Sir Keir Starmer has been dealt a further blow with a new poll predicting Labour would lose its overall majority if an election was held now.
The poll by FindOutNowUK has put Reform level pegging with Labour on 25 per cent and the Tories five points behind on 20 per cent. According to the calculations, if the result was repeated in a general election Labour would lose 173 seats but remain the largest party on 238.
Reform would leap into second place from the five MPs to 170, taking deputy prime minister Angela Rayner and shadow foreign secretary Priti Patel’s seats. The Tories would be left with just 89 seats and a viable government could only be formed with a deal between Labour and the Lib Dems on 70 seats and SNP on 42.
The poll, which comes after a survey by think tank More in Common that also found Labour would lose its majority, marks a fresh political blow for Sir Keir who has overseen a rocky start to his leadership of the country.
There are also fears over the economy with the pound plunging to its lowest level for over a year after a rout in the bond markets. And with government borrowing costs also increasing, Treasury minister Darren Jones has warned that “public services will have to live within their means”.
Key Points
- Shock poll puts Reform level with Labour
- Warning food prices could soar by 20% as pressure mounts on Reeves
- Musk interviews German far-right leader on X
- Markets functioning in ‘orderly way’, Treasury minister insists
Musk interviews German far-right leader on X
07:39
Athena Stavrou
Elon Musk interviewed the leader of Germany’s far-right Alternative for Germany (AfD) party live on X on Thursday evening.
In a 74-minute conversation with the party’s frontwoman Alice Weidel touched on immigration, German bureaucracy, energy policy, space colonisation, God and Adolf Hitler.
The Tesla boss doubled down on his support for the party and urged Germans to vote for AfD in the upcoming election.
“People really need to get behind AfD, otherwise things are going to get very, very much worse in Germany,” Musk said. “I think Alice Weidel is a very reasonable person. Nothing outrageous is being proposed.”
Warning food prices could soar by 20% as pressure mounts on Reeves
07:32
Athena Stavrou
Rachel Reeves has been hit by a triple whammy of setbacks that appear to have shattered Labour’s dreams of boosting Britain’s economic growth.
With the chancellor set to fly to China on Friday, the pound fell amid fears of surging borrowing costs and future tax rises – and a shocking new report seen by The Independent suggested that the price of food and household staples could rise by 20 per cent.
Read the full exclusive story here:
Shock poll puts Reform level with Labour
07:00
Jabed Ahmed
A stunning poll by FindOutNowUK has put Reform level pegging with Labour on 25per cent and the Tories five points behind on 20 per cent.
According to the calculations if the result was repeated in a general election Labour would lose 173 seats but remain the largest party on 238. Reform would leap into second place from their current 5 to 170, taking deputy prime minister Angela Rayner and shadow foreign secretary Priti Patel’s seats.
The Tories would be left with just 89 seats and a viable government could only be formed with a deal between Labour and the Lib Dems on 70 seats and SNP on 42.
Reform chairman Zia Yusuf said: “Wow, Reform set to win almost twice as many seats as the Tories based on the latest poll!”
Watch: David Lammy dubs US Greenland ambitions as ‘classic Donald Trump’
06:00
Jabed Ahmed
Keir Starmer skips grooming gang vote despite ordering his MPs to vote against it
05:00
Jabed Ahmed
ICYMI | Andy Burnham breaks with Starmer to back national inquiry into grooming gangs
03:00
Jabed Ahmed
Andy Burnham has broken with Sir Keir Starmer to back a limited national inquiry into child grooming gangs, so that “those who may have charges to answer are held to account”.
It comes after Labour MPs voted against Conservative demands for a national probe into the scandal.
The prime minister has insisted that another national inquiry would delay justice for victims, pointing out that recommendations from a seven-year probe which reported in 2022 had not yet been implemented.
“I do think there is a case for limited national inquiry that draws on reviews like the one that I commissioned, the one I’ve seen in Rotherham, and the one we saw in Telford”, Mr Burnham told BBC Radio Manchester.
ICYMI | Lammy agrees with Trump that Europe must spend more on defence
02:00
Jabed Ahmed
Foreign Secretary David Lammy has said that president-elect Donald Trump is “simply right” to say that Europe needs to do more on defence.
