Saturday, September 30, 2023

UK
Six cabinet ministers set to lose seats in Tory blue wall rout, new poll shows

Archie Mitchell
Fri, 29 September 2023 

Six cabinet ministers are set to lose their seats at the next general election as the Conservatives come under assault in the so-called blue wall of safe Tory seats, a new poll shows.

The Labour party is expected to storm home with a majority of 90 seats, and 39 per cent of the vote, according to a poll by Stonehaven.

The ministers who would be unseated are chancellor Jeremy Hunt, party chairman Greg Hands and justice secretary Alex Chalk.

Welsh secretary David TC Davies is also expected to be unseated by Labour as well as chief whip Simon Hart and international development minister Andrew Mitchell, the poll says.

Senior Tories including former business secretary Sir Jacob Rees-Mogg are also expected to lose out at the election.

The poll, conducted by The Times, highlights the vulnerability of the Tories in their traditional southern heartlands, with the party haemorrhaging support to the Liberal Democrats under leader Sir Ed Davey.

It shows Rishi Sunak on course to win the fewest seats of any Conservative leader since William Hague in 2001, with just 196 seats. Labour is set to win 372 seats, the poll showed.

The poll comes amid fears that widespread tactical voting would see the Tories return their worst election result in more than a century.

With Mr Sunak lagging Sir Keir Starmer in the polls, fears are mounting that the Tories could be facing a 1997-like defeat.

In 1997, seven cabinet ministers including Michael Portillo and Sir Malcolm Rifkind lost their seats.

But, with key by-elections coming up,Labour and the Liberal Democrats could allow the Tories to win the Mid Bedfordshire by-election by splitting the vote, according to polling guru Professor Sir John Curtice.

Anti-Tory campaigners have called on opposition leaders Sir Keir and Sir Ed Davey to agree on a “non-aggression” pact in the blue-wall seat vacated by Nadine Dorries.


The Conservative Leadership Hopefuls On Manoeuvres At Tory Conference

Ned Simons
Updated Fri, 29 September 2023 


Rishi Sunak heads to Manchester this weekend to rally the Tory troops one last time before next year’s general election,

The prime minister can be expected to use his big speech on Wednesday lunchtime to set out his case for why the country should give the Conservatives yet another term in power.

But given the polls, many believe the election is already lost and all eyes will be on Sunak’s possible successor as party leader.

A study of the Tory conference agenda shows Kemi Badenoch - the grassroots Tory favourite - will be attending four events over the course of the four days.

The business secretary is due at a series of drinks receptions including one hosted by the Institute of Economic Affairs think-tank which influenced much of Liz Truss’ thinking.

And rather than lying low, Truss herself will be taking part in a rally during the gathering.

The former prime minister is unlikely to stand for party leader again, but is widely seen to be positioning herself to play a key role behind the scenes in the upcoming contest.

A Labour source said: “Sunak isn’t even in control of his own cabinet, let alone the country.

“He’s in the pocket of Liz Truss and her economy crashing wreckers because he is too weak stand up to them. The country is crying out for change - but all the Tories are focused on is their own internal contests.”

Penny Mordaunt could fancy another attempt at the leadership of the party.

Penny Mordaunt could fancy another attempt at the leadership of the party.

Penny Mordaunt - who came close to pushing Sunak to a vote of the Tory membership in the last contest - is set to appear at three events.

The Commons leader is also attending a book signing and will speak from the main conference stage before Sunak on the final day of the conference.

Fresh from her high-profile anti-immigration speech in the US, Suella Braverman is only down to appear at one event - hosted by the Common Sense Group of Tory MPs.

Suella Braverman is already making a pitch to the Tory right.

Suella Braverman is already making a pitch to the Tory right.

Michael Gove has a busy few days with five events in his diary. And while, like Truss, the levelling up secretary will likely not run to succeed Sunak, he will be an influential voice in any leadership race.

But Jeremy Hunt, the chancellor, is keeping a much lower profile, appearing at just one event.

Jon Ashworth MP, Labour’s shadow paymastergeneral, said the events showed “even Tory ministers know the game is up”.

“They’re pitching themselves to Tory members for the next leadership contest because they know weak Rishi Sunak hasn’t got what it takes,” he said. “While the Tories fight among themselves, Labour will give Britain its future back.”


Opinion

I’ve got news for Rishi Sunak: he no longer leads the conservative party


Jonathan Freedland
Fri, 29 September 2023 

Photograph: Owen Humphreys/PA

What would it be like if Britain had a conservative party? Odd to ask that now, on the eve of the Conservative party conference, but the coming week is only likely to make the question more pressing. Because the organisation that will gather in Manchester is, despite its name, something else entirely.

The mislabelling has been clear for some time, but fresh evidence came just this week. Start with the latest, first reported in the Guardian: a new “plan for motorists” that will limit the number of 20mph zones and favour drivers over those who use the bus.

The politics of this are not mysterious. Rishi Sunak is betting that, after an Uxbridge byelection win apparently fuelled by unhappiness among car owners at clean air measures, there’s a motorist vote to be exploited. It comes alongside Sunak’s weakening last week of the net-zero targets Britain had set itself – and Wednesday’s green light to the development of the biggest untapped oilfield in the UK, Rosebank in the North Sea, which Caroline Lucas called “the greatest act of environmental vandalism in my lifetime.”

