Politics

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

Thursday

4 Mar 2021

What Rishi Sunak could learn from the vaccine rollout

Barely a year has passed since Rishi Sunak’s first Budget. Its centrepiece was a £30 billion stimulus designed to calm nerves about Covid-19 even though barely 500 cases had been diagnosed in the country. The Commons chamber was packed, with not a mask in sight. Few that day would have thought that in a year’s time the country would be in its third national lockdown and the economy would have suffered its worst slump since the Great Frost of 1709. The pandemic has made a mockery of nearly every optimistic prediction. The government is now moving with extreme caution. Even though vaccines have a greater effect with every passing day,

Jonathan Miller

The provocative writer who could be the next French president

Montpellier The French ‘grand’ journalist Éric Zemmour is among the most watched, provocative and frequently prosecuted writers in the country. He is now contemplating a piratical presidential challenge that could blow open next year’s presidential election. A poll last month conducted for the news magazine Valeurs Actuelles says that Zemmour could win 13 per cent of the votes in the first round of the French presidential election. That’s more impressive than it seems. In the cavalry charge of a first round, when a dozen or more candidates are possible, 13 per cent is more than enough to unsettle not just the re-election campaign of President Emmanuel Macron. It could simultaneously

Edward Howell

Biden must learn from Trump’s mistakes on North Korea

Anniversaries are usually celebratory occasions, but not this one. It’s now been two years since the infamous Hanoi summit between Donald Trump and Kim Jong-un, and there is precious little to show other than an important lesson in how negotiations with North Korea can sour. Joe Biden is now nearing his first one-hundred days in office. Little has been said about dealing with the North Korea problem. But one thing is for sure: a US-North Korea summit is far from imminent. Following their first encounter in Singapore in June 2018, it suited Trump and Kim to meet again. For both leaders, the theatre and optics of their gathering was too good to resist a second

Wednesday

3 Mar 2021

Gerard Lyons

This was a Budget for the end of the Covid crisis

The Chancellor’s crisis management has been excellent. The Budget was another reflection of that, as Rishi Sunak unveiled further significant, targeted support to the areas of the economy that needed it most. Over the last year, fiscal policy has acted as the main shock absorber for the economy. Including measures announced today, a massive £352 billion has been spent on Covid support. This approach has been fully justified, with low inflation, rates and yields providing ample fiscal space. Debt dynamics have allowed the government to borrow cheaply from investors. Also, as we have seen over the last year, the Bank of England’s Quantitative Easing programme has led it to become

Steerpike

Caroline Lucas finds Rishi Sunak’s weak spot

Rishi Sunak’s Budget has been greeted fairly favourably. The Chancellor has succeeded in avoiding sparking uproar on the Tory backbenches. And Labour’s response was muted. But not everyone is happy. Step forward Caroline Lucas. The Green party MP, beamed in to the Commons from Brighton (where else?), found a fatal flaw in Sunak’s announcement: ‘I say in all seriousness, our nation’s health and prosperity would be better served by a Chancellor who cared rather more about hedges and hedgehogs and less about hedge funds’ Mr S is glad to finally hear MPs sticking up for the issues that matter…

Katy Balls

Will Rishi Sunak’s budget give Britain a boost?

14 min listen

Chancellor Rishi Sunak pledged a further £65bn in today’s budget, bringing the government’s total spending during coronavirus to more than £400bn. But aside from splurges on extending furlough and the Universal Credit uplift, and new ‘restart grants’ offered to ailing businesses, the first belt-tightening measures were announced. Income tax thresholds will be frozen, and cooperation tax on profitable companies will rise from 19 to 25 per cent in 2023. Katy Balls speaks to Fraser Nelson, James Forsyth and Kate Andrews about what it all means.

