UK Politics

Rishi Sunak was today facing calls to cut short a visit to California to address pleas for support from the UK’s hospitality industry, hit by a wave of cancelled bookings and stay-away customers in the wake of new warnings to exercise caution over Omicron in the run-up to Christmas.Labour’s shadow chancellor Rachel Reeves and shadow business secretary Jonathan Reynolds wrote to Mr Sunak and business secretary Kwasi Kwarteng calling for urgent action to support businesses facing “closure by stealth”.And Liberal Democrats called for the House of Commons’ Christmas break to be delayed by a day to Friday to allow for the agreement of a package of measures to keep pubs, cafes and restaurants alive.Downing Street said that the chancellor had been in constant contact with London during his trip and had been keeping up to date with the fast-moving outbreak of the Omicron variant of Covid-19.And Treasury sources rejected suggestions that he had been enjoying a holiday between meetings in San Francisco, noting that he was accompanied by officials rather than his wife or other family members and did not stay at his holiday home in Santa Monica.No precise details were made available of the chancellor’s schedule during his four-day visit, but a Treasury spokesperson said: “The chancellor is on a long-planned official trip conducting govt business. He is in San Francisco meeting industry leaders from the tech and investment sector to discuss the global economy and the recovery.”He was this afternoon due to conduct a virtual meeting with representatives of the hospitality industry and is expected back in the UK on Friday.Asking an urgent question in the House of Commons on support for business during the current Omicron wave, Labour’s Treasury spokesperson Pat McFadden asked: “Where is the chancellor?“Why did he decide to proceed with a trip to California on Tuesday when it was already clear that UK businesses were struggling to cope with what the prime minister himself has called a ‘tidal wave’ of Omicron?“Even if he is abroad, California is not exactly a communications desert. They have television there. I’ve heard they even have the internet.“But still it’s radio silence from the chancellor. Tumbleweed rolling through the Treasury.“The Treasury says he’s in communication with his officials, but what about some communication with businesses who are losing bookings by the hour and watching their December profits vanish into thin air?”Lib Dem chief whip Wendy Alexander said: “The chancellor must get on the next plane back from his California jaunt to move heaven and earth to save a hospitality sector on the brink of collapse.”And the SNP’s Treasury spokesperson Alison Thewliss said Mr Sunak’s absence was “nothing short of a dereliction of duty”.“Rather than taking steps to strengthen support and fill the gaps in measures to help businesses and workers at this crucial time, the chancellor is instead literally out of office thousands of miles away,” said Ms Thewliss.“The chancellor must step up and heed calls to bring forward financial support to ensure businesses are not pushed over the brink and workers are not out of their jobs this Christmas.”Meanwhile, the chair of the House of Commons Treasury Committee, Tory MP Mel Stride, wrote to Mr Sunak to demand details of any plans being drawn up to help businesses suffering from reductions in demand. More

New figures have shown that UK food and drink exports to the EU plunged by almost a quarter in the nine months after Boris Johnson’s Brexit deal took effect, compared to pre-pandemic levels, with a loss of £2.4bn in sales.Exports to big European markets were hit hard, with sales to Spain down by more than half (50.6 per cent) on 2019 levels, Germany by 44.5 per cent and Italy by 43.3 per cent, according to the Food and Drink Federation. Sales to the industry’s largest overseas market, the Republic of Ireland, were down by more than a quarter.And industry leaders warned that the downturn could be “here to stay”, in a blow not only to Mr Johnson’s “global Britain” aspirations but also his plans to “level up” disadvantaged parts of the country.The FDF said that the slump in sales could be blamed both on new barriers to trade created by Brexit and Mr Johnson’s Trade and Cooperation Agreement (TCA) with Brussels and on the global Covid-19 pandemic.But figures showed that UK sales of food and drink products to non-EU markets rose by 11 per cent in the first three quarters of 2021, suggesting that Brexit is to blame for the lion’s share of lost trade with Europe.The trade organisation appealed for ministers to work constructively with Brussels to improve the operation of the TCA, which provides for tariff-free imports and exports of goods but introduces many non-tariff bureaucratic barriers to trade, compared with the arrangements the UK used to enjoy as an EU member.FDF head of international trade Dominic Goudie said: “It is extremely disappointing to see how badly our trade with the EU has been affected, with our smallest exporters hardest hit. It is essential that the government works constructively with the EU to improve the implementation of the Trade and Cooperation Agreement to ensure that it works for small businesses, otherwise this downturn will be here to stay.