Politics
Labour says it will cut benefits bill in its own way
The government says “radical” reform of the system for getting people off sick back into work will help it slash the welfare bill.
Government sources have confirmed Labour is looking to “deliver savings” on the amount is spends on welfare in 30 October’s Budget.
But it says the savings will be delivered through “our own reforms” – rather than Conservative plans.
It comes after reports Chancellor Rachel Reeves is considering sticking with Conservative plans to restrict access to benefits on the grounds of ill-health.
The government has not ruled this out, but is emphasising its own plans to “radically” shake up benefits for people whose health limits their ability to work.
Planned changes – in a draft blueprint entitled Get Britain Working – are expected to be published later this autumn.
Labour wants to make changes to the Work Capability Assessment, which is used to determine if people can receive additional income-related benefits because of a health condition or disability.
It is promising a “proper plan to support disabled people to work”, as well as an as-yet unspecified plan to ensure every young person aged 18 to 21 is either “earning or learning”.
The changes will come alongside Health Secretary Wes Streeting’s plan to send “crack teams” of doctors to hospitals in areas with highest number of people off sick.
It has named Newcastle, Bolton and Blackpool as three cities where doctors will be sent to help people get back into the workforce.
Economic inactivity has spiralled post-pandemic, now affecting 9.3 million people who are neither in work nor looking for a job – a rise of 713,000 since Covid.
One in eight young people are now neither in education nor work.
New statistics show that 1.8 million inactive people – including 600,000 who are long-term sick – want to get back to work.
Kendall called the new figures “a shocking indictment of the inheritance left by the Conservatives and a stain on our nation”.
“The UK continues to be the only major economy whose employment rate hasn’t recovered from the pandemic,” she said.
“We will harness all the skills of the British people to get our country working again and our economy growing again.”
The reforms promise a major overhaul, combining Job Centres with the National Careers Service to offer better support and empowering local leaders to come up with solutions for boosting employment.
In the run up to the Budget, there has been speculation Chancellor Rachel Reeves is considering welfare cuts to help fill a reported £40bn spending gap.
The Work Capability Assessment decides what work-related conditions claimants must meet in order to keep getting benefits in full, and whether they are eligible for top-up payments.
Reeves is reportedly planning to stick with plans announced by her Conservative predecessor Jeremy Hunt to make changes to the test, which the Tories claimed would save an estimated £1.3bn a year by 2028-29.
The government also inherited a public consultation on changing Personal Independence Payments (PIP), a separate payment paid to working-aged people, including those in work, to cover additional health-related costs.
Changes considered by the Tories included replacing monthly cash payments with a vouchers system or one-off grants towards particular costs.
To date, Liz Kendall has not said whether she supports or opposes the thrust of her Tory predecessor’s proposals.
Employment Minister Alison McGovern told Radio 4’s Today programme: “If we do the same as the Tories have done for 14 years, we’ll have the same failure.”
Politics
Reeves considers income tax threshold freeze
An announcement in the upcoming budget of a continued freeze on income tax thresholds beyond 2028 would not constitute a breach of Labour’s election manifesto promise, government sources have insisted.
In the run-up to June’s general election, both leader Sir Keir Starmer and the soon-to-be Chancellor Rachel Reeves pledged to “not increase taxes on working people”.
But a threshold freeze could allow the chancellor to raise an estimated £7bn by bringing more people into the tax system.
Reeves is currently trying to find £40bn through a mixture of savings and tax rises that she will announce in the new government’s first budget on Wednesday 30 October.
Tax thresholds were frozen by the previous Conservative government in 2022, but were due to rise again each year from 2028.
The chancellor is now said to be weighing a plan to extend the freeze for the remainder of the parliament.
The decision not to increase tax thresholds would continue a process called “fiscal drag”, in which more people are “dragged” into paying tax, or higher rates of tax, as their wages rise and cross the unchanging thresholds.
