Latest news with #MsReeves
Telegraph
27-05-2025
- Business
- Telegraph
IMF upgrades UK growth but warns of looming trade war hit
Last week, the Prime Minister announced an about-turn on his flagship policy to withhold winter fuel payments from some pensioners, while the Government is also considering lifting the two-child limit on benefits to families. Mr Eyraud said: 'We take note of the announcement of the PM to change the winter fuel payments. From the IMF perspective, it is very important that the authorities stay the course, that they stick to their commitment to reduce fiscal deficits gradually over the medium term. 'The authorities will need to offset that with other savings measures somewhere else. Our view is that these other measures could be both on the tax or on the spending side.' The IMF also warned that finances were on a dangerous path in the longer term, as rising pension and healthcare spending would leave future governments having to choose between significantly raising taxes or slashing spending. Ms Reeves hailed the upgraded forecast. She said: 'The UK was the fastest-growing economy in the G7 for the first three months of this year and today the IMF has upgraded our growth forecast. 'We're getting results for working people through our Plan for Change – with three new trade deals protecting jobs, boosting investment and cutting prices, a pay rise for three million workers through the National Living Wage, and wages beating inflation by £1,000 over the past year.'
Daily Mail
20-05-2025
- Business
- Daily Mail
Rachel Reeves hints at winter fuel allowance shift saying she is 'listening' to mounting disquiet from Labour MPs
has hinted at a shift on the winter fuel allowance saying she is 'listening' to Labour MPs. The Chancellor suggested she is considering the threshold at which the benefit is removed after the cut was seen as a factor in dire local election results. Ms Reeves stripped nine million pensioners of the payments - worth up to £300 - soon after Labour came to power. Only those on pension credit are still entitled. But Keir Starmer has been facing the threat of a revolt over that policy, as well as curbs to working age benefits. There is speculation that the leadership is looking for a way out, potentially by scaling back the cuts. Taking Treasury questions in the Commons this morning, Ms Reeves said the Government had to take 'difficult decisions and urgent decisions' following last summer's election. Left-wing Labour MP Brian Leishman asked: 'To alleviate grinding penury for millions the Chancellor could introduce an annual wealth tax on multimillionaires that would raise approximately £24billion per annum – yet the Chancellor refuses to entertain this, but does consider cuts to welfare as acceptable. 'Why do 'tough political choices' always seem to impact those who are most vulnerable?' Ms Reeves replied: 'At the budget last year we increased the rate of tax on non-doms, we increased capital gains tax, we increased the carried interest on bonuses and we also introduced VAT on private schools. 'This Government is ensuring that wealthiest pay their fair share because that's a basic Labour principle.' Speaking on the BBC's Newscast last night, Ms Reeves said she would 'continue to listen to understand the concerns that people have raised'. 'I do understand the concerns that people have,' she said. She added: 'We are a government that listens. 'But we would always need to show where the money is going to come from if we're going to make any policy changes. That would be part of the normal process.' Sir Keir faced the Parliamentary Labour Party last night as many MPs mull rebelling over plans to cut benefits. A vote is expected in June. There is also simmering disquiet over his hardline immigration speech last week in which he said that Britain risks becoming 'an island of strangers'. But the PM warned his backbenchers that Reform is now their main rival for power and they have a 'moral responsibility' to keep Nigel Farage out of No10. Labour has been rocked by the defeat to Reform in the Runcorn and Helsby by-election at the start of the month.
Rhyl Journal
18-05-2025
- Business
- Rhyl Journal
Rachel Reeves faces call from her local Labour party to abandon welfare cuts
The Leeds West and Pudsey Constituency Labour Party (CLP), which campaigned to return Ms Reeves to Parliament in the general election as its local MP, has agreed to write to her 'as soon as possible' to make clear it does not support the cuts. The local party branch passed a motion opposing the cuts, seen by the PA news agency, when it met this week. The Government's plans, set out in a Green Paper earlier this year, would tighten the eligibility criteria for the main disability benefit in England, the personal independence payment (Pip). Restricting Pip would cut benefits for around 800,000 people, while the sickness-related element of universal credit also set to be cut. The package of measures are aimed at reducing the number of working-age people on sickness benefits, which grew during the pandemic and has remained high since. The Government hopes the proposals can save £5 billion a year by the end of the decade. In its motion opposing the plans, the Leeds West and Pudsey CLP said disabled people 'are not responsible for the state of the national finances and should not be made to pay the price for Tory economic mismanagement'. The CLP also acknowledged welfare reform is important, but urged the Government to 'focus on reducing the taper' – the rate at which benefits fall off once someone has found work. The local Labour group resolved to write to both Chancellor Ms Reeves and Work and Pensions Secretary Liz Kendall to 'articulate our proposed cuts to disability benefits – whether by reducing rates, implementing higher thresholds, poor quality assessments or increased conditionality – as soon as possible'. Opposition on Ms Reeves's patch comes as the Government appears at risk of a major rebellion from its backbenchers over the plans. Some 100 Labour MPs – more than a quarter of the party's parliamentary numbers – are reported to have signed a letter urging ministers to scale back welfare cuts under consideration, according to media reports. The private letter to Labour's chief whip is separate from a similar one last week, in which 42 MPs said the cuts were 'impossible to support'. Speaking during a recent Westminster Hall debate, Ian Byrne, the Labour MP for Liverpool West Derby, said he was willing to 'swim through vomit' to vote against the cuts. Others including Richard Burgon (Leeds East), Rachael Maskell (York Central), and Andy McDonald (Middlesbrough and Thornaby East) also confirmed they would vote against the plans when they spoke during the debate. Ellen Clifford, from Disabled People Against Cuts, said the campaign group supports the Leeds West and Pudsey CLP's move. She added: 'We hope that the Chancellor takes note of the contents. The scale of the proposed cuts is horrific and will destroy communities, break public services through additional pressures and could well negatively impact the economy. 'They are cruel, badly thought through and entirely performative. Voters will not forget or forgive politicians who back these cuts.' The Chancellor's team, approached for comment, pointed to her previous messages to Labour MPs on the welfare cut proposals. When asked last week what her message to concerned Labour backbenchers was, Ms Reeves said: 'I don't think anybody, including Labour MPs and members, think that the current welfare system created by the Conservative Party is working today. 'They know that the system needs reform. We do need to reform how the welfare system works if we're going to grow our economy.'
