UK Politics

Rishi Sunak sent his “best wishes” to King Charles III and the Princess of Wales regarding their health.His Majesty is preparing to undergo treatment for an enlarged prostate this week, and Kate has spent a week in hospital being cared for as she recovers from abdominal surgery.The 42-year-old princess is expected to remain hospitalised for between 10 and 14 days in total.Charles, 75, has returned to Sandringham ready to undergo treatment after flying back from Scotland with the Queen on Friday (19 January).He received his diagnosis on Wednesday having had a check-up after experiencing symptoms. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailWatch as Rishi Sunak faces Prime Minister’s Questions on Wednesday, 24 January, after a senior Tory called for his resignation.Sir Simon Clarke, who served in the Treasury while the now-prime minister was chancellor, said that Mr Sunak “is leading the Conservatives into an election where [they] will be massacred”.“If we change the leader to a prime minister who shares the instincts of the majority and is willing to lead the country in the right direction, we will recover strongly in 2024,” the MP for Middlesbrough South and East Cleveland wrote in the Telegraph.Other senior Tories have warned against more damaging infighting before the public go to the polls this year.Home secretary James Cleverly said it would be “foolish” to have further dissent within the party, arguing that it would leave the door open to Sir Keir Starmer and the Labour party.Former defence secretary Ben Wallace echoed Mr Cleverly in dismissing Sir Simon’s call to oust Mr Sunak.“Division and another PM would lead to the certain loss of power,” he said. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailJeremy Hunt’s economic forecasts last year were based on “questionable assumptions” and beyond “a work of fiction”, the public finance watchdog has warned.Richard Hughes, chair of the Office for Budget Responsibility, made the scathing intervention at the House of Lords economic affairs committee yesterday, warning the chancellor had left himself a “tiny” margin for error against the UK government’s debt-reduction rules.Mr Hughes said that policymaking could be improved if chancellors gave themselves a larger margin for error, warning that the current projected headroom “is very small relative to the forecast errors inherent in any forecasting process, including ours”.He said that the £13bn budget headroom forecast in November for the autumn statement was vulnerable to changing assumptions on interest rates and data revisions.Mr Hughes also said that he was disappointed that he was asked to provide a forecast to be published alongside Jeremy Hunt’s autumn statement back in November without being given any information about Whitehall departmental budgets, apart from a headline figure that showed them having fallen over five years.Office for Budget Responsibility provide a forecast to assist the Chancellor in his upcoming budget He told the Committee that the OBR’s forecasts were based on “questionable assumptions” and that some people called his projections “a work of fiction”.He said November’s estimates were “a tiny number compared to the risks you face” and that historically, UK governments have tended to go “very close to the wire” when it came to fiscal rules.The headroom figure is a measure of how much budgetary margin Hunt has to meet his target of reducing the ratio of government debt to GDP in five years’ time, and is vital for determining the extent to which the government can cut taxes or increase public spending.Fresh speculation around the prospect of tax giveaways has been high this week, as both Mr Hunt and Rishi Sunak have stoked up expectations that government may have use the expected headroom for tax cuts.Last week at the World Economic Forum conference in Davos, Switzerland, Mr Hunt hinted heavily that more tax cuts are on the way, saying that tax cuts would be “very pro-growth”.Mr Hunt hinted at the prospect of tax cuts during his visit to Davos last week Official figures released on Friday showed that Hunt may have as much as £20bn spare in his March budget, based on higher-than-expected tax receipts and lower inflation and reductions in interest rates.The government is expected to use this windfall to commit to tax cuts rather than large increases of public spending, in order to satiate demands from the right of the Conservative party and stoke favour with the public in the run up to a general election.The Treasury said: “While we have doubled our headroom since March, from £6.5 billion to £13 billion, it remains low by historical standards and can be wiped out by changing economic conditions.” It added: “That’s why we must stick to our plan to reduce debt by growing the economy and being responsible with spending.” More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailDavid Cameron will meet Israeli and Palestinian leaders during a visit to the Middle East in a bid to ease the “desperate” situation in Gaza. The foreign secretary will hold talks with Benjamin Netanyahu in which he will raise concerns about the high number of civilian casualties and call for more and faster action to get life-saving aid into the besieged enclave. He is also expected to press the need for water, fuel and electricity to be restored as he calls for an “urgent humanitarian pause” . And he will reiterate demands that Hamas agree to release of all hostages and give up control of Gaza, as well as hold talks with Qatar and