If Reeves goes ahead with the plan, roughly 400,000 more people will find themselves paying income tax at the basic rate.
Government insiders have insisted this does not breach Labour’s manifesto pledge to “not increase taxes on working people”.
Sources are pointing to the exact wording of the manifesto, which states that the “rates” of income tax would not rise.
In other words, in England, Wales and Northern Ireland these would remain – depending on income – at 20p, 40p and 45p.
But as people’s wages increased, so too would their tax bill.
In 2019, the Conservatives also pledged not to increase tax “rates” – and went on to freeze tax thresholds.
At the time, this was denounced by the Labour opposition as a “stealth tax”.
However, it is not one the party has specifically pledged to reverse.
Labour’s opponents will argue that an extension of a freeze would undermine the party’s wider-ranging promise not to increase taxes on working people.
Reeves has just 11 days to firm up her plans ahead of Budget day.
The country’s first female chancellor has warned of a £22bn “black hole” in the public finances – a gap caused by the rules the government has chosen to follow governing how much money it can borrow over the next five years.
Filling this hole would only be enough to “keep public services standing still”, the chancellor said this week.
This means she is hoping to find £40bn in order to avoid real-terms cuts to government departments.
Reeves has warned of “difficult decisions” ahead.
Politics
Senior Unite union official loses unfair dismissal claim
A senior official at one of the UK’s largest trade unions has lost an unfair dismissal claim amid a police investigation into allegations of bribery, fraud and money-laundering at the organisation.
Howard Beckett was assistant general secretary at Unite the Union until his suspension in August 2022, four months after police raided the union’s London headquarters.
In his tribunal judgement, employment judge Richard Nicolle said police searches had also taken place at Mr Beckett’s “flat in London and home on the Wirral on 6 April 2022”.
Mr Beckett argued the claims against him were “baseless”.
His lawyer has told the BBC he is appealing the Employment Tribunal’s judgement, has launched legal action against the union and its general secretary for breach of privacy, and he noted the judge had been critical of Unite.
Mr Beckett was initially told his suspension was due to allegations of “misleading” the union’s ruling executive council in relation to the construction of its vastly over-budget hotel and conference centre in Birmingham.
The project was originally estimated to cost £7m but more than £100m was eventually spent.
An independent valuation later concluded the finished building was worth only £29m.
General secretary Sharon Graham commissioned an inquiry which, the tribunal said, led to the discovery of £14m which did not feature “in the final accounts and it remaining a mystery as to how and when this figure had been assessed and then presumably paid” to a contractor.
Mr Beckett was also told he had been suspended due to “concerns about the probity of awarding contracts for affiliated services”.
A close ally of former Labour leader Jeremy Corbyn, Mr Beckett was off sick for almost 18 months before he resigned from Unite in January 2023.
His lawyer told the tribunal Mr Beckett had not been well enough to participate in a disciplinary hearing and the union’s disciplinary charges were “baseless”.
The employment judge rejected this, and also found Mr Beckett had not been demoted as he had claimed.
The judge did, however, say there were “significant deficiencies” in Unite’s “investigation and disciplinary processes”.
Judge Nicolle wrote: “It would have been extremely surprising in the Tribunal’s view had [Unite] allowed its Head of Legal to return to active employment in circumstances where there were ongoing police investigations into very serious matters to include bribery, money laundering and offences under proceeds of criminality legislation.”
Ms Graham, who succeeded Len McCluskey as Unite general secretary in 2021, did not give evidence to the tribunal.
The BBC has contacted Unite the Union for comment.
Politics
Labour tiptoes nervously towards a China policy
Labour declared after the election that “Britain is back” on the world stage after years of Conservative retreat.
But when it comes to China, the government is tiptoeing nervously in the wings.
David Lammy’s trip to China is rare – he is only the second foreign secretary to visit in six years.
He held talks in Beijing with his powerful counterpart, Wang Yi, and Vice Premier Ding Xuexiang, before heading to Shanghai to meet British business leaders on Saturday.
