Politics
UK climate envoy to keep role at charity whose founders invest in fossil fuels | Climate crisis
The UK’s new climate envoy will retain her role on the board of a charity whose founders made a multimillion-pound donation to the Labour party and have investments in fossil fuels, the Guardian has learned.
Rachel Kyte, the former World Bank climate chief who was announced as the UK’s special representative on climate this week, is on the climate advisory board of Quadrature Climate Foundation, a charity set up by the founders of the Quadrature Capital investment company.
Quadrature Capital made a donation of £4m to the Labour party in May, and last year had investments in fossil fuels among its portfolio. Joy Morrissey, the shadow energy minister, this week wrote to the government asking whether the donation had played a part in the appointment and whether it had been considered a potential conflict of interest when making the appointment.
After controversy surrounded her appointment, some senior figures in the UK and global green movements rallied to Kyte, who is widely respected around the world for her decades of work on climate and development issues.
Kyte will retain her role on the charity board, the Guardian has learned, which operates independently of the investment company. She had no role in Quadrature Capital’s investments or decisions on political donations.
She will also retain her post as professor of practice in climate policy at the Blavatnik school of government at Oxford University. She may keep a small number of other external engagements.
Christiana Figueres, a co-founder of the Global Optimism thinktank and a former UN climate chief who oversaw the Paris agreement in 2015, said: “David Lammy [the foreign secretary] could not have chosen a more well-equipped person to help the UK government in their new commitments to mobilising climate finance, which has been the bane of climate negotiations for years, if not decades. She has devoted most of her life to the challenge of facilitating universal access to clean energy and will bring that experience to an exceedingly difficult mandate she has received.”
Laurence Tubiana, the French former diplomat who helped negotiate the Paris agreement and now leads the European Climate Foundation, which has also received funding from the Quadrature Climate Foundation, said: “Rachel Kyte is supremely well qualified to be a UK climate envoy,. She is a warrior on the global climate pitch, and David Lammy is lucky to be able to call on her. Her high-level expertise, especially on climate finance, would be valuable for the UK and the global climate community, especially in light of [the forthcoming climate summit] Cop29.”
Kyte’s role as special representative on climate at the Foreign, Commonwealth and Development Office (FCDO), answering to Lammy and the energy secretary, Ed Miliband, will be a paid position requiring engagement in high-level global diplomacy, forging alliances with developed and developing countries to tackle the climate crisis.
According to the FCDO, Kyte’s appointment underwent full due diligence under standard Cabinet Office procedures for direct ministerial appointments, and her external engagements will be reviewed on a case-by-case basis throughout her tenure to ensure no conflicts of interest.
Quadrature Climate Foundation was set up by Greg Skinner and Suneil Setiya, financiers who also founded Quadrature Capital, an investment and technology company. The Guardian reported this year that the foundation, run by the billionaire hedge fund bosses whose investment fund has invested in fossil fuel companies, had given millions of pounds in grants to several well-known climate campaign groups.
Jess Ayers, the chief executive of Quadrature Climate Foundation, said: “Quadrature Climate Foundation is a charitable foundation and operates in line with its charitable purposes and independently from Quadrature Capital Limited. QCF’s focus is on funding and supporting science-led solutions to climate change. Since its inception, QCF has committed over £700m to promote sustainable development and advance climate solutions globally. QCF is politically neutral and does not support any political party.
“QCF is building an advisory board to provide independent challenge and thought partnership to enhance its impact in the field. The advisory board has no decision-making powers. Rachel was appointed as co-chair of this board in December 2023 due to her outstanding leadership across the climate space, including her senior roles at the World Bank, UN agencies, and third-sector organisations. Rachel’s expertise has been further recognised through her appointment to this significant UK government role.”
Politics
Chancellor expected to hike employers National Insurance
The chancellor is set to increase the amount employers in the UK pay in National Insurance at the Budget.
Rachel Reeves is also expected to lower the threshold for when employers start paying the tax, but is not likely to introduce the levy to employer pensions contributions.
It is understood the changes could raise £20bn for public services, such as the NHS.
The move is thought to be the single largest revenue raiser of next week’s Budget, but other tax rises are also expected.
Politics
Labour MPs urge Keir Starmer to clarify stance on non-cash slavery reparations | Commonwealth summit
Labour MPs have urged Keir Starmer to clarify his government’s position on non-cash reparations for Britain’s historical role in the slave trade, as No 10 says the issue is off the table.
In the run-up to the Commonwealth heads of government meeting (Chogm), the government said it would not be issuing an official state apology.