Bruce Anderson

Rishi Sunak is a prime minister in waiting

It is always a pleasure to see a first-rate mind in action, as we did during today’s Budget. Equally, when a Chancellor gives such an assured performance, especially if his Prime Minister is, shall we say, controversial, it makes people think. The bubble reputation is a fickle business, especially when Tory MPs are the umpires. In recent weeks, Rishi Sunak’s share price wobbled. Bears came into the market. Was this youngster as good as people had been saying? There were grumblings on the backbenches – admittedly not an unusual sound in the modern Tory party – about the prospect of tax increases. By the time the Chancellor sat down, the

Lloyd Evans

Rishi reveals his calculating streak

Before the budget, the TV pundits like to tell us about divisions between the PM and his next-door neighbour. The story is that boom-and-bust Boris can’t wait to splurge cash on a set of mega-projects that would put a Persian emperor to shame. Build a bridge. Burrow a tunnel. Concrete over an estuary and plonk an airport on top. He wants to tarmac his way out of trouble. But the smooth and neatly combed Chancellor, Rishi Sunak, plans to create fiscal stability and to take things from there. He looked every inch the central banker as he delivered his budget today with his gleaming hair and immaculate blue suit. Next

Kate Andrews

Will Rishi Sunak’s Budget give Britain the boost it needs?

For a man who has only delivered two Budgets, Rishi Sunak is no stranger to fiscal announcements. Last March’s £30bn spending splurge was just the start of hundreds of billions of pounds spent in the fight against Covid-19. Today Sunak pledged another £65bn: furlough and the Universal Credit uplift were both extended; incentive payments for businesses to take on apprentices were doubled; and ‘restart grants’ worth £5bn to help businesses get back on their feet were unveiled. But this Budget wasn’t all giveaways. The Tory Chancellor announced a new, tiered system for corporation tax, which hikes the rate from 19 per cent to 25 per cent in 2023 for the most profitable businesses. He

Katy Balls

Five things we learnt from the Budget

Since Rishi Sunak became Chancellor, he has been more focussed on spending money than raising it. Sunak has borrowed more in his first year in his job that Gordon Brown did in his whole time as chancellor. While today’s Budget saw Sunak extend several relief schemes, he also used it to take a few tentative steps to showing how he plans to put the economy on a solid footing following the pandemic. Stressing that fairness and honesty would define his approach, Sunak did what many in his party had warned against and raised taxes. Here are five things we learnt from Sunak’s Budget: 1. Corporation tax will increase to 25 per cent

Nick Tyrone

Labour is right to be scared of Rishi Sunak

Labour is terrified of Rishi Sunak. Today’s Budget showed exactly why. The Chancellor put in an impressive performance: It was assured and hit the right notes at the right times. It also laid the groundwork for a narrative on the economy that will work very well for the Tories. Sunak told voters that George Osborne’s cuts created the money that comprised the Covid recovery spending. This ties together the whole of the last decade of Tory rule in a neat package – something Boris Johnson has avoided doing with his ‘I’ve only been Prime Minister for five minutes’ routine. Labour folk will now complain and shout ‘Tory austerity!’ until they are blue in the face.

Steerpike

Galloway backs the Tories

Gorgeous George, the born-again Unionist north of the border, has had a revelation. In order to knock the SNP down a peg at the May elections, the Caledonian firebrand is going to have to do something that goes against every fibre of his socialist being. George Galloway is voting Tory. Once he was teaming up with Jeremy Corbyn to take on New Labour’s hated war in Iraq. Now he’s joining forces with Ruth Davidson to take on the Scottish Nationalists. An odd turn of events, perhaps, but not without precedent. In 2019 Galloway backed Nigel Farage’s Brexit party at the European elections, so incensed was he with the failure to carry out the referendum

James Forsyth

Why Rishi Sunak is hiking corporation tax

It might seem a strange thing to say about a Chancellor who is presiding over an annual deficit of £355 billion, but Rishi Sunak is a fiscal conservative. This is what explains his decision to hike corporation tax to 25p in 2023. He thinks that this move is necessary to begin to put the public finances on a sounder footing. The increase in corporation tax is offset by the so-called ‘super deduction’. This allows companies to write off 130 per cent of the cost of an investment against tax for the next two years. The aim is to try and boost investment and help address this country’s long-standing productivity problems.

