Markus Andrews

The FTSE 100 rose on Wednesday ahead of Rishi Sunak’s Budget speech in which he has promised to do “whatever it takes” to protect UK jobs and livelihoods.The FTSE followed European and Asian markets higher, adding to rises earlier in the week. London’s index of leading companies’ shares gained 1.2 per cent in morning trading to reach 6,691.85.Housebuilders Barratt, Persimmon and Taylor Wimpey were all up more than 3 per cent on news that the government would pump more money into supporting the housing market.Firms that look set to benefit most from the coronavirus vaccine rollout and a return to more normal activity led the charge higher.Whitbread, which owns Premier Inn, Beefeater and Brewers Fayre, jumped 4.8 per cent. Pubs were rumoured to be in line for further help from the government in Wednesday’s Budget.Catering giant Compass Group was up 3 per cent, JD Sports 3.1 per cent and British Airways owner International Consolidated Airlines Group up 4 per cent.Ryanair rose 3.2 per cent, easyJet 3 per cent and travel operator Tui 2 per cent.Banks were also mainly in positive territory with Barclays, HSBC and Standard Chartered all registering share price gains.The government has revealed several of its big plans ahead of the Budget, including an extension of the furlough scheme which has supported millions of workers’ wages and helped employers get through the pandemic.Home buyers and developers will also benefit from government guarantees for mortgages covering up to 95 per cent of the cost of a property.Traders’ eyes will be trained on the Office for Budget Responsibility’s forecasts for the UK economy and public borrowing which are expected to show a more rapid recovery than had been predicted in November. Across the Channel European indices were mostly up with the STOXX 600 adding 0.7 per cent while in Frankfurt shares climbing 0.9 per cent to a record high. France’s CAC 40 rose 0.8 per cent.Wall Street dipped on Tuesday on the back of growing fears that stocks including Apple and Tesla may be overvalued. More

Stripping the £20 uplift to universal credit will disproportionately impact single mothers, the government has been warned ahead of the chancellor’s final decision on the matter.Rishi Sunak rolled out the £20 weekly increase to universal credit during the initial stages of the coronavirus pandemic – a period that also saw record numbers of people apply for the financial support mechanism.However, anti-poverty groups have repeatedly warned that if the uplift is scrapped, hundreds of thousands of people will be plunged below the poverty line – with separate studies from the Legatum Institute and the Fabian society both predicting between 690,000 and 760,000 people will fall into poverty if the top up is removed.Freedom of information data obtained by Save the Children has revealed women account for almost 90 per cent of the more than 1 million single parents claiming the benefit.More than 962,000 single mothers are universal credit claimants, according to the data – with 45 per cent of them currently in work.Single mothers make up 3.5 per cent of the total UK population according to ONS data – however as a group they make up around 16 per cent of universal credit claimants.Becca Lyon, Head of Child Poverty at Save the Children, said: “Single mothers have been particularly hard hit by this crisis and taking money away from them at this time will leave them to struggle even more. “Even with the additional £20 per week in universal credit, mothers tell us they’re having to go without meals or electricity just to make sure their children have food to eat. “One mum told us she is burning candles because she cannot afford to pay for electricity. This should not be happening in 2021.”In the run-up to the Budget the chancellor has declined to comment on whether he would extend the uplift, which is due to come to a close in April.However he is expected to extend the measure in his budget for a further six months amid pressure from backbenchers – particularly conservatives in newly-won northern seats where constituents could be particularly hard hit.Ms Lyon added: “Providing support for only another six months just won’t cut it. We know the worst of the economic impact from coronavirus is yet to be felt, so we urge the UK government to use the Budget to extend the uplift to universal credit for at least a year. “Taking this lifeline away could be the difference between children having enough food to eat or having to go without meals.” More

Watch live as Nicola Sturgeon gives evidence to parliamentary inquiryNicola Sturgeon has rubbished Alex Salmond’s claim that a plot was hatched to remove him from public life, describing the suggestion as “absurd”. He has previously alleged that Scotland’s first minister made a “malicious and concerted” attempt to rid him of a political future through the government’s investigation into sexual harassment claims made against him. Mr Salmond, who was acquitted of 13 charges in criminal court, won a judicial review which found the government’s investigation was “tainted by apparent bias”.However, Ms Sturgeon, whose political future is at stake, strongly denies the “plot” allegations, saying there is not “a shred of evidence” to support them.Earlier this week, written statements by two former SNP officials contradicted Ms Sturgeon’s version of events. Meanwhile, the Scottish Conservatives have called on her to resign over her government’s mishandling of the investigation.Commentators have noted how damaging the feud is for Scotland, with former prime minister Gordon Brown saying it is “bringing the country down”. Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayShow latest update
