‘Politically Suicidal’: John McDonnell Warns Reeves Spending Cuts Could Cause Recession

Posted on 14/01/2025 by Boris Clair

John McDonnell has warned Rachel Reeves that any public spending cuts would be “politically suicidal” and risk tipping the UK into recession.

The former shadow chancellor said Labour should instead increase taxes on the wealthy.

Keir Starmer yesterday said the government will be “ruthless” in sticking to its fiscal rules as he repeatedly refused to rule out further spending cuts.

Treasury sources have also told HuffPost UK that the chancellor is determined to have an “iron grip” on the public finances.

Reeves finds herself under intense pressure as the value of the pound falls, government borrowing costs soar and inflation goes up.

On Radio 4′s Today programme this morning, McDonnell said any cuts to Whitehall budgets would be counter-productive.

He said: “There is obviously a problem. There is turbulence in the international markets and we’ve just got to see those through.

“The way you do that is you don’t turn to cuts. Not only would that be politically suicidal, it would undermine the political support upon which Labour got elected.

“In addition to that you would be taking demand out of the economy and you would be looking at, in doing that, turning a crisis into a recession.

“So I think you just need to see through the turbulence that is in the markets and in this instance we need to look to the Bank of England to intervene if necessary.”

McDonnell said Labour was wrong to rule out putting up income tax on the rich, or putting up corporation tax.

And he said Reform UK stood to benefit if cuts led to more voter disillusionment with the political process.

He added: “When we were preparing for government, we were looking to the bank of England to see us through the turbulence.

“There are two groups of people who make judgments on an incoming government. One is the international money markets, but the most important people are the electorate.

“I think what has to happen here is the electorate have to be protected, otherwise I’m afraid we’re looking at a level of disillusionment which then turns people towards Reform and I think that would be a disaster for the country.

“We have to look to what the response from the electorate would be to another round of cuts.”

McDonnell also warned that more cuts to the welfare budget, as Reeves is thought to be considering, would “force more into poverty and cause real hardship”.

He added: “When you’re in this situation, those with the broadest shoulders should carry the heaviest burden. I would look at increasing income tax on the wealthiest, but I would look at an honest discussion on how we tax wealth in our country.

“That way you can overcome these problems that we have in the markets because you’ll have a solid tax base.”

Exclusive: Labour Benefit Cap Rebels Warned They Face Fresh Crackdown As Winter Fuel Payment Vote Looms

Posted on 06/09/2024 by Boris Clair

Seven MPs suspended by Labour could face a fresh crackdown by party bosses if they vote against the government’s decision to means test winter fuel payments, HuffPost UK can reveal.

John McDonnell, Richard Burgon, Zarah Sultana, Ian Byrne, Apsana Begum, Imran Hussain and Rebecca Long-Bailey had the party whip taken off them for six months in July after they defied Keir Starmer to back calls for the two child benefit cap to be scrapped.

However, they are still expected to vote with the government while they serve their suspension.

A party source said: “Their suspension letter says they are still expected to follow the Labour whip, which they are sent weekly.”

Ministers have agree to a Commons vote next Tuesday on chancellor Rachel Reeves’ controversial decision to remove winter fuel payments from around 10 million pensioners.

Two of the seven rebels – McDonnell and Sultana – have already said they are prepared to vote against the government again unless ministers water down their plans.

Four others – Burgon, Hussain, Byrne and Begum – have also signed a Commons motion calling on ministers to U-turn.

Sultana told HuffPost UK: “I’m planning to vote to keep pensioners out of fuel poverty as I did with voting to lift the two child benefit cap to keep children out of poverty.

“I look forward to the process about the whip concluding in January.”

McDonnell said: “I have told the whips that unless the government comes up with a serious change in its proposal, I will vote against.”

But HuffPost UK has learned that if they do vote against the government, they are unlikely to get the Labour whip back when their current suspension ends in January.

