UK Politics

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailNorthern mayors have hatched a cross-party plan to bring HS2’s axed northern leg back to life with help from the private sector.The Independent first revealed the radical move by Rishi Sunak to ditch the Birmingham to Manchester section of the high-speed rail project.The PM was met with howls of outrage from business chiefs and senior Tories after he used his conference speech confirm our exclusive that he was scrapping the link.Tory mayor of Birmingham Andy Street and Labour mayor of Manchester Andy Burnham are now set to hold talks with transport secretary Mark Harper to discuss whether the project could sbe revived.Mr Street told the Daily Express that a new high-speed scheme, or major upgrades to the existing rail connection in the north, could be mostly paid for by the private sector.“The mayors of the two regions are leading this but to be clear, with government support,” said the popular Tory mayor. “By inviting the private sector in to play the maximum possible role, it can be significantly less costly for the public exchequer.”A plan to revive parts of the northern stretch of HS2 are back on track, according to government officialsThe northern section replacement project is being overseen by Sir David Higgins, the former chairman of HS2, now chairman of Gatwick Airport.Train operating companies would reportedly meet the initial costs of a new line, but some input from the taxpayer would still be required.Leading engineering giants Arup and Mace Engineering are at the forefront of discussions aimed at getting private finance to rescue the Birmingham to Manchester link.Mr Street said: “We have to be realistic about this. If I say it won’t cost the Exchequer anything, that’s probably not the case. But we are definitely looking for it to cost substantially less.”The Tory mayor added: “We have got around the table organisations that do the private-sector funding of rail in other parts of the world, and people who either own or are linked to operators.”The rail link could connect the end of the HS2 line in Handsacre in Staffordshire, just north of Birmingham, with Stockport, which is set to be the final stop on a high-speed networkHowever, with the government ending “safeguarding” of land on the axed HS2 route, there is a race to progress with the project.The idea of reviving the northern leg could prove controversial among some Tory MPs who fought against the impact on their constituencies.Manchester mayor Andy Burnham wants to revive HS2’s northern leg Sir Keir Starmer has spoked to Mr Burnham about ways to boost rail connectivity in the north – but he has warned it would not be possible to bring back the original taxpayer-fund northern leg.The Labour leader told the BBC earlier this month that he “can’t stand here and commit to reversing” the government’s decision, adding: “Contracts are going to be cancelled.”Mr Sunak announced in October said the government would re-invest £36bn from the HS2 project in a series of road and rail schemes across the country.Andrew McNaughton, HS2’s former technical director, said Mr Sunak had created a “growth reduction scheme” by axing the route. He said the “whole strategy for connecting the north and south of England was HS2”.“Any other plans were all predicated on HS2 creating the new capacity either directly or indirectly for the next 100 years,” he said.He added: “If there is nothing to replace it, you would need to ration. What’s the rationing on the railway? You have to price people off. That’s how it’s always been done as the only way of managing demand.”A Department for Transport spokesperson said: “The government is supportive of work to improve rail connectivity between Birmingham and Manchester.” More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailFor many young Britons hoping to buy a home the biggest barrier in the way remains the lump sum needed for a deposit.The struggle has become harder over the decades as soaring house prices have outstripped pay and robbed many on decent salaries the chance to get onto the property ladder.The Independent has revealed that Rishi Sunak’s government is considering a bold plan to help “generation rent” by creating 99 per cent mortgages.Instead of having to save tens of thousands, 1 per cent deposits could make the home ownership dream a reality with just a few thousand pounds.So, could it work or will it prove too risky for many banks?How can the government create a 1% deposit scheme?The idea of encouraging 99 per cent loan to value (LTV) mortgages – with deposits of just 1 per cent required up front – is being seriously considered at the Treasury as part of discussions for chancellor Jeremy Hunt’s March Budget announcement.Jeremy Hunt and Rishi Sunak hoping to give young people a reason to vote Tory The Conservative Party is in terrible trouble with young