“The UK government’s recent announcement of plans to take forward the FDF’s proposals to set up a new Food and Drink Export Council and put in place new in-market support are welcome. It is vital that the UK government and devolved nations continue to work with industry to put in place a new model of partnership to support food and drink exporters.“Food and drink, from farm-to-fork is uniquely placed to deliver on the government’s levelling-up agenda, delivering jobs and growth in every part of the UK. “However, our supply chains continue to struggle, particularly through a lack of available workers. Businesses want to help the government realise its ‘global Britain’ ambitions, but they need government to clear the obstacles and help them take advantage of new opportunities.”According to the FDF figures, exports to China were up by 22.1 per cent, to Taiwan by 21.8 per cent, to the UAE by 18.3 per cent, Japan 10.6 per cent and Singapore 5.4 per cent. However these more far-flung markets make up a smaller share of UK exports than those in neighbouring European nations.Global exports of whisky and salmon have started to recover from pandemic-hit 2020, with sales of both products up 21 per cent compared to last year, while soft drinks were up 11 per cent.But all other major products, including beef ( down 18.4 per cent), cheese (down 13.2 per cent) and pork (down 5.7 per cent) continued to decline.Meanwhile, imports from the EU have also been badly impacted by Brexit, down nearly 11 per cent in the nine months to September compared to pre-Covid levels – equivalent to more than £2.5bn in cash terms.Imports from the Netherlands were down by 19 per cent, from Ireland by 20.1 per cent and from Germany by 33.1 per cent.The delayed implementation of Brexit import controls on products from the EU will have a further impact on the cost and availability of supplies of food and drink from the EU in 2022, including on essential ingredients and raw materials required by UK manufacturers. More

Boris Johnson is facing fresh accusations of lying to parliament, after wrongly denying that the Foreign Office is planning to slash staff numbers by 10 per cent.Senior Tory MP Tom Tugendhat protested at the move in the Commons – warning it undermined aspirations for a ‘Global Britain’ – but the prime minister insisted he was wrong.“The information that has recently trickled into his ears is fake news,” Mr Johnson told the chair of the foreign affairs committee, after the foreign secretary Liz Truss whispered something to him.But an email to Foreign Office staff, passed to the i newspaper, quickly revealed the cut is coming, stating: “We are planning on the basis of just under a 10 per cent reduction in our overall workforce size by March 2025.”David Lammy, Labour’s shadow foreign secretary, said: “It would appear, not for the first time, the only person spreading fake news is Boris Johnson.“The government is shrinking our diplomatic presence, and the PM can’t even own up to it. He’s unfit to lead. When you mislead parliament you are misleading the country as well.Dave Penman, the head of the FDA union for civil servants, said staff would be “surprised” to hear the prime minister deny information that was “fresh in their inbox yesterday”.“The strategic workforce plan envisages a just under 10 per cent headcount reduction by 2025, mainly achieved through voluntary redundancy,” he warned.“The criticism often heard is that FCDO [Foreign Commonwealth and Development Office] is a crisis organisation, yet if the government continues to starve it of resources, that is what it will become.”Chris Bryant, a former Labour minister, went further, saying it appeared Mr Johnson had “lied to parliament when he said it was ‘fake news’”, as “advised” by Ms Truss.The controversy comes after repeated protests that the prime minister has misled parliament over many issues, including over Covid contracts, the vaccine rollout and rising child poverty.It also raises questions for the foreign secretary – the grassroots favourite to take over as leader – as she appeared to tell Mr Johnson the information, from her own department, was wrong.In the Commons, Ms Truss’s deputy, James Cleverly, told MPs “there will not be a 10 per cent staff cut” – but declined to say what reduction will be imposed.Questioned on the email, he said: “Internal work has taken place that has not been signed off by ministers,” adding: “Ministers will make the final decisions on workforce changes in the spring.”The Independent understands that no final decision has been taken on staff cuts, as the department wrestles with a 5 per cent overall budget cut. More

