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The Guardian - UK
The Guardian - UK
Politics
Andrew Sparrow

Rachel Reeves says new government has inherited ‘worst set of circumstances since second world war’ – as it happened

Sir Keir Starmer Darren Jones Michelle ONeill Emma LittlePengelly Rachel Reeves Wes Streeting Belfast Northern Ireland the House of Commons

Green co-leader Adrian Ramsay defends wanting pause in plan to put pylons through his constituency carrying wind energy

Adrian Ramsay, the Green party’s co-leader, has defended his decision to call for a pause in plans to build pylons in his Waveney Valley constituency in Suffolk to carry energy from offshore wind pylons to other parts of the country.

In an interview with Radio 4’s PM programme, Ramsay said he wanted to see a proper options assessment to assess how the windfarms could be connected to the grid.

When it was put to him that, as a Green MP, he could not oppose offshore wind being taken to where the energy was needed, by the most cost-effective method, Ramsay said he had a background working in renewable energy. He would be arguing for more focus on renewables, he said. “But we’ve got to connect it in the right way,” he said. He said an offshore grid should be considered.

Asked if he could say he would not oppose the pylons plan if a proper appraisal showed that was the cheapest and most effective option, Ramsay said he did not think a proper options assessment had been carried out.

Evan Davis, the presenter, put it to Ramsay that he was ducking the question. In response, Ramsay said he wanted a proper options assessment. He claimed time was available for this.

Updated

Keir Starmer has posed for a picture with fellow Labour MPs elected last week. The party won 412 seats, its third highest total on record.

Keir Starmer has described the future of Tata Steel as being of “great concern” following a meeting with the Welsh first minister on the final stop of his tour of the devolved nations, PA Media reports. PA says:

The prime minister visited the Senedd in Cardiff Bay on Monday to meet Vaughan Gething, the leader of Wales, and Jo Stevens, the secretary of state for Wales, PA said.

Starmer had been due to speak to reporters on the balcony of the Senedd, overlooking Cardiff Bay. However, a small but noisy crowd of around a dozen pro-Palestinian protesters outside the Welsh parliament forced interviews to be moved to the fifth floor.

Speaking to broadcasters, Starmer said:

It’s very important to me to reset relations with Scotland, Northern Ireland and Wales, because I want to make sure that we collaborate, there’s mutual respect and trust.

Here in Wales it’s particularly important because what I said before the election is that a Labour government would be a game changer, because you would have a UK government, working with the Welsh government, delivering for Wales, rather than the conflict.

This is an early recommitment to what I said in the campaign … to have discussions with the first minister about the long-term objectives and of course, about some of the pressing issues, including Tata Steel, which is of great concern to me, to the first minister and to so many people here in Wales.

There are many things that indicate when power shifts in the UK, but few things symbolise it more effectively than the removal van in Downing Street. There were two of them there this morning, as the post-election housing handover carried on.

Plaid Cymru calls for 'meaningful reset' in relations between UK government and Wales

“Reset” seems to be the word of the day. Keir Starmer has been flying around all corners of the UK promising a reset in relations with the devolved governments. Plaid Cymru are saying it must be a “meaningful reset”. This is from Rhun ap Iorwerth, the Plaid leader, who has been meeting his party’s four MPs at Westminster. Ap Iorwerth said:

We made it clear during the campaign, and we make it clear right now, as soon as we can after the government has been formed, that we will hold them to account on behalf of not just the people in the constituencies that we represent but on behalf of all of Wales.

Sir Keir Starmer tells us that he wants to reset the relationship between UK government and Welsh governments, to reset the relationship presumably between the UK government and Wales, but what we say today is that has to be a meaningful reset.

Labour have shown time and time again that they want to cast aside our aspirations on fair funding, on more powers. Our four MPs will not allow that to happen.

Updated

Voter ID rule may have stopped 400,000 taking part in UK election, poll suggests

More than 400,000 people may have been prevented from voting in the general election because they lacked the necessary ID, with those from minority ethnic communities more than twice as likely to have experienced this, polling has suggested. Peter Walker has the story.

Tories claim Reeves' review of 'spending inheritance' implies Labour planning more tax rises

The Conservative party is claiming that Rachel Reeves’s speech this morning implies tax rises are on their way. In response to the passage in the speech where the chancellor said she had commissioned a Treasury review of the “spending inheritance” left by the previous government (see 10.49am), a Tory spokesperson said:

Rachel Reeves herself said you don’t need to win an election to find out the state of the public finances, admitting that with the OBR, there is already detailed public scrutiny of the country’s finances.

We warned that Labour would attempt this ruse as a cause to raid pensions and raise taxes. It is now clear that is coming to pass, and the British people will pay the price.

The spokesperson pointed out that, in an interview during the election campaigin, Reeves told the Financial Times she did not need to wait until taking office to know what the state of the public finances were like. She said:

We’ve got the OBR now. We know things are in a pretty bad state. You don’t need to win an election to find that out.

Tom Clark from Prospect has an explanation for the apparent contradiction.

Before election Reeves said in a world where OBR produced tax & borrowing numbers she couldn’t “open the books” & pretend to find they were worse than feared

But OBR’s work on spending is circumscribed. HMT officials will now review this & duly find outlook “worse than feared”

Ed Davey, the Lib Dem leader, had a meeting with his new MPs at Westminster today. There are 72 of them, a record for the party in its modern form. He told them:

We are here, each and every one of us, because our constituents have put their trust in us to be their local champions.

