UK politics live: Starmer vows to ‘turn corner’ on Brexit and reset broken UK-EU relationship left by Tories

PoliticsOpinion
28 Aug 2024 • 6:46 AM MYT
The Independent
The Independent

The world’s most free-thinking newspaper

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Sir Keir Starmer has promised to “turn the corner on Brexit” and restore the “broken” relationship with the EU left by the Tories.

The prime minister is visiting his European counterparts in Germany and France this week in an attempt to forge new partnerships.

Sir Keir vowed to continue the work he started at the European Political Community meeting last month and hold bilateral meetings to discuss illegal migration and economic growth.

He said: “We have a once-in-a-generation opportunity to reset our relationship with Europe and strive for genuine, ambitious partnerships that deliver for the British people.”

The move comes as the PM hinted at tax rises in the government’s first budget, warning it is “going to be painful”.

In his first keynote speech from Downing Street, he said those with the “broadest shoulders” will carry the heaviest burden, insisting taxes on “working people” including national insurance, VAT and income tax will not be increased in the 30 October budget.

Rishi Sunak claimed the keynote speech was an indication of Labour’s plan to “raise taxes”.

Key Points

  • Starmer hints at tax rises and warns October Budget will be ‘painful’
  • IFS warns Labour government faces ‘difficult and complex choices'
  • Union chief: ‘Bleak vision of Britain is not what we need now’
  • Conservatives warn ‘working families are next in line for Labour’s tax hikes'
  • Sunak: 'Starmer’s speech clear indication Labour planning to raise taxes’

Keir Starmer aims for post-Brexit deal in six months

23:49

Andre Langlois

Keir Starmer is set to launch his great Brexit reset with what he admits is “a once-in-a-generation opportunity” to fix the harms caused by leaving the European Union, write David Maddox and Millie Cooke.

The prime minister will hold a summit with German chancellor Olaf Scholz in Berlin on Wednesday, aimed at boosting business and trade, deepening defence and security cooperation, and increasing joint action on illegal migration.

However, the negotiations with the most influential and powerful member state in the EU are the first step in recalibrating Britain’s deal with the EU in a range of areas including trade and cross-border cooperation.

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Martin Lewis urges Labour to ‘rethink’ Winter Fuel Payment changes for pensioners

23:30

Salma Ouaguira

Money guru Martin Lewis has hit out at the government’s changes to Winter Fuel Payments as he reacts to Ofgem raising their energy price cap from October.

Writing on Twitter / X, the Money Saving Expert founder says minister “must rethink” the changes to the payments, or else leave all pensioners with hundreds of pounds more to pay this winter.

In July, chancellor Rachel Reeves announced the eligibility for the annual winter payments worth up to £300 would be changed for the first time since their introduction in 1997. The cold weather benefit will now only be eligible for older people who claim Pension Benefit, rather than all above pension age.

Read the full story below:

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Starmer expected to meet German Chancellor Olaf Scholz in Berlin

23:00

Salma Ouaguira

Sir Keir Starmer is expected to say on the trip that “we must turn a corner on Brexit” and will meet German Chancellor Olaf Scholz in Berlin to launch negotiations on a new treaty aiming to boost business and increase joint action on illegal migration.

He will tell Mr Scholz that he is focused on making sure the UK moves past Brexit and rebuilds relationships with European partners.

It is expected the prime minister will tell Mr Scholz that he is focused on making sure the UK moves past Brexit and rebuilds relationships with European partners.

The UK’s negotiation team will spend the next six months working on the treaty with Germany, aiming to agree a partnership by early 2025.

Sir Keir and Mr Scholz are also expected to discuss joint action to tackle illegal migration, including further intelligence sharing to intercept and shut down organised immigration crime rings.

The prime minister will also reiterate his personal condolences to the German people following the attack in Solingen on Friday, where three people died.

While he is in Berlin, the PM is also expected to meet German President Frank-Walter Steinmeier and the chief executive of Siemens Energy, Dr Christian Bruch.

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Starmer vows to ‘turn corner on Brexit’ and reset EU-UK relationship

22:30

Salma Ouaguira

Sir Keir Starmer has promised to finally “turn a corner on Brexit” and forge a new relationship with the EU.

The prime minister is set to go on a European tour and visit Germany and France this week.

The PM said: “We have a once in a generation opportunity to reset our relationship with Europe and strive for genuine, ambitious partnerships that deliver for the British people.

