Closing summary
Downing Street has said Rachel Reeves will stay in post and has not offered her resignation, after the chancellor was seen in tears at prime minister’s questions. Reeves wiped away a tear on Wednesday after a series of questions from the Conservative leader, Kemi Badenoch, who suggested Labour MPs had said she was “toast”. Badenoch suggested Keir Starmer had failed to confirm Reeves would stay in post until the election.
UK government borrowing costs have risen sharply amid speculation over Rachel Reeves’s position as chancellor, as City investors warned Labour’s welfare U-turn had blown a multibillion-pound hole in the public finances. After Keir Starmer failed initially to give his full backing to a tearful chancellor at prime minister’s questions on Wednesday, the yield on 10-year UK government bonds, also known as gilts, had its biggest jump in a day since Liz Truss was in No 10, while the pound slumped.
There will be “a cost” to the government’s climbdown on welfare changes at the budget, one of Keir Starmer’s senior ministers has said, as a leading fiscal thinktank said new tax rises appeared increasingly likely. Pat McFadden, the chancellor of the Duchy of Lancaster, defended Starmer and the work and pensions secretary, Liz Kendall, after the second reading of the government’s main welfare bill passed its first Commons test only after a central element was removed.
Keir Starmer managed to avert a parliamentary defeat over his main welfare bill on Tuesday, but only by removing a central element. So where does the government’s latest climbdown leave the public finances? Read our explainer here.
Reform UK has hired a former Conservative MP who was suspended for using the N-word. Anne Marie Morris, who had the whip withdrawn by Theresa May in 2017 for using the term in a debate about Brexit, will lead Reform’s social care policy. She is one of several ex-Tories who have defected to Nigel Farage’s party. Morris had used the phrase “[N-word] in the woodpile” in an event at the East India Club, and apologised after the remarks came to light.
The battle to lead the Greens has been confirmed as a straight fight between a joint ticket comprising two of the party’s MPs, Adrian Ramsay and Ellie Chowns, and the more insurgent offering of Zack Polanski, the deputy leader. A final list of nominations to head the party in England and Wales has resulted in a two-way battle for the leadership, while nine candidates are vying to be deputy leader.
The former head of the UK’s civil service has described the Chinese leader Xi Jinping as a “dictator” and said Donald Trump had put “helpful pressure” on Europe to increase defence spending. Simon Case, who served as the cabinet secretary until December, when he stepped down on health grounds, said China had sent a clear message to “prepare for serious conflict” in Taiwan.
Discharging untested patients from hospitals to care homes during the Covid crisis was the “least worst decision”, the former health secretary Matt Hancock has told a public inquiry. In his testimony to the UK Covid-19 inquiry on Wednesday, Hancock defended the decision – which was later ruled illegal in a high court judgment – to move hospital patients into care homes during the early weeks of the pandemic to free up space.
Culture war-based coverage of cycling based on stereotypes of middle-aged men in Lycra could harm the nation’s health because it shifts focus away from the people and communities who benefit from physical activity, Chris Whitty has said. Speaking a day before the launch of the NHS’s 10-year-health plan, which is expected to focus heavily on prevention, the chief medical officer for England called on people to set aside media cliches and instead focus on “data which nobody can dispute”.
Twelve of England’s regional mayors have signed up to an unprecedented plan to create a “national active travel network”, focusing initially on helping children to walk, cycle or scoot to school safely. The scheme, which involves all non-London regional mayors other than one from Reform UK, is intended to fit into wider efforts to devolve transport planning, working with Active Travel England (ATE) to implement schemes they think would help their area.
Ministers are going to “have to work harder” to bring down small boat crossings, a member of Keir Starmer’s cabinet has said amid record numbers in the first half of this year, reports the PA news agency. Pat McFadden told LBC “everyone in government knows it’s a big challenge” but he declined to give an assurance that the figures would be down by this time next year.
Government has today announced that it is boosting legal aid rates for housing, debt, immigration and asylum, after almost three decades of stagnation.
The £20 million per year injection of extra funds will add at least 10% on current rates.
The increase equates to a new hourly rate of £69.30 for London lawyers and £65.35 for non-London lawyers.
The government’s decision to raise legal aid rates follows a legal challenge to the very low legal aid rates for civil matters, after which the government agreed to conduct a consultation about legal aid fee levels
While legal aid lawyers and their representative bodies such as Immigration Law Practitioners Association, welcome today’s announcement, they have warned that the changes do not go far enough and only relate to housing and immigration legal aid at a time when they say the entire civil legal aid system is in crisis.
Toufique Hossain (corr) of Duncan Lewis solicitors who worked on the legal challenge against the government, arguing that legal aid rates need to increase, said: “The right to access justice has long been held to be an important constitutional right for all, especially those who are vulnerable. For years, investment in legal aid has been woeful.
“We welcome this decision, in response to our legal challenge and hope the changes will go some way to improve the dire state of legally aided immigration and housing advice.”
Liberal Democrat deputy leader Daisy Cooper said former Conservative MP Anne Marie Morris, who has joined Reform, previously used “abhorrent language”.
She said that Nigel Farage’s welcoming of a politician who had previously used racist language had exposed his “hollow claims of dragging his party into the mainstream”.
She said: “That Reform is embracing someone who has used such abhorrent language speaks volumes: they are the company they keep.”
UK government borrowing costs rise amid speculation of Reeves's future
UK government borrowing costs have risen sharply amid speculation over Rachel Reeves’s position as chancellor, as City investors warned Labour’s welfare U-turn had blown a multibillion-pound hole in the public finances.
After Keir Starmer failed initially to give his full backing to a tearful chancellor at prime minister’s questions on Wednesday, the yield on 10-year UK government bonds had its biggest jump in a day since Liz Truss was in No 10, while the pound slumped.
The yield – in effect the interest rate – rose by as much as 0.2 percentage points to trade close to 4.7%, climbing by the most in one day since October 2022 when investor confidence in Britain remained shaken after Truss’s mini budget.
Highlighting investor unease over the government’s tax and spending plans, the pound also fell by more than 1% against the US dollar.
Updated
The battle to lead the Greens has been confirmed as a straight fight between a joint ticket comprising two of the party’s MPs, Adrian Ramsay and Ellie Chowns, and the more insurgent offering of Zack Polanski, the deputy leader.
A final list of nominations to head the party in England and Wales has resulted in a two-way battle for the leadership, while nine candidates are vying to be deputy leader.
Since 2021 the party has been led by Ramsay and Carla Denyer, two of the Greens’ record haul of four MPs elected to Westminster a year ago. In May, Denyer announced she would not stand again, with Ramsay opting to stand again alongside Chowns.
The leadership race is broadly a competition between two contrasting styles: the more organised and elections-led approach of the two MPs, versus Polanski’s aim to make the Greens a radical, mass-membership “eco-populism” movement.
