UK politics live: Starmer meets Macron at Paris Paralympics after opening Germany talks

WorldPolitics
29 Aug 2024 • 4:58 AM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

Sir Keir Starmer has been greeted by Emmanuel Macron ahead of the Paralympics opening ceremony in Paris, after meeting in Germany with chancellor Olaf Scholz as the prime minister pursues his post-Brexit reset agenda.

In a press conference in Berlin, the prime minister said a new treaty between Britain and Germany will help “deliver for working people” and create “deeper links on science, technology, development, people, business, and culture”.

Sir Keir promised that Labour will work towards a “once-in-a-generation” Germany-UK treaty in a bid to boost post-Brexit trade.

It comes as chancellor Rachel Reeves has refused to rule potential increases on capital gains tax warning that Labour will “have to make difficult decisions in a range of areas”.

The PM has been accused by the Tories of planning to hike capital gains and inheritance tax in a fresh “raid on pensions”. Shadow chief secretary to the Treasury Laura Trott claimed the government will bring “ruinous tax rises”.

Key Points

  • Keir Starmer accused of lacking ambition as he launches Brexit reset in Germany
  • PM greeted by Macron in Paris ahead of Paralympics opening ceremony
  • Chancellor refuses to rule out rise in inheritance and capital gains tax
  • Labour accused of plotting capital gains tax raid on middle classes
  • Starmer announces ‘once-in-a-generation’ UK-Germany Brexit treaty
  • Tories warn Starmer against losing ‘Brexit benefits' in deal

Starmer greeted by Macron in Paris ahead of Paralympics opening ceremony

21:57

Andy Gregory

Following his engagements in Berlin, Sir Keir Starmer was heading to Paris for the start of the Paralympics and talks with French President Emmanuel Macron, where he will continue to pursue his reset agenda.

The prime minister was greeted by Mr Macron at the Elysee Palace ahead of the opening ceremony on Wednesday.

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Starmer accused of lacking ambition as he launches Brexit reset in Germany

21:55

Andy Gregory

Sir Keir Starmer has been criticised for lacking ambition in his bid to reset relations with the EU, after he rejected the idea of free movement for under-30s and rejoining the students’ Erasmus scheme even before talks got underway.

The prime minister made it clear he was not open to a deal that would make it easier for young people from the UK and the European Union to travel, when he held a joint press conference with German chancellor Olaf Scholz on Wednesday.

Despite Sir Keir having described the renegotiation as “a once-in-a-generation opportunity”, there are concerns that he is not willing to be flexible on a proposal that is strongly supported in the EU.

Our political editor David Maddox reports:

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Pictured: Chancellor Rachel Reeves visits National Manufacturing Institute in Scotland

21:30

Salma Ouaguira

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Energy bosses urge Labour to ease burden on ‘struggling industry’

21:00

Salma Ouaguira

Energy UK’s chief executive Emma Pinchbeck said suppliers were already doing a lot to help households struggling with bills.

She told BBC Radio 4’s Today: “It’s important for people to understand that the retail sector doesn’t make huge profits, and most of the time I’ve been doing this job, they’ve been losing money.

“That’s because they’re exposed to the high gas prices that everyone else is, and they buy gas to sell to customers. Under the price cap they’re also limited in the profit they can make.”

She added that along with compulsory measure to support households “we also have our own voluntary commitments as a sector, and in the last year that provided £54 million of discretionary support, on top of the more than £2 billion worth of mandatory schemes”.

She called for green policy costs to be shifted from bills to general taxation to help ease the burden

“We’ve got record levels of debt amongst our consumers. It is, if anything, worse than any other time in the crisis,” she said.

“And so we’ve been advocating quick things to do, and we think a smart thing to do would be to move a portion of the policy costs off electricity bills into general taxation to rebalance some of the costs between electricity and gas, and to, lastly, double the warm homes discount.”

Keir Starmer attempts to recreate David Cameron’s 2010 deal

20:30

Salma Ouaguira

The prime minister is looking to recreate David Cameron’s 2010 deal with France during his European tour in Germany and France.

French president Nicolas Sarkozy at the time signed the The Lancaster House treaties in a bid to strengthen defense security with the UK.

Keir Starmer now wants to forge new agreements on defence and security with Berlin and France - with immigration and trade also on top of the agenda.

Sir Keir has faced pressure from the opposition over his move to reset relations with Europe.

