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The House | To lift families out of fuel poverty, Burnham must shift regressive levies off energy bills

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To lift families out of fuel poverty, Burnham must shift regressive levies off energy bills
To lift families out of fuel poverty, Burnham must shift regressive levies off energy bills

(Credit: Yau Ming Low / Alamy)


4 min read

In July, our new Prime Minister Andy Burnham laid out his stall on tackling the cost of living crisis. One of his first announcements, cutting the VAT from electricity bills, was a very welcome first step in bringing down the cost of electricity.

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But amidst Strait of Hormuz closures and instability in the region due to the US’s ill-advised war on Iran, international oil and gas prices, to which Britain’s energy prices are mostly pegged, have risen, and so will energy bills.  

In the coming months, as colder temperatures return and households use more energy, further immediate action is needed to cut the cost of energy.  

Moving social and environmental levies, or what some call ‘policy costs’, off electricity bills and into general taxation could reduce energy bills quickly and in a way that benefits lower-income households. 

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The funds these levies generate are vital, financing the building of future energy infrastructure and support programmes like the Warm Homes Discount. But the way they are currently distributed, charged at a flat rate per unit of electricity, was described by experts to the Environmental Audit Committee as regressive. This means that they disproportionately add costs to lower-income households with limited ability to invest in alternatives that could lower their bills or change how and when they use energy. It is absurd that households claiming the Warm Homes Discount are actually part funding their own subsidy through paying the levies. 

More progressive funding of policy costs by moving them to general taxation was one of the key recommendations from the Environmental Audit Committee to the UK government in our final report on the Seventh Carbon Budget. This measure would reduce electricity bills for all households and also better align affordability with decarbonisation objectives. 

A first step to reduce the policy costs on electricity bills was taken by Rachel Reeves at last year’s Budget, but this intervention is temporary, with Treasury support due to end in Spring 2029. Yet even after that, levies make up nine per cent of an electricity bill (in contrast to three per cent of a gas bill). Some low-income households continue to spend more than three times the proportion of their net income on levies than wealthier households.  

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Not only does the current levy structure penalise low-income households, it also penalises those seeking to switch away from fossil fuels and install cleaner heating such as heat pumps. It is illogical that the UK still taxes homegrown renewable electricity more than imported fossil fuel gas.  

Research by The MCS Foundation has shown that levy reform could save households on average £120 every year, with low-income households using direct electric heating benefiting the most. This move would represent a significant strike on the cost of living, bringing more than 800,000 households across the country out of fuel poverty.  

It would also further incentivise the transition to clean heat, giving households confidence that switching to heat pumps and other renewable heating systems will reduce their running costs. High electricity prices in the UK act as a disincentive for households to switch to heat pumps. Analysis across European countries has shown there is a strong correlation between the spark gap – the ratio between electricity and gas prices – and heat pump deployment rates of a country. 

In the long run, transitioning to homegrown renewable electricity will protect British households from international gas price spikes, ensuring affordability in the long-term. The increasing amount of renewable energy in the UK has helped limit electricity bill rises, as compared to gas, and reduce the amount of time that gas sets the overall energy price. However, building more renewable energy, and expanding and upgrading the grid to connect this clean energy, will take time to take effect to reduce energy bills.  

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In the short-term, moving policy costs off electricity is a decision that Andy Burnham could take immediately to significantly reduce household energy bills. I urge him to do so. 

Toby Perkins is the Labour MP for Chesterfield, and chair of the Environmental Audit Committee

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The House Article | Time to legislate to stop illegal waste dumping at source

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Time to legislate to stop illegal waste dumping at source
Time to legislate to stop illegal waste dumping at source


4 min read

The illegal dumping of waste is estimated to cost the UK economy £1 billion per year.

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To put the scale of the problem into context over 38 million tonnes of waste, enough to fill Wembley Stadium 35 times, is believed to be illegally managed at some point in the waste management chain each year. 

With organised crime groups believed to commit 35% of waste crime, it is no wonder that it has been described as the ‘new narcotics.’ The cycle of organised crime impacting the circular economy simply must stop at source. That is why I am calling on members of both Houses to back my Corporate Waste Responsibility Bill. 

In October 2025, the cross-party House of Lords Environment and Climate Change Committee, which I Chair, sent a letter to Emma Reynolds MP, Secretary of State for Environment, Food and Rural Affairs, with our findings and recommendations following a short inquiry on the topic.

We called on the Government to get tough on serious and organised waste crime after highlighting multiple failures by the Environment Agency, the ineffectiveness of its Joint Unit for Waste Crime and a lack of interest shown by the police to act on local residents reports of illegal activity.

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When the Committee started its inquiry, waste crime was a regional news story after one notable large scale site was uncovered in Hoads Wood, Kent. However, after pressing the Environment Agency for details of other sites it soon became a national and international story with waste dumps in Oxfordshire, Wigan, Northwich, Lancashire and Cornwall gaining media attention. There are now reported to be around 30 super sites (containing more than 20,000 tonnes of rubbish) and between 500 and 700 smaller sites across the country.

On visits to the sites in Oxfordshire, Wigan and Kent with Channel 4 News and the BBC I got to see, and smell, the full scale of the problem and the impact it is having on local residents, some of whom have had to relocate. It was particularly concerning that these sites aren’t full of waste from individual fly tippers but industrial scale operations moving processed household waste and construction materials.

Waste crime has become profitable due to opportunities to avoid the costs incurred by legitimate businesses, often including landfill tax, with a low probability of detection or punishment, and low penalties. The Committee heard that illegally disposing a single articulated lorry’s load of waste can avoid £2,500 of costs. With anyone, and literally their dog, being able to register for a license, no mandatory tracking on vehicles and very low prosecution rates it’s a low risk, high reward business for criminals.

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Eight months on from the Committee’s initial letter waste crime continues to be a hot topic, including the by-election in Makerfield. Over that time Committee members have worked tirelessly to keep up the political pressure through oral questions, debates and follow up evidence sessions with Ministers and the Environment Agency.