That trust was hard won. We have spent years rebuilding people’s trust in our party. By speaking for them, listening to their concerns and focusing on the things that matter most to them.

The cost of living crisis, the sewage scandal, and most of all the NHS and care.

We must repay their trust by doing exactly what we said we would do.

Working hard for our communities, all year round.

Education secretary Bridget Phillipson tells teachers she wants 'reset' in their relationship with central government

Bridget Phillipson, the education secretary, has released an open letter to teachers and others in the education workforce saying she wants a “reset” in their relations with central government.

In response, the teaching union, the National Education Union (NEU), has urged to address the issue of the 2024/5 teachers’ pay offer which is still outstanding.

NEU members took part in a series of national strikes over pay last year, which were called off when the government made an improved offer of 6.5%. The leadership has warned the new administration that teachers in England and Wales could go on strike again if their demands for a fully funded, above-inflation pay rise are not met.

Daniel Kebede, the NEU general secretary, said:

We are looking forward to starting a journey of renewal with government, and to meeting Bridget Phillipson formally in her new role as education secretary.

The pay issue is on her desk. It was a complete abdication of [former education secretary] Gillian Keegan’s duty not to publish the school teachers review body report [which makes pay recommendations]. We need to know what teachers are being offered this year, and head teachers must be able to plan budgets.

The teacher recruitment and retention crisis is deep and severe. Workload is an enormous challenge too – teaching is simply not compatible with family life any more.

The NEU will be asking the new secretary of state to establish an independent commission into recruitment and retention that could make recommendations to restore the profession over the course of this parliament.

In her open letter to teachers, Phillipson said:

The scar of child poverty, severe financial pressures squeezing all your budgets, high workload, climbing vacancy rates, strain on care, mental health and SEND services, among many other issues, have made your jobs increasingly difficult.

This is a tough inheritance – none of these have quick and easy solutions but I will work with you and for you to find practical ways forward.

Keir Starmer has said Emily Thornberry has a “big part to play” in Labour after she said she revealed she was “very sorry and surprised” not to to be made attorney general. (See 11.45am.)

Speaking to reporters in Wales, Starmer said:

I’m putting together a very strong team based on delivering.

We got a very strong mandate at the general election, a mandate for change, a mandate for doing politics differently, and about service. That’s why I’m putting my team together.

Emily Thornberry has been fantastic, she’s got a big part to play, as has every single one of my now 412 Labour MPs.

Nick Thomas-Symonds is, in effect, the next Brexit minister. Officially his title is “minister for the constitution and European relations”, but he is based in the Cabinet Office, not the Foreign Office, and “European relations” these days means resolving post-Brexit trade issues. He posted this on X after a call with Maroš Šefčovič, the European commission vice-president who serves as the EU’s lead negotiator with the UK on Brexit matters.

Good to speak to @MarosSefcovic and discuss the importance of the unique partnership between the UK and EU.

We agreed to meet soon to discuss how we can strengthen co-operation and reset the relationship.

Key event

Energy secretary Ed Miliband has written to his departmental staff, outlining Labour’s energy strategy for the years ahead.

Cutting bills features heavily in the note he wrote to colleagues in the Department for energy security and net zero (Desnz). Miliband said:

The reason I’m so excited to have been appointed to this role is because it speaks directly to the twin passions that continue to motivate me. First, resolving the economic inequality that scars the country, and second tackling the climate crisis that imperils our world.

He added that the department is at the “heart of the government’s agenda” and this rings true; publicly owned energy company GB energy is one of the main policies campaigned on during the general election campaign, and one of the government’s first actions was ending the onshore wind ban.

Miliband said:

Families and businesses across the country are still struggling with energy bills that are too high and are expected to rise again in the autumn. In an unstable world, the only way to guarantee our energy security and cut bills permanently is to speed up the transition away from fossil fuels and towards homegrown clean energy.

He also laid out his priorities for the department, which are: “delivering our mission to boost energy independence and cutting bills through clean power by 2030; taking back control of our energy with Great British Energy; upgrading Britain’s homes and cutting fuel poverty through our warm homes plan; standing up for consumers by reforming our energy system; creating good jobs in Britain’s industrial heartlands, including a just transition for the industries based in the North Sea; and leading on international climate action, based on our domestic achievements.”

Miilband added that he was Labour’s energy secretary from 2008-10, so helming Desnz “feels like coming home”.

Several newly elected Labour MPs have criticised the reliability of train services after suffering disruption during journeys to take their seats in the House of Commons, PA Media reports.

This is from Paul Foster, the MP for South Ribble.

This is from Claire Hughes, MP for Bangor Aberconwy.

Andrew Ranger, MP for Wrexham, posted this reply to Hughes.

Avanti was not the only service to let new MPs down. This is from Josh Fenton-Glynn, MP for Calder Valley.

This is from Kirith Entwistle from Bolton North East.

And this is what Henry Tufnell, MP for Mid and South Pembrokeshire, posted on X yesterday.