But the PM previosuly reiterated he wil not reverse Brexit measures.

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Scottish Government as bad as Tories on finances, says Chancellor

20:00

Salma Ouaguira

Chancellor Rachel Reeves has said the Scottish government is “as guilty” as the previous Tory government on the country’s finances.

The chancellor was speaking during a visit to the National Manufacturing Institute Scotland near Renfrew, Renfrewshire, on Wednesday.

Experts at the Scottish Fiscal Commission (SFC) said on Tuesday that Scottish ministers may struggle to balance the country’s budget due to above-expectation public sector pay deals, the council tax freeze and benefit reforms, as well as uncertainty about the level of funding coming from Westminster.

While the Scottish government has attacked decisions made at Westminster for the country’s financial strife, the chancellor used her visit north of the border to hit back.

“The SNP government is as guilty as the Conservative government of spending more than they were bringing in, and now the Scottish Government are having to make difficult decisions,” she said.

“Anas Sarwar and the Labour opposition in Scotland were warning the SNP about the unsustainable position they were in.

“They SNP refused to listen, they made decisions that were not sustainable and now it is Scottish people who are paying the price for the decisions of the Scottish Government.”

Responding to the chancellor’s comments, First Minister John Swinney told the PA news agency during a visit to Stirling: “The Scottish government has balanced its budget for every single year – we have lived within the resources available to us.

“The problem we’ve got is that the UK government has not faced up to the reality of the pressures and the issues that have faced our public finances.”

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Editorial: Painful times lie ahead for Britain – and for Keir Starmer

19:50

Salma Ouaguira

Editorial: Gritty, glum, realistic – the prime minister’s keynote speech in the rose garden of No 10 held few surprises (and very little joy)

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Robert Jenrick slams £22 black hole claim was Labour’s ‘own making’

19:30

Salma Ouaguira

The former immigration minister and Tory leadership hopeful has accused the Labour party of making up claims about a £22 black hole left by the Tories.

Mr Jenrick told Sky News: “The black hole was one of Keir Starmer and Rachel Reeves’ own making. They’ve made political choices and I think they are selfish choices.

“They’ve chosen to spend £10bn a year paying off their union paymasters with excessive public sector pay for train drivers and others, and they’re choosing to spend £8bn on an energy company, a fantasy of Ed Miliband’s, that doesn’t even produce any energy.

“The political choices that they’ve made in just 53 days are bad choices. They’re doing this on the backs of middle class people, because they’re about to break their promises and hike taxes this autumn, and on the backs of our pensioners, for whom they’re removing their winter fuel allowances.”

Pictured: Keir Starmer and Olaf Scholz at the Chancellery in Berlin

19:00

Salma Ouaguira

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Jenrick says Tories need to make Farage’s Reform ‘redundant’

18:30

Salma Ouaguira

Tory leadership hopeful Robert Jenrick said he wants to put Nigel Farage’s Reform UK “out of business”.

He acknowledged the Conservatives have a mountain to climb following the party’s worst election result in history and said winning back voters from Reform will be a key challenge.

The former immigration minister said he wants to make Reform “redundant” by persuading its supporters he can address their concerns on the number of people coming to the UK.

“I know how damaged the party’s brand is, how difficult the present situation is for our party, but I want to begin the long road of turning that around,” Mr Jenrick told ITV’s Good Morning Britain.

“I acknowledge we have a mountain to climb, but the way to do that, I think, is to defend the good things we did in government, like on the economy – a decade of high employment – reforming our schools so our children are now amongst the most literate, but being honest about the mistakes that we made.”

He rejected the idea of a deal with Mr Farage, adding: “I don’t think Nigel Farage wants to join the Conservative Party. I don’t think that he needs to. I want to put Reform out of business. I want to make them redundant, because I want to have clear policies on legal and illegal migration.”

“What we need to do as a party is bring back those voters that we lost, the millions of voters we lost to Reform in the last election.

“And you do that by having a leader that has credibility on the issues that are of concern to Reform voters, and by adopting very clear positions, as I have done, not just in this leadership election, but for many months.”

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Labour donor backs Starmer over warnings things will get worse

18:00

Salma Ouaguira

Major Labour donor Dale Vince has said that Sir Keir Starmer’s warning that things could get worse before they get better has “a lot of truth” in it.

