Rachel Reeves has told business leaders that she had not heard “many alternatives” to tax rises as she faces criticism for decisions made in the autumn budget.
Speaking at the Confederation of British Industry’s (CBI) annual conference, the chancellor insisted she had “drawn a line under the inheritance I faced” from the Conservative government and stressed “we’re never going to have to do a budget like that again”.
She added that the difficult decisions that were made would provide the “stability and platform we need to move forward”.
In a stinging speech earlier this afternoon, the CBI’s chief executive also warned that “tax rises like this must never again be simply done to business”.
Rain Newton-Smith said the said the measures announced last month have made it harder for businesses to “take a chance” on hiring new people and that employers were caught “off-guard” by the hike in national insurance contributions.
Taking to the stage this afternoon, Tory leader Kemi Badenoch accepted that her party had “lost the confidence of business” but said that Labour were repeating the same mistakes.
Meanwhile, the government has launched a crackdown on welfare benefits as the prime minister promises a ‘zero-tolerance’ approach to cheats and debate continues on the voluntary assisted dying bill due to be debated in parliament later this week.’
Key Points
- Kemi Badenoch admits Conservatives ‘got things wrong’
- McVitie’s boss says ‘becoming harder to understand’ case for investing in UK
- Newton-Smith says firms were caught ‘off guard’ by national insurance hike
- CBI CEO says Budget has ‘made it harder for business to take a chance on people’
- Rachel Reeves to face criticism of autumn Budget tax rises at annual conference
- Keir Starmer doubles down on benefits crackdown
Government can create conditions to boost investment, Reeves says
17:03 , Holly EvansThe Government should provide a “rock of stability” so businesses can be confident in their future plans, Rachel Reeves has said.
She told the Confederation of British Industry conference the Government can create the conditions to encourage business investment.
“That’s providing that rock of stability so that businesses can look to the future with confidence, knowing that the rules of the game have been set, and they now have been.
“But also the work that we can do to remove those barriers that are stopping you before investing.
“Whether it’s because it takes too long to get things through the planning system, whether it’s because, as an entrepreneur, you find it much easier to raise finance in the US than you do in the UK, and so you gradually shift towards the US, rather than listing and keeping your intellectual property here in the UK.
“Whether it is struggling to access the skills, either because … there are too many people trapped out of work because of sickness and ill health, or because we’re not open enough to global talent from around the world.”
As Chancellor, she said it is her job to “corral the whole of government” to remove barriers that stop or delay investment into Britain.
Reeves tells CBI she would not be coming back for more taxes
16:48 , Holly EvansThe Chancellor told the CBI conference she would not be coming back with more borrowing or taxes.
Asked if she could confirm there would be no more big tax rises on businesses, Rachel Reeves said: “I faced a problem, and I faced into it, and we have now drawn a line under the fiction peddled by the previous government.
“We’ve put our public finances back on a firm footing, and we’ve now set the budgets for public services for the duration of this Parliament.
“Public services now need to live within their means because I’m really clear, I’m not coming back with more borrowing or more taxes.”
Chancellor says despite feedback she’d heard no ‘alternatives’ to budget decisions
16:37 , Holly EvansDefending her autumn budget, Rachel Reeves said that she had “heard a lot of feedback” about her decisions, but had not heard “many alternatives”.
She stressed that the difficult decisions that were made would provide the “stability and platform we need to move forward”.
She stressed that she had maintained her promise to “not play fast and loose with public finances” and had ensured that stability had been returned.
She insisted “we have drawn a line under the inheritance I faced” from the Conservative government and “we’re never going to have to do a budget like that again”.
“Public finances are now on a firm footing and public services are funded in a proper way.
“We’re not going to have to come back for more.”
Rachel Reeves said difficult decisions have brought ‘stability’ to economy
16:27 , Holly EvansTaking to the stage at the CBI annual conference, chancellor Rachel Reeves has been asked her reflections over the past few months.
“At the Budget in October, I had to make a number of difficult decisions,” she said.
