Politics

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

Wednesday

21 Jun 2023

Rishinomics isn’t working

Tax rises would bring debts under control. The Bank of England would bring inflation back down again. The government would steadily win back the confidence of the financial markets, repair relations with the EU, remove some of the obstacles to growth and, once all that was in place, try and cut a minor tax or two. When he became Prime Minister, Rishi Sunak promised a very orthodox, centrist economic programme, and one that would have the full backing of the IMF, the financial markets and just about every respectable commentator. There is just one problem, however, and it is not exactly a minor one. It is failing, and failing badly.

Katy Balls

The by-election that should most worry ministers

When the political cabinet met on Tuesday, by-elections were on the agenda. The Prime Minister is facing four of them. David Warburton, suspended from the party last year over a sex and cocaine ‘sting’, is the latest to step down. On 20 July the Tories will try to defend his constituency of Somerton and Frome, Boris Johnson’s old seat of Uxbridge and South Ruislip and Nigel Adams’s Selby and Ainsty. Despite announcing she was also quitting on social media, Nadine Dorries is taking her time to trigger a vote in Mid Bedfordshire – and the whips’ office is assuming that she may hang on all the way to the next

Kate Andrews

Home truths: the crushing reality of the mortgage crisis

In December Jeremy Hunt hosted a mortgage summit, attended by lenders and the Financial Conduct Authority, to discuss rate woes. At the time, the numbers were at least moving in the right direction. During Liz Truss’s 49-day premiership, the FCA expected interest rates to rise to 5.5 per cent, an increase which was forecast to put 570,000 people into mortgage payment difficulty. Once Rishi Sunak and Hunt undid Truss’s mini-Budget, things looked calmer: a 4.5 per cent peak was expected, and 356,000 people were due to be in difficulty. Hunt was still struck by the figure. Horribly high, he thought. The Chancellor used the meeting to lay the foundation for

Freddy Gray

Is it the end of Silicon Valley?

39 min listen

Freddy Gray speaks to Joel Kotkin who is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. On the podcast, they discuss the collapse of Silicon Valley. With mass layoffs in the tech sector and a post-pandemic real estate downturn, Kotkin argues the Valley is entering a period of long-term decline – but can it come back from this? Produced by Natasha Feroze.

Isabel Hardman

Rishi Sunak borrows from George Osborne’s playbook at PMQs

Rishi Sunak had a much better Prime Minister’s Questions than he might have expected, given the worrying economic news this morning. The Prime Minister sometimes turns up with too much, over-caffeinated energy. Sometimes he tries to defend his government with attacks on Labour that don’t sound as though he came up with them himself. But today he was confident and repetitive as he argued that the strategy he and Chancellor Jeremy Hunt were pursuing was the right one. Keir Starmer led on inflation, quoting Conservative MP Lucy Allan’s warning that the country was facing a ‘mortgage catastrophe’. He asked if Sunak agreed with Allan. The PM replied: ‘It is also

Natasha Feroze

Could Britain turn into a stagflation nation?

10 min listen

Natasha Feroze speaks to Kate Andrews and Katy Balls about today’s inflation figures, stuck at 8.7 per cent despite predictions it would fall. As a flagship policy of Rishi Sunak’s to half inflation, what options does the Prime Minister have?

Joe Wallen

Imran Khan: The conspiracy against me

Pakistan is familiar with political unrest. No prime minister in its independent history has completed a full term in power; some of its most popular leaders have been assassinated or executed. Even so, the events of last month were extraordinary. On 9 May, in response to the arrest of former prime minister Imran Khan on corruption charges, thousands of protestors stormed buildings belonging to the country’s all-powerful military and set the army headquarters alight. More than 40 people died in the clashes with the army and police, and approximately 10,000 officials and supporters of Khan’s party, Pakistan Movement for Justice (PTI), were arrested. The country was on the edge of