The Just Stop Oil and Greenpeace supporter told Sky News: “The inherent situation is worse than it looked on the other side of the election. I was reading just now that we’ve borrowed £5bn in the last few months because of our trade gap.

“On the other hand, inflation is down and the economy is growing, so it’s probably a bit of a mixed bag in there.”

Mr Vince defended Labour’s claim of a £22 black hole in public finances left by the Tories, adding: “The numbers don’t lie.”

Backing Labour’s means-test winter fuel payments, he added: “I think that we have to balance our approach to the economy and where we spend the money that we do have – and it is in limited supply – and there are millions of children in food poverty in our country.

“For me, that’s a bigger priority than people on pensions that aren’t on benefits, and therefore arguably need this top-up of energy bills less.”

Asked how he feels about Sir Keir’s attempt to improve relations with the EU, he added: “I’m a fan of the EU. I think it’s a force for good in the world. I think what they’re doing to regulate the very large digital platforms that can cause so much trouble and disruption in society, I think they’re doing a good job on that, for example.

“I think getting closer to the EU only makes sense. It’s the biggest trading bloc in the world, 600 million people, and it’s on our doorstep.”

Robert Jenrick warns Starmer against losing ‘Brexit benefits’ in deal with the EU

17:30

Salma Ouaguira

Tory leadership hopeful Robert Jenrick has warned the prime minister over giving away control during post-Brexit negotiations with Germany and France.

Sir Keir Starmer is in Berlin today seeking new deals on migration, security anf energy as part of his plan to reset relations with the EU.

The former immigration minister urged Sir Keir to use the new deals to boost the economy.

He told Sky News: “I am all for working with our friends and allies. What I do not want to see is seizing control. I don’t want us to be undermining NATO. I don’t want to see us lose the Brexit benefits that we should now be harnessing.

“We want to grow our economy by boosting resources of the future, like technology, financial services and life sciences.”

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PM brands Conservatives’ Rwanda plan a ‘gimmick' during Germany visit

17:00

Salma Ouaguira

Sir Keir Starmer has labelled the Rwanda plan – a Conservative-led former policy to remove some asylum seekers from the UK and send them to Kigali – a “gimmick”.

During a press conference in Berlin, he added: “Nonetheless, it is very important we take back control of our borders.

“I have long been convinced that the best way, the most effective way to do that is to take down the gangs that are running the vile trade of putting people in dangerous situations across Europe and across the Channel.”

German chancellor Olaf Scholz had previously said, according to a translation: “The state has to contain irregular immigration so as to not overburden the country.

“This can and must succeed without questioning our basic law and also international treaties.”

More than 500 migrants arrived in the UK on Tuesday after crossing the English Channel, according to Home Office data.

This took the provisional total crossings for 2024 so far to 19,820 – 0.1% higher than at the same point in 2023 (19,801) and 21 per cent lower than 2022 (25,065).

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‘No new decisions’ from UK or Germany on Ukraine’s use of weapons

16:40

Salma Ouaguira

Prime Minister Sir Keir Starmer and German chancellor Olaf Scholz have said there are “no new decisions” from either the UK or Germany as regards to the use of weaponry donated by both countries to Ukraine.

Speaking at a press conference in Berlin this morning, Sir Keir told reporters that he was not going to “get into tactical questions about the use of weapons” but there are “no new decisions” when asked if he and Mr Scholz had discussed lifting restrictions on weapons given to Ukraine that would allow them to be used inside Russian territory.

Sir Keir said: “We have been providing support and weaponry to Ukraine consistent with the approach of other key allies, including Germany.

“We supported the approach and the framework put forward by the previous government in the United Kingdom when we were in opposition, and we are acting consistently with that in Government and that’s why I’m very clear that no new or different decisions have been made.

“I’m not going to get into tactical questions about the use of weapons for very obvious reasons, but no new decisions have been taken.”

Mr Scholz also said that there are “no new decisions from Germany” on the matter and that the country is “going to continue” its support for Ukraine.

He said: “Germany is one of the very large supporters of Ukraine in Europe, within Europe, we are the largest contributor. We are going to continue this support.”

He added: “As far as weapon supplies are concerned, there are no new decisions from Germany.”