This has had some impact. Earlier this year, the Government launched its Waste Crime Action Plan which sets out how it intends to tackle waste crime through prevention, enforcement and accelerating the clean-up effort. This was followed during the summer with the Prime Minister tougher measures against those committing waste crime offences.  There has also been secondary legislation introduced to mandate digital waste tracking, overhaul the outdated Carriers, Brokers and Dealers (CBD) registration scheme and increasing fines local authorities can issue for fly-tipping and littering.

Whilst welcome, these measures don’t go far enough to tackle the source of the problem of corporate waste companies allowing their waste to end up in illegal sites across the country.  

That is why I have introduced the Corporate Waste Responsibility Bill in the House of Lords. If passed, it will require large companies to appoint a named director responsible for compliance with statutory waste duty of care obligations. It will also ensure companies are financially responsible for the clean-up and clearance of waste they have generated or controlled, where that waste is mismanaged and the duty of care has not been discharged.

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The second reading of my bill will be held in the House of Lords this Autumn and I am hoping to get the support from members of both Houses to progress it. Without ongoing parliamentary scrutiny and changes being made through legislation this egregious crime will continue to blight our communities and have a devastating impact on the environment.

 

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Hollie Ridley, Labour’s Youngest and Most Successful General Secretary will be missed

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She built the ground campaign that took Labour from 202 seats to 411 and she ran the party with care for the people in it.

By Kevin Craig, Founder and CEO of PLMR and former Labour Party Councillor and Parliamentary candidate

During the very difficult years of the Corbyn era, Hollie Ridley still managed to pull off impossibly difficult by-election wins as in Peterborough, for which she was publicly thanked by the Leader on Sky News. That’s how good a campaigner she is.

It all feels like a long time ago. Fast forward to September 2026 and I joined a very large number of Labour Party folk from all wings of the Party, including former Prime Minister Sir Keir Starmer, to mark the imminent end of Hollie Ridley’s tenure as General Secretary of the Labour Party.  You have to conclude that she is almost certainly the most consequential General Secretary Labour has had in a generation. The case is built on one simple fact. She built and ran the ground campaign that took Labour from 202 seats in 2019 to 411 in 2024.

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Winning is the most important thing a political party does. A party that loses cannot deliver any of its plans. Labour had lost four General Elections in a row and had been out of power for 14 years. Its 2019 result was its worst in seats since 1935. Five years later it formed a government with one of the largest majorities in its history.

Of course, that victory belongs to many many people – but Hollie’s role in delivering the Party’s ground campaign made everything else that followed possible.

The vote share shows what her ground campaign achieved. Labour’s share of the vote rose from 32.1 per cent in 2019 to 33.7 per cent in 2024, an increase of 1.6 points. Its seat count more than doubled. The party put its money, staff and volunteers into the seats it needed to win. It kept them out of seats it could not win and seats it could not lose. Hollie Ridley, at that time Executive Director for Nations and Regions, designed and ran that operation. The part that turned votes into seats was her responsibility – and it was a resounding success.

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A small number of General Secretaries have changed what the party could do. Morgan Phillips built a professional staff in the 1940s and oversaw the 1945 victory. Larry Whitty rebuilt the organisation for Neil Kinnock after the defeat of 1983. Tom Sawyer ran the party through the rewriting of Clause IV in 1995 and the 1997 victory. The much missed Margaret McDonagh, the first woman in the post, ran the organisation behind the 1997 campaign and then the 2001 victory as General Secretary. David Evans repaired the party’s finances and its disciplinary processes after 2019 and made it fit to fight an election.

The closest comparison is McDonagh. Both ran the organisation behind a winning campaign and then took the top job with Labour in government. The difference is the starting point. In 1997 Labour started from 271 seats. In 2024 it started from 202. The gain of 209 seats was the largest Labour has made at a single election since 1945. That is why I put Hollie at the top of the list.

As General Secretary she ran the party through two years in government, two difficult sets of May elections and a change of leader. When Keir Starmer announced in June that he would resign, she did not wait for the new leader to replace her. In July she told staff she would leave after conference so that the NEC could choose a General Secretary to work with the new leader. She told the prospective leadership candidates the same and offered her support to whoever won. Few people in her position handle a change at the top with such professionalism and dedication to the party – but that sums up how Ridley operates.

She did all of this – in my personal experience – with kindness. In my dealings with her as a Labour candidate she was kind and compassionate and politically savvy. Anna Turley, the party chair, said in July that party staff hold her in the highest regard. Keir Starmer called her “one of the most formidable campaigners the Labour Party has ever produced”. Both are right.

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She grew up in Dagenham, the daughter of a family support worker and a lorry driver. She joined the party as a trainee organiser in 2011, in a post part-funded by the GMB and a private donor. She has said the party took a chance on her. She then made a point of creating the same chances for others, in particular working-class women. She delivered the first two rounds of the party’s Jo Cox Women in Leadership programme, which trains Labour women for senior roles.

The NEC will choose her successor this autumn. It seems that Joe Fortune (lovely bloke) and Claire Reynolds (formidable and brilliant) are the leading contenders.  Whoever is chosen will take over an organisation that won a General Election two years ago and has the people and systems to do it again. Hollie Ridley built that organisation and those of us associated with the Party should be eternally grateful.   As she said at her leaving do, Labour rarely gets majorities like this, and there is still plenty of time left for the New PM, and talented and resilient politicians like Lucy Powell, Jonathan Reynolds and John Healey, to ensure that majority is not wasted. And as for Hollie Ridley, she deserves the very best of luck in whatever she does next.

Kevin Craig served 17 years as a Labour Councillor, was twice a Labour Parliamentary Candidate and has built PLMR from start up into one of the UK’s leading Communications companies with offices across the UK

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Politics Home | Unison Head Hits Out At “Wall Of Silence” From Shabana Mahmood Over Immigration Changes

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Unison Head Hits Out At “Wall Of Silence” From Shabana Mahmood Over Immigration Changes
Unison Head Hits Out At “Wall Of Silence” From Shabana Mahmood Over Immigration Changes

Andrea Egan addressing an anti-racism rally in March 2023. Then president of Unison, she has since become general secretary (Mark Kerrison/Alamy Live News)


3 min read

Exclusive: Unison general secretary Andrea Egan has accused Shabana Mahmood of putting up a “wall of silence” by refusing to meet with the union raising concerns over immigration reforms.

