
Ethics reform stalled by Mayor Brandon Johnson's ally after inspector general recommendation
Mayor Brandon Johnson Thursday ripped a proposal Chicago's top independent watchdog recommended as a way to prevent him and future mayors from impeding investigations by her office.
The mayor's criticism of the ordinance came a day after his close ally, Ald. Byron Sigcho-Lopez, stalled it when it was introduced to the City Council.
The legislation matched recommendations Inspector General Deborah Witzburg made in a recent letter to aldermen as she criticized the mayor-controlled Law Department for hindering investigations that 'may result in embarrassment or political consequences to City leaders.'
Witzburg said the Law Department has selectively slow-walked compliance with inspector general subpoenas. She asked aldermen to change city law to clearly eliminate the department's discretion over subpoena enforcement.
But when Ald. Matt Martin, the City Council's Ethics Committee chair, introduced legislation to do that on Wednesday, Sigcho-Lopez sent it to the Rules Committee — which is where mayors and their allies often ship legislation they oppose to languish.
Johnson's administration marked its clear opposition to Martin's proposal Thursday, saying in a statement, 'this ordinance is not an ethics reform ordinance.'
'The proposed ordinance is legally deficient on its face and requires further scrutiny in the Rules Committee where it can be properly vetted and analyzed,' Johnson press secretary Cassio Mendoza wrote. The package appears to conflict with state law, city code and Illinois Supreme Court precedent, he added.
Witzburg called the claim that the ordinance needed to be delayed 'disingenuous' Thursday. Her office has long sought the change, even pushing for it when Lori Lightfoot was mayor and with Johnson's transition team, she told the Tribune.
'And the place to have the discussion on the merits of a proposed ordinance is in a hearing on that ordinance in the Ethics Committee,' Witzburg added. 'I would welcome a conversation on the merits of this ordinance.'
Sigcho-Lopez, 25th, told the Tribune Wednesday that he 'strongly [believes] in Ethics Reform,' but said he stalled the measure because he thought it needed more participation from others. The Southwest Side alderman said he understood that there had been no conversation about the ordinance between Martin and Johnson's team.
'Sometimes people are taking measures without even talking to the administration, talking to the inspector general. I do think those meetings need to happen before we introduce items just with the whole purpose of make it into the news or attack, you know, politically,' Sigcho-Lopez said.
Martin said he spoke with members of the Law Department and Johnson's office about the ordinance before Wednesday, but has not discussed it with Sigcho-Lopez.
'It's disappointing, but not new when an alderman uses parliamentary tactics to delay ethics reform. I remain undeterred,' Martin said.
Witzburg's letter detailing the Law Department's alleged impediment of investigations, first reported by the policy team at the Better Government Association, said the department also withholds records by asserting undue attorney-client privilege and demands top mayoral lawyers be allowed to attend confidential investigative interviews.
The ordinance from Martin, 47th, matched the letter by seeking to block city attorneys from representing people in investigative meetings and making the duty for city workers to cooperate with the inspector general 'supersede any claim of privilege.'
Responding to the letter last week, city Law Department spokesperson Kristen Cabanban said that 'for the past three decades, previous City inspector generals have properly accepted that the legal rights of City employees and the legal interests of the City rightfully justify our practices.'
Johnson's responses to ethics reform are starting to look 'like outright hostility,' BGA Policy Vice President Byran Zarou wrote in a statement Thursday. Zarou called on the City Council to pass Witzburg's proposal.
'Administrations tell us who they are by what they prioritize and what they obstruct,' Zarou wrote. 'Mayor Johnson and his allies have consistently and repeatedly obstructed even the smallest ethics reform measures.'
Another Ethics Committee reform championed by Martin was sidelined in June. Martin sought to codify an executive order implemented by former Mayor Rahm Emanuel in 2011 that restricted lobbyist donations to Chicago mayoral candidates. Several donations to Johnson appeared to violate the order, but the city's Board of Ethics determined Emanuel's rule was not enforceable.
Ald. Chris Taliaferro, 29th, and Ald. Nick Sposato, 38th, used the 'defer and publish' maneuver to forestall what would have been a final floor vote. But the ordinance finally passed unanimously in September after Johnson dropped his opposition.
A late January report from Witzburg blasted the city's mayors for failing to properly log gifts and Johnson for blocking public access to the room where gifts are stored. Johnson posted an updated log online last week and released a 20-second video of the 'gift room' that he argued amounts to public access. At the time, Witzburg said the planned quarterly videos are 'not a substitute for public access to public property.'
Witzburg said Thursday the 'independence and effectiveness' of inspectors general are under attack across the country. She plans to continue to push for the change despite the delay, she said.
'The independence of oversight must be protected. That is a basic foundation of good government,' Witzburg said. 'City Hall does not get to choose who can be investigated and who is protected from accountability.'
The City Council's Rules Committee is likely to meet soon in an attempt to rescue a similarly-stalled top Johnson priority: a plan to help spur sustainable, affordable housing with a unique $135 million revolving loan fund. Aldermen are able to take an item outside of the committee if it has not been considered for two months.
Also this week, aldermen approved the first phase of development for the 15-year, $7 billion '1901 Project' plan to redevelop the area around the United Center. The vote marks a critical step toward construction for the project that could eventually bring nearly 10,000 new homes, a 6,000-seat music hall, a boutique hotel and around 10 acres of green space to the area around the arena now mostly made up of parking lots.

