Category Archives: POLITICS

Kemi Badenoch Has Won The Tory Leadership Race

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Kemi Badenoch has beaten Robert Jenrick to become the new leader of the Conservatives.

She received the support of 53,806 Tory members, compared to Jenrick’s 41,388 – a winning margin of more than 12,000 votes.

Her win marks the end of the prolonged four-month race to replace Rishi Sunak as leader of the opposition.

She also becomes the first black leader of a major British political party.

Badenoch served as the business and trade secretary in the last government and has been the shadow housing secretary since the Tories were kicked out of Downing Street.

She said the “huge job” ahead involves “the people we want to bring back to the Conservative Party”.

Badenoch said: “This is not just about the Conservative Party, it is about the people we want to bring back to the Conservative Party, it is about the people we need to bring into the Conservative Party.

“It is about what the Conservative Party needs to be over the next five, 10 and 20 years.

“Our party is critical to the success of our country, but to be heard we have to be honest – honest about the fact that we made mistakes, honest about the fact that we let standards slip.

“The time has come to tell the truth. The time has come to tell the truth, to stand up for our principles, to plan for our future, to reset our politics and our thinking, and to give our party, and our country, the new start that they deserve.

“It is time to get down to business, it is time to renew.”

The MP for North West Essex previously raised eyebrows by claiming she is “very, very wary” of saying she wants to become the next prime minister because the job “changes your life forever”.

Badenoch has also faced criticism for several controversies throughout her leadership campaign.

She bizarrely claimed that she had become working class at 16 after getting a job at McDonald’s.

On another occasion, Badenoch suggested not all “cultures are equally valid”.

During the Conservative conference, she also appeared to say that maternity pay is “excessive” before being forced to insist she meant the burden of regulation on business.

The MP has also been accused of endorsing a report which “stigmatised” autism, too.

Badenoch is expected to start assembling her shadow cabinet straight away, but it will not include former leadership candidate James Cleverly, who said he would be returning to the backbenches.

Former ministers Tom Tugendhat, Mel Stride and Priti Patel were all kicked out earlier in the contest having failed to secure enough votes from fellow Conservative MPs.

Tory chairman Richard Fuller said: “On behalf of the whole Conservative Party I’d like to congratulate Kemi Badenoch on being elected as our new leader.

“Over the course of the leadership contest we have seen six strong, credible candidates who have spent their time travelling around the country meeting our excellent party members.

“I would like to thank all the candidates for their conduct and commitment during the leadership contest and the team at CCHQ for their hard work throughout.

“With Kemi Badenoch in place as our new leader now is the time for the whole Party to unite and take the fight to Labour, the Liberal Democrats, SNP and Reform.”

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Elon Musk Has Reignited His Feud With Keir Starmer And This Time It’s Over The Budget

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Elon Musk has reignited his feud with Keir Starmer by becoming an unlikely champion of Britain’s farmers.

The X owner has taken issue with changes to inheritance tax rules set out in the Budget last Wednesday by Rachel Reeves.

Under the new measures, farms worth more than £1 million will become liable for the tax for the first time when their owner dies.

Responding to a post on X criticising the new policy, Musk wrote: “We should leave the farmers alone. We farmers immense gratitude for making the food on our tables!”

In the summer, the prime minister slapped down the billionaire tech boss for claiming “civil war is inevitable” in the UK in the wake of the far-right riots which have taken place across the country in the past week.

The PM’s official spokesman said: “There’s no justification for comments like that and what we’ve seen in this country is organised illegal thuggery which has no place on our streets or online.”

But responding to a video posted on X by Starmer in which he said the government “will not tolerate attacks on mosques or on Muslim communities”, Musk replied: “Shouldn’t you be concerned about attacks on all communities?”

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Why GP Surgeries Could Be ‘Tipped Over The Edge’ By Labour’s New Budget

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GP surgeries could be “tipped over the edge” by Labour’s new Budget, according to a union representative.

Chancellor Rachel Reeves has chosen to hike up Employers’ National Insurance contributions in her efforts to raise £40bn of funds and plug the “black hole” left by the Tories in the public purse.

The NHS – which has just received a £22.6bn cash injection in the Budget – is exempt from that tax rise, along with other public sectors.

