UK Politics

A minister has heaped more pressure on Rachel Reeves over her decision to accept free tickets to see Sabrina Carpenter perform at the O2, saying he does not “personally think it’s appropriate”. The chancellor had faced criticism for attending the show earlier this year ahead of imposing sweeping cuts to spending, including the benefits bill, as she seeks to balance the books – with critics arguing the gifts are an insult to the public during an ongoing cost of living crisis.The latest saga threatens to reignite the freebies row that engulfed the government last year after a number of cabinet ministers, including the prime minister, accepted tickets to the Taylor Swift Era’s tour, at a total value of more than £23,000.Matthew Pennycook More

The former boss of Tesco has said out-of-work young people should be made to do military training in exchange for benefits. Amid a deepening row over Chancellor Rachel Reeves’ welfare cuts, the supermarket’s ex-chairman John Allan said welfare payments should be “conditional on military training for people who are not working”. Mr Allan said there is “no reason to believe” those not in education, employment, or training “are any less prepared to work, provided they’re given the training and given the opportunities”. Tesco’s ex-chairman said young people could be coerced into military training More

Reducing or removing a tax on big tech companies would have “little impact” on the economy, but will be a “tough balancing act” for the Chancellor to manage, one expert has said.Media reports have suggested Britain could slash the digital services tax (DST) – a levy on big tech companies – in order to stave off American tariffs by appeasing US President Donald Trump.But reports that the tax could be slashed or abolished come as Chancellor Rachel Reeves is expected to announce spending cuts for some Government departments in her spring statement on Wednesday, after having made cuts to welfare which have proved unpopular with Labour backbenchers.Matthew Holman, an AI (artificial intelligence) lawyer at Cripps, and an expert in the tech and data space, said it was likely the Chancellor was trying to keep the peace between large tech firms who appear to have influence in the Trump White House and an “increasingly unsympathetic UK electorate”.“The reason this is a tough balancing act for the Chancellor is simple: the domestic economy is weak and the national taxation and spending agenda appears all-consuming,” Mr Holman told the PA news agency.“The OBR has forecast lower growth, and on Wednesday the Chancellor is reportedly going to cut £5 billion from welfare spending as well as announce reduction in Civil Service head count.“It must, at least arguably, be the case that some of these cuts would not be needed if the UK continued to collect DST from US corporations?“Why is the UK government apparently letting those US corporations off of tax due here and at the same time taking money from hardworking families?“I should stress that is not my opinion, but it is the likely flak coming in the direction of the Chancellor from the opposition benches and further afield.“However, should the Chancellor fail to appease the US administration, the already weak UK economy could face further shocks as a result of a fresh wave of tariffs from Washington which, as I understand it, are due to be announced on April 2.“Which is the worse fate? That is the balancing act.”Mr Holman said that removing or reducing the tax would have “very little” impact on the UK economy as the amount it brings in a year is just under 1% of the total tax levied in the UK, but added: “This is far more about perception than actual impact on taxation.”The UK is keen to position itself as a key investment hub for US tech giants, in particular when it comes to artificial intelligence.The Technology Secretary Peter Kyle recently visited the US to spread that message, but US tech firms and both the Trump and previous Biden administrations have not been supportive of the digital services tax and similar measures in EU countries.They are seen as interim measures before the introduction of global tax reform for digital services that would remove perceived inequalities in digital services taxes which mean large multinational firms were making large revenues from countries such as the UK but not paying any tax on them.But Mr Holman said ongoing US hostility to the reform proposals, which have been led by the OECD (Organisation for Economic Co-operation and Development) meant it was unlikely to see them introduced soon.“The UK government website says that it plans to remove DSTs once the OECD reforms are passed. Unfortunately, those reforms have always been controversial and remain so, and are taking a long time to become law,” he said.“They were not favourably viewed by the Biden administration and the last deadline for implementation – June 2024 – passed without resolving deadlock.“In light of the Trump administration’s new approach to international taxes and tariffs, we should not expect to see the OECD reforms becoming law any time soon.Both the Biden and Trump administrations were not supportive of the OECD proposals or any attempt to tax US digital service providers in non-US territories.“The taxes are considered as unfairly discriminating against US corporations’ successes, and is further exacerbated by the perception that the EU and UK is taking the mickey,” Mr Holman said.“The US tech companies have been lobbying US officials to tackle this issue and, in light of this weekend’s developments, it seems that the interim DST measures will be ditched – at least in the UK.“The Trump administration’s ‘America First’ foreign and fiscal policies seem to be causing the UK government to think again.”On Monday, the Prime Minister’s spokesman would not be drawn on whether slashing the digital services tax in exchange for a reprieve on American tariffs was part of Sir Keir’s discussions with Mr Trump, and insisted the Government would only strike a deal “in the national interest”.Meanwhile, Ms Reeves said she does not “recognise” reports ministers may means test free school meals as part of the cost-cutting drive across Government and insisted the digital services tax was “hugely important”. More

