Bank of England interest rate cut joy for mortgage holders as Reeves blames mini-Budget for inflation - live
The Bank of England has decided to cut interest rates for the first time in more than four years
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The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.
Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points.
Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.
The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent.
Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini-budget”.
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In this ‘clash of the chancellors’, who’s being economical with the truth?
Reform accuses government of telling a ‘complete pack of lies’ on taxes
Reform UK MP Lee Anderson has accused the Labour government of telling voters a “complete pack of lies” on whether it will increase taxes during the general election.
It comes as Rachel Reeves admitted some taxes will go up but ruled out income tax, National Insurance or VAT.
But the MP for Ashfield has slammed the party over the government’s plan to plug £22billion black hole in public finances.
Mr Anderson told GB News: “It is just a pack of lies. They have had 14 years to get ready for government. They have been banging on for the last 14 years about the austerity, about the taxation system, we have got the highest tax since the Second World War.
“Listen, three weeks after being elected what have they done? They have taken £400 off pensioners for the winter fuel allowance, they have reneged on the £300 saving on people’s energy bills, they have given billions away to foreign countries for this lunacy, this net zero journey.
“They have just told the public a complete pack of lies.”
Make ‘terrible crime’ of fraud a national priority, firms urge government
Some of the UK’s biggest banks and telecoms firms have committed to sharing data to combat fraud while urging the Government to make the “terrible crime” a national priority.
The coalition, led by consumer group Which? and including Barclays, BT, Mobile UK, Nationwide, NatWest, Starling, Three UK, UK Finance, Virgin Media O2 and Vodafone, is calling on ministers to provide the leadership to ensure more businesses can better share intelligence to detect fraud and protect their customers.
It said sharing intelligence is key to getting ahead of organised crime groups that “blight the lives of so many consumers”.
Fraud accounts for around 40% of all crime in England and Wales, and figures from UK Finance revealed that criminals stole more than £1 billion through unauthorised and authorised fraud last year.
The group said it is concerned that individual companies, law enforcement agencies and Government are not working collaboratively enough to share information on how fraudsters can exploit gaps in their systems – which allows scammers to deploy the same tactics consistently across multiple channels.
Culture secretary summons BBC chief over Huw Edwards scandal
Lisa Nandy has called an urgent meeting with BBC boss Tim Davie following the Huw Edwards scandal.
The former TV newsreader pleaded guilty on Wednesday to three charges of making indecent photographs of children, after he was sent 41 illegal images by convicted paedophile Alex Williams, with seven being of the most serious type.
After the court appearance yesterday, the BBC revealed that it was made aware in November that Edwards had been arrested on suspicion of “serious offences”.
The corporation said: “If at any point during the period Mr Edwards was employed by the BBC he had been charged, the BBC had determined it would act immediately to dismiss him.”
You can follow the latest updates on Huw Edwards here:
BBC admits knowing of Huw Edwards arrest in November
Newsreader pleaded guilty on Wednesday to three charges of making indecent images of children
Former security minister warns Putin behind Southport disinformation
Former security minister Stephen McPartland has suggested Russia could be behind a social media misinformation campaign which led to appalling scenes in Southport on Tuesday night as protesters rioted.
It comes as sources in the Home Office have told The Independent that an investigation is being carried out on the origin of social media posts which fuelled the angry disturbance in the town. Security sources have pointed out that both China and Russia have large teams and networks working on disinformation campaigns which fuel social division and violence in the UK and other Western democracies.
The riot came after a vigil for the children who were attacked by a 17-year-old in the seaside resort. Three girls who were at a Taylor Swift holiday dance club – Bebe King, six, Elsie Dot Stancombe, seven, and Alice Dasilva Aguiar, nine – lost their lives, while five children and two adults are still in critical condition.
Our political editor David Maddox has the full story:
Former security minister raises concerns Putin behind Southport disinformation
Fears have been raised that Russian interference was behind a social media misinformation campaign which fuelled the far-right riot in Southport
Far right mob clashes with riot police in Downing Street
Far-right demonstrators threw flares towards Downing Street and a statue of Winston Churchill as they clashed with riot police in London.
A few hundred protesters joined the “Enough is Enough” demonstration in Whitehall on Wednesday evening in the wake of the tragic knife attack in which three children were killed and eight others were injured in Southport.
More than 100 people were arrested at the demonstration, where the crowd was heard chanting “Rule Britannia” and “we want our country back”.
Protesters hurl bricks and bottles at police in Southport in ugly scenes.
Cleverly urges Tories to ‘get our act together'
James Cleverly has urged the Conservative party to get its “act together” and scrutinise Labour’s spending and tax plans.
The Tory leadership candidate said his party needed to “protect the British people from this government”.
Mr Cleverly tweeted: “We said that Labour would raise taxes. Labour said they wouldn’t. We lost the election (our fault). Now Labour say they will raise taxes.
“[The Conservatives] need to get our act together, hold Labour to account and protect the British people from this government.”
‘Moral obligation’ to build more homes, Angela Rayner tells council chiefs
Angela Rayner has told council chiefs they have a “moral obligation to see more homes built”.
The Deputy Prime Minister, who is also the Housing Secretary, wrote to council leaders and metropolitan mayors on Wednesday to set out plans for 1.5 million new homes by 2029, which she described as “radical”.
She warned leaders they may have to tear up draft housing masterplans if they are at an early stage, and said authorities could have to map out new green belt boundaries.
The letters follow an exchange in the Commons with her Conservative shadow Kemi Badenoch, who warned Labour might approve “1.5 million ugly homes” if they press ahead with their plans.
In her letter to council leaders and chief executives, Ms Rayner wrote: “I know that, like every member of Government, you will feel not just a professional responsibility but a moral obligation to see more homes built, to take tough choices necessary to fix the foundations of our housing system.
“And we will only succeed in this shared mission if we work together, because it falls to you and your authorities not only to plan for the houses we need, but also to deliver the affordable and social housing that can provide working families with a route to a secure home.”
Annual house price growth reaches fastest rate since December 2022
Annual house price growth has picked up to the fastest rate since December 2022, according to an index.
UK house prices rose 0.3% month-on-month in July, Nationwide Building Society said.
This resulted in a slight acceleration in the annual rate of house price growth from 1.5% in June, to 2.1% in July – the fastest pace since December 2022.
Across the UK, the average house price in July was £266,334.
Robert Gardner, Nationwide’s chief economist, said: “Prices are still around 2.8% below the all-time highs recorded in the summer of 2022.
“Housing market activity has been holding relatively steady in recent months with the number of mortgages approved for house purchase at around 60,000 per month.
“While this is still (around) 10% below the level prevailing before the pandemic struck, it is still a respectable pace given the higher interest rate environment.”
Badenoch ‘asked’ to use taxpayers’ money to pay for holiday flight
Kemi Badenoch asked to pay for a holiday flight to the US with taxpayers’ money while in government, the Guardian reports.
The shadow business secretary had travelled to Mexico for an official visit to discuss plans to join the CPTPP Indo-Pacific trade bloc.
Her business class fight was paid for by her department but she asked the DBT department office Gareth Davies to pick up the bill for a flight to Dallas she planned to take as a family holiday.
Badenoch’s request was refused as her office believed a taxpayer funded detour was not for official business, a source said.
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