Georgia L. Gilholy

Germany can’t continue to ignore Polish pleas for war reparations

The Nazi occupation of Greece decimated its finances, left hundreds of thousands of civilians dead and all but destroyed the country’s ancient Jewish communities. Some Greeks, including the country’s former president Prokopis Pavlopoulos, think Germany should pay reparations. At the feet of the Parthenon last week, a cache of lawyers met to discuss the pressing need for Greece and Poland, another erstwhile victim of the Nazi yoke, to receive its dues. Germany, so far, is playing hardball. This month’s conference was the culmination of a coordinated six-year effort to open up direct avenues of inquiry with the German government regarding Nazi-era reparations – an avenue Athens itself tried and failed

Michael Simmons

Sunak’s debt target is slipping out of reach

Threadneedle Street will have all the economic limelight this week as the Bank of England sets interest rates tomorrow. With this morning’s grim inflation update, a rate rise looks all but certain. But this morning, the Office for National Statistics (ONS) released an update on Rishi Sunak’s third pledge: to get debt falling. The figures show another target quickly escaping Sunak. Public sector borrowing in the month to May rose to some £20 billion, almost £11 billion more than the same month last year. That makes it the second most expensive May on record. Meanwhile, in the first couple of months of this financial year, the government borrowed just under

Kate Andrews

Britain risks turning into a stagflation nation

Inflation figures out this morning make for grim reading: the headline rate didn’t budge, sticking at 8.7 per cent on the year in May. Far worse, core inflation (which excludes food and energy) rose once again, to 7.1 per cent on the year in May, up from 6.8 per cent in April. This latest update from the Office for National Statistics carries far more weight than your usual monthly report. With mortgage costs spiralling into a crisis, the Bank of England will have been looking for any excuse to stick to a dovish interest rate hike or to even hold rates, as the Federal Reserve did last week for the first time

Andrew Tettenborn

Humza Yousaf’s troubling plan for an independent Scotland

Even with Nicola Sturgeon politically hors de combat, Scotland’s first minister Humza Yousaf has made it clear he intends to forge ahead with her plans to hold a second independence referendum. The Scottish government has produced its blueprint for the future constitution that could flow from such an independence vote. Any voter contemplating taking up Humza’s offer and voting Yes in a possible Indyref2 would do well to read this document closely. They could be letting themselves in for a great deal more than they thought. Put simply, the plan is to make the SNP’s soft-left Bruntsfield-style ideology an almost irremovable feature in Scottish public life. A lot will be familiar. The incredibly generous

Nigel Jones

Biden is right: China’s Xi is a ‘dictator’

Just as a stopped clock shows the correct time twice a day, so president Joe Biden, amidst the plethora of gaffes that regularly issues from his lips, occasionally utters the plain and unvarnished truth. So it was at a Democratic fundraiser in California yesterday when Biden called China’s president Xi Jinping ‘a dictator’. Explaining why he gave the order to shoot down a Chinese spy balloon that entered US airspace in February, the president said that Xi had been ‘embarrassed’ because the balloon had been blown off course and ‘he didn’t know it was there’. US diplomats, like secretary of state Anthony Blinken (who has just inconclusively met Xi in

Tuesday

20 Jun 2023

Lucy Dunn

Rebel backbencher creates trouble for the Scottish government

Scottish government minister, Lorna Slater, has managed to survive a vote of no confidence tabled by Conservative MSP Liam Kerr. The circular economy minister, and co-leader of the Scottish Greens, has faced heavy criticism for her handling of Scotland’s controversial deposit return scheme in recent months. To make matters worse, hours before politicians voted on Kerr’s motion, Slater was this afternoon forced to admit that the company running the scheme, Circularity Scotland, had appointed administrators. Though Slater saw off the vote, with 55 MSPs voting for the motion while 68 voted against it, her reputation did not escape unscathed from the rather unedifying debate. The anger at deposit return scheme-related