Free market thinktanks, including Institute for Economic Affairs, praise Reeves's speech on easing planning controls

The Centre for Policy Studies is not the only rightwing, free market thinktank that has welcomed Rachel Reeves’ speech. (See 1.38pm.) The Institute for Economic Affairs, which was Liz Truss’ favourite thinktank, is also enthused by the plan to ease planning restrictions (although it would like Reeves to go further). It has released a statement saying:

Rachel Reeves is right to emphasise the importance of growth in tackling Britain’s challenges. Everything from funding public services to a higher quality of life is possible with more growth.

Undoubtedly, the most exciting part of the agenda is the government’s immediate plans to reform the planning system, including restoring housing targets, cutting red tape for major projects and ending the de facto ban on the on-shore wind. The emphasis on using powers to promote growth could unlock major opportunities. But this must be the floor, not the ceiling, of the government’s ambitions. Far more reform will necessary to be done to solve the housing crisis.

And the Adam Smith Institute also says Reeves is heading in the right direction.

It has been harder to find reaction to the speech from leftwing thinktanks. But the New Economics Foundation has issued a statement criticising Reeves’ decision to rule out raising money for the Treasury by cutting interest payments paid to banks that hold money with the Bank of England (see 11.05am). Hannah Peaker, director of policy at the NEF, said:

If we want to see decent growth again, our new government can’t be afraid to spend. A new government has plenty of ways to raise money, from borrowing responsibly to taxing the wealthiest to scrapping stealth subsidies to banks.

Remaining wedded to outdated and arbitrary fiscal rules will hold our economy back. Our fiscal rules aren’t an accurate measure of how much a government can responsibly borrow — and the chancellor could choose to replace them with the wave of a pen.

Updated

The Greens have celebrated their election haul of four MPs with a joint photoshoot opposite parliament, promising to put pressure on Labour in areas including the environment, housing and wealth taxes.

Carla Denyer, Adrian Ramsay, Siân Berry and Ellie Chowns hugged each other in delight as they arrived on College Green, having not seen each before the election, which saw the party win handsomely in all of the seats they had been targeting.

Berry had been the favourite to retake the Greens’ sole previous seat of Brighton Pavilion, held by the now-departed Caroline Lucas since 2010, while Denyer, one of the co-leaders, had been tipped to win in the similarly urban-bohemian enclave of Bristol Central, where she ousted Labour’s Thangam Debbonaire.

But the party also won two more rural seats against primarily Conservative opposition: Ramsay, the other co-leader, in Waveney Valley, which straddles the Norfolk-Suffolk border, and Chowns in North Herefordshire.

Speaking to the Guardian after the photos, Denyer said winning all four seats had been seen as possible, but “it certainly wasn’t guaranteed”. She said: “Based on both polling and our own door knocking data, it was looking pretty close, right up to the last minute.”

One impact of moving from one to four MPs is that the Greens will, for the first time, need a party whip, Denyer said.

The Green party is a bit different in that we don’t whip our members on how they vote. But we still need that role to do inter-party negotiations about who gets to sit on which committee. So having a discussion about who gets that role is one of the things on the to-do list for this week, alongside getting a password to get how to connect to the wifi and all that normal first day at work stuff.

Asked what areas she hoped to pressure the Labour government on, Denyer said for her this included the climate, housing – “a massive issue”, she said, in her constituency – and better funding for public services, such as introducing wealth-based taxes, ruled out by Labour. She said:

It’s been disappointing to see Rachel Reeves already today repeating the, ‘There’s no magic money tree’ line when Labour have completely refused to consider ways that they could raise funds that would allow us to properly fund our public services.

Here is more from Robert Colvile from the Centre for Policy Studies on the Rachel Reeves’ speech.

Small bit of Kremlinology - worth noting that it’s Reeves who has announced the housing/planning stuff. Not that Rayner isn’t on board, but this is very clearly a core Treasury priority in a way that greatly amplifies its salience within Whitehall.

And this is from Ed Conway from Sky.

Also worth noting Rayner, Miliband, Reynolds, Kyle and others were there in the front row for the announcement this morning.
That “united front” was one of the main things biz leaders who went along were remarking on afterwards

Developers welcome Reeves' decision to relax planning rules

Housebuilders and property developers have welcomed the announcements from Rachel Reeves today. (See 12.44pm.)

This is David Thomas, chief executive at Barratt Developments, a property company.

We welcome the government’s commitment to reform of the planning system and their drive for growth. Building more new homes will bring huge economic and social benefits to the UK, and it is vital that local and central government are united with industry to plan positively to deliver high quality new homes and developments across the country.

This is from Melanie Leech, chief executive at the British Property Federation.

It’s very positive to see the new government hit the ground running on planning reform.

Housebuilding targets are a clear statement of intent and will help accelerate delivery. We need to build more homes of all tenure and type and so we urge the government to also consider bold targets for build-to-rent and affordable housing specifically. Housebuilding targets need to be supported with extra capacity in the planning system, so it’s good to see Labour also restate their commitment to get more planners in.

And this is from Daniel Browne, real estate and construction partner at Kingsley Napley a law firm.

Today’s announcement by Rachel Reeves will be very welcome to our developer clients.

A promise to increase planning officials across the country will help to ease delays in planning decisions but the real gamechanger is the review of green belt land. This will create new opportunities to build more houses, new towns and commercial hubs and should unlock investment and economic growth, first through a build and construction phase then later through the new purpose area when complete.

