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Keir Starmer reveals what needs to get ‘worse’ before it gets better

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Good morning from Liverpool. One reason why this has been an unusual Labour party conference is this is an unusual moment in British politics. We have just had an election that replaced a Conservative government with a Labour one — in any case something that doesn’t happen all that often — and a party conference that has taken place after the King’s Speech but before the first Budget, something I don’t think has ever happened before.

As a result, most ministers’ speeches have been pretty uneventful, as was Keir Starmer’s yesterday (other than him saying the word “sausages” rather than “hostages” in his speech).

Inside Politics is edited by Georgina Quach. Read the previous edition of the newsletter here. Please send gossip, thoughts and feedback to insidepolitics@ft.com

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One reason why Keir Starmer’s declaration that “things will get worse before they get better” has landed badly, at least in regard to his and the government’s approval ratings, is that it simply wasn’t clear to anyone really what needed to “get worse”.

In 2010, David Cameron and George Osborne’s argument was that what needed to get worse was some public services: some would have to do more with less money and some things would stop entirely. There was clearly a recognisable theory of change that enjoyed the support of his party and some outside of it.

The most significant thing Starmer did in his speech was to give the first indications of what “worse” actually might mean:

So if we want justice to be served some communities must live close to new prisons.

If we want to maintain support for the welfare state, then we will legislate to stop benefit fraud. Do everything we can to tackle worklessness. 

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If we want cheaper electricity, we need new pylons overground otherwise the burden on taxpayers is too much.

If we want home ownership to be a credible aspiration for our children, then every community has a duty to contribute to that purpose.

If we want to tackle illegal migration seriously, we can’t pretend there’s a magical process that allows you to return people here unlawfully without accepting that process will also grant some people asylum.  

If we want to be serious about levelling-up, then we must be proud to be the party of wealth creation. Unashamed to partner with the private sector.  

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And perhaps most importantly of all, that just because we all want low taxes and good public services that does not mean that the iron law of properly funding policies can be ignored, because it can’t. 

One thing to note here is that a lot of these involve building things and the attendant disruption that comes with them, and none of them really lay the groundwork for further reductions in what the state currently does more broadly.

Just before flying to New York, the prime minister reiterated to BBC Today that listing these changes was about staving off the “politics of easy answers”: “Obviously there are always considerations about where you put anything, but this general idea — we’ve had it from the last government in spades — where you promise more houses, but then everybody can say ‘but not near me’, cheaper electricity but we can’t build the pylons, more people to prison but we haven’t built the prisons.”

British politics is going to continue to be in an odd state of phoney war between now and the Budget on October 30. But I think we should all expect to see in that Budget quite a lot about building and infrastructure.

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Because I am deeply misanthropic, there comes a time during party conference season when I am seized by a desire to spend the evening in my own company watching a film. I saw His Three Daughters again, which is now on Netflix, and really is a terrific movie.

Top stories today

  • Struggling on | Troubled intercity rail operator Avanti West Coast will not be stripped of its contract early by the UK government, according to people with knowledge of the plans. 

  • ‘For women, prison isn’t working’ | A new “women’s justice board” will be set up to cut the female prison population in England and Wales as part of a longer-term push to reduce the number of women’s jails, the justice secretary has said.

  • SNP under pressure | The number of homeless households in Scotland has hit a 12-year high as a widening housing crisis across the UK leaves record numbers in insecure accommodation.

  • Drab deal? | Corporate chiefs will be asking Labour to refund them for a £3,000-a-head business day at the party’s conference. The Times’s Geraldine Scott and Aubrey Allegretti heard from three companies that they would be asking for their money back after they got “minimal time” with ministers and were “talked [at] from the stage for four hours”.

  • Little rabbit | Rachel Reeves is considering boosting childcare funding to fuel growth, as a rabbit in her Budget, reports Bloomberg. According to people familiar with the matter, she sees parents returning to work as a way to boost growth and improve productivity, though one person warned she is yet to sign off any spending plans for October 30 and is unlikely to approve large commitments.

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Green Jellyfish and Kirby and Haslam raided by HMRC

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Green Jellyfish and Kirby and Haslam raided by HMRC
BBC Front aspect of a large office building showing entrance and windows. The pavement can be seen alongside signage. BBC

Two of the companies raided by HMRC, Green Jellyfish and Kirby and Haslam, are located inside the Union Building in Norwich

Eleven people have been arrested at locations around the country on suspicion of tax relief fraud.

It follows raids by HM Revenue and Customs (HMRC) officers at a number of premises on Tuesday.

The BBC understands warrants were executed in Norwich at the companies Green Jellyfish and Kirby and Haslam.