In a speech on Thursday, Mr Lammy said: “Donald Trump and JD Vance are simply right when they say that Europe needs to do more to defend its own continent.
“It’s myopia to pretend otherwise with Russia on the march. So this Government will lay out a clear pathway to reaching 2.5% of our GDP on defence.
“A figure, lest we forget that the last Labour government met and was never met by the Tories since David Cameron’s cuts. And with John Healey, we will lead and we will change, to convince all of our Nato allies that rising defence spending is a strategic necessity.”
Exclusive: Religion, police and education leaders unite with grooming survivors to demand immediate government action
01:00
Jabed Ahmed
Watch: Angry farmers disrupt Minister's speech with loud tractor tax protest in Oxford
Thursday 9 January 2025 23:59
Jabed Ahmed
Winston Churchill’s grandson warns Elon Musk to ‘come through me first’ in staunch defence of Jess Phillips
Thursday 9 January 2025 23:01
Jabed Ahmed
Government will do ‘whatever it takes’ to clamp down on ketamine use
Thursday 9 January 2025 22:00
Jabed Ahmed
The Government will do “whatever it takes” to clamp down on the use of ketamine, a Cabinet minister has told MPs.
Leader of the House of Commons Lucy Powell said many members see the “real, dangerous impact” of increased use of the drug, as ministers seek advice as to whether it should be reclassified as a class A drug.
In the year ending March 2023, an estimated 299,000 people aged 16 to 59 had reported use of the substance, which is currently controlled as class B, according to the Home Office.
Policing minister Dame Diana Johnson will write to the Advisory Council on the Misuse of Drugs to ask whether its classification should be changed and will “carefully consider” its findings.
Labour MP for Bangor Aberconwy, Claire Hughes, told the Commons during Business Questions on Thursday that parents in her constituency are “deeply worried about the prevalence of ketamine” in the community.
Ms Powell replied: “I think many of us see the real, dangerous impact of the rise in use of ketamine across our constituents and with young people.”
ICYMI | Truss sends cease and desist to Starmer demanding he stop saying she crashed the economy
Thursday 9 January 2025 21:00
Jabed Ahmed
Ed Davey calls on Reeves to cancel China trip to focus on cancelling NI hike and rebuild with EU
Thursday 9 January 2025 20:00
Jabed Ahmed
Liberal Democrat Leader Ed Davey has called on the Chancellor to cancel her trip to China and instead make an emergency fiscal statement to Parliament cancelling the national insurance hike planned for April, to boost economic growth and bring interest rates down.
Mr Davey said: “Instead of jetting off to China, the Chancellor should urgently come before the House of Commons to cancel her counterproductive jobs tax and set out a real plan for growth.
“The country is paying an ever-higher price for the total mess the Conservative Party made of our economy, and the Chancellor needs to realise that she’ll never dig us out of this hole without a far more ambitious plan to grow our economy, including rebuilding trade with Europe.
“The Government’s misguided jobs tax is hurting businesses and hitting investment badly, meaning it will hold back growth while failing to raise the funding the Chancellor claims for the NHS.
“The Chancellor should look instead at our plans to raise revenue without hitting jobs and growth, by raising taxes on the profits of the big banks, social media giants and online gambling firms – all of which are making eye-watering profits while ordinary families struggle.”
Jess Phillips sys she has not lost her ‘gumption’ after Musk attacks
Thursday 9 January 2025 19:18
Holly Evans
Jess Phillips has said MPs can jump on the bandwagon of combating grooming gangs and child sexual exploitation – but “it is action that is needed”.
In an off-the-cuff speech, the safeguarding minister argued there was a lack of “actual fundamental change on the ground” when the Conservatives were in power and said accepting recommendations does not change people’s lives.
Ms Phillips also told the Commons she has not lost her “gumption” despite US billionaire Elon Musk describing her as a “rape genocide apologist” after she declined a request from Oldham Council for a Whitehall-led inquiry into child sexual abuse in the town.
In a reference to Mr Musk’s tweet, Prime Minister Sir Keir Starmer said Ms Phillips and others received threats as a result of the “poison of the far right”.
