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Jeremy Hunt insists plans will get people

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Jeremy Hunt insists his Budget will get young parents and over-50s back into work – and it will not just benefit the rich who are saving for retirement.

The chancellor told the BBC he wanted to fill a million vacancies across the UK so firms can “grow faster”.

He plans to expand free childcare in England and scrap the £1m limit for tax-free pension savings.

Labour says the pensions move will only help the richest 1% – and Mr Hunt was “dressing up stagnation as stability”.

In his Budget speech, Mr Hunt claimed the UK economy will avoid a recession, with inflation predicted to more than halve by the end of next year.

But he said a shortage of workers is holding back growth, and he wants more over-50s, people with disabilities and parents of young children to get back to work.

Expanding free childcare to the parents of one and two-year-olds in England is a key part of the plan – but it will not be introduced fully until September 2025.

Mr Hunt said he would like to have brought it in sooner, but it first needed a big increase in the number of childminders and nurseries.

Scrapping the £1m limit on the amount people can save for their pensions before it is taxed is meant to encourage senior teachers and doctors to keep working.

Asked about criticism that it was a “Budget for the rich”, allowing people who are already well off to save more for their pensions, he said: “Well, of course we want to help older people who want to stay in work.

“By definition, they will generally be on higher salaries, but nearly five times more help is going to young parents to help them with childcare costs, a nearly 60% reduction in childcare costs of £6,500 a child.

“That will make a huge difference to families. But also it will make a huge difference to businesses who worry, particularly smaller businesses that they are losing valuable employees when they start a family.”

Tory Budget shows ‘just how out of touch they are’ – Starmer

The government’s independent forecaster, the Office for Budget Responsibility (OBR), says the chancellor’s policies are likely to add about 110,000 people to the UK workforce, depending on how they react to the various incentives.

Asked why after 13 years of a Conservative government a whole generation is not doing as well as their parents, he said his growth plan meant “better jobs and better opportunities”.

“We had half a million people who left the labour force during the lockdowns, that’s an effect you haven’t seen in other countries and that’s why I’ve announced the measures I’ve announced today to encourage people back to work,” he said.

One senior government figure described it as “a steady as she goes Budget”, after the turbulence of Liz Truss’s short-lived premiership.

The OBR said the UK economy will shrink by 0.2% next year, which is better than previously forecast and does not, technically, count as a recession.

Inflation is forecast to fall from 10.7% in the final quarter of last year to 2.9% by the end of 2023.

Living standards are still expected to fall by the largest amount since records began, according to the OBR, but the decline will not be as bad as it had forecast in November.

The economy is predicted to return to growth – but house prices are projected to fall by 10% by 2025.

The watchdog also highlighted Rishi Sunak’s April 2021 decision, when he was chancellor, to freeze tax thresholds, which it said amounted to the equivalent of a 4p increase in the basic rate of income tax.

The move, dubbed a “stealth tax” by critics, is due to come into effect next month and will increase government income by £29.3bn a year.

Meanwhile, there was no announcement of extra money for public sector pay, as a wave of strikes by workers including junior doctors, teachers and rail staff continues.

In his speech, Mr Hunt also pledged an expansion in wraparound care at the start and finish of the school day for parents with older children and changes to staff-to-child ratios in England to expand supply of childcare, although the target date for the measure was September 2026.

And he announced plans to abolish Work Capability Assessments, which he said would “separate benefit entitlement from an individual’s ability to work”.

From 2026, the government will use another test, currently used to assess eligibility for Personal Independence Payments, the main disability benefit, to decide if someone is eligible for additional payments.

Other measures unveiled in the Budget include:

  • Extending support for energy bills at current levels for a further three months
  • Charges for people with prepayment meters will be brought in line with those for direct debit customers, saving them £45 a year on their energy bills from July
  • Tax on alcohol to go up by 10.1% from 1 August
  • But duty charged on draught pints to be frozen, to help “the great British pub”
  • Tax on tobacco to go up by 2% above inflation

Labour leader Sir Keir Starmer said: “After 13 years of his government, our economy needed major surgery, but like millions across our country, this Budget leaves us stuck in the waiting room with only a sticking plaster to hand.

“A country set on a path of managed decline, falling behind our competitors, the sick man of Europe once again.”

SNP economy spokesman Stewart Hosie said: “It’s truly pathetic that the chancellor has failed to cut energy bills, despite having ample resources to do so.”

Liberal Democrat leader Sir Ed Davey said: “This Budget shows the Conservative Party is so out of touch they might as well be living on another planet.”Jeremy Hunt and Rishi Sunak had a chance to show they care about the cost-of-living crisis that’s hitting millions of Britain’s families and pensioners but they failed miserably.”

Reports /TrainViral/

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Politics

Gething downfall delivers Starmer 1st headache

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Just when you’d have been forgiven for thinking politics might quieten down a bit…

The Welsh Labour government was for so long a case study in how the party could operate in power during its long years of opposition at Westminster.

And yet here we are less than a fortnight into a UK Labour government, and the Welsh Labour government is imploding.

