Starmer vows to press on with welfare reform as he takes blame for U-turn
But he added his Government would 'come through it stronger' as he vowed to 'reflect' on what needed to be done 'to ensure we don't get into a situation like that again'.
Despite the setback, which saw changes to the personal independence payment (Pip) stripped out of his welfare legislation, Sir Keir said on Thursday his Government was 'pressing on with welfare reform'.
Answering questions at the launch of Labour's NHS plan, he said: 'It is important we reform the system. Welfare isn't working.'
The Prime Minister went on to praise disabilities minister Sir Stephen Timms, who is now leading a review of Pip, saying he was 'a thoroughly decent man of huge integrity that we can have faith in to do the review and make the changes that are necessary'.
Sir Keir's U-turn saw planned changes to Pip eligibility put off until after Sir Stephen has completed his review of the benefit next autumn, leaving only changes to universal credit to go forward.
That decision has caused a fiscal headache for Chancellor Rachel Reeves, with the £4.8 billion of savings the reforms were expected to deliver now unlikely to materialise.
Economists have warned that this is likely to mean further tax rises in the autumn, and the Prime Minister did not rule out the possibility on Thursday.
Ms Reeves has previously promised she would not need to repeat the £40 billion tax raid she set out in October 2024.
Asked if he would repeat that commitment, Sir Keir said: 'No prime minister or chancellor is going to write a budget in advance, but we did really tough stuff in that budget last year.'
But he added that last year's budget had already done much of the 'heavy lifting' on repairing the public finances.
The Chancellor also declined to 'speculate' about tax rises ahead of the budget, but told broadcasters there was 'a cost to the welfare changes that Parliament voted through this week and that will be reflected in the budget'.
Ms Reeves herself appeared alongside Sir Keir and Health Secretary Wes Streeting at the launch of the NHS plan on Thursday, a day after she had appeared visibly tearful in the Commons during Prime Minister's Questions.
The Chancellor told broadcasters it had been related to a 'personal issue', while Sir Keir gave her his full backing, adding: 'I think it's just fantastic she's here and, as I say, none of this would be happening if she hadn't taken the decisions that she's taken.'
Questions about the Chancellor's future had sparked a sharp fall in the value of UK government bonds on Wednesday, but the markets rallied on Thursday morning following repeated reassurances she was safe in Number 11.
But Conservative shadow chancellor Sir Mel Stride said the scenes in the Commons over the past week had left bond markets 'twitchy' about the Government and 'their ability to actually grip things like spending going forward'.
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Business News Wales
40 minutes ago
- Business News Wales
Can the Housing Industry Follow Bold Leadership?
The Welsh Government launched Tai ar y Cyd earlier this year, an ambitious initiative aimed at increasing the supply of quality, sustainable, and affordable homes. David Dwyer from window manufacturer NorDan UK, explains why he's backing Tai ar y Cyd to boost investment in quality. With plans to deliver 20,000 quality, sustainability-focused homes over five years, Tai ar y Cyd is an ambitious collaboration between Welsh social landlords, government, and industry. The initiative brings together twenty-three social landlords with the aim of delivering more 'affordable, high-quality homes for future generations' – homes that can meet the high standards of low-carbon performance and drive down resident energy bills. This will be achieved through a unique, standardised pattern book that includes layouts for fifteen house types, plus eighteen variants that range from 1-bedroom flats to 4-bedroom houses, and other features such as fully wheelchair-accessible homes. The goal is to benefit residents, communities and the environment by setting clear energy efficiency, affordability, and long-term sustainability standards from the outset. Pictures by Rob Norman HayMan Media Moving forward, these new homes will be designed to meet Welsh Development Quality Requirements and Welsh Housing Quality Standards and will embrace cutting-edge building techniques and natural materials, including timber. It marks an important step toward a more energy-efficient and unified future for social and affordable housing in Wales – one that should enhance the quality of life for future generations and give residents greater protection from the ever-looming peril of fuel poverty. It's encouraging to see the Welsh Government taking a long-term view – something both NorDan UK and I strongly support. By prioritising investment in quality and longevity, they are also disincentivising the short-term temptation of cheaper material options, which often prove to be a false economy over time. Founded in Norway almost a century ago, NorDan has established a reputation across Europe for manufacturing high-performance, low-carbon timber windows and doors with a lifespan of 60 years or more. Although demand for NorDan's products in social housing continues to grow, this level of quality will always come at a higher capital cost. Understandably, this can initially deter some social landlords who are focused on delivering as many homes as possible within tight development budgets. At the same time, Wales, like many European countries, suffers from a chronic shortage of quality affordable