Many MPs spoke out in support of Ms Phillips during a debate on violence against women and girls, including Conservative former minister Dame Karen Bradley, who said she had “immense sympathy for what she is going through”.
Comment | John Rentoul: Was this the moment David Lammy stepped up as a Starmer asset?
Thursday 9 January 2025 18:01
Jabed Ahmed
Shadow minister tells farmers: Labour is ‘coming after you and your way of life’
Thursday 9 January 2025 17:41
Jabed Ahmed
Reacting to Environment Secretary Steve Reed’s speech, shadow secretary Victoria Atkins said: “So far, all Labour has done for farmers is introduce the vindictive family farm tax that threatens to destroy family farming as we know it; hike national insurance that will slash jobs and rural businesses; remove the capital grants that farmers rely on to grow their businesses; and speed up cuts to farming payments.
“The only guarantee Labour offers to farmers is that they’re coming after you and your way of life.
“In government, the Conservatives introduced the Agriculture Act, which set out a framework to support farmers including through fairness in supply chains.
“We also introduced a legislative commitment to the UK Food Security Report. Labour voted against these measures then, so are not to be trusted now. The Conservatives will stand up for farmers and our rural communities.”
Full report: Environment secretary drowned out by Tractor Tax protests as farmers condemn ‘rubbish’ reforms
Thursday 9 January 2025 17:20
Jabed Ahmed
Government plan to reduce VAWG is not ambitious enough, Shadow minister says
Thursday 9 January 2025 16:59
Jabed Ahmed
Shadow equalities minister Mims Davies said the Government should be more ambitious in its aims for tackling violence against women and girls, calling for it to be eliminated completely.
Responding to Alex Davies-Jones from the Conservative frontbench, Ms Davies said: “I do appreciate the focus on halving violence against women and girls, that’s not enough.
“Let’s focus on pure eradication. And that is one thing that all sides of this house can agree on.”
Ms Davies added: “There are women and girls in our communities who want to know that we are here with the focus of keeping them safe.
“And when it comes to domestic abuse or any kind of criminality, when it comes to women and girls in our community, criminality is criminality, where ever it is found, and domestic abuse wherever it is must continue to be tackled, it cannot remain untackled, it must always be uncovered.”
Angela Rayner says she would challenge Elon Musk on ‘factual basis’ of his claims
Thursday 9 January 2025 16:52
Holly Evans
Angela Rayner has said she would meet with Elon Musk and challenge him on the “factual basis” of his recent social media attacks against the Government.
Asked whether she would meet with Mr Musk, the Deputy Prime Minister said: “I would meet with Elon Musk, yeah, of course I would and I would challenge him on a factual basis.
“I think we all have a responsibility to make sure that we work on facts, and, you know, as politicians, we have to correct the record if we’re incorrect.
“I think that there is a responsibility if you’re using your wealth and your platform in that way to make sure that all those facts are correct, because otherwise there’s real consequences.
“We’ve seen this in real time on the number of incidents where people have been factually incorrect and it’s led to really serious outcomes.”
She added: “So, therefore, I say to anyone who’s got a platform, a significant platform, have a responsibility to make sure that they’re factually correct, and when they’re not correct they should be correcting the record as soon as possible.”
The scale of violence against women and girls is a national emergency, minister says
Thursday 9 January 2025 16:39
Jabed Ahmed
The extent of violence against women and girls is “intolerable”, a Government minister has said, as she branded the problem a national emergency.
Justice minister Alex Davies-Jones said women had been let down by the system and that women and girls should be free to live their lives without violence, abuse and harassment.
She said: “The scale of violence against women in this country is intolerable, a national emergency, so I welcome the opportunity for this house to unite and debate it today.
“Tackling violence against women and girls in all its forms is a top priority for this Government, and central to our wider mission to make this country’s streets safer.”
Ms Davies-Jones went on condemn threats against her ministerial colleague Jess Phillips. “They are absolutely abhorrent,” she said. “They demonstrate all too clearly the way that some men view women’s place in the world.”
She added: “We will continue to speak out, we will not be silenced.”