voters. Only 10 per cent of voters under the age of 50 intend to vote Tory, the most recent YouGov poll found. Thus, Mr Hunt’s team at the Treasury is exploring ideas to boost the fortunes of first-time buyers.Lenders typically require 10 per cent for the deposit but if the government guarantees to underwrite some of the larger, riskier loans offered with a deposit of just 1 per cent, it could open up home ownership to a much larger group of people.Ministers have some recent templates to work with. The Help to Buy scheme, which ran between 2013 and 2023, saw the government offer 20 per cent equity loans and back 5 per cent deposits to boost homeownership at new-build developments.And although much smaller in scale, the government’s “mortgage guarantee scheme” – set to run until 2025 – is also aimed at boosting the number of 5 per cent deposit deals available with lenders.The government backs a portion of any mortgage offered under the low-deposit scheme, so it is willing to compensate the bank or building society if a home has to be repossessed.House prices have long been unaffordable for great swathes of young people Would it really mean buying a house for just a few thousand pounds?Someone looking to buy a house at the national UK average of £290,000 would pay just £2,900 under the proposed 1 per cent deposit scheme.But it would not magically secure young Britons’ financial future. Low-deposit mortgages typically have higher interest rates than those with larger deposits because of the greater risk for the lender.And while 99 per cent mortgages would address the issue of finding money for a deposit, it doesn’t address the issue of passing an affordability test. House prices are still high, as are interest rates, so the monthly costs will remain daunting for many.But getting more young adults started on a mortgage earlier would allow them to pay off the loan over a longer period, and could increase the prevalance of 35-year repayment plans to keep monthly costs down. Will lenders back the plan?Lenders will be wary, even if the scheme is aimed at the most credit-worthy of young buyers. The smaller the deposit, the greater the risk.The government may offer to underwrite a portion of the loan, but banks and building societies could look for additional capital buffers to support 99 per cent mortgages.From a lender’s point of view, such low deposits means borrowers have less capital invested in the building. So there is less incentive to stay in the property if prices fall, because the borrower would only be losing a 1 per cent equity stake.Could it affect house prices?Housing experts are already warning that the radical proposal for 1 per cent deposits could “backfire” by pushing up prices in a potentially damaging way.Making it much easier to buy would certainly provide a sugar-rush high in the market – but fuelling demand for the very limited supply of homes available could then create a price spike that would make it harder for the next wave of young people to afford the monthly costs.The Home Builders Federation have welcomed the idea of a government-backed scheme that promotes new developments, arguing that the Help to Buy scheme boosted Britain’s sluggish construction rates.Mr Hunt is believed to have concerns about moves to boost demand in the housing market if there are not equal measures to boost supply.It remains to be seen if the chancellor feels the government’s policies to create more new homes are strong enough to push the button on a radical new mortgage support scheme. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailInequality in the jobs market is costing the UK economy £34bn a year, according to new analysis by Labour shared with The Independent.Sir Keir Starmer’s party accused the Conservatives of “dismal failure” in tackling unfairness at work – arguing Britain is “less productive and less equal” after 14 years of Tory rule.The opposition is vowing to close the major employment gaps which see women, disabled people and black, Asian and ethnic minority Britons facing costly barriers.Labour’s shadow equalities secretary Anneliese Dodds will today say that the state of inequality in the UK is “a scandal we cannot afford”.As election-year pitches heat up, Tory chancellor Jeremy Hunt is said to be considering extending child benefits to more middle-class families in a pre-election budget giveaway.Labour insists that the ethnicity employment gap is costing the economy around £20bn a year, pointing to figures from the Office for National Statistics (ONS).The stats show that the current employment rate of “all other ethnic groups combined” is 68.4 per cent – nine points below that of white people (77.1 per cent).Closing that gap would mean an additional 650,000 employees in the economy, sparking a major boost to tax revenues and growth, say Labour.Labour’s Anneliese Dodds says inequality is ‘scandal we