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Jan. 6 Officers File Suit Over GOP Refusal To Install Honorary Plaque
WASHINGTON — Two police officers filed a federal lawsuit on Thursday over the refusal by House Speaker Mike Johnson (R-La.) to put up a plaque honoring officers' sacrifice on Jan. 6, 2021. Congress passed a law in 2022 setting a one-year deadline to install an 'honorific plaque' naming officers who fought President Donald Trump's mob rioters. It was to be placed on the Capitol's west front where some of the worst violence of the day occurred. Johnson's office said last year they were working on it, but the plaque is still missing. According to the lawsuit, filed by former U.S. Capitol Police Officer Harry Dunn and D.C. Metropolitan Police Officer Daniel Hodges, there is 'no indication' that Congress intends to hang the plaque even as other memorials have been installed inside the Capitol for slain officers involved in other tragedies. The plaque commemorating Jan. 6 officers has been made, but Dunn and Hodges say Architect of the Capitol Thomas Austin has not received instruction from Johnson to install it. A spokesman for the speaker did not immediately respond to a request for comment. Dunn and Hodges highlighted that House Republicans have wasted little time introducing bills to honor Trump in the meantime, including legislation to make his birthday a federal holiday or rename Dulles International Airport after him. (Lawmakers have also proposed carving his face into Mount Rushmore, putting Trump's face on the $100 bill and even creating a new $250 bill with his likeness.) Trump and his allies have attempted a dogged 'rewriting of history,' attorney Brendan Ballou wrote in the civil claim, and this has extended well beyond the halls of Congress. 'Elon Musk, the world's richest man, now claims that January 6 was 'in no way a violent insurrection.' Joe Rogan, the country's most popular podcaster, claims that 'the intelligence agencies were involved in provoking people into the Capitol Building. That's a fact.' Greg Gutfeld, the host of the most popular show on the most popular cable channel (Fox) said that January 6 was not a 'big deal.' And Dan Bongino, once one of America's most popular online commentators, claimed that the FBI was involved in placing pipe bombs around Washington, DC that day,' Ballou wrote. 'By refusing to follow the law and honor officers as it is required to do, Congress encourages this rewriting of history. It suggests that the officers are not worthy of being recognized, because Congress refuses to recognize them.' The law requiring Congress to install the plaque was buried in a thousand-page government funding bill, so it wasn't something that received much attention or debate when it passed the House in March 2022. Back then, Republicans had not yet fully abandoned their recognition of what happened on Jan. 6. But the text of the statute is clear: Not later than 1 year after the date of the enactment of this Act, the Architect of the Capitol shall obtain an honorific plaque listing the names of all of the officers of the United States Capitol Police, the Metropolitan Police Department of the District of Columbia, and other Federal, State, and local law enforcement agencies and protective entities who responded to the violence that occurred at the United States Capitol on January 6, 2021, and shall place the plaque at a permanent location on the western front of the United States Capitol. During their annual 'police week' commemorations last month, Johnson and other Republicans held a vigil and repeatedly praised law enforcement officers, including the Capitol Police officers who responded to the 2017 congressional baseball shooting, but couldn't spare a word for the officers who fought Trump's mob. This isn't the first time that items recognizing police for defending the Capitol on Jan. 6 have been missing in action. In February, commemorative bronze duplicates of the Congressional Gold Medal that Jan. 6 police officers received suddenly went missing from the U.S. Mint's website. The coin, which had been available for purchase for more than a year up to that point, vanished from the site without notice. It was reinstated a little more than a week later. Rep. Jamie Raskin (D-Md.) said Thursday that he would be putting up a poster depicting the plaque design outside his office, and that Democrats would be urging all House members to do the same until Johnson complies with the law. 'Put the plaque up or change the law,' Dunn said in a livestream from Raskin's office. 'It's unfortunate that we had to have a lawsuit to compel Congress to follow their own law, but here we are.' Top Jan. 6 Prosecutor Quits DOJ, Slams Trump's Pardons As Green Light For Violence Trump Honors Police – Four Months After Freeing Hundreds Of Felons Who Assaulted Them Ashli Babbitt Family To Receive $5M Settlement From Trump DOJ: Report
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Reeves accused of ‘making up numbers' in spending review
Credit: Institute for Fiscal Studies Rachel Reeves has been accused of 'making up numbers' in her spending review after she failed to give clear guidance on how departments would make savings. Paul Johnson, director of the IFS, said his think tank 'can't find any particular area of spending the Government has decided it wants to withdraw from', barring overseas aid, under the plans unveiled by the Chancellor on Wednesday. Ms Reeves has said repeatedly that the Treasury had examined every department's spending ambitions 'line by line' in a detailed process known as a zero-based review. However, Mr Johnson said virtually every department faced 'exactly the same cut in its administration budgets' of 10pc over the next three years and then another 5pc in 2029-30. During the IFS analysis of Ms Reeves's spending review, he said this was 'irrespective of [any] planned spending increase' for each department. Visibly shrugging in the online event, Mr Johnson said: 'That is not the result of a serious department by department analysis. I hesitate to accuse the Treasury of making up numbers, but…' Mr Johnson warned that the Chancellor was only keeping within her borrowing rules by a 'gnat's whisker', adding that 'any move in the wrong direction will almost certainly spark more tax rises'. The criticism is a further blow to the Chancellor after official figures today showed Britain's economy shrank at the start of the second quarter. UK gross domestic product (GDP) contracted by 0.3pc during 'awful April' in the biggest monthly drop since October 2023, according to the Office for National Statistics (ONS). This was worse than analysts' fears that the economy would shrink by 0.1pc and follows a 0.7pc expansion during the first three months of the year. At the start of April, businesses grappled with Ms Reeves's hikes to National Insurance contributions and an increase in the minimum wage. The data also covers the month when Donald Trump launched his so-called 'liberation day' tariff onslaught, and showed that UK exports to the US slumped by a record £2bn in April. Suren Thiru, economics director at ICAEW, said: 'These figures suggest that the UK's economic fortunes took a notable nosedive in 'Awful April' as skyrocketing bill and tax rises, coupled with the chaos over US tariffs, suffocated overall output. 