“But if I hadn’t made those difficult decisions, then we wouldn’t have been able to bring the stability back to the economy that is desperately needed.”
She referred to the “dire” state of public finances she inherited upon becoming chancellor and that the autumn budget had “drawn a line” and to “wipe the slate clean”.
Tributes paid to Lord John Prescott in Commons
16:12 , Holly EvansSpeaker Sir Lindsay Hoyle has led tributes to Lord Prescott in the House of Commons.
He said: “John was first elected to this House in 1970 and served the people of Hull for four decades. He became deputy leader of the Labour Party in 1994, which my father also helped on that campaign, and deputy prime minister at the 1997 election.
“And I’ve got to say thanks to John for coming to Chorley to ensuring a new start as a Labour member in Chorley, and I’ll just share what John did.
“On that day, tragically, the press were pushing and pushed an old lady over. Her arm was broken, and the first thing John said, ‘I must go to that hospital’. And he went to the hospital to see that lady as her cast was being put on.
“That was the kind of person that John Prescott was.
He added: “He was an effective politician, highly respected colleague, and a towering figure in the Labour movement and in this House. He will be deeply missed, and all our thoughts are with Pauline and the family.”
Fewer than 500 farms a year likely to be hit by tax changes, says think tank
15:58 , Holly EvansFewer than 500 farms a year will be impacted by the Government’s reforms to inheritance tax, a group of economic experts has claimed.
The Institute for Fiscal Studies (IFS) said “significantly fewer” than the 500 farms a year estimated by the Government will be impacted by the changes.
The economics-focused think tank said some “relatively simple tax planning” will ensure farms worth more than £2 million will not hit the threshold at which they have to start paying inheritance tax.
In a briefing note, the IFS gave its backing to measures aimed at bringing farms into the scope of the tax and added if there were specific concerns about food production then ministers should use “better tools” to support that.
It did however recommend ministers tweak the rules to benefit elderly farm owners who are likely to die in the next seven years but after the new regime comes into force in 2026.
This group, the IFS said, will not have the opportunity to pass on their farms as a tax-free gift – a route available to other property owners.
Kemi Badenoch admits Tories lost support of business – when she was business secretary
15:50 , Holly EvansKemi Badenoch has admitted that the last Conservative government lost the support of business, despite having served in it as the party’s business secretary.
In her first major speech since succeeding Rishi Sunak, Ms Badenoch said she was not surprised at how many bosses flocked to meet Sir Keir Starmer and Rachel Reeves before the general election.
“I know it is because you thought that we didn’t understand what your needs and concerns were, and you knew we were going to lose,” she told leaders at the Confederation of British Industry’s (CBI) annual conference in London.
Read the full article here:
Badenoch admits Tories lost support of business – when she was business secretary
Labour urged to say when 13,000 more police officers will be recruited
15:42 , Holly EvansGovernment ministers have been urged to say “when” they will roll out 13,000 local police officers, a Labour manifesto pledge.
Asked by Conservative MP Ben Obese-Jecty (Huntingdon) about how lone police officers who cover a large area can tackle shoplifting “effectively”, policing minister Dame Diana Johnson replied: “He has to look back at what this Government has inherited from his Conservative government over 14 years, where neighbourhood policing was cut and cut and cut.”
To shouts of “when” from Conservative shadow home secretary Chris Philp, who was sitting on the Opposition front bench, Dame Diana continued: “This Government is committed to restoring neighbourhood policing.
“We’ve said that we will bring in 13,000 police officers, PCSOs and specials to actually – well, the shadow home secretary is shouting at me ‘when?’
“We are working on this as quickly as we can – five months in after 14 years of what they did to our policing.”
Mr Obese-Jecty had asked: “How can one officer be expected to cover such a large area effectively, given we will likely receive a handful of the officers?”
What lies behind Labour’s crackdown on welfare benefits?
15:15 , Holly Evans
To me, assisted dying is not an ethical or religious issue – it is about my right to live
15:00 , Holly EvansAdvocates for a change in the law around assisted dying believe safeguards will protect disabled people, who must continue to suffer pain, indignity and feeling a burden – unless they find kind doctors willing to categorise them as having less than six months to live.