Polanski, who has been deputy leader since 2022 and serves as a London assembly member, said the party had to meet the challenge of Reform UK, which has a membership about four times the size of the Green party and won nearly 700 councillors in May’s local elections, against 79 for the Greens.
Ramsay and Chowns have dismissed this implicit criticism, saying their record in winning rural, Conservative-dominated seats a year ago – Chowns won South Herefordshire from the Tories while Ramsay took the new seat of Waveney Valley on the Norfolk-Suffolk border – showed they could win over new supporters.
The former head of the UK’s civil service has described the Chinese leader Xi Jinping as a “dictator” and said Donald Trump had put “helpful pressure” on Europe to increase defence spending.
Simon Case, who served as the cabinet secretary until December, when he stepped down on health grounds, said China had sent a clear message to “prepare for serious conflict” in Taiwan.
The UK has committed to spend the equivalent of 2.6% of GDP in 2027, and it and other Nato members have signed up to increasing spending to 5% by 2035 on militaries and related security.
The increased defence spending came after years of Trump raising questions over the future of the Nato alliance – and whether the US would come to allies’ defence – if other countries did not increase spending.
Case argued for the UK and mainland Europe to increase the pace of increased defence spending. He was speaking at an event in London paid for by Britain’s biggest weapons maker, BAE Systems. The manufacturer of artillery, fighter jets and nuclear submarines is expected to be one of the biggest corporate beneficiaries of increased spending on weaponry.
Responding to the news that former Conservative MP Anne Marie Morris has joined Reform UK (see 3.06pm BST), Liberal Democrat deputy leader Daisy Cooper said:
The mask has slipped, exposing [Nigel] Farage’s hollow claims of dragging his party into the mainstream. That Reform is embracing someone who has used such abhorrent language speaks volumes: they are the company they keep.
Ms Morris’ constituents already made their views clear when they ejected her at the general election in favour of a hardworking local Liberal Democrat champion. The public will view Farage’s decision to elevate someone with such an appalling track record to the core of the Reform party with similar contempt.
Morris had the Conservative whip suspended twice during her time in the Commons, including once in 2017 for using racist language, for which she later apologised.
The Guardian’s economics editor, Heather Stewart, has written an explainer on where the welfare bill climbdown leaves UK public finances:
Cuts to the personal independence payment (Pip) announced at Rachel Reeves’s spring statement in March were meant to save the Treasury £5bn a year.
Ministers’ changes to the welfare bill last week to try to avoid a Commons defeat – reversing some cuts to universal credit and applying the stricter Pip eligibility rules only to new claimants – had already reduced that saving to about £2bn.
After stripping the Pip changes out of the bill completely on Tuesday, the Resolution Foundation estimates there will be no savings in five years’ time – leaving a £5bn hole in the chancellor’s plans.
Reeves also faces a £1.25bn cost from her decision to restore the winter fuel allowance to most pensioners – having stripped it away last year.
Between them, these U-turns will swallow most of the £10bn headroom the chancellor created for herself against her fiscal rules at her spring statement.
You can read the full piece here:
Chris Whitty says culture-war coverage of cycling could harm nation’s health
Culture war-based coverage of cycling based on stereotypes of middle-aged men in Lycra could harm the nation’s health because it shifts focus away from the people and communities who benefit from physical activity, Chris Whitty has said.
Speaking a day before the launch of the NHS’s 10-year-health plan, which is expected to focus heavily on prevention, the chief medical officer for England called on people to set aside media cliches and instead focus on “data which nobody can dispute”.
If active travel “is seen as something which is simply the reserve of middle-aged, Lycra-clad people cycling possibly too fast around the park, that completely misses the point of actually where the huge health gains are”, Whitty told a conference in York.
He said:
There are some areas where you can send a debate from a cultural war into a much more day-to-day one by actually saying, ‘OK guys, but this is the maths,’ and ensuring that you do so with facts which people find surprising.
So for example, the culture wars will always try and paint the person who’s in favour of active transport, and let’s say cycling, as middle-class, entitled, speeding like a bad person. What they don’t see is a woman in a wheelchair who actually benefits even more from the activity that we’re talking about.
Being more active, Whitty said, was “one of the most impressive things you can do to preserve health of all forms, physical and mental”. He added that the best way for people to do this was to build it into their everyday life, for example by walking, cycling or wheeling for transport.
“The people who benefit most from any form of activity are people who are doing none,” Whitty said, adding:
And the next group who benefit most are the people who are doing a very small amount, who might do a bit more.
The second group of people who benefit most are those who are teetering on the brink of ill health, or are in ill health which could accelerate from under them. And for many of those people, a small amount of activity is going to be very hard work, but it is going to be remarkably powerful at preventing and in many cases, reversing the health conditions they have.
Transport planners should not just focus on bigger projects such as bike lanes, but also on everyday issues such as uneven pavements, which might put off someone with mobility issues from walking a short distance, Whitty said.
Former Tory MP joins Reform UK and will head up social care policy
Former Conservative MP Anne Marie Morris has joined Reform UK, Nigel Farage’s party has said, according to the PA news agency.
The former MP for Newton Abbot will head up the party’s social care policy. Morris, who was a member of the Commons from 2010 to 2024, said that Reform “offers the vision and leadership” that Britain needs. “I want to play my part in delivering that vision,” she added.
Party chair David Bull said that he was “delighted” to welcome her to Reform. “She brings a wealth of experience with her and will be a crucial part in developing the party’s social care policy as we look to build our policy platform ahead of the next general election,” he said, adding:
Anne Marie is just one of many who realise that Reform UK is the only party that can stop this damaging Labour government in its tracks.
Morris represented the Devon constituency of Newton Abbot from 2010 until last year’s general election, when she was unseated by Liberal Democrat Martin Wrigley, who overturned a majority of more than 17,500. Morris came second, with the Reform candidate in third place.
Morris had the Conservative whip suspended twice during her time in the Commons, including once in 2017 for using racist language, for which she later apologised.
Kemi Badenoch’s spokesperson said that Tories who want to “get serious about public spending” should “be sticking with the Conservatives”. The spokesperson said:
The Conservative party is fighting to win the next election. We need to be united in that goal.
We know what we stand for. Last night, you saw Reform sign up and put their names and vote in favour of the reasoned amendment, which was calling for more welfare spending, which would do nothing to bring down the deficit, or the welfare bill, or the health and disability bill that’s going to hit £100bn by 2030.
I think any Conservative who wants to get serious about public spending, about bringing down the welfare budget, should be sticking with the Conservatives.
Responding, Stephen Doughty told the Commons he was “disappointed by the tone” of Patel’s comments, reports the PA news agency.