While travelling to the conference, which began in the Pacific island nation of Samoa on Friday, the prime minister told reporters he wanted to “look forward” rather than have “very long endless discussions about reparations on the past”.
King Charles acknowledged “painful aspects” of Britain’s past but sidestepped calls to directly address reparations for slavery, saying “none of us can change the past, but we can commit … to learning its lessons”.
But despite the insistence from Downing Street that the issue was not on the agenda for the summit of 56 Commonwealth countries, leaders were prepared to defy the UK. A draft version of the final communique that was leaked to the BBC this week said leaders had “agreed that the time has come for a meaningful, truthful and respectful conversation towards forging a common future based on equity”.
After mounting pressure for the UK to engage in a “meaningful, truthful and respectful” conversation about Britain’s past, a source in No 10 said the UK could support some forms of reparatory justice, such as restructuring financial institutions and providing debt relief.
This was initially welcomed by the Labour MP Diane Abbott, who sits on the all-party parliamentary group for Afrikan reparations (APPG-AR), who said she was “glad that Starmer seems to have backed off from his complete hostility to the concept of reparations. It remains to be seen what he means by ‘non-financial reparative justice’.”
Some campaigners were frustrated by what they felt to be either a game of semantics on the issue, or a deliberate misrepresentation of what the campaign for reparations is. Among the long-established 10-point plan for reparatory justice by the Caribbean community (Caricom) is debt cancellation, while others have long campaigned on the link between reparatory justice and climate resilience.
Michael McEachrane, the UN rapporteur of the permanent forum on people of African descent, said: “Keir Starmer misrepresents reparations … It is a matter of taking responsibility for and transforming legacies of the past in the present.”
Only then, McEachrane added, would the Commonwealth community see “greater equity within and among countries”.
When No 10 was pressed to explain what it meant by non-financial reparative justice in Friday’s press briefing, a spokesperson pushed back on the idea.
The prime minister’s deputy spokesperson said: “Our position on reparations is clear, and that goes for other forms of non-financial reparatory justice too. The prime minister’s focus is on addressing the challenges that we face.”
In response, Abbott said: “Incredible that Starmer wants to treat the leaders of fellow Commonwealth countries with such disrespect. And it is offensive that he seems to be saying that he knows what they want to discuss better than they themselves do.”
Fellow Labour MP Clive Lewis questioned how Starmer and his team could go to the summit and not expect reparations to come up: “Has he not been paying attention to the African Union, Caricom, [the Barbados PM] Mia Mottley, the Bridgetown Initiative? This is what has been happening whilst he has been in politics.
“It looks very much like they’ve said, in a very kind of colonial mindset, that this is not for discussion. It’s not on the agenda. Well, that’s not going to go down well in a Commonwealth of equals.”
Lewis, who called in parliament for the UK to enter negotiations with Caribbean leaders on paying reparations for Britain’s role in slavery, said: “You have to ask the question, given that David Lammy himself is a son of Guyana, who has been talking about this for years, the person who came after Bernie Grant: someone lost a memo somewhere.
“I can’t believe that David didn’t know that this was going to come up, and someone must have told No 10 this was coming up … it is quite revealing of something.”
Politics
Some Home Office staff to get pay rise of over 9%
Some Home Office staff are getting an inflation-busting 9% pay rise, the department has confirmed.
The union representing civil servants, PCS, welcomed the deal, which is nearly double the 5% agreed for most civil servants.
The pay boost is meant to improve staff retention and morale, which is the lowest in the civil service.
But Conservative MP Neil O’Brien said the pay hike would “stick in the craw” of people worried about immigration and crime.
The BBC understands the pay rises will be backdated to the start of July and will range from 6% to 9.1% for executive officers working outside of London.
Inflation is running at 2.2%, according to the latest figures.
But the PCS union said its members “deserve rises significantly above inflation to reclaim pay that we have lost through years of below-inflation rises”.
The Home Office’s most recent annual report showed the cost of hiring temporary agency staff had tripled on the last two years to more than half a billion pounds, most of which was spent on dealing with illegal immigration, as well as the now-cancelled Rwanda deal.
A Home Office spokesman said the pay rises were in line with the civil service pay remit guidance.
He said: “This year’s pay guidance recognises the hard work and vital importance of all our staff and is broadly in line with others in the public sector.
“One relatively junior grade in a particular region has received the higher amount to bring them into line with their peers.”
PCS general secretary Fran Heathcote said she would continue to push for a “fair and sustainable long-term pay settlement” to make up for “many years” of below-inflation pay.
She said: “We have made progress in negotiations with the Home Office and we welcome the fact that the final offer would deliver increases for the admin and executive grades that are above the 5% headline figure in the civil service remit.