homes, and there is a clear need to increase supply. It's hard for people of all ages to access the housing ladder, and long waiting lists for social homes has left thousands of individuals and families languishing in temporary accommodation. Our ageing, leaky housing stock is also clear evidence of past mistakes. UK homes are the least energy efficient in Northern Europe, while domestic energy prices are among the highest on the continent. This has led to a perfect storm that has hit many of our lowest-income homes disproportionately, and something that we must avoid in the future. In other nations and markets, NorDan has witnessed and demonstrated how strong government leadership combined with collective collaboration can be crucial in setting a new, and more positive path in housing. That is certainly how I see Tai ar y Cyd. Positive leadership. By encouraging decision-makers to measure and scrutinise the whole-life value of the building products and materials they use, I'm convinced that most will understand and embrace the longer-term benefits and savings. Such is NorDan's confidence in the direction Wales is heading, that we've opened a new showroom and headquarters at Cardiff Gate Business Park. We have also invested in a new Wales-based team dedicated to addressing the specific housing needs of the nation. Finally, for those keen to experience a living example of the pioneering levels of quality and innovation we're striving for, I recommend visiting the new 144-home village at Gwynfaen, an ultra-low carbon housing development located outside Swansea. Featuring a thousand of NorDan UK's aluminium-clad timber windows and doors, this landmark project, led by Pobl housing association, has set a new benchmark for sustainable, energy-efficient housing in Wales. A precursor to Tai ar y Cyd, Pobl and Stride Treglown in Cardiff as lead architects, saw Gwynfaen as an opportunity to be bold and combine future-proofed ideas – creating concepts that prioritise a healthy community. Moving forward, the emphasis now rests on the industry to embrace the principles of Tai ar y Cyd and take the time to explain how thinking longer term will reduce costs and carbon. To help meet this challenge, NorDan has created advanced digital modelling that calculates whole-life carbon and energy savings, making it easier to accurately set out the longer-term benefits. In conclusion, I'd say that the Welsh Government has shown visionary leadership, but if we are to be on the cusp of a new approach to affordable housing in Wales, then the industry also must follow.
Daily Mail
2 hours ago
- Daily Mail
LORD ASHCROFT: Humiliating U-turns. Broken promises. A Prime Minister deemed so weak that he can't even control his own party. As Sir Keir Starmer marks his first anniversary, voters issue their damning verdict
As Labour limps to the end of its first year in office, the marks are in and the verdict is brutal. My latest poll finds that based on what they have seen so far, nearly four in ten voters would give Keir Starmer an F for 'fail'. Among the rest, the average grade is a C minus. Even Labour voters can only bring themselves to award a C plus. It's not just that many disapprove of the Government's agenda. Half the electorate, including nearly as many 2024 Labour voters, say they don't understand what it is. This is hardly surprising, given the start they made. We can imagine Keir Starmer's first meeting with his senior officials a year ago this week. 'Congratulations, Prime Minister,' opens Sir Humphrey. 'Might we discuss your early priorities for government? I assume you'll want to focus on economic growth and improving public services.' 'All in good time,' says Starmer. 'First, cut the winter fuel allowance. Then find a way to make it more expensive to employ people. Oh, and make farmers pay inheritance tax.' 'I see,' Sir Humphrey replies hesitantly, casting a nervous glance at a puzzled colleague. 'Anything else, Prime Minister?' 'Yes. Give the Chagos Islands to Mauritius. And rent them back.' If the scene seems fanciful, it's probably because it exaggerates the sense of purpose with which Labour assumed power. A series of U-turns – a feature of Starmer's administration since the early days but now so abundant it's hard to keep up with them – has only added to the sense of incoherence and confusion. Broken promises to the 'Waspi women'; Sue Gray's brief tenure as No 10 chief of staff; reversals on winter fuel, the grooming gangs inquiry, and whether excessive immigration is or is not turning Britain into an 'island of strangers' – these combine to show a Government with little sense of direction. Starmer's colossal turnaround on welfare reform compounds the damage, for three crucial reasons – both political and practical. First, even at its most moderate, the Labour Party has never fully shaken voters' suspicions that it is too soft on welfare and can't be trusted with taxpayers' money. The backbench rebellion and the Government's retreat in the face of it show these doubts to be well founded. Second, Starmer's climbdowns will cost real money: some £4.5 billion, according to ministers' own figures. That means (even) higher taxes or (even) more borrowing, or probably both, at a time when Britain needs neither. It also makes it harder to hit the new Nato target of spending 5 per cent of GDP on defence within ten years – a policy which most voters support, as does (so he currently says) the Prime Minister. Third, while an occasional pivot can show a government that listens and learns, a succession of them erodes confidence and credibility. 