Conviction conservatives should be as appalled by those decisions as the most committed green activist. The clue is in the name. Conservatives used to pride themselves on conserving not only long-established institutions – monarchy, church, military – but the natural world, too. The best conservative philosophers always regarded humankind as custodians of the Earth, with a responsibility – even a sacred duty – to protect it. Yet now, a single, narrow victory in Uxbridge, and the resultant hope of salvaging some votes from the expected wreckage of the next general election, is enough to prompt Conservatives to junk that obligation to the planet. So instead of encouraging more sustainable ways of getting around, they are going to push people back into polluting cars.


‘In Washington DC, Suella Braverman railed against migration and multiculturalism.’ Photograph: Stefan Rousseau/PA

And note the chosen method for this motorists’ plan, due for launch on Monday. Local councils are to be stripped of even the relatively modest power of making their own traffic arrangements. Yet localism, too, is meant to be a cherished conservative principle. There was a time when Conservatives couldn’t get through a speech without quoting, or misquoting, Edmund Burke’s affection for the “little platoons” and its imagined preference for local government over the central state. But today’s Conservatives are all too willing to trample over the local in pursuit of whatever electoral stratagem has been decided on at HQ.

Still, the most toxic departure from what should be unshakeable conservative values came in a speech delivered in Washington DC on Tuesday by Suella Braverman. The home secretary railed against migration and multiculturalism, describing the first as “an existential challenge” and the second as a failure. Naturally, liberals deplored it. But a genuine conservative would have been just as shocked.

Because Braverman had in her sights not just asylum seekers, but the European convention on human rights and the United Nations refugee convention of 1951. (She especially dislikes the way those documents protect gay people and women who fear discrimination.) These are binding agreements, treaty obligations entered into by the UK – and yet, when asked if the government would consider breaking from them if it did not get its way, Braverman refused to say that Britain would honour its commitments. Instead, she said the government would do “whatever is required”.

That violates what should be another core conservative principle: the rule of law. Talk to today’s disenchanted or former Tories and they’ll insist that even when Margaret Thatcher was at her least conservative, radically tearing up the postwar settlement, she had an unbending respect for the law.

She would hardly recognise this government, in which the likes of Braverman – like Thatcher, a lawyer herself – are ready to break commitments enshrined in law, domestic or international. Recall the unlawful prorogation of parliament or Brandon Lewis’s cheerful admission to the house that the internal market bill would “break international law in a very specific and limited way”. It’s tempting to think these were excesses of the Boris Johnson era, now passed. But Braverman’s speech – and Sunak’s indulgence of it – are proof that that sorry chapter has not ended.

Indeed, Sunak’s failure to defend the Commons, by refusing to cast a vote of censure against Johnson’s lies to the house, points to one more torching of conservative principle. Conservatives are meant to protect the sovereignty of parliament. Instead, they have made a mockery of it.


‘Essex MP Robert Halfon has suggested the Tories rebrand as the Workers party.’ Photograph: Daniel Leal-Olivas/PA

To be sure, the Conservative party has always adapted and evolved; that’s been the secret of its success. On economics, the party’s view of the state has shifted back and forth, between the shrink-the-state minimalism of a Thatcher or George Osborne and the big-spending activism of a Michael Heseltine or Johnson. But certain principles were meant to be enduring. And it’s those that have been abandoned.

What’s left is a new and different entity. It’s “become a kind of ersatz populist radical right party” is how professor Tim Bale, historian of the Conservatives, describes it. The old focus on economic management has given way to culture wars, with motorist v environmentalist the latest, supposedly anti-elite dividing line to be seized upon. Or as David Gauke, former justice secretary and editor of a new collection of essays, many by fellow Conservative exiles, put it when he and I spoke this week: for today’s Tories, “problems are there to be exploited, rather than to be solved”.

The simplest explanation for the shift is that politics in Britain – and across the democratic world – is in the midst of a realignment. If blue collar workers were once assumed to vote with the left for economic reasons, they might now just as easily align with the right for cultural ones. The hinge point in Britain was surely Brexit. For Bale, the Conservative party had long flirted with populism, but having spent much of the last decade defending itself from the party of the further right – first Ukip, then the Brexit party – something more serious has happened: “It’s become that party.”

All this creates a large void in the right half of the centre ground of British politics. That should be rich terrain for the Liberal Democrats, had they not chosen to pitch themselves as a second party of the centre-left. So Gauke and others sense an opportunity for Labour: to a disenchanted conservative, respectful of the planet and vigilant on the rule of law, Keir Starmer might just look the part.

As for the Tories themselves, honesty should surely compel them to rebrand. Not, perhaps, as the Essex MP Robert Halfon has suggested, as the Workers party – too Pyongyang – but as a People’s party, candidly admitting their own new, nationalist populist identity. Though maybe that would sound too European, too continental, to their ear.

