UK PM gives full backing to Reeves after tearful appearance in parliament
Reeves looked exhausted and appeared to brush away tears during the half-hour session of Prime Minister's Questions in the House of Commons. Her spokesperson said it was a personal matter.
British borrowing costs rose and the pound fell as the weekly question-and-answer session unfolded on TV, with market analysts saying the moves reflected fears that Reeves would be replaced, throwing the government into further turmoil.
Asked about Reeves, a Treasury spokesperson said: "It's a personal matter, which - as you would expect - we are not going to get into."
Starmer's press secretary told reporters: "The chancellor is going nowhere, she has the prime minister's full backing."
The pressure on Reeves comes after the government managed to pass its welfare reform bill, but only after it removed measures that would have led to savings in the long run.
Reeves has repeatedly emphasised her commitment to self-imposed fiscal rules, limiting the amount Britain will borrow to try to build the confidence of investors.
But that ambition collided with Labour members of parliament who were opposed to the scale of the cuts to welfare, and who said Reeves was being cruel in pushing for billions of pounds of savings from some of the most vulnerable people in society.
Opposition politicians and economists said the decision to sharply scale back the welfare reforms meant the government would have to raise taxes or cut spending elsewhere to balance the public finances in the annual budget later this year.
One Labour member of parliament, who asked not to be named, said Reeves was upset after an argument with the House of Commons speaker Lindsay Hoyle. A spokesperson for Hoyle declined to comment.
The opposition Conservative Party leader Kemi Badenoch singled out Reeves during the weekly set-piece parliamentary session, in which lawmakers put questions to the prime minister in often-raucous exchanges, saying: "She's pointing at me, she looks absolutely miserable."
Reeves animatedly gestured back.
Badenoch said: "She is a human shield for his incompetence. In January, he said that she would be in post until the next election. Will she really?"
Starmer then responded that Badenoch would not be in her job by then, but did not explicitly back Reeves.
The appearance of Reeves in tears put British government bonds on track for their biggest daily selloff since October 10, 2022, when financial markets were still reeling from former Prime Minister Liz Truss's decision to announce big, unfunded tax cuts. The pound fell almost 1% on Wednesday.
Starmer's press secretary later said the prime minister had expressed his confidence in Reeves many times and did not need to repeat it every time a political opponent speculated on her position.
The Treasury spokesperson said Reeves would be working out of Downing Street on Wednesday afternoon.
Asked if Reeves had offered her resignation, Starmer's press secretary said: "no".
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Daily Mail
24 minutes ago
- Daily Mail
Make no mistake, what's unfolding is spiteful class warfare on steroids: JEFF PRESTRIDGE
Another day and yet another rumour emerges of an egregious attack on the wealth of Middle England by this tax-grabbing Government. It's enough to reduce grown men and women, the prudent and thrifty to tears. Having just informed us that a more pernicious inheritance tax regime is heading our way, Labour has now indicated that it is looking to impose a new property tax regime on middle-class homeowners. It seems that nothing in our financial armoury – our home, pension and savings – is sacred in the eyes of Labour. It's all there to be grabbed or taxed to the hilt. Although details of the proposed tax are rather sketchy – and Treasury officials are currently remaining schtum – the fact that the story broke in the Labour-supporting Guardian newspaper suggests that this new tax regime has legs. No smoke without fire. The tax, it seems, could apply to those selling homes worth more than £500,000 – and replace the current stamp duty tax which is levied on buyers. Another option is an annual levy on the value of a property – a wealth tax whichever way you look at it. At what rate the tax would be applied is anyone's guess but it would surely be set at such a level that it raised more than the Treasury currently receives in stamp duty (£11.6billion in the last financial year). After all, this is a tax overhaul driven essentially by Labour's desperate need to generate more revenue for the Treasury's coffers, much diminished by the Chancellor's bloated spending and costly U-turns on winter fuel payment and much-needed welfare reform. It's scary – bloody scary. Make no mistake about it, what is unfolding before our very eyes is class warfare on steroids. A spiteful assault on millions of people who through a mix of thrift, sacrifice and damned hard work have built their own financial fortress, only for the Big Bad Wolf that is Labour to come along and attempt to blow it down. While the current stamp duty tax regime is far from perfect, a replacement property tax – whichever form it takes – would bring with it a shedful of issues. For example, if it took the form of a seller's tax, it would surely clog up the housing market even more than it is now. I imagine that many elderly homeowners sitting in sizeable £500,000-plus properties would opt to stay put rather than sell up, pay the tax and downsize. But if it was an annual tax, it could blow a hole in your household budget. Alongside the replacement for stamp duty, Labour is also rumoured to be looking at abolishing council tax and introducing a 'local' property tax which owners, not residents, would pay. This would be based on the value of the home. Good luck there, Rachel Reeves, given that a similar idea (the poll tax) introduced some 35 years ago by a Conservative government led by Margaret Thatcher went down like a lead balloon – and was swiftly abandoned. Of course, there is a strong case for reform of property taxes in this country. But my suspicion is that Rachel From Accounts will use reform as cover to squeeze the middle classes until the pips squeak. As far as she is concerned our homes, pensions and savings are hers to tap for extra tax. Frightening. Beware of the Big Bad She-Wolf.