“We believe this is the best award that can be delivered through departmental negotiations alone.”
However, critics have questioned whether the recent performance of the Home Office staff justified a bumper pay rise.
The move comes as the number of migrants who have crossed the Channel in small boats so far this year topped 29,000, approached the total for the whole of last year.
O’Brien said: “I have no problem with people being rewarded for good performance.
“But with massive numbers crossing the channel, crime clear-up rates low and dangerous people getting let out of jail, this large pay rise will stick in the craw of a lot of people.”
Politics
Couple given go-ahead to sue governments over winter fuel payment
A Scottish couple have been given permission to proceed with a legal bid to overturn the scrapping of the universal winter fuel benefit for all pensioners.
Peter and Florence Fanning, from Coatbridge in North Lanarkshire, have argued both the UK and Scottish governments failed to adequately consult with those of pension age and did not release an equality impact assessment on the changes.
The judicial review required a judge’s approval to move to a full hearing, which has been given.
A hearing at the Court of Session in Edinburgh is now scheduled for 15 January.
The case will ask the Court of Session to rule on whether the decision to scrap the universal benefit was unlawful.
This would allow the petitioners to ask the court to, in effect, set aside the policy and restore the winter fuel payment to all.
A spokesperson for Govan Law Centre, which has taken the case for the Fannings, said their clients were “delighted” that permission had been granted.
They added they were awaiting a decision next week on whether civil legal aid from the Scottish Legal Aid Board would be granted.
The controversial decision has been criticised by trade unions and groups representing older people.
Chancellor Rachel Reeves previously announced the benefit needed to be means- tested from this winter due to a £22m “black hole” in public finances that she said Labour had inherited from the previous Conservative government.
The benefit is devolved but the Scottish government said it had to follow suit as £160m had been taken out its budget.
Mr Fanning stated in September that the decision created “manifest injustice” for those affected.
The couple were being supported by former Scottish first minister Alex Salmond, who put them in touch with Govan Law Centre and called the payment being scrapped “unacceptable”.
The Alba party leader has since died after suffering a heart attack in North Macedonia.
First Minister John Swinney said last month that he understood public concerns about the payment but that the Scottish government was having to face “hard reality” regarding budgets.
Earlier this month the SNP tabled a Holyrood motion calling on Sir Keir Starmer to reverse the decision.
A spokesperson for the UK government previously said it was committed to supporting pensioners and that millions would see their state pension rise by £1,700 during this parliament.
Politics
Many African kings opposed eradicating slavery
The government should “unequivocally reject” calls for the UK to pay reparations for its role in the slave trade, Tory leadership candidate Robert Jenrick has said.
He said calls for the UK to pay reparations were “based on false and misleading narratives about our past”.
Britain “worked harder than nearly any other country to eradicate the practice” in the 19th century, adding that the campaign against slavery was “opposed by many African kings”.
There have been attempts to get reparations discussed at a meeting of the 56 Commonwealth countries in Samoa.
Chancellor Rachel Reeves has already ruled out making payments, telling the BBC: “That’s not something that this government is doing.”
Prime Minister Sir Keir Starmer said the slave trade was “abhorrent” but that it would be better to focus on “today’s challenges” such as climate change.
Caribbean countries have been particularly keen to press the issue. Earlier this week, Bahamas foreign minister Frederick Mitchell told BBC Radio 4’s Today programme that reparations were not just about money but a matter of “respect, acknowledging the past was wrong and needs to be corrected”.
Kemi Badenoch, Jenrick’s opponent in the Tory leadership race, said the government was facing reparation demands because Labour politicians had “spent their time in opposition supporting these sort of fringe, unnecessary causes under the guise of decolonisation”.
“Now the British public are waking up to the reality of a Labour government that is ashamed of its own country – giving away the Chagos Islands, watering down Britain’s influence at the UN, and reducing our support for Israel in their fight against terror.
“If I am leader of the opposition I will ensure Keir Starmer is held to account for his deplorable actions.”
Reparations are actions that can be taken to amend for past wrongs. For example, in 2013, the UK government paid £19.9m to 5,000 elderly Kenyans who had been tortured by British colonial forces in the 1950s.
From the 16th century, the British government, along with other European countries, participated in the transatlantic slave trade.
It is estimated that between 1500 and 1800 around 12 -15 million people were trafficked from African countries to be used as enslaved labour in the Caribbean, North, Central and South America. Around two million died on the journey to the Americas.
Having been one of the big beneficiaries of the trade, Britain had a key role in ending the practice and abolished slavery in 1833.