'April's decline is probably the start of a more sobering period for the UK economy with the damage from spiralling costs and intensifying global uncertainty set to slow growth sharply this quarter, despite elevated government spending.' Thanks for joining us today. That's all for this blog but do join us on our main business pages for the latest analysis and reports on the economy. Most British people think they have personally been hit by tax rises in recent years and would favour the burden being cut, according to a poll from the Adam Smith Institute. It found that just 5pc of Britons think their taxes are well spent. Some 28pc said they would 'strongly support' a cut in tax rates, even if this meant a reduction in public spending. Overall, 57pc support cutting taxes. Only 7pc would 'strongly oppose' tax cuts. James Lawson, chairman of the Adam Smith Institute, said: 'Brits are being overtaxed and underserved. Our polling shows that they are fed up with paying sky-high taxes to a series of governments which they don't believe have delivered good value for money. 'The fact that only 5pc of Brits believe that their taxes are being properly spent hammers home the scale of public anger and distrust.' IFS director Paul Johnson said Rachel Reeves's spending plans were leading to a 'big increase' in the size of the British state. The FTSE 100 and the pound moved higher after the latest US wholesale inflation figures came in as expected despite Donald Trump's tariff tirade. In some welcome short term relief for the Chancellor, the UK's blue-chip stock index was up 0.2pc after the US producer price index — which measures inflation before it hits consumers — rose 2.6pc in May, according to the Labor Department. Separate data showed US filings for jobless benefits were unchanged last week. Sterling rose 0.5pc against the dollar to more than $1.36 as traders bet that the US Federal Reserve would cut interest rates twice this year following the data. UK government borrowing costs also fell at a faster pace than European peers, with bond yields dropping nearly seven-basis points to 4.48pc. Gilt yields – the return the government promises to pay buyers of its debt – rose faster than comparable markets on Wednesday after Rachel Reeves announced her spending plans. One piece of good news for Rachel Reeves has been the easing of government borrowing costs. The yield on 10-year UK gilts – a benchmark for the cost of servicing the national debt – has fallen nearly six basis points 4.49pc on bond markets. There has been a decline in yields – the return governments promise to buyers of its debt – across the board in a flight to safety by investors. Traders have been spooked by Donald Trump saying he would send letters to countries outlining the terms of trade deals in weeks, prompting a shift away from riskier stocks and into the safer returns of bonds. UK borrowing costs had risen slightly on Wednesday in the wake of the spending review. The pound fell against the euro in the wake of the spending review and official figures showing a contraction in the UK economy in April. Sterling fell 0.6pc to a six week low against the euro at €1.173. Nick Andrews, an analyst at HSBC, said: 'Thursday's data shows the UK economy continues to face challenges.' By contrast, terling was up 0.2pc against the dollar as the US currency weakened against global major currencies over tariff fears. Donald Trump sparked uncertainty as he said he would send out letters in one to two weeks outlining the terms of trade deals to dozens of US trading partners, which they could embrace or reject. The dollar was last down 0.7pc against a basket of currencies, having hit its lowest since March 2022. It was down 1pc versus the euro, which hit a three-year high as investors turned to the single currency as a safe haven in the turmoil. Britain is becoming a 'national health state' under Rachel Reeves, with treatment poised to account for half of all public services spending by the end of the decade. Analysis by the Resolution Foundation said the Chancellor was presiding over a 'major reshaping of the state' that will pave the way for more tax rises after she boosted NHS budgets in the spending review. The Left-leaning think tank said the health service was on course to account for almost £1 in every £2 of all day-to-day Whitehall spending by the next election. This is up from a third in 2010 and a quarter in 1999. Kemi Badenoch warned the UK economy faced a 'significant risk of a death spiral' because of Labour's spending plans. The Tory leader told the Peel Hunt FTSE250+ conference that 'bond vigilantes' were 'circling' Britain because they do not believe current levels of government debt are sustainable. She said: 'Government debt is unsustainable. The bond markets have already noticed. The bond vigilantes are circling. 'If Labour think they can pile on more borrowing, more spending and more tax without consequences, they are deluded. 'There is a significant risk of a death spiral and no one can say we weren't warned.' IFS director Paul Johnson said his think tank had been 'baffled' by the Chancellor's spending review. He said Rachel Reeves will 'have all her fingers and all her toes crossed' that OBR borrowing and growth forecasts are not downgraded in the autumn, which would 'almost certainly spark more tax rises'. He said: 'It did not appear to be a serious effort to provide any useful information to anybody. I hope you find what we have to say somewhat more enlightening. 'To be fair to HM Treasury though the spending review document was a model of clarity. Thank you. 'Second, nobody should be in any doubt that the Chancellor has had some incredibly tough decisions to take and balancing acts to perform. 'The fiscal constraints are all too real and we can't have everything we might want. One can quibble over precise allocations but what we saw was a perfectly reasonable set of prioritisations. 'The real test will be in how well the money is spent, and especially how effectively the capital spending is spent and managed. 'That's the tough day-to-day business of government and, somewhat out of the spotlight of these big set piece events. It's on that more than anything that the government will be judged. 'Third, this was not a 'fiscal event' in the sense that total spending levels had already been announced. Ms Reeves is now going to have all her fingers and all her toes crossed, hoping that the OBR will not be downgrading their forecasts in the autumn. 