In which case, here’s a more modest proposal: a change of logo, to an image that more accurately reflects the party they have become. The Conservatives should ditch the squiggly drawing of a tree, with its hint of reverence for nature, time and the past – and replace it with a bonfire, burning the whole lot down.

Jonathan Freedland is a Guardian columnist



UK
Judge allows private prosecution of Southern Water over pollution claims
THATCHER PRIVATIZED WATER

Steven Morris and agency
Fri, 29 September 2023 

Photograph: Dick Hawkes/Alamy

A judge has given permission for a private prosecution to go ahead against a water company accused over the pollution of one of the UK’s most cherished fishing rivers.

Southern Water will appear in court in February to face allegations linked to diesel pollution in the River Test in Hampshire.

The accusations relate to pollution allegedly entering the Test from an outfall operated by Southern Water at Nursling industrial estate near Southampton.

Penelope Gane, the head of practice at Fish Legal, which is bringing the prosecution, said on Friday: “We’re delighted that the judge has given our private prosecution against Southern Water the green light.

“Despite protests from both the Environment Agency and Southern Water, the judge could see no reason why Fish Legal should not go ahead with bringing its own criminal case against the water company.”

Gane described the Test as an “iconic chalk stream” and said the State of Nature report published this week showed action needed to be taken.

“We are determined to inject some urgency into stopping pollution on the River Test,” she said.

Fish Legal, previously known as the Anglers’ Conservation Association, accepts Southern Water was not the originator of the diesel but alleges it travelled through the company’s outfall.

During a hearing at Southampton magistrates court, Southern Water and the Environment Agency (EA) argued against the prosecution.

The EA has an official investigation ongoing and wanted the Fish Legal case to be adjourned until after that had been concluded, a position backed by the water company.

But the district judge Peter Greenfield said he could see no reason why the case should not proceed. “I think they are interesting arguments but there is a fundamental right to issue a summons,” he said.

Fish Legal said it had been forced to take the “unusual step” of bringing a private prosecution because pollution allegedly kept entering the Test.

Southern Water said: “At an administrative hearing, Fish Legal was granted permission to issue a summons against us. For legal reasons we can make no further comment.”

Previously it has said it was made aware of the release of diesel in the area of the Nursling industrial estate in June 2021. It said its teams worked quickly with other agencies to protect the watercourse, and that an EA investigation to trace the polluters had been launched. The EA is understood to be investigating another party.

The Test is famous for its trout fishing and is one of the most wildlife-rich areas of southern Britain.
UK outspends rest of Europe on housing asylum seekers by at least 40% a person

Patrick Wintour Diplomatic editor
Fri, 29 September 2023 


The UK is spending 40% a person more than any other European country on housing asylum seekers with the costs taking up nearly a third of the official aid budget, which forced a 16.4% cut in the amount of aid spent overseas in 2022.

The findings come in a report by One, the aid campaign, which argues the proportion of the aid budget being spent on housing refugees in the UK is totally out of sync with its neighbours and is making the British aid budget both unpredictable and unmanageable

The development minister, Andrew Mitchell, has publicly complained about the effect of the Home Office raid on the aid budget in the past, but the One report suggests no structural reform has so far been implemented to bring costs under control.

International aid rules allow countries to use the overseas aid budget to cover the first-year costs of refugees including food and accommodation. But each country has flexibility in deciding what costs to load on to the aid budget.

The report finds that in 2022, the UK spent £3.7bn of its aid budget on refugees in the UK, an increase on the £1.1bn spent in 2021. This rise is not solely because of an increase in the number of Ukrainian refugees, but also the result of a 400% increase in asylum applicants since December 2017 and a growing backlog of asylum claims.

More than half of asylum applicants in the UK are from countries other than Ukraine, such as Syria and Afghanistan. This suggests the damage to the aid budget is likely to be long term without structural reform to the Home Office handling of asylum claims.

The report says if asylum seekers spent 60 days or fewer in hotels, the costs could be cut by £1bn.

In December 2022, 1,237 Home Office caseworkers made an average of just four asylum decisions a month, partly because of a lack of experienced staff. Furthermore in 2021, the UK had 14.9 cases in the asylum backlog for every 10,000 of the population. This is more than France, that had 7.3 cases for every 10,000 people, despite the UK receiving far fewer asylum applications for every 10,000 people – 8.4 compared to France’s 17.9.


The report suggests the financial burden could be reduced by more than £1bn if more asylum applicants were allowed – as is the case with Ukrainian refugees – to be sponsored by private citizens rather than in hotels that on average cost £120 a night. It also says the backlog could be reduced by making clear that applicants from war-torn countries such as Syria are more likely to have their claim accepted, allowing them to work and therefore reducing the burden on the taxpayer.

It also suggests that the UK could ringfence the overseas aid budget at the current 0.5% of GDP, therefore protecting the amount of money that is being spent for its original purpose of alleviating poverty abroad. Some countries such as Sweden have set caps on the percentage of the aid budget spent on domestic refugees.

Romilly Greenhill, the director of One, said: “The Home Office are treating UK aid as a blank cheque, effectively reducing it by a third, which is in nobody’s interest. Their policies are creating a lose-lose situation, which is bad for refugees, bad for people in low- and middle-income countries, and bad for the long-term security and prosperity of the UK.”