'We need somebody strong at the head of our country to go head-to-head with Trump, but he can't even keep control of his own party,' as a woman put it in one of my recent focus groups. 'What's he going to do on other policies?' asked another. 'When he makes hard decisions and gets challenged, he just seems to flip.' In a dangerous world, people want a leader they can rely on. Despite all this, a fair but dwindling chunk of voters still gives Labour the benefit of the doubt. They argue that 12 months isn't long to correct the mistakes of 14 years. But listening to those who turned out for the party, it's clear that many are struggling to look on the bright side. Few see any tangible signs that Starmer's team has started to turn things around. As one of the party's previous backers told us, 'There's no noticeable change that says, "Labour's in, this has happened".' If the Government lacks a sense of purpose, many feel the same is just as true for the Conservatives. More are starting to notice Kemi Badenoch and to like what they see. But the party has yet to break through and her overall grade from voters was a D. They recognise her conundrum: how to be visible and relevant without claiming to have all the answers so soon after being booted out of office. One answer is to show a proper understanding of what they got wrong and what is needed to put it right. Another is to rediscover what one former voter called their 'North Star', the guiding principles that animated and united the Tories when they were at their best. Nigel Farage tops the grade table for the year – the only leader to get an A from his own voters, and a B overall. He has picked up the extra marks by being visible, getting people talking, articulating people's frustration and turning it into local election votes. People see that his party is branching out beyond immigration to talk about energy, industry, welfare, policing and more. 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BBC News
2 hours ago
- BBC News
Ex-Archbishop of Wales says retiring painful amid Bangor cathedral crisis
The former Archbishop of Wales has told the BBC that his decision to retire was the right one for himself and the to BBC Radio Cymru's Bwrw Golwg, Andrew John said the decision had affected him."It has been very painful and my mental health has suffered in a way I've never experienced before, but that's a consequence of having to make big decisions," he announced he was retiring with immediate effect just over a week ago after the publication of the summaries of two critical reports mentioned "a culture in which sexual boundaries seemed blurred", excessive alcohol consumption, as well as governance and safeguarding weaknesses at Bangor Cathedral. While there is no suggestion the archbishop behaved inappropriately, the church's representative body had said there must be a "change in leadership, procedures and governance in the Diocese of Bangor".After the publication of the summaries, he had faced criticism and calls to stand down, with calls for an independent inquiry into the archbishop, who will also step down as Bishop of Bangor next month, said he had little choice but to go."Being present at the meeting and [to] have people more or less calling for your resignation was like being in a nightmare," he said."I know the people who were in that meeting."I don't think I had a chance to explain the changes we've made and how complicated things are, but having heard from them I don't want to be a problem for them either."I think it's a good decision for the future." He said he did not feel he had the opportunity to emphasise the improvements which had already been made and regretted not being more open with the press to explain what was former archbishop said it was difficult, given the church needed to show whistleblowers it was treating what they said in said he did not know about the "drinking culture" around the choir in Bangor Cathedral."The idea that they went out after important services, that they went out until late saddens me," he said."It gives a bad impression of the diocese. It was a shock to hear about heavy drinking in the diocese."He said allegations of people making inappropriate jokes around children were "unacceptable" and that changes in culture were acknowledged financial mismanagement had been a problem and that a "lot of mistakes had been made".But said he was not unhappy that about £20,000 had been spent on two trips to Rome and one to Dublin."I'm not unhappy, because the diocese decided to have those three trips," he said."It's not extravagant with 20 people travelling." 'These things happened under my watch' He admitted he had not paid enough attention to the cathedral, but said that was down to his role as archbishop, which meant taking on wider asked what his biggest regret was, he said not ensuring there was a structure in place in the cathedral to deal with some of the issues and that he had been part of the problem."It pains me that these things happened under my watch and I'll have to live with that," he said."Bangor is a fantastic diocese."The damage done to the diocese, because I didn't pay enough attention to problems, is a burden I'll carry."He said he thought change would take years, but that the church would have to work together to ensure that change said he did not feel he had been mistreated, but added he had been shocked by some of the comments directed towards him on social media."It's been very difficult to see what people are saying on social media."I'm a bishop and a leader in the church, these things have happened during my tenure, so it's only right to give someone else the opportunity to take responsibility for the future."