“I don’t know who writes this stuff,” the Foreign Office minister said. He added:
I don’t know whether it’s just performative politics or rhetoric, I don’t know what. But I should point out that I have received and answered over 100 written parliamentary questions from [Priti Patel], I’ve answered over 250 questions on this deal and the process in total.
We’ve had no less than six urgent questions in this house. We have had two statements from this government by the foreign secretary [David Lammy] and the defence secretary [John Healey].
I personally briefed [Priti Patel] and answered many of her questions in my office just a couple of weeks ago in good faith and in detail, and indeed, I was subjected – quite rightly – to robust scrutiny not only from the Foreign Affairs Committee of this house, but also from the International Relations and Defence Committee in the other house, and indeed the International Arrangements Committee in great detail on these issues.
Doughty said a bill would follow “in due course” but added the deal with Mauritius, presented to parliament in May, “secures” the UK-US military base on Diego Garcia, “secures our national security and that of our allies”.
Priti Patel has urged ministers to “have the courage” to trigger a vote on the Chagos Islands deal, reports the PA news agency.
The government won a vote in the House of Lords on Monday, when 205 peers struck down a Tory attempt to reject the treaty which cedes control of the archipelago to Mauritius.
But the Conservative party’s shadow foreign secretary Patel has called for a similar vote in the Commons.
“With the 21-day Crag (Constitutional Reform and Governance Act 2010) process about to conclude, it is a disgrace that Labour have breached the parliamentary conventions and denied this house a meaningful debate and vote on ratification,” she told MPs.
To accompany the treaty, MPs will need to sign off on a bill to wind up the current governance of the British Indian Ocean Territory (BIOT). The treaty will only come into force once the legislation is “in place”, according to the government.
Patel added:
Having a vote on the bill is not the same as voting on the treaty under Crag. Earlier this week, the House of Lords – the other place – had a debate and vote where the Lib Dems sided with Labour in backing this £30bn surrender treaty, which is subsidising tax cuts in Mauritius.
So, why can’t we have a debate and vote in this house? What are ministers afraid of?
Are they afraid that their backbenchers, now worried about benefit cuts and the impact of unpopular tax rises, will question why so much money is being handed over for a territory that we own and force them into another embarrassing U-turn?
Patel urged ministers to “scrap this treaty or at least have the courage to bring it here for a proper debate, full scrutiny, and finally, a vote in this house”.
Treaties are laid before parliament before they are ratified, but there is no requirement for a debate or vote.
Peers in their vote, which Conservative shadow Foreign Office minister Martin Callanan triggered, agreed not to reject the treaty by 205 votes to 185, majority 20.
During Wednesday’s PMQs, SNP leader in Westminster Stephen Flynn took a swipe at Keir Starmer and his promise to “end the chaos” after the events of the Welfare bill’s second reading on Tuesday.
Flynn said:
In his victory speech last year, the prime minister promised to end the chaos. Does he think that the public still believe him?
Responding, Starmer said:
We’ve delivered more in the first year of a Labour government than they’ve [the SNP government in Scotland] delivered in 20 years.
Let me give him one example. We had waiting lists, we said we’d do two million extra appointments. We’ve done four million for the NHS in England.
What a contrast – where they’ve been in charge for that 20 years, Scotland’s doctors now saying, in the past week I think, and this is their quote, that the Scottish NHS is ‘dying before our very eyes’. They should be ashamed …
Scotland needs new direction, so it can bring waiting lists down in Scotland, just like we’ve done in England.
Bereaved families have previously called this “protective ring” phrase a “sickening lie” and a “joke”, reports the PA news agency.
Nicola Brook, a solicitor representing more than 7,000 families from Covid-19 Bereaved Families for Justice UK (CBFFJ), said Hancock’s claim that the discharge policy had been the least-worst decision available was “an insult to the memory of each and every person who died”. She added:
He knew at the time that many care homes did not have the ability to isolate the people who would be discharged from hospital and that Covid was airborne.
It’s frankly ridiculous and insulting that he says they tried to throw a protective ring around care homes when his department’s policies caused Covid to spread like wildfire amongst society’s most vulnerable loved ones.
Mr Hancock claims the decision to discharge people into care homes was driven by Simon Stevens, the chief executive of the NHS, yet the inquiry is not calling him. We would call for this decision to be urgently reviewed.
The CBFFJ group had already written to inquiry chair Heather Hallett, to express their concern at some “key decision-makers” not expected to be called in this module, including former prime minister Boris Johnson.
Outlining the state of the adult social care sector at the outbreak of the pandemic, Hancock said it “was badly in need of, and remains badly in need of, reform”, but rejected the suggestion of it being a “Cinderella service to the NHS”.
He said pandemic contingency plans, prepared by local authorities for adult social care, had been “as good as useless” at the time, and described a “hodge podge of accountability” between local councils and government departments.
He claimed the situation has “got worse not better” for care homes in the event of another pandemic hitting, and suggested a series of recommendations, including having isolation facilities in care homes and ensuring a stockpile of personal protective equipment (PPE).
Module six of the inquiry is focused on the effect the pandemic had on both the publicly and privately funded adult social care sector across the UK. Public hearings for the care sector module are expected to run until the end of July.
Hancock went on:
We were trying to do everything that we possibly could, we were in bleak circumstances.
Counsel to the inquiry Jacqueline Carey KC highlighted anonymous evidence given to the inquiry, saying:
One person in particular said he [Matt Hancock] blatantly lied about the situation with care homes, there was no blanket of protection. We were left to sail our own ships. He wasn’t heartfelt. He had no understanding or appreciation of the challenges care homes face, pandemic or not, it felt like we were the sacrifice, a cull of older people who could no longer contribute to the society.
Hancock said it was “not helpful” for the inquiry to “exchange brickbats”, but went on:
I’ve been through everything that we did as a department, a big team effort, and we were all pulling as hard as we possibly could to save lives – that’s what I meant by saying that we tried to throw a protective ring around.
Of course, it wasn’t perfect. It was impossible – it was an unprecedented pandemic, and the context was exceptionally difficult.
What I care about is the substance of what we did, the protections that we put in place, and most importantly, what we can do in the future to ensure that the options available are better than they were last time.
Pressed further, Hancock said he had both agreed with and defended the decision at the time, reports the PA news agency.
The high court ruled in 2022 that government policies on discharging hospital patients into care homes at the start of the pandemic were “unlawful”. While the judges said it was necessary to discharge patients “to preserve the capacity of the NHS”, they found it was “irrational” for the government not to have advised that asymptomatic patients should isolate from existing residents for 14 days after admission.
Asked about 17 March 2020 when NHS bosses were instructed to begin the discharge process, Hancock said officials were “pushing very hard” to get more PPE into care homes. He said not advising care homes to isolate returning residents without symptoms was a “mistake”, but it was in line with clinical guidance at the time.