The Foreign Office said it had provided additional funding to start to cover the costs of housing refugees.
UK
Braverman’s claim over lowering of threshold for asylum seekers debunked by lawyers


Rajeev Syal Home affairs editor
Thu, 28 September 2023 


Suella Braverman’s claim that increasing numbers of asylum seekers find refuge in the west because the threshold to qualify for asylum has been lowered does not apply in the UK under guidance in her own department, lawyers have said.

In a controversial speech on Tuesday, the home secretary said that as case law has developed since the Refugee Convention 1951, “what we have seen in practice, is an interpretive shift away from ‘persecution’, in favour of something more akin to a definition of ‘discrimination’.”

She said that “the practical consequence” of this development has been “to expand the number of those who may qualify for asylum” including gay people and women fearing discrimination.

But immigration lawyers have pointed out that Home Office guidance to caseworkers says that asylum seekers must demonstrate “whether the claimant does in fact fear persecution”.

A document entitled ‘Assessing credibility and refugee status,’ which advises caseworkers since the Nationality and Borders Act came in last year, says “the decision-maker must determine if it is more likely than not that the claimant has a characteristic which would cause them to fear persecution for one or more of the convention reasons [race, religion, nationality, membership of a particular social group, or political opinion], and that they do in fact fear persecution”.

Home Office sources said that Braverman’s speech was addressing global issues and not just the UK. But the disclosure of the guidance has prompted criticism from a leading refugee charity.

Enver Solomon, the chief executive of the Refugee Council, said : “It is alarming that speculative claims can be made by the home secretary – appearing to question the standard of her department’s asylum decision-making – without any serious evidence to support them.

“Suggesting that decision-making thresholds have been weakened is not credible. It should not be forgotten that it was only last year that new guidance was issued following the passing of the Nationality and Borders Act that actually changed the threshold to a more stringent test,” he said.

In the speech to a rightwing thinktank in Washington, which has been widely seen as an attempt to increase her political profile, Braverman said there had been a move away from “persecution” to “discrimination”.

She added: “And there has been a similar shift away from a ‘well-founded fear’ toward a ‘credible’ or ‘plausible fear’.

“The practical consequence of which has been to expand the number of those who may qualify for asylum, and to lower the threshold for doing so,” she said.

In a particularly incendiary passage, she said fearing discrimination on the basis of being gay or a woman should not, by itself, be enough to qualify for refugee status.

“Let me be clear, there are vast swathes of the world where it is extremely difficult to be gay, or to be a woman.

“But we will not be able to sustain an asylum system if in effect, simply being gay, or a woman, and fearful of discrimination in your country of origin, is sufficient to qualify for protection,” she said.

Sir Elton John and his long-term partner, David Furnish, released a statement saying they were “very concerned” by her comments and called for “more compassion, support and acceptance for those seeking a safer future”. Braverman risked “further legitimising hate and violence”, they warned.

A Home Office spokesperson said: “Tackling illegal migration is a top priority for the government, and there are an unacceptable number of people risking their lives, making dangerous crossings on small boats.

“Through the recent Illegal Migration Act and last year’s Nationality and Borders Act, the government has raised the threshold to qualify for refugee status in the UK, as part of our commitment to stop the boats.”




UK

Man in 60s arrested after Sycamore Gap tree cut down

'ROBIN HOOD' TREE ON HADRIANS WALL


Phoebe Abruzzese
Fri, 29 September 2023 

Sycamore Gap tree was cut down yesterday morning. (Image: Katie White)

Officers investigating the vandalism of an iconic Northumberland tree have this evening made a second arrest.

A full investigation was launched after the Sycamore Gap Tree was felled overnight between Wednesday and Thursday (September 27 and 28) in what police believe was a deliberate act of vandalism.

A range of enquiries have been going on ever since as officers try to ascertain the full circumstances surrounding the damage and identify anyone involved.

This evening (Friday), officers have arrested a second male – in his 60s – in connection with the incident. He remains in police custody at this time and is assisting the force with enquiries.

A 16-year-old boy was yesterday arrested on suspicion of causing criminal damage but has now been released on bail, pending further police enquiries.




Detective Chief Inspector Rebecca Fenney-Menzies, of Northumbria Police, said: “The senseless destruction of what is undoubtedly a world-renowned landmark – and a local treasure – has quite rightly resulted in an outpour shock, horror and anger throughout the North East and further afield.

“I hope this second arrest demonstrates just how seriously we’re taking this situation, and our ongoing commitment to find those responsible and bring them to justice.

“Although another arrest has been made, this investigation is still in the early stages, and we would continue to encourage any members of the public with information which may assist to get in touch.

“If you’ve seen or heard anything suspicious that may be of interest to us – I’d implore you to contact us.

Read next:

New shoots expected to grow from Sycamore Gap tree


Iconic tree at 'Sycamore Gap' 'destroyed overnight


Boy arrested after Sycamore Gap tree felled is bailed

“I’d also like to remind the public that this remains a live investigation so, for that reason, please avoid any speculation both in the community and on social media.

“Any information – no matter how small or insignificant you think it may be – could prove absolutely crucial to our enquiries.”