“We must turn a corner on Brexit and fix the broken relationships left behind by the previous government. That work started at the European Political Community meeting last month, and I am determined to continue it, which is why I am visiting Germany and France this week.

“Strengthening our relationship with these countries is crucial, not only in tackling the global problem of illegal migration, but also in boosting economic growth across the continent and crucially in the UK – one of the key missions of my government.”

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Starmer defends winter fuel payment cuts amid ‘health emergency’ warning

22:00

Salma Ouaguira

Sir Keir Starmer has defended stopping all pensioners receiving the winter fuel payment, amid warnings it could create a “public health emergency”.

The prime minister used a speech in Downing Street’s rose garden to claim he “didn’t want to means-test” the payment, but said it was a “choice we had to make” to help “repair the public finances”.

The government’s policy will stop winter fuel payments for people in England and Wales who are not in receipt of Pension Credit or other means-tested benefits.

That policy is expected to reduce the number of pensioners in receipt of the up to £300 payment by 10 million, from 11.4 million to 1.5 million, saving some £1.4 billion this financial year.

Sir Keir said there is a need to be “honest with people about the choices that we face”, adding: “Things will get worse before they get better.”

He said: “I didn’t want to means-test the winter fuel payment, but it was a choice that we had to make, a choice to protect the most vulnerable pensioners while doing what is necessary to repair the public finances.”

Charity Age UK said it “strongly” opposes means-testing the payment because it means “as many as two million pensioners who badly need the money to stay warm this winter will not receive it and will be in serious trouble as a result”.

Told about this warning, Sir Keir said: “So far as the winter fuel allowance is concerned, firstly I would say it’s not a particularly well-designed scheme, frankly – I think everybody would concede that.

“I do think it’s important that we make sure the support is there for those pensioners who need it most, which is why we’re pushing for the Pension Credit to be taken up and looking at other allowances.”

Labour scraps £40m private helicopter service favoured by Rishi Sunak

21:30

Salma Ouaguira

Labour has reportedly axed the private helicopter service favoured by Rishi Sunak to save the taxpayer £40million.

The “grossly wasteful” contract was scrapped by defence secretary John Healey just weeks after coming into office.

In 2023, Mr Sunak reversed an initial decision to stop leasing the two Augusta Westland helicopters.

Our political correspondent Millie Cooke has the full story:

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Oasis reunion will give ‘supersonic’ economic boost to UK, say business groups

21:00

Salma Ouaguira

Oasis’ newly announced tour marks one of the most long-awaited reunions in music – and businesses near the gig venues will be almost as excited as fans, experts say.

The Britpop band, led by brothers Liam and Noel Gallagher, have announced a series of tour dates spanning London, Manchester, Cardiff, Edinburgh and Dublin next summer.

Thomas Pugh, economist at RSM UK, said the tour will “undoubtedly be a phenomenal sellout, which will also cause a spike in demand for accommodation and hospitality in those cities lucky enough to be hosting a gig.

“This potentially presents a very profitable opportunity for the hospitality industry, especially hoteliers.

“For example, Taylor Swift and the Foo Fighters saw hotel prices in Cardiff, which will also host an Oasis gig, rise by up to 500%.”

It comes after Taylor Swift’s Eras tour was cited by some finance experts for boosting restaurants and hotels in the cities where she performed this summer, partly as a result of inbound tourism for the dates.

Research by analysts from Barclays predicted earlier this summer that the pop star could bring a £1 billion boost to the UK.

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In full: Starmer warns of ‘really painful’ budget to ‘fix rot’ left by Tories

20:30

Salma Ouaguira

Sir Keir Starmer has admitted that the country is set to be hit with “a very painful budget” in October as his new Labour government tries to “fix the rot” left by the Tories.

Speaking to a group of 50 voters and supporters in the Downing Street rose garden, the prime minister hinted at more spending cuts and tax rises to come as his party attempts to close a £22 billion black hole they claim to have found in the public finances.

He warned “things are worse than we ever imagined” because of a £22 billion “black hole” in the public finances, claiming to have found out last week that the Tories had borrowed almost £5 billion more than the Office for Budget Responsibility expected.

Our political editor David Maddox has the full story:

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Starmer says rioters ‘exploited broken prisons system’

20:00

Salma Ouaguira

Rioters were betting on the broken prisons system, Sir Keir Starmer said, as he claimed those behind the recent unrest following the fatal Southport stabbings “exploited” the capacity crisis.