Isabel Hardman

What the Budget is missing

If Daniel Defoe had been writing about modern budgets, he would have adapted his famous saying to include the certainty of death, taxes and an absence of a long-term plan for adult social care. Once again, the statement from the Chancellor had a yawning gap where the settlement for funding the beleaguered sector should be. There was no mention of social care in Rishi Sunak’s speech or in the Budget Red Book, either. The government’s answer to complaints about this is that ministers will publish a white paper on social care reform — but we’ve been hearing this line for years now. There was no mention of social care in Rishi

Gus Carter

The key moments from Sturgeon’s evidence

There have been inquiries, committees, multiple court cases and conflicting reports — the Salmond affair is as slippery as it is fishy. But the fundamental question is this: was there a conspiracy to take down Alex Salmond? Having been acquitted of 13 counts of sexual assault last year, the former first minister has alleged that there was a conspiracy — and that his protégé Nicola Sturgeon was involved. Last week he told the Holyrood inquiry that Sturgeon and her husband, SNP chief executive Peter Murrell, led a ‘malicious and concerted effort’ to remove their political rival and even have him imprisoned. Now Sturgeon has given her side of events. Here

Ross Clark

Rishi Sunak’s furlough trap

The trouble with emergency financial measures is that the crises used to justify them never seem to end. Just as the Bank of England couldn’t bring itself to think the time was ever right to reel back the ultra-low interest rates and quantitative easing it introduced at the nadir of the 2008/09 financial crisis, so the furlough scheme is steadily becoming a permanent part of Britain’s welfare infrastructure. Originally scheduled to end last June, it is to be extended yet again until the end of this September, by which time it will have been in operation for 18 months. This will be three months after all Covid restrictions are due

Isabel Hardman

Boris’s aid cuts problem isn’t going away

Sir Keir Starmer will have spent far more time preparing his response to today’s Budget which comes after Prime Minister’s Questions, but he did also manage to highlight a problem that isn’t going away for the government in his questions to Boris Johnson. The Labour leader chose to focus his stint on Yemen, criticising the British government’s relationship with Saudi Arabia, and the decision to cut international aid money to the war-torn country. Johnson insisted that ‘when it comes to the people of Yemen, we continue to step up to the plate’. The most instructive question was on whether MPs will get a vote on the cuts to aid. Starmer

Peter Hunt

Megxit and the War of the Waleses

A 99-year-old prince is in hospital. His 94-year-old wife is displaying an almost childish delight as she continues to dip her toe in our Covid imposed virtual world and unveils a statue from the comfort of her drawing room. The pandemic is just the latest extraordinary experience shared by a monarch and her consort. Some have been particularly painful and lingering. They’re a couple who bear the scars inflicted when relationships disintegrate. However, the lessons of Charles and Diana haven’t yet been learnt by their family. The War of the Waleses 2.0 is following a familiar, unpleasant path. The War of the Waleses 2.0 is following a familiar, unpleasant path

Steerpike

Five questions Nicola Sturgeon needs to answer

After the government published emails showing it continued a doomed legal fight with Alex Salmond despite warnings from their own lawyers that they would likely lose, Nicola Sturgeon is facing calls to resign. While the Scottish Conservatives are calling for a no-confidence vote in the First Minister, an SNP spokesperson has hit back – saying it is ‘utterly irresponsible’ to do so before hearing a single word of evidence from Sturgeon who is due to give evidence to a Holyrood inquiry looking into her government’s 2018 harassment investigation of Salmond. So, with Sturgeon’s job on the line, what does the First Minister need to say in order to cling on?

Ross Clark

House buyers will need to move quickly after the Budget

There is one certainty for every Budget day: that the chancellor will dream up some novel scheme to prop up the housing market. Rishi Sunak’s idea of providing state guarantees for 95 per cent mortgages taken out by first time buyers isn’t, however, that new. It is really just a reheated version of one branch of the Help to Buy scheme run by George Osborne between 2013 and 2016. This is the story of the property market over the past quarter century: in the long property boom of the late 1990s and early 2000s banks got themselves into huge trouble by advancing high loan-to-value mortgages. They did so in two ways: