British decline linked to Brexit, weak leadership and poor finances in damning report

David Maddox
Thu, 16 May 2024 at 2:59 pm GMT-6·3-min read

Weak leadership, poor economic management and Brexit have dragged Britain out of the top 10 countries in a global index on good government.

The decline of Britain under the Tories has been charted by the global Chandler Good Government Index (CGGI) which saw it take 11th place.

At a time when Rishi Sunak has been under siege from his own Tory MPs, the UK’s place on the annual list was made worse by scores for “leadership and foresight” putting it in 20th place.

It was also hit by coming 27th in “financial stewardship”. The findings come amid a report of an exodus by companies from the City of London.

Prime minister Rishi Sunak steps out of 10 Downing Street. The UK was marked down for weak leadership (PA)

Despite Brexit and the fallout of leaving the EU, Britain’s position was boosted by coming second in the “reputation and global influence” category, being only beaten by France. Overall Singapore came top of the index. However, Brexit hurt the UK badly in its international trade score, with it dropping by 26 places.

The report noted that leadership makes an important difference.

It stated: “What public sector leaders decide, do, or say impacts public trust in government. Good leaders create and sustain cultures of integrity, competence, and service. They have a clear sense of medium- and longer-term pathways for their government and country. They cultivate the foresight needed to anticipate emerging challenges and opportunities.”

It scored countries’ governments for ethical leadership, long-term vision, adaptability, strategic prioritisation and innovation.

Meanwhile, financial stewardship was scored on government debt levels, spending efficiency, budget surplus, and risk premium.

Jeremy Hunt is in charge of the nation’s finances. The UK was also marked down for its financial stewardship (PA)

The UK’s global influence score was high but was harmed by being outside the EU, meaning that its status on international trade had dropped from joint second to 28th.

The findings were the conclusion of CGGI’s panel of experts and leaders in the world of business and government.

They included Dr Reuben Abraham, chief executive of Artha Global; Elizabeth Andersen, executive director of the World Justice Project; Dr Christian Bason, founder of the Transition Collective; Nathalie Delapalme, chief executive of the Mo Ibrahim Foundation; Adrian Brown, executive director of the Centre for Public Impact; Dr Ed Olowo-Okere, vice president at the World Bank; Dr Manuel Gerardo Flores Romero from the OECD; and Professor Kent Weaver, professor of public policy and government at Georgetown University.

Labour has jumped on the findings as evidence that the political chaos under the Tories and uncertainty surrounding Rishi Sunak’s leadership coupled with the fallout of Liz Truss’s mini-budget have put the UK into decline.

Shadow chief Treasury secretary Darren Jones said: “These new rankings fly in the face of Rishi Sunak's argument that we are turning the corner.

“The United Kingdom is a brilliant place with so much potential, but we have been disastrously let down by 14 years of chaos, with five prime ministers in seven years and our economy still reeling from the Tories’ bombshell mini-budget.

“Labour has a real plan to turn the page on this decline. With Keir Starmer's Labour Party, we will spur on a decade of renewal with strong fiscal rules, a new national wealth fund to make smart, strategic investments in the industries of the future, and public services we can be proud of again.”

The findings come as Sir Keir Starmer in effect launched Labour’s election campaign with a top promise of “economic stability” in his six first steps published on a new pledge card.

But Downing Street sources said they found the findings “strange” and “lacking in evidence”.

A source close to the prime minister said: “I would point you to GDP stats and what they showed last week. Joint fastest growth in the G7, one of best and fastest recoveries since pandemic (Germany and others still in recession) so not sure how the facts tally with their rankings.”

UK

SIR KEIR'S LABOUR ARE RED TORIES

Corbyn 'won't be Labour candidate at election,' says Reeves despite local party’s protests in north London

Nicholas Cecil
Fri, 17 May 2024 

Corbyn 'won't be Labour candidate at election,' says Reeves despite local party’s protests in north London

Jeremy Corbyn will not be a Labour candidate at the next general election, says Rachel Reeves despite protests by the local party in his Islington North constituency.

The shadow Chancellor flatly ruled out the former leader standing for Labour after the antisemitism row which so damaged the party when he was at the helm.

The process has been opened to select a Labour contender for Islington North, the area where Mr Corbyn has been the MP since 1983.

But he was stripped of the Labour whip, so is no longer a Labour MP, after Sir Keir Starmer became leader and a probe into antisemitism within the party.

Ms Reeves told BBC Radio London: “When Jeremy Corbyn was leader of the Labour Party, I’m afraid that antisemitism was rife within the Labour Party and we were investigated by the Equalities and Human Rights Commission over the treatment of Jewish people.

“When that report was published, Jeremy Corbyn sadly refused to acknowledge what had happened in the Labour Party and his role within it.”

She added: “We have got an independent complaints process within the Labour Party.

“He’s no longer a Labour MP and he will not be the Labour candidate at the next election.”

But local Labour members are still pushing for Mr Corbyn, now an independent MP, to be able to throw his hat into the ring to be the party’s candidate for the north London seat.

In a series of tweets, Islington North Labour Party said: “Statement from Islington North CLP Officers: Islington North CLP members have been informed that the National Executive Committee (NEC) has opened the parliamentary candidate selection procedure for Islington North.

“We support Keir Starmer’s statement that “Local Party members should select their candidates for every election.” We ask that local democracy be respected & that we be able to choose our prospective parliamentary candidate from amongst any Labour Party member in good standing.

“An undemocratic selection process would harm the Labour Party’s efforts to defeat the conservatives and to achieve the real change this country and our communities in Islington North desperately need.”

Under the selection process, applications for the Labour stronghold seat will close on May 20 with a shortlist announced a week later.

The party will then host an online hustings for local members on May 29.

The Labour candidate will be announced on June 1.

Mr Corbyn, who has won Islington North for Labour at each of the last 10 general elections, has hinted that he may stand as an independent candidate.

He has made clear that he would like to continue to represent the area in Parliament.

He would be a very high-profile candidate. But independent candidates, without a party machine behind them, often struggle to win.

Sir Keir faced anger in Labour ranks over his decision to welcome Tory Rightwinger Natalie Elphicke into the Labour Party but still deny the whip to veteran MP Diane Abbott.

Hackney North and Stoke Newington Ms Abbott was suspended from the parliamentary Labour party last April for appearing in a letter to the Observer to diminish racism against Jewish people.