Calls for internet pornography that ‘dehumanises’ women to be regulated
Thursday 9 January 2025 16:29
Holly Evans
Online pornography should be regulated in the same way as offline material, a Conservative MP has said.
Rebecca Paul warned about the impact of internet pornography, warning that content often contains “harmful, degrading and violent imagery that dehumanises women”.
“This material has become mainstream, though it bears little resemblance to real sex or what goes on in genuinely loving relationships,” she said. “Worryingly, in these videos women are typically shown responding neutrally when on the receiving end of this aggression, or even with pleasure.
“Make no mistake, this content reinforces the idea that women desire and derive pleasure from violence, and ultimately perpetuates rape culture.”
The Reigate MP said she believes online platforms should be required to verify that every person in a pornographic video is an adult, and gave permission for the video to be uploaded.
Previous poll suggested Labour would lose nearly 200 seats if election was held in December
Thursday 9 January 2025 16:14
Jabed Ahmed
The FindOutNowUK prediction (2.21pm post) is not the first time a poll has predicted dire conditions for Sir Keir Starmer’s party.
At the end of 2024, the first major seat-by-seat analysis following the general election found Labour would lose its majority and nearly 200 seats in the Commons.
The MRP polling from think tank More in Common found Labour would lose 87 seats to the Conservatives, 67 to Reform UK, and 26 to the SNP.
Full report: Rachel Reeves facing calls to cancel controversial China trip as pound tumbles
Thursday 9 January 2025 15:49
Jabed Ahmed
Andy Burnham breaks with Starmer to back national inquiry into grooming gangs
Thursday 9 January 2025 15:30
Millie Cooke
Andy Burnham has broken with Sir Keir Starmer to back a limited national inquiry into child grooming gangs, so that “those who may have charges to answer are held to account”.
It comes after Labour MPs voted against Conservative demands for a national probe into the scandal.
The prime minister has insisted that another national inquiry would delay justice for victims, pointing out that recommendations from a seven-year probe which reported in 2022 had not yet been implemented.
"I do think there is a case for limited national inquiry that draws on reviews like the one that I commissioned, the one I've seen in Rotherham, and the one we saw in Telford”, Mr Burnham told BBC Radio Manchester. (
Watch: Lammy declares ‘post Cold War peace is well and truly over’ as he takes aim at Putin
Thursday 9 January 2025 15:29
Jabed Ahmed
Downing Street says grooming gang victims do not want another national inquiry
Thursday 9 January 2025 15:10
Jabed Ahmed
The Prime Minister is not wavering on whether to set up a new grooming gangs inquiry, his official spokesman said.
Asked if he would reject the suggestion the Prime Minister was wavering on his insistence there would not be a fresh inquiry, the spokesman said: “Of course. We will be guided by the victims, and what we’ve heard from the victims is that they don’t want to see another National Inquiry.
“We’ve had a national inquiry, it… engaged 7,000 victims, and what victims are telling us is that they want to see action, and that’s where the Government is focused, and that’s why we’re not going ahead with another national inquiry.
“But as the PM said on Monday, we will always listen to victims, we will always listen to local areas, we always listen to specific allegations or issues as they are put to us, and we will faithfully deal with them, but what we have heard loud and clear from victims is that they want to see action.”
Starmer meets with police chiefs to discuss people smugglers
Thursday 9 January 2025 14:49
Jabed Ahmed
Speaking with law enforcement chiefs in central London, Sir Keir Starmer described the new sanctions regime for people smugglers as a “very powerful addition to the powers at your disposal”.
Among those meeting the Prime Minister at the City of London Police station were Martin Hewitt, the Government’s border security commander, and the City of London Police Commissioner Pete O’Doherty.
Downing Street suggests millions across the country share Starmer’s view on Truss’ mini-budget
Thursday 9 January 2025 14:29
Jabed Ahmed
Sir Keir Starmer will not be moderating his language about Liz Truss’s record in office, Downing Street has suggested, after lawyers representing her sent the Prime Minister a letter asking him to stop saying she crashed the economy.