This nonsense is trotted out every time a so-called “assisted dying” bill comes before parliament. Why? Because disabled people are never seriously consulted before such bills are drafted. We are experts in pain, indignity and being made to feel a burden. Surely our views should be paramount?
Sadly, they never are; we are patronisingly told it’s not about us. But our lived experience tells us daily that is not true.
Read the full story here:
To me, assisted dying is not an ethical issue – it is about my right to live
Trump’s team concerned Starmer will complete Chagos Islands deal before inauguration
14:30 , Holly EvansDonald Trump’s team are seeking assurances that the controversial deal to hand over the Chagos Islands to Mauritius will not be completed before his inauguration in January.
The Independent recently revealed that the president-elect is looking for ways to veto the agreement because of concerns over its security implications in the Indian Ocean with the crucial joint UK/US base on Diego Garcia.
There are also concerns that the deal struck by Sir Keir Starmer and foreign secretary David Lammy will allow China access to the islands to build their own rival base.
Read the full article here:
Trump’s team concerned Starmer will complete Chagos Islands deal before inauguration
UK taking ‘too long’ to complete big infrastructure projects, Badenoch says
14:26 , Holly EvansConservative leader Kemi Badenoch has suggested that the UK is “taking too long” to get big projects completed.
Asked at the CBI annual conference how long projects such as roadbuilding or housebuilding should take, she said: “I think the question about how long should we take is (…) it’s like asking how long is a piece of string.
“We are taking too long, we know we are taking too long because when I was business secretary many investors would complain about how long it took to get anything done in the UK versus Spain versus Italy.”
She said that “we should be looking at what our competitor economies are doing and we should be asking ourselves ‘why it is that there is so much obstruction to getting things delivered’” and that “we are burdening ourselves in a way that is stopping anything from happening”.
Kemi Badenoch says we need to ‘rewire the state’ around our economy
14:13 , Holly EvansConservative leader Kemi Badenoch has said “we need to completely change the way we talk about how our economy works”.
Asked about what taxes or services she would cut to fill the “black hole” the Labour Government claims was left in the public finances by the Tories, Ms Badenoch told the CBI annual conference in London she is “not talking about which tax we will tweak here or which service we’re going to cut there”.
“We need to completely change the way we talk about how our economy works.
“What is it that we’re trying to so? What should government be doing? How should it do better? Are we having people in the most productive places?”
She said that the change would take “a lot of work” and mean “deep, real reviews asking the right questions”.
“That’s what we’re going to do. If we’re going to rewire the state, we need to start from there and not just adjust little knobs and levers on tax or insurance.”
Badenoch refuses to say if Tories would reverse employer national insurance hikes
14:07 , Holly EvansKemi Badenoch would not say for certain whether a Conservative government would reverse Labour’s changes to employer national insurance contributions, but suggested they would “look again”.
Taking questions at the CBI annual conference in London on Monday afternoon, Conservative leader Ms Badenoch said that “where we can see that a change that has been brought in in the Budget… will not raise any money, we will change that.”
But, she added: “What I’m not going to do is comment on every bit of micro-policy. There will be different budgets, there will be new things that occur, the system may change.
“What I am starting with is principles, we believe that employer’s National Insurance, while necessary to help us fund public services, is a tax on jobs.”
She added: “The fact that so many organisations – especially those that have people who are on the lowest wages – are saying that this is becoming unaffordable means that we should look again, and that’s one of the first things that we’re going to be doing when we start our policy platform.”
Tory leader says she is ‘concerned’ about burden on small businesses
13:54 , Holly EvansSpeaking to business leaders, Kemi Badenoch said: “I was not surprised at how many people attended Labour’s prawn cocktail or smoked salmon offensive last year, I know it is because you thought that we didn’t understand what your needs and concerns were, and you knew we were going to lose.”