Tory MPs have attacked Chris Whitty’s call for people to cut back on Christmas partying as an adviser “running the show” – despite no Commons vote to impose restrictions.Ex-ministers Steve Brine and Steve Baker laid into the chief medical officer after he urged the public not to mix at festive events unless they “really matter to them”.With hospitality and entertainment businesses protesting they face ruin from customer no-shows – and no Treasury plans for a rescue package – Conservative MPs pinned the blame on Professor Whitty.Mr Brine told minister he appeared to have changed government policy “at a stroke” into an “effective lockdown” and demanded to know why “advisers are now running the show”.“I’ll bet none of them run businesses facing complete ruin. As a result of what was said last night, the Treasury is going to have to do more,” he said, as Labour called for that urgent support.Mr Baker echoed the protest, questioning whether officials “on podiums at press conferences are staying within the bounds of the policy that ministers have decided”.And a third Tory backbencher, Greg Smith, complained Prof Whitty had decided to “press the panic button way beyond what this House voted for a couple of days ago”.But, speaking simultaneously in a Commons committee, the chief medical officer (CMO) doubled down his advice, refusing to bow to criticism.“This is advice that I think any CMO would have given and I don’t think any minister is feeling I’m treading on their toes on this one,” he told MPs.Prof Whitty added: “I am really cautious about making policy on the basis that everything might go right”, warning of the mistake of “assuming everything’s going to fall my way”.Earlier, another Conservative MP and ministerial aide, Joy Morrissey, deleted a tweet criticising Prof Whitty for failing to “defer” to Mr Johnson and for turning the UK into a “public health socialist state”.Wes Streeting, Labour’s shadow health secretary, hit back, tweeting: “It is outrageous to see a government PPS attacking the chief medical officer in this way. She should apologise and withdraw this immediately.”Stephen Farry, the deputy leader of Northern Ireland’s Alliance Party, also criticised the Tory MPs’ attempts to silence Prof Whitty.“Like millions of people, I would rather hear from unfiltered medical and scientific expert than have censorship from a self-serving and hypocritical government,” he posted on Twitter.Rishi Sunak has been told to come out of hiding to rescue stricken hospitality and entertainment businesses, after it emerged he is in California on “a work trip”. “The Chancellor will be speaking to UK hospitality representatives this afternoon,” MPs were told, during an urgent question to the Treasury. More

Just two years ago, Boris Johnson led the Conservatives to an astonishing general election triumph, his personal popularity the decisive factor in demolishing Labour in its ‘Red Wall’ heartlands.Yet the prime minister is now fighting for his political life, after a disastrous month that has seen public support collapse over allegations of sleaze and lockdown-busting No 10 parties – then Tory MPs desert him over his Covid strategy.Some Tories now believe a leadership challenge is now a matter of “when not if”, so what happens next?* How can Mr Johnson’s opponents get rid of him?Not easily. Forget talk of a “stalking horse” candidate mounting a challenge, party rules allow only a vote of no confidence in a leader – which requires the support of 15 per cent of Conservative MPs, meaning 55 must submit letters to backbench steward Graham Brady. If the leader wins a subsequent vote, he or she can carry on, as Theresa May did.* Is there a plot to gather those 55 letters and how many MPs have joined it?Not yet, it appears. No Tory has admitted sending in a letter and MPs bang at the top of anyone’s list of likely plotters say they have not been asked to do so. Only Sir Graham knows if his drawer is filling up – and he has vowed to keep silent until the magic figure of 55 is reached. So any claims about the number of letters submitted are almost certainly guesswork.* So the prime minister doesn’t need to be worried?Oh yes he does….support is crumbling quickly and his opponents are merely “lying in wait”, until the best opportunity to strike, The Independent was told. “It’s a matter of when, not if,” said one, “but the timing needs to be absolutely right” – pointing out that Theresa May ignored more than 100 MPs demanding that she quit and simply staggered on.* Who are the likely plotters when the New Year dawns?Take your pick from a smorgasbord of One Nation ex-ministers who are terrified that Mr Johnson is – like Donald Trump and the Republicans – wrecking the party’s brand, “freedom loving” Tories who feel betrayed by his shift to supporting Covid restrictions and “newbies” who owe their marginal seats to him, but now see their postbags filling up with angry letters about government incompetence and fear for their jobs.