In 2023, appearing for a separate module of the inquiry, Hancock admitted the protective ring he said had been put around care homes early in the pandemic was not an unbroken one, and said he understood the strength of feeling people have on the issue.
At a Downing Street press conference on 15 May 2020, Hancock said:
Right from the start, we’ve tried to throw a protective ring around our care homes.
Hancock told the inquiry:
I would stress in that piece of rhetoric, what I said is that we had ‘tried’ – it was not possible to protect as much as I would have wanted.
He added:
The protection, what at the time, was clearly not as much as we would have liked, but the alternatives were even worse.
We were trying to put as much protection in place as possible.
All I can do is take you back to the actual decisions and the resources that we had at that moment.
Discharging patients to care homes in early Covid pandemic was 'least-worst decision', Hancock tells inquiry
Discharging patients from hospitals to care homes in the early stages of the coronavirus pandemic was “the least-worst decision” at the time, former health secretary Matt Hancock has said, reports the PA news agency.
Bereaved people whose loved ones died in care homes have urged truth and accountability from those appearing before the UK Covid-19 inquiry, as its focus for the next month falls on the care sector.
The inquiry has previously heard there were more than 43,000 deaths involving the virus in care homes across the UK between March 2020 and July 2022, and a civil servant was quoted earlier this week describing the toll as a “generational slaughter within care homes”.
Appearing before the inquiry on Wednesday, Hancock acknowledged the discharge policy was an “incredibly contentious issue”, but he added:
Nobody has yet provided me with an alternative that was available at the time that would have saved more lives.
When the pandemic hit in early 2020, hospital patients were rapidly discharged into care homes in an effort to free up beds and prevent the NHS from becoming overwhelmed. However, there was no policy in place requiring patients to be tested before admission, or for asymptomatic patients to isolate, until mid-April.
This was despite growing awareness of the risks of people without Covid-19 symptoms being able to spread the virus.
Hancock, who resigned from government in 2021 after admitting breaking social distancing guidance by having an affair with a colleague, has given evidence to the inquiry multiple times.
Returning for a full-day session to face questions specifically about the care sector, he said the hospital discharge policy had been a government decision but had been “driven” by then-NHS chief executive Simon Stevens, now Lord Stevens.
Hancock said:
It was formally a government decision. It was signed off by the prime minister. It was really driven by Simon Stevens, the chief executive of the NHS, but it was widely discussed.
The inquiry heard Hancock said in his witness statement that NHS England had “insisted” on the policy, and while he did not take the decision himself, he took responsibility for it as then-health secretary.
He said it was an “incredibly contentious issue” but added that “nobody has yet provided me with an alternative that was available at the time that would have saved more lives”.
He said there were no good options, adding:
It’s the least-worst decision that could have been taken at the time.
The speculation about Rachel Reeves’s future, sparked by her demeanour at prime minister’s questions and Keir Starmer’s apparent refusal to back her, spooked government bond markets.
Jittery investors dumped gilts – UK government bonds – as the idea caught hold that Reeves didn’t have the prime minister’s full confidence. The yield on ten year gilts was up 0.2 percentage points on the day – on course for the biggest one day move since Liz Truss’s mini-budget.
Kathleen Brooks, research director at City broker XTB, said:
The sharp rise in bond yields happened during PMQs … the prospect of political turmoil is causing bond yields to rise. The market is pricing in the possibility of a replacement chancellor with a more left-leaning agenda.
Starmer’s press secretary subsequently insisted Reeves had the prime minister’s full backing.
Downing Street said Keir Starmer would “plough on” with his “very busy agenda” when asked if the prime minister was planning for a course correction after the welfare vote.
Asked whether Starmer would be changing anything about the way he operates after the fallout, a Number 10 spokesperson said:
The prime minister is fully focused on the job at hand.
You’ve heard … the number of achievements this government has secured in its first year in office. You can expect him to plough on with the very busy agenda.
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The Tories have said “we need to know what’s going on” with Rachel Reeves after the chancellor was seen visibly upset during prime minister’s questions, which a spokesperson has since said related to a personal matter.
Kemi Badenoch’s spokesperson said “personal matter doesn’t really clear it up” and “you normally tell people what the personal matter is”.
Asked whether politicians should disclose all personal matters in their lives regardless of what they are, he said: “That’s an absurd question.” He added:
I’m not going to speculate … I think we should find out what’s going on.
Updated
Downing Street also said that Keir Starmer “absolutely” has confidence in his own judgment.
Asked the question by reporters, the prime minister’s press secretary said:
Yes absolutely. This is a prime minister who in the opposition picked the Labour party off the floor, turned it around and secured the mandate that we received last year.
This is a prime minister who … is taking a phased approach to government. The first phase is fixing the foundations, including the £22bn black hole the Tories left, invested record amounts in the NHS and delivered double the amount of appointments that we committed to in the election, frozen fuel duty … and now we’re delivering fairness and security through our plan for change.
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No 10: Rachel Reeves 'going nowhere' and 'has PM's full backing'
Rachel Reeves has the prime minister’s “full backing”, Downing Street has said.
Asked why Keir Starmer did not confirm in the Commons that he still had faith in Reeves, the prime minister’s press secretary said:
He has done so repeatedly.
The chancellor is going nowhere. She has the prime minister’s full backing.
He has said it plenty of times, he doesn’t need to repeat it every time the leader of the opposition speculates about Labour politicians.
The chancellor and the prime minister are focused entirely on delivering for working people.
It’s thanks to the chancellor’s management of the economy that we managed to restore stability, which has led to four interest rate cuts, wages rising faster than inflation and she recently delivered a spending review that invested in Britain’s national renewal.
Asked whether the prime minister still had confidence in work and pensions secretary Liz Kendall, the press secretary said: “Yes.”
Updated
However, Labour MP Kim Johnson accused the government of planning to table a bill that is “watered down” and “doesn’t deserve to be named Hillsborough law”.
The Liverpool Riverside MP said:
The prime minister visited my constituency in 2022 and told families, and I quote, ‘One of my first acts will be to put the Hillsborough law on the statute book’, repeated the same promise at conference last year that the bill would be published at the anniversary in April. That didn’t happen.
However, the government are now planning to table a watered-down version that doesn’t deserve to be named Hillsborough law.
After PMQs, the member for Liverpool West Derby [Ian Byrne] will introduce the real Hillsborough law. So can the prime minister finally honour his promise and back the law in full? If not, why not?
Responding, Keir Starmer said:
I’m grateful to her for raising this and remember well the visit that we had. This is a really serious issue, it is important that we get it right. I am fully committed to introducing a Hillsborough law, including a legal duty of candor for public servants and criminal sanctions for those that refuse to comply.
It is important we get it right. I have been personally engaging with some of the founders on this because I’ve been involved and seen first-hand what they’ve been through for over 10 years. I first met them when I was a director of public prosecution.