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In a forthcoming interview with The House magazine, the head of Labour-affiliated Unison – the biggest trade union in Britain – also said Mahmood being “left in position” as Home Secretary was a “disappointment”.

Mahmood remained as Home Secretary when Andy Burnham succeeded Keir Starmer in No 10, disappointing some on the left of the Labour Party and trade unions which represent migrant workers affected by the proposed changes.

Egan said: “That was one of my disappointments – that Shabana Mahmood was left in position, simply because of her position on the migrant workers.

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“As yet, there’s just a wall of silence at the moment. I think that’s absolutely unacceptable because they make these big announcements, and what they’ve got is these hundreds of thousands of workers who are just being left on a thread at the minute, wondering where their futures lie and what’s going to happen to them and their families.”

Asked whether there had been any engagement with Mahmood, the Unison general secretary replied: “Nothing. She’s not even answered requests for a meeting. I think that’s really disappointing.”

At the TUC Congress gathering of unions this week, the government was urged to rethink proposals critics say would drive away overseas workers needed in critical public service roles in the UK.

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Under the changes, the standard wait to qualify for Indefinite Leave to Remain (ILR) would increase from five to 10 years, while those on health and social care visas would face a 15-year wait before receiving settled status.

They would impact people already living in the UK but not those who have been granted settlement.

Only with ILR do those who have come to the UK gain the right to live, work and study indefinitely in the country.

Speaking as a backbencher earlier this year, Angela Rayner – who is now back in Cabinet – called the changes “un-British”. Burnham at the time said the party “would do well to listen to what Angela has to say”.

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A Home Office spokesperson said: “Last November, we set out reforms to double the standard qualifying period for settlement to 10 years for most migrants, with shorter routes for those who contribute the most to the UK. 

“Under the proposals, key public service workers, including doctors and nurses, may settle after five years.

“A consultation on elements of those reforms has now closed, and we will set out our response in due course.”

Mahmood declined to comment.

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Speaking to MPs on the Home Affairs Select Committee about the reforms on Tuesday, the Home Secretary said: “We’re trying to strike the right balance between our responsibilities to people who have come here to work, our recognition of the failures we inherited as a government, and also our need to do right by the people who are already here, who pay for the systems that we all rely on.”

 

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Politics Home | A tax raid that Britain’s high streets and leisure venues cannot afford

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A tax raid that Britain's high streets and leisure venues cannot afford
A tax raid that Britain's high streets and leisure venues cannot afford

Grainne Hurst, CEO

Up to 16,000 jobs. Nearly 1,500 betting shops. As many as 34 casinos. That is what EY modelling suggests would be lost if ministers follow the Social Market Foundation’s advice and raise Machine Games Duty to 40 per cent – and the Treasury could end up £124 million worse off for it.

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Britain’s land-based betting and gaming venues are already facing rising employment costs, higher business rates, soaring energy bills and the impact of successive regulatory changes. Against that backdrop, the SMF are now urging ministers to pile on another tax increase.

The question ministers should be asking is not simply how much extra tax would or wouldn’t be raised, but what damage it would do to the businesses, jobs and communities expected to pay it.

It is easy for a think tank to recommend higher taxes from behind a desk. It is much harder to explain the boarded-up bingo clubs, shut betting shops, closed casinos and lost jobs that would follow.

On the surface, the SMF recommends increasing Machine Games Duty. In reality, it is asking ministers to make a much bigger choice: are they prepared to accept the closure of valued leisure venues across Britain in pursuit of a policy that is unlikely to deliver what it promises?

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The report fails to answer that question.

Businesses cannot simply absorb a tax increase of this scale. The inevitable consequence is fewer venues, fewer jobs and less investment in communities that can least afford to lose them. Since 2019, more than 3,000 betting shops have closed, costing over 16,000 jobs. 22 casinos have shut their doors with the loss of more than 3,000 jobs, while 108 bingo clubs have closed, resulting in the loss of more than 2,000 jobs. How many more betting shops would close? How many bingo clubs? How many casinos? How many livelihoods would disappear? And what would be the impact on working men’s clubs, miners’ welfare institutes and other community associations that rely on regulated gaming machines to help fund the services they provide?

Those are not side issues. They are the central questions.

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Indeed, towards the end of the report is an explicit acknowledgement that reducing the supply of gambling is part of its intended effect. That completely undermines its economic argument. You cannot claim a tax rise will generate more revenue while advocating policies that would close the very businesses expected to pay it.

These are not anonymous businesses on a Treasury spreadsheet.

Many of these businesses have been part of their communities for decades. They are run by local managers, employ local people and provide steady jobs in towns where good employers are becoming harder to find. Their customers also support neighbouring cafés, pubs and shops, helping to keep Britain’s struggling high streets alive.

Nor are their customers an afterthought. Betting shops, bingo clubs and casinos are social hubs where adults choose to meet friends, watch sport, enjoy bingo or place a bet responsibly. The suggestion that customers are simply being lured in to lose money is patronising and wrong. The report dismisses those customers entirely, assuming it knows better than the adults who use these venues responsibly every day.

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The same applies to working men’s clubs and miners’ welfare clubs, many of which rely on regulated gaming machines to help keep their doors open as employment costs, business rates and energy bills continue to rise. These are exactly the kinds of community institutions politicians say they want to protect.

Those consequences may not be felt in the Westminster bubble, but they will be felt in the North of England, in seaside towns, former mining communities, market towns and city centres where another boarded-up premises would replace another long-established local business.

There is also a snobbery running through this debate that deserves to be challenged. Too often, metropolitan commentators appear comfortable telling working people how they should spend their money while showing little regard for the venues people value, the jobs they support or the communities they serve.

The consequences extend far beyond the high street.

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Every betting shop that closes also weakens one of Britain’s most cherished sports. Licensed betting operators contribute hundreds of millions of pounds every year through the Horserace Betting Levy and media rights payments, supporting racecourses and the wider racing industry. Land-based betting shops are a vital part of that funding. Racing is already under financial pressure and cannot afford to lose it. The impact would be felt far beyond the racecourse, affecting stable staff, trainers, breeders, farriers, vets and thousands of small businesses that depend on a thriving racing industry. Decisions taken on betting shop taxation are not confined to one sector; they ripple through communities and rural economies across Britain.

