Latest news with #Chequers
Yahoo
3 days ago
- Business
- Yahoo
Chancellor guided by ‘fairness', senior minister says of calls for wealth tax
The Government will be guided by 'fairness' on tax, a senior Cabinet minister said when asked if tax rises are coming in the autumn budget. Transport Secretary Heidi Alexander would not rule out tax rises in the budget as she toured the broadcast studios on Sunday morning. She also told Sky News's Sunday Morning With Trevor Phillips programme that Cabinet ministers did not 'directly' talk about the idea of a wealth tax – as advanced by unions and former Labour leader Lord Neil Kinnock – during an away day at the Prime Minister's Chequers country estate this week. Chancellor Rachel Reeves has refused to rule out tax rises at the budget since Labour MPs forced ministers to make a U-turn on welfare reforms, which the Government had hoped would save up to £5 billion a year. Fiscal watchdog the Office for Budget Responsibility (OBR) this week warned that the UK's state finances are on an 'unsustainable' path due to a raft of public spending promises the Government 'cannot afford' in the longer term. Meanwhile, economists have warned Ms Reeves on several occasions that her fiscal headroom – the leeway within the Government's self-imposed spending rules – could be eroded by unexpected economic turns. Ministers are committed to not raising income tax, national insurance and VAT – the three main taxes which affect working people – to pay for their plans. Lord Kinnock last week suggested a wealth tax could 'commend' the Government to the general public and help it bolster the public funds while not breaking its existing pledges. Union leaders, including Sharon Graham of Unite, are also pressuring ministers to consider the move. Asked by Sky News if such a tax had been discussed at the Cabinet away day on Friday, Ms Alexander said: 'Not directly at the away day.' Pressed on what she meant by not directly, the senior minister replied: 'I think your viewers would be surprised if we didn't recognise that, at the budget, the Chancellor will need to look at the OBR forecast that is given to her, and will make decisions in line with the fiscal rules that she has set out. 'We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.' Asked again if this meant there will be tax rises in the budget, Ms Alexander replied: 'So, the Chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. 'When it comes to taxation, fairness is going to be our guiding principle.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
3 days ago
- Business
- Yahoo
Chancellor guided by ‘fairness', senior minister says of calls for wealth tax
The Government will be guided by 'fairness' on tax, a senior Cabinet minister said when asked if tax rises are coming in the autumn budget. Transport Secretary Heidi Alexander would not rule out tax rises in the budget as she toured the broadcast studios on Sunday morning. She also told Sky News's Sunday Morning With Trevor Phillips programme that Cabinet ministers did not 'directly' talk about the idea of a wealth tax – as advanced by unions and former Labour leader Lord Neil Kinnock – during an away day at the Prime Minister's Chequers country estate this week. Chancellor Rachel Reeves has refused to rule out tax rises at the budget since Labour MPs forced ministers to make a U-turn on welfare reforms, which the Government had hoped would save up to £5 billion a year. Fiscal watchdog the Office for Budget Responsibility (OBR) this week warned that the UK's state finances are on an 'unsustainable' path due to a raft of public spending promises the Government 'cannot afford' in the longer term. Meanwhile, economists have warned Ms Reeves on several occasions that her fiscal headroom – the leeway within the Government's self-imposed spending rules – could be eroded by unexpected economic turns. Ministers are committed to not raising income tax, national insurance and VAT – the three main taxes which affect working people – to pay for their plans. Lord Kinnock last week suggested a wealth tax could 'commend' the Government to the general public and help it bolster the public funds while not breaking its existing pledges. Union leaders, including Sharon Graham of Unite, are also pressuring ministers to consider the move. Asked by Sky News if such a tax had been discussed at the Cabinet away day on Friday, Ms Alexander said: 'Not directly at the away day.' Pressed on what she meant by not directly, the senior minister replied: 'I think your viewers would be surprised if we didn't recognise that, at the budget, the Chancellor will need to look at the OBR forecast that is given to her, and will make decisions in line with the fiscal rules that she has set out. 'We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.' Asked again if this meant there will be tax rises in the budget, Ms Alexander replied: 'So, the Chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. 'When it comes to taxation, fairness is going to be our guiding principle.'
