‘Should-do for any accountable authorities’ – minister defends shock further profit cuts to characteristic in spring assertion
Good morning. This time final week Stephen Timms, a welfare minister, was doing an interview spherical to defend the £5bn incapacity profit cuts introduced the day past, and he refused to rule out additional profit cuts sooner or later. Most of us thought he was being cautious due to the danger of additional cuts later on this parliament, or presumably later this yr. I don’t assume anybody anticipated further cuts to be introduced inside days.
However that’s precisely what has occurred. As Heather Stewart, Kiran Stacey and Richard Partington report within the Guardian splash, solely hours earlier than the spring assertion, the Treasury has revealed that the incapacity profit cuts are going to be even deeper than those set out final week. That’s as a result of the Workplace for Finances Accountability, the federal government’s omnipotent fiscal regulator, has dominated that the Treasury was being unrealistic when it mentioned the profit cuts would save £5bn. (The OBR might be proper – up to now profit “crackdowns” have hardly ever saved as a lot the Treasury forecasts.). And this implies the cuts should be beefed up, to save lots of one other £1.6bn.
The change was first reported by the Instances, which says that “common credit score incapacity advantages for brand spanking new claimants will now be frozen till 2030 reasonably than elevated according to inflation” and that there will even be “a small discount within the fundamental fee of common credit score in 2029”.
Keir Starmer and Rachel Reeves had been already dealing with a robust backlash from Labour backbenchers over the profit cuts. This growth is prone to exacerbate that, though fairly how seen that shall be immediately is difficult to foretell. Many Labour MPs are alarmed concerning the cuts in non-public, however haven’t spoke out publicly.
John Healey, the defence secretary, has been giving interviews this morning, and he has defended what the Treasury is doing. Referring to the evaluation that final week’s profit cuts will solely save £3.4bn, not £5bn, he instructed Instances Radio:
I feel that’s a calculation that we may even see confirmed from the Workplace of Finances Accountability about the long run financial savings that our plans to alter the welfare system might carry, and that’s a must-do for any accountable authorities, significantly one which believes within the significance of our social safety system. Doing nothing will not be an choice. It’s failing and writing off a younger era.
Immediately we shall be focusing nearly solely on the spring assertion. Graeme Wearden, who writes the Guardian’s enterprise weblog, shall be becoming a member of me right here later, and we shall be overlaying the assertion intimately, and bringing you all the very best evaluation and response.
Right here is the agenda for the day.
Midday: Keir Starmer faces Kemi Badenoch at PMQs.
12.30pm: Rachel Reeves delivers the spring assertion.
2.30pm: Richard Hughes, chair of the Workplace for Finances Accountability, holds a press convention.
4.15pm: Reeves holds a press convention.
If you wish to contact me, please publish a message beneath the road or message me on social media. I can’t learn all of the messages BTL, however in the event you put “Andrew” in a message geared toward me, I’m extra prone to see it as a result of I seek for posts containing that phrase.
If you wish to flag one thing up urgently, it’s best to make use of social media. You possibly can attain me on Bluesky at @andrewsparrowgdn. The Guardian has given up posting from its official accounts on X however particular person Guardian journalists are there, I nonetheless have my account, and in the event you message me there at @AndrewSparrow, I’ll see it and reply if vital.
I discover it very useful when readers level out errors, even minor typos. No error is simply too small to right. And I discover your questions very attention-grabbing too. I can’t promise to answer to all of them, however I’ll attempt to reply to as many as I can, both BTL or typically within the weblog.
Key occasions
Healey says Vance and Hegseth ‘have gotten a case’ on EU defence spending, when requested about ‘pathetic freeloader’ jibes
Ever since Donald Trump grew to become US president, Keir Starmer and all his ministers have tried as a lot as doable to keep away from saying what they consider all of the issues being mentioned and achieved by his administration (a lot of that are abhorrent to mainstream UK political opinion). Typically Starmer and his workforce have adopted the road that it’s not their job to be “commentators”. (Lynton Crosby used to attempt the identical argument with the Tories.) This has led to many interviews taking a surreal flip, like Angela Rayner’s on the World at One yesterday, the place she refused repeated makes an attempt to supply any vital response to JD Vance, the US vice-president, and Pete Hegseth, the defence secretary, denouncing the Europeans as pathetic freeloaders.
However this morning John Healey, the defence secretary, was a bit extra forthcoming. In an interview with Instances Radio, requested concerning the Vance/Hegseth argument, he mentioned:
I regard it extra of a problem.
Requested once more concerning the Europeans being described as pathetic freeloaders, he mentioned:
The Individuals have gotten a case, the Individuals have completely acquired a case, that on defence spending, on European safety, on our help for Ukraine, European nations can and can do extra and the UK is main the way in which.
I’m happy with that on defence spending, on European safety and on Ukraine. It’s why we’re pulling collectively the coalition.
And in an interview on the Immediately programme, requested about Trump’s particular envoy Steve Witkoff describing Keir Starmer’s Ukraine coverage as posturing, Healey did push again towards Witkoff’s argument, with out criticising him personally. He mentioned:
I’m proud that the UK, alongside France, is main the coalition of the keen, prepared to face by Ukraine within the occasion of a negotiated peace simply as now we have by way of the struggle.
And we’re responding to the US problem to European nations just like the UK to do extra to help Ukraine.
We’re responding to the requirement of Ukraine to say, ‘look, post-ceasefire, what are the safety preparations that give us the arrogance that any negotiated peace will, as President Trump has mentioned, be a sturdy peace’.