She withdrew her remarks and apologised "for any anguish caused" but still remains outside the parliamentary Labour party.

Islington North: Who could replace Jeremy Corbyn as Labour's candidate in the general election?

Sky News
Updated Thu, 16 May 2024 


Names have begun to emerge in what will likely be a tense and toxic contest to replace Jeremy Corbyn as the Labour Party's candidate for Islington North at the next general election.

The party formally launched the process to select its candidate for the north London seat after months of uncertainty.

Paul Mason, the former Channel 4 journalist, has confirmed he will seek the Labour nomination for the safe seat, as has transport author Christian Wolmar.

Labour insiders also suggested Islington councillor Praful Nargund could throw his hat in the ring, along with fellow local councillor Sheila Chapman and London Assembly member Sem Moema.

Uma Kumaran, a former adviser to Sir Keir Starmer, is also rumoured to be considering running to be the Labour candidate.

Sources close to Sam Tarry, the current Labour MP for Ilford South who was deselected by local party members in October 2022, dismissed rumours he was considering running in the selection, pointing out that he once served as Mr Corbyn's campaign manager.

Another Labour insider said running in a contest potentially against Mr Corbyn was "a hard sell for most activists".

"You will have a target painted on your back for the rest of your career," they added.

Mr Corbyn was first elected to represent Islington North in 1983 and has won it at each of the last 10 elections.

Sir Keir effectively barred his predecessor from ever standing as a Labour candidate when he proposed a motion by the party's ruling body, the National Executive Committee (NEC), which said Mr Corbyn "will not be endorsed by the NEC as a candidate on behalf of the Labour Party at the next general election".

It cited the dismal defeat Mr Corbyn led Labour to as leader in the 2019 general election in arguing his candidacy should be blocked and said the party's chances of securing a majority in the Commons would be "significantly diminished" if he was endorsed.

Mr Corbyn has been without the party whip - meaning he cannot sit as a Labour MP in the Commons - since 2020 following his response to a report into antisemitism within the party by the Equalities and Human Rights Commission, which Sir Keir and his allies felt downplayed the significance of the problem while he was leader.

Since the passing of the NEC motion, speculation has been rife as to what Mr Corbyn's future could hold, including rumours he had considered running for London mayor, which he ultimately decided against - and that he could run against his former party as an independent candidate in Islington North, the seat he has represented for more than 40 years.

Sky News understands that although Mr Corbyn could still technically apply to be the Labour candidate for the seat he currently holds, because of the NEC motion, his application would be immediately dismissed and would not be considered by the party's selection committee.

That reality could prompt Mr Corbyn into formally declaring he will stand as an independent in Islington North - a move that is likely to result in him being suspended from the party he has been a member of for 50 years.

Applications to be selected to run for Labour in the seat opened on Wednesday, with candidates expected to be shortlisted next week.

The hustings will take place online, with Labour dismissing suggestions this is unusual. The result is expected to be announced on 1 June, according to reports.

Momentum, a grass-roots group set up in the wake of Mr Corbyn's leadership election victory back in 2015, hit out at the decision to bar Mr Corbyn from standing - pointing to his support among local Labour members.

John McDonnell, who served as shadow chancellor while Mr Corbyn was leader, said on X, formerly known as Twitter: "The wishes of the Labour Party members of Islington North should be respected and they should be allowed to select the candidate of their voice and that includes Jeremy Corbyn, who has given his life to representing his community."

Sky News has approached Mr Corbyn and the people named in this article for comment.

Union urges Labour not to ban new North Sea licences without plan for jobs


Heather Stewart
Thu, 16 May 2024 

Labour should be willing to continue issuing new North Sea licences unless it can show it will protect jobs, says Unite

The UK’s oil and gas workers risk becoming “the coal miners of our generation,” Unite’s general secretary, Sharon Graham, has warned, urging Labour not to ban new North Sea licences without a clear plan to safeguard jobs.

Unite is launching a billboard campaign in six Scottish constituencies aimed at persuading Keir Starmer to commit more investment to north-east Scotland, the centre of the offshore oil and gas industry.

Unless Labour can show it will protect jobs and communities, it should be willing to continue issuing new licences for oil and gas exploration, Unite argues. The slogan for the union’s campaign is “No Ban Without A Plan”.

“They are at risk of becoming the coal miners of our generation,” Graham said. “We only have to look at what’s happened in the coal towns. I’m the daughter of mining stock – my family’s from the north-east, lots of them were miners. And it’s decimation in some of these places. They’ve never recovered. And the difference is, we know this time – we can see it coming down the track.”

The shadow climate secretary, Ed Miliband, has promised to base Labour’s planned state-backed green power firm, Great British Energy, in Scotland. And part of Labour’s £7bn “wealth fund” will be earmarked for wind power.

But Unite, which was Labour’s biggest donor in the 2019 general election, wants to see more specific pledges of investment in green technologies in north-east Scotland.

Graham said Unite research suggested that £6bn over six years would be needed to kickstart wind turbine manufacture in the region. “You should not be letting go of one rope before you’ve got hold of another,” she said. “My main thing is that I cannot allow these workers to be sacrificed on the altar of net zero.”

She claimed a clear offer on jobs and investment would help Labour make much-hoped-for gains in Scotland. “Labour would be the heroes of the hour. Why wouldn’t you do that?” she said.

Most of the seats in which Unite is running its No Ban Without a Plan campaign – or their predecessors before boundary changes – are held by the SNP with comfortable majorities. Two are Aberdeenshire North and Moray East, and Aberdeen North.

Despite the imperative for the UK to move away from fossil fuels, some unions expressed alarm last year when Labour first announced that it would not issue new licences for oil and gas exploration. The GMB general secretary, Gary Smith, called the decision naive. Starmer responded by saying to the GMB’s conference last June: “What I will never let happen is a repeat of what happened in coal mining where an industry came to an end and nobody had planned for the future.”

But Labour went on to drop its £28bn-a-year green investment pledge, sparking concerns among unions and environmental campaigners about whether it had set aside sufficient resources to smooth the transition to a net-zero economy.

Chaitanya Kumar, of the New Economics Foundation thinktank, said: “The oil and gas industry is ultimately a threat to us all and needs to be scaled down considerably. But ensuring a fair transition deal for workers is non-negotiable. Fortunately, Labour still have the time to come up with a plan without compromising on its commitment to stop new drilling of fossil fuels.”