ITV News
17-05-2025
- Business
- ITV News
Chancellor Rachel Reeves' local Labour party calls for her to abandon welfare cuts
Rachel Reeves' local Labour party will demand that the Chancellor abandons her plans to cut disability benefits. The Leeds West and Pudsey Constituency Labour Party (CLP) has agreed to write to her "as soon as possible" to make clear it does not support the cuts. The local party branch passed a motion opposing the cuts, seen by the PA news agency, when it met this week. The Government's plans, set out in a Green Paper earlier this year, would tighten the eligibility criteria for the main disability benefit in England, the personal independence payment (Pip). Restricting Pip would cut benefits for around 800,000 people, while the sickness-related element of universal credit also set to be cut. The package of measures are aimed at reducing the number of working-age people on sickness benefits, which grew during the pandemic and has remained high since. The Government hopes the proposals can save #5 billion a year by the end of the decade. In its motion opposing the plans, the Leeds West and Pudsey CLP said disabled people "are not responsible for the state of the national finances and should not be made to pay the price for Tory economic mismanagement". The CLP also acknowledged welfare reform is important, but urged the Government to "focus on reducing the taper" - the rate at which benefits fall off once someone has found work. The local Labour group resolved to write to both Chancellor Ms Reeves and Work and Pensions Secretary Liz Kendall to "articulate our proposed cuts to disability benefits - whether by reducing rates, implementing higher thresholds, poor quality assessments or increased conditionality - as soon as possible". The opposition comes as the government appears at risk of a major rebellion from its backbenchers over the plans. The Chancellor's team, approached for comment, pointed to her previous messages to Labour MPs on the welfare cut proposals. When asked last week what her message to concerned Labour backbenchers was, Ms Reeves said: "I don't think anybody, including Labour MPs and members, think that the current welfare system created by the Conservative Party is working today. "They know that the system needs reform. We do need to reform how the welfare system works if we're going to grow our economy."
Daily Mail
17-05-2025
- Business
- Daily Mail
Rachel Reeves comes under pressure from her own local Labour Party to abandon her disability benefits cuts
's local Labour party will demand that the Chancellor abandons her plans to cut disability benefits. The Leeds West and Pudsey Constituency Labour Party (CLP), which campaigned to return Ms Reeves to Parliament in the general election as its local MP, has agreed to write to her 'as soon as possible' to make clear it does not support the cuts. The local party branch passed a motion opposing the cuts when it met this week. The Government's plans, set out in a Green Paper earlier this year, would tighten the eligibility criteria for the main disability benefit in England, the personal independence payment (Pip). Restricting Pip would cut benefits for around 800,000 people, while the sickness-related element of universal credit also set to be cut. The package of measures are aimed at reducing the number of working-age people on sickness benefits, which grew during the pandemic and has remained high since. The Government hopes the proposals can save £5 billion a year by the end of the decade. In its motion opposing the plans, the Leeds West and Pudsey CLP said disabled people 'are not responsible for the state of the national finances and should not be made to pay the price for Tory economic mismanagement'. The CLP also acknowledged welfare reform is important, but urged the Government to 'focus on reducing the taper' - the rate at which benefits fall off once someone has found work. The local Labour group resolved to write to both Chancellor Ms Reeves and Work and Pensions Secretary Liz Kendall to 'articulate our proposed cuts to disability benefits - whether by reducing rates, implementing higher thresholds, poor quality assessments or increased conditionality - as soon as possible'. Opposition on Ms Reeves's patch comes as the Government appears at risk of a major rebellion from its backbenchers over the plans. Some 100 Labour MPs - more than a quarter of the party's parliamentary numbers - are reported to have signed a letter urging ministers to scale back welfare cuts under consideration, according to media reports. The private letter to Labour's chief whip is separate from a similar one last week, in which 42 MPs said the cuts were 'impossible to support'. Speaking during a recent Westminster Hall debate, Ian Byrne, the Labour MP for Liverpool West Derby, said he was willing to 'swim through vomit' to vote against the cuts. Others including Richard Burgon (Leeds East), Rachael Maskell (York Central), and Andy McDonald (Middlesbrough and Thornaby East) also confirmed they would vote against the plans when they spoke during the debate. Ellen Clifford, from Disabled People Against Cuts, said the campaign group supports the Leeds West and Pudsey CLP's move. She added: 'We hope that the Chancellor takes note of the contents. The scale of the proposed cuts is horrific and will destroy communities, break public services through additional pressures and could well negatively impact the economy. 'They are cruel, badly thought through and entirely performative. Voters will not forget or forgive politicians who back these cuts.' The Chancellor's team, approached for comment, pointed to her previous messages to Labour MPs on the welfare cut proposals. When asked last week what her message to concerned Labour backbenchers was, Ms Reeves said: 'I don't think anybody, including Labour MPs and members, think that the current welfare system created by the Conservative Party is working today. 'They know that the system needs reform. We do need to reform how the welfare system works if we're going to grow our economy.'