Turkey. He will arrive in the Middle East as tensions run high, following deadliest day for Israeli forces of the Gaza war. President Netanyahu is also facing increasing pressure over his leadership and his handling of the war effort. Rishi Sunak has resisted calls to back an immediate ceasefire, arguing for ‘humanitarian pauses’ to allow politicians to build a cessation in the fighting that can last. Foreign Secretary David Cameron said: “No-one wants to see this conflict go on a moment longer than necessary. An immediate pause is now necessary to get aid in and hostages out. The situation is desperate. “This week I am in the Middle East working with partners to help build a plan to move from that pause to a sustainable, permanent ceasefire without a return to hostilities. “Such a plan would require Hamas to agree to the release of all hostages, Hamas to no longer be in charge of Gaza launching rocket attacks at Israel, and an agreement in place for the Palestinian Authority to return to Gaza in order to provide governance and services and, increasingly, security.” Twenty-four people were killed on Monday in the deadliest day for Israeli forces in its three-month war against Hamas, as Palestinian casualties also continue to climb. During his visit Lord Cameron will travel to Israel, the occupied Palestinian territories, as well as Qatar and Turkey, both key players in the region. In Israel, the Foreign Secretary will also speak to the Israeli foreign minister as he calls for more crossing points for aid to be opened for longer. Foreign secretary Lord Cameron (James Manning/PA)He will also meet President Abbas from the Palestinian Authority to highlight the UK’s long-term support for a two-state solution. In Qatar, he is expected to hold talks on efforts to secure the safe release of hostages, pressing the cases of British and dual nationals. The war has displaced an estimated 85 per cent of Gaza’s population and left more than 25,000 Palestinians dead, according to health officials in the Hamas-run territory.The United Nations and international aid agencies also warn the fighting has caused a humanitarian disaster, with a quarter of Gaza’s 2.3 million people facing starvation. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailUnavoidable hidden charges for online consumers – or “drip pricing” – is set to be banned under new laws to force businesses to be upfront with their customers.Fake reviews will also be added to a list of banned business practices, and firms will have to provide clearer labelling for prices on supermarket shelves, the Department for Business and Trade (DBT) said, following a consultation into consumer transparency.The measures will be legislated for as part of the Digital Markets, Competition and Consumers Bill as it progresses through Parliament.Drip pricing occurs when consumers are shown an initial price for an item or service, only to find additional fees are revealed later in the checkout process.Research suggested it was widespread and used by 54% of entertainment providers, across 56% of the hospitality industry, and 72% of the transport and communication sectors, the DBT said.We are committed to ensuring information given to consumers is clear and they are not misled in any wayGraham Wynn, British Retail ConsortiumUnavoidable fees cost consumers £2.2 billion every year, it added.Under the new rules, mandatory fees must be included in the headline price or at the start of the shopping process, including booking fees for cinema and train tickets.Optional fees such as airline seat and luggage upgrades for flights will not be included in the measures.Minister for Enterprise, Markets and Small Business Kevin Hollinrake said: “From supermarket shelves to digital baskets, modern day shopping provides customers with more choice than ever before. But with that comes the increased risk of confusion, scams and traps that can easily cost the public more than they had planned.“Today’s announcement demonstrates the clear steps we’re taking as a government to ensure customers can compare purchases with ease, aren’t duped by fake reviews, and have the sting of hidden fees taken away.”The DBT said reviews were found to be used by 90% of consumers and contributed to the £224 billion spent in online retail markets in 2022.The Competition and Markets Authority (CMA) has contributed to new guidance to tackle fake reviews, which would make website hosts accountable for reviews on their pages.Meanwhile, the Price Marking Order (PMO), which requires traders to display the final selling price, and where appropriate the final unit price – for example the price per kilogram – will also be reformed.The DBT said proposed changes would ensure unit pricing was consistently applied, including to promotions and special offers, to help consumers compare products easily and identify what items represent the best value.These are expected to be issued in the spring.British Retail Consortium assistant director Graham Wynn said: “The BRC looks forward to continuing to work with officials as practical detailed implementation plans are developed. We are committed to ensuring information given to consumers is clear and they are not misled in any way.”A CMA spokeswoman said: “It’s positive to see the Government pushing ahead with changes to tackle behaviour that misleads shoppers or leaves them out of pocket – which includes accepting the CMA’s recommendations for clearer groceries pricing.“Stronger laws and tools, including giving the CMA the power to fine companies for breaching consumer law under the DMCC Bill, will bolster the work we are already doing to protect consumers.” More