The report also assumes spending will simply move elsewhere and jobs will be replaced. That is an assertion, not evidence. There is no compelling case that communities become more prosperous when regulated venues disappear.

Its economic case is equally weak. The SMF assumes increasing Machine Games Duty will boost Treasury revenues. History suggests otherwise. Following the reduction in machine stakes in 2018 (effect 1st April 2019), over 2,000 betting shops closed and gambling duty receipts fell and have never recovered to previous levels. Shrinking the regulated market does not maximise tax receipts; it reduces the number of businesses paying tax.

Then there is the illegal gambling market.

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Every time the regulated sector is made less competitive, criminal operators stand to benefit. They pay no UK tax, create no British jobs and offer none of the age verification, safer gambling tools or consumer protections required of licensed operators. Weakening legitimate businesses while strengthening the black market is not sound public policy.

Perhaps the most revealing finding in the report is one its authors may not have intended. Their own polling shows most people do not support increasing taxes on gaming machines.

Public policy should not be driven by assumptions or ideology. It should be driven by evidence and an honest assessment of consequences.

Of course gambling harm must be addressed. Our members continue to invest heavily in safer gambling tools, technology and interventions because protecting customers is fundamental to a sustainable regulated industry. But good intentions do not automatically make good policy.

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If ministers follow the SMF’s advice, they will not simply increase Machine Games Duty. They will make a conscious decision to place legitimate businesses under even greater pressure, jeopardise thousands of jobs, weaken horseracing and accelerate the decline of community venues that have served Britain for generations.

That is not evidence-led policymaking.

It is a price Britain’s high streets and leisure venues simply cannot afford.

References

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  • Economic modelling of potential MGD increases (September 2026), EY Report for the Betting and Gaming Council

 

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The House | Labour Friends of Lidos will fight for water companies to support our pools

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Labour Friends of Lidos will fight for water companies to support our pools
Labour Friends of Lidos will fight for water companies to support our pools


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Britain has just had the summer its lidos were built for.

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The Met Office says it was provisionally the hottest the country has recorded in a series going back to 1884, beating the previous record – set only last year – by a margin its scientists describe as significant. The summer of 1976, the one my generation grew up hearing about, now ranks seventh. It is high time, then, for a lido renaissance.

From Cornwall to Hackney, outdoor pools reported exceptional demand, with some setting records. Tinside on Plymouth Hoe had welcomed more visitors by the end of July than in any season this century. Bude Sea Pool reached capacity on more days than ever before, while London Fields Lido in Hackney had passed its total for the whole of 2025 before August was out. Last summer, itself a record, the country’s biggest lido operator recorded 30 per cent more swims at its lidos and outdoor swimming sites than the year before. This one was hotter.

In Peterborough, our own lido turned 90 this year, with more than 82,000 swims so far. Some of those visits were by me during the parliamentary recess, when I joined the Lido Belles and early-morning swimmers in perfect conditions. When the government talks about Pride in Place, I can think of no better example than our lidos.

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Lidos are not simply leisure amenities that happen to be old. They were a public health programme, and the people who built them knew exactly what they were doing. Peterborough’s opened in 1936, in a decade of recession, dole queues and the rise of angry politics, with a loan from the Ministry of Health. The people who ran the city believed that the man from the brickworks, the railway clerk, the shop girl and their children had as much right to an afternoon in clean water and sunshine as anyone with a villa on the Riviera. Britain had more than 300 lidos by the end of the 1930s.

Then we let them go. The rise of indoor pools, package holidays in the sun and a long squeeze on council budgets took their toll, and by 1990 only roughly a third were still open. The challenges lidos face have not gone away, but there will be more summers like this one to come. Heatwaves are arriving earlier and more often, and every council with an outdoor pool should be asking when it will open. That is why a group of MPs have formed Labour Friends of Lidos and Public Baths to raise the profile of these community assets.

This is about breathing new life into our pools or, as in the case of Bournemouth, Ipswich and Worthing, restoring them. Worthing has plans to transform its former lido into a community space, with a new tidal pool next to it.

In some places, the loss is symbolic. What was once the majestic St Leonards open-air bathing pool in Hastings is now an underground maze of pipes for sewage dumping Southern Water.

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That is why we are arguing that the government should back our lidos for leisure, health and climate purposes. The forthcoming Water Bill should include provision for water companies to support these pools. The government should also look at creating a Lido Regeneration Fund to back these joyous expressions of pride and place.

The people who built our lidos planned for the weather they had, and we know the weather that is coming. If you have a lido, use it while the sun lasts. If your town lost one, ask for it back. And if you are ever in Peterborough on a hot day, come and join us. Bring a towel.

Andrew Pakes is the Labour and Co-operative MP for Peterborough and co-convenor of Labour Friends of Lidos and Public Baths

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Politics Home | Britain’s payments success was built on trust. Security is the price of keeping it.

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Britain’s payments success was built on trust. Security is the price of keeping it.
Britain’s payments success was built on trust. Security is the price of keeping it.

Credit: Adobe

Rob Cameron, Group Country Manager, UK & Ireland



Rob Cameron, Group Country Manager, UK & Ireland
| Visa

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Britain’s payments industry has been built on trust. As the next wave of technologies, from AI and stablecoins to agentic commerce, reshapes how we pay, maintaining that trust will require continued investment. Without it, households risk falling victim to fraud, and the UK risks missing out on the growth that safer, more secure payments can unlock.

Unless stated otherwise, the figures below are drawn from How Payments Can Power UK Growth, a 2026 Public First report commissioned by Visa, based on surveys of 2,000 consumers and 500 businesses, two focus groups, and interviews with consumer groups, payments providers, fintechs, building societies, and major retailers.

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Trust and confidence are the fuel on which our payments system runs, and the foundation for future innovation.