The campaign group Uplift, which calls for a “rapid and fair” transition away from oil and gas in the UK, estimates that the sector supports 200,000 jobs either directly or indirectly, in the supply chain – a third fewer than a decade ago, as output has declined over time.

Uplift director Tessa Khan said any government should work with local communities to manage the shift away from fossil fuels. “This part of the climate energy transition is going to require a huge amount of industrial change, and we absolutely cannot afford to victimise or throw communities under the bus,” she said.

A Labour source said: “Labour has a non-negotiable commitment to a proud future for the North Sea. We will deliver the most significant investment in the North Sea in a generation as we pursue our mission for energy independence and lower bills.

“If the Conservatives in Westminster and the SNP in Holyrood are re-elected they will continue to sell out workers and communities by leaving the industry without a plan for the future, as they have done for the last 14 years.”

Graham has made workplace battles on pay and conditions, rather than internal Labour politics, the centrepiece of her leadership since succeeding Len McCluskey, a close ally of Jeremy Corbyn, three years ago.

However, she has previously pushed for stronger commitments from Labour on protecting jobs in the steel sector, and she attended a crunch meeting this week on the party’s policy on workers’ rights.

Jamie Peters, a campaigner at Friends of the Earth, said: “Two things are clear as we head towards the next general election. Firstly, any incoming government must accelerate our shift to a clean energy system, including no new oil and gas in the North Sea. This is the bottom line if we’re to meet our climate goals and stem the very worst of climate breakdown.

“And secondly, the transition must be designed in a way that’s fair, with workers and new jobs in emerging green industries at its heart, ensuring that no one gets left behind as we build a brighter future. What we’re yet to see is a plan for a cleaner Britain that’s equal parts rapid, ambitious and fair.”

• UK
• Keir Starmer Unveils Tony Blair-Style Pledge Card As He Steps Up Bid To Become PM
• 
  Kevin Schofield
  Wed, 15 May 2024
  
  Keir Starmer appears on course to become prime minister. Ash Donelon via Getty Images
  
  Keir Starmer will today unveil a Tony Blair-style pledge card as he steps up his bid to convince voters to make him prime minister.
  
  The six “first steps for change” will include promises that a Labour government will deliver economic stability, cut NHS waiting times, crack down on anti-social behaviour and recruit 6,500 new teachers.
  
  The party leader will also vow to launch a new “border security command” to tackle the small boats crisis and set up the publicly-owned Great British Energy to produce gas and electricity in the UK.
  
  Starmer told a meeting of his shadow cabinet yesterday: “What is crucial about these commitments is that they are part of a long-term plan to get Britain back on its feet.
  
  “Each of the first steps would chime with voters’ aspirations, show a clear set of priorities and a powerful direction of travel.”
• 
  
  Starmer's pledge card Labour Party
  
  Starmer will unveil promises at a presidential-style event in Essex alongside other members of his frontbench team.
  
  The pledge card, featuring a picture of a serious-looking Starmer, has clear echoes of the similar list of retail policies produced by Tony Blair before Labour’s landslide 1997 general election victory.
  
  Starmer said: “These first steps make real our claim that a changed Labour Party is back in service of working people. They show our priorities, what we care about and what the British public cares about. Country first, party second.
  
  “If you’re waiting in pain for NHS treatment, if your child is at school and you want higher standards, if your local area is plagued by anti-social behaviour, if you want cheaper energy bills for good, these first steps show what a Labour government will do to help you.”
  
  He added: “The contrast at the election is going to be stark. A Tory Party that gets nothing done, can’t deliver – struggles to get to the end of the week. And a Labour Party, sleeves rolled up, fixing problems with a long-term plan for change.
  
  “These steps can only be achieved if we pull together, with a sense of common purpose, ending the years of division, and rebuilding the country in partnership.”

UK's Labour sets out plans for government

Peter HUTCHISON
Thu, 16 May 2024 

Labour leader Keir Starmer outlined his plan for government (Oli SCARFF)


Britain's main opposition Labour party on Thursday set out its stall for this year's general election with six key pledges to voters in a de facto campaign launch.

The official five-week election campaign only starts when Prime Minister Rishi Sunak names a date. So far, he has only said it will be in the second half of the year.

Nevertheless, both Sunak, who heads the ruling Conservatives, and Labour leader Keir Starmer have switched to campaign mode.

On Monday, Sunak urged voters to keep faith with the Tories even after 14 years in power marked by austerity measures, Brexit, bitter political in-fighting and scandal.

Labour has been consistently polling well ahead of the Conservatives for the last 18 months, putting Starmer on course to become prime minister as the leader of the largest party in parliament.

He laid out Labour's "first steps" for government at an event in Essex, a key battleground area in southeast England.

Starmer promised economic stability, shorter health service waiting times and a new border security command to tackle irregular immigration.

He also vowed to establish a publicly owned clean energy company, crack down on anti-social behaviour with more neighbourhood police and recruit 6,500 new teachers.

"I'm not going to give you gimmicks," said Starmer, who paced the stage in a white shirt, sleeves rolled up.

"There's no quick fix to the mess that the Tories have made of this country. But this is a changed Labour party with a plan to take us forward."

- Labour's 'missions' -

The pledges, largely made before, are intended to add some flesh to the bones of five "missions" Labour says will spur a "decade of national renewal" after four consecutive terms of Tory rule.

Many commentators likened them to the pledge cards brought in by Labour's most successful leader, Tony Blair, whose 10 years as prime minister began with a landslide victory against the Tories in 1997.

They are set to feature on advertising vans and billboards in target constituencies across England in what Labour says is its most expensive ad campaign since the 2019 general election.

At that vote, Labour under the leadership of left-winger Jeremy Corbyn suffered its worst defeat in nearly a century, as Boris Johnson romped home with his promise to "Get Brexit Done".

Starmer, a centrist pro-European former lawyer, has since moved Labour to the centre ground to make the party a more palatable electoral force.

The Conservatives meanwhile have replaced their leader twice, turning on Johnson after his handling of the Covid pandemic and one scandal too many, then forcing out Liz Truss after just 49 days.

Former finance minister Sunak, 44, has sought to repair the damage caused by Truss's disastrous mini-budget of unfunded tax cuts, which spooked financial markets and sank the pound.

But he goes into the election with the Tories' reputation for economic competence tarnished, and riven by ideological splits between moderates and anti-immigration, free market right-wingers.