In July this year, the Labour Government set out legislation to reduce the amount of time inmates must spend in jail before they are automatically released, from 50% of their sentence to 40%, in a bid to manage overcrowding.

The Prime Minister has now claimed the early release scheme was an essential part of the Government’s response to the riots and its ability to prosecute perpetrators of the violence.

Sir Keir added that the decision to release prisoners early was difficult and “goes against the grain of everything I’ve ever done”, referring to his former role as chief prosecutor.

In a speech from Downing Street’s rose garden on Tuesday, he said: “Every day of that disorder, literally every day, we had to check the precise number of prison places and where those places were to make sure we could arrest, charge and prosecute people quickly.

“Not having enough prison places is about as fundamental a failure as you can get and those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken, they were betting on it, gaming it.

“They thought: ‘Ah, they’ll never arrest me and if they do, I won’t be prosecuted, and if I am, I won’t get much of a sentence.’

“They saw the cracks in our society after 14 years of failure and they exploited them. That’s what we’ve inherited. Not just an economic black hole, a societal black hole, and that’s why we have to take action and do things differently.”

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Watch in full: Starmer vows Labour will reverse ‘failure’ of Tories

19:30

Salma Ouaguira

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Labour had to check ‘every day’ prison overcrowding numbers

19:00

Salma Ouaguira

Sir Keir Starmer said in 2011 he did not doubt that the courts could respond to the riots as needed, saying: “This time, to be honest with you, I genuinely didn’t know.

“Every day of that disorder, literally every day, we had to check the precise number of prison places and where those places were to make sure we could arrest, charge and prosecute people quickly.

“Not having enough prison places is about as fundamental a failure as you can get and those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken, they were betting on it, gaming it. They thought ‘Ah, they’ll never arrest me and if they do, I won’t be prosecuted, and if I am, I won’t get much of a sentence’.

“They saw the cracks in our society after 14 years of failure and they exploited them. That’s what we’ve inherited. Not just an economic black hole, a societal black hole and that’s why we have to take action and do things differently.”

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Labour to extend vital Household Support Fund as Reeves under pressure

18:30

Salma Ouaguira

Labour is set to extend a hardship fund for struggling households in England after campaigners call the money a “lifeline” for thousands.

Ministers will announce that the Household Support Fund will be extended for a fifth time, Whitehall officials told the Financial Times, taking the funding beyond its current September 30 cut off date.

The Household Support Fund provides local councils with a share of £500 million over a period of six months. Each authority is free to allocate funds however they feel is best to help struggling households in their area.

Read the full story below:

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PM warns ‘things are worse than we ever imagined'

18:00

Salma Ouaguira

Sir Keir Starmer said “things are worse than we ever imagined”, telling a press conference: “In the first few weeks we discovered a £22 billion black hole in the public finances and before anyone says ‘Oh this is just performative or playing politics’ let’s remember the OBR (Office for Budget Responsibility) did not know about it, they wrote a letter setting that out.

“They didn’t know because the last government hid it and even last Wednesday, just last Wednesday, we found out that thanks to the last government’s recklessness we borrowed almost £5 billion more than the OBR expected in the last three months alone. That’s not performative, that’s fact.”

The Prime Minister went on to say a “mindless minority of thugs” thought they “could get away with causing chaos” during the riots, saying: “Now they’ll learn that crime has consequences, that I won’t tolerate a breakdown in law and order under any circumstances and I will not listen to those who exploit grieving families and disrespect local communities.

“But these riots didn’t happen in a vacuum, they exposed the state of our country, revealed a deeply unhealthy society, the cracks in our foundations laid bare, weakened by a decade of division and decline, infected by a spiral of populism which fed off cycles of failure of the last government.

“Every time they faced a difficult problem they failed to be honest, they offered the snake oil of populism which led to more failure – round and round and round. Stuck in the rut of the politics of performance.”

Conservatives slam Oasis reunion under Labour

17:30

Salma Ouaguira

Starmer: ‘We’ve done more in seven weeks than the Tories did in seven years’,

17:00

Salma Ouaguira

Sir Keir Starmer has claimed that his Government has done more in seven weeks than the Tory government did in seven years.