1614783045First minister asked why no one in government has resigned Scottish Labour MSP Jackie Baillie has asked the first minister why no one in government has resigned over the botched handling of the Salmond investigation. Nicola Sturgeon responded by saying that the situation was horrendous for everyone and by admitting that “people got things wrong”. Rory Sullivan3 March 2021 14:501614782831Sturgeon says she never wanted to face this situation Nicola Sturgeon has told MSPs: “I never wanted to face a situation where a man I revered – had revered – since I was 20, probably younger than that, was facing serious allegations of sexual misconduct.“My conduct in all of this is rightly under scrutiny, I have no complaint about that.“But I think it would have been deeply wrong for me to have intervened in any way, on behalf of Alex Salmond, to try to engineer the outcome he wanted.”Rory Sullivan3 March 2021 14:471614782009It would have been ‘deeply inappropriate’ to intervene on behalf of Salmond, says SturgeonScotland’s first minister has reiterated that it would have been “deeply inappropriate” for her to intervene on behalf of her former friend Alex Salmond. Nicola Sturgeon said she was excluded from the investigation as part of the procedure and that it would have been an abuse of her power to influence things in favour of Mr Salmond.He was facing claims of “serious sexual misconduct,” she reminded the inquiry.The first minister added that it was not her decision not to go to arbitration in the case.Rory Sullivan3 March 2021 14:331614780967First minister questions timeline of lawyers’ advice Nicola Sturgeon has hit out at the suggestion that lawyers told the government before 11 December that it would lose a court case brought by Alex Salmond.Tory MSP Murdo Fraser said that legal advise, published on Tuesday night, showed this information was shared by 6 December “if not before”.“You were risking public funds in continuing with the action,” he added.Ms Sturgeon replied: “I think every time a government defends a legal action it is risking public funds, because there is never a guarantee you are going to be successful.”“My understanding is that much of what went really wrong in the case, catastrophically wrong… was in that later stage of December, when it became clear, I believe not intentionally, that there was information and material that had not hitherto been disclosed.”“Up until as late as December 11 it was the opinion of law officers we had a stateable case with credible arguments,” she added.Rory Sullivan3 March 2021 14:161614778729Hearing to resume at 2pmThe committee hearing has stopped for lunch. Proceedings will start up again at 2pm. Rory Sullivan3 March 2021 13:381614778261Sturgeon denies Salmond’s version of events Tory MSP Murdo Fraser asked Nicola Sturgeon whether the government conceded the judicial review only after its junior and senior counsel threatened to resign, something which Alex Salmond has alleged. In response, the first minister said: “That’s not my understanding.”Before this, she said: “The charge that has been made against me is that I wilfully allowed a judicial review to proceed against the legal advice, therefore I broke the ministerial code.“With respect, as you now know, I was acting in accordance with the views of the law officers, not against.” She later added that the government would not have leant on the counsel to proceed in an “unstateable” case and that it had chosen to concede of its own volition. Mr Salmond was awarded £512,000 towards his legal fees after winning the review. Rory Sullivan3 March 2021 13:311614777414Two sections down, two to go As the BBC’s Nick Eardley notes, there are four sections to the committee’s investigation. After the first four hours of today’s hearing, only two of these have been covered. Rory Sullivan3 March 2021 13:161614776142Sturgeon worries committee’s process has ‘side-lined and silenced’ complainantsNicola Sturgeon said she was concerned about how the committee’s work may draw the attention away from the complainants.She said: “One of the genuine worries I have here is the extent to which this whole process has side-lined and silenced the voice of the complainers and that’s not what anybody on this committee has wanted or tried to do.“It’s not for me to tell you how to do your work, and it’s certainly not, but if you want to know what the complainers thought (about the process of dealing with their allegations) perhaps trying to speak to them would be a better way than trying to get me to second-guess their views.”Kate Ng3 March 2021 12:551614774695No evidence ‘within a million miles’ that Alex Salmond was victim of conspiracy within SNPNicola Sturgeon insisted she had seen “nothing that comes within a million miles” of backing up claims that Mr Salmond was the victim of a conspiracy within the SNP.Speaking about messages sent by various people within the party, she said they showed “people supporting each other, people talking to each other”.She added there was “a bit of gossip about what was going on”, saying: “This was a massive thing for the SNP, particularly for people who had worked closely with him.”But she stressed that people in the SNP were co-operating with police, saying: “Some of what has been misrepresented as trying to find or concoct evidence is actually people co-operating with the police at their request.