So much for all that talk about bringing stability back to politics.

Last week Vaughan Gething was sharing smiles here not just with the new prime minister but the King too.

Now, he’s a goner, delivering Sir Keir Starmer a headache rather than a handshake.

When I was here in March covering Mr Gething’s victory, the seeds of his political demise were germinating before our eyes.

The donations row had already sprouted and his defeated opponent, Jeremy Miles, legged it from the venue without so much as any warm words about the victor on camera.

It was another sign of the cultivating anger, the political knotweed that would soon flourish and ensnare Vaughan Gething.

Along came the row about alleged leaking, a sacking, a confidence vote — and a first minister whose tenure up until today at least amounts to 2.4 times that of Liz Truss. Ouch.

Westminster has generated its fair share of turbulence in the last decade.

But it is far from unique as a source of turbulence in UK politics.

In February, Michelle O’Neill became first minister of Northern Ireland with Emma Little-Pengelly her deputy, after a long period without devolved government at Stormont.

In March, we had a new first minister of Wales, when Mark Drakeford stood down and Vaughan Gething took the job.

In April we had the resignation of the first minister of Scotland Humza Yousaf.

He was replaced the following month by John Swinney. June was the quiet month then. Just the small matter of a general election campaign.

And here we are in July, and Mr Gething is resigning.

So will begin another leadership race, a new government in Wales, a new first minister and a new team of senior Welsh ministers.

There will also be more arguments about Welsh Labour – its direction, its priorities, its capacity to govern effectively and its relationship with the UK party.

If you’re watching this in Downing Street, it’s the last thing you need.

Reports /Trainviral/

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Shoplifting crackdown expected to be unveiled

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A crackdown on shoplifting is expected to be announced in the King’s Speech on Wednesday.

The government is due to unveil a new crime bill to target people who steal goods worth less than £200.

The policy would be a reversal of 2014 legislation that meant “low-value” thefts worth under £200 were subject to less serious punishment.

The government is also expected to introduce a specific offence of assaulting a shop worker to its legislative agenda.

It will not be clear until legislation passes through Parliament what the punishments for any new or strengthened offences would be.

Data from the Office for National Statistics shows that last year was the worst on record for shoplifting in England and Wales.

Police recorded over 430,000 offences in those nations in 2023 – though retailers say underreporting means these figures are likely to represent only a fraction of the true number of incidents.

Michelle Whitehead, who works at a convenience store in Wolverhampton, said her shop had been “hit every day” by thieves.

People were stealing “absolutely anything” including “tins of spam, tins of corned beef, all the fresh meat”, Ms Whitehead told BBC Radio 4’s World at One programme.

“They’re just coming in, getting their whole arm and sweeping the lot off the shelves,” she said. “The shelves were always empty.”

She said she believed “organised” criminal gangs, rather than individuals struggling with the cost of living, were behind the thefts in her shop.

The crackdown on “low-value” shoplifting “will help a lot of little shops,” Ms Whitehead said.

While retailers and shop workers have welcomed the anticipated proposals, a civil liberties group has raised concerns about criminalising people struggling to make ends meet and overburdening the prison system.

The new legal measures are expected to be announced as part of the King’s Speech on Wednesday, a key piece of the State Opening of Parliament that allows the government to outline its priorities over the coming months.

Before the general election, the Labour Party pledged to reverse what it described as the “shoplifter’s charter” – a piece of 2014 legislation that reduced the criminal punishment for “low-value shoplifting”.

Tom Holder, spokesperson for the British Retail Consortium (BRC), told BBC News the impact of the 2014 legislation has been to “deprioritise it in the eyes of police”.

“I think police would be less likely to turn up to what they see as low-level theft,” he said.

Shoplifting cost retailers £1.8 billion in the last year, which could impact prices, according to the BRC.

“Shoplifting harms everyone in that sense – those costs eventually get made up somewhere, whether it’s prices going up or other prices that can’t come down,” Mr Holder said.

Co-op campaigns and public affairs director Paul Gerrard said the supermarket chain had also recorded rising theft and violence against shop workers.

“There’s always been people who will steal to make ends meet. That’s not what is behind the rise we’ve seen,” he told BBC Radio 4’s Today programme on Tuesday. “What’s behind that rise is individuals and gangs targeting large volumes of stock in stores for resale in illicit venues like pubs, clubs, markets, and out the back of cars.”

But Jodie Beck, policy and campaigns officer at civil liberties organisation Liberty, had concerns about the expected proposals, saying there is “already a wide range of powers” the police can use to tackle shoplifting and anti-social behaviour levelled at retail staff.

Ms Beck said the “£200 threshold” would not just target criminal gangs but also “people who are pushed into the desperate situation of not paying for things” because they cannot afford to make ends meet.

She urged the government to avoid focusing on “criminal justice and policing solutions instead of doing the thoughtful work of looking at the root causes of crime, which we believe are related to poverty and inequality”.

Ms Beck also argued the additional legislation could serve to worsen the UK’s “enormous court backlog” and its “bursting prison system”.