Labour revealed the extent of its welfare reforms ahead of the spring Budget as work and pensions secretary Liz Kendall delivered an announcement in Commons on the plans.Taking to the stand, the minister said the welfare system is “failing the very people it is supposed to help and holding our country back”.“This government is ambitious for our people and our country and we believe unleashing the talents of the British people is the key to our future success,” she added.Ms Kendall went on to announce a sweeping number of reforms, with savings amounting to £5 billion by 2029/30 – the end of this parliamentary term.Liz Kendall announced Labour’s welfare plans in Commons More

Thousands of new homes in England will be built as part of the biggest boost in social and affordable housebuilding in a generation, the government has said.Chancellor Rachel Reeves vowed the £2 billion in grant funding to deliver up to 18,000 new homes in England will go some way to “fixing the housing crisis”.The funding is described by the government as a “down payment from the Treasury” ahead of longer-term investment in social and affordable housing expected to be announced later in the year.The government expects at least half of the 18,000 would be social homes, as charities urged that the “vast majority” should be for social rent amid record highs in homelessness across the country.The announcement on Tuesday comes a day ahead of the spring statement, in which the Chancellor is expected to announce spending cuts for some government departments, having already unveiled cuts to welfare – which have proved unpopular with Labour backbenchers – and amid reports the digital services tax – a levy on big tech companies – could be slashed in order to stave off American tariffs.The housebuilding boost is aimed at helping to fulfil the government’s pledge to build 1.5 million new homes over the next five years.Last year, experts at the New Economics Foundation said 90,000 social homes would need to be built by as early as 2027/28 to meet the Government’s target and that by the final year of this parliament, ministers would “need to go beyond this and deliver 110,000 new social homes to ensure 1.5 million homes are built”, amounting to a total of 365,000 social rent homes over the next five years to hit the target.The Ministry of Housing, Communities and Local Government said thousands of new affordable homes will start construction by March 2027 and be completed by July 2029.They said the funding will also “unlock development and opportunity” on sites that are ready and waiting for construction to begin in locations including Manchester and Liverpool.The chancellor announced the plans on a visit to an affordable housing site in Stoke-On-Trent with deputy prime minister Angela Rayner.Ms Reeves said: “We are fixing the housing crisis in this country with biggest boost in social and affordable housebuilding in a generation.“Today’s announcement will help drive growth through our Plan for Change by delivering up to 18,000 new homes, as well as jobs and opportunities, getting more money into working people’s pockets.”Her cabinet colleague Ms Rayner said: “Everyone deserves to have a safe and secure roof over their heads and a place to call their own, but the reality is that far too many people have been frozen out of homeownership or denied the chance to rent a home they can afford thanks to the housing crisis we’ve inherited.“This investment will help us to build thousands more affordable homes to buy and rent and get working people and families into secure homes and onto the housing ladder.“This is just the latest step forward in delivering our Plan for Change mission to build 1.5 million homes, and the biggest increase in social and affordable housing in a generation.”The number of households on local authority waiting lists, or registers, for social housing in England stood at 1,330,611 in 2024 – the highest figure in a decade.The previous highest figure was 1,370,410 in 2014.The government cautioned that the figure for those on waiting lists is likely to “overstate the number of households who still require social housing at any one time”.It said this is because some households can be recorded on more than one council’s list and registers are reviewed at varying times to remove those who no longer require housing.Figures published last month showed that both the number of