Daily Mail
24 minutes ago
- Daily Mail
Nigel Farage hails Epping Council's migrant hotel win 'a great victory' after weeks of anarchy following sex assault charge - and makes call to 'step up the pressure'
Nigel Farage has hailed the decision to move migrants out of a controversial asylum hotel as a 'great victory' - as he called for it to be 'inspiration' to the rest of Britain. Council leaders yesterday won the first stage of their battle to close the Bell Hotel in Epping, Essex, on planning permission grounds after it became an epicentre of anti-immigration protests, including some which turned violent. The demonstrations were sparked when a migrant living at the hotel was charged with a series of sexual offences, including some against a 14-year-old girl. Writing in The Telegraph, the Reform UK leader welcomed the decision by the High Court in London to grant the temporary injunction. Mr Farage said: 'This is a great victory for the parents and concerned residents of Epping. Let it also be an inspiration to the rest of Britain.' 'Now the good people of Epping must inspire similar protests around Britain,' he added. 'Wherever people are concerned about the threat posed by young undocumented males living in local hotels and who are free to walk their streets, they should follow the example of the town in Essex. 'Let's hold peaceful protests outside the migrant hotels, and put pressure on local councils to go to court to try and get the illegal immigrants out; we now know that together we can win.' The new junction means that the hotel's owner, Somani Hotels Limited, must stop housing asylum seekers at the site by September 12. It came after the Home Office unsuccessfully attempted to block the legal challenge, claiming its closure would cause 'acute difficulties' and breach asylum seekers' 'fundamental human rights'. The decision was also welcomed by jubilant locals who were pictured opening bottles of Prosecco outside The Bell Hotel. Mother Sarah White, 40, one of the protest organisers, said the news was 'amazing'. She said: 'This is great news - it is fantastic. This is not just for Epping but the rest of the country. Hopefully this is the sign of things to come. 'I really do hope they do not put these people in houses of multiple occupancy within our community now. 'That would be a kick in the face and we would fight it. 'But today's news is really positive. Families and women will be able to sleep easier at night knowing they will not be there. 'It's been a disgrace we have had to fight like this.' Sarah said they would be talking to other towns where migrant hotels are. She added: 'We will start protesting with towns up and down the country. We are standing shoulder to shoulder with them as well. 'We want to show this is bigger than Epping, it is impacting the whole country.' Maureen Chapman, 73, has lived in Epping for 50 years and said she felt 'under threat' by the hotel being there. Yesterday she said: 'This has restored my faith in humanity. It has restored my faith in common sense. Thank God, somebody has actually listened to the people. 'Locals have finally been heard and it feels like it has taken a very long time for that to happen. 'I hope councils up and down the country hear this message loud and clear. These hotels are not wanted and if local people rally around as a community, their voices can be heard.' Admin assistant Sarah Corner, 44, added: 'I am so pleased. Today is a huge day for the people of Epping. It is absolutely amazing. 'I only hope people now don't go through the same hell as we did. 'I was so worried every night. I only live half a mile away from the hotel. 'When there was the news of the alleged sexual assaults, it was horrific. I felt sick. 'We can all now hopefully get on with our lives.' Edward Brown KC, for the Home Office, warned the High Court the move 'runs the risk of acting as an impetus for further violent protests'. It would also 'substantially interfere' with the Home Office's legal duty to avoiding a breach of the asylum seekers' human rights, he said. The barrister added: 'The balance of convenience can never favour a course of conduct that creates a real risk of interfering with fundamental human rights. 'If the injunction is granted by the court, it will substantially impact on the Home Secretary's statutory duties. 'The local authority should in fact have given some consideration to the wider public interest in this application.' He added that the injunction bid 'causes particular acute difficulties at the present date'. Conservative leader Kemi Badenoch said it was 'good news and a victory for the mums and dads I spoke to in Epping who just want their children to be safe'. She added: 'Putting a hotel full of young male illegal immigrants in the middle of a community like Epping was always going to lead to issues. 'They need to be moved out of the area immediately. 'But Epping is just one of many towns struggling with these asylum hotels. 