A Labour source said: “It is a shame that some MPs who were only too happy to ride the coat tails of the party’s success at the election are now using the incredibly difficult things we have to do to yet again undermine the government and their colleagues.

“If they are more comfortable hanging out with Jeremy Corbyn and his friends, they should just be honest about it.”

Labour insiders fear as many as 20 of the party’s MPs could rebel on Tuesday, however at this stage there are no plans to take the whip off them.

Covid Vaccine Passports: Boris Johnson Facing Tory Rebellion Over Certification Scheme

Posted on 02/04/2021 by Boris Clair

More than 70 MPs as well as peers from the House of Lords have launched a campaign claiming coronavirus vaccine passports would be “divisive and discriminatory”.

The cross-party opposition includes 40 Tories and former Labour leader Jeremy Corbyn.

A pledge has been signed by Conservative former leader Sir Iain Duncan-Smith, Labour former shadow chancellor John McDonnell and ex-Lib Dem leader Tim Farron.

It has also been backed by a string of Tory former ministers including Esther McVey, Nus Ghani, Mark Harper and Harriett Baldwin.

Former shadow attorney general Baroness Shami Chakrabarti said the scheme would be “dangerous, discriminatory and counter-productive”.

The government has insisted no final decisions have been taken on whether Covid-status certification could play a role in reopening the economy.

It comes as a report in The Daily Telegraph suggested a series of pilot tests for certificates were being planned, which could include the FA Cup final and other sporting events in May.

Boris Johnson has defended the idea and suggested a certificate could give “maximum confidence” to businesses and customers as society reopens.

Any scheme is likely to go beyond just showing whether someone has had a vaccine – as jabs are not mandatory – covering whether they have had Covid-19, and so are likely to have antibodies, or if they have a negative recent test.

Baroness Chakrabarti, the former director of human rights organisation Liberty, told BBC Radio 4’s Today programme: “It’s dangerous, it’s discriminatory, it’s counter-productive.”

The Labour peer warned that using coronavirus certificates could create a “checkpoint Britain” as she urged for the country to “open up together” as restrictions ease.

“It’s one thing to have a passport to travel internationally, that is a privilege, even a luxury, but participating in local community life is a fundamental right,” she added.

The group’s pledge has been backed by Big Brother Watch, Liberty, the Joint Council for the Welfare of Immigrants (JCWI) and Privacy International.

Senior Tory MP Sir Graham Brady, who is also a signatory to the pledge, which has been backed by a string of Conservative former ministers, insisted the aim should be to return to normal life.

The chair of the 1922 Committee of backbench Conservative MPs said: “Covid-status certification would be divisive and discriminatory.

“With high levels of vaccination protecting the vulnerable and making transmission less likely, we should aim to return to normal life, not to put permanent restrictions in place.”

Earlier this week, Labour leader Keir Starmer indicated there could be opposition to the move among the public if death rates are near zero and hospital admissions are very low.

A government spokeswoman said: “The review is considering a range of issues, including the ethical, equalities, privacy, legal and operational aspects, and what limits, if any, should be placed on organisations using certification.”

Emma McClarkin, chief executive of the British Beer and Pub Association, said that introducing vaccine passports could potentially “scupper things” for hospitality venues which are trying to reopen.

On the possible use of coronavirus certificates, she told BBC Breakfast: “This would be an additional burden put on to the pubs. We are desperate to get back open again. We are desperate to do that.

“We will play our part in test and trace but the additional burden of the vaccine passport could really, really scupper things.

“It is a difficult process for us to implement in venues and yet today we have not had a consultation with the government about how we would do this in pubs.”

Second Lockdown: Critics Slam Government’s ‘Staggering Incompetence’

Posted on 31/10/2020 by Boris Clair

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What Does The ‘Defend Julian Assange’ Campaign Say About The Labour Leadership?

Posted on 20/02/2020 by Boris Clair

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Where Is Boris Johnson? Running The Country Like He Ran London

Posted on 07/01/2020 by Boris Clair

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