households in temporary accommodation – a form of homelessness – and the number of children in this situation were at record highs.The number of children in temporary accommodation hit 164,040 as of the end of September – up 15% in a year and is the highest since records for this measure began in 2004.The number of households in temporary accommodation was also at a record high of 126,040, having increased 16% in a year.Matt Downie, chief executive of housing and homelessness charity Crisis, said Tuesday’s announcement is “hugely welcome” and hopefully “signals the beginning of a social housebuilding programme that will radically shift this country’s response to homelessness, putting housing at the heart of the solution”.He urged the Government to “ensure that the vast majority of the initial 18,000 homes are for social rent so that people facing homelessness can access them”.This plea was echoed by Shelter which said the funding is a “positive step” but that it is “vital that the majority of this funding is directed towards social rent housing, not expensive alternatives that won’t help struggling families”.The charity’s chief executive, Polly Neate repeated their call for a commitment to build 90,000 social homes a year, saying this vow was come in the June Spending Review.She added: “This is the Government’s moment to prove it is serious about tackling the housing emergency. Without a major funding commitment to 90,000 social homes a year for ten years, homelessness will keep spiralling, and millions will remain trapped in unstable, overpriced housing.”But Conservative shadow housing secretary Kevin Hollinrake said without cutting the numbers of people crossing the Channel in small boats, there was “simply no way for the government to stop every single home built with this funding from simply coping with the population growth from illegal migrants, many of who might not even have left Calais yet”.He added: “Only the Conservatives under new leadership will take action to stop illegal crossings and prevent millions from gaining access to social housing.”People in the UK illegally are unable to apply for social housing. Those who have been granted asylum can apply, but the Chartered Institute for Housing has said their lack of a “local connection” means they have less chance of securing a social home than longstanding UK residents.Meanwhile, Ms Reeves said she does not “recognise” reports ministers may means-test free school meals for young children as part of the cost-cutting drive across government and insisted the digital services tax was “hugely important”.Ahead of the spring statement, the prime minister told BBC Radio 5 Live on Tuesday that he wanted to “take some money out of Government” and was looking “across the board” at where to make spending cuts.Sir Keir insisted the government had made “record investments” at last October’s budget and that the statement would not “alter the basics” of public spending.He and the chancellor face a difficult fiscal situation, as Ms Reeves has repeatedly said she will not budge from her fiscal rules, which rule out borrowing to fund day-to-day spending.This has led to mounting pressure over how to balance the books – by raising taxes or cutting spending – amid disappointing growth figures and higher-than-expected borrowing.Although the chancellor is expected to announce a series of spending cuts on Wednesday, she has faced calls from some quarters to raise taxes on the richest instead.The charity Oxfam is among those calling for a 2% wealth tax on people with assets worth more than £10 million, saying a YouGov poll of 2,257 people showed 78% would back such a move, while 77% would rather see higher taxes on the rich than cuts in public spending. More

One of Britain’s leading economists has warned a wealth tax would be almost impossible to implement, despite growing support for the policy in the wake of the benefits cuts unveiled by the government last week. Paul Johnson, the director of the Institute for Fiscal Studies (IFS), warned that “no country in the world has ever successfully had a wealth tax that’s raised serious money”, saying the levy poses significant administrative problems.It comes as new polling shows the British public overwhelmingly support such a tax, while a growing number of Labour MPs have urged the government to introduce it instead of making spending cuts. Paul Johnson More