We will bring this forward, I just want to take the time to get it right and then put it before the house.
Updated
Keir Starmer has confirmed that his Hillsborough law will include a legal duty of candor amid fears the government is “watering down” its proposals.
Liberal Democrat leader Ed Davey challenged Starmer in prime minister’s questions, saying:
From Hillsborough to Grenfell, Primodos to Horizon, the contaminated blood scandal to nuclear test veterans, the bereaved and survivors of some of our country’s most appalling scandals have come together to call for a legal duty of candour and the secondary duty needed to make it practical and effective for investigations and inquiries.
Now they’re frightened the government is watering down these proposals to such an extent that they would be toothless.
So, after months of delay, can the prime minister reassure campaigners that his Hillsborough law will include a real legal duty of candour, as he promised?
Responding, Starmer said:
Yes, it will. And as he may know, I’ve known some of the families from Hillsborough for many years now.
I met them over a decade ago and know exactly what they have been through, and various other groups that have suffered similar injustices with similar follow up, which is an additional injustice on top of the original injustice.
And that’s why we will bring forward a Hillsborough law. It’s a commitment I’ve made. I have been talking to families in recent weeks personally myself to make sure that we get this right and it is important we get it right, but it will have a legal duty.
Updated
Keir Starmer failed to say whether he has “changed his mind” on the government’s plans for reform of personal independence payments (Pip) after a question from Liberal Democrat Ed Davey.
During PMQs Davey said:
Yesterday, the government was asking this house to vote for a law that would mean someone with a condition like Parkinson’s or multiple sclerosis would qualify for a personal independence payment (Pip) today, but someone diagnosed with the same condition with very same symptoms in a few months time would not.
We all know that the cost of welfare needs to come down, but that was not a fair way to do it. Until he lost control yesterday, the prime minister was arguing for that approach. Has he changed his mind on this or not?
Responding, Starmer said:
The Stephen Timms review will take place, a very important review to look into this issue.
But what we did do last night was end mandatory reassessments for those with severe disabilities. I thought that he and his party cared about things like that. It’s the right thing to do, and they voted against it.
We rebalanced Universal Credit, long overdue. I think he believes that, but what did he do last night? He voted against it. We set out a pathway to reform, something he argues for every week, but what did he do when he had the chance? He voted against it.
Davey replied:
The house and his backbenches will note that he didn’t answer my question.
PMQs has now ended. The PA news agency reports that Labour minister Ellie Reeves appeared to be holding her sister’s hand as she left the chamber on Wednesday, after chancellor Rachel Reeves appeared to be crying during PMQs.
During PMQs (which has now ended), Adrian Ramsay asked whether the government would scrap the two-child benefit cap after the welfare bill climbdown.
Starmer replied:
I don’t think I’ll be listening to him or his party.
Updated
Labour’s first year in government has been labelled “mistake after mistake” by Badenoch.
She said:
The fact is his own MPs are saying this government is, and I quote, incoherent and shambolic, that’s Liverpool Wavertree [Paula Barker] that said that. I could go on, and on, but the fact is it’s been mistake, after mistake after mistake. There is no plan to get people into work, there is no plan to cut the welfare budget, there is no strategy, there is just a series of humiliating U-turns like winter fuel, like grooming gangs.
What’s really shocking is that every other party in this House voted for even more welfare spending yesterday. Yes, those MPs behind him, and the Lib Dems, and Reform. The Conservative party believes that this country needs to live within its means.
We know what we believe, but this is a prime minister who has U-turned on everything he has done in office, including his own speeches. Because he doesn’t know what he believes. With left-wing Labour MPs now running the government, isn’t it working people who will now pay the price?
Starmer replied, recalling a list of “promises made, and promises delivered”, including extra NHS appointments, improving workers’ rights, increases to the minimum wage, extending free breakfast clubs, creating GB energy and stopping bonuses for water bosses.
He said:
We’re only getting started, the chancellor has led on all these issues and we’re grateful to her for it.
Updated
Starmer fails to guarantee chancellor's future
Starmer failed to repeat his promise on whether Rachel Reeves will stay as chancellor until the next election, as Badenoch said she was a “human shield” for the prime minister’s “incompetence”.
Badenoch said:
This man has forgotten that his welfare bill was there to plug a black hole created by the chancellor. Instead they’re creating new ones. They’re creating new ones.
[Rachel Reeves] is pointing at me, she looks absolutely miserable. Labour MPs are going on the record saying that the chancellor is toast, and the reality is that she is a human shield for his incompetence. In January, he said that she would be in post until the next election. Will she really?
Starmer replied:
[Kemi Badenoch] certainly won’t. I have to say, I’m always cheered up when she asks me questions or responds to a statement because she always makes a complete mess of it and shows just how unserious and irrelevant they are.
She talks about the black hole, they left a £22bn black hole in our economy and we’re clearing it up, and I’m really proud that in the first year of a Labour government, we got free school meals, breakfast clubs, childcare, got £15bn invested in transport in the north and the Midlands.
We’re cutting regulation, planning and infrastructure is pounding forward, building 1.5m homes, the biggest investment in social and affordable housing, and of course the three trade deals.
Badenoch replied:
How awful for the chancellor that he couldn’t confirm that she would stay in place.
Updated
Harriet Cross asks when it will be farmer’s turn for a U-turn on the famer’s inheritance tax?
Starmer replies by saying the Labour government had the most significant funding for farmers in the latest budget.
Updated
Starmer refuses to rule out tax rises to fund U-turn on welfare bill
Starmer declined to rule out autumn tax rises from the dispatch box.
Badenoch told the Commons:
He’s got some brass neck. Has he read the papers this morning?
That bill will achieve nothing. It is a pointless waste of time and is absolute proof that he doesn’t have a plan.
Let me tell the house what’s going to happen: in November, the chancellor [Rachel Reeves] is going to put up our taxes to pay for his incompetence. We on this side of the house know that you can’t tax your way to growth, but people out there are frightened.
Badenoch later asked:
Can he reassure them by ruling out tax rises in the autumn budget?
Starmer replied:
She knows that no prime minister or chancellor ever stands at the despatch box and writes budgets in the future. That isn’t what they did, and it isn’t what we do, and she knows it.
He accused the Tories of having presided over “stagnation, and that is what caused the problems”.
Updated
Responding, Keir Starmer told the Commons:
I’ll tell them what they did to the welfare system – they broke it. And it’s the same as the NHS. What did they do? They broke it. Same as the economy, what did they do?
Labour MPs chimed in as the prime minister continued:
They broke it.
Starmer continued:
They broke everything that they touched, and now she describes the broken system that we are trying to fix. And what did she do?
She voted against fixing the system that they broke. And I’ll tell you and spell that out, they voted last night for the system that is keeping one million young people not learning or earning, that is a disgrace of their system.
