
Winter fuel U-turn and a rift at the heart of government
After sustained speculation and a local elections drubbing, Keir Starmer announced today at PMQs that the government will be softening their policy on winter fuel. Whilst it won't come into effect for some time, they have agreed to ensure that 'more pensioners are eligible for winter fuel payment.'
This comes hours after a memo was mysteriously leaked to the Telegraph. It contains an extensive list of recommendations from Deputy Prime Minister Angela Rayner to the Treasury, including a set of eight tax rises such as reinstating the pensions lifetime allowance and altering dividend taxes. This amounts to a direct challenge to Rachel Reeves's fiscal approach and preference for spending cuts.
The bigger story, of course, is what this says about feelings within Labour – it's clearly not a happy family. Sources suggest that Angela Rayner is uneasy with the direction of travel in the Treasury and speaks for a silent majority in the Labour party who are fed up with defending controversial measures such as winter fuel. So who leaked this memo? Could Rayner be leading a mutiny? And will the U-turn on winter fuel placate the rebels?
Oscar Edmondson speaks to James Heale and Isabel Hardman.
Produced by Oscar Edmondson.

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Telegraph
40 minutes ago
- Telegraph
Boris Johnson: ‘Feeble' defence budget will leave us at Russia's mercy
Boris Johnson has said Labour's 'feeble' spending on defence leaves Britain at the mercy of Russia. The former prime minister told The Telegraph that Rachel Reeves's claims that defence spending would rise to 2.6 per cent of GDP by 2027 had left him 'very puzzled' and that the Chancellor's reluctance to pump more money into the sector suggested she did not view it as a priority. On Wednesday, Ms Reeves said defence spending would rise to 2.6 per cent by April 2027, but did not confirm whether it would climb higher, as demanded by Nato. 'This is feeble,' Mr Johnson said. 'They [Labour] have wasted a big opportunity. 'My view is that this Government is completely failing to show the leadership that is needed to defend Britain and defend Europe. 'Labour are congenitally hostile to defence spending. Their grass roots are still basically Corbynistas who think Russia is a great thing. Those views are still highly influential in Labour.' At the start of this year, Sir Keir Starmer pledged to send British troops into Ukraine in the event that a ceasefire between the two warring nations was negotiated by Donald Trump. A ' coalition of the willing ' was also established between European nations, with the UK said to be leading the group that would establish a road to peace in Ukraine. However, talk on both of these subjects appears to have gone quiet. Mr Johnson, who was prime minister when Russia launched its full-scale invasion of Ukraine in Feb 2022, and has remained close with Volodymyr Zelensky, the Ukrainian president, since leaving government, said: 'What's happened to the boots on the ground initiative? 'As with Ukraine, the way to peace is through strength. If you talk to people in Ukraine or the US, they will say leadership on protecting Ukraine is now being offered by Germany and France.' Mr Johnson also said the Chancellor's increase in the welfare budget was 'out of control' and that such sums should be invested in defence instead. At a summit in the Hague later this month, which Mr Trump will attend, all Nato members will be expected to agree to committing 5 per cent of GDP on defence. Mark Rutte, the Nato secretary-general, has called for all alliance members to get to 3.5 per cent by 2032 and 5 per cent by an unspecified date. Earlier this week, Mr Rutte told The Telegraph that if Nato nations failed to achieve this percentage, then they needed ' to start learning to speak Russian '. Ms Reeves told the Commons: 'A new era in the threats we face demands a new era for defence and security. That's why we took the decision to prioritise our defence spending by reducing overseas development aid so that defence spending will now rise to 2.6 per cent of GDP by April 2027, including the contribution of our intelligence agencies. 'That uplift provides funding for the Defence Secretary, with a £11 billion increase in defence spending and a £600 milllion uplift for our security and intelligence agencies.' However, Tory sources claimed that by adding the single intelligence agencies budget in with the defence budget, it was eating into what money was left for the Armed Forces and did not account for 2.5 per cent of GDP on defence. 'Labour have taken money from a different department and pretended it was going to the Armed Forces,' one said. However, a Labour source accused the Tories of 'getting their numbers wrong' and insisted Wednesday's announcement was 'not a cut to defence' based on the Nato qualifying spend.