The Government has been urged to “grasp the nettle” in tackling technology and social media’s impact on young men’s mental health.Jake Richards, Labour MP for Rother Valley, described the increase in male suicides as “part of a wider storm we face with worsening mental health and mental health provisions for men”.According to mental health charity Mind, in 2023 6,069 deaths registered in England and Wales were caused by suicide, with the rates of suicide being higher for men, at around 75%.During an adjournment debate on male suicide in Rotherham, Mr Richards made reference to the Netflix show Adolescence – which he said shines a light on “how the internet can remould ideas of masculinity and purpose”.He said: “Men, especially young men, are spending less time outside, less time meeting people and communicating in person, all the things that make us far happier and healthier.“They’re often sat alone for hours being bombarded with algorithms showing unrealistic representations of life or communicating through anonymous group chats.“Research shows self-harm content has sometimes been allowed to flourish on social media by companies failing to remove explicit images and encouraging those engaging with such content to befriend one another.“And the arrival of smartphones has taken place parallel to sharp rises of depression and anxiety in our young people. Of particular concern is the impact mobile phones has on our young people.“The average 12-year-old now spends 29 hours a week on their phone, the equivalent to a part-time job.”He added: “Since 2010, the average time teens spend with friends each day has fallen by 65% so I applaud recent Government announcements about reviewing these areas of policy, but I urge them to grasp the nettle when it comes to technology, phones, young people and mental health.“In a decade’s time, I believe we will wonder why we did not do so far sooner.”Labour MP Amanda Martin said suicide was the leading cause of death for men aged 20-49 in her constituency of Portsmouth North, and told MPs how it had impacted her own sons.She said: “As the mum of three lads, or should I say, young men, it is heartbreaking to know that they have had first-hand experience in their friendship groups of male suicide.“Fortunately, I can say that not all of those attempts were successful in ending their lives, but some were. This has left a lasting impact on their outlook, on their friendships, and has been devastating to those around them.“It is time for the Government to take bold steps in tackling this crisis. We need targeted funding for mental health services in combination, with strong support for those at risk, whether they be veterans, construction workers or young men, we must create safe spaces for men to open up, and we must ensure that no man feels that suicide is his only option.”Health minister Stephen Kinnock said the Government is taking steps to address online harms and assessing what else can be done, including on “harmful content shared in pro-suicide websites and forums”.He added there is “still uncertainty” over the relationship between screentime, social media use and child development, with the Department for Science, Innovation and Technology expected to publish research in May.Mr Kinnock told MPs: “I would like to end with a call to action: suicide is everyone’s business.“When we improve men’s health, the benefits can ripple through families, communities, societies and the economy.“When we strive to improve men’s health, this will not just transform the lives of boys and men, it will also transform the lives of their wives, mothers, sisters, partners, mates, neighbours, children, teachers and doctors.“That’s why I want to strongly encourage all the men listening to go to the Change NHS online portal to give their views on how to build an NHS fit for the future through our 10-year health plan.“Together we will transform healthcare for men in the Rother Valley, in the north of England and across our country.” More

The UK spends more than twice as much on benefits for working-age people as it does on defence each year, a new analysis by The Independent can reveal, laying bare the shocking scale of Britain’s welfare bill.As Sir Keir Starmer faces a potential backlash over plans to end disability payments for around 1 million people, figures from the Department for Work and Pensions show the government spend on all working-age benefits is £117.6bn – representing 4.5 per cent of GDP and is 9.2 per cent of the government’s overall budget. That is more than double the amount spent on defence (£56.4bn) and more than the entire education budget (£116bn).The former head of the Royal Navy, Admiral Lord West warned: “This is unsustainable if we wish to avoid war and survive as a nation.”Work and pensions secretary Liz Kendall leaves Downing Street, London, after a Cabinet meeting More