UK Politics

Sign up for the View from Westminster email for expert analysis straight to your inboxGet our free View from Westminster emailCabinet minister Grant Shapps has condemned “disappointing” comments by Israel PM Benjamin Netanyahu rejecting Palestinian statehood.The defence secretary saying the UK government remains “wedded” to the idea of a two-state solution – arguing that there “isn’t another option”.Rishi Sunak’s government has largely resisted criticism of Israel since it launched strikes on Gaza in the wake of the 7 October Hamas terror attack.But Mr Shapps offer a strong rebuke of Mr Netanyahu’s rejection of Palestinian sovereignty and insistence his country needs full security control over the territories.“I think it’s disappointing to hear Benjamin Netanyahu saying he doesn’t believe in a two-state solution,” he told Sky News’ Sunday Morning With Trevor Phillips.Mr Shapps added: “In fairness, he’s said that all of his political career, as far as I can tell. I don’t think we get to a solution unless we have a two-state solution.”Addressing the Netanyahu remarks on the BBC’s Sunday With Laura Kuenssberg programme, Mr Shapps said: “Palestinians deserve a sovereign state. Israel deserves to have the full ability to defend itself, its own security.”Grant Shapps visited Israel in December to offer support in wake of Hamas terror attack He added: “Now, you’ll get a lot of different views within the Israeli government, of course, it is a rainbow coalition. So we very much distinguish between the views of individuals and our overall support for Israel as a country.”Mr Netanyahu raised the stakes with the US, UK and other allies by doubling down on his rejection of a two-state solution with a statement on X late on Saturday.“I will not compromise on full Israeli security control over the entire area west of Jordan – and this is contrary to a Palestinian state,” the Israeli leader said.It came in defiance of Joe Biden, who hours earlier had voiced hope that a two-state solution was still possible even while Mr Netanyahu remains in office, following a call with the Israeli leader.The US president had claimed that Mr Netanyahu was not opposed to all two-state solutions.Israeli PM Benjamin Netanyahu insists his country must take control of Gaza But in a new statement, the Israeli prime minister’s office said Mr Netanyahu told Mr Biden that “after Hamas is destroyed, Israel must retain security control over Gaza to ensure that Gaza will no longer pose a threat to Israel, a requirement that contradicts the demand for Palestinian sovereignty”.Sir Keir Starmer’s Labour party has also rebuked Mr Netanyahu’s position. Shadow home secretary Yvette Cooper on Sunday echoed the Labour leader and shadow foreign secretary David Lammy in saying: “Those words from Netanyahu were completely unacceptable.”She told Sky News: “Statehood of a people is not in the gift of its neighbour, it is the right of a people and it is the right of the Palestinian people.”Mr Lammy on Saturday said Mr Netanyahu’s stance would mean “occupation and siege continues” in Gaza, where the Palestinian death toll is now above 25,000, according to local health authorities.David Lammy dashes off stage as speech interrupted by pro-Palestinian protestersMr Netanyahu 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.The White House earlier this week announced it was the “right time” for Israel to lower the intensity of its military action in Gaza.Israel launched the offensive after an unprecedented cross-border attack by Hamas on 7 October, in which 1,200 people were killed and some 240 others taken hostage.Roughly 130 hostages are believed by Israel to remain in Hamas captivity. Israel’s assault on Gaza has been one of the deadliest and most destructive military campaigns in recent history. More

Rishi Sunak has “no interest” in ending the long-running UK train strikes, Simon Calder has suggested.The Independent’s Travel Correspondent also described Mr Sunak as the “most anti-rail prime minister we have ever seen” during an appearance on BBC Politics London on Sunday 21 January.“He’s got no interest in settling the incredibly long-running – we are now in the third calendar year of strikes by Aslef train drivers – and it’s now increasingly seen as an election wedge issue,” Mr Calder said.“The government doesn’t really care.” More

Keir Starmer will “undoubtedly” be the next prime minister, Scotland’s first minister has suggested.Humza Yousaf told Laura Kuenssberg that he is “very willing” to work with an incoming Labour government.“I think he absolutely will be [the next prime minister],” Mr Yousaf said, in an interview that aired on Sunday morning (21 January).“I’ve written to Keir Starmer, I’ve invited him to Edinburgh for a discussion. I’d like to speak to Keir Starmer as the man who will undoubtedly be the next prime minister of the United Kingdom.” More

Grant Shapps suggested “accidents sometimes happen” as he responded to two Royal Navy ships colliding in Bahrain.Video widely shared on social media appeared to show HMS Chiddingfold reverse into HMS Bangor in the Middle Eastern port.The defence secretary was asked “how on earth” the incident happened during an interview with Laura Kuenssberg on Sunday 21 January.“I immediately spoke to the first sea lord in charge of the navy and he has confirmed that an investigation is under way,” Mr Shapps said.“We look forward to finding out what the causes were.” More

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