No-deal would hammer economy, warns OBR as minister quits over foreign aid cut

Foreign Office minister quites in protest at cut in overseas aid budget

Boris Johnson takes PMQs ahead of Rishi Sunak's coronavirus spending plan

Rishi Sunak has announced that the "economic emergency" caused by the pandemic has only just started, while a no-deal Brexit would make the blow even worse, according to the Office for Budget Responsibility (OBR). 

The official forecaster warned that unemployment levels could reach 8 per cent, rather than the 7.5 per cent it currently predicts, if the UK does not reach a free trade deal with the EU. 

The OBR also said that 2 per cent could be knocked off GDP growth without an agreement. 

Among the major announcements in Wednesday’s spending review, Mr Sunak said that some public-sector workers would have their salaries frozen next year and that the overseas aid budget would be cut to 0.5 per cent of national income, a decision that was met with protest from the opposition benches. 

The cut to the foreign aid budget led to the resignation of Baroness Suggs, a Foreign Office minister. 

“I believe it is fundamentally wrong to abandon our commitment to spend 0.7% of gross national income on development. This promise should be kept in the tough times as well as the good,” she wrote in her resignation letter to the prime minister. 

See what was our live coverage below.

Key Points

• Tory minister quits over foreign aid budget cut 
• No-deal Brexit would make economic woes worse, warns OBR
• ‘Economic emergency’ only just beginning, says Sunak
• Chancellor warns of ‘sobering’ news on UK economy
• ‘Hostile environment’ broke law, report finds
• Biden says Brexit must not threaten peace in Ireland 

[25 November 2020 10:30 · Rory Sullivan]

Power in Britain should be less centralised after Brexit, says Scottish Labour leader

The Scottish Labour leader has told The Independent that he wants to see further devolution in Britain after Brexit. 

Richard Leonard said he would be sharing his views with Keir Starmer, who is expected to give an overview of the party’s approach to modernising the constitution before the end of the year. 

Mr Leonard said: “I would like to see reform of the House of Lords – its abolition and replacement with a Senate of the nations and regions. I would like to see greater decentralisation of power across the UK, ideally I would like us to move towards a more federal state." 

“But that’s not something for me to dictate from Scotland and I think that’s something that needs to be accepted and supported by people in other parts of the UK," he added. 

My colleague Ashley Cowburn has this exclusive: 

[25 November 2020 10:47 · Rory Sullivan]

Shadow justice secretary tells government to rectify Windrush injustice

Shadow justice secretary David Lammy has told the government it urgently needs to rectify the “gross injustice” of the Windrush scandal, after an equality watchdog found that the Home Office broke the law through its hostile environment policies. 

Following the release of the Equality and Human Rights Commission report, Mr Lammy tweeted that the department has “only paid lip service to its victims”, some of whom were detained and deported despite being British citizens. 

“Black Britons were detained, deported, denied healthcare, housing and employment by their own government because of the colour of their skin,” he said. 

[25 November 2020 11:11 · Rory Sullivan]

‘Sobering’ news on UK economy to be released today, says chancellor

Rishi Sunak has said that the UK will be given some “sobering” news today when the independent Office for Budget Responsibility (OBR) releases figures on the economy. 

The OBR’s projections for the economy, which has been hit hard by the coronavirus, will appear on the same day that the chancellor unveils his spending review. 

The UK’s national debt has spiralled to over £2 trillion, with many economists suggesting that there will be large tax rises in the years ahead because of  the government’s recent large-scale borrowing. 

The Independent’s Andrew Woodcock reports: 

[25 November 2020 11:40 · Rory Sullivan]

Home Office condemned for reportedly ‘gagging’ volunteers at asylum camp

The Home Office has been criticised for allegedly “gagging” volunteers who help in an asylum camp by making them sign a document underpinned by the Official Secrets Act. 

The volunteers who signed the confidentiality agreement were visiting 400 asylum seekers housed in military barracks in Folkestone, Kent. 

Bella Sankey, director of Detention Action, said the move was an attempt to "gag" volunteers.

Ms Sankey said: "The Official Secrets Act is intended to protect state secrets and national security, not the Government's treatment of people who have arrived in the UK seeking sanctuary.

"Locking people up at an old army barracks is inappropriate enough, without trying to gag those who volunteer to provide basic essentials to those in need.

"We've heard reports of self-harm, suicide attempts, Covid outbreaks and cramped and unsanitary dorms, meaning more - not less - public information is needed about this seemingly reckless experiment."

[25 November 2020 12:03 · Rory Sullivan]

Gove blames EU for potential trading chaos

Michael Gove has blamed the EU for any potential border trading chaos next year, while insisting there will only be a few weeks of disruptions after the transition period ends. 

The cabinet minister suggested the bloc should take a more laissez-faire approach like the UK, which has pushed back full border checks for six months. 

As well as laying blame at the EU’s door as ministers have been wont to do in recent months, Mr Gove predicted any problems at the borders would not last longer than two to three weeks. 

[25 November 2020 12:11 · Rory Sullivan]

PM makes no apology for sticking by Patel

Boris Johnson has said in PMQs that he “makes no apology” for standing by Priti Patel, after she was found to have broken the ministerial code by an independent investigation.

Keir Starmer said that any other prime minister would have fired Ms Patel and any other home secretary would have resigned. 

[25 November 2020 12:16 · Rory Sullivan]

PM defends Patel decision

[25 November 2020 12:21 · Rory Sullivan]

Speaker tells PM not to ask Starmer questions at PMQs

Speaker Lindsay Hoyle has reminded the prime minister that PMQs is not “Leader of the Opposition’s Questions”, after Boris Johnson addressed a question to Keir Starmer on Jeremy Corbyn.

Mr Johnson responded by saying that it was “reasonable” for him ask about the former Labour leader. 

[25 November 2020 12:25 · Rory Sullivan]

Starmer accuses government of bullying and cronyism

Labour leader Keir Starmer has attacked Boris Johnson’s government for its record during the pandemic, accusing it of bullying, cronyism, wasting money and leaks.

Mr Starmer added that these examples of bad governance came as Rishi Sunak was about to announce a pay freeze to frontline workers in his spending review later on Wednesday. 

“It’s the same old story. One rule for the British public, another for the prime minister and his friends,” he said. 

[25 November 2020 12:30 · Rory Sullivan]

Labour leader says PM does not know or care about wasting taxpayers’ money

Sir Keir Starmer has accused the prime minister of not knowing or caring about how much taxpayers’ money has been wasted on government contracts during the pandemic.

He said: "Where do I start on this one? Last week we learnt suppliers with political connections were 10 times more likely to be awarded Government contracts.

"This week, the Sunday Times reports that the Health Secretary appointed one of his closest friends to a key advisory role. This friend is also a major shareholder in a firm that specialises in lobbying the Government on behalf of its clients, and some of those clients have secured tens of millions of pounds of Government contracts during the pandemic.

"Was the Prime Minister aware of this apparent conflict of interest?"

Boris Johnson responded by saying the Labour leader’s comments showed “deep underlying Labour hatred of the private sector”, to which Mr Starmer said that he was not “knocking the private sector” but that the government was “knocking the taxpayer”.