SEE 


Could the tree at Sycamore Gap be saved - and why is it so famous?

Sky News
Updated Fri, 29 September 2023 


The National Trust have said they are "shocked and saddened" after one of the UK's most famous trees was "deliberately felled".

The tree at Sycamore Gap was nestled in a dramatic dip in Hadrian's Wall, but is no longer standing.

In a statement, the conservation charity - which protects historic places and green spaces - asked that people "keep away" from the site while they assess the work needed to be done to make the area safe.


"We're very grateful for all the offers of support we've received from people in the North East of England and much further afield. It's clear this tree was special to many people," the trust said.

The statement follows an outpouring of anger, as the tree was a landmark for walkers and photographers alike.

A 16-year-old was detained on suspicion of causing criminal damage but later released on bail.

Can the tree regrow?


One expert told Sky News it was unlikely the tree could be saved.

John Parker, chief executive officer at The Arboricultural Association, said "there is a chance" of some shoots at the bottom, but "the tree will never be able to re-establish itself to the way it was before".

However, Jon Stokes, from The Tree Council, said it was "worth having hope".

He told Sky News: "At this time of year, trees begin to store energy in their roots for next year's growing season - and it is possible that the tree may grow some new shoots next spring."

National Trust general manager Andrew Poad told BBC Breakfast the stump was "healthy" and they might be able to coppice the tree.

This is an ancient woodland management technique where shoots grow from the base of the trunk.

It is usually used to insure a regular source of timber. Hazel is coppiced on an eight-year cycle, while chestnut has a cycle of 15-20 years.

Why is it so famous?

It is one of the most photographed trees in the world, sitting at Sycamore Gap next to Hadrian's wall.

The tree is reportedly 300 years old and was planted between 1860 and 1890, according to the National Trust.

It is also known as the 'Robin Hood Tree' after it featured in the 1991 Hollywood film Robin Hood: Prince Of Thieves, which starred Kevin Costner and Morgan Freeman.

It was voted English Tree of the Year in 2016.

"The tree has been an important and iconic feature in the landscape for nearly 200 years and means a lot to the local community and to anyone who has visited the site," Mr Poad said.

It has also been the site of proposals, and the scattering of ashes.

Brendon Hayward proposed to his wife Sinead in January 2019 beneath the tree.

"The tree was precious to me because I'd hoped we could revisit it as a family as our children got older," he told Sky News.

"I chose the place to propose because the tree would grow with time and hopefully be there in 50 or 100 years. I'm gutted."


UK
Asda issues £2.1 billion dividend as profits plunge 80% in year after Issa brothers takeover


Simon Hunt
Fri, 29 September 2023

(Alamy Stock Photo)

Asda declared a £2.1 billion dividend the year after being bought by the billionaire Issa brothers, accounts published today show, as the pair sought to juggle debts around their sprawling retail and petrol forecourt empire.

The supermarket declared the dividend to its parent company Bellis Finco, owned by the Issas and private equite firm TDR Capital, in September last year, despite a more-than 80% drop in pre-tax profits to £197.8 million in 2022.

In its accounts Asda said of the dividend: “The intercompany payable was settled by transferring intercompany receivables.

“There were no cash payments made.”

The dividend, which contributed to a reduction in Asda’s assets of around £1.8 billion, has helped the Issa brothers manage their steep debt burdens, made worse by rising central bank interest rates. The Asda deal received approval from the competition regulator in June 2021, at which point they took ownership of the supermarket from US retail giant Walmart.

The pair’s forecourts business EG Group said earlier this month it was able to cut debts by 41% through a combination of the sale of the bulk of its UK business to Asda, as well as a number of sale and leaseback deals involving property in the US. It has also extended the maturity date on a number of loans totalling $6.1 billion.

Co-founder Zuber Issa said: “The Group continued to make good progress with its deleveraging strategy...to put in place a sustainable long-term capital structure.”

In May, the brothers finalised plans to merge the UK operations of petrol forecourt business EG Group with Asda in a £2.3 billion deal.

EG said the deal with Asda was expected to reduce total net debt from $9,801m in March 2023 to $5.4 billion post-merger.

Chair Stuart Rose told reporters that the primary purpose of the deal was to expand Asda’s operations but “if as a consequence you’ve also got the opportunity to deleverage then what’s the problem with that?”

Asda’s revenues for 2022 stood at £24.5 billion, broadly flat on last year as the firm clung on to its 12% share of the UK grocery market despite fierce competition from the likes of budget supermarkets Lidl and Aldi.

Profits fell from more than £1 billion to below £200 million, which Asda said was down to a combination of “significant inflation across the cost base” as well as a £189 million investment in a new IT system to replace one introduced by its previous owner, Walmart.

Asda also said it had increased its revolving debt facility from £500 million to £657 million.

An Asda spokesperson said: “Asda Group Limited accounts for the financial year ending December 2022 show that a number of intercompany balances were transferred to the parent company of ASDA Group Limited.

“This was part of an exercise to settle intercompany balances between different group companies during the year within the Bellis Finco plc group of companies. These were all non-cash transactions and no cash dividends were paid by ASDA or Bellis Finco plc.”



