Politics

Read about the latest UK political news, views and analysis.

Katy Balls

Five things we learnt from the IFS Budget briefing

It’s the day after Philip Hammond’s Budget and so far the Chancellor has managed to avoid disaster. Broadly speaking, his Budget has been well-received. The Prime Minister this morning went so far as to say the Chancellor ‘did a very good job’. Meanwhile, another of Hammond’s old foes softened its stance, with the Daily Mail celebrating Hammond’s newfound optimism and the end of the Eeyore chancellor. However, this afternoon’s Budget briefing from the Institute of Fiscal Studies offered some grim analysis. Paul Johnson and his number-crunching team ran through the figures in the Autumn Budget in detail. Although the Chancellor managed to avoid much criticism (thanks in large to the

John McDonnell’s Today interview, full transcript

Mishal Husain: Let’s start with that economic picture. Do you agree with what the OBR said about growth; essentially that we’ll be poorer for longer, and about productivity? John McDonnell: I have to, based upon the information that they’ve arrived at that judgement. I think it’s something that we’ve been pointing out for a number of years now; that if you don’t invest in your economy, inevitably that will impact upon productivity, and that will impact upon growth, and, importantly, that will impact upon people’s wages. The prediction now from The Resolution Foundation is that average annual pay is going to be £1,000 lower in 2022 than it was forecast

James Forsyth

Michael Fallon calls for a revival of shareholder capitalism

In the Budget debate today, Michael Fallon made his first intervention since resigning from the government over misconduct allegations. Fallon’s contribution was broadly loyal to the government, taking the fight to Labour in his typical style. But he said he’d seek an opportunity in the near-future to talk, with greater freedom than collective responsibility had allowed, about the appropriate levels of defence spending needed to deal with today’s threats. Fallon had four policy proposals to make. First, he argued that the National Insurance threshold should be raised in line with the income tax one. He pointed out that we are now in a situation where some low paid workers are

Steerpike

Listen: John McDonnell fails the numbers test

It’s something of a terrifying thought, but if Labour defeat the Tories at the next election, John McDonnell will be the new occupant of No.11 Downing Street. One of his main roles as chancellor will be to have a grasp of the numbers that matter. But it seems that may be too much to ask from McDonnell. On the Today programme, he was quizzed on the amount it costs Britain to service its debt. Given that Labour wants to up borrowing, this seems like a particularly important thing for the shadow chancellor to know. Unfortunately, it would seem he doesn’t have a clue. McDonnell initially tried to bat the question

Mutti the peacekeeper

No leader is indispensable, but it does feel like the future of Europe stands or falls with Angela Merkel. She’s been the godmother of the European Union for almost 15 years, and other leaders have learnt to accept one unspoken rule: Merkel is the adjudicator. Her aura of supreme power infuriated Nicolas Sarkozy, who wanted it for himself. Greece’s leftist leader, Alexis Tsipras, fumed that Merkel wanted to make his country a vassal state, ruled by Berlin and the gnomes of Frankfurt. But now she’s at risk of losing her power, and even her enemies fear that her absence will pull Europe in different and conflicting directions. One newly elected

Legal challenge

Last week the Daily Telegraph’s front page showed the 15 Tory MPs who had voted against the government under the headline ‘The Brexit Mutineers’. One of the first things pointed out was that two thirds of the group were lawyers. (In fact, only nine of the 15 are barristers or solicitors; a tenth is the son of a High Court judge, but in the hereditary meritocracy in which we live, that counts as the same thing.) This seemed to be taken as a point in their favour — who wouldn’t want our politicians to be sensible lawyers? Certainly, it contrasted with the disdain shown for journalist-politicians, like Michael Gove or

James Forsyth

The Irish gamble

Never has a European Council been so important to a British prime minister as this December’s is to Theresa May. In No. 10 there has long been a belief that if she can get ‘sufficient progress’ in the Brexit talks to move on to trade and the transition, it will provide her with a political adrenalin shot. This is why a reshuffle has been pencilled in for afterwards. But if she fails to achieve her aim at the December council, her premiership will be further destabilised. The trouble is that when it comes to Brexit, the Prime Minister tends to postpone talking to her cabinet until as late as possible.

James Kirkup

Lurking in the Budget is a problem much bigger and badder than Brexit

My Budget reaction is mostly: Meh. By that, I mean this won’t really change the weather, though it might just gee up some despondent Tories, who are cheered by the Stamp Duty cut regardless of what the OBR and others have to say about it (in short, it’ll push up prices and only really help people who were already close to buying; it does nothing for the people for whom home-ownership really is a distant dream.) Perhaps the best encapsulation of this was offered to me recently by a ministerial friend who is not, let us say, ordinarily upbeat about the May Government and its prospects.  This afternoon, this governmental

Philip Hammond is not the man to take the battle to Jeremy Corbyn

Philip Hammond began his first Budget, in March, by playing down its importance — for his big ideas on fiscal policy, he suggested we would have to wait until the autumn. It was a wait which was very nearly extended to eternity as he narrowly avoided losing his job in a post–election reshuffle. We found out this week that it was a bluff: he doesn’t have many big ideas, just a selection of small ones. Which, under the circumstances, is something of a relief. The Chancellor is getting better at telling Britain’s story, boasting about record employment and how the best-paid 1 per cent pay 27 per cent of all