Steerpike

Mordaunt mauls Fleet Street’s finest

Penny Mordaunt might be the media darling since wielding the Coronation sword but it wasn’t always this way. The Leader of the House has had a fair few run-ins with the Four Estate in recent years, including last summer’s leadership election. So it was with great enthusiasm that Mr S attended tonight’s Parliamentary Press Gallery summer reception where Mordaunt was billed as the star speaker. Welcoming ‘friends – and Lord Frost’, Mordaunt introduced herself as ‘one of the handful of Conservative MPs not to have their own show on GB News.’ The former magicians’ assistant was quick to work her magic, referencing the infamous lobby briefing at which Mrs Thatcher’s

Mark Galeotti

The Kremlin is still afraid of Alexei Navalny

As Russian opposition leader Alexei Navalny is once again in court, facing charges that could extend his time in prison by 30 or more years, he is showing that he is not giving up his uneven but unyielding challenge to the Putin regime. When Navalny returned to Russia in January 2021 after recovering from a government attempt to poison him, it was to no one’s surprise that he was immediately arrested and sent to prison for nine years on spurious parole violation charges (which included the surreal accusation that he was in breach for not reporting to the police while he was in a coma). Since then, he has faced

Steerpike

Sturgeon’s dead cat wheeze

Coming soon to the Edinburgh Fringe: Evita without the self-awareness. Nicola Sturgeon trialled her one woman show today with an impromptu press conference at Holyrood, following her shock arrest less than a fortnight ago. Bravely, the former First Minister gave the performance of a lifetime, sticking to her Dalek-like insistence on her innocence while, er, managing to give away nothing new on the grounds that she is ‘heavily constrained’ by the police investigation. ‘I have done nothing wrong!’ she proclaimed, adding that she had ‘searched her soul’ on whether to step down as an SNP member but that, shock, horror, she had decided not to do so. How long did

James Heale

Parliament votes to ban Boris

10 min listen

In last night’s vote on the Privileges Committee’s report into whether Boris Johnson misled parliament, just six MPs backed the former prime minister. What’s the reaction in Westminster today? Also on the podcast, after shadow chancellor Rachel Reeves rowed back on Labour’s £28bn green projects pledge, why are both parties in such a mess on energy? James Heale speaks to Katy Balls and Fraser Nelson. Produced by Oscar Edmondson.

Tom Slater

Mark Zuckerberg won’t kill Twitter

Is Mark Zuckerberg losing his touch? Having just thrown tens of billions at his weird virtual-reality ‘metaverse’, only to see it flop with users, the Meta CEO and co-founder of Facebook appears to be spying another questionable new venture. It’s reportedly called Threads, a cloying techspeak name for what is essentially a rip-off of Twitter. You might think that the last thing the world needs is another Twitter, den of sanctimony and cancellation that it is. But not our Zuck. Threads appears to be an attempt to capitalise on the unease over at Twitter Towers, as advertisers and high-profile users alike have been rattled by Elon Musk’s unpredictable new leadership

Isabel Hardman

Neither party is fully trusted on the economy

Jeremy Hunt was bombarded by MPs worried about the ‘mortgage timebomb’ when he took Treasury questions in the Commons today. Everyone on all sides was concerned, and offering their own ideas of what to do and who to blame. One problem for the Chancellor is that ‘everyone’ includes members of his own party, many of whom are pushing him to do something ‘more Conservative’. The main ‘more Conservative’ policy that Tory backbenchers were promoting was mortgage interest relief. Jake Berry suggested it, arguing that without this kind of support, all the other money spent by the government would be wasted if people lost their homes. Other Conservative backbenchers including Jonathan

Steerpike

Full text: James Cleverly’s party season speech

To Dean’s Yard, for the second best party of the summer season. The Tory establishment assembled last night for ConservativeHome’s annual bash, hosted in the shadow of Westminster Abbey. It was this august event which kicked off last year’s summer madness: a point not lost on this year’s star speaker. James Cleverly, the Foreign Secretary, took to the lectern to deliver a veritable tour d’horizon. In a speech which encompassed everything from Ukraine and the Spanish Civil War to Jeremy Corbyn and Joseph Bazalgette, Cleverly riffed on music festivals, London refuse policy and even ConHome’s sponsors WaterUK and the RSPB. ‘Nobody is expecting tonight’s speech to be the starting gun