- 'Tough spending rules' -

Starmer, 61, promised to implement "tough spending rules" to prevent further misery for people who have seen their household budgets squeezed by high inflation and mortgage hikes.

Sunak, who is hoping for better economic conditions by the end of the year, has to hold an election by January 28, 2025. He is using the time to try to keep his party together and revive its fortunes.

On Monday, he warned that Labour would jeopardise UK security, insisting his party could still win the election.

Johnson's predecessor as premier, Theresa May, said Thursday she believed a Labour win "is not a foregone conclusion".

It would require a massive swing to secure a majority, she told reporters, adding that the voters she met were less enthusiastic about Starmer than they were about Blair.

"The view on those doorsteps is different to the feel pre-1997," May insisted.

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Labour Party manifesto 2024: Keir Starmer’s election promises

Amy Gibbons
Thu, 16 May 2024 

Labour Party manifesto 2024: Keir Starmer's likely election promises

Sir Keir Starmer has announced the policies at the heart of his election campaign in the clearest indication yet of what we can expect to see in Labour’s 2024 manifesto.

The Labour leader made six key pledges at a campaign rally in Essex, one each on his five “mission” areas – the economy, energy, crime, education and the NHS – plus a newly added priority on immigration.

Sir Keir and Rachel Reeves, his shadow chancellor, are seeking to position Labour as the fiscally responsible party that would drive growth in Britain, allowing them to invest in public services such as the NHS.

Here The Telegraph sets out the pledges the party is expected to include in its general election manifesto.

NHS and social care


Tax


Economy


Environment, energy and net zero


Education and childcare


Defence


Pensions


Policing and crime


Migration


Housing
NHS and social care

Two million more operations, scans and appointments in first year


Train thousands more doctors, nurses and midwives


Specialist mental health support in every school


Extra 700,000 dentist appointments and supervised tooth brushing for three to five-year-olds


New “neighbourhood health centres” with joined-up services

Labour has pledged to get the NHS “back on its feet” by reforming the health service rather than “pouring ever-increasing amounts of money” into it.

As an “immediate priority”, it would focus on tackling the “massive” waiting list backlog, with an extra two million operations, scans and appointments in the first year. This would be achieved by paying NHS staff more to work overtime, boosting availability across evenings and weekends.

These policies formed the basis of Sir Keir’s second key pledge to “cut NHS waiting times with 40,000 more appointments each week, during evenings and weekends.”

In a shake-up of primary care, the party would trial “neighbourhood health centres”, bringing together a wide range of services – including doctors, nurses, care workers and mental health specialists – to cater for millions of patients currently clogging up overloaded A&E units. It would also use spare capacity in the independent sector to speed up treatment.

It has also vowed to “bring back the family doctor” – with GPs paid more for ensuring patients can see the clinician of their choice. Labour has said it would use the NHS App to “end the 8am scramble” for GP appointments and allow patients to book directly for routine checks, while boosting self-referrals and cutting red tape in pharmacies.

It would provide an extra 700,000 urgent dentist appointments each year and introduce supervised tooth brushing in schools for three to five-year-olds, while offering “golden hellos” of £20,000 to newly-qualified dentists who agree to work in areas struggling to recruit.

To tackle the mental health crisis, the party has said it would introduce specialist support in every school and provide an open-access hub for young people in every community.

It would also conduct an assessment of all NHS capital projects to identify any inefficiencies before committing any more money to fixing the “crumbling” estate.

Labour has pledged to double the number of medical school spaces to 15,000, a target also proposed by the NHS and endorsed by the Government, and provide 10,000 extra nursing and midwifery placements.

It would also train an additional 700 district nurses and 5,000 health visitors each year, and recruit 8,500 more mental health professionals.

To boost retention, the party would “consider the case for looking more broadly at how public sector pay is set”. It would also introduce a “targeted scheme” to incentivise senior doctors to stay in work.

Labour has pledged to double the number of state-of-the-art CT and MRI scanners and streamline recruitment for clinical trials.
‘Prevention first’ approach

As part of a “prevention first” approach, it would ban the promotion of junk food to young people and back the Tories’ incremental ban on smoking.

The party would establish fully-funded breakfast clubs in every primary school in England and implement a compulsory “balanced and broad national curriculum with a wide range of physical activities”.

It would also introduce stricter legal targets on air pollution and oversee the retrofitting of millions of homes to help keep them warm and free of damp, while guaranteeing the right to sick pay from day one to minimise the spread of illness in the workplace.

At the same time, Labour would work towards a locally-delivered “National Care Service”.

To tackle staff shortages in social care, it would introduce a “fair pay agreement collectively negotiated across the sector”.

And to raise standards, it would require all providers to demonstrate financial sustainability and responsible tax practices, to value their staff, and to deliver high quality care before they are allowed to receive contracts from local authorities or gain registration from the Care Quality Commission.

It would also give people in care homes a new legal right to see their loved ones and support unpaid carers by offering them paid family carer’s leave.

Labour originally said that much of the health plan would be paid for by abolishing the non-dom tax status but the strategy was thrown into disarray when Jeremy Hunt, the Chancellor, announced the same move at the Spring Budget.

The party has since said it will pay for NHS improvements by going further than the Tories and closing an inheritance tax loophole for non-doms while cracking down on tax avoidance.
Tax

Close inheritance tax loophole for non-doms


Crack down on tax-avoiders


Impose VAT on private school fees


No rise in corporation tax


Overhaul business rates and review tax reliefs

Sir Keir’s first key pledge included a vow to keep taxes “as low as possible”, without committing to specific cuts.

This was broadly in line with Labour’s tax policy to date, which has been vague. However the party has been explicit about a few things.

It had promised to scrap the “non-domiciled” regime, which allows people living in Britain to avoid paying UK tax on money they make overseas for up to 15 years – but this policy has been snatched by the Tories, leaving a hole in Labour’s finances.

The party has since pledged to go further by closing the inheritance tax loophole for non-doms and target tax-avoiders to pay for its spending commitments on schools and the NHS.

Elsewhere, the party would implement 20 per cent VAT on private school fees, with the proceeds funnelled into state education.

Ms Reeves has also promised not to raise corporation tax for the duration of the next Parliament and said she would overhaul the business rates system and review all tax reliefs.

Sir Keir has made clear that he would like to reduce the tax burden on “working people”, while Ms Reeves has hinted at cuts for high earners, vowing to ensure “success is celebrated” under a Labour government.