“I have seen nothing that comes within a million miles of backing up that central assertion Alex was making, that there was some kind of co-ordinated attempt, for whatever motive, and the motive seems to be on shifting sands as well, I have seen nothing that comes within a million miles of demonstrating that.”Kate Ng3 March 2021 12:311614774635Intervening in complaints against Alex Salmond would have been ‘effectively colluding with him’, says SturgeonNicola Sturgeon said it would have been an “egregious” breach of her position had she acceded to Alex Salmond‘s request for her to intervene following complaints against him.The First Minister told the committee: “The issue for me … was is it appropriate for me to intervene in the process, and I don’t think it was.“Had I done so I think I would have been facing serious criticism on that score as well.“I don’t think anybody around this table would be sitting here patting me on the back had I sought to intervene and influence the course of that procedure.”She added: “Had I intervened … I would have felt I was effectively colluding with him to try to thwart the direction and the natural course of the investigation. and I think that would have been a heinous, egregious breach of my position.”Kate Ng3 March 2021 12:30 More

Furlough payments for employees unable to work because of coronavirus restrictions are to be extended by five months to the end of September, as part of a Budget in which Rishi Sunak will set out billions more in support for business as the UK emerges from the pandemic. Employees will continue to receive 80 per cent of their salary for hours not worked, but unions and industry warned that the chancellor is risking jobs by requiring employers to contribute 10 per cent towards pay in July and 20 per cent in August and September while the state covers the rest.Meanwhile, more than 600,000 self-employed people excluded so far from the government’s support package will be able to claim direct cash grants, as the government’s self-employment income support scheme (SEISS) is extended to cover those who began working for themselves in 2019-20.Mr Sunak will say he is ready to do “whatever it takes” to help businesses and people through this “moment of crisis”, promising to use “the full measure of our fiscal firepower” through tax and spending decisions in the Budget to protect jobs and livelihoods. And Downing Street said the package would “unleash growth and support jobs”.But the chancellor left no doubt that tax rises are also on the way to rebalance the UK’s public finances, which have plunged more than £2 trillion into the red after he pumped £280bn of borrowed cash into schemes like furlough, business rates relief, support grants and VAT breaks – and much of this spending is expected to be extended in Wednesday’s Budget.Corporation tax is expected to be gradually eased up from 19 per cent to as much as 25 per cent, while a freeze on income tax thresholds could drag more workers into higher bands. And Labour has warned the chancellor could seek to rein in spending with a public sector pay freeze and the abolition of the £20-a-week uplift to universal credit.Mr Sunak will tell MPs: “First, we will continue doing whatever it takes to support the British people and businesses through this moment of crisis.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekday“Second, once we are on the way to recovery, we will need to begin fixing the public finances – and I want to be honest today about our plans to do that.“And, third, in today’s Budget we begin the work of building our future economy.”Furlough had cost the Treasury a total of £46bn by December last year, as the state paid the wages of up to 11.2 million workers in an unprecedented programme. Extension to September will cost billions more, though the total paid out can be expected to fall if social and economic restrictions are lifted by 21 June as planned in Boris Johnson’s roadmap to recovery.Labour said Mr Sunak could have made today’s announcement long ago, but had denied businesses certainty for months in order to be able to grab the limelight on Budget day, just eight weeks before furlough was due to expire at the end of April.Bridget Phillipson, shadow chief secretary to the Treasury, said: “Businesses and workers have been pleading with the chancellor to give them certainty – but they have had to wait because he said it wouldn’t be appropriate until the Budget. Announcing it the night before shows the focus is on Rishi Sunak getting his moment in the sun rather than protecting jobs and livelihoods.”Frances O’Grady, TUC general secretary, said extending furlough was “vital to protect jobs and businesses” and she urged the chancellor to promise it will last as long as needed to secure recovery. Mr Sunak must also deliver a major programme of job creation in the Budget, said Ms O’Grady.And she warned: “Reducing support to employers in July, just as restrictions end, will risk jobs. The job retention scheme should be available until at least the end of the year. And without specific support, the hardest-hit sectors – like hospitality, retail, the creative industries, travel and aviation – will struggle to reopen fully.”The UKHospitality trade body warned that extended furlough alone will not be enough to keep businesses going through the spring and summer“It is now more important than ever that the chancellor delivers a wider package of support in his Budget statement,” said chief executive Kate Nicholls. “We must have an extension of the