Digital payments are now essential economic infrastructure, and when that infrastructure works, it goes largely unnoticed. You tap your card, click a button or unlock your phone, and the transaction is complete. Yet this apparent simplicity relies on a vast system of invisible elements working together simultaneously and is contingent on sustained investment to keep that infrastructure secure.

The UK has one of the most advanced and trusted digital payments sectors in the world. The benefits of tap-to-pay are already visible in everyday life. Contactless payments have become embedded in Britain’s transport network, making journeys simpler for millions of passengers and demonstrating how payments technology can help enable more seamless, integrated services.

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Tap-to-pay has made accepting payments simpler for businesses of every size, reducing the time and cost for SMEs to get set up and start trading. At Visa, this is the work we invest in every day, putting the same processing, dispute and fraud-fighting capabilities used by the world’s largest retailers into the hands of Britain’s small businesses.

That success did not happen by chance, but through concerted efforts to innovate while prioritising trust, security and resilience.

Through research we commissioned from Public First, we know the digital payments sector alone has helped generate an estimated £88 billion in additional sales for British businesses since 2019, with £32 billion of that specifically for small and medium-sized companies. On a macro level, it added approximately £7.5 billion to UK GDP in 2024 alone. 

Looking ahead, a new wave of innovation is set to reshape the industry. AI agents that can shop and pay on our behalf, AI-driven fraud checks and stablecoins (which with proper regulation can operate as settlement tools to speed up transfers and reduce settlement risk).

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Between them, these could further empower consumers, and to shift shopping and paying from manual checkout towards invisible, trusted experiences that reduce fraud and friction. But every one of these technologies will only be adopted at a meaningful scale if trust in the payments system holds. Innovation and security are the same argument, not competing ones.

Trust in digital payments is what makes people willing to tap a card, or click pay. 90% of UK consumers and 91% of businesses currently say they have strong levels of confidence in card payments. But this trust depends on security.

Consumers’ tolerance for risk is close to zero: around two-thirds say they wouldn’t complete a purchase over £5 if there’s more than a 5% chance of losing their money. Apply that across an economy where UK-issued cards were used for transactions worth more than £1 trillion in 2024, and it adds up fast.

The threat is only growing. Fraud is now the most common crime experienced in the UK: according to UK Finance’s 2025 Annual Fraud Report, £1.17 billion was stolen through payment fraud alone in 2024. Without sustained investment in prevention and resilience, it is ultimately the public who will pay twice: first in the money lost to fraud, and then in the more cautious, slower economy that follows as confidence drains away. People who have been victims of fraud cut their spending by over a third in the following months.

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Across the economy, Public First estimates that this chilling effect costs £16 billion in consumer spending every year. Businesses experience this too – almost a quarter of those hit by fraud in the last year paused a planned investment into digital infrastructure.

The UK was where much of the last fintech revolution was built. Global networks like ours are part of how that happens, giving UK fintechs, merchants and small businesses the cross-border resilience and trusted security they need to grow. But trust is hard-won and easy to lose, and this is a highly mobile industry.

The Government’s plan to give the Bank of England a new secondary objective on innovation in payment systems and digital money, while maintaining financial stability remaining its primary duty, reflects the growing importance of these issues. Over time, the UK’s ability to attract investment and support innovation will depend on providing businesses with confidence and clarity as new technologies emerge.

Sustaining investment in security and resilience will be critical to maintaining trust in the UK’s payments ecosystem. Public First’s research suggests that, with the right conditions for investment and innovation, the digital payments sector could contribute an estimated £3.8 billion in additional growth by 2030. Without continued focus on security, consumer confidence could be undermined, the adoption of new technologies could slow, and the UK could miss out on significant economic opportunities.

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Labour’s ‘Class Unit’ is wokeness in proles’ clothing

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Labour’s ‘Class Unit’ is wokeness in proles’ clothing

Class is back in fashion. Having spent the past decade rehabilitating racial differences, praising men in dresses for being real girls, and celebrating fat, disabled and queer ‘communities’, left-wing activists are changing direction. They appear to be talking about problems facing working-class people for the first time in years.

Last week, the UK’s Labour government launched a new ‘Class Unit’ designed to focus attention and resources ‘on improving the lives of low-income families, disadvantaged communities and rooting out child poverty’. After years in which privileging posh trans or brown people for internships and well-paid jobs was all the rage, and even hinting at problems with class inequality prompted accusations of racism, this is a move that should – in theory – be welcomed by critics of woke. So why does it leave me cold?

First, there’s the breakneck speed with which the shift from culture to economics, from identity to class, is playing out in so-called progressive circles. It seems like only yesterday that girls were being taken to task for ‘cultural appropriation’ if they wore hoop earrings or tied their hair in knots. We’ve barely had a chance to catch breath since then Labour leader Keir Starmer was photographed taking the knee for Black Lives Matter alongside then deputy leader Angela Rayner, now the UK housing secretary. And just moments have passed since anyone who questioned whether it was appropriate for drag queens with names like Flow Job to read stories to young children was branded a bigot.

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But now, all of this is simply to be laughed off. ‘Woke 1 was crazy!’, giggled the movement’s erstwhile poster girl, Alexandria Ocasio-Cortez, last month. Today, she aligns herself with the Democratic Socialists of America, which campaigns under the slogan ‘Workers Deserve More’ and whose goal is ‘a democratic society of the working class’. Her comrade-in-arms, New York City mayor Zohran Mamdani, wants to control rents, provide free universal childcare and run cost-price grocery stores. In Britain too, we’ve moved from Starmer’s virtue-signalling to Andy Burnham’s capped bus fares and a ‘focus on working-class people’s experiences of public services, health disparities and access to employment’.

‘It’s time to end the squeamishness’, declares the government’s press release marking the launch of the Class Unit: ‘Working-class people will be at the heart of a renewed government drive to tackle entrenched inequality.’ But who, exactly, is ‘squeamish’? Some of us have never had a problem talking about class: only Labour’s woke activists found it politically inconvenient.

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On the surface at least, this looks like a shift to what sounds like an old-fashioned left-wing agenda. Yet it has taken place not just in the absence of a reckoning with woke’s legacy but also with many of their bizarre initiatives remaining in place. Just last week we learnt that gender-fluid police officers can carry both male and female identity documents.