But GP surgeries, care homes and hospices are not exempt, even though they provide NHS services, because they are privately owned partnerships.

Speaking to Times Radio today, the chair of the BMA Council Phil Banfield warned: “For some GPs, this will tip them over the edge. And we’ve seen over 1,000 practices close in the last 10 years.”

He added that he believes “the government was unaware of how much this would catch out GPs” and so he is hoping for further discussions with the health department.

Banfield said for GPs – who have a contract with the government – “the only way to absorb costs is to reduce the number of staff and at a point at which you’re trying to increase the number of appointments and increase access have more GPs and nurses”.

He added: “This achieves the complete opposite. So I don’t think it will take too long for the government to realise that they need to do something urgently about this.”

Britain's Chancellor of the Exchequer, Rachel Reeves, looks up as she holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth)
Britain’s Chancellor of the Exchequer, Rachel Reeves, looks up as she holds up the traditional red ministerial box containing her budget speech, as she poses for the media outside No 11 Downing Street, before departing to the House of Commons to deliver the budget in London, Wednesday, Oct. 30, 2024. (AP Photo/Kirsty Wigglesworth)

via Associated Press

Chief secretary to the Treasury, Darren Jones, told Times Radio this morning: “Yes, [GPs] will have to pay national insurance contributions as employers, but how much they pay will depend on their size.

“And you know, many GP practices are small organisations, and so they will pay less than some of the bigger businesses that we’re asking to contribute more at this Budget.”

Smaller GP surgeries may be shielded from paying more tax because of the changes to thresholds for Employment Allowance.

However, there are worries that some public bodies doing more than half their work in the public sector will not eligible for that allowance, as stated by government guidance.

Health secretary Wes Streeting also pointed to the £600m extra put aside for social care and suggested more discussions about the employer tax hike for GPs were on the table.

But care groups think that will not be enough due to increased staffing costs.

Dr David Wrigley, GP and deputy chair at the British Medical Association, said the impact would be “monumental” on X, especially since so many of those institutions are already “on a financial tight rope”.

Liberal Democrat Treasury spokesperson Daisy Cooper MP said: “The government must scrap this GP penalty immediately.

“After years of the Conservatives disgraceful neglect, our primary care services are in crisis and this could push many to reduce the number of staff they employ or just decide to shut up shop.

“Instead of investing in our GPs and their staff, the government has put more pressure on them in a move that will make it even harder for patients to see a GP when they need to.”

This row comes as nearly 100 progressive politicians, including independent MPs like Jeremy Corbyn and MPs from the Green Party and Plaid Cymru, banded together to declare that Labour’s Budget punishes the “working people” they claim to support.

“This budget is austerity in another name,” their open letter to Starmer says.

It adds that the investment in schools and hospital buildings have been “undermined by a swathe of public sector cuts, cruel attacks on the worst-off, and a dogmatic refusal to redistribute wealth and power”.

“These are not ‘tough choices’ for government ministers, but for ordinary people who are forced to choose between heating their home and putting food on the table.”

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How Worried Should We Be About The Way The Markets Are Reacting To The Budget?

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The cost of government borrowing has gone up and the value of the pound has fallen as the money markets react to the Budget delivered by Rachel Reeves on Wednesday.

That has sparked some fears that the UK is heading for a Liz Truss-style economic meltdown triggered by the chancellor’s decision to massively increase taxes and government borrowing.

On Thursday afternoon, bond yields – effectively the interest rate the government pays on its debt – hit 4.568%, the highest it has been since August last year.

That is significant because the more money the government has to pay servicing debt, the less there is available to spend on public services.

Sky News economics editor Ed Conway said voters should be “certainly a bit worried” by what is happening on the money markets.

Posting on X, he said: “There has been a marked rise in UK bond yields following the Budget which is greater than what we’re seeing in other markets.”

But he added: “Perhaps the most important thing to say is: this is NOTHING like the reaction we saw following the Truss mini Budget.

“Even so, there has definitely been SOME reaction. The pound weakened a bit and gilt yields rose. This despite the fact that most of this Budget was pre-briefed long in advance. Investors are actively re-pricing UK debt. And that matters.