Ms Badenoch said that the Conservatives “must be the party of business, not just big business, not just corporates, but small business too” and she is “concerned” about the “burden” on small businesses.
“The new Government believes that invisible businesses can absorb these costs, but it is everyday people who bear the brunt, either in higher prices or lower wages, sometimes both.
“We may see the jobs which are lost as a result, but no one ever sees the jobs that never get created.”
Kemi Badenoch admits Conservatives ‘got things wrong’
13:51 , Holly EvansKemi Badenoch has warned against the government wanting to “fix everything”, saying this is partly how debt has reached record levels, with more being spent on debt regulation than on other sectors such as education or defence.
She stressed: “I believe that we need to rewire our economy, and the vast majority of our jobs are productive and those that are not, change.”
Badenoch has recognised that the last Conservative government had lost the trust of the business sector, and said there was “no point me complaining about Labour” without recognising this fact.
Speaking of Britain’s financial situation and Labour’s approach, she said: “We haven’t done the work which is needed to understand what the root causes of our problems are. They’re not just repeating the mistakes we did but they are doubling down on them.”
Kemi Badenoch says she saw herself as a ‘champion’ for business in last role
13:39 , Holly EvansKemi Badenoch has taken to the stage at the CBI annual conference, telling business leaders that they should study politician by “what they did when they had the chance”.
The Conservative leader asked: “How do you know whether a politician is actually going to do what it is they say they’ll do?
“You can only look back on their track record,” she says.
She stressed that when she was business secretary, she “tried to lift the burden off businesses” by fighting with other departments over regulation, saying she saw herself as their “champion around the cabinet table”.
“It is because I know that it is not government that creates growth - it is business. Government often needs to get out of the way,” she argues.
Cabinet splits over assisted dying legislation
13:23 , Holly EvansThe Cabinet is split over the issue of assisted dying, with more members believed to be in favour than against ahead of the vote on the law change this week.
Culture Secretary Lisa Nandy, Work and Pensions Secretary Liz Kendall, Northern Ireland Secretary Hilary Benn, Transport Secretary Louise Haigh and Energy Secretary Ed Miliband have all said they will back the law.
Others, including Home Secretary Yvette Cooper, have been less explicit, but indicated their support for the measures in the Bill.
Meanwhile Ms Mahmood, Mr Streeting, Education Secretary Bridget Phillipson and Business Secretary Jonathan Reynolds have said they will reject the legislation.
Lord Falconer, a former justice secretary and longstanding proponent of a change in the law, criticised the Justice Secretary’s intervention on Sunday.
On Monday, Downing Street declined to be drawn into the row between Lord Falconer and Ms Mahmood, saying it was “up to MPs to determine their position on (the Bill)” and the Prime Minister “respects that there are strongly held views on all sides of the debate”.
Watch: Keir Starmer reacts to general election petition
13:09 , Holly EvansDowning Street avoid war of words with Elon Musk
12:57 , Holly EvansDowning Street sought to avoid being drawn into a war of words with Elon Musk after the tech tycoon and Donald Trump ally used his X social media site to highlight a petition calling for another election and branding the UK a “tyrannical police state”.
Asked about Mr Musk’s words, the Prime Minister’s official spokesman said: “I’m not going to be drawn on individual comments.”
The spokesman added: “The Prime Minister is focused on the issues that matter most to the British people.
“That’s what the Government was elected to deliver on – protecting our streets is obviously a key part of the Government mission and a key part of the platform the Government was elected on, as well as growing the economy, securing the borders and a number of the other priorities that we have discussed.”
No 10 also insisted it was looking forward to working with US President-elect Trump and his team.
“The Prime Minister looks forward to working with President Trump and his whole team, including Elon Musk, to work on issues, to deepen and develop the special UK-US relationship across trade, investment, security, defence – a wide range of areas the UK and US already share a deep and special relationship on and the Prime Minister looks forward to going further.”
No10 decline to support criticism of justice secretary over assisted dying vote
12:41 , Holly EvansDowning Street declined to agree with Labour peer Lord Falconer’s criticism of the Justice Secretary over her remarks on assisted dying legislation.