With a rising environmental lobby this may not be all plain sailing but developers will certainly be thinking afresh from today about the possibilities ahead and where they might be able to access land and spaces that was previously off limits.

Updated

The full text of Rachel Reeves’ speech this morning is now on the Treasury’s website.

The Centre for Policy Studies, a pro-Tory thinktank run by Robert Colvile, a co-author of the 2019 Conservative party manifesto, has released a statement praising Rachel Reeves’ speech on growth and planning. (See 12.44pm.) Colvile said:

Rachel Reeves is absolutely right to focus on the need for growth, and reforming the planning system as key to unlocking that growth. The devil will be in the detail, but today’s announcements on speeding up infrastructure delivery and holding councils’ feet to the fire on housebuilding are both welcome and extremely necessary – as the Centre for Policy Studies has long argued. Indeed, this agenda needs to be a cross-party priority.

We also welcome the new chancellor’s recognition that attracting private sector investment should be at the heart of Britain’s economic strategy – which is why we urge her not to undermine her own efforts by raising taxes on businesses, entrepreneurs and overseas investors in her forthcoming budget.

Updated

Turning back to Emily Thornberry not being made attorney general (see 11.45am), in a good column on the decision for the i, Anne McElvoy says this was Keir Starmer being ruthless, but not personal. McElvoy says:

This is strictly business, rather than personal. “Keir likes Emily. She’s a ‘war horse’ who has stuck it out in the opposition years,” says one senior barrister who knows both of them professionally. “But Keir has been director of public prosecutions and has a high opinion of his legal ability at the top level. And if you ask me whether he would take Emily’s advice over another in a crisis, the answer I’m afraid, was always going to be, ‘No.’”

Appointing [Richard] Hermer, one of the top public law figures who has been involved in fiendishly difficult issues – from proposed disinvestment in Israel to whether Sinn Féin’s former leader Gerry Adams could be sued by IRA victims (he argued not) – gives Starmer seasoned support in areas that might become an issue in his premiership.

These range from a proposal by the International Criminal Court to open up arrest proceedings against Israel’s leader Benjamin Netanyahu over the conflict in Gaza, to where the line lies on arming and advising Ukrainian forces fighting Russia and at what point the UK is judged to have entered the war as a participant.

At the last Labour conference Anneliese Dodds said that, if the party won the election, she would “become the UK’s first ever secretary of state for women and equalities”, sitting in cabinet.

Dodds does have the women and equalities brief. (See 10.41am.) But she is not a secretary of state, and she is not a full member of cabinet.

At the Downing Street lobby briefing, asked why this promise had not been kept, the PM’s spokesperson said he could not comment on political matters, but he said Dodds would be attending cabinet and taking forward all the commitment on equalities set out in the manifesto.

Updated

Starmer promises to bring stability to Northern Ireland

Keir Starmer has promised to bring stability to Northern Ireland after receiving a warm welcome from all the main party leaders at Stormont.

The prime minister said he had a mandate for change and “a different way of doing politics” after Conservative-era turmoil. Speaking to reporters in Belfast he said:

One of the big problems of the last 14 years, but particularly the last six to eight years, has been instability, a lot of chopping and changing. That all ends today.

Starmer reiterated a pledge to repeal the controversial Legacy act that offers conditional amnesty to soldiers and paramilitaries involved in the Troubles and said he would “reset” relations with the Irish government. Dublin has taken a legal case in the European court of human rights against the legislation, which is also opposed by Northern Ireland’s political parties.

Starmer batted away a question on a potential referendum on Irish unification by saying he was “absolutely committed to the Good Friday agreement”, which calls for a referendum if a majority appears to favour unification, a condition not currently met.

The prime minister had back-to-back meetings with the leaders of Sinn Féin, the Democratic Unionists, Ulster Unionists, Alliance and the SDLP. All expressed hope for a new start in relations with London and more funding for public services.

Ed Miliband, energy secretary, has posted this on X about the lifting of the de facto ban on new onshore wind projects (see 12.01pm), saying it was an example of a bad Tory decision that put up energy bills.

This government was elected with a mandate to take immediate action to boost Britain’s energy independence.

The onshore wind ban is a symbol of how bad decisions in the last fourteen years have put up energy bills for families.

Today, it ends.

Why Reeves claims she's done more to unblock planning system in 72 hours than Tories did in 14 years

In her speech this morning Rachel Reeves, the chancellor, gave details of seven policies the government is pursuing to relax planning rules and promote development. She said she had done more to unblock the planning system in 72 hours than the Tories did in 14 years.

The speecy is not on the Treasury’s website yet, but here is the key passage.

Today, alongside the deputy prime minister [Angela Rayner], I am taking immediate action to deliver this Labour government’s mission to kickstart economic growth, and to take the urgent steps necessary to build the infrastructure that we need, including 1.5m homes in the next five years.

The system needs a new signal. This is that signal.

First, we will reform the national planning policy framework, consulting on a new growth-focused approach to the planning system before the end of the month, including restoring mandatory housing targets.

And as of today, we are ending the absurd ban on new onshore wind in England. [See 12.01pm.]