Indeed, the new ‘Class Unit’ will sit ‘within the Office for Equality and Opportunity alongside units on race, women, LGBT+ and disability’. This positioning makes clear that in the minds of today’s government ministers and civil servants, the working class is not a political force with its own distinct interests but just another identity group in need of recognition.

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Adding ‘working class’ to the list of identity groups deserving of special treatment raises the thorny question of definition. If working class means poor, then how do we label well-paid self-employed plumbers and plasterers? Or the laptop ‘creatives’ who earn very little but know that, when push comes to shove, daddy will lend a hand? If it means lacking degree certificates, what about the autodidacts? And if it means family background, then at what age do we judge people on their own merits, not where they’ve come from?

The problem with seeing ‘working class’ as another identity category goes deeper than the question of definition. It suggests that Labour views the working classes as an entirely passive group: people without political agency, in need of handouts and affirmation. This reinforces the political establishment’s existing tendencies, from its willingness to dole out welfare payments, allowing people to remain out of work and on the sick, to its determination to water down the academic expectations placed on schoolchildren.

This warped and degraded identitarian view of what it is to be working class means that the new Class Unit is unlikely to do anything to improve people’s lives. Labour plans to introduce a ‘socio-economic duty’: ‘a new power in the Equality Act that will legally require public bodies to consider how to improve the lives of lower-income families as part of decisions around issues like transport, services and budgets.’ The existing public-sector equality duty means that public authorities and organisations must ‘have due regard to the need to eliminate discrimination, advance equality of opportunity, and foster good relations’. In practice, it is used to justify highly paid bureaucrats devising internships that exclude white males. Adding a ‘socio-economic’ identity to this mix will mire businesses and institutions in yet more bureaucracy and pave the way for more mad identity celebrations.

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We do have a problem with class inequality – and the very same woke activists who now claim to offer solutions have exacerbated it. But the concessions, benefits and bureaucracy they now offer are worse than useless. Change will only come about when the working class is able to pursue its political interests – from Brexit to stopping mass migration to ending economically crippling Net Zero policies. Sadly, these ideas are unlikely to make their way into Labour’s Class Unit any time soon.

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Britain has lost control of its AI policy

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Britain has lost control of its AI policy

Once upon a time, scientific and technical advisers were titans in their fields. Patrick Blackett was a physicist who won the Nobel Prize before he became a key adviser to prime minister Harold Wilson, where he put British computing at the top of the government’s agenda. Chemist Henry Tizard’s work and advice allowed Britain to deploy advanced radar research into its air-defence systems. Polymath Solly Zuckerman, the first formal scientific adviser to a UK government, possessed expertise in fields ranging from zoology to systems research.

Now, policymakers look to capital instead of scientific expertise. More than anyone else, it is supposed that venture capitalists can divine a unique knowledge of the future. Which explains the extraordinary rise of Matthew Clifford, chair of the government’s AI-focussed Advanced Research and Innovation Agency (ARIA).

By contrast to his distinguished predecessors, Clifford is a former McKinsey consultant with a degree in medieval history. He rose through David Cameron’s ‘Silicon Roundabout’ scene, where he honed his legendary schmoozing skills as a networker. He created a business incubator and investment vehicle, Entrepreneurs First, in 2011. Two weeks ago, Clifford confirmed that he would join Anthropic’s international-affairs team, a position that will see him lobby governments throughout Europe on behalf of the AI firm.

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However, Clifford’s cake-ism has created an obvious conflict of interest. Which politician, adviser or senior official would seek to antagonise companies that can offer them a handsome salary in the near future?

Clifford’s register of interests is perhaps the longest ever to be disclosed by a government adviser. As one of the biggest early investors in AI in Europe, there was little incentive for Clifford to say or do anything that might puncture the hype, lest it impair his personal investments. For example, do you suppose that the ‘AI Opportunities Action Plan’ that he wrote for Labour in January 2025 included the information that AI GPs get 70 per cent of their diagnoses wrong? Of course not.

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Nor is what’s good for AI investors like Clifford and ‘frontier labs’, as OpenAI and Anthropic pretentiously call themselves, necessarily good for the economy as a whole. Both AI giants have attracted criticism from other tech CEOs, including Palantir’s Alex Karp and Microsoft’s Satya Nadella, for their unethical practices. Essentially, firms that use AI end up unwittingly providing the AI models with invaluable know-how, which is then sold on to all-comers, thereby destroying the firm. You don’t consume AI – AI consumes you.

On AI, the UK government has outsourced its expertise to Clifford. But his own lack of a technical hinterland has meant he has had to outsource this expertise to others. And this is where his most lasting influence will be felt.

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Take the obsessive speculation about outlandish, existential risks posed by some future AI. Britain’s most distinguished tech investor, Hermann Hauser, has questioned why UK AI policy seems so focussed on this, while other nations have been far less interested. This is because, with Clifford’s help, associates of the Effective Altruism (EA) cult – a radical utilitarian social movement described as ‘The Scientology of Silicon Valley’ by one former follower – have been elevated into important advisory roles. Of all their obsessions, the existential risk of a killer or rogue AI ranks highest.

Under Clifford, EAs captured the agenda of Rishi Sunak’s 2023 AI Summit, which in turn recommended the creation of a £100million department reporting to No10, dedicated to existential AI risk. This has entrenched itself as an island of Effective Altruists in Whitehall: the AI Security Institute (AISI). Unsurprisingly, this quango has gleefully participated in the recent ‘AI gone rogue’ scare stories.

The founder of GCHQ’s National Cyber Security Centre, Ciaran Martin, spoke for many frustrated security experts when he criticised AISI’s antics in The Economist recently. AI models were ‘not going rogue’, he explained, when they carried out cyberattacks. They were simply ‘doing what humans had told them to do’. The fiction of rogue AI has been a damaging distraction when, out in the real world, hostile hackers have been penetrating Britain’s critical infrastructure, such as power plants and water facilities, with ease.

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It isn’t Clifford’s fault that he stumbled on an intellectual vacuum at the heart of British policymaking. Today’s political and adviser class is bereft of scientific and technical experience. Engineers are rarer than glaciers in Whitehall. Instead, capital is assumed to have the answers.