Asked whether Sir Keir Starmer agreed with Lord Falconer that Shabana Mahmood was seeking to “impose” her religious beliefs on others, the Prime Minister’s official spokesman said: “The Prime Minister has been very clear that this is a free vote.
“It is up to MPs to determine their position on it. The PM respects that there are strongly held views on all sides of the debate, but the whole of Government is united in respecting the will of Parliament.”
Asked whether the Prime Minister thought Cabinet members had complied with the rules in their comments on assisted dying, he said: “We’ve been clear that the Government will remain neutral but Cabinet members will clearly be voting as MPs with independent views.
“And it will be perfectly normal that there will be different views in that respect and it is obviously expected that they will want to explain to their constituents how they are going to vote on this highly emotive issue.”
Keir Starmer enjoys bumper weekend
12:27 , Archie MitchellAfter enjoying his beloved Arsenal beating Nottingham Forrest 3-0 at home on Saturday, Sir Keir Starmer took his daughter to an escape room on Sunday.
The prime minister thought he would get away with dropping her off for the birthday treat and enjoying a cup of coffee while he waited.
“No, no, no,” his daughter told him, “you’re in there with me”.
So Sir Keir was dragged into the escape room and was locked in having to decode clues to discover a way out.
He also revealed his new kitten Prince has not yet met Downing Street’s famous mouse catcher Larry, as he spoke about his family’s Christmas plans.
Asked for an update on the Starmer family Siberian kitten, Sir Keir told ITV’s This Morning: “Prince is the name of the kitten.
“So, Prince and Larry haven’t met yet. I am worried that Larry will come off the better – the kitten is tiny.”
Letters: It would indeed show great strength if Reeves and Starmer ‘retreated’
12:14 , Holly EvansI read John Rentoul’s optimistic column (“Rachel Reeves is standing by her ‘tough decisions’ – but for how long?”, Saturday 23 November) with interest, and bow to his political nous about this.
Instead of showing weakness, it would indeed show strength from Rachel Reeves and Keir Starmer – that they had listened, understood and were ready to think again.
I am personally not so sure that they will, because I don’t think they really “get it”, in relation to the removal of the winter fuel allowance. As Martin Lewis states; it was a cliff-edge decision, with so many pensioners just marginally over the pension credit threshold losing out. Of course, it needed reforming, but not in such a punitive, cack-handed fashion.
Read letters from our readers here:
Letters: It would show great strength if Reeves and Starmer ‘retreated’
Starmer talks up his kitchen handy work
12:02 , Archie MitchellSir Keir Starmer has hyped up his handiness in the kitchen, detailing the deliciousness of his salmon and quorn tandooris.
The prime minister said he loves to cook, especially on Saturdays, because he finds it relaxing. Asked on ITV’s This Morning what his top dishes are, the PM said: “My tandoori salmon and tandoori quorn is coming on very, very nicely.”
But Sir Keir said he is often overruled at dinner time by his kids, who demand a standard pasta bake. “I get the recipe book out and say I am going to do this, then the kids get involved, we negotiate and end up with a pasta bake very often because that is what they will always eat,” Sir Keir added.
Challenged over his cooking, the PM committed to showing up for another episode of the ITV show to present his own cooking segment.
Health and legal experts among 73 academics to sign letter opposing ‘inadequate’ assisted dying bill
11:47 , Holly EvansLeading academic experts in the fields of health, end-of-life care and the legal system have joined together to sign an open letter opposing the assisted dying bill which MPs are due to debate on Friday.
The bill tabled by Labour MP Kim Leadbeater would for the first time allow for the NHS to assist people to take their own lives.
Ms Leadbeater and supporters of the legislation claim the bill would provide the “strictest safeguards anywhere in the world” to prevent the system being abused and ensure it only applied to terminally ill patients. Among these are that any requests to end life would need to be signed off by two doctors and a judge.