You might think the Foreign Office would want to make a big thing of it, to emphasise the importance of the diplomatic repair job the foreign secretary is bent on.
But instead, the trip is taking place sotto voce.
There is little media access to Mr Lammy. There are no announcements about a new trade agreement, or cooperation on policy.
Whitehall sources tell me this in part the fault of Downing Street which, they say, is increasingly gripped by caution after a febrile few weeks.
No10 officials want to avoid political rows ahead of the Budget later this month. They do not want Labour and Conservative MPs to unite in accusing the government of putting economic gain ahead of human rights and international law.
There is a strong cross-party caucus in Westminster that is China-sceptic; seven MPs and peers remain officially sanctioned by Beijing as a result.
They are already accusing Mr Lammy of backtracking on pre-election promises to push the international courts to declare China’s treatment of the Uighur minority as genocide.
China audit looms
Perhaps the chief reason for the low-key nature of Mr Lammy’s visit is that Labour is still working out its policy towards China.
It is conducting what it calls a cross-Whitehall “audit” of Britain’s relationship with the country, which is not due to complete until next year. It is then that Chancellor Rachel Reeves, and perhaps even Prime Minister Sir Keir Starmer, may visit China.
For now, the government has a holding position which it sums up in three words: “challenge, compete, cooperate”.
It says it will challenge China on human rights abuses and its support for Russia in Ukraine. It will compete with China over trade. And it will cooperate with China over shared interests, such as global health and climate change.
If this sounds familiar, that is because other western powers use similar language. And the previous Conservative government’s policy was to “protect, align and engage”.
However, both parties have found it difficult to work out where precisely to draw the line.
Does “compete” involve banning Chinese electric vehicles from the UK’s automotive market?
Does “challenge” mean restricting lucrative Chinese students from attending cash-strapped UK universities?
Does “cooperate” involve sharing private medical research to help prevent a future pandemic?
‘New starting point’
The head of MI5, Ken McCallum, spoke only last week of “a threat that manifests at scale” from China, targeting Britain’s information and democracy.
Mr Lammy’s more prosaic aim on this visit is simply to re-establish some kind of working relationship with Beijing.
Under the Conservatives, UK-China relations blew hot and cold, between the diplomatic warmth of the so-called “golden era” to the hawkish aggression of more recent Conservative leaders.
Last year, then-Prime Minister Rishi Sunak called China the “greatest threat” to Britain’s economy; then-Foreign Secretary James Cleverly visited Beijing calling for re-engagement; his successor Lord Cameron resolutely ignored the country.
Mr Lammy says he wants to re-establish what he calls a more consistent and pragmatic relationship.
During his talks with Mr Wang, he said he was “struck by the scope for mutually beneficial cooperation on the climate, on energy and nature, of the science and tech, on trade and investment, on health and development.”
He said Beijing and London should “find pragmatic solutions to complex challenges”.
China appears up for that. Mr Wang said China-UK relations were “standing at a new starting point” and spoke of “our boosted confidence in bilateral cooperation”.
He even referred by name to Mr Lammy’s foreign policy slogan – “progressive realism” – which Mr Wang said, “has positive significance”.
So far, so conciliatory.
Drawing the line
Of course, Mr Lammy said both countries had “different perspectives” on some issues.
In a statement after the talks, the Foreign Office said he raised concerns about China’s military support for Russia in Ukraine, and how that was damaging China’s relationships in Europe.
The department also said he raised China’s treatment of the Uighurs in the Xinjiang region, “serious concerns” over the implementation of new national security laws in Hong Kong, and called for the release of the British media tycoon Jimmy Lai, who has been arbitrarily detained there.
But it insisted the meeting was “constructive across the full breadth of the bilateral relationship” and both sides committed to “regular discussions” at ministerial level.
For that ultimately is what this trip is all about: re-establishing links with the Chinese government.