They voted for a system where we have three million people out of work on ill health, and they voted for that system.
Kemi Badenoch has asked whether prime minister Keir Starmer is “too weak to get anything done”.
The Conservative leader told the Commons:
I’ll tell him what we did on welfare.
When Labour MPs laughed, she added:
Why are they laughing? They don’t know. My party delivered the biggest reform of welfare in government. We got record numbers of people into work including millions of disabled people, and we cut the deficit every year until Covid.
Badenoch continued:
What he forgets is that since the election, since he became prime minister, an additional 1,000 people a day are signing on to incapacity benefits. That is 50% more than under us.
And astonishingly, because of the mess they made yesterday, because there’re no more savings, sickness benefits alone – alone – are set to rise to £100bn on his watch. He cannot reduce that now.
Badenoch described the universal credit and personal independence payment bill as being “completely gutted” and asked:
He said that he would take the difficult decisions, but isn’t the reality that he is too weak to get anything done?
Updated
Keir Starmer is the first prime minister to “propose a bill to save money, who ended up with a bill which costs money”, Conservative leader Kemi Badenoch said.
Badenoch said:
I don’t think the prime minister actually watched what happened in the house yesterday. His bill was completely gutted, a U-turn in the middle of the debate removing clause five. Where on earth was he?
The reason why he can’t answer the question is because he knows it doesn’t save any money. It’s going to cost millions. This is the first prime minister in history to propose a bill to save money, who ended up with a bill which costs money. So if the bill does not cut welfare spending, can the prime minister tell the house how many people it will get into work?
Starmer replied:
We have already started changing the job centres and investing in support back into work.
He added:
The bill last night will help people back into work, and of course, the Timms review is ongoing. But I tell you what won’t help people back into work, what … won’t help control the costs, and that is voting to keep the broken system. And that is what they did last night.
Everybody in this house accepts the current system is broken. It invites the question, who broke it? They broke it, and last night, they voted for the status quo. The broken system is their policy, that won’t help individuals, taxpayers, certainly won’t help the economy.
The work and pensions secretary, Liz Kendall, is standing behind the speaker’s chair during PMQs instead of on the frontbenches alongside Starmer.
Badenoch refers to a series of “humilating u-turns” from the Labour government. She says the country needs to learn to live within its means.
Starmer replies by listing promises he says his government has made and delivered. Again, he brings up the “£22bn black hole” left by the Tories.
Updated
Unemployment has risen every month since Labour have taken over, says Badenoch.
Starmer says he’s really proud of Labour’s work on free school meals, affordable housing, trade deals and much more.
Badenoch says Starmer can’t confirm that the chancellor will stay in her job.
Updated
Badenoch: welfare bill 'completely gutted'
Badenoch says Starmer can’t control his MPs. She adds that while the welfare bill passed, it was “completely gutted” by concessions before the vote.
In response, Starmer says the Tories broke “everything they touched”.
Badenoch fires back that the PM has a “brass neck” and asks if he’s read the papers this morning. People out there are frightened. Can he rule out tax rises in the budget?
Starmer replies that she knows no PM stands at the dispatch box and writes budgets.
Updated
Welfare bill will be 'better for individuals, taxpayer and economy', says Starmer
Kemi Badenoch begins by saying its been a difficult week for the prime minister.
She asks:
How much is his welfare bill going to save?
Starmer replies that the welfare bill is consistent with the principles that he previously set out and will be “better for individuals, better for the taxpayer and better for the economy”.
Updated
Labour’s Paul Waugh (Rochdale) asks about child poverty and free school meals.
Giving children the best start in life is important to him, replies Starmer.
Updated
Keir Starmer starts by saying thanking the NHS staff for their services as the NHS celebrates its 77th anniversary this Saturday. He says tomorrow the government’s 10-year health plan will be announced.
Updated
The House of Commons is filling up in anticipation for today’s PMQs. Both Keir Starmer and Kemi Badenoch can be spotted. Northern Ireland questions is just finishing up.
A live stream of today’s PMQs has been added to the top of the blog. You may need to refresh the page to see it.
More urgent and bolder action is needed to improve Scotland’s diet and tackle growing obesity rates, the nation’s food standards experts have said, reports the PA news agency.
Food Standards Scotland (FSS) said recent moves towards a preventive approach have helped but progress remains too slow and Scotland is lagging behind the rest of the UK in some areas.
Results from the latest Scottish health survey, which was conducted in 2023, showed 32% of adults were living with obesity, up from 24% on 2003.
According to the PA news agency, FSS welcomed plans for restrictions on the promotion of high fat, salt and sugar (HFSS) food, but said a more fundamental change is needed.
The agency will be writing to health secretary Neil Gray to call for a more joined-up approach – including on areas reserved to Westminster such as the sugar levy and food labelling.
FSS board chair Heather Kelman said:
We welcome the direction of travel, but action must be stronger, faster, and better resourced.
Public health cannot continue to take a back seat to commercial interests. Delays and compromises only serve to deepen existing health inequalities with a continuing increase in dietary-related health costs.
She noted that Scotland faces some of the worst diet-related health outcomes in Europe, including on obesity and type 2 diabetes.
Kelman continued:
Without urgent and coordinated action, Scotland risks missing its ambition to halve childhood obesity by 2030, and allowing diet-related illness to continue placing unsustainable pressure on the NHS.
Clinical solutions can help but are not a panacea and preventing dietary related ill-health conditions is still a much better solution.
We need a bold strategy to reshape the food environment. The intent is there.
Now we need delivery, leadership, and the political will across all UK administrations to follow through.
And the prime minister is on his way to the House of Commons for today’s PMQs.
Keir Starmer has said that the Labour government is “delivering the biggest boost to social and affordable housing in decades”. In a series of posts on X on Wednesday, the prime minister wrote:
‘I don’t think we’ll ever be able to get our own place’. I heard that constantly after 14 years of Tory failure on housing. I don’t want to hear it again. My Labour government is delivering the biggest boost to social and affordable housing in decades.
The Tories snatched the dream of home ownership away from an entire generation. With the biggest boost to social and affordable housing in decades, my Labour government will make it a reality for families across Britain.
Starmer to face PMQs after welfare bill climbdown
The UK Covid-19 inquiry is hearing evidence from former health secretary Matt Hancock today. I’ll be sharing updates as they come in.
Also, at 12pm we have prime minister’s questions (PMQs) where prime minister Keir Starmer will be taking questions in parliament.
Here is the list of MPs down to ask a question.
Updated
When ministers announced major changes to welfare, many were left in shock that such deep cuts would be enacted by a Labour government, despite the urgent need to address the spiraling cost of benefits. But thanks to strong opposition from disabled people, organisations and rebel Labour MPs, many of the proposals were amended or removed before the bill passed through parliament.