UK
Coalition calls on Sunak for consultation on energy social tariff


Josie Clarke, PA Consumer Affairs Correspondent
Thu, 28 September 2023

A coalition of more than 140 organisations and MPs have called for a consultation on an energy social tariff as one third of British adults say they expect to struggle to afford their heating bills this winter.

Household energy bills are expected to be around 13% more expensive on average than they were last winter – which were the highest in living memory – despite the price cap falling from the current £2,074 to £1,923 from October 1 for the average dual fuel customer, an open letter from the coalition to Prime Minister Rishi Sunak warns.

This is still more than 50% higher than pre-crisis levels, and the Government is yet to announce any financial support along the lines of last year, when the Energy Price Guarantee limited average bills to £2,500 per year and each household received a further £400 over six months to offset the soaring costs.

These measures brought the average monthly cost of energy down to £141 but this year, unless further support is announced, average costs from October to December 2023 will rise to £160.

A survey for National Energy Action (NEA) found 34% of British adults expect to struggle to afford their heating bills this winter without government support.

In the open letter, the coalition including NEA, Age UK, Citizens Advice, Energy Action Scotland, MoneySavingExpert and Scope calls on the government to take action to support vulnerable households with their energy bills.

The letter reads: “With winter fast approaching, short-term, targeted support is needed to protect the most vulnerable households in and on the edge of fuel poverty.

“These are people whose bills have become so unaffordable that they are having to make the desperate choice nobody should have to make – between heating and eating.”

It goes on: “This is a long-term problem that requires a sustainable safety net for these people. Anything else will be a costly sticking plaster.

“There’s now a significant risk that no new protections will be in place by the time they are desperately needed.

“One of the most effective ways the government can address this enduring challenge is through the introduction of comprehensive targeted energy support, sometimes referred to as a social tariff. This would provide a deeper price protection for all households struggling with their energy bills.”

NEA figures suggest that 6.3 million households will be in fuel poverty from Sunday, an increase of more than two million since October 2021.

MoneySavingExpert.com founder Martin Lewis said he supports an energy social tariff (Stefan Rousseau/PA)

Martin Lewis, founder of MoneySavingExpert.com, said: “A typical house now pays a once unthinkable, still unaffordable, £2,000 a year for energy – worse, this winter people won’t get the £400 support they did last.

“The energy market is broken – the limited competition there is hardly impacts what people pay. Even when there was competition, it failed many elderly or vulnerable people unable to take advantage of deals.

“That’s why I’ve long supported a social tariff. It’s why I was excited when the government said it’d bring one in. Now I’m despairing at the deafening silence of inaction. This isn’t trivial, it’s a core well-being issue for millions. The government needs to pull its bloody finger out.”

MP Ben Lake, chairman of the All-Party Parliamentary Group on Fuel Poverty and Energy Efficiency, said: “The government cannot delay the introduction of a social tariff any longer. With energy debt soaring by 70% over the last three years, it’s vital that low-income and vulnerable households are protected.

“A social tariff would offer these in most need long-term security and provide much-needed relief from bills that are over 50% higher than pre-crisis.

“It’s time for the government to consult on these issues so a sustainable solution can be put in place.”

NEA chief executive Adam Scorer said: “With a third of households expecting to struggle to heat their homes this winter, the cost of energy will remain simply unaffordable for millions.

“We have to face reality. Even without a price rise, which now looks likely in January, the crisis is deepening, and it demands a proper response from government now. That means urgent targeted financial support this winter and for government to get moving on its commitments to consult on and deliver a longer-term social tariff for energy.”

Gillian Cooper, head of energy policy at Citizens Advice, said: “Without the introduction of more long-term targeted support, we’ll see the same crisis repeat every winter: struggling households unable to pay their energy bills, people unable to top up their prepayment meter, record numbers coming to us for crisis support.

“A social tariff would protect millions of people from excessive energy bills and provide crucial certainty for people who need it most in a new era of high energy costs.

“The government must deliver on its commitment to introduce better targeted support by April 2024.”

A Department for Energy Security and Net Zero spokesman said: “We recognise the cost-of-living challenges families are facing and spent £40 billion paying around half a typical household’s energy bill last winter.

“While energy prices are falling our Energy Price Guarantee remains in place to protect people until April next year.

“We are also providing additional targeted support for the most vulnerable, with three million households expected to benefit from the £150 Warm Home Discount and millions of vulnerable households will receive up to £900 in further cost of living payments.

“We continue to keep all options under review for those most in need.”

YouGov surveyed 2,014 adults living in Britain between September 15-17.
UK
86% of new students ‘say living costs made them more worried about university’



Vicky Shaw, PA Personal Finance Correspondent
Fri, 29 September 2023 


Nearly nine in 10 (86%) students starting their first year at university believe the cost-of-living crisis has made them more worried about going to university from a financial perspective, according to a survey.

Three-quarters (76%) of new university students said living costs were a key consideration when choosing the location to study, Nationwide Building Society found.

Just over seven in 10 (72%) considered living at home during the first year due to money concerns.

Over half (56%) of new students said their parents or guardians will be able to support them financially during their first year at university.


