UK politics live: Labour rejects claims it’s returning to austerity ‘ahead of Reeves’ Spring Statement cuts’
It comes amid an ongoing battle with inflation and uncertainty partly caused by the threat of tariffs by Donald Trump
Labour have rejected claims that the government is returning to a policy of austerity, just days ahead of Rachel Reeves’ Spring Statement where she is set to announce the biggest cuts since the George Osborne era.
In a Q&A at the Institute for Government thinktank, asked about this claim, treasury minister Darren Jones said: “Just factually, it would be incorrect to say that we are doing what the Conservatives did after 2010.
Next Wednesday, the chancellor is set to announce cuts to Whitehall budgets by billions in a move that could mean reductions of seven per cent for certain departments, with economists warning it could harm key public services.
Meanwhile, UK interest rates have been held at 4.5 per cent by the Bank of England (BoE) with another cut to borrowing costs unlikely, amid mounting global uncertainty.
While the interest rate is still expected to fall further over the remainder of the year, only two further cuts are now expected across 2025 amid an ongoing battle with inflation, rising costs for businesses and an uncertain wider economic outlook, partly due to Trump’s threat of tariffs.
Having reportedly ruled out tax rises, Ms Reeves is set to tell MPs her plans next Wednesday, a week after her party slashed the welfare bill by around £5 billion.
Badenoch takes thinly veiled swipe at Farage during speech
Politics is “not showbusiness”, Kemi Badenoch said in a veiled criticism of Nigel Farage.
Asked what the ideological difference between the Tories and Mr Farage’s Reform UK is, Mrs Badenoch told reporters: “One of the things which I’ve been saying quite frequently – and I did in my speech on Tuesday when I launched our policy renewal programme – was that we don’t just make announcements, we have a plan.”
The Tory leader said “people have lost trust in politics because politicians make promises and don’t deliver”.
She added: “We also fell foul of that from time to time, and what I’m saying now is the Conservative Party is under new leadership.
“This is not showbusiness. This is not a game. This is about people’s lives. This is not for us. It is for all those people out there who need credible politicians. That is what we’re offering.”
Badenoch: 'If you vote Labour, you get trash'
Kemi Badenoch has issued a strong message to voters at her party's local election launch in Buckinghamshire as the party scrambles to avoid another election wipeout, warning: "If you vote Labour, you get trash".
As the Tories battle the threat from Reform UK and poor ratings in the polls, the Conservative leader put in a bid to keep traditional voters on side by painting a stark picture of what she argued was Labour's impact on local councils.
"Labour councils always cost you more and deliver less", she claimed. "I was in Birmingham at the weekend. Labour has run it into the ground. Bins not collected. Rubbish piling high everywhere."
They have a £1bn black hole in their budget, now they've hiked council tax by 21 per cent over two years and cut services, all while Labour councillors gave themselves a pay rise.
"So I say to all of you watching, don't let Labour do that to your council. If you vote labor, you get trash."
Closing out her speech, she added: "If you want to stop Labour wrecking your area, vote Conservative. Don't just hope for a great council, vote for one."
Badenoch offers pessimistic vision for upcoming local elections
Kemi Badenoch has offered up pessimistic vision ahead of May’s local elections, saying she expects the party to do just “a bit better” than a total wipeout.
Speaking at her party’s local election launch in Buckinghamshire, the Tory leader said: “If you match the general election result of 2024 onto this coming May, then we don't win the councils like we won in 2021 - we lose almost every single one.”
“But I think we're going to do a bit better than that”, she added.
Mrs Badenoch continued: “We know that these elections will be extremely difficult, but we also know why they matter”.
Tory MP acknowledges local election campaign will not be 'straightforward'
The Conservatives are not going to have a “straightforward” or “easy” local elections in May, the party’s shadow communities secretary has admitted.
Speaking at the launch of the Tories’ local election campaign, Kevin Hollinrake said: “Since the general election, we’ve won twice as many seats in terms of net gains compared to any other party. We know we can do this.
“We also know that May 1 is not going to be straightforward. It’s not going to be going to be easy. We have been judged against the high water mark of 2021.
“We’ve got to be realistic, but we can win. And, my god, do we need to win.”
Conservative MPs Greg Smith (Mid Buckinghamshire) and Joy Morrissey (Beaconsfield), as well as former Peterborough MP Paul Bristow, were among those gathered at the event in Buckinghamshire.