'With spending plans set, and 'ironclad' fiscal rules being met by gnat's whisker, any move in the wrong direction will almost certainly spark more tax rises.' Tesco boss Ken Murphy has warned the Chancellor not to increase taxes for the high street, amid mounting fears that she will be forced to launch a further raid on employers this autumn. The chief of Britain's biggest supermarket said retailers were already wrangling with the 'substantial additional costs' that they were hit with in the last Budget, including the Chancellor's £25bn National Insurance raid. Mr Murphy said: 'We would strongly urge and hope that the Government would not be looking to place additional burden on the retail industry at this stage.' It comes after economists warned that tax rises were now 'very likely' after Rachel Reeves announced billions of pounds of new spending on public services and infrastructure projects. Business leaders are concerned that it could mean a further tax raid on companies, despite signs higher employer costs are already weighing on economic growth. On Thursday, official figures revealed the economy shrank earlier this year, falling by 0.3pc during April as businesses were struck by a surge in worker costs. From April, the Chancellor increased the rate of employer National Insurance contributions (NICs), and lowered the threshold at which companies start paying it. Tesco said this step alone would add an extra £250m to its costs each year. It has also been struck by an increase in the minimum wage and a net zero grocery tax. On Thursday, Tesco said the tax increases were already feeding through to higher prices in stores. Mr Murphy said: 'If you ladder up all of these costs, they are having a substantial impact on the retail industry.' He said food inflation was being fuelled by 'all the new taxation and regulatory costs on the industry', pointing to recent rises in meat and poultry prices. Rachel Reeves has been accused of 'making up numbers' in her spending review after she failed to give clear guidance on how departments would make Johnson, director of the IFS, said his think tank 'can't find any particular area of spending the Government has decided it wants to withdraw from – other, perhaps, than overseas aid' under the plans unveiled by the Chancellor on the IFS analysis of Ms Reeves's spending review, he said virtually every department faced 'exactly the same cut in its administration budgets' of 10pc over the next three years and then another 5pc in said this was 'irrespective of [any] planned spending increase' for each during the online event, Mr Johnson said: 'That is not the result of a serious department by department analysis. I hesitate to accuse the Treasury of making up numbers, but…' Tax rises are on the way as Rachel Reeves faces another black hole in her finances, according to a former top official who has warned 'the writing seems to be on the wall' for the Chancellor's plans. Andy King, a former boss at the Office for Budget Responsibility, said the watchdog is likely to slash its growth forecasts, wiping out much of Ms Reeves's £9.9bn financial buffer, forcing her to ramp up taxes yet again. 'We are not well placed at all. Attention will inevitably turn to how a new fiscal hole is going to be filled come the autumn,' Mr King said at an event hosted by the Resolution Foundation. 'The immigration policy looks net negative for growth, employment rights need to be scored, the employer NICs and national living wage rises look to have done much more damage to employment than was allowed for. 'The writing seems to be on the wall for another fiscal hole in the autumn.' The former member of the Budget Responsibility Committee, and now a partner at Flint Global, said the OBR was 'strikingly optimistic' in its forecasts last month, raising the odds of a serious downgrade next time it crunches the numbers. 'Now that the spending plans have been inked in, it leaves fewer levers for restoring fiscal headroom. So it looks like a rock and a hard place for the autumn. Something important may have to give if there is a material fiscal hole to fill,' he said. 'That means either loosening the fiscal targets, which look very risky given the way the bond market is viewing the UK relative to its peers. Or it means breaking manifesto tax commitments which looks, as Sir Humphrey might say, brave, bordering on courageous.' Rachel Reeves is likely to spend more than what she has laid out in the spending review due to pressure from government departments, economists have warned. The Chancellor has created 'particular risk' to the public finances by front loading her spending plans, according to the IFS. Paul Johnson, director of the think tank, said that spending review plans are nearly always reopened 'and almost always in an upwards direction', meaning that government outlays would likely rise. He said that health and defence would likely push for more funding despite their generous increase in budgets, while education's budget 'looks tight'. He said: 'Day-to-day spending rose 2.6pc last year and is due to increase by 2.5pc this year then by 1.8pc in 2026-27 and by just 1pc in each of 2027-28 and 2028-29. 'If that last year's spending plans aren't topped up at some point I'll be very surprised indeed.' Nearly half of businesses in London expect prices to increase this year amid the challenging economic outlook, a survey showed. About 45pc of 500 companies questioned by London Chamber of Commerce after Rachel Reeves unveiled her spending review said they were bracing for a jump in costs. Some 42pc said they think the Government does not understand business. The chamber's chief executive Karim Fatehi said: 'London businesses want to grow, create jobs, and deliver the economic growth the UK so desperately needs, but many are concerned that the government doesn't understand them and the challenges they face. 'In the last year alone, businesses have weathered a cost-of-living crisis, increased taxes and international trade disputes. London businesses are resilient, but they urge the Chancellor to use the Spending Review and the upcoming Autumn Budget as an opportunity to listen to the London business community and give them the confidence they need to invest and grow.' Many bosses in the capital were also concerned that the Chancellor was pursuing economic growth across the country and the expense of London, after Ms Reeves announced funding for a series of infrastructure projects. Mr Fatehi added that capital spending projects 'must not be at the expense of London'. Britain's economy has been put on track for a 'dismal second quarter', economists have warned. Julian Jessop of the Institute of Economic Affairs think tank said the UK's recovery has 'clearly stalled' after GDP contracted by 0.3pc in April. He admitted the downturn in Britain's economy was partly due to factories bringing forward orders earlier this year in an effort to beat tariffs imposed by Donald Trump. However, he warned: 'There was a large drag too from the increases in staffing costs and in many household bills, which hit business and consumer confidence hard. 