She has attacked the Tories over their decision to freeze income tax thresholds in the face of rising inflation, but not committed to changing this, insisting it would be “irresponsible” to pledge tax cuts without pinpointing how they would be funded.

Ms Reeves has said she has “no plans” for a wealth tax but the party has explored closing a loophole for second homeowners.
The economy

Bid for highest sustained growth in G7


Tough new fiscal rules and enhanced role for the Office for Budget Responsibility (OBR)


New Office for Value for Money


Invest heavily in green projects


New deal for working people

Sir Keir’s first pledge to keep taxes low was contingent on a promise to “deliver economic stability with tough spending rules, so we can grow our economy”.

This drew on existing policies, with Labour having already set an aim to secure the highest sustained growth in the G7. To do this, it would adopt a new approach it has coined “securonomics”, or “modern supply side economics”.

This would involve bringing in “tough” fiscal rules with a new “enhanced role” for the OBR and establishing a new Office for Value for Money to ensure taxpayer cash is being well spent.

The party originally pledged to invest £28 billion in the drive towards a low-carbon economy every year until 2030 but has since dramatically scaled down the spending plan following sustained criticism from the Conservatives.

The proposals include an £8 billion national wealth fund, which would aim to “unlock billions of pounds of private investment” to support the energy transition.

The party would also reform the planning system to fast-track “priority growth” projects, such as battery factories, labs and 5G infrastructure.

And Labour has vowed to deliver a “new deal for working people”, featuring a “genuine living wage”, a “right to switch off”, a ban on zero hours contracts, and an end to fire and rehire.
Environment, energy and net zero

Clean power by 2030


New publicly-owned energy company


End de-facto ban on onshore wind


Expand windfall tax on oil and gas producers


Upgrade five million homes in five years


Extra £23.7 billion spent on green projects over first term

Labour initially vowed to borrow £28 billion per year from day one to invest in its flagship green prosperity plan.

But this pledge has been significantly watered down over time. Ms Reeves first admitted that the annual sum would not be hit until at least the second half of Labour’s first term.

Then Sir Keir cast further doubt on the scale of the investment, saying it would be subject to the party’s fiscal rules. In a major U-turn, he downgraded the spending commitment to just £4.7 billion a year after admitting it was unaffordable.

Under the new, slimmed down blueprint, public funding for a major home insulation drive was reduced by nearly 80 per cent, from a planned £6 billion a year to just £1.3 billion.

As a result, Labour says only five million houses would benefit from the scheme over the course of five years, compared to the original plan of 19 million across a decade. This is the only project the party has said would be scaled down as a result of the change.

The overarching aim is to turn the UK into a “clean energy superpower”, with a zero-carbon electricity system by 2030. To help achieve this, Labour would set up Great British Energy, a publicly owned body that would invest in green projects like wind farms, with a budget of £1.7 billion a year.

This formed the basis of Sir Keir’s fourth pledge, to “set up Great British Energy, a publicly-owned clean power company, to cut bills for good and boost energy security.”

The new national wealth fund would also put money into gigafactories, clean steel plants, “renewable-ready” ports, green hydrogen and energy storage, with funding of £1.5 billion a year.

The green plan, which now amounts to £23.7 billion over five years, would be on top of £50 billion already committed by the Tories, which Labour has promised to match.

It would be partially funded by expanding the windfall tax on oil and gas producers, which was introduced by Rishi Sunak when he was chancellor to help pay for energy bills support.

Meanwhile, Labour has pledged to overturn the de-facto ban on onshore wind in England, set councils binding targets for how quickly they approve green energy projects, and establish a “British jobs bonus” to incentivise firms to build their supply chains in the UK.

Before it announced the U-turn on the £28 billion fund, the party had claimed the green reforms would take £1,400 off annual household bills and £53 billion off energy bills for businesses by 2030, while creating over a million jobs in 10 years.
Education and childcare

Overhaul childcare system


Delivery of ‘more effective’ Ofsted system


Recruit 6,500 more teachers


Review school curriculum and assessment


New register for children in home education


Reform student loan repayments

Sir Keir’s sixth pledge is focused on education, with the Labour leader vowing to “recruit 6,500 new teachers in key subjects to prepare children for life, work and the future, paid for by ending tax breaks for private schools”.

Labour’s plan for schools also includes scrapping single-word Ofsted judgments and replacing them with “report cards”, and commissioning an expert-led review of curriculum and assessment with an emphasis on “life skills”.

Meanwhile, the party has said it would give the regulator new powers to monitor pupil absence rates and legislate for a new register of children in home education. Elsewhere, it has pledged to overhaul Britain’s childcare system and rethink vocational education.

The aim is to ensure half a million more children hit the early learning goals by 2030, deliver a “sustained rise” in school outcomes over the next decade, and expand “high-quality” training routes.

Labour has yet to confirm its plans for childcare, having commissioned a review by Sir David Bell, the former Ofsted chief inspector, into delivering a more effective system.

It has said it wants to build capacity in the sector but has not specified how it would do this beyond removing “legislative barriers to local authorities opening new childcare provision” and supporting the workforce through high-quality training.

Bridget Phillipson, the shadow education secretary, has previously said she wants to move away from the current free hours model, and twice failed to rule out bringing in changes to means-testing.

But Labour has since welcomed Rishi Sunak’s decision to extend free hours to younger children, suggesting it could keep the existing system in place, at least to start with.

The party has said it will not take away new entitlements granted by the Tories, which include 15 hours of free care per week for two-year-olds.

To support older students, Labour would train more than 1,000 new careers advisers and deliver two weeks of work experience for every young person at secondary school or college.

It would also reform the student loan repayment system to make it “fairer”, with scope for a “month-on-month tax cut” for graduates.
Defence

Boost defence spending to 2.5 per cent of GDP


Commit to Nato and nuclear deterrent


Review defence and security to assess need


Create new armed forces commissioner

If it wins power, Labour would aim to raise defence spending to 2.5 per cent of GDP, matching the Government’s existing target. But Sir Keir has said he will only spend the extra money if it is achievable within the party’s borrowing rules.

Labour has also said it would make an “unshakeable commitment” to Nato and Britain’s nuclear deterrent, in a clear departure from the Corbyn years.

It has pledged a new “triple lock” commitment to build at least four new nuclear submarines at Barrow, keep the continuous at-sea deterrent and fund any future upgrades needed to the fleet.

