee of privileges is bound to keep the issue alive, according to John Rentoul, The Independent’s chief political commentator, who held an ‘Ask Me Anything’ on Sue Gray’s report and what happens next on Thursday. He writes: “The committee has a Conservative majority, but all its members will want to demonstrate their independence and rigour – and they will no doubt make the most of their chance to question Johnson himself.“Its deliberations are likely to continue into the autumn, so although it may seem that the prime minister “has got away with it” (in the words of his former principal private secretary about the “bring your own booze” event in the Downing Street garden), the scandal still has some distance to run.”Here are eight questions that came from Independent readers during an ‘Ask Me Anything’ – and the answers from John.Everyone knows Johnson is guilty of misleading parliament, but at what point can final judgement be officially concluded in order for the head of state to dismiss the rogue PM?That’s a red flag phrase, “everyone knows”! The PM admits he misled parliament, by saying the rules were followed at all times, but protests that he believed that to be true at the time. A lot of people are of the opinion that he knowingly misled the Commons, but proving that is hard, and Sue Gray’s report didn’t do it. What it does not contain is any evidence that he was warned at the time that an event might be against the rules. There is evidence that some staff were worried that some of the events might look bad (“somewhat of a comms risk” – communications meaning public relations), but those discussions were also fitfully worried about abiding by the rules on social distancing. But I don’t think what seems obvious in hindsight was as obvious to people at the time.When will Boris Johnson actually go? Surely we don’t have to wait for the next general election.It would be foolish to predict, but it is kind of my job, so I would say he has a 50-50 chance of making it to the election. I don’t think Conservative MPs are ready to get rid of him yet, mainly because it is so unclear who would succeed him. A lot of damage has been done, and there are enough MPs ready to send letters demanding a vote of confidence, but I think it will take another big mistake by the PM to trigger it.Why did we only get to see nine of the photos submitted to Sue Gray? Will we see the others?That is a good question. I assume that it is because they do not feature the PM or other members of what Sue Gray calls the “senior management” – if everyone in a photo has to be blurred out, there’s not much point to it. I doubt if there is a more sinister explanation – if photos were suppressed for no good reason, they would be likely to be leaked.Is the main reason more Tory MP’s not called for Boris’s resignation because there is no obvious candidate for them to get behind to replace him? Is this because the Brexit split with the Tory party is still a very significant factor in who they decide to associate themselves with?I think that is right. The candidate favoured by the most vocal rebels is Jeremy Hunt, who ran a good campaign against Boris Johnson last time, but he is a Remainer. I think the party members would only accept a Leaver (they are still resentful of not being consulted over Theresa May’s election). I don’t think Tory MPs could manipulate their votes to present two Remainers to the party members for the final ballot, so whichever candidate voted Leave would be likely to win. At the moment that means Rishi Sunak, Penny Mordaunt or Nadhim Zahawi, which is why you can see Tory MPs hesitating.Do you think the report helps the parliamentary committee inquiry focus on specific issues or will it distract them?I think it helps the Conservatives on the committee of privileges, which is looking at the question of whether the PM knowingly misled parliament, to argue that he did not – for the reason I give below. I agree with James Forsyth of The Spectator that the worst the committee is likely to come up with for the PM is a criticism of him for not correcting the record earlier. Boris Johnson can live with that. It’ll be something else that gets him, I think.Who in Downing Street should make sure that civil servants conduct themselves correctly? That is the implied criticism in the Gray report: that the PM’s principal private secretary, his most important civil service assistant in day-to-day interactions in Downing Street, should have blocked some of the events, and should have intervened when they “developed as they did”. But the implication is really aimed at the person at the top: the PM himself knew that people were drinking at work and did nothing to set a lead. He gave speeches at a series of leaving events, for which he avoided being fined, presumably because the police accepted that this was part of his duty as a leader. But it should have been obvious that they were parties, and that they would “develop” into gatherings that were not “reasonably necessary for the purposes of work”. The cabinet secretary and the PM’s principal private secretary should have been responsible for making clear what standards were expected of civil servants and political appointees, but they would have had to be following the PM’s lead.Is the notion that he would not have known what was going on credible given he lived down the corridor?Not very. He didn’t attend the worst events, and indeed was at Chequers for some of them, but he knew enough about “Wine Time Fridays” and the rest to have a quiet word about reining it in.Is there any evidence that this booze culture in No10 predates covid or Johnson? How long has it been the norm for civil servants to “go on the lash” after work while still on the premises?”It was a dry old do in my day,” is what Anji Hunter said – she was Tony Blair’s assistant in his first term. Perhaps it has got worse gradually since then, but I suspect that there was a change of tone under the “Vote Leave” team led by Dominic Cummings, who seems to have confused team spirit with a raucous and rather laddish atmosphere.These questions and answers were part of an ‘Ask Me Anything’ hosted by John Rentoul at 1pm on Thursday 26 May. Some of the questions and answers have been edited for this article. You can read the full discussion in the comments section of the original article.Do you have any topics you’d like to see an expert host an ‘Ask Me Anything’ on? Let us know your suggestions in the comments below. More