We will also go further and consult on bringing onshore wind back into the nationally significant infrastructure projects regime, meaning decisions on large development will be taken nationally, not locally.

Second, we will give priority to energy projects in the system, to ensure that they make swift progress. And we will build on the spatial plan for energy by expanding this to other infrastructure sectors.

Third, we will create a new taskforce to accelerate stalled housing sites in our country, beginning with Liverpool central docks, Worcester Parkway, Northstowe and Langley Sutton Coldfield, representing more than 14,000 homes.

Fourth, we will also support local authorities with 300 additional planning officers across the country.

Fifth, if we are put to put growth at the centre of our planning system, that means changes not only to the system itself, but to the way that ministers use our powers for direct intervention.

The deputy prime minister has said that when she intervenes in the economic planning system, the benefit of development will be a central consideration, that she will not hesitate to review an application with a potential gain for the regional and national economies warranted.

And I welcome her decision to recover two planning appeals already, for data centres in Buckinghamshire and in Hertfordshire.

To facilitate this new approach, the deputy prime minister will also write to local mayors and to the Office for Investment to ensure that any investment opportunity with important planning considerations that comes across their desks is brought to her attention and also to mine.

The deputy prime minister will also writes to local planning authorities alongside the national planning policy framework consultation, making clear what will now be expected of them, including universal coverage of local plans and reviews of green belt boundaries. These will prioritise brownfield and grey belt land for development to meet housing targets where needed.

And our golden rules will make sure that the development this frees up will allow us to deliver the thousands of affordable homes soon, including more for social rents.

Sixth, as well as unlocking new housing, we will also reform the planning system to deliver the infrastructure that our country needs.

Together, in these early days of this new Labour government, we will ask the secretary of state for transport and the secretary of state for energy security and net zero to prioritise decisions on infrastructure projects that have been sitting unresolved for far too long.

And finally, we will set out new policy intentions for critical infrastructure in the coming months, ahead of updating relevant national policy statements within the year.

I know that there will be opposition to this. I’m not naive to that. And we must acknowledge that trade offs always exist. Any development may have environmental consequences, place pressure on services, and rouse voices of local opposition.

But we will not succumb to a status quo which responds to the existence of tradeoffs by always saying no, and relegates the national interest below other priorities.

This Labour government has been elected on a mandate to get things done, to get Britain building again. We will make those tough decisions to realise that mandate.

With these steps, we have done more to unblock the planning system in the past 72 hours than the last government did in 14 years.

Updated

Yesterday Marcus Fysh, the former Tory MP, said the Conservative party was not a “viable entity” any more and that “it should no longer exist”. Anyone using X today might conclude Fysh has got his wish, because the Conservative party’s official X feed says the account does not exist.

But the Tories aren’t being closed down. According to party source, this is just a glitch with X, affecting various accounts, and they are trying to sort it out.

Green groups welcome Reeves' decision to end de facto ban on new onshore wind projects

In her speech this morning Rachel Reeves, the chancellor, said the government is removing the de facto ban on new onshore wind projects.

The ban was enforced by two footnotes to the national planning policy framework (NPPF), the rules which govern the building of homes and infrastructure. T

These footnotes only applied to onshore wind, no other type of infrastructure, and they required such strong proof there was no opposition from the local community that it made building the turbines impossible, as there is always some opposition to any form of building within communities.

In Labour’s proposed NPPF these footnotes have been deleted in their entirety, meaning that onshore wind projects are now on an even footing with all other forms of infrastructure.

Environment and energy groups have responded with delight.

Mike Childs, head of science, policy and research at Friends of the Earth, said:

By ending the onshore wind ban in England, Labour is making an important stride towards delivering on our climate goals, while also paving the way for lower bills, as renewables produce some of the cheapest and cleanest energy available.

In April, research by Friends of the Earth found that utilising less than 3% of land in England for onshore wind and solar could produce 13 times more clean energy that currently generated – enough to power all households in England twice over. By harnessing the country’s vast renewable power potential, the new government is staking its claim as a global leader in the green energy transition.

Sam Richards, CEO of pro-growth campaign group Britain Remade and former environmental adviser to Number 10, added:

The only way we are going to see the growth Britain desperately needs is if we make it significantly easier to build the homes and the new sources of clean energy needed to reach net zero. During the election Labour promised to fix our outdated and sclerotic planning system to just that, and with this speech the new chancellor is hitting the ground running.

Updated

Emily Thornberry says she is 'very sorry and surprised' not to become attorney general, job she shadowed

Keir Starmer has, so far, mostly appointed ministers to do jobs that they were shadowing in opposition. But one exception is the attorney general. Emily Thornberry was shadow attorney general, but on Friday No 10 announced that Richard Hermer KC is geting the job, as well as a peerage so that he can serve in government from the House of Lords.

Thornberry does not seem to be getting an alternative job. She has released a statement this morning saying that she is “very sorry and surprised” not to be attorney general, but that Hermer is a “much more accomplished lawyer” than she is.

There was a transcription error in the post at 10.49am. Rachel Reeves said that the economic inheritance was as bad as expected, but she did not say there was no money left. I’m sorry for the mistake.

Q: Will HS2 go to Leeds?

Reeves says in opposition she did not make promises without knowing where the money would come from. That same approach will apply in government, she says.