In pictures: Starmer visits Germany to negotiate ‘once in a generation’ treaty

16:20

Salma Ouaguira

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Truss hits back at claim she considered cutting all NHS cancer care

16:00

Salma Ouaguira

Liz Truss has denied a claim she considered scrapping all cancer treatment on the NHS in a bid to repair the damage caused by her disastrous economic policies.

A new biography of the former prime minister by Sir Anthony Seldon makes the extraordinary claim that in the immediate aftermath of the mini-Budget, Ms Truss and her chancellor Kwasi Kwarteng launched a desperate attempt to find spending cuts in an effort to restore stock-market confidence in their strategy.

Sir Anthony said a group of the prime minister’s aides met to discuss the issue. One of her senior advisers, Alex Boyd, “was told that Truss and Kwarteng were thinking they could still sort out the black hole with severe cuts”: “We’ve been told that they’re looking at stopping cancer treatment on the NHS.”

Read the full story below:

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Starmer unveils plan for ‘joint action’ with Germany on cross-Channel migration

15:45

Salma Ouaguira

Sir Keir Starmer has unveiled plans for “joint action” with Germany on cross-Channel migration, which could involve authorities intercepting boats in transit across Europe, en route to northern France.

After a bilateral meeting with German chancellor Olaf Scholz in Berlin, the Prime Minister said developing an action plan could help the countries “deal with issues like data sharing, intelligence sharing, what we can do on joint operations” both sides of the North Sea.

In a speech, Sir Keir vowed to “deepen co-operation on shared social challenges; for example, on illegal immigration, because we cannot smash the smuggling gangs who perpetrate this vile trade without the help of our partners”.

He added: “I’m really glad that we had substantive discussions today about how we tackle the smuggling gangs and agree to develop a joint action plan to tackle illegal migration.”

Asked about his discussions with Mr Scholz after the speech, the prime minister confirmed a returns agreement with Germany “wasn’t discussed today”.

He continued: “But the joint action plan was and that is important to me because, as I’m sure you’ll appreciate, quite a number of the boats that end up on the north coast of France carrying people across are coming through Germany, therefore, this isn’t a sort of remote action plan.

“It’s actually a concrete one because, as you’ve heard me say many, many times, I simply don’t accept that the people who are running this trade can’t be taken down, that they can’t be busted, and intercepting the boats as they are in transit across Europe and those that are moving them is an important part of that as far as I’m concerned.”

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Labour Party repeatedly failed to meet data protection obligations – watchdog

15:30

Salma Ouaguira

The UK’s data protection watchdog has taken action against the Labour Party for repeatedly failing to respond to people who asked what personal information the organisation held on them.

The Information Commissioner’s Office (ICO) issued a formal reprimand after it was revealed that the party had not complied with its legal obligations.

Under data protection law, anyone can ask an organisation for a copy of the personal information it is using or storing on them, known as subject access requests (SAR). You also have the right to check if your personal information is accurate, or for it to be updated or deleted.

Read the full story below:

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Keir Starmer in Paris

15:15

Salma Ouaguira

Sir Keir Starmer has wrapped up his visit to Germany and is now on his way to Paris where he will meet Emmanuel Macron tomorrow.

The prime minister’s breakfast meeting is expected to include representatives from companies including Thales and Sanofi, and Sir Keir will then meet Paralympians preparing for their competitions before meeting the French President at the Elysee Palace.

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Pictured: Rachel Reeves shakes hands with John Swinney in Glasgow

15:00

Salma Ouaguira

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Starmer leaves door open for youth mobility scheme with EU

14:54

Salma Ouaguira

The prime minister has left the door open for some fomr of youth mobility scheme with EU countries after a meeting with Olaf Scholz.

The German chancellor insisted his government is seeking closer ties with the UK during a press conference in Berlin.

During the event, Keir Starmer ruled out plans to join the European youth mobility scheme. He said: “Look, the treaty is a bilateral treaty, so that’s got nothing to do with youth mobility or anything like that. That’s to do with trade, defence, economy, illegal migration.

“In relation to youth mobility, obviously, we’ve been really clear – no single market, no customs union, no free movement, no going back into the EU. So the discussion about a close relationship within the EU or with the EU is in that context and within those frameworks.”

But speaking to reporters, he did not rule out creating a system for other types of student exchanges. He added: “We want a close relationship, of course, and I do think that can extend across defence, security, education and cultural exchange and, of course, trade.”