* So what are they waiting for?Defeat in the (once?) rock-solid seat of North Shropshire, in Thursday’s by-election, would be a tipping point for some, but the Christmas break will then intervene. Paradoxically, the omicron crisis also helps Mr Johnson – because plotting looks unseemly, and no potential successor wants to take over, during such an emergency. But further dependence on Labour to force through Covid curbs will fuel the revolt. The crucial unknown is whether the factions will work together, which may depend on whether libertarian Tories – unlike the One Nation group – believe the prime minister is not yet a lost cause? * What can No 10 do to keep Mr Johnson in his job?The festive break allows for a “relaunch” – perhaps by bringing in a heavy-hitter to bring order to a chaotic Downing Street – but Mr Johnson has tried that trick before and many MPs believe he is simply incapable of change. A further worry is that the 2019 intake, in theory the most loyal, appears out of No 10’s control. One government aide blames the distraction of the pandemic for the MPs being “unwhippable”, saying: “It’s like a new puppy – if you don’t train them at the start, it’s too late.”* Who will take over if the prime minister is toppled?The chancellor Rishi Sunak and Liz Truss, the foreign secretary, are the favourites and have all-but started campaigning – the latter sitting on a tank, in a shameless Margaret Thatcher impersonation. Many Tories are terrified of life under the maverick Ms Truss, the favourite of the right-wing grassroots, and would probably seek refuge in Mr Sunak’s perceived safer hands.* Then the political frenzy will calm down a bit, I imagine?Well….in bad news for Brenda from Bristol, any successor will be strongly tempted to call a honeymoon election, before the economic pain from Brexit and Covid really starts to bite. More

Scotland’s first minister Nicola Sturgeon has urged Scots to “stay at home” for now as she strengthened her warning about the rise of the omicron variant.Ms Sturgeon urged people to “reduce your contact” with others households as she warned that omicron is likely to be the dominant strain of Covid in Scotland from tomorrow.“For now, please stay at home much more than you normally would, and as much as is feasible,” the SNP leader said during her statement in the Scottish parliament on Thursday.Although Ms Sturgeon stressed she was not introducing legal rules at this stage, she warned that any socialising should be “vital enough to you to justify that risk [of getting Covid]”.The first minister added: “I suspect what is most important to most of us over the next couple of weeks is having time with our families at Christmas. Every interaction we have before then increases the risk of us getting Covid and so possibly losing that.”Ms Sturgeon called on Boris Johnson to bring back extra support for businesses hit by cancellations – saying she “acutely aware” of the impact of her advice for people to limit social interaction.She has already urged Scots to mix with only two other households, at home or in indoor public places, on either side of the festive holiday.Although the first minister did not specifically ask for the return of furlough payments, she said businesses now needed the “scale of financial support” that was available earlier in the pandemic.Ms Sturgeon said she had written to Mr Johnson and asked to speak with him today to discuss extra financial support. “We need the UK government to act urgently and in the same way some other countries are already doing,” she said.“We must not sleepwalk into an emergency that for both health and business will be much greater as a result of inaction than it will be if we act firmly and strongly now,” Ms Sturgeon added.The first minister said she was “profoundly concerned” by omicron which is “running faster than even the fastest rollout of vaccines” after 5,951 coronavirus cases were reported in Scotland on Wednesday – 45.4 per cent of which were likely to be the new variant.It comes as Labour said chancellor Rishi Sunak should “get himself on a flight back and get a grip on the situation” after it emerged that he is currently in California on a four-day official trip.Shadow health secretary Wes Streeting urged Mr Sunak to “hammer out a deal to help hospitality” as business leaders expressed concerns about cancelled events. The chancellor is set to speak to business leaders remotely, from the US, later on Thursday.British Chambers of Commerce president Baroness Ruby McGregor-Smith said chief medical office Prof Chris Whitty’s plea to “prioritise” the gatherings which matter to them “will almost certainly have an enormous impact for businesses”.Trade unions are also calling for immediate support for workers in the hospitality and entertainment industries.MPs on the cross-party Treasury Committee have also asked Mr Sunak whether he will provide additional support to businesses. Tory MP Mel Stride, chair of the committee, said it was important the government “sets out its thinking on the targeted support that it might be able to bring forward”. More