“The issue at present isn’t the one Liz Truss had to grapple with – a near financial crisis – but something else. The cost of debt servicing is going up. And if debt interest costs goes up it has a direct bearing on the government’s fiscal plans.”

At the same time, the value of the pound against the dollar has also fallen – further evoking memories of the financial crisis which followed Truss’ disastrous mini-Budget two years ago.

Kathleen Brooks, an analyst at trading firm XTB, said the the Budget “has not been well received” by the markets.

Kyle Chapman, an analyst at trading firm Ballinger Group, said the fall in the pound and rise in gilt yields indicated that the market had decided Labour had “overextended” with its borrowing and spending plans.

However, other analysts insisted the current situation was completely different to when Kwasi Kwarteng, Truss’ chancellor, announced £45bn of unfunded tax cuts.

“Investors feared a new Liz Truss moment, but in the end the announcements do not suggest an uncontrolled surge in debt,” Edmond de Rothschild Asset Management portfolio manager, Nabil Milali, said.

Laith Khalaf, head of investment analysis at AJ Bell, said: “Of course, markets are especially sensitive to the effect chancellors can have on interest rates ever since Kwasi Kwarteng took to the despatch box, and with the ten-year gilt yield now climbing to levels seen in the wake of mini-Budget, it’s fair to ask whether Rachel Reeves’ maiden Budget could cause similar problems.

“The answer is probably, and hopefully, not.”

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Budget Analysis: Voters Could End Up Paying The Price For Rachel Reeves’ Big Gamble

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Rachel Reeves is not, by nature, much of a gambler.

She has managed to become the UK’s first ever female chancellor through a combination of political ability, sound economic judgement and caution.

But in the Budget, she decided to bet everything on the government being able to grow the economy – and the “working people” Labour have sought to protect could end up paying the price.

Reeves stunned the Commons by announcing that she was hiking taxes by £40 billion – an astronomical sum even bigger than what had been predicted and which will take the tax burden to the highest level on record.

Capital gains tax, inheritance tax and – most significantly – employers’ National Insurance are all going up as the chancellor seeks to clear up the financial mess she says the last Tory government left behind.

Tens of billions of pounds will also be borrowed as the government turns on the spending taps.

Much of the cash will be spent on improving the NHS and schools, moves which are likely to be popular with most voters.

But look at the small print and it’s clear to see why economic experts – and plenty of Labour MPs – are nervous.

Economic growth – the government’s number one mission, don’t forget – over the next five years is set to be lower than previously forecast by the Office for Budget Responsibility.

Inflation and interest rates are also set to rise, according to the OBR, further damaging household incomes.

Treasury sources acknowledge this is a sub-optimal situation, but are pleading for patience from voters.

One said: “Do we want those growth forecasts to be higher? Yes. But we’re not going to be able to turn around 14 years in one Budget. This is our first Budget in our first term.

“What the chancellor has set out is an honest Budget in response to the scale of the challenge we face.

“We’ve had to take difficult decisions on tax in order to bring back stability to the economy.

“We’re not immune to the consequences of our decisions, but the consequences of not acting would have been to lose control of economic stability.”

But there was an ominous warning from the highly-respected Institute for Fiscal Studies, whose director Paul Johnson said: “Somebody will pay for the higher taxes – largely working people.”

With the Labour government’s popularity already cratering barely three months after the election, a major financial hit to those who helped put them in office is the last thing Reeves and Keir Starmer need.

The chancellor desperately needs her big Budget gamble to pay off.

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Labour’s Tax Rises Will ‘Largely’ Fall On Working People, Leading Economists Say

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Working people will end up paying for Rachel Reeves’ huge tax hike, according to a leading think tank.

The chancellor unveiled a plan to raise a record-breaking £40bn in her Budget today, but maintained that she had stuck to her promise not to bring back austerity.

Labour also claims to have honoured their manifesto pledge not to increase taxes for “working people”.

Although that exact definition is still not clear, the government said they would not put up the income tax, VAT or National Insurance that they pay.

However, Reeves did raise the NI rate paid by for employers to 15% from April next year.

According to the Office for Budget Responsibility, three-quarters of the impact of that will be felt by employees through lower wage rises.

Institute for Fiscal Studies (IFS) director Paul Johnson said: “Somebody will pay for the higher taxes – largely working people.”