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More prisons will be built following changes to planning system, says Starmer

14:50

Salma Ouaguira

Sir Keir Starmer said more prisons will be built to manage overcrowding once the Government gets its “hands on the planning laws”.

Speaking to broadcasters in Berlin, the prime minister said the lack of prisons being built is one of the reasons for the current capacity crisis in jails across the UK.

During the general election campaign, one of Labour’s key pledges was to unblock the planning system to allow developers to build on the “grey belt”.

Sir Keir said: “We’ve got to change the planning regulation so we can build the prisons we need, because they’re taking far too long, it’s far too slow, and that’s amongst the reasons we’re in the position we are.

“And, as you’d expect from an ex-chief prosecutor, people do need to go to prison, and they need to know that the law is effective.”

Asked if he agrees with prisons minister James Timpson that the UK puts too many people in jail, Sir Keir replied: “I think (Mr Timpson) has got unparalleled experience in rehabilitation, and particularly those coming out of prison.

“I mean, he does employ a huge amount of people who come out of prison. His reason for doing that is to help them turn around their lives so they don’t go back straight into prison.

“Do I agree with him that, insofar as is possible, people come out of prison, we should give them the chance not to go back into prison? Yes, I do, and the more we can do on that, the better.

“I don’t think anybody would disagree with that, because the route back to prison involves another offence, which means another victim. If we can find a different approach for people, then all well and good. But, look, we need to build those prisons, and we will get our hands on the planning laws in order to do so.”

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Starmer accused of lacking ambition as he launches Brexit reset in Germany

14:40

Salma Ouaguira

Sir Keir Starmer has been criticised for lacking ambition in wanting to reset the UK’s relationship with the EU after he rejected free movement for under-30s even before talks got underway.

The prime minister made it clear he was not open to a deal on making it easier for young people from the UK and EU to travel when he held a joint press conference with German chancellor Olaf Scholz today.

Despite describing the renegotiation as “a once in a generation opportunity” there were concerns that he was not willing to be flexible on a proposal which is strongly supported in the EU.

Our political editor David Maddox has the full story:

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Man who threw items at Nigel Farage handed suspended prison sentence

14:38

Salma Ouaguira

Josh Greally, 28, has been given a suspended prison sentence at Barnsley Magistrates’ Court after throwing items at Nigel Farage during the General Election campaign.

He was sentenced to six weeks in prison, suspended for 12 months, and ordered to carry out 120 hours of unpaid work, 20 rehabilitation activity days and pay £85 court costs and a surcharge of £154.

Greally pleaded guilty to a public order offence over the incident on June 11 in Barnsley town centre where he threw what appeared to be a coffee cup and another object at the Reform UK leader, who was campaigning on the top deck of his battle bus.

Neither of the objects hit the politician.

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VOICES: Andrew Grice: The real story behind Starmer, Reeves and a very painful Budget...

14:30

Salma Ouaguira

Although they wouldn’t admit it, the model for the PM and his chancellor is less Tony Blair and Gordon Brown – and more David Cameron and George Osborne, writes Andrew Grice:

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Prime minister to attend Paris’ Paralympics opening ceremony

14:20

Salma Ouaguira

Sir Keir Starmer is expected to travel to Paris for the Paralympics opening ceremony this evening, before a breakfast meeting with French business leaders on Thursday morning, and a summit with President Emmanuel Macron at the Elysee Palace.

In Paris, the prime minister’s breakfast meeting is expected to include representatives from companies including Thales and Sanofi, and Sir Keir will then meet Paralympians preparing for their competitions before meeting the French President at the Elysee Palace.

Last month at the EPC summit held at Blenheim Palace, Sir Keir said the UK would be a “friend and a partner ready to work” with Europe, and that “we can only make progress on the issues that so many people care about, like illegal migration and national security, if we have the maturity and leadership to reach out a hand to our European friends”.

Pictured: Prime minister visits Siemens Energy factory in Germany

14:10

Salma Ouaguira

Sir Keir Starmer toured a Siemens Energy factory towards the end of his visit to Berlin.

He toured the factory with Siemens Energy chief executive Christian Bruch and factory head Thomas Bagus, who explained how the company extracted hydrogen from water using an electrolyser.

He also signed a part of an electrolyser stack, previously signed by Bill Gates.