Both companies said they had “nothing to hide”.

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According to HMRC, the arrests were part of a coordinated operation to tackle suspected abuse of the research and development (R&D) tax relief system.

This scheme is intended to support companies investing in innovative science and technology projects.

A spokesman said a number of other individuals had been invited to attend an interview under caution.

They would not confirm the names of the businesses raided, stating: “We do not comment on identifiable taxpayers.”

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Submitted Blurry picture of a man wearing a tactical vest outside a business premises in Norwich. The man is seen talking on a mobile phone. Submitted

An HMRC officer pictured outside Union House on the day warrants were executed

One eyewitness in Norwich said they were stopped from entering the building by HMRC personnel and that officers were posted on each floor.

“I walked in in the morning when I was greeted on the staircase,” they said.

The witness added: “They asked me: ‘Who are you? Where do you work?’ and told me that I couldn’t go upstairs.”

“In the nicest way possible, they were like rats all over the building,” they said.

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Another described how they saw at least ten officers who had arrived at 07.30 BST and remained at the premises all day.

Green Jellyfish and Kirby and Haslam are both located at the Union Building on Rose Lane in Norwich.

The name Green Jellyfish is used by a number of companies registered at the same premises and one, Green Jellyfish Ltd, was formerly known as “Kirby and Haslam 1” before registering a change of name in 2023.

Businessman Sotiris Christophi is listed as the person with significant control of Kirby and Haslam.

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He could not be reached personally for comment.

‘We have nothing to hide’

Jonathan Smith, HMRC’s director responsible for agent compliance, said: “These arrests are just one small part of the comprehensive and wide-ranging action we’re taking to tackle suspected R&D fraud.

“We are committed to supporting honest businesses, and their agents, to get the tax reliefs they’re entitled to.

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“We urge anyone with information about any type of tax fraud to report it to HMRC online.”

Companies can reduce their tax bill or claim payable cash credits as a proportion of their R&D expenditure.

A spokesman for Kirby and Haslam said: “We welcome the investigation from HMRC and understand they have to look into all claims made.

“We have been and will continue to be fully cooperative as we have nothing to hide,” they added.

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Green Jellyfish said in a statement: “We understand that HMRC has a job to do, and we are fully cooperating and supporting them with the investigation, as we have nothing to hide”.

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Sainsbury’s checkout glitch saw ‘astonished’ couple charged £70 for a single veggie pizza

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Sainsbury's checkout glitch saw ‘astonished’ couple charged £70 for a single veggie pizza

A COUPLE were shocked after a trip to their local shop saw them charged nearly £70 for a pizza.

Angela, 65, and Graham Harrington 66, went to the Broadcut Sainsburys in Fareham, Surrey, on Saturday to grab some wine and a few other items when they were handed the massive bill for more than £170.

Angela and Graham were shocked to see a pizza had cost them nearly £70

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Angela and Graham were shocked to see a pizza had cost them nearly £70
The couple were baffled to see the bill

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The couple were baffled to see the bill
They had only gone to Sainsbury's for wine and a couple of other items

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They had only gone to Sainsbury’s for wine and a couple of other items

The pair then saw a 14in veggie pizza had cost them a whopping £69.82.

The couple, both retired with 10 grandchildren, were doing a “smart shop” on Angela’s phone, but Graham said, “it wasn’t so smart”.

When they got to the checkout, they were baffled at the £170 bill.

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Angela said: “We’ve only got 12 bottles of wine at £10.50 each, with a 25% discount, and a few other items which went through fine.”

A 14” deep pan veg pizza drove the price up with its £69.82 price tag. “Where that came from we’ve no idea. We would never buy a vegetarian pizza. It was really really strange”, said Angela.

She added: “We didn’t buy any pizzas whatsoever. We called the staff member over and said ‘this doesn’t seem right.’”

The staff member quickly fixed it, but “everyone was looking amazed because they don’t sell pizzas at that price,” she said.

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“It seems to be the talk of Sainsbury’s now, and when we went in there again today, they said, ‘Oh, here she is’.”

Angela said the staff “were astonished” and “had no idea what could have gone wrong; there was no explanation for it”

The couple were also astonished at the pizza’s price tag, adding: “How many people is that for?”

‘It’s about time,’ cry drivers as FBI spotted at tow shop that ‘stole’ legally parked cars – and made $10ks doing it

Angela warned: “If we hadn’t have looked to check that bill or if anyone else was doing their weekly shop, they could easily have paid the bill.

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“You don’t know what else could have been added to your shopping without your knowledge.

She added: “When I told friends and family they thought it was quite funny and weird.