And that is the end of the Q&A.

Q: If the pay review bodies recommend big pay rises, do you have enough money to fund those?

Reeves says she will be presenting to parliament the Treasury’s assessment of the state of the public finances before the end of this month.

With public sector pay, there is a process. She will go through that.

She says the government will have to take “difficult decisions” because of the “mess left by our predecessors”.

But she wants to turn things round, she says.

Reeves says Tories were the 'anti-growth coalition'

Q: Liz Truss said there was an anti-growth coalition. Do you agree?

Reeves says the Tories were the anti-growth coaliton. The voters kicked them out.

Q: Will your plans for new housing include energy efficiency standards?

Reeves says that will be a matter for the housing deparment. But the government is committed to energy efficiency, she says.

Updated

Q: Are you worried about the OBR downgrading its growth foreceast?

Reeves says she hopes people will see from her plans that she is serious about growing the economy. The OBR is forecast growth at about one and two thirds per cent a year. She wants to improve that.

Q: Will you change the interest paid on Bank of England reserves?

Reeves says she does not have any plan to do that.

Q: Will you encourage people to downsize?

Reeves says the government wants to increase the supply of homes, so that if people want to downsize, they can. She wants to give people choice.

Q: Will the budget be nearer to September or November?

Reeves says it will be in the autumn. She will set out the date before the summer recess.

Q: We have not built 300,000 new homes a year since the 1950s. When will you be able to reach this target? And will you tweak targets so they go in the right place?

Reeves says she is announcing new homes today. They are spread around the country.

The government will deliver on its manifesto commitment, she says.

She says people cannot be in doubt about the seriousness of the government’s intent.

Updated

Q: You are not the first chancellor to promise economic growth. Every chancellor promises this. When will this happen? By the end of this parliamentary term? Or 10 years?

Reeves says there is no time to waste. That is why she is giving this speech after 72 hours. The government has a mandate for change.

And she has already had a report from the national wealth fund taskforce. She will be responding to that in due course, she says.

She says she cannot change things overnight. But she is working on change.

It is fine to say you want growth. But you have to “will the means”, she says. She says those difficult decisions have been ducked over the past 14 years.

Reeves says she does support development, and has done as a local MP.

She says there are projects that have been stalled that will now go forward.

But “this is not a green light for any type of housing”, she says.

Reeves says local communities will not be able to always say no to new housing under government's plans

Rachel Reeves has finished the speech, in which she confirmed a range of measures to speed up planning. I will post a full summary shortly.

She is now taking questions.

Q: Are you declaring war on Nimbies (“Not in my back yard” – a term for people who oppose new developments)?

Reeves says it will still, in the first instance, be up to local communities to decide where homes can be built. But the answer cannot always be no. If it is always no, the status quo will continue. Reeves says she is not willing to tolerate that.

Labour wants to promote home ownership, she says.

She says affordable and socially rented homes will be included in the plans.

Reeves says she will make statement to MPs before summer recess on 'spending inheritance' left by Tories

Rachel Reeves is delivering her first major speech as chancellor.

She started by announcing that before the summer recess she will make a statement to MPs about the government’s spending inheritance. She said what she has seen in her first 72 hours confirmed that the economic situation was as bad as she thought.

She said:

I have repeatedly warned that whoever won the general election would inherit the worst set of circumstances since the second world war.

What I have seen in the past 72 hours has only confirmed that. Our economy has been held back by decisions deferred and decisions ducked. Political self-interest put ahead of the national interest. A government that put party first and country second.

We face the legacy of 14 years of chaos and economic irresponsibility.

That is why over the weekend, I instructed Treasury officials to provide an assessment of the state of our spending inheritance so that I can understand the full scale of the challenge. And I will present this to parliament before the summer recess.

This will be separate from a budget that will be held later this year. And I will confirm the date of that budget alongside a forecast from the Office of Budget Responsibility in due course.

This sounds like a major “blame the Tories’” exercise. In an extract from the speech released in advance, she said taxpayers were losing out because of the way growth stalled under the last government. She said:

New Treasury analysis I requested over the weekend exposed the opportunities lost from this failure.

Had the UK economy grown at the average rate of OECD economies since 2010, it would have been over £140bn larger.

This could have brought in an additional £58bn in tax revenues last year alone to sustain our public services.

It falls to this new government to fix the foundations.

UPDATE: There was a transcription error in an earlier version of this post. It said that what the Treasury had found in the past 72 hours showed there was “no money left”. That phrase was wrongly included by mistake, and has now been removed from the quote above.

Updated

No 10 announces 18 minister of state appointments

Downing Street has anounced a number of government appointments at minister of state levels. Ministers of state are middle-ranking minister, one rung below cabinet, although some of the people on this list will be attending cabinet.

Here is the list in full sent out by No 10.

Most of these people are doing jobs that they shadowed in opposition, althought there are some additions and changes.

Anneliese Dodds, who has been shadow secretary for women and equalities, is now a minister of state for women and equalities. But she is also a Foreign Office minister. The name plate at cabinet, which she attended on Saturday, said she would be in charge of international development.

And Stephen Kinnock, who was shadow immigration minister, has been given a job as a health minister.