VAT cut and business rates holiday if we expect to see businesses survive and thrive after the crisis has passed.”Mr Sunak’s plan made it all the more important that Mr Johnson sticks to his 21 June date for allowing venues to reopen fully, she said.And she warned that requiring employers to contribute towards pay for unworked hours from July will “place unnecessary pressure on fragile businesses just as they are beginning to get back to their feet”. “Businesses are burning through their cash reserves and many will have exhausted them before they have a chance to reopen,” she said. “Not all businesses are going to be out of the traps instantly. It will take time for them to reopen and they will be racking up costs in the meantime.”Rain Newton-Smith, chief economist at the Confederation of British Industry, said it was “common sense” to extend furlough, which would “keep millions more in work and give businesses the chance to catch their breath as we carefully exit lockdown”.And Mr Sunak said: “Our Covid support schemes have been a lifeline to millions, protecting jobs and incomes across the UK.“There’s now light at the end of the tunnel with a roadmap for reopening, so it’s only right that we continue to help business and individuals through the challenging months ahead – and beyond.”The chancellor will announce a fourth grant under the SEISS scheme, available to the self-employed from next month, worth 80 per cent of three months’ average trading profits up to £7,500 in total. And he will indicate that a fifth grant is to be offered later in the year.Because the scheme can now draw on data from tax returns for the financial year 2019-20, support will be accessible to more than 600,000 people who had not taken on self-employed status by the end of 2018-19.Mike Clancy, general secretary of the Prospect union, welcomed the move, but added: “While the chancellor has plugged one hole in his support package, he has left several others gaping wide open, meaning hundreds of thousands of self-employed and freelance workers are set to be denied the support they need to bridge the gap to the reopening of the economy.”And Sonali Joshi of Excluded UK said: “Even with the further support that is expected with the inclusion of 2019-20 tax returns, the majority of those who’ve been shut out of meaningful support thus far will continue to be excluded.“Those individuals excluded from support are not just the self-employed. They are also limited company directors, employees who were denied furlough for a variety of reasons, zero-hour contract workers and PAYE freelancers.”Also expected in Mr Sunak’s second Budget as chancellor are: – Nearly £410m for the culture sector.- £300m for a sports recovery package.- A £150m fund will help local communities save assets like pubs.- £520m will support small UK businesses with training and software.- £2.8m will be given to a joint UK and Ireland bid to host the 2030 football World Cup.- The fuel duty freeze is set to continue.William Hague – a close ally to Mr Sunak, who inherited the former Tory leader’s Richmond seat – set the scene for tax rises, declaring: “It pains me to say, after spending much of my life arguing for lower taxes, that we have reached the point where at least some business and personal taxes have to go up.”And former chancellor Philip Hammond said public spending cuts will also be needed, telling Times Radio: “We have got to get a balance right between restraining public spending and increasing taxes and we’re going to have to do both.” More

The chief European Union diplomat in Venezuela left the country on Tuesday, a week after the government of Nicolás Maduro ordered her expulsion following the EU’s decision to impose sanctions on several Venezuelan officials accused of undermining democracy or violating human rights.Isabel Brilhante Pedrosa tweeted a photograph of Caracas showing the mountain range that flanks the Venezuelan capital to the north and the message “infinite thanks to all Venezuelans for their affection.”“I carry you all in so many beautiful memories. My heart stays here,” she wrote without giving details.The Venezuelan government’s action against Brilhante Pedrosa came after the European Union’s foreign ministers sanctioned 19 Venezuelan officials, freezing their assets and banning them from traveling to the bloc, citing the deteriorating situation Venezuela faces after December 2020 elections. The main opposition parties boycotted those elections.The move marked the second time in almost eight months that Brilhante Pedrosa was declared persona non grata and ordered to leave Venezuela. Both cases were related to the European Union sanctions against officials and allies of Maduro.Last June, Brilhante Pedrosa was able to remain in Venezuela after the European Union high representative for foreign affairs, Josep Borrell, and Venezuelan Foreign Minister Jorge Arreaza agreed on the need to maintain diplomatic relations.Arreaza last week lamented that the sanctions were imposed again, saying Maduro had been “generous” to allow European diplomats to remain after many nations formally recognized opposition leader Juan Guaidó as the country’s rightful leader.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayGuaidó, former president of the National Assembly, declared himself interim president in 2019 and was recognized by 60 countries as the legitimate leader of Venezuela, arguing that Maduro’s reelection in 2018 was fraudulent. However, Maduro has held power with the support of the military and Guaidó’s movement has lost momentum. More