The Guardian spent time with dissenting voices in the run-up to the vote, to learn what was at stake for disabled people, already disproportionately affected by rising poverty in the UK. You can watch the video report here:
Rayner defends Starmer, saying he is 'doing the job for Britain'
Angela Rayner has defended Keir Starmer as “doing the job for Britain” as he approaches his first year in office.
The deputy prime minister said “there’s been a lot going on” in the 12 months since Starmer entered Downing Street, and indicated that she is not interested in the job running the country, reports the PA news agency.
Speaking to ITV’s Lorraine programme on Wednesday, Rayner was asked whether the prime minister is tired, and responded:
Even before I was in politics, I said that have you ever seen a prime minister after a year or two in government?
And people always say to me, do you want to be prime minister? Not a chance. It’ll age me by 10 years within six months.
She added:
It is a very challenging job, and there’s been, to be fair for Keir Starmer, there’s been a lot going on.
He’s been all around the world trying to repair the relationships in Europe. We’ve got the trade deals that the previous government wasn’t able to do, tackling the things like the tariffs that the president in the US wanted to put on to the UK, which would have damaged our economy again.
There’s a lot going on, and the prime minister’s been [ …] here, there and everywhere, doing the job for Britain.
Polling expert Prof Sir John Curtice has referred to Starmer’s first year in office as “the worst start for any newly elected prime minister”.
He told Times Radio that the prime minister was “never especially popular” and that “the public still don’t know what he stands for.”
Asked if she would be interested in being prime minister at some point, Rayner told the ITV programme: “No”.
She said that she is “passionate” about issues including workers’ rights and council housing. “I’m very interested in delivering for the people of this country, because … to be elected as an MP from my background was incredible,” she said, adding:
Having that opportunity to serve my community that have raised me, looked after me, given me opportunities, and I don’t forget that. And to be deputy prime minister of this country … it’s got to count for something.”
Frances Ryan has spoken to disabled people to get their reactions to the passing of watered-down welfare bill. You can read the news feature here:
The chief executive of a miscarriage of justice watchdog for England, Wales and Northern Ireland has resigned after serious failings in the case of Andrew Malkinson.
Karen Kneller, who had held the position since 2013, has left her job at the Criminal Cases Review Commission (CCRC) after one of the worst miscarriages of justice in British legal history, it was announced on Wednesday.
Malkinson, who spent 17 years in prison for a rape in Greater Manchester that he did not commit, was cleared in July 2023. His case was knocked back twice by the CCRC until his legal team carried out crucial DNA testing that was then repeated by the commission and led to his release.
A report on the CCRC’s handling of the case in July last year laid bare “a catalogue of failures”, finding that Malkinson could have been exonerated almost a decade earlier. Thousands of cases are now being reviewed as a result of the botched process.
The welfare bill passed, but it was chaos, writes John McDonnell. In his latest Guardian opinion piece, McDonnell warns that “a party this dysfunctional and divided cannot escape the wrath of voters at the next election”.
You can read it here:
Children should not be strip-searched or detained unless a last resort, say MPs
Children should not be detained in custody unless arrested for a serious crime and strip-searched only under truly exceptional circumstances, two parliamentary reports have said.
Harrowing testimonies of children in England and Wales who were strip-searched and who accused police of racism and making damaging, disrespectful comments are included in the research for the all-party parliamentary group (APPG) on children in police custody.
The reports – the culmination of a year’s research involving children, police forces and parents – were released days after the sacking of two Metropolitan police officers who were involved in the strip-search of a schoolgirl who become known as Child Q.
While a police misconduct hearing found that racism was not a factor in that incident, the research gives voice to young people who said that racism was a factor in their strip-searches.
Children as young as 10 in England and Wales are currently subject to the same processes and have essentially the same protections as adults when they are detained in police custody.
Instead, the MPs on the group say that police detention should be the last resort for a child and that any initial detention period should be limited to 12 hours – half of the time that adults can be held before they must be charged or released.
Dr Miranda Bevan, a law lecturer at King’s College London who led an inquiry for the APPG, said that children who were detained were disproportionately likely to have special educational or communication needs, to have been exploited or suffered victimisation, and to have been known to mental health authorities.
“Yet these children – some as young as 10 – are being left alone in a police cell, with very limited adult support, for up to 24 hours,” she said. “They are expected to decide whether or not they want to accept legal representation; a decision that they should not be asked to make in those circumstances.
“We must reshape police custody into a space that recognises and responds to the unique needs of children. Reform must be rooted in evidence, and that evidence starts with listening to children and examining their experiences.”
The APPG puts forward 10 recommendations, including a ban on strip-searching children unless under truly exceptional circumstances and making it a requirement that legal advice be provided for all children detained in police custody.
On Wednesday, Angela Rayner sought to reassure people who had been “scared” about the proposed benefits changes, reports the PA news agency.
Speaking to ITV’s Lorraine, the deputy prime minister said:
Anyone listening to your show today, they know that there will be no changes to their welfare.
I want to make sure that people are reassured by that, because a lot of people have been scared about what’s going to happen.
Twelve of England’s regional mayors back plan for ‘national active travel network’
Twelve of England’s regional mayors have signed up to an unprecedented plan to create a “national active travel network”, focusing initially on helping children to walk, cycle or scoot to school safely.
The scheme, which involves all non-London regional mayors other than one from Reform UK, is intended to fit into wider efforts to devolve transport planning, working with Active Travel England (ATE) to implement schemes they think would help their area.
It has the backing of Chris Whitty, the chief medical officer for England, who said the scheme has the potential to “significantly improve” public health in the areas involved, covering 20 million people overall.
The 12 mayors, nine of them Labour and two Conservative, plus Luke Campbell, the Reform UK mayor of Hull and East Yorkshire, have signed a joint pledge to “work together to improve our streets for everyone, for the benefit of the health, wellbeing and connectedness of our communities”.
The initial focus from this autumn will be on trips to and from school, with a pledge to create a combined 3,500 miles of routes safely linking schools to homes, town and city centres, and transport hubs.
It will be based around interventions such as safer road crossings and blocking motor traffic outside schools at drop-off and pick-up times.
Ministers 'have to work harder' to bring down small boat numbers, says McFadden
Ministers are going to “have to work harder” to bring down small boat crossings, a member of Keir Starmer’s cabinet has said amid record numbers in the first half of this year, reports the PA news agency.
Pat McFadden told LBC “everyone in government knows it’s a big challenge” but he declined to give an assurance that the figures would be down by this time next year.
The chancellor of the duchy of Lancaster said:
We are going to have to work harder to bring the numbers down.
Everyone in government knows it’s a big challenge, and as a team we are determined to meet it.
Pressed specifically on whether the numbers would be down by this time next year, McFadden said:
I’m not going to make a prediction.
Asked again for an assurance that the numbers will reduce, he added:
I can give you an assurance that the numbers at the moment are too high. We are working together to tackle this.