As part of the policy, British plantation owners were paid £20m for the loss of their slaves, creating a debt the UK only finished paying off in 2015.
Addressing the Henry Jackson Society think tank in London, Jenrick said: “It was Britain that spent 1.8% of GDP between 1808 and 1867 on eradicating slavery – the most expensive moral foreign policy on human history.”
“It was a campaign in fact opposed by many African Kings.
“The West African squadron sacrificed their lives for liberty and freedom and it is high time that we recognise their contribution with a national memorial to honour them and everything that they did.”
The Royal Navy squadron was tasked with stopping vessels transporting slaves and was involved in freeing around 150,000 slaves in the 19th century.
Just as European nations were enriched themselves through the slave trade, some African slave sellers also profited from the practice.
Jenrick said calls for the UK to pay reparations were “based on false and misleading narratives about our past”.
Last year, a UN judge co-authored a report which estimated that the UK should pay £18.8tn for its involvement in slavery.
The report said the harm caused by the slave trade was “vast” adding: “Its repercussions resonate in the lives of descendants of the enslaved to this day.”
It also argues that descendants “even to this day” have lower incomes and poor health outcomes.
Historian Professor Sir Hilary Beckles told the report that slavery had led to the black population in the Caribbean experiencing high levels of diabetes, with Barbados and Jamaica “competing for the title of ‘Amputation Capital of the World.’”.
Politics
Chess fanatic playing Labour’s first big gambit
“Serious” and “determined” are words often used to describe Rachel Reeves, the UK’s first female chancellor.
But colleagues and friends have suggested the Labour MP’s public persona does not reflect her human side, with a loud laugh and deep love of Beyoncé tracks.
In her maiden speech in the House of Commons in 2010, she vowed to fight for “jobs, growth and prosperity” – likely centrepieces of Labour’s first Budget in nearly 15 years, on 30 October.
So who is Reeves, and how is she addressing the economic and financial challenges the country faces?
Reeves was born in south-east London in 1979, just months before Margaret Thatcher became prime minister at a time of immense social and economic change.
She has previously told the BBC her mother would tick off items on a bank statement against receipts while sitting at the kitchen table: “We weren’t poor, but we didn’t have money to waste.”
Her parents separated when she was at primary school, and she and younger sister Ellie, also a Labour MP, were shuttled between separate homes.
During the school holidays, the sisters would spend time with their grandparents in the Northamptonshire town of Kettering.
They would be taken to do the rounds of relatives’ houses, who would give them a 20p or 50p piece each. At the end of their week, they were taken to the local toy shop to choose their goodies. While Ellie would spend all her cash, the young Rachel would allow herself a smaller treat and save most of the money.
Decades later, Chancellor Reeves would say that kind of restraint defines her, and she has very much modelled herself on Gordon Brown’s “prudence” in the lead-up to Labour’s 1997 election win.
Chess talent
Reeves played chess from an early age, with her father teaching her the key moves. She became a national under-14 champion, and would “quietly thrash” any boys who might think they were in for an easy game, according to Ellie.
She has credited chess with teaching her “to think ahead, to plan a strategy”.
A keen flute player, she took her music GCSE a year early at Beckenham’s Cator Park School for Girls, a comprehensive, and would go on to gain four A grades at A-level.
Seeing the extent of cuts at her school, where the library had been turned into a classroom and the sixth form consisted of “two pre-fab huts in the playground”, she has said she was politicised by her own experience of public services. At the age of 16, she joined the Labour Party.
She went on to study Philosophy, Politics and Economics at Oxford University. As a student, she would host others before college discos, blasting out Destiny’s Child songs and dressing up in her room.
Rachel Reeves: The basics
Age: 45
Place of birth: Lewisham, south-east London
Education: New College, Oxford and the London School of Economics
Family: Married to Nicholas Joicey, a senior civil servant and former speechwriter to Gordon Brown during his time as chancellor. They have two children. Her sister is Labour Party chair Ellie Reeves.
Parliamentary constituency: Leeds West and Pudsey
After graduating, Reeves took on a role as an economist at the Bank of England.
She worked on the central bank’s Japan desk, looking at the country’s attempts to come out of stagnation in the 1990s.
During a secondment to the UK embassy in Washington, she met her future husband Nicholas Joicey, who had spent time as a film critic for newspapers and as a speechwriter to then-Chancellor Gordon Brown.
The path to Parliament was not an easy one though. There were two failed campaigns for the former seat of Bromley and Chislehurst, typically safe for the Conservatives.
Before becoming MP for Leeds West in 2010, Reeves moved to the city and spent time working there for the retail arm of Halifax Bank of Scotland.