Scottish Conservatives have called on Nicola Sturgeon to resign after the publication of previously secret legal advice relating to a botched investigation into allegations of sexual harassment by Alex Salmond.After facing the threat of a no-confidence vote at Holyrood, the deputy first minister, John Swinney, agreed earlier this week to release the legal guidance received by the Scottish government during a court battle with Mr Salmond.The advice relates to Mr Salmond’s successful legal challenge of the government’s harassment complaint procedure, which led to the former SNP leader being awarded more than £500,000. According to the newly released documents, which were published on Tuesday evening, lawyers advised the Scottish government in September 2018 that the challenge was “capable of being resisted successfully”, but that there was a “real risk that the court may be persuaded by the petitioner’s case in respect of the ground of challenge based on ‘procedural unfairness’.”The published advice shows that lawyers grew increasingly concerned, and told ministers on 6 December 2018 that in their view the “least worst option” would be to concede the petition.“We understand how unpalatable that advice will be, and we do not tender it lightly,” they wrote. “But we cannot let the respondents sail forth into January’s hearing without the now very real risks of doing so being crystal clear to all concerned”.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayOn Wednesday, Ms Sturgeon will appear before a Holyrood inquiry to answer questions on the investigation. The BBC reported that the first minister is “relishing” the opportunity to put her side of the story forward.But Douglas Ross, the Scottish Conservative leader, said after the publication of the cache of documents that his party would be submitting a vote of no confidence in the first minister.In a statement, he said: “Credible witnesses have now backed up Alex Salmond’s claims and the legal advice shows the government knew months in advance that the judicial review was doomed but they still went on to waste more than £500,000 of taxpayers’ money.“There is no longer any doubt that Nicola Sturgeon lied to the Scottish parliament and broke the ministerial code on numerous counts. The weight of the evidence is overwhelming. Nicola Sturgeon must resign.A spokesperson for Ms Sturgeon said: “The first minister will address all the issues raised — and much more besides — at the committee tomorrow, while the independent adviser on the ministerial code will report in due course.“But to call a vote of no confidence in the middle of a pandemic, before hearing a single word of the first minister’s evidence, is utterly irresponsible.“It is for the public to decide who they want to govern Scotland and – while we continue to fight the Covid pandemic – with the election campaign starting in just 20 days, that is precisely what they will be able to do.”Alongside the publication of the previously secret legal advice, Mr Swinney said: “The documents published today demonstrate that the Scottish government did not ignore legal advice in continuing to defend the judicial review, contrary to the terms of the Scottish ministerial code or the civil service code.“The documents demonstrate that there was no ‘malicious’ intent against Mr Salmond. The Scottish government was within its rights to defend a judicial review raised against it by Mr Salmond and to continue to defend it whilst it still had a stateable case. There were good public policy reasons for continuing to defend the case and to seek a determination from the court.” More

As Britons look forward to a possible end to the coronavirus lockdown, millions of people are also anxiously awaiting the chancellor’s spring Budget announcement.Rishi Sunak will outline the government’s financial plans 3 March, when he expected to focus on “the next stage” of the UK’s Covid response.The economic fallout of the Covid-19 crisis led to the government borrowing record-breaking amounts, with the latest data showing it borrowed £8.8bn in January.Mr Sunak is once again under pressure to extend the furlough and business support schemes, which were introduced during the first lockdown last March.The government announced its roadmap out of lockdown on Monday, but businesses still have weeks and months to go before they can even begin to think about opening their doors and welcoming customers in again.Mr Sunak may also introduce a number of measures to bolster the economy and help some industries get back on their feet.Inside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayInside Politics newsletterThe latest news on Brexit, politics and beyond direct to your inbox every weekdayAccording to reports, such measures may include cutting VAT and alcohol duty tax for restaurants and pub, extending the stamp duty holiday for homebuyers, and possibly vouchers for high street shoppers.Businesses have also urged him to extend the business rates holiday, which is set to end in April, to help them get through the year. However, it has been reported that officials are considering plans to increase corporation tax from 19 per cent to 25 per cent to shore up government funds.Mr Sunak may also face opposition from Conservative MPs, who may rebel if the Budget contains sizeable tax hikes some have railed against.Downing Street warned on Thursday that Tory MPs who vote against the Budget could be stripped as a whip, as it would consider such votes as a confidence issue. More