“But I have been warning people to check their shopping before they pay for it because you don’t know what might be on there”.

Angela confirmed the event hadn’t deterred them from Sainsbury’s.

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The Sun has contacted Sainsbury’s for comment.

It comes after Sainsbury’s stunned shopper once again but this time, due to the arrival of iconic Christmas food on the shelves.

Sainsbury’s shoppers couldn’t believe their eyes when it appeared that mince pies were already on sale.

They took to X, formerly known as Twitter to share their discovery.

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One customer wrote in the caption: “Stock up on your mince pies (take in Sainsbury’s a few days ago, so it was actually August!!!!).”

Another shopper who also took to X, wrote: “On Sept 1 I walked into my local Sainsbury and what did I see on the shelves?

Mince pies – freaking…minced…pies.

“Bloody hell Sainsbury’s it’s not even October yet.”

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Sainsbury’s is currently selling a pack of six 320g mince pies for £1.70 online.

How to avoid being overcharged

  • Make use of supermarket loyalty cards and schemes.
  • Budget.
  • Get an idea of how much your shop should cost.
  • Always check your receipt.
  • If you think there’s an issue, query at the till.

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Singers bring the Royal Opera’s ultra-minimal Eugene Onegin to life — review

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In creating an opera out of Pushkin’s revered verse novel Eugene Onegin, Tchaikovsky said he had been attracted by the “everyday, simple, universally human emotions”. He shied away from a premiere in a major opera house, citing the lavish sets and stale routine that he saw in most.

There can be no worry about that here. In the Royal Opera’s new production in London, director Ted Huffman has gone for minimalism at its most extreme. For much of the evening there is nothing on the stage except for two hard-backed chairs, while a cloud of strangely immobile dry ice hangs in the air.

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There can be pluses and minuses to this approach, but the minuses have won. Intimacy, so important in this opera, cannot be found on such a wide, bare stage and Huffman compounds that by having characters join in scenes where they do not belong. Tatyana dictates her letter — surely one of the most private moments in opera — to her sister. Then both of them show up uninvited for the duel at dawn.

The production’s updating is arguably less of a problem. Although Tchaikovsky was adamant that Eugene Onegin had to be set in 1820s Russia, these “everyday” people can exist in almost any period or place, the art deco chandeliers and casual, modern clothing here suggesting a time closer to the mid-20th century.

The main plus is that the Royal Opera has cast Pushkin’s young characters to the life. Kristina Mkhitaryan’s Tatyana credibly plays the naive teenager at the start and grows with elegance into the Prince’s wife in the closing scenes. Her voice is on the bright, hard side, but more than anybody else she fills this bare stage with feeling. The hushed intensity she brings to the heart of the letter scene is the high point of the performance.

Her Onegin is Gordon Bintner, who is tall enough to look down superciliously on everybody else and has mastered the most overbearing of loping gaits. As Onegin pointedly does not kill Lensky in this production, he comes across a touch more sympathetic after the duel scene. Bintner fields a lyrical baritone with beauty and resonance, and sings splendidly in the aria, but is not so imposing vocally elsewhere.

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A man wearing a pink jacket stands looking fierce while clutching a bottle of clear liquid in one hand
Liparit Avetisyan as Lensky © Tristram Kenton

Liparit Avetisyan, familiar from Verdi roles with the Royal Opera, projects well as Lensky. Avery Amereau is the delightful Olga, not too heavy of voice, and Alison Kettlewell and Rhonda Browne are well contrasted as Madame Larina and Filipyevna. Brindley Sherratt took over at the 11th hour as Prince Gremin. Christophe Mortagne brings authentic French tones to Monsieur Triquet, but we did not need his clown alter ego haunting the action.

There have been a number of Royal Opera productions on an empty stage in recent years and their open acoustics can make life difficult for the singers. Huffman, happily, has taken note and makes sure they are at the front of the stage for anything important. This is helpful, as conductor Henrik Nánási does not spare the decibels, pushing pacing and passion to the limit.

There is a strange disjunct here. What we see is colourless, emotionally chill. What we hear from the orchestra is overwrought. Between the two, the touching story of Pushkin and Tchaikovsky is struggling to come together.

★★★☆☆

To October 14, rbo.org.uk

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Systematic Investment Plans – Finance Monthly

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What is the Average Credit Score in the UK

Systematic Investment Plans (SIPs) are a popular and convenient way to invest in mutual funds. But how do you decide how to allocate your investment across different asset classes? Enter the 70:20:10 rule, a powerful framework for asset allocation within your SIP strategy.