The party would conduct a review of “strategic defence and security” in its first year to “fully understand the state of our Armed Forces, the nature of threats we face and the capabilities needed”.

And it would legislate to establish an Armed Forces commissioner as a “strong independent voice to improve service life”, while ensuring military homes are fit for purpose.

John Healey, the shadow defence secretary, has also said Labour would shift procurement onto an “urgent operational footing” to support Ukraine and replenish British stocks for any future conflicts.
Pensions

Bring back lifetime cap on pension savings


Commitment to the triple lock


Pensions review to ensure best value for savers


New powers for regulator to tackle under-performing schemes

Labour has said it would bring back the lifetime cap on pension savings abolished by Mr Hunt.

Like the Tories, it has committed to retaining the triple lock, which raises the state pension every year in line with whichever is highest out of wage growth, inflation or 2.5 per cent.

It has also pledged to conduct a review of the pensions system to ensure best value for savers, while giving new powers to the regulator to consolidate schemes where they are under-performing.
Policing and crime

Halve serious violent crime in 10 years


Extra 13,000 bobbies on the beat


Reintroduce strengthened anti-social behaviour orders (Asbos)


Scrap £200 rule on shoplifting


New bravery medal for police killed in line of duty

For his fifth pledge, Sir Keir vowed to “crack down on anti-social behaviour, with more neighbourhood police paid for by ending wasteful contracts, tough new penalties for offenders, and a new network of youth hubs.”

The party has promised to halve serious violent crime and raise confidence in the police and criminal justice system to its highest levels, all within a decade.

Specifically, it wants to halve the level of violence against women and girls and incidents of knife crime.

To protect women and girls, the party would put rape units into every police force and domestic abuse experts in 999 control rooms, as well as specialists in the court system. It would also introduce a new domestic abuse register.

To tackle knife crime, it would put youth workers into A&E departments and custody suites and set up 90 new youth hubs to give teenagers the “best start in life”.

And to raise confidence in the police, Labour has pledged to recruit an extra 13,000 neighbourhood and community support officers. It would also introduce compulsory anti-racism training and a new standards regime.

Meanwhile, the party would reintroduce tougher Asbos with powers to make arrests and force fly-tippers to clean up their mess.

It would also scrap the current £200 threshold to ensure all shoplifting crimes, no matter how small, have to be investigated by police.

And it would introduce a new bravery medal for officers who are killed in the line of duty.

To ensure more criminals are brought to justice, Labour would boost the number of crown prosecutors and force the police to recruit detectives directly from industry.
Migration

Treat people smugglers like terrorists


New cross-border police unit


Extra 1,000 caseworkers to cut asylum backlog


Possible returns deal with EU


Repeal Rwanda Bill

Sir Keir’s third pledge is to “launch a new Border Security Command with hundreds of new specialist investigators, and use counter-terror powers to smash the criminal boat gangs.”

It draws on Labour’s plan to address the small boats crisis, which has two main planks: cracking down on the “vile” people-smuggling gangs, and reducing the asylum backlog.

Sir Keir has also indicated that he would be prepared to do a deal with the EU that would involve taking a quota of migrants who arrive in the bloc in exchange for the ability to return those who illegally cross the Channel to England.

The Labour leader has said he would treat people smugglers like terrorists by giving the National Crime Agency expanded powers to freeze their assets and place restrictions on their movement. He would also work more closely with Europe, creating a new cross-border police unit to “tackle gangs upstream”.

Meanwhile, Labour would recruit more than 1,000 caseworkers to cut the asylum backlog, fast-track decisions on applications from “safe” countries, namely Albania and India, and create a new returns unit, again backed by 1,000 staff, to speed up removals.

The party has vehemently opposed the Rwanda deportation scheme and vowed to repeal it.

But Sir Keir has indicated he would be willing to consider other options to divert migrants abroad. In December, he said he would look at offshore processing, used by countries such as Australia, in a significant hardening of his stance on border controls.
Housing

Build 1.5 million homes


Utilise “poor quality” green belt land


Set home ownership target of 70 per cent


New mortgage guarantee scheme

Labour has pledged to build 1.5 million new homes within its first five years in power, underpinned by a “blitz of planning reform”.

The central policy is to rip up “restrictive” laws to allow construction on “poor quality” green belt land. Dubbed the “grey belt”, this would include areas such as “disused car parks” and “dreary wasteland”.

Labour would also build “the next generation of new towns” across the country, devolve power to local mayors to kick-start development, and give young buyers “first dibs” on new properties in their areas.

Sir Keir has set a home ownership target of 70 per cent and promised to get more people on the housing ladder with a new mortgage guarantee scheme.

The party has also pledged to deliver the biggest boost to affordable housing “in a generation” by strengthening existing rules to prevent developers “wriggling out of their responsibilities”.



Up next

Voters back taxing rich more to help pay for NHS, poll finds – as report shows Sunak wealthier than the King

Andy Gregory
Fri, 17 May 2024 

Nearly two thirds of voters would be more likely to back a political party committed to higher taxes on the wealthiest to fund the NHS and public services.

The data on public opinion on taxes comes as the annual Sunday Times Rich List found Britain’s 350 richest families hold a combined wealth of £795bn – with the fortune of prime minister Rishi Sunak rising.

Both major political parties clicked into general election campaign mode this week, with Sir Keir Starmer unveiling a Tony Blair-style set of election pledges and chancellor Jeremy Hunt using a speech on Friday to warn that taxes would rise under a Labour government.

But a new FocalData survey commissioned by the group Tax Justice UK suggests that there is public support for major changes to the tax system.

Chancellor Jeremy Hunt used a speech on Friday to claim that tax would rise under a Labour government (Aaron Chown/PA)

Told that a 1 to 2 per cent ‘mansion tax’ on assets worth over £10m would affect around 20,000 people and could raise up to £22bn a year, 72 per cent of respondents indicated that they would support for such a tax, with 73 per cent backing such a toll to help invest in the NHS.

And 57 per cent of the survey’s 1,011 respondents said they would support charging the same tax rate on income derived from wealth as on income earned from employment.

The findings come as the publication of the Sunday Times Rich List suggested that prime minister Rishi Sunak is now wealthier than King Charles.

The personal fortune of the prime minister and his wife, Akshata Murty, surged by more than £120m over the past year, soaring to £651m in the latest list – as the latter’s shares in her father’s IT firm Infosys grew in value by £108.8m.