cannot afford’ Helping the 333,000 women who have left work due to menopause to stay in work would add up to £11bn to the economy, the research also shows.And closing the disability employment gap by just 2 per cent points to the OECD average could also provide an additional £3bn to the UK economy.Speaking at the Fabian Society conference on Saturday, Ms Dodds will slam the Tory government’s record of “dismal failure” on inequality at work.She will argue that employment gaps have seen women, black, Asian and ethnic minority people and disabled people “put more and more in and get less and less out”.The party chair will pledge that equality will “run through Labour’s plans like the words in a stick of rock”, as she sets out a plan to close employment gaps.The party says banning zero-hours contracts will benefit some black, Asian and ethnic minority workers who are disproportionately impacted. The party has promised to introduce mandatory ethnicity pay gap reporting for firms with more than 250 staff.Large employers will be required to produce “menopause action plans” to set out how they are supporting women experiencing menopause at work, and providing guidance for small employers.Sir Keir’s party has also committed to more specialist help for disabled people at job centres, as well as introducing disability pay gap reporting for large employers.Chancellor Jeremy Hunt is said to be planning an extension of child benefit It comes as a new report suggests Mr Hunt is considering a plan to extend £2,000 a year child benefit to a much greater number of middle-income families.The chancellor is mulling whether to raise the £50,000 threshold at which child benefit starts to be withdrawn, according to The Times. Raising it to £60,000 would cost around £1bn, while ditching any income limits would cost £4bn.However, Mr Hunt is said to be plotting a spending squeeze on departmental spending to help fund his tax giveaways. Day-to-day spending limits, currently set to rise by 0.9 per cent in real terms until 2028-29, could be cut, according to the Daily Telegraph.Rishi Sunak and Mr Hunt are widely expected to announce further tax cuts in the March Budget in a bid to boost their party’s dire polling fortunes. Tory MPs have expressed their preference for cuts to income tax rather than moves to slash or axe inheritance tax. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailNigel Farage could be the next UK ambassador to the US if Donald Trump wins the presidency, ex-foreign secretary David Owen has said.Lord Owen said appointing the former Brexit Party leader to the job to help keep Mr Trump onside was “not a totally outrageous suggestion”.The former cabinet minister said Mr Farage could initially be sent out to Washington to help persuade the Republican to keep the US inside Nato if he wins a second term.Lord Owen – Labour foreign secretary between 1977 and 1979 – said it may even be necessary to hand the hard-right politician one of the country’s top diplomatic roles. “We’d better send old Farage out there to persuade Trump [about Nato],” he told the News Agents podcast. “I would certainly.”He added: “I would hope it could be done without making him ambassador, as some people have suggested – but it’s not a totally outrageous suggestion.”Mr Farage previously claimed that he “could be very useful” when the idea of him becoming ambassador to the US came up upon Sir Kim Darroch’s resignation in 2019.When preparing to enter the White House, Mr Trump claimed that his friend would do a “great job” in the role. The then-Brexit Party chief raised eyebrows by meeting the president-elect at Trump Tower during the interim period in November 2016.Nigel Farage introducing Donald Trump at a 2020 stump speech Lord Owen – who quit Labour in the early 1980s to form a rival party that eventually became the Liberal Democrats –said his American wife was convinced Mr Trump was going to win November’s presidential election.He also called on Joe Biden to make way for another Democrat to run against the Republican favourite. “He’s got a few more months but he should say to the people, ‘I’m getting a bit old, we need a vigorous thing’. And the Democrat Party ought to have an open nomination conference and elect somebody who is more vigorous and will beat Trump.”Boris Johnson has said a second Trump presidency could be a “big win for the world”. In his latest Mail column, the former PM mocked the “hysteria” in Britain about the prospect of Mr Trump’s return to the White House.He mocked the Church of England, the BBC and “much of the UK establishment” for a “caterwauling orgy of nose-holding abhorrence” – claiming Mr Trump’s success in the polls had “driven some people to the brink of virtue-signalling derangement”.Boris Johnson and Donald Trump together in 2019 Mr Johnson said his old ally was not a “would-be dictator”, despite his role in inciting a riot that