Read the full article here:
Health and legal experts among 73 academics to sign letter opposing assisted dying
Starmer rules out calling another general election
11:36 , Holly EvansSir Keir Starmer has ruled out calling another general election, but said he was “not surprised” some people who did not support Labour might want a second poll.
The Prime Minister was asked by ITV’s This Morning about a petition calling for another election on the Parliament website, now signed by two million people.
Sir Keir told the programme: “Look, I remind myself that very many people didn’t vote Labour at the last election.
“I’m not surprised that many of them want a rerun. That isn’t how our system works.
“There will be plenty of people who didn’t want us in in the first place.
“So, what my focus is on is the decisions that I have to make every day.”
McVitie’s boss says ‘becoming harder to understand’ case for investing in UK
11:22 , Holly EvansSalman Amin, chief executive of McVitie’s bakery products’ parent company Pladis, said it is “becoming harder to understand” the case for investing in the UK.
Speaking at the CBI’s annual conference on Monday, he said: “Historically, we’ve been super bullish on the United Kingdom.
“In fact, by far our greatest investment across all of our countries over the last decade or so has come to the UK.”
He added: “Going forward, it’s becoming harder to understand what the case for investment is.
“Small amounts one can understand, but the quantums that I think we need to make a difference in the growth rate of the economy are in the order of tens of millions every year.
“In the last couple of years, it’s just become a lot harder to really see how does that play out.”
Labour tempers flare over assisted dying as MP accuses peer of ‘hugely offensive’ remarks
11:08 , Holly EvansA Labour peer has been accused of making “hugely offensive” remarks by an MP from his own party after he suggested the justice secretary’s concerns about the assisted dying bill were “motivated by religious belief”.
Rachael Maskell, the MP for York Central and a devout Christian, said Lord Falconer’s claim that Shabana Mahmood was trying to “impose” her Muslim beliefs on those in favour of assisted dying was “hugely offensive and discriminatory” and urged him to apologise.
The row comes as temperatures are flaring on the Labour benches about the assisted dying bill, which MPs will vote on this Friday.
Read the full article here:
Labour tempers flare over assisted dying as MP accuses peer of ‘offensive’ remarks
Analysis: What happened eight years ago?
11:04 , Howard MustoeBrexit is still on the minds of business leaders, although its name is seldom spoken, since it tends to reheat old arguments and the government has said rejoining the EU is not on the agenda.
Still, CBI boss Rain Newton-Smith makes a reference to the long shadow it has cast over the economy and business in her speech: “After eight years of downcast ambitions of weak growth, I know we are all dead set on getting our economy moving again.
“So my message today to government and to all parties is, work with us to get there. Let’s build that bridge together.”
Analysis: CBI boss brings up sore topic for business amid warning for government
10:43 , Howard MustoeA big part of CBI boss Rain Newton-Smith’s speech was about industrial strategy, something of a sore topic for businesses in the last decade.
A business strategy is just a plan on which areas of the economy you will help out since they show promise or you need them. Under most of the last government there wasn’t one, since it ideologically didn’t like meddling by aiding one sector of business over another.
The trouble is, as Ms Newton-Smith suggests, other countries did like doing that meddling, putting Britian’s competitors in the driving seat. She doesn’t mention which areas of the economy, but it tends to be ones that require a large amount of capital investment like green energy or ones that are fast-paced and need laws which can catch up, like developing medicine.
She said: “If you look at the most successful economies of the last 50 years, there’s one common denominator, a strong, clear and modern industrial strategy. We’ve got a commitment from government to deliver it.”
“But what is not yet clear is how it will help businesses in the everyday economy, the large employers who are often the first step into the world of work, the unsung heroes in our communities, how we support their workforce to be more productive.
“Because I can tell you, if you don’t do that, your industrial strategy will not stand the test of time. So today, I’m proud to say the CBI is launching its own blueprint for competitiveness.”
She wants a broader-based strategy that also helps big employers like retailers who feel they’ve been hit hard in the budget. In a familiar refrain to win over those who think it’s anti-competitive – get your business catchphrase bingo cards out – she says “this isn’t about picking winners. It’s about picking races, races we can win.”
