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Telegraph
an hour ago
- Business
- Telegraph
Reeves as unpopular as Kwarteng at height of mini-Budget crisis
Rachel Reeves is now as unpopular as Kwasi Kwarteng during the height of the mini-Budget blow-up. New polling shows that the Chancellor now inspires as little public confidence as Liz Truss's chancellor did during the fiscal crisis. Some 51 per cent of voters think Ms Reeves is doing a 'bad job' at the Treasury, according to Ipsos. Just 16 per cent think she is doing a 'good job'. In the aftermath of the mini-Budget in late September 2022, Ipsos found that 53 per cent of the public thought Mr Kwarteng was doing a 'bad job'. He was sacked a fortnight later as Ms Truss scrambled to save her premiership. Ms Truss's mini-Budget, a programme which included £45 billion in tax cuts, led to market chaos after it was announced by Mr Kwarteng in the House of Commons. The resulting turmoil ended her stint in Downing Street after just 49 days. Since she took office as Chancellor in July, Ms Reeves has been criticised for raising employer National Insurance contributions despite a manifesto pledge that National Insurance and income taxes would not rise under Labour. Her early decision to remove the winter fuel payment from millions of pensioners after changing the eligibility criteria has also provoked public ire, with the Government now set to reverse the decision in the coming months. Yet despite Ms Reeves's poor personal ratings, Labour remains the most trusted party on economic affairs. A fifth of voters now say that Labour is the party they trust most to manage the nation's finances, with Reform in second place on 17 per cent. The Conservatives are now ranked third on 16 per cent, despite the economy previously being an electoral strength for the party. The new figures come as separate polling shows a large proportion of Labour voters support the two-child benefit cap despite the Government's plans to scrap it. New figures from pollster Opinium show that 42 per cent of Labour voters, and 44 per cent of voters overall, are in favour of keeping the cap. The Government is considering ending the cap, which prevents parents from claiming tax credits or Universal Credit for their third and any subsequent children. It was introduced into law by the Conservative-Liberal Democrat Coalition in 2013 but did not come into force until 2017. Labour's Child Poverty Taskforce, set up to reduce levels of child poverty in Britain, is expected to recommend significant reforms or the total abolition of the cap later this year. The Prime Minister is expected to implement any such recommendations. He has also reportedly committed in private to scrapping the two-child limit during this Parliament. A large majority of Reform voters also support the cap despite Nigel Farage, the party leader, pledging to abolish it. Some 59 per cent of Reform voters support the benefits cap. Mr Farage repealing the cap, along with more tax breaks for married couples, is part of Reform's plan 'to encourage people to have children, to make it easier for them to have children'. James Crouch, head of public affairs and policy at Opinium, said: 'While both Labour and Reform explore scrapping the two-child benefit cap, Opinium's latest polling shows their leadership could be out of step with many of their voters, who simply don't see it as affordable – whatever the rights or wrongs of the policy.'
Yahoo
an hour ago
- Business
- Yahoo
Britain will 'without a doubt' spend £10 billion extra on defence, says Labour
LABOUR'S Defence Secretary John Healey said spending 3% of GDP on defence was no longer an 'ambition' but a certainty. The UK Government's 10-year defence plan, which is due to be announced on Monday, is said to be 'unaffordable' without the increased spending, The Times has reported. Prime Minister Keir Starmer had previously outlined the 3% target by 2034 as an 'ambition', but Healey has now said it is a certainty. Healey's comments mean the Labour Government would be committed to spending more than £10 billion extra on defence every year despite criticism over proposed cuts to public services. READ MORE: Labour has 'given up' on by-election amid SNP-Reform contest, says John Swinney In February, Starmer announced that the UK would spend 2.5% of GDP on defence by April 2027, raiding the international development budget, which was a decision branded by the Scottish Government as 'deeply disappointing'. At the same time, Starmer also outlined an 'ambition' to reach 3% by 2034, a target which was reportedly described by government sources as still an 'ambition' this week. However, Healey (below) told The Times on Saturday: 'In the next parliament, this country will spend 3 per cent of our GDP on defence.' When pressed whether this was a firm commitment, he said he had 'no doubt' Britain would be spending 3% 'in the next parliament'. He said there was a 'certain decade of rising defence spending', adding: 'It allows us to plan for the long term. It allows us to deal with the pressures.' It is unclear whether Healey's comments were an attempt to pressure the Treasury into approving the spending or if it was a commitment that has been agreed across Whitehall. It was also reported that the review, which was due to be published during VE Day week this month, into Britain's defence spending had been delayed because of rows with the Treasury. One source told The Times there had been 'discontent that the Ministry of Defence is using it to push for more defence spending'. The Office for Budget Responsibility (OBR) has estimated that reaching 3% of GDP by the next parliament would cost the UK an additional £17.3bn in 2029-30. The 130-page review reportedly will warn of the 'immediate and pressing' danger posed by Russia and will also describe Iran and North Korea as 'regional disruptors'. The review comes as other government departments are still negotiating how much they will have to spend over the next three years. A Ministry of Defence spokesperson said: 'This government has announced the largest sustained increase to defence spending since the end of the Cold War — 2.5 per cent by 2027 and 3 per cent in the next parliament when fiscal and economic conditions allow, including an extra £5 billion this financial year. 'The review will rightly set the vision for how that uplift will be spent, including new capabilities to put us at the leading edge of innovation in Nato, investment in our people and making defence an engine for growth across the UK — making Britain more secure at home and strong abroad.' NATO member states are expected to agree to a defence spending target during a summit in June with the target reportedly possibly being as high as 3.5% of GDP.