This put the Sunak’s wealth above that of the King, whose fortune rose by £10m to hit £610m.

Rishi Sunak’s wealth is greater than that of King Charles (Getty Images)

Responding to the new Rich List, Downing Street insisted Mr Sunak should be judged on his actions and not his personal fortune.

The prime minister’s deputy spokesperson told reporters: “He’s been asked about this before and we’d always point people to the actions that he takes to support people ... That’s his focus and his priority and he should be judged on that.”

The 350 wealthiest individuals and families on the list together held combined wealth of £795.36 billion, according to the new data – which showed the number of British billionaires tumbled slightly from a peak of 177 in 2022 to 165 this year.

Robert Watts, who compiled the rich list, said the findings suggested that “Britain’s billionaire boom has come to an end”, adding: “Many of our home-grown entrepreneurs have seen their fortunes fall and some of the global super rich who came here are moving away.

“Thousands of British livelihoods rely on the super-rich to some extent. We’ll have to wait and see whether we have now reached peak billionaire, and what that means for our economy.”

Responding to the findings indicating support for taxing such individuals more stringently, Tax Justice UK’s head of advocacy and policy Rachael Henry said: “Taxing the wealth of the very richest is an extremely popular policy – a vote winner – and an incredibly sensible way to help fix the country.

“People in Britain are really struggling and so are public services. The NHS is wounded, getting an NHS dentist is akin to a lottery win, and GP surgeries are creaking under pressure. Politicians need to see the wood for the trees and use the tools available to them to inject life back into the country.”

Rishi Sunak and Akshata Murty rise up rich list as fortune increases by £120m

Matthew Weaver

THE GUARDIAN
Fri, 17 May 2024

Rishi Sunak and his wife, Akshata Murty. The couple’s wealth was estimated at £651m, up from £529m in 2023.Photograph: Oli Scarff/AFP/Getty Images


The personal fortune of Rishi Sunak and his wife, Akshata Murty, has increased by £120m in the run-up to the next general election, figures reveal.

The latest annual Sunday Times rich list shows the couple’s fortune grew substantially at a time when millions of Britons struggled with the cost of living. Sunak and Murty’s wealth is estimated at £651m in the latest list, up from £529m in 2023.

The figures will reinforce public perceptions of Sunak’s wealth. In previous surveys, the public have overwhelmingly used the word “rich” to describe the prime minister.


Last year’s rise in the couple’s fortune was linked to Murty’s stake in Infosys, the $70bn (£55.3bn) Indian IT firm co-founded by her billionaire father. Her shares grew in value by £108.8m to nearly £590m for the year.

The couple’s wealth remains below its level in 2022, when it was estimated at about £730m.

On Thursday Sunak, whose government is trailing in in the polls behind Labour, insisted he would remain an MP if the Conservatives lose the next election. Speaking on ITV’s Loose Women, he said: “Yes of course I’m staying, I love being an MP, I love my constituents, I love my home in North Yorkshire, it’s wonderful – and I love being able to get back there.”

His family own an apartment in Santa Monica, California. Sunak spent much of his 20s and early 30s on the US west coast and met Murty at Stanford business school. Sunak’s interest in technology and AI has led to suggestions he could get a job in Silicon Valley.

The rich list shows that King Charles’s wealth also grew in the year, from £600m to £610m.

The list records that the number of British billionaires tumbled again, continuing a theme seen in 2023. The number of billionaires reached a peak of 177 in 2022 before dropping to 171 last year and falling again to 165 this year, driven by the private wealth of some contracting amid high borrowing rates, and others leaving the country.

Related: British asylum housing tycoon breaks into Sunday Times rich list

Robert Watts, the compiler of the list, said: “This year’s Sunday Times rich list suggests Britain’s billionaire boom has come to an end. Many of our homegrown entrepreneurs have seen their fortunes fall and some of the global super-rich who came here are moving away.

“Thousands of British livelihoods rely on the super-rich to some extent. We’ll have to wait and see whether we have now reached peak billionaire, and what that means for our economy.”

The list of Britain’s 350 wealthiest individuals and families together hold combined wealth of £795.36bn, according to the data. This year’s list is once again topped by Gopi Hinduja and his family, who control the Indian conglomerate Hinduja Group. Hinduja and his family’s wealth rose to £37.2bn, from £35bn.

Meanwhile, the fortunes of a number of the UK’s highest-profile billionaires shrank over the year amid challenging periods for many businesses and investments. Jim Ratcliffe, James Dyson and Richard Branson also recorded declines for the year.

Ratcliffe, the Manchester United investor and Ineos founder, was the biggest faller on the list, with his net worth dropping by more than £6bn to £23.52bn.

Dyson was the second largest faller, dropping from £23bn to £20.8bn. Meanwhile, Branson’s wealth fell from £4.2bn to £2.4bn after a challenging year for Virgin Galactic.


Rishi Just Got Even Richer: Sunak And His Wife Climb Up List Of UK's Wealthiest People

Kate Nicholson

HUFFOOST
Fri, 17 May 2024 

Rishi Sunak and his wife Akshata Murthy are now in 245th place on The Sunday Times Rich List. via Associated Press

Rishi Sunak and Akshata Murty have raked in the money over the last year and are now in the top 250 wealthiest people in the UK.

The prime minister and his wife were already the richest people to ever live in No.10 Downing Street – and are just getting even richer.

They have climbed up The Sunday Times’ Rich List in the last year moving from 275th place to to 245th, as their net worth soared from £529m in 2023 to £651m.

For context, that means they are wealthier than King Charles, whose own fortunes crept up from £600m to a not inconsiderable £610m this year.

Most of their wealth comes from Murty’s shareholding in Infosys, an IT company co-founded by her father and based in Bangalore, India.

Shares have ballooned in value over the last 12 months, increasing by £108.8m to nearly £590m.

Murty received £13m in dividends over the last year from Infosys and is expected to receive another £10.5m this year.

This source of income was a source of great controversy at one point as it was revealed Murty had “non-dom” tax status.

That meant she claimed her permanent home was outside the UK and therefore she only had to pay tax on earnings made here – not on the Bangalore-based Infosys dividends.

She was able to avoid paying £20.6m in tax because of this status.

To make matters worse for the couple, her husband was the chancellor when this information made it to the media.

Murty later agreed to pay UK tax on her overseas income from 2021.