'Some surveys suggest May might be less bad, especially with fears of a global trade war now receding. However, job losses appear to be accelerating, wage growth is slowing, and inflation has jumped, which will all continue to weigh on spending.' He added: 'The recovery has clearly stalled. Growth in the second quarter as a whole is now likely to be close to zero, and government policies are at least partly to blame.' UK stocks fell as investors became 'wary' about the outlook for Britain's shrinking economy. The domestically-focused FTSE 250 sank 0.6pc while the blue-chip FTSE 100 was down 0.1pc after UK GDP contracted by 0.3pc in April. Travel and leisure businesses were the worst hit by Britain's rockier economic prospects, falling 2.1pc across the two indexes. Sanjay Raja, chief UK economist at Deutsche Bank, said: 'While the UK economy has been fairly resilient this year, we expect GDP growth to track below potential in 2025, before gradually returning to trend next year.' Neil Wilson, an analyst at Saxo UK, added: 'The UK economy can expand at a much more rapid rate but it depends on the right fiscal and monetary policy mix, and I am not sure we are seeing all the ducks in a row just yet. Tax hikes are in the post and these are the big worry for investments.' However, he said investors 'need to be wary about the headwinds facing the UK economy' there remain some positives. 'Firstly, the FTSE 100 is not heavily correlated to the UK economy, albeit the FTSE 250 is a lot more closely related. 'Any slowdown, as shown by the very weak jobs report on Tuesday, can be met with an easier policy path from the Bank of England, which would tend to nudge sterling lower. 'With a strong international earnings presence in the FTSE 100, this tends to be a positive.' The value of the pound has fallen after official figures showed Britain's economy shrank by more than expected in April. Sterling was down 0.1pc against the dollar to $1.353 and fell 0.3pc against the euro to €1.176 as UK GDP contracted by 0.3pc at the start of the second quarter. Adam Deasy, economist at PwC, said: 'Many of the spending priorities announced by Chancellor Rachel Reeves yesterday will take time to bear 'growth-shaped' fruit. 'The question is whether the UK economy will pick up steam in the meantime. 'Today's data, a weakening labour market, and worsening business sentiment point to a slowing growth outlook in the near-term and strengthen the case for further rate cuts from the Bank of England.' Hailey Low, associate economist at Niesr said the figures indicated that the Chancellor's 'increases in employers' National Insurance contributions and wider cost pressures have weighed on activity'. Traders are increasing bets that the Bank of England will cut interest rates in August after Britain's economy shrank by more than expected in April. Money markets indicate that policymakers will cut borrowing costs two more times by the end of the year after GDP contracted by 0.3pc during the month. Traders are betting there is a 85pc chance of a rate cut in August, up from 81pc on Wednesday. Paul Dales, chief UK economist at Capital Economics, said the GDP figures were 'one more piece of news pointing to another cut in August'. He added: 'The economy will be held back by subdued overseas demand and domestic businesses cutting back on spending to compensate for the rise in costs driven by April's increase in taxes. 'We're still expecting GDP growth of just 1pc for the year as a whole, which would be no better than last year and is a little weaker than the consensus.' Kemi Badenoch accused the Government of waging 'war on the private sector' after the spending review, but declined to say what she would do differently. The Conservative leader told BBC Radio 4's Today programme: 'What we should be talking about is reform of public services. They're just giving more and more money. 'This is a war on the private sector, where private businesses are having to cut their coat according to their cloth. They're having to downsize. They're having to let go of staff, but no reforms are being asked for any parts of the public sector. 'Of course, we want to fund public services, but we need to make sure that we're doing things better.' But asked repeatedly to set out what the Government should stop doing, or whether she would reverse last year's rise in National Insurance, Mrs Badenoch declined to answer. She said: 'There's no election today. What I'm not doing is setting out a manifesto for four years' time.' Britain's goods exports to the US fell by £2bn in April compared to the previous month, which was the largest drop since official records began in 1997. The value of goods exports to the United States during the month fell to its lowest level since February 2022 at the start of the Ukraine war. Imports of goods from the US, including precious metals, decreased by £400m in April. Overall goods exports fell by £2.7bn compared to March as sales into the EU also dropped, according to the Office for National Statistics. Rob Wood, chief UK economist at Pantheon Macroeconomics, said: Exports should begin to stabilise in May now that the front-running has unwound and after President Trump began walking back some of his more ruinous tariffs. 'That said, the UK-US trade deal 'agreed' in May is yet to fully come into force so there could be further export weakness still ahead.' Stock markets fell slightly in London after data showed a contraction in the British economy. The FTSE 100 edged lower to 8,862.31 while the mid-cap FTSE 250 fell 0.1pc to 21,361.25. Stocks were protected from heavier falls as investors continued to feel relief after Wednesday's US inflation figures, which came in as expected at 2.4pc in May. Britain's manufacturing sector contracted by 0.9pc in April and faces a period of weakness as Donald Trump's tariffs hit demand, economists have warned. Yael Selfin, chief economist at KPMG UK, said Britain's economy 'lost steam in April amidst global trade disruptions'. He said: 'Today's weak GDP data partially reflects the impact of trade-induced uncertainty that weighed on the economy in April. 'The effect was particularly pronounced in the manufacturing sector, which saw output contract by 0.9pc. 'Manufacturing activity is likely to remain weak in the near term against a backdrop of sluggish global demand. 'Weaker activity was also driven by property transactions brought forward ahead of the increase in stamp duty in April, as well as weaker wholesale trade. 'While the recently announced trade deals offer businesses a degree of policy certainty, tariffs on UK exports to the US are higher than their pre-April levels. 