Asked whether the Prime Minister stands by his assertion that the former premier tanked the economy, his official spokesman said: “There’s only so much I can talk about previous administrations, but you’ve got the Prime Minister’s language which he absolutely stands by in relation to the previous government’s record, and you don’t have to take it from the Prime Minister.
“I think you can ask people up and down the country what the impact of previous economic management was on their mortgages, on inflation, and I think you’ll get similar answers.
“But what we’re focused on now is the decisions this Government needs to take to ensure that we tackle the long-standing underlying weaknesses in the UK economy that you know have obviously been around for many years – low productivity, low growth – because ultimately they are the fundamental reasons why wages have been low over recent years and… the Government’s number one mission (is) to deliver growth and deliver higher living standards for working people.
Asked whether Sir Keir had plans to moderate his language, he said: “No.”
Shock poll puts Reform level with Labour
Thursday 9 January 2025 14:21
David Maddox
A stunning poll by FindOutNowUK has put Reform level pegging with Labour on 25per cent and the Tories five points behind on 20 per cent.
According to the calculations if the result was repeated in a general election Labour would lose 173 seats but remain the largest party on 238. Reform would leap into second place from their current 5 to 170, taking deputy prime minister Angela Rayner and shadow foreign secretary Priti Patel’s seats.
The Tories would be left with just 89 seats and a viable government could only be formed with a deal between Labour and the Lib Dems on 70 seats and SNP on 42.
Reform chairman Zia Yusuf said: “Wow, Reform set to win almost twice as many seats as the Tories based on the latest poll!”
Ed Davey calls on Reeves to cancel China trip to focus on cancelling NI hike and rebuild with EU
Thursday 9 January 2025 14:14
Kate Devlin
Liberal Democrat Leader Ed Davey has called on the Chancellor to cancel her trip to China and instead make an emergency fiscal statement to Parliament cancelling the national insurance hike planned for April, to boost economic growth and bring interest rates down.
Mr Davey said: “Instead of jetting off to China, the Chancellor should urgently come before the House of Commons to cancel her counterproductive jobs tax and set out a real plan for growth.
“The country is paying an ever-higher price for the total mess the Conservative Party made of our economy, and the Chancellor needs to realise that she’ll never dig us out of this hole without a far more ambitious plan to grow our economy, including rebuilding trade with Europe.
“The Government’s misguided jobs tax is hurting businesses and hitting investment badly, meaning it will hold back growth while failing to raise the funding the Chancellor claims for the NHS.
“The Chancellor should look instead at our plans to raise revenue without hitting jobs and growth, by raising taxes on the profits of the big banks, social media giants and online gambling firms – all of which are making eye-watering profits while ordinary families struggle.”
Winston Churchill’s grandson warns Elon Musk to ‘come through me first’ in staunch defence of Jess Phillips
Thursday 9 January 2025 13:50
Jabed Ahmed
Our Whitehall Editor Kate Devlin reports:
Watch: Angry farmers disrupt Minister's speech with loud tractor tax protest in Oxford
Thursday 9 January 2025 13:31
Jabed Ahmed
Former Tory minister accuses Reeves of fleeing to China
Thursday 9 January 2025 13:08
Jabed Ahmed
A Conservative former minister has accused Chancellor Rachel Reeves of having “fled to China”, as MPs grilled the Government on its fiscal plans.
In the Commons, Dame Harriett Baldwin said: “In yesterday’s extraordinary emergency statement from the Treasury to try and calm the markets the Treasury statement paid tribute to the fact it inherited the second lowest debt in the G7.
“And is the reason that the frontbench is so empty today, the Chancellor has fled to China, that she has realised that her budget means that she now is the arsonist?”
Treasury minister Darren Jones replied: “The Chancellor is going on her trip to China, it has been well documented for many weeks, an important visit in terms of trade and investment in the economy here in the UK.
“And might I just say there was no emergency statement, or emergency intervention, these are make-belief words being propagated by members on the benches opposite. The Treasury responded to requests from journalists about headroom, as we might do in the normal way.”
Father of the House asks if Reeves will use her “sticky fingers” to increase borrowing or taxes
Thursday 9 January 2025 12:49
Jabed Ahmed
Senior Conservative MPs have pressed the Government on whether the Chancellor will increase taxes or borrowing.