In a speech from Downing Street’s rose garden, the Prime Minister said: “I said before the election, and I say it again really clearly today, growth – and frankly, by that, I do mean wealth creation – is the number one priority of this Labour Government.

“And that’s why in our first few weeks, we’ve set up the National Wealth Fund because we want every person and every community to benefit.

“It’s why we’ve unlocked planning decisions, because we’re going to build 1.5 million new homes. It’s why we set up Great British Energy, to create good jobs and cut people’s bills. And it’s why we ended the national strikes that have crippled our country for years.

“Because I defy anyone to tell me that you can grow the economy when people can’t get to work, because the transport system is broken, or can’t return to work because they’re stuck on an NHS waiting list.

“We’ve done more in seven weeks than the last government did in seven years. And these are just the first steps towards the change that people voted for, the change that I’m determined to deliver.”

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Act now to replace cladding, author of Grenfell report says

16:30

Salma Ouaguira

Urgent action is needed to replace dangerous cladding in the wake of a major fire at a tower block in east London, the author of a report into the Grenfell Tower disaster has warned.

Dame Judith Hackitt, who led a government review on building safety after the deadly Grenfell Tower fire in 2017, said it is “really concerning” that so many people are still living in uncertainty and fear about their homes and that it was “very lucky” nobody died in Monday’s blaze.

Fire ripped through the tower block in Dagenham, which was undergoing “remedial” work to remove and replace “non-compliant cladding” on the fifth and sixth floors containing flats, according to a planning application document.

Speaking to BBC Radio 4’s Today programme, Dame Judith criticised those who have been “passing the buck” on the issue of fixing buildings seven years on from the Grenfell fire, which killed 72 people.

Our political correspondent Millie Cooke has the full story:

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Labour warned UK could see rioting again over pensions age increase

16:10

Salma Ouaguira

An expert has warned the Labour government over plans to rise the retirment age for state pension eligibility to 71.

Sir Keir Starmer has been urged to stop the move or the nation could see rioting in the streets again if the pension age is raised again.

Andrew Oxlade - director at investment fund managers Fidelity International - suggested such moves could lead to civil unrest.

He told The Herald: “Consider, for instance, the violent pensions protests that have repeatedly erupted in France and the Russian demonstrations of 2018.”

It comes as chancellor Rachel Reeves is under spiralling pressure to increase tax thresholds as pensioners could be forces to pay income tax.

Summary: Key takeaways from Sir Keir Starmer keynote speech in No 10

16:01

Salma Ouaguira

Sir Keir Starmer has now finished his keynote speech from Downing Street rose gardens. The prime minister addressed the nation ahead of parliament return next week.

Here’s the key takeaways from the major speech:

  • Sir Keir Starmer has warned that the Government’s Budget will be “painful” as he asked the country to “accept short-term pain for long-term good”.
  • The prime minister drew parallels between the clean-up of the riots, and the work his Government is proposing to improve the country.
  • He said his government has done more in seven weeks than the Tory government did in seven years.
  • The PM warned “Things are worse than we ever imagined” as Labour discovered a £22 billion black hole in the public finances.
  • He blamed the Conservative government of having “relied on easy gimmicks and bad ideas”.
  • Sir Keir said he will not shy away from making “unpopular decisions” following criticism of his plans to impose restrictions on winter fuel payments.
  • He said there is a need to be “honest with people about the choices that we face”.

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

15:50

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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Cleverly accuses Starmer of ‘rolling out dishonest policies'

15:35

Salma Ouaguira

Shadow home secretary James Cleverly has accused Sir Keir Starmer of “rolling out dishonest policies”, following the Prime Minister’s speech earlier today.

Mr Cleverly, who is running to be leader of the Tory Party, said: “More meaningless drivel from Keir Starmer today as he tries to distract from his latest cronyism row.

“He says he wants to serve people; all he is serving them are tax rises.

“The Conservatives left Labour with low inflation, falling migration, and the highest growth in the G7. Yet the Labour government have waged war on pensioners, caved to their union paymasters and splurged millions of pounds of taxpayers’ money on unaffordable pay rises for strikers.

“Keir Starmer was elected on a manifesto that he won’t stick to, and he is now rolling out a series of dishonest policies for which he has no democratic mandate.”

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Child in wheelchair among migrants arriving in UK after crossing English Channel

15:20

Salma Ouaguira

A child in a wheelchair appears to be part a group of migrants who were brought ashore in Dover after crossing the English Channel.