'This is expected to act as a headwind for UK trade in the medium term. Moreover, global trade tensions continue to pose a key risk. A disappointing outcome in the US-EU trade negotiations would likely have adverse spillover effects on the UK economy.' The shadow chancellor accused Rachel Reeves of 'economic vandalism' after Britain's economy shrank in April. Mel Stride said: 'Before the election Labour promised 'growth, growth, growth' but today's fall in GDP lays bare the disappointing consequences of Rachel Reeves' economic vandalism. 'Yesterday, the Chancellor should have taken corrective action to fix the problems she has caused. But instead her spending review has all but confirmed what many feared: more taxes are coming. 'Under Labour, we have seen taxes hiked, inflation almost double, unemployment rise, and growth fall. With more taxes coming, things will only get worse and hard-working people will pay the price.' Rachel Reeves blamed Donald Trump for the UK economy shrinking in April. The Chancellor said the US president's tariff war had created 'huge uncertainty' and had hit UK exports and production. She resisted the suggestion that her tax increases, which came into effect in April, had also contributed to the economy shrinking for her reaction, Ms Reeves told Sky News: 'Disappointing but also very volatile and GDP on a monthly basis does move around quite a lot but we also know that April was a challenging month. 'There was huge uncertainty about tariffs and one of the things, if you dig into those GDP numbers today, is exports weakening and also production weakening because of the uncertainty in the world around tariffs. 'So disappointing but also perhaps not entirely unexpected given the uncertainty that is out there in the world at the moment.' Asked if it was fair to say that her increase to employer National Insurance contributions had contributed, Ms Reeves said: 'Everyone knew that those tax changes were coming in April. But the crucial thing is I didn't increase the taxes that ordinary working people pay.' Michael Saunders, a former member of the Bank of England's monetary policy committee and senior adviser at Oxford Economics, says the economy is likely to stay 'sluggish' for the rest of the year. He told BBC Radio 4's Today programme: 'The level of interest rates is still quite high, monetary policy is still quite tight, global trade uncertainty is high and that's hitting exports from many countries around the world and the Government is tightening fiscal policy. 'Public spending is going up but taxes are going up even more, so the net effect is to reduce demand, and you can see that reflected – that vacancies are falling, job growth is slowing and unemployment is rising. 'The Chancellor said the UK was the fastest growing economy in the quarter among the G7 but I don't think that's going to be the case for the year as a whole.' Britain's economy faces a 'more sobering period', economists have warned, as official figures showed the dominant services sector was severely hit after Donald Trump unleashed his tariff onslaught. Monthly services output – the most significant sector of the UK economy – fell by 0.4pc during the month after growth of 0.4pc in March. It was the first decrease in services output since October last year and was the largest contributor to the 0.3pc fall in GDP. Britain's economy had started the year so well with expansion of 0.7pc in the first quarter, including 0.2pc growth in March. ICAEW economics director Suren Thiru said: 'These figures suggest that the UK's economic fortunes took a notable nosedive in 'Awful April' as skyrocketing bill and tax rises, coupled with the chaos over US tariffs, suffocated overall output. 'April's decline is probably the start of a more sobering period for the UK economy with the damage from spiralling costs and intensifying global uncertainty set to slow growth sharply this quarter, despite elevated government spending. 'Weaker growth is a headache for the Chancellor as it makes generating the revenue government needs to support its sizable spending plans more difficult, increasing the chances of further tax rises in the Autumn Budget. 'Though the door is probably closed on an interest rate cut next week, these downbeat figures increase the likelihood of a policy loosening in August, despite lingering concerns over high inflation.' Rachel Reeves said the contraction in the economy was 'clearly disappointing'. The Chancellor said: 'Our number one mission is delivering growth to put more money in people's pockets through our Plan for Change, and while these numbers are clearly disappointing, I'm determined to deliver on that mission. 'In yesterday's spending review we set out how we'll deliver jobs and growth – whether that's improving city region transport, a record investment in affordable homes or funding Sizewell C nuclear power station. 'We're investing in Britain's renewal to make working people better off.' Britain's economy shrank by more than expected in April after the largest monthly fall in exports to the US on record, according to official figures. ONS director of economic statistics Liz McKeown said: 'After increasing for each of the four preceding months, April saw the largest monthly fall on record in goods exports to the United States with decreases seen across most types of goods, following the recent introduction of tariffs.' Britain's economy shrank at the start of the second quarter in a blow for the Chancellor after her spending review. UK gross domestic product (GDP) contracted by 0.3pc during the month, according to the Office for National Statistics. This was worse than analysts' fears that the economy would shrink by 0.1pc and follows a 0.7pc expansion during the first three months of the year. The data covers the month when Donald Trump launched his so-called 'liberation day' tariff onslaught which threatened to upend global trade. It comes a day after economists warned that Britain faces tax rises in the autumn after Rachel Reeves unveiled her spending review. The Chancellor has made growing the economy one of her key missions as she battles to shore up the public finances. Thanks for joining me. Britain's economy shrank by more than feared in April in a blow for Rachel Reeves as she seeks growth to power her spending plans. Here is what you need to know. 