Matthew Clifford prospered because he promised something to ministers who find the reality of governing – of securing our borders and making dysfunctional institutions work properly – messy and difficult. When senior government figures can’t assess the fairytales for themselves, then the likes of Clifford will thrive.

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Harry and Meghan: why the Sussex brand is in tatters

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Harry and Meghan: why the Sussex brand is in tatters

The post Harry and Meghan: why the Sussex brand is in tatters appeared first on spiked.

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Department of Investigation eyes NYPD disability pensions

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A New York City Department of Investigation report found that the city's police pension system is vulnerable to abuse.

A New York City Department of Investigation report found that the city's police pension system is vulnerable to abuse.

HELP! I’VE FALLEN AND I CAN GET UP: A report from the New York City Department of Investigation confirmed today what many political watchers have long suspected — that the city’s police pension system is ripe for abuse.

The Police Pension Fund doles out retirement payments to all NYPD officers and, in fiscal year 2025, paid $935 million to officers who qualified for accident disability retirement — meaning they were injured on the job and unable to perform their duties.

While DOI Commissioner Nadia Shihata said injured officers should be fairly compensated, her office found the pension system assigns this distinction — which boosts pension payments by 50% and allows officers to receive 75% of their average pay — without considering an officer’s specific job duties.

“No New Yorker wants to stand in the way of NYPD officers rightfully receiving accident benefits when they suffer injuries on the job and are unable to work,” Shihata said in a statement. “But the [Police Pension Fund’s] current administration of these benefits is vulnerable to misuse and does not employ standards consistent with those used in similar law enforcement retirement systems, such as the system for state police.”

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Instead, the board has a single standard: whether an applicant can perform the general duties of a police officer, like subduing a suspect or operating a firearm — a threshold that makes less sense for officers with desk or administrative jobs.

The report specifically cited the case of former Chief of Department John Chell, who was awarded a $295,919 annual pension while serving as the NYPD’s highest-ranking uniformed officer under former Mayor Eric Adams. The huge sum came, in part, because of an ankle injury sustained in 2024. Chell was among several top Adams-era police officials who received lucrative payouts using this criteria, which the DOI report argued contributed to mistrust in the system and the belief that higher-ranking officers had an easier time securing disability pay. (The report did not make any assumptions about whether Chell would have been granted his pension under stricter criteria.)

DOI contends this standard incentivizes more people to claim a disability, citing a 2015 report that found 21% of NYPD employees retire on accident disability compared to 6% within the state system for police and firefighters, which has a more narrow criteria for awarding disability pay. Shihata even suggested that the pension board’s broad standard might not be legal, since courts have found, in the case of the state police pension rules, that job duty means what an officer actually does in practice.

Despite that, the board rejected a DOI recommendation to change the standard.

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Notably, DOI pointed out in its report that two of the people on the medical board making the determinations are appointed by city agencies controlled by the mayor — which means Mayor Zohran Mamdani could push to overrule the board’s leadership.

City Hall did not respond to a question about whether he would do so.

The NYPD declined to comment, while the pension board did not respond. Chell could not be reached.

The pension system does include a safeguard to maximize city resources. The board is authorized to re-examine officers receiving disability pensions who aren’t yet of retirement age to see if their condition would allow them to work a different city job, even if it’s not in the NYPD. If they’re deemed able, then they’re primarily compensated with their pension money until they reach retirement age.

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So is the pension system using this provision to examine the $100 million worth of annual pension payments doled out to NYPD officers who are under the retirement age, which the board is required by law to do?

In short, no.

Since 2019, the board has only reevaluated one pensioner, per the DOI report. And that person was found unable to do any other city work.

The report found examples indicating the board could be doing a more thorough job. DOI provided findings that suggest four officers under the retirement age are receiving disability pensions while engaging in activities like lifting weights, performing home renovations, playing competitive sports, doing pushups, instructing workout classes and, in one case, performing “complicated dance routines exhibiting a full range of arm motion.”

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DOI recommended the board require officers receiving disability payments who are not yet of retirement age to periodically certify they still have a disability. The board rejected this recommendation, but agreed to create an online portal to gain input from the public on pensioners who may be healthy enough to work. It also agreed to reevaluate the four retirees flagged by DOI. — Joe Anuta

From the Capitol

A case before the state Court of Appeals weighs the legal liability of social media companies like Meta.

META’S DAY IN COURT: New York’s top court opened its fall session this afternoon with a case that could have massive implications for the legal liability of social media companies and AI users.

Website owners are typically immune from liability for content created by third parties. But the families of the 2022 mass shooting in Buffalo are arguing that social media companies shouldn’t dodge responsibility for radicalizing Payton Gendron, the 18-year-old who drove across the state with the goal of killing Black people.

The state Court of Appeals is now deciding whether these families can proceed with a lawsuit against companies such as Meta, Google, Discord, Reddit, Amazon and 4Chan.

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Gendron’s diaries and confessions show he was motivated by white supremacist material he encountered while addicted to social media. The families contend these companies are liable because they intentionally designed an addictive algorithm that destroyed his mental health while proactively steering him to pro-violence content.

“The social media companies had a role in causing the crime,” attorney Jennifer Bennett argued. “Heavy social media usage goes hand-in-hand with mass shootings.”

Meta attorney Eric Shumsky said the entire argument boiled down to an attempt to sue over the actual content the shooter saw, a type of claim his company is protected against.

“If the addiction were to cooking tutorials or cat videos or anything else, it would be an absolutely incoherent theory of liability,” Shumsky said.

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Judges on the seven-person court panel acknowledged the possibility of significant repercussions no matter how they rule.

“Let’s say I can’t function, I can’t work anymore, because of my addiction to social media,” Judge Michael Garcia said while questioning the plaintiffs about how far reaching lawsuits might be under their theory. “It’s addictive, I can’t deal with people, I stay home, I can’t work.”

“That is a viable claim,” Bennett said. “The evidence is very strong that the social media companies made a product to have this effect.”

While questioning Meta, Chief Judge Rowan Wilson raised the possibility of troubling precedents if the court supports the idea of widespread immunity for app creators.