Pictures show men, women and children wearing life jackets and blankets disembarking from a Border Force vessel at the Kent port on Tuesday.

They are the first arrivals in a week since 206 people made the journey on 19 August, according to Home Office figures.

A total of 19,294 people had arrived in the UK after crossing the Channel as of August 26, two per cent lower than the same point in 2023 (19,741) and 20 per cent lower than in 2022 (24,153).

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Starmer warns ‘things worse than we ever imagined’ in first key speech as prime minister

15:05

Salma Ouaguira

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What did Starmer say about far-right riots and prison overcrowding?

14:55

Salma Ouaguira

Sir Keir Starmer said the government had to revise prison overcrowding numbers “literally every day” to “arrest, charge and prosecute” those involved in recent riots across parts of the UK.

During his keynote speech in Downing Street this monring, he said: “Not having enough prison places is about as fundamental a failure as you can get and those people throwing rocks, torching cars, making threats, they didn’t just know the system was broken, they were betting on it, gaming it.

“They thought ‘Ah, they’ll never arrest me and if they do, I won’t be prosecuted, and if I am, I won’t get much of a sentence’.

“They saw the cracks in our society after 14 years of failure and they exploited them.”

Justice Secretary Shabana Mahmood previously unveiled plans to release prisoners after having served 40 per cent of their sentence instead of 50 per cent to ease prison overcrowding.

Boris Johnson longest serving PM and Liz Truss shortest serving one since 1900

14:45

Salma Ouaguira

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Liz Truss considered scrapping all NHS cancer treatment after crashing economy, book claims

14:45

Salma Ouaguira

The former prime minister considered scrapping all cancer treatment on the NHS in a desperate bid to repair the damage caused by her disastrous economic policies, according to a new book.

The extraordinary claim is made in a new biography of Ms Truss by Sir Anthony Seldon.

Sir Anthony, who is Britain’s leading political biographer, also states that Ms Truss’s allies feared her team could be targeted with a “cocaine” smear by unnamed figures at Tory HQ who wanted to stop her from becoming prime minister.

Sir Anthony’s book, Truss at 10: How Not to Be a Prime Minister, is deeply critical of Ms Truss, who was forced to resign in 2022 after she triggered an economic crisis by proposing the introduction of £45bn of unfunded tax cuts. She spent only 49 days in office.

Read the full story below:

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SNP: Westminster choices will fundamentally damage Scottish public services

14:35

Salma Ouaguira

Choices made by the UK government will “fundamentally damage” the ability of the Scottish government to deliver public services, the country’s Finance Secretary has said.

During the recent general election campaign, the SNP was one of the loudest voices warning of a black hole in UK public finances which would likely result in service cuts or tax rises, as a result of projections from the Institute for Fiscal Studies (IFS).

In a statement, Shona Robinson said: “The prime minister’s speech this morning is a watershed moment in UK politics.

“Before Labour entered office, we and many others repeatedly warned that they were concealing the significant cuts they would have to make as a result of sticking to the Tory fiscal rules – and now, they are no longer able to hide from the reality.

“The political choices being made by the new UK government will fundamentally damage our ability to deliver public services in Scotland.

She added: “While clearly the legacy of the Tory government, Labour must accept at least some of the culpability for the mess that the UK is now in.

“In opposition, they rowed in behind many of the Tory decisions that have damaged the economy and hurt living standards – whether that is Brexit, austerity spending cuts or attacks on the welfare state.”

Bahraini crown prince congratulates Starmer for keynote speech

14:20

Salma Ouaguira

The Crown Prince and prime minister greeted each other in front of Number 10 before stepping inside.

The pair shook hands again in front of the Bahraini and UK flags, as Sir Keir Starmer welcomed Salman bin Hamad Al Khalifa to Downing Street.

“Obviously, there’s a long, very important history between our countries which we’re very proud of and very keen to build on,” Sir Keir said.

The crown prince replied: “Thank you for taking the time to see myself and my delegation.

“I would like to congratulate you on your speech today, laying out a very ambitious roadmap for the future.”

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IFS warns Labour government faces ‘difficult and complex choices'

14:05

Salma Ouaguira

The director of the Institute for Fiscal Studies (IFS) has said the Labour government has given itself “deep problems” afrer ruling out so many potential tax increases.