'Perverse' benefits system is unsustainable, warns Liz Kendall | Plans to cut Pip and health element of universal credit face mounting criticism from Labour MPs US-China trade deal is done, says Trump | Agreement includes access to rare earth materials, but must be approved by Xi Jinping Poundland rescue deal in doubt as councils seek unpaid business rates | Millions of pounds' worth of overdue taxes risk deterring potential buyers of discount retailer Jeremy Warner: Businesses up and down the land will be laughing in the Chancellor's face | Rachel Reeves plans £50bn more on day-to-day spending than Tory predecessors Sam Ashworth-Hayes: Mass migration isn't Britain's lifeblood. It's an economic disaster | Immigration narrative is being used to justify the errors of generations of politicians Asian shares were trading mixed early Thursday after Wall Street's rally stalled as investors appeared not to react much to the results of the latest round of China-US trade talks. Japan's Nikkei 225 lost 0.5pc to 38,213.20. Hong Kong's Hang Seng sank 0.5pc to 24,234.80, while the Shanghai Composite index edged 0.1pc lower to 3,404.66. In South Korea, the Kospi gained 0.8pc to 2,929.94, while Australia's S&P/ASX 200 edged 0.1pc higher to 8,604.50. Taiwan's Taiex lost 0.8pc. On Wall Street, the Dow Jones Industrial Average finished a day of choppy trading little changed, at 42,865.77, while the S&P 500 fell 0.3pc, ending at 6,022.24, and the Nasdaq lost 0.5pc, closing at 19,615.88. In the bond market, the yield on benchmark 10-year US Treasury notes fell to 4.427pc from 4.471pc late on Tuesday. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data


Politico
3 hours ago
- Politico
Pritzker, Johnson and the Trump factor
Presented by Good Thursday morning, Illinois. And 'good vibrations' to all who need it. TOP TALKER IN THE HOT SEAT: Gov. JB Pritzker is set to appear this morning before a U.S. House committee hearing to defend Illinois' sanctuary status on immigrants. It starts at 9 a.m. CT here. He'll be seated alongside Govs. Tim Walz of Minnesota and Kathy Hochul of New York, fellow Democrats who like Pritzker have called for empathy in managing the migrant crisis while also championing the rule of law. Watch for Pritzker to spell out in detail how Illinois came to be a focus of the immigration debate — from receiving migrants from border states to helping new arrivals become productive members of the community. 'We knew we could not simply ignore the suffering right in front of us,' Pritzker said, according to an advance copy of opening remarks provided to Playbook. His full text is here. Pritzker will defend the TRUST Act, which prevents Illinois law enforcement from working with U.S. Immigration and Customs Enforcement agents. 'We want our law enforcement offices focusing on their actual jobs while empowering all members of the public — regardless of immigration status — to feel comfortable calling law enforcement to seek help,' according to his remarks. And he'll reiterate to Republican Chair James Comer's Oversight Committee that undocumented, violent criminals 'have no place on our streets; if they are undocumented, we want them out of Illinois and out of our country.' Pritzker's prepared comments also reveal his frustration with Congress under the Biden administration for not doing more to manage immigration at the border. Watch for outspoken Republicans on the committee, including Georgia Congresswoman Marjorie Taylor Greene, to needle the governors. And Illinois Congressman Darin LaHood, who poked at Mayor Brandon Johnson during a similar hearing, will be on hand, too. Among the friendly (Democratic) faces asking questions will be Congressman Raja Krishnamoorthi, who sits on the committee, and Congressman Danny Davis, a guest. THE TIMING: The hearing comes as immigration enforcement takes center stage in cities across the country. Thousands of protesters took to the streets over the past two days in Chicago to protest aggressive tactics imposed by the Trump administration in California, including enlisting the National Guard and Marines to corral protesters. The mayor's office said Wednesday that it's bracing for ICE to barrel into Chicago. 'We received word that the federal agents have been informed that they have 48 hours to stand by and be ready to deploy,' said Deputy Mayor Cristina Pacione-Zayas at a press briefing with Johnson on Wednesday. 'There will be tactical teams. There will be many tanks. There will be other tools that they use in which they plan to do raids as we saw in Los Angeles.' RELATED Chicago is ready for large anti-ICE protests, Johnson Says, blasting Trump as a 'tyrant,' by WTTW's Heather Cherone Mayor Johnson urges Chicagoans to 'rise up' in defiance of Trump immigration raids, by the Sun-Times' Fran Spielman Mayor's administration says no obligation to hand city ID records to ICE, by the Tribune's Alice Yin Democratic governors seek to roll back state-funded health care for undocumented immigrants, by NBC News' Adam Edelman Coming today: Secretary of State Alexi Giannoulias will announce new measures to prevent states from accessing Illinois automatic license plate reader data to track down immigrants. THE BUZZ EXCLUSIVE: The Revs. Jesse Jackson and Al Sharpton have written a letter to President Donald Trump asking that the Justice Department pull back from its investigation into Mayor Brandon Johnson's hiring practices in City Hall. The Civil Rights leaders note that Chicago has a diverse population and that Johnson's administration 'reflects that diversity.' Johnson came under scrutiny after he spoke to a church group emphasizing how many Black people he has on staff. The Justice Department claims there is 'reasonable cause' to believe Johnson 'made hiring decisions solely on the basis of race,' in potential violation of the Civil Rights Act of 1964, according to a letter to City Hall. City Hall is in the process of submitting a written response to Justice about the probe, 'so they understand our position,' Chicago Corporation Counsel Mary Richardson-Lowry said during a press briefing Wednesday with the mayor. 'They, in turn, are going to be submitting some questions to us to help to narrow the scope of their request.' Johnson called the ongoing probe 'a slap in the face to the Civil Rights era movement' and said his staff is composed of 'incredibly talented, capable, diverse individuals that are helping to transform our city.' In their letter, Jackson and Sharpton pointed out the mayor's talking points are just what mayors do when addressing different groups. Johnson will 'boast about the women he's appointed when he speaks to a woman's group. He'll tout his Irish connections when he talks to the Irish. Oddly, this seems to offend the Department of Justice and its Civil Rights Division,' they wrote. Their request: 'Please end this inquiry and let's focus on bringing America together, not driving us apart.' Their full letter is here. POLITICO's Cheyanne Daniels contributed. If you are Darin LaHood, Playbook would like to hear from you! Email: skapos@ WHERE'S JB In Washington, D.C., at 9 a.m. CT to testify before the House Oversight Committee WHERE's BRANDON At Wintrust Arena at 10:45 a.m. for a Choose Chicago news conference. Where's Toni At the Cook County Building at 9 a.m. for the Board of Commissioners meeting — At the Cook County Building at 3 p.m. to mark Pride Month Have a tip, suggestion, birthday, new job or a (gasp!) complaint? Email skapos@ IN THE SPOTLIGHT NEW THIS MORNING: ComEd is making the unusual move of providing relief to some Illinois residents and businesses that could be especially hard-hit by the expected increase in energy costs this summer. A one-time grant: 'Our parent company, Exelon, decided we should do a one-time grant for our customers who may have difficulty paying their bills,' ComEd CEO Gil Quiniones said in an interview. 