Rayner dismisses suggestions she could take Starmer's place
She dismissed suggestions of replacing Sir Keir Starmer, despite a recent rebellion over his welfare reforms and growing criticism of his leadership.
Ms Rayner defended Sir Keir, asserting he is doing the job for Britain by repairing international relationships and securing trade deals.
Her comments follow polling expert Professor Sir John Curtice 's assessment that Sir Keir's first year in office has been the worst start for any newly elected prime minister.
Ms Rayner expressed passion for issues like workers' rights and council housing, emphasising her commitment to serving the country in her current role.
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Daily Mail
16 minutes ago
- Daily Mail
Gilts stage cautious rebound as Starmer backs Reeves to stay as Chancellor
UK government bond yields fell today after the Prime Minister ruled out sacking Chancellor Rachel Reeves, easing market concerns that sparked heavy losses yesterday. Keir Starmer said Reeves will remain in the job 'for years to come' after rumours of her imminent departure sparked a gilt market rout that saw long-term Government borrowing costs skyrocket on Wednesday. Ten and 30-year gilt yields – the interest on government debt that moves inversely to the price of the bond – were down 8 and 10 basis points, respectively by midday. However, the bounce falls short of losses suffered in the previous session, demonstrating lingering market uncertainty on the outlook for UK fiscal policy. Investors' expectations for UK inflation are well ahead of G7 peers as bumper public sector pay increases, a national insurance hike for employers and a higher living wage drive price rises in the wider economy. The consumer price index registered at 3.4 per cent in the 12 months to May, according to the Office for National Statistics, and inflation is not forecast to return to the Bank of England's 2 per cent target for some time. There are also concerns about Britain's ability to manage its finances as the Government's difficulty passing cuts to public spending clashes with its reticence to raise taxes amid weak economic growth. In response, investors sell UK government bonds and thereby drive up the cost of long-term borrowing. Ten-year gilt yields are 35bps to 4.5 per cent over the last 12 months, while 30-year yields are up 65bps to 5.3 per cent. Chief investment officer at Axa IM Chris Iggo said: 'Markets have taken the view that the government is politically unable to follow through on promises i.e. reduce welfare spending, ramp up defence spending and not increase income taxes. 'Despite a huge majority in parliament, the Labour government appears to have lost any room for manoeuvre when it comes to fiscal policy. 'Markets sense that abandoning the fiscal rules – allowing the deficit to increase relative to the previous baseline – might become politically tempting. 'Therefore, that means an increased fiscal risk premium in UK government bonds, which recalls the dramatic period in September 2022, when markets responded to then the Prime Minister Liz Truss's attempt to cut taxes to boost economic growth.'
Sky News
31 minutes ago
- Sky News
Wes Streeting defends chancellor and PM ahead of 'seismic' 10-year plan for NHS
The health secretary has offered a strong defence of the prime minister and chancellor - ahead of Sir Keir Starmer setting out his 10-year vision for the NHS. PM 'might have to go in months' - politics latest Wes Streeting dismissed suggestions the prime minister could be forced out in months following the toughest week of his premiership yet, and described Rachel Reeves as "resilient" and would "bounce back" following her tearful appearance in the Commons on Wednesday. Overnight, two senior sources - a member of the government and a prominent politician - told Sky News' deputy political editor Sam Coates that they had "put Sir Keir Starmer on notice". The health secretary, who was speaking as Sir Keir prepares to set out his 10-year vision for the NHS, said the prime minister had been "consistently underestimated". Asked by on Sky News Breakfast whether Sir Keir was "safe", Mr Streeting said: "Of course. "Keir Starmer has been consistently underestimated. I wonder when people will learn. 2:36 "They said he couldn't win the Labour leadership, but he did. They said he couldn't change the Labour Party, but he did. "They said he couldn't take the Labour Party from its worst defeat since the 1930s to election victory last year. And he did and now the cynics say he can't change the country, but he will." As for Ms Reeves - whose tearful appearance in the Commons spooked markets after the prime minister initially failed to back her, Mr Streeting said the chancellor was a "tough character" who was "resilient and she will bounce back". The health secretary declined to expand on why Ms Reeves was in the chamber at all yesterday, repeating that it was a personal matter. "Rachel Reeves as chancellor is here to stay," he continued. "We need her to get the economy from strength to strength, to make sure that family finances are in better health than we were when we came into office." Speculation about the futures of the two most senior members of the government threaten to overshadow the announcement today, which the government says is "one of the most seismic shifts" in the health service's history. 3:05 Sir Keir will pledge three main facets of the plan: moving care into the community, digitising the NHS, and a focus on sickness prevention. The prime minister will announce neighbourhood health services will be rolled out across England to improve access to the NHS and to shift care out of overstrained hospitals. Sir Keir has already promised thousands more GPs will be trained, and to end the 8am "scramble" for an appointment. He also previously said his government will bring the NHS into the digital age, with "groundbreaking" new tools to support GPs rolled out over the next two years - including AI to take notes, draft letters and enter data. And he will promise new contracts that will encourage and allow GP practices to cover a wider geographical area, so small practices will get more support. Unite, one of the UK's largest healthcare unions, welcomed the plan cautiously but said staff need to be the focus to ensure people are better looked after. 'Reform or die' Sir Keir said: "The NHS should be there for everyone, whenever they need it. "But we inherited a health system in crisis, addicted to a sticking plaster approach, and unable to face up to the challenges we face now, let alone in the future. "That ends now. Because it's reform or die." 2:04 Neighbourhood health services The newly announced neighbourhood health services will provide "pioneering teams" in local communities, so patients can more conveniently access a full range of healthcare services close to home. Local areas will be encouraged to trial innovative schemes like community outreach door-to-door to detect early signs of illness and reduce pressure on GPs and A&E. The aim is to eventually have new health centres open 12 hours a day, six days a week to offer GP services as well as diagnostics, post-operative care and rehab. They will also offer services like debt advice, employment support, stop smoking help or weight management. More NHS dentists Dentists will also be part of the plan, with dental care professionals part of the neighbourhood teams. Dental "therapists" will carry out check-ups, treatments and referrals, while dental nurses could give education and advice to parents or work with schools and community groups. Newly qualified dentists will be required to practice in the NHS for a minimum period, which they have said will be three years.