saw the unprecedented attack on the US Capitol building. And he claimed that Mr Trump’s “sheer unpredictability” made him an asset in acting as a “major deterrent to the enemies of the West” – claiming the Republican would not turn his back on Ukraine.Meanwhile, Lord Owen has criticised Rishi Sunak’s Rwanda deportation plan but predicted that the UK would leave the European Convention on Human Rights (ECHR) and the Strasbourg court that oversees the agreement.Asked whether he believed that the UK might have to withdraw from the ECHR, Lord Owen said: “Yes, because they are now telling us how to conduct our immigration policy.” He added: “And they’re using powers that have never been used before just recently on our immigration policy. It’s like all these human rights and lawyer things. You give lawyers a yard, they’ll take a mile.”Lord Owen said David Cameron took the job as foreign secretary because he was “bored”. And he said he had “reservations” about Labour leader Sir Keir Starmer because “I don’t like his record”.He cited Sir Keir’s decision to work under Jeremy Corbyn, and taking a leading role in “trying to stop the [Brexit] referendum decision being passed by the House of Commons”. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailShadow foreign secretary David Lammy’s speech to the Fabian Society calling for a ceasefire in Gaza was disrupted by pro-Palestine protesters.The Labour frontbencher was addressing the think tank’s conference when flag-waving activists mounted the stage shouting: “When will you condemn the genocide? How many more children need to die?”Mr Lammy was ushered backstage, as two people who got on stage to express outrage over support for Israel were escorted out of the building by security.Another protestor in the audience then stood up to launch verbal attacks on the party’s approach to the Middle East conflict and said Mr Lammy “does not speak for me”.Once Mr Lammy returned after being temporarily rushed backstage, he sparked laughter by joking: “I was born in Tottenham, don’t worry.”Amid repeated heckling, the Labour frontbencher told the audience in London’s Guildhall: “We all want to see a sustainable ceasefire in Gaza … I want change through power, not through protest.”The Free Palestine Coalition later said some of its activists had infiltrated the left-wing think tank’s annual gathering to “call out” the senior politician’s position on Gaza.David Lammy continues with his speech after he was interrupted by protestersEarlier, Mr Lammy said Israeli PM Benjamin Netanyahu’s comments opposing the establishment of a Palestinian state after the war against Hamas in Gaza were “unacceptable”.And in his speech, the shadow foreign secretary went on to express support for a Palestinian state when the war ends and branded Benjamin Netanyahu’s rejection of the plans morally and practically “wrong”.“The peaceful quest for a Palestinian state is a just cause and the only path to guarantee a just and lasting peace for both Israelis and Palestinians,” said Mr Lammy.He added: “The Israeli government must immediately change their approach. From the pain and despair, new will and a new political process must emerge to make two states a reality.”Mr Lammy also said a Labour government would start urgent diplomatic talks on the creation of a new “international contact group” to take over from the defunct “quartet” – the UN, US, EU and Russia – to coordinate with western and Arab partners over peace in the region.Pro-Palestinian protesters interrupted Lammy’s speech in relation to his position on Gaza, the grassroots organisation Free Palestine Coalition said It follows similar comments made by Sir Keir Starmer, who also condemned Mr Netanyahu’s dismissal of a two-state solution as “unacceptable”.Hardening his tone towards the Israeli PM, on Friday the Labour leader said it was wrong to suggest that Palestinian statehood was “in the gift of a neighbour”.In a press conference earlier this week, Mr Netanyahu said he opposed US calls for the establishment of an independent Palestinian state as part of any post-war plan.He has vowed to press ahead with the offensive in Gaza for many months despite mounting pressure on Israel to rein in its military action as the scale of death and destruction intensifies.But US president Joe Biden voiced hope that it was still possible even while Mr Netanyahu remains in office, following a call with the Israeli leader on Friday – their first talks in nearly a month.Keir Starmer has said Palestinian statehood is not ‘in the gift’ of Israel Mr Lammy said on BBC Radio 4’s Today programme that Mr Biden was “right”, adding: “And I have to say, I think Netanyahu’s words were unacceptable. Of course, the Palestinian people deserve a state.”He added: “And if they don’t, the consequence of that is either one state in which Benjamin Netanyahu would have to explain how Palestinians and