A Tory minister appeared to confuse Art Attack presenter Neil Buchanan for a BBC journalist as he discussed “bias” at the broadcaster.Huw Merriman appeared to accuse the children’s TV star of giving “one side of the story” in his reporting on Universal Credit – but he has never done so, instead presenting the arts and crafts show from 1990 until 2007.BBC social affairs correspondent Michael Buchanan has reported on Universal Credit.It came after culture secretary Lucy Frazer accused the BBC of bias amid plans for Ofcom’s reach over the broadcaster to be extended. More

Dawn Butler was overcome with emotion as she joined MPs in paying tribute to Sir Tony Lloyd in the House of Commons on Tuesday, 23 January.Remembering her former colleague’s kindness when she was first elected, the Labour former minister recalled how Sir Tony advised her not to worry as she was “often going to feel lost” in parliament and invited her to ask “any silly questions” she might have.“I have passed that on to new MPs that come in,” Ms Butler said of Sir Tony’s legacy.Sir Tony died on 17 January days after announcing that he was suffering from an incurable form of leukaemia. More

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailJeremy Hunt has been handed a boost ahead of his March Budget after government borrowing came in less than expected in December.The chancellor, who has compared himself to his tax-cutting predecessor Nigel Lawson and vowed a giveaway this spring, will now have more wiggle room to lower taxes.The government borrowed less last month than in any December for four years, but debt remains at historical highs, official figures showed.The Office for National Statistics (ONS) said that public sector net borrowing hit £7.8bn during the month.Hunt was handed a boost ahead of his March budget by lower than expected borrowing figures That was around half, or £8.4bn less than, a year earlier and the lowest in any December since 2019. Experts had expected it to hit £11.4bn.And, thanks to lower inflation, the interest that the government paid on loans was £4bn in December 2023, which is £14.1bn less than a year earlier.The Resolution Foundation think tank said Mr Hunt had been handed a “timely boost” ahead of the March Budget.Senior economist Cara Pacitti said: “Lower-than-expected inflation late last year has reduced debt interest costs and given the chancellor a timely fiscal boost ahead of his Budget in March.”And analysts Capital Economics said Mr Hunt could still meet his fiscal rule, that debt should be falling as a share of national income in five years’ time, with about £20bn to spare for tax cuts.Deputy chief UK economist Ruth Gregory said that will probably allow Mr Hunt to freeze fuel duty in April 2024 at a cost of around £6bn a year, but perhaps also to announce more crowd-pleasing measures. She added that a a 1p cut to income tax would cost £6.9bn a year and “maintain fiscally prudent appearances”.It comes after Mr Hunt claimed that the government’s “careful management of the economy” meant he could “start cutting taxes again”.Hunt and Rishi Sunak hope a tax giveaway will help turnaround the Tories’ dire poll ratings He went on to liken his record to that of the late Lord Lawson, who presided over a turnaround in the economy with a tax-cutting policy to help Margaret Thatcher win her third term in 1987.Mr Hunt wrote: “Just as Nigel Lawson positioned the City of London for the finance boom in the 1980s, this period of Conservative government has seen the UK positioned for the massive technological boom we’re set to see in the coming years.”It is thought that Mr Hunt will opt for personal tax cuts, through either national insurance or income tax, to please voters ahead of an election expected this autumn, as the Tories lag Labour in the polls.Mr Sunak has also promised there is “more to come” in March, after the government cut the rate of national insurance in November’s autumn statement.But Ms Pacitti warned that lower inflation is also likely to mean lower tax receipts, affecting how much room for manoeuvre Mr Hunt will have.And total net debt was still £2.69 trillion at the end of the year, which is around 97.7 per cent of the size of the economy, or gross domestic product (GDP).Despite the fall in net borrowing last month, the debt to GDP ratio is 1.9 percentage points above last December and still at levels not seen since the early 1960s.“Protecting millions of lives and livelihoods during Putin’s energy shock and a once-in-a-century pandemic has created economic challenges,” said chief secretary to the Treasury Laura Trott.“However, it is right that we pay back these debts so future generations are not left to pick up the tab. Because of this government’s decisive action, the economy is now beginning to turn a corner. Inflation has more than halved.“Debt is on track to fall as a share of the economy. And we have been able to afford tax cuts for 27 million working people, and an £11bn tax cut to drive business investment.”Interactive Investor’s head of investment Victoria Scholar said: “The reduction in December’s borrowing is a win for the government, providing some fiscal wiggle room to cut taxes in a crucially important year for the Conservatives.”“The fall in inflation acts as a tailwind to the public purse by reducing the government’s debt interest costs which jumped on the back of rising inflation and interest rates,” she added. More