Murty is still the breadwinner in their household by a long shot – although it’s worth remembering the prime minister is a former hedge fund manager.

Sunak’s MP (£91,346) salary and PM salary (£80,807) account for just 6.5% of his personal income, with his hefty investment portfolio returns making up the rest.

He made £2.2m in 2022/23, more than 60 times the average British salary, according to the Rich List. It’s not known how much he made per year before entering parliament in 2015.

But, this is not the wealthiest Sunak and Murty have ever been.

Prior to Sunak’s election as Tory leader and PM in late 2022, the pair were worth an estimated £730m.

Still, this year’s increase is unlikely to do Sunak any favours in the public eye.

The news comes at a time when the Conservatives are dragging in the polls and the public already associate the prime minister solely with being “rich”.

Sunak claims that he does not mind being asked about his money, and said last year that “very few people bring it up with me”.




Loose Women's Judi Love demolishes Rishi Sunak in grilling over poverty as his wealth rises to £651m

Jake Holden
Fri, 17 May 2024

Rishi Sunak said he was 'intimidated' coming on the Loose Women panel show on ITV -Credit:ITV


Rishi Sunak underwent a severe grilling on Loose Women on Thursday (May 17) as one of the panellists pressed him on poverty at a time when his own wealth has skyrocketed. Judi Love did not hold back in asking him about poverty in the UK and when his government would help out those who were suffering.

The toasting on the all-female panel show created waves online, with Rishi himself saying he was 'intimidated' coming on the show, as social media showed its appreciation. Judi Love asked about what Mr Sunak's government will be doing for people in social housing and when.

She said: "I was in social housing, I lived in a home that had damp that was affecting my child's health. We've got NHS workers right now as we're having this interview, queuing to go to food banks."

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She added: "People are suffering right now, what are you going to do and when are you going to do it?" to which there was a round of applause. In response, Mr Sunak spoke about online safety saying that the regulator Ofcom is setting out exactly what is permissible to post online with the threat of 'enormous fines' to those who don't comply - seemingly avoiding Judi's point about social housing.

Judi Love said she had lived in social housing with damp affecting her child's health and asked Mr Sunak what he would do for people still living like that -Credit:Kate Green/BAFTA/Getty Images for BAFTA

Judi brings him back on topic quickly, enquiring about people who might not have internet access as they can't afford to pay the bills. Judi says these people are "looking to you [Sunak] for a save line. We've got people going to work who are not eating because we're in a state of poverty. What is going to take place now? What are you going to do now to address this?"

Mr Sunak, whose own personal wealth combined with his wife's this week was reported to have risen to £651m, then began to look into the past rather than the present and spoke about financial security during the pandemic with furlough and struggles with the war in Ukraine. "None of this has been easy for anybody, Judi. What we've done during that time is continually provide support. You saw that with me during the pandemic and furlough - there were millions of people who thought they were going to lose their jobs and we stepped in to provide support - we did the same with energy bills."

Kaye Adams interjected: "But there are four million children living in poverty, Prime Minister", but she was ignored by Mr Sunak. Instead, he said that the welfare system was being upgraded and that for those in work, he claimed there had been a tax cut - though for many this is not actually the case in real terms as income tax brackets remained static in the face of inflation.

Judi brought up the point that as the UK's richest-ever Prime Minister, he might be out of touch with the needs of people living in poverty. She said: "A lot of people are concerned that you [Sunak] cannot emotionally connect with them because you haven't and don't live the life they've lived.

"But there are four million children living in poverty, Prime Minister," Kaye Adams said to Rishi Sunak -Credit:Mike Marsland/WireImage/Getty Images

"How can you connect to people when they're saying to you that they're worried to send their child to the local shop because of knife crime? When they're worried to sleep in their home because of damp? When they're worried to take the day off sick even though they're suffering from mental health because they don't want to miss that pay cheque?"

Again Mr Sunak pointed back to the pandemic furlough saying: "I think I'd ask people to judge me by my actions and whenever the country's been in these moments, that's what I've done and that's how I was raised."

"How were you raised?" Judi asked defiantly, cutting him off.

'Why Do You Hate Pensioners?': Rishi Sunak Suffers Brutal Loose Women Grilling

Ned Simons
Thu, 16 May 2024 

Rishi Sunak ITV

Rishi Sunak was left flailing as he as subjected to a brutal interview on ITV’s Loose Women.

The prime minister was tackled over child poverty and asked “why do you hate pensioners”.

Sunak was also told many voters did not believe he was able to “emotionally connect” with ordinary people.

At the start of the 15-minute grilling, Sunak indicated he was expecting a rough ride.

“I have done a lot of things in this job but being here is probably on the more intimidating end,” he said.

Presenter Janet Street-Porter told him: “You were quite smiley earlier, weren’t you? Will you be smiling in five minutes.”

Street-Porter was then loudly applauded by the audience as the took Sunak to task over pensioner poverty.

“I think you’re a decent man. I do think you work hard. Hats off to you for that. I think your heart is in the right place. But why do you hate pensioners?” she said.

As the audience applauded, Street-Porter added: “That’s the only conclusion I can come to as a result of the spring Budget. So you lowered the National Insurance by 4 pence - big deal, pensioners don’t pay it.

“Then you froze the tax thresholds. So yes you gave us more pension, but that leaves a gap of only £1,000 if you get the basic, average pension, to the threshold of paying tax.

“There’s an argument that pensioners have come out worse under your supervision.”

The prime minister said he did “care deeply about pensioners” and that people who “work hard” all their life “should have the dignity and respect in retirement”.

Sunak said his decision to maintain the triple-lock on pensions had led to a £900 boost to the state pension.

The triple-lock policy means the state pension rises every April every year in line with whichever is highest out of inflation, average wage growth or 2.5%.



Judi Love, another of the interviewers, also demanded to know what the government was going to do “now” to help the country.

“People are suffering right now,” she said. “What is happening now is we are losing kids to poverty in the UK.”

Figures show that the number of children in relative poverty - after housing costs are taken into account - now stands at 4.3 million.

Love also questioned whether the PM, who is a multi-millionaire, could understand the lives of normal people.

“A lot of people are concerned you cannot emotionally connect with them because you haven’t and don’t live the life they have lived,” she said.

The Conservatives are on course to lose the upcoming general election, but Sunk told Loose Women he would not quit parliament if that happened. “Of course I’m staying, I love being an MP,” he said.