'Labour have no solution, they're not smashing any gangs and small boat arrivals are at record highs. 'I do have a plan - bring back a proper deterrent and remove all illegal arrivals immediately, so towns like Epping never have to deal with this again.' Shadow Home Secretary Chris Philp said: 'Residents should never have had to fight their own Government just to feel safe in their own town.' He accused Labour of deciding to 'tear up the deterrents the Conservatives put in place', such as the Rwanda asylum scheme. Outside the Royal Courts of Justice, Epping council leader Chris Whitbread said: 'This is a decision that's important to Epping Forest, but also important to have councils up and down the country, and it shows that the Government cannot ignore planning rules, just like no-one else can ignore planning rules.' He added: 'This is only the start of a process and subject to appeal, we recognise that, but all things being equal, the Bell Hotel will be empty by September 12, and that's really important for the students, residents, businesses of Epping Forest.' Addressing local residents, he went on: 'If they decide to go outside the Bell Hotel, don't protest, don't over-celebrate. This is the beginning. It is not the end.' The Home Office had not been represented at a previous hearing in the case on Friday. But yesterday the department asked to be allowed to intervene Mr Justice Eyre was due to hand down his ruling on whether the injunction should be granted. Philip Coppel KC, for Epping Forest District Council, said the Home Office's request was 'a thoroughly unprincipled application made in a thoroughly unprincipled way'. He added that the department knew of the injunction bid last week but 'sat on their hands'. It comes after a series of protests in recent weeks outside the hotel. A resident at the hotel, Hadush Kebatu, 41, from Ethiopia, was charged with sexual assault, harassment and inciting a girl to engage in sexual activity. The incidents allegedly happened within two days, just over a week after the 41-year-old arrived in the UK by boat. Raphael Pigott, defending, told a hearing at Colchester magistrates' court on July 17: 'I believe he is here as a refugee or asylum seeker, and that he arrived informally on a boat.' It is alleged Mr Kebatu tried to kiss a schoolgirl as she ate pizza near a busy high street, and the next day attempted to kiss an adult near a fish and chip shop in the town centre, telling her she was 'pretty' while putting his hand on her leg. He then encountered the girl again and tried to kiss her, a court was told. Mr Kebatu has denied the offences and is in custody. A second man who resides at the hotel, Syrian national Mohammed Sharwarq, has separately been charged with seven offences. A series of protests have taken place outside the hotel since the alleged incidents. There was violence outside the premises last month after 'anti-immigration' campaigners clashed with 'anti-racism' demonstrators. Activists brawled in the streets while police battled to contain the chaos. Twenty-eight people have since been arrested in relation to disorder, and 16 of them have been charged. Police chiefs have already described the unrest at The Bell as a 'signal flare' for another summer of disorder. At a hearing on Friday the council told the High Court the housing of asylum seekers at the property was becoming a 'very serious problem' which 'could not be much worse'. Barristers for the council claimed Somani Hotels breached planning rules as the site is not being used for its intended purpose as a hotel, stating there was an 'overwhelming case for an injunction'. Somani Hotels defended the claim with its barristers telling the court in London that a 'draconian' injunction would cause asylum seekers 'hardship'. They added that 'political views' were not grounds for an injunction to be made. They also said that contracts to house asylum seekers were a 'financial lifeline' for the hotel, which was only one per cent full in August 2022, when it was open to paying customers. Opening Friday's hearing Philip Coppel KC, for the council, said: 'Epping Forest District Council comes to this court seeking an injunction because it has a very serious problem. 'It is a problem that is getting out of hand; it is a problem that is causing a great anxiety to those living in the district. 'There has been what can be described as an increase in community tension, the catalyst of which has been the use of the Bell Hotel to place asylum seekers. 'The problem has arisen because of a breach of planning control by the defendant.' He continued that the site 'is no more a hotel than a borstal to a young offender' for asylum seekers and that Somani Hotels had not had 'the courage of conviction to seek a certificate of lawful use', which would have 'resolved the matter in its favour'. Mr Coppel also referenced the alleged sexual assault of the teenage girl, and said several schools were in the nearby area. He said: 'Having this sort of thing go on in such a concentration of schools with no measures in place to stop a repetition is not acceptable. 