Steerpike

Watch: John McDonnell’s BBC asset manager barney

As Jeremy Corbyn worked himself into a bother over Philip Hammond’s Budget in the Chamber, Labour’s shadow chancellor busied himself on the airwaves. Keen to show there was a better – more socialist – way, John McDonnell tried to explain to Andrew Neil why Labour had a more credible grip on the economy than the Conservatives. In order to try and make this point, McDonnell claimed many asset managers were impressed by his proposals – which include plans to invest through nationalisation. Given that Labour’s nationalisation plans include the government deciding how much to pay private companies for the assets, the presenters were intrigued to hear the claims: JM: When

Isabel Hardman

Corbyn’s anger gets the better of him in his Budget response

If we accept the usual caveat that it’s difficult for any Opposition leader, no matter how good, to respond well to a Budget straight after it has been delivered only in its broad-brush form, then we might conclude that Jeremy Corbyn’s response today was pretty good, all things considered. The Labour leader was angry and passionate, drawing a strong contrast with the endless wisecracks from Philip Hammond in his own statement. He decided to focus on how people would still be feeling after this Budget, which is a useful device when you simply have not had time to go through the small print that trips a chancellor up. He repeatedly

Katy Balls

Five things you need to know about Hammond’s Budget

After months of Tory nerves, Philip Hammond has just finished presenting his Autumn Budget in the Chamber. Among the main giveaways, the Chancellor announced more funding for the NHS as well as pitching to the young with his housing proposals and 18-30 railcard. He also announced measures to ease out the rollout of Universal Credit – including a one week reduction to the wait time. However, although the Chancellor was at pains to sound optimistic and shake off his Eeyore image, this was made difficult thanks to some grim statistics from the OBR. The OBR has revised down its forecast for annual growth quite significantly –  lower than envisaged after the Brexit

Isabel Hardman

Jeremy Corbyn says the B word during PMQs

Jeremy Corbyn rarely talks about Brexit at Prime Minister’s Questions, and it is interesting that he chose today’s session, which will get little attention as a result of the Budget, to probe Theresa May on the matter. The Labour leader did have a good stint, quoting a number of European negotiators, Tory backbenchers and Cabinet Ministers who have made comments to the effect that the British government doesn’t know what it is doing on Brexit. He also accused the Tories of blocking measures protecting workers’ rights and acknowledging that animals are sentient beings. But Theresa May was on good form, too, continuing to appear as though she is regaining her

Steerpike

Watch: David Davis crashes out

David Davis has just given a speech on the Brexit transition period – intended to prevent Britain from crashing out of the EU in a disorderly manner. But at the end of his address, it seems that he was personally advocating a different type of transition. As Davis said his goodbyes, he took a tumble. Mr S hopes it’s not a sign of things to come…

Tom Goodenough

What the papers say: The EU is in the grip of chaos

Donald Tusk’s jibe that Britain was no longer attempting to have its cake and eat it in Brexit talks was a clear dig at the Foreign Secretary. But now the EU is guilty of adopting the same approach, according to the Sun. Michel Barnier said yesterday that ‘he wants all his demands met’ on various issues, and also ‘wants a monstrous exit bung from Britain’. Theresa May has reportedly received the backing of her Cabinet to up this payment to £40bn. Yet this ‘won’t nearly suffice’ for the EU, says the Sun. And even if Brussels does agree, what will we get in return? ‘A trade deal which would still

Steerpike

The tin-eared chancellor: Philip Hammond’s ten worst gaffes

Tomorrow is D-day for Philip Hammond. As the Chancellor puts the finishing touches to his Budget, Tory MPs wait nervously – hoping it will be a day free of gaffes. Unfortunately, history suggests that this is unlikely. Over the years Hammond has earned a reputation for being tin-eared and ham-fisted. To get readers in the mood for his Budget, Mr S has compiled a list of the Chancellor’s worst gaffes: 1. There are no unemployed people Just this weekend, Hammond proved why he makes his colleagues nervous. Appearing on the Andrew Marr show, the Chancellor managed to turn one of his party’s top achievements into a toxic issue. Asked about

Steerpike

Sarah Olney causes a stir at Lib Dem HQ

Oh dear. Trouble is brewing at Lib Dem HQ over Sarah Olney. After losing her seat by 45 votes in the snap election, Olney was quickly appointed as Vince Cable’s Chief of Staff – beating several more conventional candidates (i.e. trained press officers) to the coveted job. At the time, Olney made a verbal agreement with Cable that she would not stand as a Parliamentary candidate – given that this would mean she would be unable to continue as Chief of Staff. So there was much surprise this month when Olney stepped down from the role so she could campaign to retake her old seat. At the time, Vince Cable

James Forsyth

What fresh German elections would mean for Brexit and Europe

Angela Merkel’s declaration that new elections would be better than a minority government suggests Germany will be heading back to the polls soon. Though, it should be noted that the decision on whether to call fresh election is technically the German president’s, not Merkel’s. The so-called Jamaica coalition, bringing together Merkel’s CDU, the CSU, the Greens and the economically liberal Free Democrats, can’t be made to work as the collapse of the talks last night showed. The other alternative that would produce a majority government, another grand coalition between the CDU and the SPD, remains highly unlikely. The current consensus in the SPD is that the party needs a spell