The Independent
4 hours ago
- Business
- The Independent
Angela Rayner and Rachel Reeves clash over spending plans
A Treasury deadline for agreeing on departmental spending plans has passed, revealing a clash between Chancellor Rachel Reeves and Deputy Prime Minister Angela Rayner over political direction. Rayner's Ministry of Housing, Communities and Local Government (MHCLG) is among departments yet to settle budget plans with the Treasury, resisting cuts and advocating for a more progressive, higher-tax approach. Reeves is reportedly pushing for significant efficiency savings across departments, except for defense and health, leading to accusations of " austerity 2.0" from within the Labour party. Rayner proposed alternative wealth taxes and benefit limitations in a leaked memo to Reeves, highlighting disagreements over fiscal strategy and priorities. The stand-off occurs amid broader concerns among Labour MPs about potential austerity measures and pressure on Reeves due to strict borrowing rules and election promises.
Yahoo
5 hours ago
- Business
- Yahoo
New Metro line feasibility study under way
Designs for new Metro stations and bridges are set to be drawn up in a bid to win government support for a £900m expansion. The proposed new route to Washington in Sunderland would use part of the disused Leamside line running from Pelaw in Gateshead. Engineering consultants Arup have been appointed to carry out a feasibility study for the project and design work for infrastructure, which is being overseen by Labour's North East Mayor Kim McGuinness. It is hoped their designs will help local leaders when lobbying for the huge amount of public funding that would be needed to actually build the extension. The Local Democracy Reporting Service said full details of where Metro trains would stop in the area, the economic benefits of the eight mile (13km) rail extension and the true cost of the project are expected to be revealed during the development of the outline business case. The Washington Metro Loop represents the first section of a wider ambition to reopen the entire Leamside Line, which runs down through County Durham and could allow for the launch of new Tyne-Tees train services. It was estimated in 2022 that the scheme would cost £745m, but this has since been listed as costing £900m in the mayor's new regional transport plan, which sets a target of delivering the project by 2032. While the restoration has been a top priority for leaders for years, some critics have raised concerns it could be a "vanity project" which it may not be feasible to deliver. However, McGuinness has long stated her determination to deliver on the promise of bringing the Metro to Washington, describing it as a "major part" of her ambition to re-open the Leamside route through County Durham and Sunderland. "I am determined to transform our transport network to change the lives of local people for generations to come," she said. "This project will be the biggest expansion of the Metro for more than 20 years – and it will be just as transformative as the Sunderland line was when it first opened back in 2002." Follow BBC North East on X, Facebook, Nextdoor and Instagram. Government 'working closely' to reopen rail line Which are the possible Leamside Line stations? 'Incredibly high' cost of new Metro line questioned Nexus North East Combined Authority
Washington Post
5 hours ago
- Business
- Washington Post
Are the super-rich leaving London? Tax reforms could spur wealth exodus.
LONDON — Not long after the Labour Party swept to power last summer, Charlie Mullins, a British entrepreneur who made his millions in plumbing, packed up and left. 'Britain's just not a good place to do business anymore,' Mullins said in an interview, during a brief stopover in a country he now calls his former home. He now splits his time between two sun-soaked destinations: Spain and Dubai.