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“I use AI to, let’s say, ‘design me an app to create the most harm possible to teenagers,’” Wilson said. “It’s my intent to create an app that selects content designed to destroy the mental health of teenagers … Am I liable?” — Bill Mahoney

EYES ON AI: Gov. Kathy Hochul chided the federal government today for not doing enough to address concerns about the existential threats artificial intelligence potentially poses.

“Understandably, Americans are concerned, as am I,” Hochul told reporters after an event Tuesday in Manhattan. “We have an obligation to ensure that technological progress does not come at our own peril. So while Washington refuses to act, here in New York, we’re stepping up.”

Hochul pointed to the landmark RAISE Act, which goes into effect in January, and a one-year data center moratorium, which she issued in July, as evidence that New York is acting aggressively. Her administration earlier today rolled out a framework for communities that want to host a data center to minimize detrimental effects on the area.

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The governor added that she’ll find “additional actions that we can take at the state level to lead the way in the absence of leadership from Washington” — though she did not specify what that looks like.

While some in Washington are eager to implement restrictions to slow down AI, President Donald Trump has tried to shut down those efforts, calling the AI dooming a “HOAX.”

Hochul said she hasn’t had conversations with legislators in recent days regarding AI. Madison Fernandez

FROM CITY HALL

Mayor Zohran Mamdani did not commit to directing the NYPD to increase enforcement of traffic violations.

TO ENFORCE OR NOT TO ENFORCE — THAT’S THE QUESTION: Mamdani wouldn’t commit today to ordering the NYPD to step up enforcement of traffic violations in New York City — because he’s focused on “behavioral change,” not punishment.

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The NYPD’s rate of issuing tickets to drivers who speed, blow through red lights, block bike lanes or otherwise break traffic laws remains far below pre-pandemic levels. And transit advocates, including left-leaning allies of Mamdani, say the police department must get back to issuing more violations, arguing that it’s critical to keeping city streets safe.

This afternoon, though, Mamdani declined repeatedly to say whether he will deliver such marching orders to the NYPD and suggested enforcement isn’t a key priority for him.

“Our goal here is not going to be measured in terms of the number of tickets that are issued or the violations, but rather behavioral change, and the NYPD is a partner in delivering that change,” Mamdani said, speaking at a press conference in Brooklyn held to unveil his new street safety plan, which contains ambitious proposals but is light on many implementation details.

How does the city change behaviors without stepping up enforcement, though? In response to that question, Mamdani suggested the answer could lie in developing more protected bus and bike lanes and otherwise redesigning streets to make them safer for pedestrians.

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At the same time, Mamdani said he’s committed to “a continued partnership with the PD to use those tools of ticketing when any violation is present.”

“We’re going to be taking a hard look at how best we can change behavior that we’re seeing in violation of street safety laws, and then utilize that. That includes the PD,” he said.

The mayor’s comments came after Streetsblog reported the NYPD has shifted its traffic violation strategy to prioritize enforcement against scofflaws on e-bikes and other micromobility vehicles. That shift comes in spite of the fact that car drivers account for the vast majority of crashes and traffic deaths in the city, data shows. — Chris Sommerfeldt  

FOILED ATTEMPT: The Manhattan Institute, a conservative think tank, is suing the Mamdani administration over its handling of Freedom of Information Law requests.

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The think tank has been seeking records related to meetings between foreign dignitaries and Ana María Archila, commissioner of the Mayor’s Office of International Affairs. Archila has faced criticism for attempting to meet with an Iranian diplomat amid that country’s war with the U.S.

While the Adams administration provided tailored estimates for FOIL requests (but by no means fulfilled them in a timely manner), the institute found Mamdani’s City Hall team began giving out blanket six-month timetables for fulfilling requests.

“City Hall has turned FOIL into a six-month waiting room for everyone,” Manhattan Institute City Policy Analyst Santiago Vidal Calvo and General Counsel Cameron Macdonald wrote in explaining their suit, which was filed in Manhattan Supreme Court. “That is why we are suing.”

The city did not immediately respond to a request for comment about the lawsuit.Joe Anuta

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SCREENS IN SCHOOLS: The New York City public school system banned unfettered access to YouTube on school-issued devices for the current school year, the Department of Education revealed Tuesday.

The ban — which went into effect last week, ahead of the first day of school — comes amid calls from City Council members to limit the use of YouTube, personal devices and AI in the classroom.

“We heard everyone loud and clear,” DOE official Scott Strickland said at a Council hearing today. “As of Wednesday night at 5 p.m., we filtered YouTube out of all student devices. They shouldn’t be able to access it either on a Chromebook or an iPad both at school and at home.”

Council member Shekar Krishnan, who chairs the Council’s Oversight and Investigations Committee and was co-leading Tuesday’s hearing, said he was “very glad to hear” of the YouTube ban.

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Educational videos embedded into Google Classroom for specific lessons will be exempt from the ban.

Earlier this month, Mamdani announced a year-long AI moratorium for students in grades 2-K through eighth grade. Hochul and lawmakers in Albany also rolled out a full-day “bell-to-bell” restriction on cellphone use during the school day last school year.

Ahead of this afternoon’s hearing, Krishnan and Council member Eric Dinowitz, who chairs the Education Committee, held a rally railing against screen-heavy classroom instruction and calling, among other things, for a YouTube ban.

“We will not let the greed of big technology companies get in the way of our children’s future and their education,” Krishnan said at the rally. — Molly Reinmann

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IN OTHER NEWS

DECLASSIFIED DOCS: Trump said he’d consider releasing classified documents related to 9/11 after victims’ families pleaded for clarity on Saudi Arabia’s involvement. (NY Post)

TIED UP: Long Island Democratic House candidate Christopher Gallant acknowledged he posed in bondage gear for an ad campaign over a decade ago. (The New York Times)

ICE ARRESTS: Police in the Westchester village of Port Chester have turned over more people with no criminal record to ICE than other local law enforcement agencies, despite assertions the police department would not cooperate with ICE. (NY Focus)

Missed this morning’s New York Playbook? We forgive you. Read it here.

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