'This is in response to the financial pressures on many families and nonprofits in our community.' A helping hand: Quiniones says a little over $10 million will be used to help low- to moderate-income customers and nonprofits that will see their bills go up. ComEd is specifically hoping to help those with past-due balances. The price hikes are a result of an annual estimation by the PJM regional transmission organization that manages the power grid for Illinois and 12 other states. PJM has estimated that energy needs will go up at a time when power plants (the coal-fired ones) are closing. Add to that the increase in data centers and what might happen in a changing political climate and higher prices are inevitable, according to ComEd. 'Every year they do this auction where they get all the demand forecasts from utilities like us, and they aggregate that and then determine the year ahead,' Quiniones explained, adding the extra cost will be passed on to power customers 'without any profit' to ComEd. 'We are a delivery utility. We don't operate the power plants.' Starting in July, low-income ComEd customers and charitable organizations will be able to apply for a portion of the $10 million in bill relief and energy efficiency by applying through one of ComEd's community partners: Neighborhood Housing Services or The Salvation Army. Here's how to apply. BUSINESS OF POLITICS — In IL-09: Community organizer Miracle Jenkins has launched his campaign for the seat now held by retiring Congresswoman Jan Schakowsky. Jenkins, a Democrat who worked for Schakowsky and calls her a mentor, says he's running 'to widen the circle and make sure more voices get heard in the halls of power.' — Endorsement: State Sen. Robert Peters has been endorsed by Ald. Jeanette Taylor in his bid for the IL-02 congressional seat now held by Robin Kelly, who's running for U.S. Senate. — Joe Walsh, now a Democrat, considers challenging GOP Sen. Lindsey Graham, by POLITICO's Adam Wren THE STATEWIDES — Several household items containing forever chemicals will be banned in Illinois, by the Springfield State Journal-Register's Claire Grant — Graduate test prep program to lose state funding, by the Tribune's Addison Wright — Insurance plans could soon be required to cover hippotherapy in Illinois, by Capitol News' Jade Aubrey ILLINOIS' POPE — Pope Leo wears Chicago White Sox hat at the Vatican, via ABC 7 CHICAGO — Mayor's education aide and former principal chosen as interim CPS CEO: 'Macquline King, the senior director of educational policy in the mayor's office, will take over as interim CEO as the school district tries to close a $529 million deficit,' by WBEZ's Sarah Karp. — Appointed Chicago school board member Frank Niles Thomas steps down, by Chalkbeat's Reema Amin — City Council members could soon have blanket power to ban Airbnb from their wards, by Crain's Justin Laurence — Observation deck operator in former Hancock Center plans major expansion and a new 'immersive experience,' by the Tribune's Brian J. Rogal COOK COUNTY AND COLLARS — Troubled county tech firm used insider lobbyist who was later convicted in ComEd corruption scheme, by Injustice Watch's David Jackson and the Tribune's A.D. Quig — Plaintiff in FOIA lawsuit won't accept former Dolton Mayor Tiffany Henyard's affidavit, by the Daily Southtown's Olivia Stevens — Arlington Heights mayor pushes for EV charger restrictions in basement garages, by the Daily Herald's Christopher Placek Reader Digest We asked what you do for civic engagement besides voting. Denise Barreto: 'Witness slips are one of my favorite ways to make my voice heard — for and against legislation.' Christopher Deutsch: 'Four co-founders and I launched a 501c4 nonprofit, Rise Chicago, to help recruit and elect better local leaders.' Mike Gascoigne: 'I write and call my legislators.' Ashvin Lad: 'Learn from and be a part of the civil conversations sponsored by the Chicago Area Public Affairs Group and City Club of Chicago.' Jane Ruby: 'Joined the League of Women Voters.' Timothy Thomas: 'I am the secretary of my Block Club and active in the Chicago Alternative Policing Strategy in the Auburn Gresham 6th District.' Judith Weinstein: 'My husband and I support Monticello/The Thomas Jefferson Foundation, which is becoming a force for building civic friendships and promoting the message that we are all founders.' NEXT QUESTION: Day games or night games? KEEPING UP WITH THE DELEGATION — Congressman Raja Krishnamoorthi is leading a letter to Health and Human Services Secretary Robert F. Kennedy Jr. demanding information on the decision to cancel a contract with producers of an avian influenza (avian flu) vaccine. — Duckworth, Durbin help introduce bicameral bill to repeal the gun industry's legal liability shield, via RiverBender THE NATIONAL TAKE — 'America's reputation is on the line': Republican senators chide Hegseth over Ukraine, by POLITICO's Connor O'Brien and Joe Gould — 'Marbles in the rear ends of cats': WGN fact checks Hegseth's claim, by Ben Bradley — Hogg declines to run again for DNC vice chair after new election is called, by POLITICO's Elena Schneider — Education Department struck deal with Labor Department to offload career programs, by POLITICO's Juan Perez Jr., Rebecca Carballo and Nick Niedzwiadek — Trump's EPA delivers new blow to Biden climate agenda, by POLITICO's Alex Guillén and Jean Chemnick TRANSITIONS — Allison Jarus has joined Arnold & Porter as a policy adviser. Jarus was chief of staff to congressman Mike Quigley, where she oversaw a team of 18 staffers across Washington and Chicago. TRIVIA WEDNESDAY's ANSWER: Congrats to Elizabeth Godvik for correctly answering that Robert Prevost and Barack Obama, who would become Pope Leo XIV and U.S. president, respectively, attended Game 1 of the 2005 World Series between the Chicago White Sox and the Houston Astros. TODAY's QUESTION: Who was the philanthropist who first funded the Museum of Science and Industry but did not want it named for him? Email skapos@ HAPPY BIRTHDAY Ald. Emma Mitts, former state Rep. John D'Amico, Chicago Board of Elections Commissioner William Kresse, retired Judge Nick Ford, Jasper Advisors co-CEO Julie Andreeff Jensen, retired government affairs exec Jill Zwick, former Women's Business Development Center CEO Emilia DiMenco, Trala Inc.'s Mary Urbina-McCarthy, ABC Communications' Candice Kuhnen and NBC News Senior VP and former POLITICO Editor Carrie Budoff Brown -30-