But the cost-of-living crisis is also a factor for parents, with 69% of students saying it has impacted the level of financial support that parents and guardians can provide this year.



Censuswide surveyed more than 1,000 students across the UK who are starting their first year at university for the research.

Tom Riley, director of retail products at Nationwide Building Society, which offers a FlexStudent account, said: “Heading off to university should be a joyous time for students, but our research shows they are making that journey with a significant amount of financial trepidation.

“This is especially prevalent at the moment with the cost-of-living crisis impacting how much support parents and guardians can provide.

“It can be tough for students financially as it’s often the first time they’re managing their own household budget. Outgoings can sometimes outstrip income, which is usually why many students are likely to turn to part-time work to top up their income.”


UK
Labour plots ‘devastating’ inheritance tax raid

Charlotte Gifford
Thu, 28 September 2023 

Labour is considering scrapping two exemptions – agricultural and business property relief - Dan Kitwood/Getty Images Europe

Labour is planning a “devastating” multi-billion pound inheritance tax raid which could affect farmers and family business.

The party is considering scrapping two exemptions – agricultural and business property relief – that currently allow farms and businesses to be passed down at death without their families paying the divisive 40pc charge.

It is part of a plan to scrap a number of tax reliefs in a “loophole” closing exercise which the party believes could raise as much as £4bn, according to the Times.


It is unclear whether Labour is considering scrapping the relief in its entirety or reforming the exemption so it can no longer be used by investors who own agricultural land but are not full-time farmers.

Under the current rules, agricultural property can be 100pc exempt from death duties. Business property relief also protects family firms being passed down the generations, but also exempts some Alternative Investment Market (Aim) shares from inheritance tax – providing a tax planning tool for those with spare cash to invest.


It in part explains why wealthier individuals on average pay a lower effective rate of inheritance tax on their estates compared to middle-class families who typically have the majority of their wealth tied up in family homes which are not protected by the same tax breaks.


Experts warned scrapping the reliefs in their entirety would lead to the sale or break up of family farms and businesses in order to pay inheritance tax bills.

It comes amid rumours the Conservatives are considering abolishing inheritance tax altogether, or increasing allowances, in an effort to secure victory at the next general election as struggles against Labour in the polls.

The Telegraph, alongside more than 50 Conservative MPs, is campaigning for the duty to be scrapped.

Agricultural Property Relief, which allows farmers and investors to pass on land without paying the death duties, saves around £1bn from the taxman every year, according to data from HM Revenue and Customs.

Meanwhile Business Relief lets families claim tax relief when inheriting business assets or shares in a company.

Entrepreneurs, farmers and investors ringfenced £3.2bn from death duties through the exemption in 2020-21, the latest year for which full data is available – making it one of the most valuable inheritance tax reliefs.

Sean McCann of financial advice firm NFU Mutual said: “Removing Agricultural Property Relief could be devastating for the UK’s traditional family farms. Financial returns from agriculture can be lower than many other businesses. Agricultural

Property Relief enables farmers to invest in their long-term future with the knowledge their farm is sustainable for the next generation.

“Similarly, removing Business Property Relief would be a significant disincentive to business owners, and is likely to mean that in many cases the next generation would need to borrow significant sums to pay the tax, rather than to invest in future growth and jobs.”

It is understood that Labour is also considering removing business asset disposal relief, which allows individuals who own more than 5pc of a company to pay less tax when they sell their stake.

Reports suggest Labour will not announce the tax rises until shortly before the election campaign but will use them to fund pre-election giveaways.

Rachael Griffin of investment firm Quilter said that the idea of scrapping agricultural and business property reliefs have been “tabled by a number of think tanks” in recent years, saying it was “likely the Conservatives will be mulling over the possibility too”.

Cutting Business Property Relief would impact investors with shares in unlisted companies, preventing them from claiming 100pc inheritance tax relief on their investments and leading to an exodus from Aim shares, she added.

Those in favour of removing these exemptions argue that it will impact the wealthy whose estates are more likely to contain farmland, businesses and large investments.


But the now-disbanded Office of Tax Simplification acknowledged in its 2018 report on inheritance tax that both Agricultural and Business Property Relief play an important role in ensuring farms and businesses are able to survive as they are passed down the generations.

LA REVUE GAUCHE - Left Comment: Search results for INHERITANCE 



Mikhail Bakunin Archive


ABOLISH INHERITANCE


On the Question of the Right of Inheritance



We intend that both capital and land—in a word all the raw materials of labor—should cease being transferable through the right of inheritance, becoming forever ...

UK households could pay £3,500 more in tax by next election, warns IFS

Rishi Sunak government to preside over the biggest tax rises since records began


Angela Barnes
·Reporter
Thu, 28 September 2023 

 Photo: Justin Tallis via AP.

A tax rise equivalent to around £3,500 more per household is expected by the next general election, according to the Institute for Fiscal Studies (IFS).

It said the potential tax hike would amount to around 37% of national income, up from around 33% in 2019 and noted the UK government would be raising upwards of £100bn more in tax revenues each year as a result.

The IFS also highlighted that since comparable records began in the 1950s, no parliament has presided over a bigger increase in taxes.