She once had an interview for a job at investment bank Goldman Sachs, but turned it down. She said: “I could have been a lot richer.”
Entering Parliament, an early mentor on economic policy was Alistair Darling – the last Labour chancellor, during the financial crisis.
At his funeral last December, Reeves spoke fondly of enjoying lasagne and red wine with him and his wife.
She quickly rose up the party’s ranks, shadowing roles at the Treasury, Work and Pensions, and the Cabinet Office.
Brushes with controversy
While a friend has described her as politically “as hard as nails”, Reeves’ time in Westminster has not been without controversy.
She was accused of “utter hypocrisy” for paying students working in her offices only expenses, rather than a salary. She argued the students were on work placements and getting maintenance support.
Throughout Jeremy Corbyn’s four and a half years as Labour leader, she remained on the backbenches because she felt she could not endorse his policies. Called a “Red Tory” by some in the party, she described this as a “very unpleasant period” in an interview with the BBC’s Nick Robinson.
A former editor of the BBC’s Newsnight programme was forced to issue a written apology to Reeves after calling her “boring snoring” on social media in a post that was meant to be a private message.
While she said the incident was “deeply humiliating”, her key objective after Sir Keir Starmer appointed her shadow chancellor was to portray Labour as a steady, pro-business hand on the economy.
Last October, she admitted she “should have done better” after it emerged some passages in her book, The Women Who Made Modern Economics, had been lifted from other sources without acknowledgment.
She told the BBC some sentences “were not properly referenced” and this would be corrected in future reprints. The Conservatives mockingly called her a “copy and paste shadow chancellor”.
Following Labour’s landslide victory in July’s general election, Reeves was confirmed as the first woman to hold the office of chancellor in its 800-year history.
That was “beyond what a girl like me, from the ordinary background that I came from, could have ever dreamed of,” she recently told BBC Radio 5 Live’s Matt Chorley.
Among a number of early government announcements, she cancelled several infrastructure projects and approved a series of public sector pay rises.
But Reeves will not be delivering her first Budget until the end of October, nearly four months after arriving at the Treasury.
‘Black hole’
Labour argued the time was needed to allow the independent Office for Budget Responsibility (OBR) to properly assess the state of the UK economy. In 2022, Conservative Prime Minister Liz Truss and Chancellor Kwasi Kwarteng had sidestepped OBR scrutiny of their disastrous mini-budget.
But critics said the Budget was the new government’s main lever of change, and that therefore leaving it so long after taking office was a political error.
During the election campaign, Reeves had predicted Labour would inherit the worst economic situation since 1945. In July, she said a spending audit had uncovered a £22bn “black hole” in the public finances left by the previous government.
The Conservatives cried foul and accused Labour of not telling voters the truth about its intention to put up taxes.
During that campaign, independent analysts such as the Institute for Fiscal Studies observed that ruling out increases in income tax, National Insurance and VAT would severely limit Reeves’ room for manoeuvre in the Treasury.
Government sources have told the BBC the chancellor is now looking for tax rises and spending cuts totalling £40bn in the Budget.
One change she announced early was the scrapping of winter fuel payments for millions of pensioners not receiving means-tested benefits. It has proved highly controversial.
Another move unveiled ahead of the Budget was to change the way government debt is measured, to free up billions of pounds of extra investment in infrastructure projects such as roads, railways and hospitals.
Reeves is determined to remedy the UK’s long-term record of under-investment, setting up a £7bn national wealth fund to encourage private investment in green sectors and repeatedly emphasising the new government’s pro-business credentials.
As she prepares to deliver Labour’s first Budget since 2010, the chancellor has revealed she often chats to a number of senior figures.
“I speak to Gordon [Brown] regularly – I also speak to Tony Blair regularly,” she told Matt Chorley.
Despite their political differences, she also maintains a “good relationship” with Conservative predecessor Jeremy Hunt, she said.
“I may not be particularly impressed with the state of the public finances that he left me, but I do recognise that after Kwasi Kwarteng, he had a tough job to do as well.”
Reeves is politically close to Sir Keir, and also revealed they speak at least once a day, wherever the prime minister is in the world.
But there is a warning from a Labour veteran of the Blair-Brown era, former cabinet minister Lord Blunkett, that she needs to offer the public more hope and less gloom.
He told the BBC Reeves had “been left a terrible hand”, but that “post-Covid, we are a tired nation”, so “more miserableness won’t do”.
He also cautioned that this Budget would probably define the next five years, and that if Labour was going to win a second term, “you have to keep a degree of popularity”. As the Conservatives had found out, he added, “once you’ve lost it, it takes a very very long time to pull it back”.
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