In the Commons, former Treasury minister John Glen said: “This Government have either got to cut spending, increase taxes or borrow mor, and if the cost of borrowing is increasing, that moment is going to come sooner. Which of those choice is he inclined to make and when is he going to tell the British people honestly what this Government has done?”
Treasury minister Darren Jones replied: “The fiscal rules are non-negotiable, public services will have to live within their means, we’ve set the budget.”
“We have the OBR (Office for Budget Responsibility) forecast coming in March, those are the numbers departments are working to in this spending review, those are the numbers we will hold public services to when we conclude the spending review in June,” he added.
Father of the House Sir Edward Leigh asked if Chancellor Rachel Reeves would be using her “sticky fingers” to increase borrowing or taxes, adding: “Will the minister give an absolute assurance, no more tax increases or borrowing?”
Mr Jones said the spending review is “on the basis of the envelope that was set at the budget”, adding: “The OBR forecast will come in March which will then give us the latest set of information which we will work to with departments.”
Exclusive: Religion, police and education leaders unite with grooming survivors to demand immediate government action
Thursday 9 January 2025 12:31
Jabed Ahmed
Our Social Affairs Correspondent Holly Bancroft reports:
Public will not have to change lives ‘radically’ for climate goal, MPs promised
Thursday 9 January 2025 12:13
Jabed Ahmed
Lammy agrees with Trump that Europe must spend more on defence
Thursday 9 January 2025 12:00
Jabed Ahmed
Foreign Secretary David Lammy has said that president-elect Donald Trump is “simply right” to say that Europe needs to do more on defence.
In a speech on Thursday morning, Mr Lammy said: “Donald Trump and JD Vance are simply right when they say that Europe needs to do more to defend its own continent.
“It’s myopia to pretend otherwise with Russia on the march. So this Government will lay out a clear pathway to reaching 2.5% of our GDP on defence.
“A figure, lest we forget that the last Labour government met and was never met by the Tories since David Cameron’s cuts. And with John Healey, we will lead and we will change, to convince all of our Nato allies that rising defence spending is a strategic necessity.”
Lammy warns ‘Our opponents are coordinating ever more closely'
Thursday 9 January 2025 11:51
Jabed Ahmed
Speaking in the Locano room in the Foreign Office on Thursday, the foreign secretary said that Russian aggression had ripped up the established world order from the 1990s.
Underlining his policy thrust of “progressive pragmatism” he also took aim at the previous Tory governments for undermining Britain’s place in the world. He tipped his hat to repairing some of the damaged relationships not just with the EU.
Mr Lammy told an invited audience: “We and our allies must relearn the Cold War manual, long-term thinking, not short-termism.
“Consistent deterrence, not constant distraction. Adapting as emerging technology reshapes the strategic environment. Securing strategic stability in an unstable world.”
And he warned: “Our opponents are coordinating ever more closely.“With Iranian drones fired at Ukrainian cities and North Korean troops now fighting against Ukraine.”
Tories ‘panicked and mothballed’ over HS2 leading to spiralling costs, committee chairwoman says
Thursday 9 January 2025 11:47
Jabed Ahmed
The Government has faced calls to ensure the HS2 route between London and Birmingham is connected to the wider rail network north of Birmingham.
Chairwoman of the Transport Select Committee Ruth Cadbury said: “The original vision for HS2 was to link London with the Midlands and the north and also to address the growing capacity challenge on the West Coast Main Line with a whole new rail line.
“The last government panicked and mothballed much of the project over cost overruns on phase one, thus incurring yet further costs. And I welcome the Secretary of State’s commitment to get a grip on the phase one cost overruns.
“But what I want to know is does the Government plan to deliver a rail solution linking phase one north of Birmingham to the rest of the country, and thus delivering the Government’s vision to drive growth for the whole country.”
Transport Secretary Heidi Alexander said: “I’m pleased that she raises the question of the mess that we inherited from the Conservative government on HS2 and rail connectivity in the north. When we entered government in July we did find that ragtag collection of half-baked, unfunded spending commitments for rail schemes up and down the country.”