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Starmer denies disagreements with Germany over youth mobility scheme

14:04

Salma Ouaguira

Sir Keir Starmer has denied that disagreements over a proposed youth mobility scheme will impact the UK-German treaty discussions as he reiterated his commitment to “clear red lines” with the EU post-Brexit.

Asked if the Chancellor Olaf Scholz’s desire for a youth mobility scheme would hamper negotiations, he told reporters in Berlin: “The treaty is a bilateral treaty, so that’s got nothing to do with youth mobility or anything like that.

“That’s to do with trade, defence, the economy, illegal migration, etc. In relation to youth mobility, obviously, we’ve been really clear: no single market, no Customs Union, no free movement, no going back into the EU.

“So the discussion about a close relationship with the EU is in that context and within those frameworks, I’m convinced, and I think you heard from the Chancellor himself, that we can have a closer relationship, notwithstanding those clear red lines that we’ve got, and we’ve always had.”

Asked if he was open to re-joining the EU study abroad scheme Erasmus, Sir Keir said: “None of the detail like that was discussed today because the focus was on the bilateral treaty that we want to develop.”

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In pictures: Keir Starmer visits German leaders in Berlin

14:00

Salma Ouaguira

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Downing Street draws up plans for announcing death of Larry the cat

13:40

Salma Ouaguira

Downing Street officials are preparing a “media plan” to announce the eventual passing of Larry the cat, The Independent understands.

Larry has become a widely loved fixture of Downing Street and is often seen outside the door to Number 10 during major political events and news broadcasts.

The 17-year-old ‘chief mouser’ is thought to be in his final years, having already outlived the average lifespan for a tabby cat.

Our political correspondent Millie Cooke has the full story:

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Scottish Government as bad as Tories on finances, says Chancellor

13:20

Salma Ouaguira

Chancellor Rachel Reeves has said the Scottish government is “as guilty” as the previous Tory government on the country’s finances.

The chancellor was speaking during a visit to the National Manufacturing Institute Scotland near Renfrew, Renfrewshire, on Wednesday.

Experts at the Scottish Fiscal Commission (SFC) said that Scottish ministers may struggle to balance the country’s budget due to above-expectation public sector pay deals, the council tax freeze and benefit reforms, as well as uncertainty about the level of funding coming from Westminster.

While the Scottish government has attacked decisions made at Westminster for the country’s financial strife, the chancellor used her visit north of the border to hit back.

“The SNP government is as guilty as the Conservative government of spending more than they were bringing in, and now the Scottish Government are having to make difficult decisions,” she said.

“Anas Sarwar and the Labour opposition in Scotland were warning the SNP about the unsustainable position they were in.

“They SNP refused to listen, they made decisions that were not sustainable and now it is Scottish people who are paying the price for the decisions of the Scottish Government.”

Responding to the chancellor’s comments, First Minister John Swinney told the PA news agency during a visit to Stirling: “The Scottish government has balanced its budget for every single year – we have lived within the resources available to us.”

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Oops! Has doomster Starmer realised he’s overdone the ‘things can only get worse’ mantra?

13:00

Salma Ouaguira

The prime minister dropped the phrase ‘rubble and ruin’ from his speech and tried to emphasise the things he is doing to fix the problems, writes John Rentoul – but will it work?

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Drivers warned to prepare for fuel duty rise

12:45

Salma Ouaguira

Drivers are being warned to expect a fuel duty rise in the Government’s forthcoming Budget.

The RAC issued the alert after Prime Minister Sir Keir Starmer said there was a £22 billion “black hole” in the public finances. A 5p per litre cut in fuel duty was introduced by the Conservative government in March 2022.

Before this, fuel level had been frozen at 57.95p since March 2011. VAT is charged at 20 per cent on top of the total price. RAC head of policy Simon Williams said Chancellor Rachel Reeves has “no option but to put fuel duty back up to 58p a litre in October’s Budget”.

He went on: “She knows the 5p discount is losing the Treasury £2 billion a year. She also knows drivers were overcharged by a staggering £1.6 billion last year according to the Competition and Markets Authority’s recent report.

“We’d normally be against any increase in duty, but we’ve long been saying drivers haven’t been benefiting from the current discount due to much higher-than-average retailer margins.

“As more and more electric vehicles come on to the roads, the Government will need to tax drivers differently.

“We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT. This would give retailers nowhere to hide.”

The RAC is calling on retailers to slash fuel prices to reflect lower wholesale costs.