The government’s priority is economic growth, and that is hard without a working relationship with its fourth largest trading partner.
But when it comes to China, it still remains unclear where Labour will draw the line between challenging, competing and cooperating.
Politics
No UK apology over slavery at Commonwealth
The government has said there will not be an apology over Britain’s role in the transatlantic slave trade when King Charles and Sir Keir Starmer visit the Commonwealth summit in Samoa next week.
A Downing Street spokesperson had already ruled out financial reparations.
Last year, the King spoke of his “greatest sorrow and regret” at the “wrongdoings” of the colonial era on a visit to Kenya, but stopped short of an apology, which would have depended on the agreement of ministers.
The Commonwealth Heads of Government Meeting, to be held in Samoa on 25 and 26 October, will bring together the leaders of 56 countries.
But even if the issue of historic links to slavery is raised at the summit, the UK government has told the BBC there are no plans for a symbolic apology.
Instead the focus will be on current issues, a government spokesperson said, such as “shared challenges and opportunities faced by the Commonwealth, including driving growth across our economies”.
Speeches from monarchs are made on the advice of ministers. This means the King would be unable to make an apology over the UK’s links to slavery unless he had the approval of the government.
Labour MPs including Bell Ribeiro-Addy had called for the UK government to officially apologise for its participation in the slave trade.
David Lammy, as an MP on the opposition benches in 2018, had said: “As Caribbean people we are not going to forget our history. We don’t just want to hear an apology, we want reparations.”
But with Labour now in power, Downing Street has ruled out an apology over slavery and ended speculation of any statement at the Commonwealth meeting in Samoa, which would have been the first international platform for such an apology to take place.
It means that the policy of not apologising continues from the previous government, when prime minister Rishi Sunak last year rejected the idea and said “trying to unpick our history is not the right way forward”.
Opponents of an apology have pointed to Britain’s prominent role in ending slavery, including legislation in 1807 to abolish the slave trade.
Discussions of formal apologies or reparations could still be raised by other countries, with Caribbean leaders having argued for some financial recognition of the legacy of slavery, with figures of £200bn being quoted.
The Commonwealth summit will also vote on a new secretary-general and all three of the candidates are supporters of reparations for transatlantic slavery.
It is an issue which strongly divides the public, including readers of the BBC’s Royal Watch newsletter, who got in touch by email.
“Those of us living now should not be made to feel guilty or apologise for something that had absolutely nothing to do with us,” Ruth, from the UK, said.
“We don’t like what happened, but we weren’t around then, so why should we say sorry?”
Ronald, from Bristol in the UK, took the opposite view.
“A sincere apology would acknowledge that grievance and, in my view, would go some way to assuaging the sense of injustice,” he said.
Sarah, in Ghana, said it would be “humane” of the King to deliver an apology.
“I believe it will go a long way to healing wounds caused by the slave trade,” she said.
The King and Queen Camilla arrived in Australia on Friday to begin their six-day tour of the country, which will be followed next week by the Commonwealth summit in Samoa.
Politics
Faster grid hook-ups planned for some green energy projects
Wind and solar farms that are ready to be built would be allowed to jump the queue for a connection to the UK’s electricity system under government plans.
All energy schemes which need a connection to the National Grid are currently in a single queue which operates on a “first-come-first-served” basis.
Some projects face waiting times stretching long into the next decade to get connected.
The government wants to speed up projects that will help it meet its goal of decarbonising power generation in the UK by 2030.
Some industry sources say it would be a welcome move but others warn that there is a “real risk” of legal challenges from projects which lose out.
The previous government brought in powers to weed out projects from the queue which were not ready to start, under a “first ready, first connected” system.
It followed complaints that so-called “zombie projects,” which have little or no chance of being built, are blocking the way of those which are ready to go.
Now plans are under way for the creation of what is essentially a new grouping of energy projects, which will run on a “first ready and needed, first connected” system, leapfrogging over other projects in the queue.