· Anneliese Dodds MP as a Minister of State in the Foreign, Commonwealth and Development Office and as a Minister of State (Minister for Women and Equalities) in the Department for Education;

● Rt Hon Nick Thomas–Symonds MP as Paymaster General and Minister for the Cabinet Office (Minister for the Constitution and European Relations) in the Cabinet Office;

● Lord Livermore as Financial Secretary to the Treasury;

· Stephen Doughty MP as a Minister of State in the Foreign, Commonwealth and Development Office;

· Dame Angela Eagle DBE MP as a Minister of State in the Home Office;

· Rt Hon Dame Diana Johnson DBE MP as a Minister of State in the Home Office;

· Lord Coaker as a Minister of State in the Ministry of Defence;

· Rt Hon Maria Eagle MP as a Minister of State in the Ministry of Defence;

· Heidi Alexander MP as a Minister of State in the Ministry of Justice;

· Karin Smyth MP as a Minister of State in the Department of Health and Social Care;

· Stephen Kinnock MP as a Minister of State in the Department of Health and Social Care;

· Catherine McKinnell MP as a Minister of State in the Department for Education;

· Sarah Jones MP as a Minister of State in the Department for Energy Security and Net Zero and the Department for Business and Trade;

● Alison McGovern MP as a Minister of State in the Department for Work and Pensions;

● Rt Hon Sir Stephen Timms MP as a Minister of State in the Department for Work and Pensions;

● Sir Chris Bryant MP as a Minister of State in the Department for Science, Innovation and Technology and the Department for Culture, Media and Sports;

● Lord Hendy of Richmond Hill CBE as a Minister of State in the Department for Transport;

● Daniel Zeichner MP as a Minister of State in the Department for Environment, Food and Rural Affairs.

Anneliese Dodds MP will attend Cabinet.

Scotland's deputy first minister Kate Forbes says this was 'change election', and SNP government must respond

Last night, after his meeting with Keir Starmer in Edinburgh, John Swinney, Scotland’s first minister, posted a video message on social media indicating that he was optimistic that the two governments would be able to work constructively together. In an interview on the Today programme this morning Kate Forbes, Swinney’s deputy, who attended the meeting, said it was “very positive”.

She said Starmer and Swinney talked about substantive issues, “as well as the need for building a mutual respect to our relationship”.

She also said that what Starmer said about wanting to protect jobs at the Grangemouth oil refinery was “really positive”.

Asked how the SNP should respond to its electoral defeat, Forbes said:

The priority now has got to be to listen to the message that the electorate were sending, take some time to reflect on that. And, might I add, the greatest danger is that you become navel gazing, listening to yourself, rather than listening to the electorate.

They want to see change. This was a change election, and that’s what we’re going to do.

You’ll know that John Swinney and I were only in the post for – I think I was in the post for about 10 days before that the election was called. So we had already set out an agenda for that change.

She also said “competence and integrity” had to be at the centre of the SNP’s leadership.

Foreign secretary David Lammy meets his Canadian counterpart, Melanie Joly

David Lammy has met his Canadian counterpart, in the first engagement he has hosted as foreign secretary, PA Media reports. Lammy met with Melanie Joly, Canada’s minister of foreign affairs, on Monday morning.

“Can I thank you so much for being my first official visitor as foreign secretary here in the UK,” he said.

“I have known Canada all of my life, it is a country I love, I have family in Canada, so this means the world to me.”

Lammy stressed the two nations had “the closest of relationships” and said he and Ms Joly had got to know each other while he was serving as shadow foreign secretary.

He added: “Lots to discuss this morning, I can’t tell you how pleased I am that you have made this so special by coming to my first official visitation.”

Although the engagement is the first Lammy has hosted, he has already travelled to Europe for talks with key players, with a promise that the UK would be a “good neighbour” after the years of Brexit acrimony.

Patrick Wintour has written a good account of Lammy’s weekend trip here. Here is an extract.

It did not escape UK officials that after years as the sick man of Europe, the opportunity arises for the country to suddenly look like an oasis of stability, led by a government with at least four years in power and an impregnable majority.

Lammy aimed to come not just with warm words, but with the outline of a plan for an EU-UK security pact. That plan, carefully hatched in opposition, and in some ways reviving ideas that fell by the wayside in the original Brexit negotiations, is more ambitious and wide-ranging than commonly recognised, since security is being defined by the Lammy team in its broadest sense, to cover not just defence, but the web of issues that make up modern-day security, from the climate crisis to energy, pandemics, cyber, investment strategies and critical minerals.

And here is the full article.

Sinn Féin president says she feels 'real optimism' about working with Labour government

Sinn Féin leaders have welcomed the election of the Labour government. Speaking after a meeting with Keir Starmer in Belfast, Mary Lou McDonald, the Sinn Féin president who is leader of the opposition in Ireland, and Michelle O’Neill, the first minister and Sinn Féin leader in Northern Ireland, made it clear that they preferred working with a Labour government at Westminster than a Conservative one. McDonald said:

This is the government that we wish to work with in a constructive way. We are very conscious that, 26 years ago, a British Labour government was at the heart of striking the Good Friday agreement. We want this British government to be at the heart of honoring that agreement, fulfilling that agreement in all of its parts. And we’re going to work very, very constructively for that to happen.

Because the opportunities that the challenges that we face as societies are real and substantial, but the opportunities too are there for us to grasp.