Businesses not ready to invest or grow in the UK, CBI chief warns
10:37 , Holly EvansRain Newton-Smith, chief executive of the Confederation of British Industry, told her organisation’s annual conference: “What really defines growth is the decisions made in boardrooms up and down the country.
“It’s CFOs (chief financial officers) asking, ‘can we afford to invest? Can we afford to expand? Can we afford to take a chance on new people?’
“Well after the Budget, the answer we’re hearing from so many firms is still ‘not yet’.
“The rise in national insurance, the stark lowering of the threshold, caught us all off guard.
“Along with the expansion and the rise of the national living wage – which everyone wants to accommodate – and the potential cost of the Employment Rights Bill, they put a heavy burden on business.”
Newton-Smith says firms were caught ‘off guard’ by national insurance hike
10:31 , Holly EvansThe head of one of the UK’s biggest business organisations has hit out at Rachel Reeves’ Budget, saying firms were caught “off guard” by the hike in national insurance contributions (NICs).
Rain Newton-Smith said the measures announced last month have placed a “heavy burden” on companies, with many now switching to “crisis containment”
She also criticised the changes to inheritance tax relief for farmers, saying it had left them “fearful” about the future.
CBI CEO says Budget has ‘made it harder for business to take a chance on people’
10:26 , Holly EvansThe CBI CEO has called for the government to work with the business industry to form an “elevated partnership”.
“Work with us together, let’s build that bridge together, we need to shift from consultation to co-design,” Rain Newton-Smith said.
“Tax rises like this must never just be done to business.”
She stressed that too many businesses were having to compromise on their plans for growth, and that the Budget had “just made it harder for business to take a chance on people”.
Economist says CBI CEO needs to be stronger in response to Budget
10:24 , Howard MustoeIndependent business economist Andrew Sentance, who is a former CBI Director of Economic Affairs, says CBI boss Rain Newton Smith needs to be stronger in her response to the Budget, which has been unpopular among businesses.
He said on X: “We are being led to expect a critical speech on the Budget” From Ms Newton Smith. “She needs to be more hard-hitting than the CBI’s mild initial Budget response in October.”
Back then, she said: “This is a tough Budget for business. While the Corporation Tax Roadmap will help create much needed stability, the hike in National Insurance Contributions alongside other increases to the employer cost base will increase the burden on business and hit the ability to invest and ultimately make it more expensive to hire people or give pay rises.”
We are being led to expect a critical speech on the Budget from @RainNewtonSmith at the @CBItweets conference today. She needs to be more hard-hitting than the CBI’s mild initial Budget response in October: https://t.co/XcbJh2obGu
— Andrew Sentance (@asentance) November 25, 2024
Keir Starmer reiterates plans for spiking to become specific offence
10:05 , Holly EvansSir Keir Starmer has reiterated plans for spiking to become a specific offence, as he hopes a change will give people “the confidence to come forward”.
The Prime Minister also laid out plans for venue staff to be trained in relation to spiking, with a pilot to begin within weeks before a wider rollout next year.
The Prime Minister made the comments in a meeting of police bosses, transport figures and hospitality executives in Downing Street on Monday morning.
Labour pledged in its manifesto to introduce a new offence for spiking, but there was no detail in the King’s Speech this year about a specific crime, though it promised to ensure an improved police response to cases.
Spiking is already illegal, but the commitment is to making it a specific offence. According to information published by the Metropolitan Police, spiking offences are covered by more than one law, but most come under the Offences Against the Person Act 1861.
Sir Keir told the meeting: “There are a number of measures that we are setting out this morning – we want to talk it through with you.
“The first is to make spiking a specific offence so that it counts, it’s reported.”
Ministers following own ‘moral code’ on assisted dying vote, says Jess Phillips
09:49 , Holly EvansSenior Government figures opposed to the assisted dying Bill are following their own “moral code”, a minister has suggested, ahead of a vote on the law change this week.