Last week, Justice Secretary Shabana Mahmood announced plans to release thousands of prisoners early to ease overcrowding in the country’s prisons.

A spokesperson for Downing Street said the government would not comment on the King’s Speech until it has been delivered by the monarch.

The National Police Chiefs’ Council has been approached for comment.

Reports /Trainviral/

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Politics

Government launches ‘root and branch’ review

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Defence Secretary John Healey hailed the government’s defence review as the “first of its kind” and said it will “take a fresh look at the challenges we face”.

Mr Healey noted the “increasing instability and uncertainty” around the world, including the conflict in the Middle East and war in Ukraine, and said “threats are growing”.

The strategic defence review will consider the current state of the armed forces, the threats the UK faces and the capabilities needed to address them.

Sir Keir Starmer has previously said the review will set out a “roadmap” to the goal of spending 2.5% of national income on defence – a target he has made a “cast iron” commitment to but is yet to put a timeline on.

On Monday, the prime minister said the “root and branch review” of the armed forces would help prepare the UK for “a more dangerous and volatile world”.

The review will invite submissions from the military, veterans, MPs, the defence industry, the public, academics and the UK’s allies until the end of September and aims to deliver its findings in the first half of 2025.

“I promised the British people I would deliver the change needed to take our country forward, and I promised action not words,” Sir Keir said.

“That’s why one of my first acts since taking office is to launch our strategic defence review.

“We will make sure our hollowed out armed forces are bolstered and respected, that defence spending is responsibly increased, and that our country has the capabilities needed to ensure the UK’s resilience for the long term.”

The review will be overseen by Defence Secretary John Healey and headed by former Nato Secretary General Lord Robertson along with former US presidential advisor Fiona Hill and former Joint Force Commander Gen Sir Richard Barrons.

The group will have their work cut out.

The global security threats facing the UK and its Western allies are more serious and more complex than at any time since the end of the Cold War in 1990.

They also coincide with what many commentators have said is a catastrophic running down of the UK’s armed forces to the point where the country is arguably no longer considered to be a Tier One military force.

In terms of the number of troops in its regular forces, the British Army is now at its smallest size since the time of the Napoleonic Wars two centuries ago.

Recruitment is failing to match retention, with many soldiers and officers complaining about neglected and substandard accommodation.

The Royal Navy, which has spent vast sums on its two centrepiece aircraft carriers, is in need of many more surface ships to fulfil its tasks around the globe.

Its ageing fleet of nuclear-armed Vanguard submarines, the cornerstone of the UK’s strategic defence and known as the Continuous At Sea Deterrent (CASD), is overdue for replacement by four Dreadnought class submarines and costs are mounting.

Commenting on the review, Mr Healey said: “Hollowed-out armed forces, procurement waste and neglected morale cannot continue.”

Too many UK commitments?

The defence and security threats facing the UK, Nato and its allies further afield are multiple.

They include a war raging on Europe’s eastern flank in Ukraine against Russia’s full-scale invasion. The UK, along with the EU and Nato, has opted to help defend Ukraine with multi-billion pound packages of weapons and aid, stopping short of committing combat troops.

The policy behind this is not entirely altruistic. European governments, especially those closest to Russia like Poland and the Baltic states, fear that if President Putin wins the war in Ukraine it will not be long before he rebuilds his army and invades them next.

Some of those countries are already busy beefing up their own defence spending closer to 3% or even 4% of GDP.

The challenge for Nato has been how to provide Ukraine with as much weaponry as it can, without provoking Russia into retaliating against a Nato state and risk triggering a third world war.

The Royal Navy has been in action recently in the Red Sea, where it has been operating alongside the US Navy in fending off attacks on shipping by the Iranian-backed Houthi rebels in Yemen.

But the UK has also made naval commitments further afield in the South China Sea with the Aukus pact, comprising of Australia, UK and the US, aimed at containing Chinese expansion in the region.

Critics have questioned whether a financially-constrained UK can afford to make commitments like this on the other side of the world.

Closer to home in Europe, there is a growing threat from so-called “hybrid warfare” attacks, suspected of coming from Russia.

These are anonymous, unattributable attacks on undersea pipelines and telecoms cables on which Western nations depend.

As tensions increase with Moscow there are fears such actions will only increase and the UK cannot possibly hope to guard all of its coastline all of the time.

But while those nervous Nato partners living close to Russia’s borders are busy beefing up their defence spending closer to 3 or even 4% of GDP, the UK has so far declined to put a timetable on when it will raise its own defence spending to just 2.5%.

Opposition figures have criticised the government for refusing to say when defence spending will be increased.

Before his election defeat, former prime minister Rishi Sunak committed to reaching 2.5% by 2030.

Shadow defence secretary James Cartlidge previously said: “In a world that is more volatile and dangerous than at any time since the Cold War, Keir Starmer’s Labour government had a clear choice to match the Conservatives’ fully funded pledge to spend 2.5% of GDP on defence by 2030.

“By failing to do so, they’ve created huge uncertainty for our armed forces, at the worst possible time.”

Reports /Trainviral/

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