She added: “We have started the hard work of identifying a realistic pipeline of schemes that is affordable and will deliver better connectivity in partnership with local leaders.”
Lammy declares ‘post Cold War peace is well and truly over’ as he takes aim at Putin
Thursday 9 January 2025 11:37
Jabed Ahmed
Our Political Editor David Maddox reports:
Farmers will have profits ‘wiped out’ by IHT rises, association leader warns
Thursday 9 January 2025 11:26
Jabed Ahmed
Environment Secretary Steve Reed has finished his speech at the Oxford Farming Conference.
Responding to his remarks, Victoria Vyvyan, president of the Country Land and Business Association (CLA) warned farm businesses faced having profits “wiped out” by inheritance tax bills.
“Capping vital inheritance tax reliefs will threaten their viability and not deliver the growth and investment the government says it wants to achieve.
“Farmers are playing their part in enhancing the environment and delivering public goods, but they also need to be able to run viable, profitable businesses.
“The Government’s freezing of the farming budget and lack of ambition for the rural economy is hitting confidence,” she said as she urged the Government to invest in productivity, strike new trade deals and defend farms from drought and flood.
Mel Stride asks ‘Where is the Chancellor?’ as he delivers urgent question on the economy
Thursday 9 January 2025 11:17
Jabed Ahmed
Shadow chancellor Mel Stride said Treasury minister Darren Jones had delivered a “slightly anxious and breathless” response to the urgent question, adding: “Where is the Chancellor? It is a bitter regret that at this difficult time with these serious issues she herself is nowhere to be seen.
“In the last 48 hours borrowing costs have reached a 27-year high and it is the Chancellor’s decisions that have led us here. Before the election (Rachel Reeves) promised that Labour would get debt falling, they would not fiddle the figures, they would not raise taxes and they would grow the economy, but the economy is now flatlining.
“Survey after survey is showing business confidence has simply evaporated and at the budget the Chancellor hiked up taxes, increased borrowing by an average of £32 billion-a-year across the forecast and conveniently adjusted her fiscal rules to allow her to do it.
“Higher debt and lower growth are understandably now causing real concerns among the public, amongst businesses and in the markets. And despite what (Mr Jones) says about international factors, the premium on our borrowing costs compared to German bonds recently hit its highest level since 1990.
“With these rising costs, regrettably the Government may now be on course to breach their fiscal rules and the Chancellor has committed to no further tax rises, so does (Mr Jones) stand by her commitment not to increase taxes even further and, if so, does this mean that the public should expect cuts to public service spending if the OBR judge her fiscal headroom has evaporated?”
What rising government debt costs mean for you: Mortgages, employment and the economy
Thursday 9 January 2025 11:08
Jabed Ahmed
Read the full report from my colleague Howard Mustoe:
Treasury minister: ‘Government does not comment on specific financial market movements'
Thursday 9 January 2025 11:05
Jabed Ahmed
Treasury minister Darren Jones, responding to an urgent question on borrowing costs from shadow chancellor Mel Stride, told the Commons: “Financial markets are always evolving as the shadow chancellor knows so it is a long-standing convention that the Government does not comment on specific financial market movements and I will not be breaking that convention today.
“Financial market movements, including changes in Government bond or gilt yields, which represent the Government’s borrowing costs, are determined by a wide range of international and domestic factors.
“It is normal for the price and yields of gilts to vary when there are wider movements in global financial markets, including in response to economic data.
“In recent months, movement in financial markets has been largely driven by data and global geopolitical events, which is to be expected, as markets adjust to new information.”
Conservative MPs had shouted “where is she” in reference to Chancellor Rachel Reeves as the urgent question was directed at her, but Mr Jones was sent by the Government to respond.
Markets functioning in ‘orderly way’, Treasury minister insists
Thursday 9 January 2025 10:50
Jabed Ahmed
Darren Jones, Chief Secretary to the Treasury, has said the situation in financial markets is “always evolving” as he addressed an urgent question by Mel Stride on the turmoil in financial markets.
Mr Jones said the surge in bond yields had been “largely driven by data and geopolitical events”.
He insisted the gilts market “continues to function in an orderly way” and that there remained “strong demand” for UK debt.