Bank of England set to keep interest rates on hold as global uncertainty grows
UK interest rates are set to stay at 4.5 per cent, with another cut to borrowing costs unlikely while the Bank of England assesses mounting global uncertainty, experts have said.
The Bank of England’s Monetary Policy Committee (MPC) is widely expected to keep interest rates on hold on Thursday when they make their announcement at midday.
The MPC has been gradually cutting borrowing costs since August, easing pressure on some borrowers who have been able to offer lower mortgage rates.
This has been possible while the rate of UK inflation has been steadily falling from the highs reached in 2023, at the peak of the cost-of-living crisis.
But the Bank’s governor Andrew Bailey has been keen to stress that the committee wants to take a “gradual and careful approach” to reducing rates while monitoring changes in the UK and global economy.
Consumer Prices Index (CPI) inflation rose to 3 per cent in January, with price pressure mainly being driven by energy prices, water bills and bus fares.
At the same time, the UK economy has been teetering on the edge of decline – with gross domestic product (GDP) rising by 0.1 per cent over the final three months of the year but contracting by 0.1 per cent in January.
Car crushing and garrotting suggested as fly-tipping punishment
MPs have suggested car crushing and garrotting as punishments for fly tipping.
Paul Waugh, the Labour MP for Rochdale, told the Commons: “My council tells me there’s a real failure in the courts to issue consistent and tough enough fines, so does the minister agree with me it’s time to crack down harder on fly-tippers, for much tighter regulations on waste carriers, and treat the fly-tippers like the criminals they are by crushing their cars or putting points on their licence?”
Nature minister Mary Creagh replied: “I couldn’t agree more with (Mr Waugh).”
She described “enthusiasm from all sides of the House” when Mr Waugh asked his question, adding: “Our message to the waste criminals is clear – we are seeking powers in the Crime and Policing Bill and we are going to track you down.”
Conservative MP Sir Desmond Swayne later said: “Alas, the last government did not take up my suggestion that the offenders be garrotted with their own intestines. The first problem, however, is to catch them.
“Is there any way that local authorities can be encouraged to take advantage of the collapse in price and improvement in quality of internet-connected cameras?”
Ms Creagh replied: “I think there’d be some human rights implications with the garrotting option, but I do share his passionate hatred for these environmental criminals.”
In a nod to Sir Desmond’s New Forest West constituency, Ms Creagh added it “really upsets me to see ancient woodland run by the Forestry Commission fly-tipped – these are precious, irreplicable areas”.
Starmer accused of waging new ‘war on countryside’ after axing grant that saves local pubs
Sir Keir Starmer has been accused of waging “war on the countryside” after the government quietly scrapped a grant that helped local groups buy closure-threatened pubs.
The Community Ownership Fund, which launched 2021 with the aim of handing out £150m worth of grants by the end of 2025, was cancelled early with £135m having been allocated to date.
As the number of pubs in England and Wales sits at a record low, with more than 400 closing their doors for good in 2024 alone, there is growing concern in rural areas that the cancellation of the fund just days before Christmas will damage communities across the country.
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Sir Keir Starmer is spending the morning in Barrow viewing the next generation of nuclear-armed submarines, before joining a summit of European leaders to discuss the continent’s future safety.
He is set to travel back to London to meet military planners from around 30 countries as part of the “coalition of the willing”, to strategise how a peacekeeping force in Europe would look, despite Putin’s insistence that he will not agree to a ceasefire if troops are in the region.
Foreign secretary David Lammy also has a speech at 2.30pm, where he may take questions on both Ukraine and the ongoing conflict in Gaza.
Treasury Chief Secretary Darren Jones is also due to give his Institute for Government speech at 12.30 pm, where he will likely face tricky questions ahead of Rachel Reeves’ spring statement next Wednesday.
At midday, the Bank of England will also announce their decision on interest rates, which are widely expected to be held at 4.5 per cent considering the gloomy economic outlook.
Migrant dies trying to cross the English Channel
A migrant has died after trying to cross the English Channel in an overloaded boat, French authorities have said.
Some 15 people were rescued after a boat containing 40 people picked up more migrants on the coast of Gravelines, in northern France, at around 3am on Thursday.
Three people were rescued from the water and a group of 12 others on board the dinghy asked to be evacuated, the French coastguard said.
One person rescued was unconscious and was declared dead despite medical treatment.
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