The Independent
3 days ago
- Business
- The Independent
Chancellor guided by ‘fairness', senior minister says of calls for wealth tax
The Government will be guided by 'fairness' on tax, a senior Cabinet minister said when asked if tax rises are coming in the autumn budget. Transport Secretary Heidi Alexander would not rule out tax rises in the budget as she toured the broadcast studios on Sunday morning. She also told Sky News's Sunday Morning With Trevor Phillips programme that Cabinet ministers did not 'directly' talk about the idea of a wealth tax – as advanced by unions and former Labour leader Lord Neil Kinnock – during an away day at the Prime Minister's Chequers country estate this week. Chancellor Rachel Reeves has refused to rule out tax rises at the budget since Labour MPs forced ministers to make a U-turn on welfare reforms, which the Government had hoped would save up to £5 billion a year. Fiscal watchdog the Office for Budget Responsibility (OBR) this week warned that the UK's state finances are on an 'unsustainable' path due to a raft of public spending promises the Government 'cannot afford' in the longer term. Meanwhile, economists have warned Ms Reeves on several occasions that her fiscal headroom – the leeway within the Government's self-imposed spending rules – could be eroded by unexpected economic turns. Ministers are committed to not raising income tax, national insurance and VAT – the three main taxes which affect working people – to pay for their plans. Lord Kinnock last week suggested a wealth tax could 'commend' the Government to the general public and help it bolster the public funds while not breaking its existing pledges. Union leaders, including Sharon Graham of Unite, are also pressuring ministers to consider the move. Asked by Sky News if such a tax had been discussed at the Cabinet away day on Friday, Ms Alexander said: 'Not directly at the away day.' Pressed on what she meant by not directly, the senior minister replied: 'I think your viewers would be surprised if we didn't recognise that, at the budget, the Chancellor will need to look at the OBR forecast that is given to her, and will make decisions in line with the fiscal rules that she has set out. 'We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.' Asked again if this meant there will be tax rises in the budget, Ms Alexander replied: 'So, the Chancellor will set her budget. I'm not going to sit in a TV studio today and speculate on what the contents of that budget might be. 'When it comes to taxation, fairness is going to be our guiding principle.'
The Independent
4 days ago
- Business
- The Independent
How Angela Rayner has become the most influential figure in Starmer's government
As Keir Starmer gathered his top ministers for a special away day in Chequers for a team-building reset on Friday, one figure arrived in a much more powerful position than she was in just two weeks ago. It is now widely recognised by Labour MPs, across the different wings of the party, that deputy prime minister Angela Rayner 's influence in this government is greater than almost anybody else. Certainly more than the wounded chancellor Rachel Reeves, who has been beset by economic woes, and even more than health secretary Wes Streeting who, like Rayner, has been tipped as a future contender for the leadership. She was, though, completely unprepared for the shot fired by the Unite union, after its general secretary announced it had suspended her membership for failing to resolve the Birmingham refuse collectors dispute. But while a trade union that looks set to peel off and back Jeremy Corbyn's new party gave her a headache, Ms Rayner nevertheless is enjoying a surge in influence – for now. Welfare rebellion The biggest reason for her rise is the result of the welfare rebellion just over a week ago. As one party whip put it: 'There's nobody more powerful in the government than Angela at the moment. 'She was the one who brokered the deal with Labour rebels, she was the one who talked people off the ledge from voting against the government.' As another ally pointed out that she did not even want the disability cuts and had already sent a leaked memo to Ms Reeves suggesting wealth taxes instead of austerity. Now, after last Wednesday's PMQs, it seems like the government has no option but to raise taxes. But the turnaround for Ms Rayner actually started with her holdout in the spending review, where she got a £39bn for housing and more than expected for local government. A spot of union bother Some may see the recent decision by Unite the union to suspend her membership (even though she left the union in April) as a problem. But behind the scenes it has confused people on the left and other unions, who believe Ms Rayner has turned Starmer's government leftward on disability benefits and steering through the bill on workers' rights. As a TUC source noted: 'The main metric we are judging this government by is the workers' rights legislation and that is on course.' Unite took action because of her position on the Birmingham bins strike. But an ally of Ms Rayner said: 'It's wild! They know full well that Angela cannot directly intervene in the way that they say, and to attack one of the few remaining cabinet members who is standing up for workers rights and real labour values is simply mad.' However, it remains to be seen if the escalating clash with Unite will halt Ms Rayner's rise. A rival court to Downing Street How the tide can turn. Just over a month ago, there was talk about Ms Rayner being demoted and losing the housing part of her portfolio. Now there is speculation in Westminster that the deputy prime minister could soon have her own official office, with its own staff and comms team. There is some scepticism, especially over what it would mean for Sir Keir himself and his chief of staff Morgan McSweeney. As one ally of Ms Rayner noted: 'Morgan will hate the idea and do everything he can to stop it. An Office of the Deputy Prime Minister (ODPM) would create a rival court, an alternative centre of government.' The last person to have an ODPM was John Prescott under Tony Blair, but unlike Ms Rayner, Prescott was never seen as a candidate to replace Sir Tony. All about the leadership There is still a lot of fevered speculation about whether Sir Keir can survive as prime minister. The image of his chancellor in tears while he failed to guarantee her future this month became the image of a government spiralling out of control after just a month. There are many waiting to see the results of the elections in Scotland, Wales and English councils next May to decide whether to launch a putsch. If he is forced out, Ms Rayner is now the clear favourite to take over, despite her protestations that she does not want the job. Beware the 'Rayner's rise' trap While Ms Rayner is on top at the moment, there is some speculation that the spending review with Ms Reeves has laid a trap for her much more problematic than the issues with Unite. In getting her cash for local government and housing it appears that the deputy prime minister has signed up to council tax rises of 5 per cent. At the housing and local government select committee hearing this week in the Commons she denied that the increase was 'baked in', but MPs from her own party and the opposition were not convinced at all. The Independent has been told that already the term 'Rayner's rise' is being used for hefty council tax increases not seen since the Blair era two decades ago. Back in the Blair government it was Prescott and his Office of the Deputy PM which took the brunt of the anger over rising bills - it will be the same for Ms Rayner. Among her allies there is genuine concern that Ms Rayner's opponents inside and outside the party are 'preparing to weaponise' it as an issue when council tax bills land at the end of the year. There are fears that it will not take much to turn the public against her.