The “needed” element refers to projects which are needed for clean power by 2030.
The plans are being developed by the National Energy System Operator (NESO), a new publicly-owned body tasked with connecting generation projects to the grid.
They would need to be approved by the energy regulator Ofgem, with connections intended to start by the end of 2025.
NESO said: “This is a complex challenge, and it’s important we get it right.”
But the industry is calling for more clarity, amid concerns about legal challenges from companies waiting to get connected in the current queue who may find their dates are being pushed back.
Charles Wood, deputy director of Energy UK, said it was “positive” that the government appeared to have acknowledged the threat of legal challenges.
But he said he would like to see more engagement from senior ministers to “address uncertainty” about the plans for network upgrades.
Merlin Hyman, chief executive of energy think tank Regen, said the plans to allow some projects to jump the queue made “a lot of sense” as the current system was “not fit for purpose”.
But he added: “Such a fundamental change is inevitably causing uncertainty for project developers and we need urgently to provide the clarity and certainty needed to unlock investment at the speed and scale required”.
It comes after initial attempts to purge the existing queue for connection of so-called “zombie projects” resulted in only 10 GW of connection being struck off, according to the Energy Networks Association.
This year, Ofgem put the size of the existing queue at 701 GW, and it’s expected to reach 800 GW by the end of 2024, which is far more than the UK would need by 2050.
A Department for Energy Security and Net Zero spokesperson said it planned to submit proposals for reform to Ofgem by the end of the year.
“This includes speeding up the process and reforming the system to remove stalled projects from the queue, so projects which support our 2030 clean power goal can be connected fast,” the spokesperson added.
Politics
SNP chief executive Murray Foote to stand down
The SNP’s chief executive is quitting the post after 14 months.
Murray Foote said that he “could not make the necessary personal commitment” to leading a reorganisation of the party after their disappointing performance in the UK general election.
SNP leader John Swinney said that Mr Foote had made a “significant contribution” to the party during his spell as chief executive.
The former Daily Record editor replaced Peter Murrell – Nicola Sturgeon’s husband – in the position just over a year ago.
He took over as the party grappled with controversy relating to alleged missing donations. It saw his predecessor charged with embezzlement, and former First Minister Nicola Sturgeon questioned by police.
Mr Foote’s time in charge also saw the collapse of the SNP’s power sharing agreement with the Scottish Greens at Holyrood, which led to the resignation of Humza Yousaf as first minister.
The UK general election in July then saw the SNP lose 39 seats, leaving them with just nine MPs.
‘Internal re-organisation and renewal’
Mr Foote said: “The SNP has recently embarked on a substantial process of internal re-organisation and renewal to better equip it for current electoral contests and to prepare for the critical Scottish parliament elections in 2026.
“While I agree these changes are both essential and appropriate, I also recognised after a period of reflection that I could not make the necessary personal commitment to leading the delivery of these changes into 2026 and beyond.
“In the circumstances, I concluded it would be in my best interests and the best interests of the party that I step down to give my replacement the time and space to mould and develop these changes in a manner they deem appropriate.”
He added that he believes John Swinney is “the right leader at the right time” for the independence movement.
Paying tribute, Swinney said Mr Foote had made a “significant contribution” to the party.
“When I became leader of the SNP, I promised to deliver a professional, modern, dynamic election-winning organisation – and Murray’s successor will build on the work he has started,” he added.
Mr Foote will stay in the role until his successor is appointed.
He was the editor in chief of the Daily Record and Sunday Mail newspapers for several years, where he was responsible for “The Vow” front page – seen as being influential in the outcome of the 2014 Scottish independence referendum.
In 2019 he took the role of head of communications and research for the SNP.
He stood down from the job in March 2023 after becoming embroiled in a row over the party’s responses to media stories about membership numbers.
In August of the same year he was appointed the party’s chief executive, replacing Peter Murrell – who had left the post following the same row over media numbers.
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