The Independent
33 minutes ago
- The Independent
Which tax rises could Rachel Reeves introduce to pay for the £5bn welfare U-turn?
This week's embarrassing climbdown on welfare saw the government's benefits reforms gutted almost entirely, while savings from the bill were slashed from £5bn to nothing. In the wake of the U-turn, there are now growing questions over how the government will raise the money to fill the black hole in the public finances. Ministers have already squeezed significant savings out of their departments in cuts that were unveiled at last month's spending review, meaning there is now a mounting expectation that the chancellor will be forced to raise taxes instead. But Labour's manifesto pledge not to raise taxes on 'working people' leaves the chancellor with a limited number of workable options. A few possibilities were floated by deputy prime minister Angela Rayner in a leaked memo to Rachel Reeves ahead of the spring statement, which saw her urge the chancellor to raise taxes - suggestions which were ignored. But perhaps this week's welfare climbdown will leave the chancellor with no option but to look again at Rayner's suggestions. Here, The Independent takes a look at a number of tax rises that the government could rely on to raise funds and balance the books. Tax threshold freezes The Treasury's most likely move would be to extend the freeze on income tax thresholds. This means that as wages rise with inflation, over the years workers are dragged into higher tax bands and end up paying more. A freeze on the threshold at which the higher 45 per cent tax rate is paid was one of the options suggested by Ms Rayner in her leaked memo. But there is growing speculation the government could extend the freeze across all tax brackets. It's a stealth tax, the impacts of which are not felt immediately, meaning it is normally better received among the general public compared with a direct hit to businesses or pay slips. But, if the freeze were extended to the end of the parliament, it could also bring in billions for the Treasury as earnings rise. The freeze, which is already planned to last until 2028, is expected to drag around two million workers into higher tax bands. Wealth tax There have been calls from Labour MPs on the left of the party to introduce a wealth tax, calls which have only grown in the wake of Tuesday's welfare climbdown. Rachael Maskell, the architect of the rebellion which forced the government into shelving key pillars of the bill, demanded the government increase taxes on the very richest to pay for the £5bn climbdown. Polling conducted by YouGov on behalf of Oxfam on the eve of the spring statement found more than three-quarters of people (77 per cent) would rather the government increase taxes on the very richest to improve public finances than see cuts to public spending. However, such a tax - which could look like a 2 per cent tax on net assets worth more than £10m - is thought to be very hard to implement, and could also lead to some of Britain's highest earners leaving the country. Pensions Ms Rayner also called for the lifetime pensions allowance to be reinstated. The allowance, which puts a cap on how much savers can put into their pension pot before a higher rate of tax is applied, was axed by the Tories. Labour had initially planned to reinstate the cap, but the plans were abandoned ahead of the election. However, amid the controversy over cutting winter fuel payments – and then later reversing the decision – the government may be hesitant to introduce any other policies which would upset pensioners. Corporation tax The chancellor could also look at increasing corporation tax for banks – one of the suggestions included in the deputy prime minister's memo. Politically, its fairly easy to tax banks as there is limited direct impact on voters. But it's important to note that banks in the UK are already highly taxed. They pay normal corporation tax of 25 per cent, plus a bank surcharge of 3 per cent. On top of this, they pay a bank levy of 0.1 per cent of their balance sheets. Dividends The deputy prime minister also proposed raising tax rates on dividends - a portion of a company's earnings received by a shareholder - for higher earners. Currently, tax is not paid on dividend income that falls within your income tax Personal Allowance. There is also a £500 dividend allowance each year, meaning individuals only pay tax on any dividend income above this. Removing it altogether would be worth £325 million a year, HMRC data indicates. However, there are concerns that raising dividend tax rates could discourage people from investing in companies – which is likely to have a net negative impact on the economy. Ms Rayner also suggested ending inheritance tax relief on shares listed on the smaller Aim stock market. The Aim stock market is a sub-market of the London Stock Exchange. From April 2026, qualifying Aim shares held at the time of death will be eligible for 50 per cent relief from inheritance tax - but Ms Rayner has suggested ending this entirely. While these changes might make businesses uncomfortable, they're actually unlikely to raise much money for the Treasury – meaning it's a less likely option for the chancellor.