So I think that we need to sound a notion of real optimism today that we can move forward together, that we can work closely together to honor the Good Friday agreement, to ensure that public services are funded correctly here in the north of Ireland, to work on pressing issues like the issue of immigration together. So we look forward to that.

Government does not have 'secret tax plan', says Treasury minister Darren Jones

In his interviews this morning, Darren Jones, the chief secretary to the Treasury, also rejected suggestions that Labour has a secret plan to put up taxes. He said:

There is not a secret tax plan. This was an attack from the Conservatives. It is not a reflection of reality.

Our manifesto commitments, our priorities that we’re now implementing, our first six steps and our missions are funded with the loophole changes that were in the back of the manifesto that people voted for last Thursday.

Local communities will still get say as government changes rules to speed up planning decisions, says minister

Rachel Reeves, the chancellor, is expected to confirm that the new government will relax planning rules in her speech this morning. Giving interviews this morning, Darren Jones, her deputy at the Treasury, said local communities would still get a say in plannng decisions. He told Times Radio:

Local communities will still be involved in the planning process and our policy is not to exclude them.

What we’re talking about today, in which the chancellor will set out in more detail later, is that when in particular it comes to large developments, large national pieces of infrastructure, we need to speed up the decision making process.

That doesn’t mean excluding people’s voices from the decision making process. It just means not waiting years and years and years and then projects being stalled and not delivered as a consequence of inertia in the system.

So people will still be able to contribute their views and they will still be considered within the law in the normal ways but we do want to speed up the delivery of infrastructure.

Starmer holding talks with political leaders in Belfast

Keir Starmer has met Northern Ireland first minister Michelle O’Neill and deputy first minister Emma Little-Pengelly in Belfast, PA Media reports. PA says:

The prime minister is visiting Belfast following his trip to Scotland on Sunday, and will also visit Wales to round off a visit to the three devolved nations.

He arrived at Stormont Castle early on Monday morning as he begins his first full week in office, ahead of travelling to the Nato summit in Washington on Tuesday.

O’Neill and Little-Pengelly greeted Starmer and new Northern Ireland secretary Hilary Benn at the castle entrance before they held a meeting inside. O’Neill congratulated him on his electoral success and they discussed Westminster and Stormont parliamentary schedules.

After half an hour with Stormont’s leaders, the new prime minister then moved on to Parliament Buildings, where he was greeted at the foot of the landmark steps by Assembly Speaker Edwin Poots. He is holding talks with representatives from the main Stormont parties.

'The adults are back in the room’: Treasury minister promises new approach as Starmer’s government starts work

Good morning, and welcome to the first full working day of the new Labour government. Parliament is not sitting until tomorrow, but many new MPs will be arriving at Westminster in the hope of finding an office (good luck with that – it normally takes a while), and the new cabinet is busy. Keir Starmer is in Belfast, on the latest leg of his tour to meet the devolved governments, Rachel Reeves is making a major speech on growth this morning, Yvette Cooper, the home secretary, is starting the process of setting up a new Border Security Command, Wes Streeting, the health secretary, is meetng the British Dental Association to discuss changes to the dental contract, and Downing Street is holding its first lobby briefing under the new regime.

Darren Jones, chief secretary to the Treasury, was on the media round. Policy-wise he did not really have anything new to say, but in an interview with the BBC he struck a note of confidence that contained a withering put-down to the previous government. Asked if he thought the Tories would not be able to provide a credible opposition given the leadership contest might take a while, he replied:

I expect that we will be challenged in the House of Commons.

Of course the Conservatives suffered a historic loss, but that doesn’t mean there’s no opposition in the House of Commons and of course, we have the House of Lords to get any legislation through as well.

And the key thing that you’ll see from this Labour government is that we’re going to return both to the service of the British people, but also to the norms. The adults are back in the room.

Announcements that we make will be made to parliament, they will follow proper processes through parliament, and we welcome them to be challenged and scrutinised by colleagues from different parties.

That’s the right and proper way to do business and that’s what you will have from this Labour government.

Here is the agenda for the day.

Morning: Keir Starmer is meeting Michelle O’Neill, Northern Ireland’s first minister, and Emma Little-Pengelly, the deputy first minister, in Northern Ireland. There is due to be a press briefing at 10.30am.

10.30am: Rachel Reeves, the chancellor, gives a speech on growth.

11.30am: Downing Street holds its first lobby briefing since Starmer became PM.

1pm: Reeves visits a building site in London with Angela Rayner, the levelling up secretary.

1.30pm: Rhun ap Iorwerth, the Plaid Cymru leader, holds a press briefing at Westminister with the party’s four MPs.

2pm: The Green MPs Carla Denyer and Siân Berry hold a press briefing at Westminster.

Afternoon: Starmer meets Vaughan Gething, the Welsh first minister, in Cardiff.

And at some point today Wes Streeting, the health secretary, has a meeting with the British Dental Association to discuss changes to the dental contract.

If you want to contact me, please post a message below the line (BTL) or message me on X (Twitter). I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word. If you want to flag something up urgently, it is best to use X; I’ll see something addressed to @AndrewSparrow very quickly. I find it very helpful when readers point out mistakes, even minor typos (no error is too small to correct). And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.

Updated

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