Israelis live side-by-side with equal rights, or no state, in which what he’s really saying is occupation and siege continues.”Sir Keir has faced huge pressure from the party’s grassroots left and pro-Palestine campaigners over his initial refusal to back an immediate ceasefire in the wake of the eruption of violence in October, with the Palestinian death toll approaching 25,000, according to local health authorities.Ten frontbenchers also quit over his handling of the Gaza invasion which followed the Hamas terror attack which saw around 1,200 Israelis killed and 240 taken hostage.In December, Sir Keir began calling for a “sustainable ceasefire”, as he and other leaders among Israel’s western allies began to move away from unqualified support for strikes on Gaza. More

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UKSign up to our Brexit email for the latest insightLondon mayor Sadiq Khan has criticised the “omerta” which has prevented the party from debating whether the UK could re-join the EU single market after Brexit.The senior Labour figure suggested there was a code of silence which stopped Sir Keir Starmer’s party discussing bolder steps to re-integrate with Brussels.Mr Khan – a leading critic of Boris Johnson’s “hard” Brexit deal – has previously called for Britain to consider signing up again to the bloc’s customs union and economic single market.Sir Keir continues to insist there is no way a Labour government would re-join the single market or customs union, and ruled out a deal to re-establish freedom of movement as a “red line” he would not cross.Speaking at a Q&A event at the Fabian Society conference in London on Saturday, the mayor said it was time to have “the conversation” about meaningful alignment.He said re-joining the EU’s economic alliance should be on the table when the current Brexit deal comes up for review in 2025.“I’m not saying today we should rejoin the European Union. What I’m saying is that [shadow foreign secretary] David Lammy is onto something when he’s saying we should have a closer relationship with the European Union.”Mr Khan then criticised the “omerta” – a mafia term for a pact of silence – which means “you can’t talk about being close to the European Union, joining the single market, joining the customs union”.Sadiq Khan giving a speech to the Fabian Society conferenceThe London mayor said “the economic cost of this extreme hard Brexit is huge”, having commissioned a recent study which found that it had already cost the UK economy £140bn.The damning study by Cambridge Econometrics also found that Britain’s decision to leave the EU is set to leave Britain’s economy £311bn worse off by the middle of the next decade.Mr Khan also said Rishi Sunak’s government is using its Rwanda deportation plan “in the same way they used Brexit – as a deflection of all the problems they’re caused to our country”.He called for the Labour party to “speak up” on the benefits of immigration and diversity, rather than try to match the Tories on promises to lower migration levels.Meanwhile, Labour’s shadow Northern Ireland secretary Hilary Benn claimed that the EU will breathe an “audible sigh of relief” if the party wins the general election later this year.The frontbencher touted the benefits of a stronger alliance with the bloc, highlighting both economic and security benefits amid growing geopolitical uncertainty.Keir Starmer at anti-Brexit rally in 2019“The EU is a bit tired of negotiating with Britain,” Mr Benn said in a speech at the left-wing think tank’s event. “And there is no doubt that the arrival of a Labour government, if we win … will be greeted in the EU with a big and audible sigh of relief.“And I think eventually there is going to be a moment when we look at each other across the Channel and say, ‘You know what, we’re still big and important trading partners, we’re still friends and allies, we are co-operating on foreign policy and security and we need to do more of that … so wouldn’t it make sense to have a closer relationship?’”Mr Benn added: “And why does this matter so much? Well, clearly it matters economically but there’s something else that is even more important, and that is building alliances in a dangerous world.”The Labour frontbencher pointed to conflicts in Ukraine, the Middle East and Sudan, tensions over Taiwan, the threat of climate change and the risk of a second Donald Trump presidency.“We should come together with those who share our common values to defend those values in the face of these threats,” he concluded. “The best way to protect your sovereignty is to work with others.”Sir Keir has promised to seek a new veterinary agreement with the EU to align some stands in a bid to ease current trade friction.The Labour leader has also made vague pledge to examine the current Brexit trade deal when it comes up for review in 2025 with a view to making it “better”. More