Speaking to the BBC, Paul Johnson said the government has been left with “difficult and complex choices”. Labour promised it will not increase income tax, National Insurance or VAT during the general election campaign.

But Mr Johnson siad direct taxes on working people are “the lowest they’ve been in fifty years”.

He added: “Trying to significantly increase taxes without impacting that group of people will be very complex and potentially have some negative economic consequences,” he adds.

The economist said the “overall picture” over the next four or five years is “very similar to what we knew”.

Jeremy Corbyn slams Starmer for ‘inflicting pain and poverty across the country'

13:55

Salma Ouaguira

Jeremy Corbyn and four other independent MPs have criticised Sir Keir Starmer for “choosing to inflict pain and poverty across the country”.

The former Labour leader, Shockat Adam, Adnan Hussain, Ayoub Khan, Iqbal Mohamed have called out the prime minister following his recent Downing Street speech this morning.

In a statement, they said: “The government said it would lower energy bills. It cut winter fuel allowence for pensioners instead. The government said it wanted to reboot our economy. It wants to cut public inverstment instead. The government said it would put an end to 14 years of Tory failure. It voted to keep the two child benefits cap instead.

“We refuse to accept that poverty is inevitable in the sixth largest economy in the world. There is plenty of money. It’s just in the wrong hands.

“The government should stand up to greedy profiteers by ending the privatisation of our water, energy, mail and healthcare. It should keep the winter fuel allowance for all pensioners. And it should introduce wealth taxes to end child poverty aand rebuild our public services.

“It was a political decision to starve our public services of resources. And it will be a political decision to repeat this failed economic experiment.

“A tough choice is deciding whether to heat your home or put food on the table. Austerity is not a tough choice. It is the wrong choice. The right choice is investing in communities to bring about the real change our constituents need, demand and deserve.”

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Kemi Badenoch says Starmer ‘taking the British public for fools’ in speech

13:45

Salma Ouaguira

Shadow housing secretary Kemi Badenoch has said Sir Keir Starmer’s speech this morning shows he is “taking the British public for fools”.

The Tory leadership hopeful said: “Keir Starmer is taking the British public for fools, but his dishonest analysis won’t wash.

“He campaigned on promises he couldn’t deliver and now he is being found out.”

The MP for north west Essex is considered the frontrunner to replace Rishi Sunak in a recent YouGov poll.

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Pictured: Crown Prince of Bahrain Salman bin Hamad Al Khalifa in No 10

13:35

Salma Ouaguira

Crown Prince of Bahrain Salman bin Hamad Al Khalifa has arrived in Downing Street.

Three Range Rovers are stationed outside Number 10 while the bilateral meeting takes place.

The Crown Prince and prime minister Sir Keir Starmer are set to discuss heightened tensions and conflict in the Middle East, and trade and investment.

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Retailer sales drop for third month in a row, says CBI

13:25

Salma Ouaguira

Retail sales fell for the third consecutive month in August although the rate of the downturn eased back, according to the latest data.

The Confederation of British Industry’s (CBI) latest Distributive Trades Survey pointed to continued weakness in the retail sector.

The survey question deducts the number of firms saying they reported a decline in sales from the number reporting growth for the period. On Tuesday, the latest report’s headline retail sales balance hit -27% for the month, as significantly more retailers witnessed a dip in sales.

However, it represented an improvement, following a balance of -43% in July. Retailers told the industry body they still expect overall decline in September, but indicated the rate of decline will slow down further.

Firms surveyed said that sales for the time of year were “poor” in August, with sales volumes likely to remain depressed next month. As a result, retailers expect to reduce investment in the next 12 months.

Employment in the retail sector also declined for the eighth consecutive quarterly survey, with a balance of -25% showing that more firms are cutting staff numbers rather than taking on extra employees.

In full: Starmer says ‘process and procedure matter’ amid cronyism row

13:10

Salma Ouaguira

Sir Keir Starmer has said “process and procedure and doing things properly matters” to him amid allegations of cronyism.

The Prime Minister is battling the accusations after Lord Alli – who has donated more than £500,000 to Labour over the past 20 years and provided clothing, “multiple pairs of glasses” and accommodation for Sir Keir – was given a pass to Number 10, despite not having a formal job there.

Responding to Sir Keir’s speech in the Downing Street garden on Tuesday, Conservative shadow Treasury minister Laura Trott accused the Labour administration of “hypocrisy on stilts”.