Home Office minister Jess Phillips defended her colleague Shabana Mahmood, who made clear she would vote against the Bill in a strongly worded letter to constituents which emerged over the weekend.
She faced a backlash from Labour peer Lord Falconer for the public intervention, who suggested the Justice Secretary was motivated by her religious beliefs.
Members will be given a free vote on the issue, allowing them to make a decision according to their own conscience rather than in line with party policy.
The Home Office minister told Times Radio: “She (Ms Mahmood) will make the decision about how she votes on assisted dying on a matter of conscience, just exactly like I will.
“How she comes to that and what moral code she uses to come to that will be exactly the same as the moral code that I use to come to that decision as well.”
Ms Phillips added: “I think that Shabana is making a decision on what she thinks is best for her constituents, like every constituency MP.”
The minister said she would be backing the Bill, telling BBC Breakfast: “I am a person who fundamentally believes in the right for people to make a choice about their bodies.”
Bank of England deputy governor ‘worried’ that inflation will be higher
09:40 , Holly EvansA deputy governor of the Bank of England has said she is “more worried” about the risks that inflation will be higher than expected as she called for a “gradual” reduction in interest rates.
Clare Lombardelli told a conference at King’s Business School there have been some signs of a slowdown in the reduction of wage inflation amid efforts to keep inflation sustainably at the central bank’s 2 per cent target rate.
Ms Lombardelli said: “I view the probabilities of downside and upside risks to inflation as broadly balanced.
“But at this point I am more worried about the possible consequences if the upside materialised, as this could require a more costly monetary policy response.
“The outlook for wages and services prices is unclear from here.
“This is why I support a gradual removal of monetary policy restriction and will be monitoring the flow of data over the coming months so we can calibrate our policy path as needed.”
Keir Starmer doubles down on benefits crackdown as he promises ‘zero tolerance’ on cheats
09:37 , Holly EvansKeir Starmer has promised “zero tolerance” for benefits cheats as Labour seeks to tackle Britain’s ballooning welfare bill.
The prime minister warned those who try to “take advantage of state generosity will feel the force of the law” and that ministers would even “take cash straight from the banks of fraudsters”.
His vow came as ministers prepare to unveil “tough” changes to the welfare system later this week.
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Starmer doubles down on benefits crackdown as he promises ‘zero tolerance’ on cheats
Chancellor to say she has heard ‘no alternatives’ to tax rises
09:32 , Holly EvansIn the October Budget, Chancellor Rachel Reeves announced a nearly £70 billion uplift in public spending, partly funded by sharp increases in business taxes such as employer national insurance contributions.
Labour also raised the minimum wage, in a move praised by workers’ groups and unions, but which businesses have said will force them to pass on some costs to consumers, hire fewer people or make less profit.
In her speech, Ms Newton-Smith will point to a recent survey by the body which found almost two-thirds of companies think the Budget will damage UK investment.
The event is also due to be attended by the Chancellor, who is expected to take part in an onstage talk with Scottish Power chief executive Keith Anderson.
The Guardian reported Ms Reeves is expected to use the conference to say: “I have heard lots of responses to the Government’s first budget but I have heard no alternatives.”
Rachel Reeves to face criticism of autumn Budget tax rises at annual conference
09:28 , Holly EvansTax rises in the autumn Budget are undermining investment among UK companies, according to the head of one of Britain’s most prominent business groups.
Rain Newton-Smith, chief executive of the Confederation of British Industry, will warn in a speech on Monday that the measures announced last month have made it harder for businesses to “take a chance” on hiring new people.
However, Chancellor Rachel Reeves is expected to tell the group there was “no alternative” to tax rises as she holds firm against criticism of the autumn financial statement.
Speaking to the CBI’s annual conference in London, she will say: “Across the board, in so many sectors, margins are being squeezed and profits are being hit by a tough trading environment that just got tougher.
“And here’s the rub, profits aren’t just extra money for companies to stuff in a pillowcase. Profits are investment… When you hit profits, you hit competitiveness, you hit investment, you hit growth.”
