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Rachel Reeves has warned “more difficult choices” are coming after axing winter fuel payments for many pensioners in a bid to help plug a £22 billion black hole in the public finances.
The chancellor unveiled plans to tackle the projected overspend, including cuts to infrastructure projects and an end of winter fuel payments for people not in receipt of means-tested benefits.
She accused the previous Tory government of “covering up” the truth about the UK economy as she revealed the results of the Treasury spending audit she commissioned during a speech in the Commons on Monday.
Afterwards, Ms Reeves doubled down on accusations that Jeremy Hunt “lied” to the public and to MPs during the election campaign about the state of public finances.
A new Office of Value for Money, a Labour manifesto pledge, will start work immediately to identify and recommend areas where the government can save money in the current financial year, she said.
The office is expected to announce public cuts worth billions to plug the gap in the public finances that could see the cancellation of projects including the road tunnel near Stonehenge and Boris Johnson’s New Hospital programme.
Key Points
- Labour government scraps winter fuel payments for pensioners
- Chancellor warns ‘more difficult choices to come’
- Reeves accuses Hunt of ‘lying’ about the state of public finances
- Jermey Hunt ‘angered’ by Reeves’ £22bn black hole claim
- OBR announces review into Tories’ spring budget forecast
Pictured: Ministers arrive in Downing Street ahead of cabinet meeting with Starmer
Watch: Reeves and Hunt in fiery clash over public finance black hole: ‘How dare they?’
Reeves and Hunt in fiery clash over public finance black hole: ‘How dare they?’
The chancellor has suggested the Conservatives “put party before country” as she blamed Liz Truss, Rishi Sunak and Jeremy Hunt for a black hole in public finances. Rachel Reeves told the House of Commons on Monday 29 July that the previous government “continued to make unfunded commitment after unfunded commitment, knowing that the money was not there”. “The scale of this overspend is not sustainable. Not to act is simply not an option,” she added, saying the Tories “hid” the true extent of Treasury overspend from the public. Her claim was met with a disgruntled look from Mr Hunt, the former chancellor.
Salma Ouaguira30 July 2024 10:00 1722329739Exclusive: Peer accused of Islamophobia after claiming ‘radicals will take us over through power of the womb’
A peer has been accused of Islamophobia after giving a “disgusting and outrageous” speech in the House of Lords.
Lord Pearson of Rannoch claimed “radicals” plan to “take us over through the power of the womb and the ballot box” after discussing government plans to improve counter-terrorism measures at public venues following the King’s Speech.
“The sharia allows Muslim men to have four wives at a time, most of whom are having at least two children, so the Muslim population is going up 10 times faster than our national average,” he told the House of Lords last Thursday (25 July).
“On past trends, Birmingham and nine other English local authorities will be majority Muslim by 2031. The radicals’ plan is to wait until they can take us over through the power of the womb and the ballot box.”
Our race correspondent Nadine White has the full story:
Outrage as peer claims Muslim ‘radicals will take us over through power of the womb’
Exclusive: Leading Muslim groups are lodging official complaints to the House of Lords about Lord Pearson of Rannoch’s speech
Salma Ouaguira30 July 2024 09:55 1722329416What is the universal winter fuel payment?
The chancellor has confirmed she is ending universal winter fuel payments, which are currently paid to all pensions.
She said those not receiving pension credits or other means tested benefits will not receive winter fuel payments from this year onwards.
Under the previous plans, those born before September 25, 1957, could have received between £250 and £600 to help pay for the heating over the winter period.
Most received the grant, which was available to those on a State Pension, Pension Credit, Carers Allowance and Income Support.
French border control zone at Dover to be expanded ahead of new EU rules
The French border control zone at the Port of Dover will be expanded to reduce the risk of queues at peak times when new EU rules come into force.
Under the EU’s Entry/Exit System (EES), expected to come into force in the Autumn, travellers entering from the UK and other non-EU countries will have to register their details at the EU border and provide biometric data.
As the Government prepares for the change, Home Office Minister Seema Malhotra laid a statutory instrument in Parliament on Monday to allow French border officials to operate in an expanded zone at the Port of Dover.
It will commit the Home Office to working with the French Government, local authorities and businesses to streamline EU border checks at the port.