'It really could not be much worse than this.' Another factor in favour of granting an injunction would be removing a 'catalyst for violent protests in public places'. The barrister added: 'Allowing the status quo to continue is wholly unacceptable, providing a feeding ground for unrest.' Piers Riley-Smith, representing Somani Hotels, said the alleged planning breach was 'not flagrant', and that it was 'entirely wrong' for the council to 'suggest the use has been hidden from them'. The barrister told the court that the hotel previously housed asylum seekers from 2020 to 2021, and from 2022 to 2024, and that the council 'never instigated any formal enforcement proceedings against this use'. He said company applied for planning permission for a 'temporary change of use' in February 2023, but this was later withdrawn as it had not been determined by April 2024. Asylum seekers then began being placed in the Bell Hotel again in April 2025, with Mr Riley-Smith stating that a planning application was not made 'having taken advice from the Home Office'. Addressing the public protests at Epping, the barrister said: 'The court should bear in mind - as recognised by the claimant - that these have spread far beyond locals who might have a genuine concern about their area to a wider group with more strategic national and ideological aims, but that does not necessarily mean the concerns are well-founded. 'Fears as to an increase of crime associated with asylum seekers or a danger to schools are common, but that does not make them well-founded. 'It also sets a dangerous precedent that protests justify planning injunctions.' Mr Justice Eyre refused to give Somani Hotels the green light to challenge his ruling, but the company could still ask the Court of Appeal for the go-ahead to appeal. In his judgment, he said that while the council had not 'definitively established' Somani Hotels had breached planning rules, 'the strength of the claimant's case is such that it weighs in favour' of granting the injunction. He continued that the 'risk of injustice is greater' if a temporary injunction were not granted. A further hearing on whether the injunction should be made permanent is expected to be held at a later date, and is expected to last two days.
BBC News
24 minutes ago
- BBC News
UK independent space agency scrapped to cut costs
The UK Space Agency will cease to exist as an independent entity to cut the cost of bureaucracy, the government said on will be absorbed by the Department for Science, Innovation and Technology (DSIT) in April government says this will save money, cut duplication and ensure ministerial one leading space scientist said the move would lead to disruption in the short term and the UK losing ground to its international competitors over the long run. Dr Simeon Barber of the Open University feared that scrapping UKSA would lead to Britain's space sector "losing focus"."Around the world countries have been recognising the importance of space by setting up national space agencies, and for the government to be scrapping ours seems like a backward step," he said. UKSA was created 2010 in response to the growing importance of the sector to the economy. The development of small spacecraft, satellites and space instrumentation is a field that the UK excels at, thanks in part due to the agency. Its role is to develop the country's space strategy, coordinate research and commercial activities and liaise with international partners. During its tenure UKSA saw a UK astronaut, Tim Peake launched into space to work on the International Space Station and the development of Britain's own capability to launch small satellites and other small payloads into space from space sector generates an estimated £18.6bn a year and employs 55,000 people across the agency, its budget and activities will now be absorbed into DSIT. It follows a commitment from Prime Minister Keir Starmer to reduce costs and cut the number of arms length government bodies, known as quangos (quasi-autonomous non-governmental organisations), starting with the abolition of NHS England announced in minister Sir Chris Bryant said: "Bringing things in house means we can bring much greater integration and focus to everything we are doing while maintaining the scientific expertise and the immense ambition of the sector."The merger will see the agency become a unit within DSIT, staffed by experts from both organisations and retaining the UKSA supporters of the space agency, such as Dr Barber fear that this will mean a loss of the agency's dynamic, proactive approach which has proved to be so successful for the UK's space science and its space industry. He said there was a danger of moving to more bureaucratic, less incentivised ways of working, which he said were more typical of government departments, and were the reason the agency was created in the first place."It feels like we're going to get stuck in the mud again," he told BBC News.