Asked about Lord Alli, a Labour peer since 1998, and allegations of cronyism, the Prime Minister told the press: “These allegations and these accusations are coming from the very people that dragged our country down in the first place, so you’ll forgive me if I take that approach to it.

“We are going to fix the foundations, we’ve got to do it at speed and I’m determined to have the right people in the right places to allow us to get on with that job.

“I’m enormously aware of how big a task this is and how we have to move at pace, and that’s why we’re getting the best people into the best jobs.

“But I’m not really going to take lectures on this from the people who dragged our country so far down in the last few years.”

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Starmer praises clean-up of far-right riots

12:55

Salma Ouaguira

The prime minister drew parallels between the clean-up of the riots, and the work his Government is proposing to improve the country.

Sir Keir Starmer said: “We can get through this together, because the riots didn’t just betray the sickness, they also revealed the cure, found not in the cynical conflict of populism, but in the coming together of a country.

“The people who got together the morning after, all around the country, with their brooms, their shovels, their trowels and cleared up their community, they reminded us who we really are. I felt real pride in those people who cleaned up our streets, rebuilt the walls, repaired the damage.

“And I couldn’t help thinking about the obvious parallels, because imagine the pride we will feel as a nation when after the hard work of clearing up the mess is done, we have a country that we have built together, built to last, that belongs to every single one of us, and all of us have a stake in it.

“Our hard work rewarded a dozen times over, because we’ll have an economy that works for everyone, an NHS not just back on its feet, but fit for the future, streets that everyone feels safe in, no longer dependent on foreign dictators, because we’re producing our own clean energy right here and giving every child, wherever they come from, whatever their background, the chance to go as far as their talents will take them.”

“Let’s fix it together,” he concluded.

Charity warns older people to dace ‘highest energy bills’ after winter fuel payment cuts

12:40

Salma Ouaguira

A charity has warned that Sir Keir Starmer’s cut on winter fuel payment will bring higher energy bills for already struggling older people.

Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “The Winter Fuel Payment axe is not about rot in the system, it is about basic fairness for older people facing soaring energy bills.

“In real terms, the changes this winter mean that some older people will face the highest energy bills on record. This has the potential to create a public health emergency which will actually create more pressure on the under-pressure NHS which the Prime Minister says he wants to fix.

“The impact of living in cold damp homes is particularly harsh on those older people with a disability, a long term health condition or with poor mental health. It results in people turning to an NHS and, in some cases, can result in additional winter deaths.

“Ending energy debt, extending the Household Support Fund, expanding Warm Home Discounts and evolving standing charges are all now needed urgently to help mitigate the impact of high bills and the axe to the Winter Fuel Payment.

“But as well as support this winter, the public need to see a clear timetable for when the very real benefits of cheaper renewable energy and the Warm Homes Plan will kick in.

“If the Prime Minister needs to find some ‘broad shoulders’ to pay for this support, let’s not forget that every month we hear about more massive profits for firms in the wider energy industry.”

Greens: The public did not vote for Labour to endure ‘more economic pain'

12:25

Salma Ouaguira

Green party co-leader Carla Denyer has said that people did not vote for labour to get more “economic pain” and urged the party to create a bolder economic agenda to improve people’s lives.

Reacting to Sir Keir Starmer’s speech, she said: “Enduring more economic pain and hardship isn’t what people voted for. They were told they were voting for change. Not voting for things to get worse before they get better. Labour needs to be honest about the fact that they could choose to make things better for everyone if they were bolder and braver.

“What is being framed as tough choices is actually about political choices. People don’t need a constant reminder that the Tories broke Britain. They need a new approach, not misguided fiscal rules that are set to make things worse.

“We must generate the funds needed for investment by shifting the burden away from the poorest onto the wealthiest. Labour’s refusal to tax the super-rich shows that business as usual is very much still in business.

“Keir Starmer says the violent riots earlier this month exposed a deeply unhealthy society. But the health of a society can’t be improved if it is forced to swallow the same failed medicine. The government can choose to provide the investment our communities are crying out for. This would help create hope and unleash the goodness of people to improve their communities.”

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Sunak: 'Starmer’s speech clear indication Labour planning to raise taxes’

12:10

Salma Ouaguira

Tory leader Rishi Sunak has claimed Sir Keir Starmer’s keynote speech this morning was an indication of Labour’s plan to “raise t