Reeves to announce further £2.2bn in defence spending from April
John Healey, the defence secretary, has been doing an interview spherical this morning as a result of in a single day the Treasury briefed journalists that Rachel Reeves will announce an additional £2.2bn in defence spending from April within the spring assertion. (Presumably that was the story the Treasury press workplace had been hoping can be main the information bulletins this morning, not the brand new profit cuts).
In its information launch, the Treasury mentioned:
The chancellor will announce an extra £2.2bn funding enhance for defence from April, as she warns that Britain has to “transfer shortly in a altering world”.
The funding shall be invested in superior applied sciences in order that Britain’s armed forces have the instruments they should compete and win in fashionable warfare. This consists of guaranteeing the funding to suit Royal Navy ships with Directed Vitality Weapons by 2027. These weapons can hit a £1 coin from 1km away and take down drones at a distance of 5km.
It should even be used to offer higher houses for army households by refurbishing the defence property – together with over 36,000 houses not too long ago introduced again into public possession from the rental sector. Along with this, the funding will unlock speedy preparatory work, resembling website surveys, planning and structure, for the foremost redevelopment of armed forces housing by way of the defence housing technique.
The funding will even assist fund upgrades to infrastructure at His Majesty’s Naval Base Portsmouth, securing its capacity to help Royal Navy operations into the longer term.
Defence spending in 2024/25 was round £57bn.
In keeping with the Treasury, in her spring assertion speech later Reeves will say:
In February, the prime minister set out the federal government’s dedication to extend spending on defence to 2.5% of GDP from April 2027 and an ambition to spend 3% of GDP on defence within the subsequent parliament as financial and monetary situations enable.
That was the fitting resolution in a extra insecure world, placing an additional £6.4bn into the defence price range by 2027.
However now we have to maneuver shortly in a altering phrase. And that begins with funding.
So I can immediately verify that I’ll present an extra £2.2bn for the Ministry of Defence subsequent yr – an extra downpayment on our plans to ship 2.5% of GDP.
This enhance in funding isn’t just about growing our nationwide safety however growing our financial safety, too.
As defence spending rises, I need the entire nation to really feel the advantages.
UK inflation falls to 2.8% in enhance for Rachel Reeves earlier than spring assertion
UK inflation has fallen again by greater than forecast to 2.8%, offering some optimistic information for Rachel Reeves earlier than she makes her spring assertion, Richard Partington reviews.
‘Should-do for any accountable authorities’ – minister defends shock further profit cuts to characteristic in spring assertion
Good morning. This time final week Stephen Timms, a welfare minister, was doing an interview spherical to defend the £5bn incapacity profit cuts introduced the day past, and he refused to rule out additional profit cuts sooner or later. Most of us thought he was being cautious due to the danger of additional cuts later on this parliament, or presumably later this yr. I don’t assume anybody anticipated further cuts to be introduced inside days.
However that’s precisely what has occurred. As Heather Stewart, Kiran Stacey and Richard Partington report within the Guardian splash, solely hours earlier than the spring assertion, the Treasury has revealed that the incapacity profit cuts are going to be even deeper than those set out final week. That’s as a result of the Workplace for Finances Accountability, the federal government’s omnipotent fiscal regulator, has dominated that the Treasury was being unrealistic when it mentioned the profit cuts would save £5bn. (The OBR might be proper – up to now profit “crackdowns” have hardly ever saved as a lot the Treasury forecasts.). And this implies the cuts should be beefed up, to save lots of one other £1.6bn.
The change was first reported by the Instances, which says that “common credit score incapacity advantages for brand spanking new claimants will now be frozen till 2030 reasonably than elevated according to inflation” and that there will even be “a small discount within the fundamental fee of common credit score in 2029”.
Keir Starmer and Rachel Reeves had been already dealing with a robust backlash from Labour backbenchers over the profit cuts. This growth is prone to exacerbate that, though fairly how seen that shall be immediately is difficult to foretell. Many Labour MPs are alarmed concerning the cuts in non-public, however haven’t spoke out publicly.
John Healey, the defence secretary, has been giving interviews this morning, and he has defended what the Treasury is doing. Referring to the evaluation that final week’s profit cuts will solely save £3.4bn, not £5bn, he instructed Instances Radio:
I feel that’s a calculation that we may even see confirmed from the Workplace of Finances Accountability about the long run financial savings that our plans to alter the welfare system might carry, and that’s a must-do for any accountable authorities, significantly one which believes within the significance of our social safety system. Doing nothing will not be an choice. It’s failing and writing off a younger era.
Immediately we shall be focusing nearly solely on the spring assertion. Graeme Wearden, who writes the Guardian’s enterprise weblog, shall be becoming a member of me right here later, and we shall be overlaying the assertion intimately, and bringing you all the very best evaluation and response.
Right here is the agenda for the day.
Midday: Keir Starmer faces Kemi Badenoch at PMQs.
12.30pm: Rachel Reeves delivers the spring assertion.
2.30pm: Richard Hughes, chair of the Workplace for Finances Accountability, holds a press convention.
4.15pm: Reeves holds a press convention.
If you wish to contact me, please publish a message beneath the road or message me on social media. I can’t learn all of the messages BTL, however in the event you put “Andrew” in a message geared toward me, I’m extra prone to see it as a result of I seek for posts containing that phrase.
If you wish to flag one thing up urgently, it’s best to make use of social media. You possibly can attain me on Bluesky at @andrewsparrowgdn. The Guardian has given up posting from its official accounts on X however particular person Guardian journalists are there, I nonetheless have my account, and in the event you message me there at @AndrewSparrow, I’ll see it and reply if vital.
I discover it very useful when readers level out errors, even minor typos. No error is simply too small to right. And I discover your questions very attention-grabbing too. I can’t promise to answer to all of them, however I’ll attempt to reply to as many as I can, both BTL or typically within the weblog.
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