Johnson also issued a warning about the way the chancellor had “front-loaded” the government’s spending plans over the next five years.

“A government splashing the cash in the short term and promising to be more austere in future? Stop me if you think you’ve heard this one before,” he said.

He added: “The challenge will be to make sure the money is spent well enough to make those costs worth bearing.”

Accountancy outsourcing specialists Advancetrack said the increase to employers’ NICs is a “big blow to UK businesses of all sizes who are already grappling with a range of escalating costs”.

Meanwhile, accountancy firm Menzies LLP warned that this Budget was focused on “quick fixes rather than meaningful reform”.

European Movement UK CEO and former Lib Dem minister, Sir Nick Harvey, suggested there was something missing from the Budget: Brexit.

“The chancellor can tinker around the edges, but addressing the economic damage done by Brexit must become a priority,” he said.

Social mobility charity Sutton Trust thought it was educational support that was lacking from the Budget, saying: “The government has clearly identified the need to increase the national minimum wage due to cost of living pressures, so why does student maintenance remain inadequate?”

Meanwhile, Generation Rent’s chief executive Ben Twomey said: “The lack of clear support for the half of renters who don’t have savings and are really struggling is a big concern.”

Resolution Foundation’s interim chief executive Mike Brewer said the Budget engages with the country’s economic challenges – but it’s only the “first step of what will be needed”.

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JD Vance Declines To Label Russia’s Vladimir Putin An ‘Enemy’ Of The US

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Senator JD Vance (Republican, Ohio) would not concede that Vladimir Putin is an “enemy” of the United States during an interview broadcast on Sunday, claiming that the country needs to be strategic about the way it speaks about the Russian president.

The Republican vice presidential nominee told NBC’s Meet The Press Putin is “clearly an adversary” and a “competitor,” but suggested it would be wrong to antagonise him by using stronger language against him that could hinder diplomacy efforts when it comes to the ongoing war in Ukraine.

“Well, we’re not in a war with him, and I don’t want to be in a war with Vladimir Putin’s Russia. I think that we should try to pursue avenues of peace,” he said.

Vance noted the US “obviously” has “adversarial interests” with Russia.

“We can condemn Russia’s invasion of Ukraine, and I have, and of course the president has. But we also need to engage in some smart diplomacy if we’re ever going to get out of the mess that [Vice President] Kamala Harris has left us in and get back to a posture of peace,” he continued.

Former President Donald Trump has blamed both Ukrainian President Volodymyr Zelenskyy and President Joe Biden for the war breaking out. He has also said negotiating a peace deal between Russia and Ukraine would be one of his first orders of business as president-elect if he secures reelection.

Trump has also criticised the Biden administration’s efforts to continue sending assistance to Kyiv, while reportedly maintaining a cozy relationship with Putin, fuelling concern among Democratic lawmakers and US allies about the future of US aid to Ukraine in the event that he wins in November. The two men allegedly spoke on the phone several times since he left office, and Trump reportedly sent Putin Covid tests for his “personal use” in 2020, according to journalist Bob Woodward’s new book War.

While Trump’s campaign has denied the allegations contained in the book, the former president refused to answer whether he has spoken to Putin since January 2021.

“I don’t comment on that,” Trump told Bloomberg’s editor-in-chief John Micklethwait earlier this month. “But I will tell you that if I did, it’s a smart thing. If I’m friendly with people, if I can have a relationship with people, that’s a good thing and not a bad thing in terms of a country.”

Meanwhile, in the NBC interview, Vance insisted that the US would remain in the NATO military alliance under a Trump presidency.

But he also went on to say Americans “can’t be the policemen of the world,” claiming some NATO members, including Germany, need to spend more on defense, echoing Trump’s words.

“I think a very significant difference between Kamala Harris and Donald Trump is Kamala Harris would like to use our tax dollars and our troops to subsidise Europeans not taking care of their own security,” Vance said. “Donald Trump wants Europe to step up big time to become a real ally of the United States and not just a dependent.”

This year, Germany met NATO’s target for members to spend at least 2% of their GDP on defence spending for the first time since the end of the Cold War in response to the Ukraine-Russia conflict, according to Reuters.

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