The group noted that only during and in the immediate aftermath of the two world wars have government revenues grown by as much as they have in the period since 2019.

However, the government could decide to announce tax cuts in the run-up to the next election, which would of course alter the IFS projections.

Ben Zaranko, senior research economist at IFS, said: ‘It is inconceivable that this parliament will turn out to be anything other than a tax-raising one – and it looks nailed on to be the biggest tax-raising parliament since at least the Second World War. This is not, for the most part, a direct consequence of the pandemic.

“Rather, it reflects decisions to increase government spending, in part driven by demographic change, pressures on the health service, and some unwinding of austerity. It is likely that this parliament will mark a decisive and permanent shift to a higher-tax economy.”

Meanwhile, Mark Franks, director of welfare at the Nuffield Foundation, said demographic change combined with slow economic growth is creating an almost inevitable increase in tax revenues as a share of gross domestic product (GDP).

“There will be strong pressure in coming parliaments to raise taxes further to meet growing demand for public services such as healthcare. Future governments must not only have a credible and robust strategy for the economy and the public finances, but should also be forthright and transparent about the difficult trade-offs they will face.’

The next UK general election is scheduled to be held no later than 28 January 2025.
What did Jeremy Hunt previously say on tax rises?

During his last budget speech in March, chancellor Jeremy Hunt said the government would put a cap on the amount workers can accumulate in pensions savings over their lifetime before having to pay extra tax.

He also said the tax-free yearly allowance for the pension pot would rise from £40,000 to £60,000 – having been frozen for nine years.

Hunt also froze fuel duty – the 5p cut was kept for another year until April 2024.

Meanwhile, it was announced that alcohol taxes would rise in line with inflation from August, with new reliefs for beer, cider and wine sold in pubs, while tax on tobacco would increase by 2% above inflation, and 6% above inflation for hand-rolling tobacco.

Sunak set to preside over biggest tax-raising parliament on record, say experts


Dominic McGrath, PA Political Staff
Thu, 28 September 2023 


The current Parliament will have presided over the biggest set of tax rises since at least the Second World War, experts have said.

By the time of the next general election, taxes will likely have risen to around 37% of national income, according to analysis by the Institute for Fiscal Studies (IFS).

The widely respected think tank said that the spike was equivalent to around £3,500 more per household, even if in reality it will not be shared equally.

Since comparable records began in the 1950s, no parliament has seen a bigger increase in taxes.

Tory MPs have long complained about the unwillingness of Rishi Sunak and Chancellor Jeremy Hunt to contemplate tax cuts, with backbench complaints about current levels of tax.

The pair have instead stressed the need for fiscal responsibility amid still-high inflation.

But Mr Hunt is likely to face pressure to announce tax cuts, if not in the upcoming autumn statement, then at least before the next nationwide poll.

Ben Zaranko, a senior research economist at the IFS, said the pandemic could not be blamed for rising tax levels and predicted that a high-tax approach was here to stay regardless of who wins the next general election.

“It is inconceivable that this Parliament will turn out to be anything other than a tax-raising one – and it looks nailed on to be the biggest tax-raising parliament since at least the Second World War,” he said.

“This is not, for the most part, a direct consequence of the pandemic. Rather, it reflects decisions to increase Government spending, in part driven by demographic change, pressures on the health service, and some unwinding of austerity.

“It is likely that this Parliament will mark a decisive and permanent shift to a higher-tax economy.”

This was echoed by Mark Franks, the director of welfare at the Nuffield Foundation.

He said: “There will be strong pressure in coming parliaments to raise taxes further to meet growing demand for public services such as healthcare.

“Future governments must not only have a credible and robust strategy for the economy and the public finances, but should also be forthright and transparent about the difficult trade-offs they will face.”

Opposition parties seized on the findings, as Labour said that the Tories had “clobbered” the public.

Shadow chief secretary to the Treasury Darren Jones said: “Successive Tory government have overseen 13 years of low growth and stagnant wages. Their response in the face of this bankrupt legacy is always to load their failure onto working people. And what are we getting back? Crumbling public services.

“Brits are working hard but getting clobbered with 25 Tory tax rises and a continuing Conservative premium on their household budgets.”

Liberal Democrat Treasury spokesperson Sarah Olney said: “This Conservative Government crashed the economy and is making the public pay the price. This is the same party which promised not to raise people’s taxes and is now taxing families through the nose.

“Despite this, ministers have given tax cuts to the big banks, failed to close loopholes in the windfall tax on oil and gas giants and wasted eye watering sums on dodgy PPE contracts.”

A Treasury spokesperson said: “Despite needing to take the difficult decisions to restore public finances in the face of the dual shocks of the pandemic and Putin’s illegal invasion of Ukraine, the latest data shows our tax burden will remain lower than any major European economy.

“Driving down inflation is the most effective tax cut we can deliver right now, which is why we are sticking to our plan to halve it, rather than making it worse by borrowing money to fund tax cuts.

“We have also taken 3 million people out of paying tax altogether since 2010 through raising personal thresholds, and the Chancellor has said he wants to lower the tax burden further – but has been clear that sound money must come first.”