Belfast Telegraph
an hour ago
- Belfast Telegraph
NI to receive £1.2bn more after spending review – but economist warns that alone won't fix challenges
Announcing the outcome of Labour's spending review, the Chancellor Rachel Reeves declared: 'The devolved administrations will receive their largest real terms settlements since devolution began in 1998.' Budgets across Westminster departments will grow by 2.3% per year in real terms until 2028-29. Northern Ireland will see an increase in the amount of money it receives through the Barnett formula, the mechanism the Treasury uses to calculate how much money it gives to Stormont. Speaking about the average increase of £1.2bn, the Treasury said: 'The Northern Ireland Executive will receive an average extra £1.2 billion through the Barnett formula, 24% more to spend per person than the comparable UK Government spending in the rest of the UK, reflecting Northern Ireland's unique circumstances." Westminster has committed to maintaining some already-announced spending over the course of the review, for example allocating: '£137 million over three years in continued support for tackling paramilitarism and organised crime, and the Police Service of Northern Ireland's Additional Security Fund." Some of the Chancellor's headline nation-wide policies will have a direct impact on Northern Ireland, including changes to asylum policy. The government intends to end the use of hotels to provide accommodation to asylum seekers within the life of the current parliament. The Home Office currently contracts private firm Mears Group to source accommodation – including in hotels – for people seeking asylum in GB and NI. As of last September, there were over 300 such people in Northern Ireland living in hotels, in conditions which have been criticised by refugee rights' groups. News Catch Up - Thursday 12th June The Chancellor said she will speed up the asylum process and cut the backlog in the system which is costing the government billions of pounds. Other parts of wider UK policies will impact Northern Ireland, including the government's plans to increase defence spending annually by between 3.6-3.8%. The precise location of defence spending increases will be announced later in the year in the defence investment plan, but it will include Northern Ireland, where the government spent £240m in 2023-24 on an industry that employs 600 people. Speaking to the Belfast Telegraph, Chief Secretary to the Treasury Darren Jones said that 'both' new and existing defence facilities here would receive investment 'because there is just so much extra money going into defence spending.' Mr Jones added that Northern Ireland would also see investment in the advanced manufacturing sector, including aerospace businesses. Northern Ireland will also have access to an additional £350m from the British Business Bank, the governmental body that offers financing and investment to private firms across the UK. It was through the bank that the Covid-relief loans were provided to companies. It has supported 6,000 businesses in NI since 2014 and its NI investments include Reform RX, a Pilates reformer company which was recently sold on to a major US firm. Northern Ireland will also be part of other pieces of investment, including the government's plan to aggressively grow AI capabilities in NI. An AI unit will be set up within the Executive, part of what Deputy First Minister Emma Little-Pengelly called 'a huge agenda.' 'We are determined to try and ensure Northern Ireland can do transformation in efficiency and productivity improvements through all of the tools that are there. That includes the advances in AI,' she said. 'This has been underway for a number of months, as referenced in our programme for government. We believe that digitisation and AI agenda can really improve public services and the way that we deliver those public services.' Responding to the spending review, Andrew Webb, the chief economist of Grant Thornton NI, said reform was necessary to ensure increased public spending was effective. 'Our public services face accumulated pressure - financial, structural, and societal. 'The Spending Review acknowledges this by calling for reform, but when we look around and see infrastructure deficits in areas such as waste water that are in the billions of pounds, we know we have a massive task on our hands. 'Our challenges aren't just money-related. New money helps, but money alone won't fix planning bottlenecks, staff shortages, or fragmented governance. "Northern Ireland needs a structured, long-range recovery plan with investment in the right places, powers aligned with purpose, and a relentless focus on outcomes. 'Otherwise, we risk repeating the cycle of pouring more money in and improving little.' Meanwhile, Stormont Finance Minister John O'Dowd said that agreements secured with the Treasury by his department will 'deliver an additional £600m of funding provided for vital public services here.' Mr O'Dowd was referring to the Treasury's willingness to exclude over £300m of agriculture funding from funding calculations, saving the Executive £600m over the period of the spending review. An independent review of Northern Ireland's Level of Need by Professor Gerald Holtham was also published yesterday, recommending an increase in the Barnett adjustment factor.


BBC News
an hour ago
- BBC News
Decision to scrap rough sleeping law 'long-overdue'
The government's "long-overdue" decision to scrap a law criminalising rough sleeping has been welcomed by charities and formerly homeless people in the Prime Minister Angela Rayner called the Vagrancy Act "cruel and outdated" and said Labour would target organised begging by gangs instead.A Southampton charity welcomed the change and said the focus should be on "prevention, housing-led solutions, and genuine support".Hampshire Police and Crime Commissioner Donna Jones said funding should be made available to tackle underlying mental health issues. Figures from Southampton City Council show the average number of people rough sleeping on a single night in Southampton between 2010 and 2022 was in Autumn 2023, the government released figures that showed 46 people in Oxford were sleeping rough on a single the same year, for 17 out of 43 police forces in England and Wales, the Crown Prosecution Service (CPS) did not prosecute at all using the Vagrancy Act. Vince, from Southampton, is now securely housed, but was formerly said he was not aware at the time that he could be prosecuted for rough sleeping."Even if I had known, I was most worried about being robbed or assaulted, and staying warm and dry," he said."I think [the announcement] is a step in the right direction, but it doesn't address the lack of available housing, or how dangerous it can be to sleep rough."Layla Moran, Lib Dem MP for Oxford West and Abingdon, who campaigned for the act to be repealed, said she felt "pure joy" at the news."I can finally say that after seven years of dogged campaigning, this cruel and archaic law will be consigned to the history books," she said."It is not and should never have been acceptable to view homelessness as a crime." Chief executive of the Society of St. James, a Southampton-based homelessness charity, Tania Marsh called the move "long-overdue".But she also cautioned against any possible "unintended consequences" of new legislation."It is vital that any new legislation is carefully designed to avoid criminalising individuals pushed into street homelessness," she said."Our focus must remain on providing robust strategies that prioritise prevention, housing-led solutions, and genuine support for everyone experiencing homelessness in our community." Ms Jones told BBC Radio Solent on Wednesday she welcomed the act being repealed, but added: "We must make sure we don't slip back to high streets across the south being full up with people who are sleeping homeless."She said during her time as leader of Portsmouth City Council from 2014 to 2018, the act had been useful in helping to tackle anti-social behaviour associated with temporary Vagrancy Act was originally introduced in 1824 in response to rising homelessness and is expected to be repealed by spring next year. You can follow BBC Hampshire & Isle of Wight on Facebook, X (Twitter), or Instagram.