Helen Miller, the new head of the Institute for Fiscal Studies thinktank, said the lack of savings from the personal independence payments (Pip) changes made tax rises “increasingly likely” at the budget and that the chancellor, Rachel Reeves, now had “very little wriggle room”.
The welfare bill as it stood would now not create any savings, she told Today:
By the end of this parliament the government will save nothing.
With the £5bn gone, and about £1bn extra going on the recent U-turn over winter fuel payments, much of Reeves’s fiscal headroom had gone, Miller said, particularly if growth forecasts were scaled back.
The overall handling of the bill, which involved a sequence of climbdowns over Pip as ministers faced the prospect of the first defeat for a government bill at second reading since 1986, has led to fingers being pointed at the Downing Street political operation, Labour whips and Keir Starmer himself.
Updated
Co-leader of the Green party Carla Denyer has said that “it’s time” for the chancellor, Rachel Reeves, to “look for fairer and more sensible ways to raise money – like a wealth tax on multimillionaires and billionaires”.
Posting on X on Wednesday morning, Denyer wrote:
After govt’s 11th hour 59th minute climbdown over Pip it’s time for Reeves to go back to the drawing board and look for fairer and more sensible ways to raise money – like a wealth tax on multimillionaires and billionaires to raise up to £24bn a year.
Ministers should be looking at measures around wealth taxes or capital gains tax, a leading backbench rebel has suggested.
Rachael Maskell told BBC Radio 4’s Today programme that “we need to look at those with the broader shoulders”.
Asked what she would say to those who are worried about public finances, Maskell said:
As am I worried about the state of the public finances, and of course, we know what we inherited a year on, we have still got to keep our focus there.
And that’s why I think we heard very much in the debate, including from myself, that we need to look at those with the broader shoulders, as the prime minister said, contributing more into our system, but never pushing down on the poorest.
And that was what the dynamic was yesterday, that we do need to look at things like a wealth tax, £24bn, or equalisation of capital gains tax.
Here is our news story on the welfare bill being voted through yesterday:
And our interactive which shows how your MP voted:
Updated
What happened yesterday with the welfare bill?
In case you missed yesterday’s political developments, here is a handy summary from my colleague Andrew Sparrow:
MPs voted through the government’s welfare bill by 335 votes to 260 - a majority of 75 – after a rebel amendment to kill off the bill was defeated easily after concessions over planned Pip cuts.
The work and pensions secretary, Liz Kendall, ruled out resigning in her interview with Chris Mason, the BBC political editor, saying she wanted to carry on despite her bill only passing after multiple U-turns.
After a week of chaos that left the prime minister’s political authority badly damaged, Labour MPs were finally won over by a commitment to shelve plans for deep cuts to personal independence payments (Pip)
Ministers’ concessions on the welfare bill signalled a “change in power between the prime minister” and disabled people, one of the leading backbench rebels has suggested, reports the PA news agency.
Rachael Maskell told BBC Radio 4’s Today programme that Tuesday saw “the bill disintegrating before our eyes”.
“Even in the last moments of the debate, when the minister was winding up, we heard that other sections of the bill will be removed that’s appertaining to Northern Ireland,” she said, adding:
And I think throughout the day, what we saw was a change in power between the prime minister and his government and disabled people across our country, they having their voice at the heart of parliament, and that’s why I put the reasoned amendment down.
The York Central MP also said that she is “glad” that the debate was “had in public” and “now disabled people should feel empowered to have their voice at long last in an ableist parliament”.
Cabinet minister declines to rule out tax rises after welfare concessions, saying there'll be 'financial consequences'
A cabinet minister has declined to rule out tax rises after Labour’s welfare concessions to backbench rebels.
Pat McFadden told BBC Breakfast he is “not going to speculate” on what could be in the budget, due in the autumn, but said that ministers “will keep to the tax promises” in their manifesto.
Labour faces renewed speculation over its tax plans after concessions to the party’s welfare rebels left a £4.8bn hole in Rachel Reeves’s spending plans.
Asked whether economists were right that tax rises look likely, the chancellor of the duchy of Lancaster told the programme:
This is one moving part of the budgetary picture, it does have a financial consequence yesterday.
I’m not going to speculate on where the budget lands, because there are so many other different moving parts in it, and it wouldn’t make sense for me to do that.
Asked explicitly whether he could rule out tax rises, McFadden said:
I’m not going to speculate on the budget.
We will keep to the tax promises that we made in our manifesto when we fought the election last year. But it doesn’t make sense for me to speculate on something where, as I say, there are so many moving parts of which this is only one element.
Separately, McFadden told Times Radio that there will be “financial consequences” to the government’s concessions to welfare rebels.
He told Times Radio:
This is a decision that will have financial consequences. The process of the last couple of weeks does have financial consequences.
They will all be taken together with all the other moving parts that there are in the economy, in the fiscal picture at the budget, and that will be set out at the time. But I’m not denying that when you set out on a plan that has a cost attached to it, and then you have to change that or take it forward in slower time, that is a decision with financial consequences.
MPs voted through the government’s welfare bill by 335 votes to 260 – a majority of 75.
The concessions, including the last-minute shelving of plans to restrict eligibility for personal independence payments (Pip), were enough to head off the government’s first Commons defeat on Tuesday evening. But they also removed a key plank of Keir Starmer’s welfare reform agenda, delaying changes to Pip until after a review of the benefit not due to conclude until autumn 2026.
More on this in a moment, but first, here are some other developments:
Ministers should be looking at measures around wealth taxes or capital gains tax, a leading backbench rebel has suggested, after concessions left a hole in the chancellor’s spending plans. Rachael Maskell told BBC Radio 4’s Today programme that “we need to look at those with the broader shoulders”.
MPs will debate legislation today to ban Palestine Action. A draft order was laid before parliament on Monday to amend the Terrorism Act 2000 to include Palestine Action as a proscribed organisation, making membership and support for the direct action group illegal. If approved, it would become a criminal offence punishable by up to 14 years in prison. It is expected MPs and peers will debate the legislation over Wednesday and Thursday and, if approved, the ban could come into force by Friday.
Children should not be detained in custody unless arrested for a serious crime and strip-searched only under truly exceptional circumstances, two parliamentary reports have said. Harrowing testimonies of children in England and Wales who were strip-searched and who accused police of racism and making damaging, disrespectful comments are included in the research for the all-party parliamentary group (APPG) on children in police custody.
Twelve of England’s regional mayors have signed up to an unprecedented plan to create a “national active travel network”, focusing initially on helping children to walk, cycle or scoot to school safely. The scheme, which involves all non-London regional mayors other than one from Reform UK, is intended to fit into wider efforts to devolve transport planning, working with Active Travel England (ATE) to implement schemes they think would help their area.
Updated