Sky News
4 days ago
- Politics
- Sky News
Starmer aims to break cabinet away day curse
Sir Keir Starmer was hoping to break the curse of the cabinet away day as he summoned his ministers to Chequers for the launch of a summer "refresh" of his troubled government. The aim: to plot a course for a recovery during Labour's second year in power after a first 12 months blighted by economic woes, rows over freebies, humiliating U-turns and rebellions. In the past, the away day rules from the No 10 high command have included no woolly jumpers and no sandwiches. This time, the rule to ministers was: "Don't call it a reset." The curse of this away day could turn out to be the threat of a looming ministerial reshuffle, which some MPs predict could come as early as next week. Could some of those present face the axe? According to the official readout of Sir Keir's away day, the prime minister chaired a session on how the government will use AI "to turbocharge its Plan for Change". But that was just a small part of the discussions. Top of the agenda for a "political cabinet", without civil servants, were the storm clouds over the economy and the options for Chancellor Rachel Reeves in her make-or-break autumn budget. And based on the experience of previous cabinet away days, from Sir Tony Blair and Gordon Brown to Theresa May, Boris Johnson and Rishi Sunak, the omens were not good. Away days may seem like a good idea at the time, but most end badly. The idea of Chequers away days has been to hold a brainstorming session in the privacy of the Buckinghamshire countryside without distractions or prying photographers, reporters or TV crews. But over the years, like most family get-togethers, there have been personality clashes, squabbles about what to eat and what to wear, disputes about who takes centre stage, and even backstabbing and walkouts. The last Chequers cabinet away day, held by Mr Sunak in January 2023, took place with two senior figures facing official investigations. Tory chair Nadhim Zahawi was engulfed in a tax scandal and deputy prime minister Dominic Raab was facing bullying allegations. Mr Zahawi was out within a week after this away day and Mr Rabb within three months. Without doubt, the most disastrous cabinet awayday at Chequers was in July 2018, when Ms May thought she'd persuaded her cabinet to back her Brexit deal. Then, as now, the heat was sweltering. But two days later, David Davis quit as Brexit secretary and Mr Johnson - who was said to have proposed a champagne toast to the prime minister at Chequers - resigned as foreign secretary the following day. Ms May thought she had a deal that would keep the UK closely tied to the EU's customs union and single market. But it was doomed even during that away day. It was reported that ministers were warned that anyone who resigned would have to walk a mile down the drive and get a lift home with the local taxi firm, whose cards had been left in the foyer. When he resigned, Mr Davis was said to have been livid about hostile briefing from senior figures in Downing Street about how the Brexiters would be treated at Chequers, including the taxi threat. And Mr Johnson not only launched a "Chuck Chequers" campaign opposing Ms May's deal, but also a campaign to chuck her out of Downing Street and seize her job for himself. As prime minister, he also held a cabinet awayday, not at Chequers, but at a pottery in the heart of the "red wall" in Stoke-on-Trent, in 2022. The venue might have been different, but that was cursed too. Just weeks later Mr Johnson's cabinet shattered like broken Wedgwood china following the resignations of Mr Sunak and Sajid Javid. The modern trend for cabinet away days was started by Sir Tony - who else? - in 1998. The rules for ministers were laid down by his chief of staff Jonathan Powell, now Sir Keir's national security adviser. In a memo to cabinet ministers attending, he wrote: "TV will film people arriving and going, so there can be no woolly jumpers." Mr Powell was rebuffed by Sir Tony, however, when he suggested in a memo to the prime minister that Mr Brown should start the meeting with a discussion on the economy. "No," Sir Tony replied bluntly in a handwritten note. Peter Mandelson, now Britain's ambassador in Washington, demanded "something nicer than sandwiches" for lunch and got his wish when a buffet was laid on. Sir Keir's Chequers away day also began with lunch, then the short formal cabinet meeting with the discussion about AI, then the political cabinet, which was the real reason for the away day. No need for woolly jumpers in the 32C heat. Just don't call it a "refresh".