Understanding Asset Allocation

Asset allocation refers to the strategy of dividing your investment portfolio across different asset classes like equity, debt, and real estate (though SIPs typically focus on the first two). This helps diversify your risk and potentially improve your investment returns.

The 70:20:10 Rule Explained

The 70:20:10 rule is a simple yet effective asset allocation strategy for SIP investors. Here’s how it breaks down:

70% in Equity SIPs

This portion of your investment goes towards equity funds that invest in stocks. Equity funds offer high growth potential but also come with higher risk due to market fluctuations.

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20% in Debt SIPs

This allocation goes towards debt funds that invest in bonds and fixed-income instruments. Debt funds offer lower risk and provide stability to your portfolio.

10% in High-Risk SIPs (Optional)

This is the most aggressive portion and can include investments in sectoral funds, thematic funds, or even a small allocation to gold ETFs (Exchange Traded Funds). This segment has the potential for high returns but also carries significant risk.

Benefits of the 70:20:10 Rule for SIPs

Diversification & Risk Management

By allocating across asset classes, you spread your risk and potentially mitigate losses if one asset class underperforms.

Balance & Growth

The 70:20:10 mix offers a balance between potential growth from equity and stability from debt, catering to your long-term goals.

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Flexibility & Customization

This rule is a starting point. You can adjust the percentages based on your risk tolerance, age, and financial goals.

Important Considerations

Risk Tolerance

Are you comfortable with market volatility? A higher risk tolerance might allow for a higher allocation to equity.

Investment Horizon

The 70:20:10 rule is generally suitable for long-term investors. As you approach your goals, you might want to increase your debt allocation for stability.

Financial Goals

Align your asset allocation with your goals. For example, a more aggressive allocation might suit a retirement plan decades away.

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Beyond the 70:20:10 Rule

While the 70:20:10 rule is a valuable framework, remember:

Market Conditions

Consider current market conditions when allocating assets.

Professional Guidance

Consult a financial advisor for personalized asset allocation advice based on your unique financial profile.

SIPs and the 70:20:10 Rule: A Winning Combination

The 70:20:10 rule offers a structured approach to asset allocation within your SIP strategy. By combining this framework with the discipline and convenience of SIPs, you can potentially build a well-diversified portfolio and navigate your path towards achieving your financial goals.

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Start Your SIP Journey Today!

Don’t wait! Embrace the 70:20:10 rule and the power of SIPs to embark on a confident and informed investment journey. Consult a financial advisor to craft a personalized plan and start building your wealth for a secure future!

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Eurostar set to join SkyTeam as first non-airline partner

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Eurostar set to join SkyTeam as first non-airline partner

Customers will be able to book combined rail and flight reservations “while enjoying SkyTeam benefits”

Continue reading Eurostar set to join SkyTeam as first non-airline partner at Business Traveller.

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Banks must refund fraud in five days but losses capped at £85,000

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Banks must refund fraud in five days but losses capped at £85,000

UK banks must refund fraud victims up to £85,000 within five days under new rules.

Most High Street banks and payment companies voluntarily compensate customers who are tricked into sending money to scammers.

But in a world first, these refunds will become mandatory from 7 October, the Payment Systems Regulator (PSR) has announced.

The watchdog has reduced the maximum compensation from a previous proposal of £415,000. It said the new cap of £85,000 would cover more than 99% of claims.

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It also announced that once a bank or payment company had refunded a customer, it could claim half back from the financial institution the fraudster used to receive the stolen money.

When criminals dupe their victims into sending them money by pretending to be a legitimate company, such as their bank or a tradesperson or by selling goods that do not exist, this is known as authorised push payment fraud (APP).

The number of cases of this type of fraud rose by 12% to 232,429 in 2023, with losses totalling £459.7m, according to UK Finance.

There is currently no requirement for banks to refund victims of APP fraud, but these new rules will change that from next month.

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The maximum refund was slashed after objections from the financial industry that it could cause problems for smaller firms.

Out of more than 250,000 cases in 2023, there were 18 instances of people being scammed for more than £415,000, and 411 instances where they lost more than £85,000, the PSR said.

David Geale, managing director of PSR said the new rules would mean all victims of this type of fraud would now get the same level of help.

“Whether you get reimbursed and how much can actually depend on who you bank with and that can’t be right,” he said. “We want to have a consistent experience.”

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He said claiming half the compensation back from the bank the fraudster used would be a “game changer” because it would incentivise the industry to shut down accounts sooner to prevent fraud and therefore payouts.

Asked whether smaller banks could get into financial trouble if they have to pay out lots of large refunds he said: “If they can prevent this happening then they haven’t got a bill to pay.”

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