The change in law is part of the preparations to minimise the risk of traffic disruption. The aim is to create more space to process passengers for a better customer experience.
The Home Office is working with the French Interior Ministry to amend the border control arrangements between the two countries to accommodate the expanded zone.
The port plans to change the location of passport control for passengers arriving to board the ferry from the Eastern Docks to a new border control zone at its Western Docks.
The port has also been making major upgrades to its port infrastructure, including building bespoke facilities to carry out the checks.
VOICES Andrew Grice: There may be trouble ahead, but the Reeves plan might just work
There may be trouble ahead, but the Reeves plan might just work
With her fury-filled Commons statement on public overspending, the chancellor of the Exchequer accused the previous Tory administration of a cover-up – and may also have secured Labour a decade in power, says Andrew Grice
Salma Ouaguira30 July 2024 09:30 1722327916Watch: Rachel Reeves calls Jeremy Hunt ‘liar’ over £22bn black hole in UK finances
Rachel Reeves calls Jeremy Hunt ‘liar’ over £22bn black hole in UK finances
Rachel Reeves called Jeremy Hunt a "liar" after accusing the previous government of leaving almost £22bn of unfunded commitments that it had “covered up from the country”. The chancellor has announced that 10 million pensioners will lose out on winter fuel payments in an attempt to fill the black hole. Ms Reeves also announced that Labour has made a 22 per cent two-year pay offer to junior doctors while teachers and NHS staff will receive a 5.5 per cent rise. Ms Reeves told Sky News on Tuesday that her predecessor "knowingly and deliberately" hid the true state of public finances. "He lied, and they lied during the election campaign about the state of public finances," she added.
Salma Ouaguira30 July 2024 09:25 1722327616Tory party installs leadership race ‘yellow card’ to stop in-fighting
The Conservative Party has put in place a “yellow card” system to prevent in-fighting during its leadership race, with the six candidates in the running to replace Rishi Sunak being confirmed on Monday.
Mr Sunak resigned in the wake of his party’s poor result at the general election but will stay on as an interim leader until his successor is decided.
Kemi Badenoch, Priti Patel, Robert Jenrick, Mel Stride, Tom Tugendhat and James Cleverly have all received the 10 nominations necessary to enter the race, chair of the 1922 Committee Bob Blackman confirmed.
Tory party installs ‘yellow card’ system to stop in-fighting during leadership race
Kemi Badenoch, Priti Patel, Robert Jenrick, Mel Stride, Tom Tugendhat and James Cleverly have all received the 10 nominations necessary to enter the race
Salma Ouaguira30 July 2024 09:20 1722327196Government announces pay rises for police, prison staff and judiciary
Police chiefs welcomed a pay rise for officers but warned it will “not be without impact” for forces having to absorb some of the costs.
Police officers in England and Wales are in line for a 4.75% pay rise from September.
Home Secretary Yvette Cooper said officers of all ranks will receive the extra money this year.
In a written statement to Parliament, she said the Government “values the vital contribution of police officers across the country who work tirelessly to keep us safe every single day” as she confirmed it was accepting recommendations from the Police Remuneration Review Body in full.
The Home Office “will provide £175 million additional funding in 2024-25 to forces to help with the cost of the pay increase”, she said, adding: “While the recommendation for a consolidated award of 4.75% is significantly above what had been budgeted for in the 2021 Spending Review, it is right that we accept it in full.
“Police officers have a crucial role to play in delivering the Government’s manifesto commitments to make Britain’s streets safe and increase public visibility through neighbourhood policing.”
Salma Ouaguira30 July 2024 09:13 1722326716VOICES Andrew Grice: There may be trouble ahead, but the Reeves plan might just work
There may be trouble ahead, but the Reeves plan might just work
With her fury-filled Commons statement on public overspending, the chancellor of the Exchequer accused the previous Tory administration of a cover-up – and may also have secured Labour a decade in power, says Andrew Grice
Salma Ouaguira30 July 2024 09:05 Newer1 / 10OlderDisclaimer: The copyright of this article belongs to the original author. Reposting this article is solely for the purpose of information dissemination and does not constitute any investment advice. If there is any infringement, please contact us immediately. We will make corrections or deletions as necessary. Thank you.
