Sir Keir Starmer has refused to rule out more tax rises amid a fiery Prime Minister's Questions debate, which saw him brand the Tories as "fantasists".
Leader of the Opposition Kemi Badenoch grilled the PM on new financial measures which Labour has introduced, which she says will see companies go out of business by next year.
"Why should anyone trust a word he says," Badenoch told the Commons.
Starmer responded by defending Labour's decisions, pointing to a volatile global economy. He also said that Labour has acted in response to the "blackhole" left by the Conservatives.
"They weren't brave enough in Government to take those difficult decisions, they've opposed all of our measures to stabilise the economy and create growth, they're back to the magic money tree," he says.
"They’re back to the magic money tree, she wants all the benefits of the budget, but she can’t say how she’s going to pay for them.
"They haven’t changed, they’re still economic vandals and fantasists, imagine where we’d be if they were still in charge.”
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Reeves will be Chancellor for 'many years to come', PM says
Reeves will be Chancellor for 'many years to come', PM says
Parliament.TV
Sir Keir Starmer defended his Chancellor Rachel Reeves, saying he believes she'll be in the role "for many years to come" and will outlast Tory leader Kemi Badenoch.
The Conservative leader asked the PM if he could promise that there would only be one budget this year, as the pound falls and borrowing cost continue to rise.
She said that whilst Starmer has full confidence in the Chancellor, the markets do not and went on the criticise Reeves ability to manage the UK's finances.
Badenoch said: “The talk in the City is that she can’t meet her fiscal rules, and there will need to be an emergency budget. So does the Prime Minister stand by the Chancellor’s commitment that there will be only one budget this year?"
Starmer quipped back that said he did not have enough time to criticise previous Tory chancellors.
He said: “She’ll be pleased to know the Chancellor will be in place for many, many years to come. She’ll outstrip that. If we all thought that politics was about cheap words, I could criticise their chancellors, but I don’t have enough time to go through all the chancellors that they had.
“We had one budget, that’s what we’re committed to, strong fiscal rules, that’s what we’ll stick to, unlike the party opposite.”
Keir Starmer set to give compensation to Gerry Adams and others imprisoned on suspicion of terrorism
Unacceptable!’ Keir Starmer set to handover taxpayer cash to suspected terrorists
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Gerry Adams could be in line for a “pay day from the taxpayer”, thanks to Sir Keir Starmer’s human rights plans, senior peers have warned.
The former Sinn Fein president could receive compensation under plans to repeal the Legacy Act.
The legislation currently blocks him - and others interned without trial in the 1970s for suspected involvement in terrorism - from receiving compensation.
However, Starmer’s Government has begun the process of repealing the act by reversing two sections of the 2023 Northern Ireland Troubles Act.
It comes after a ruling by the High Court declared that parts of the act related to the Interim Custody Orders (ICOs) are incompatible with human rights.
Hilary Benn, the Northern Ireland Secretary, said that the move underlined “the Government’s absolute commitment to the Human Rights Act”.
However, IRA bombing victims have branded the decision as “unacceptable”, and 16 leading peers have urged Labour to reconsider.
Shadow Attorney General Lord Wolfson KC, one of the peers, said: “The Government's decision to repeal sections 46 and 47 of the Northern Troubles Act 2023 is inexplicable and unexplained.
“Parliament must now ask hard questions about why the Government is determined to override Parliament's recent, unanimous decision to vindicate the Carltona principle and to block Gerry Adams from being paid public money.”
Adams has always denied being a member of the IRA.
Mauritius issues defiant statement as it rejects Labour's Chagos deal terms AGAIN
The government of Mauritius has issued a statement after once again rejecting Labour's Chagos deal, saying their commitment to reach an agreement remains "unshaken".
The Cabinet of Mauritius met this morning under the chairmanship of Prime Minister Navin Ramgoola to be informed of the developments on the deal.
The Attorney General travelled to London recently in relation to the proposed treaty on the sovereignty of Mauritius over the Chagos Archipelago.
He will now travel to London again this evening in order to continue discussions with the UK Government.
‘An absolute SCANDAL!’ Mike Parry in blistering rant over Labour’s ‘outrageous’ rush to seal Chagos deal
Mike Parry lashed out at Labour's surrender of the Chagos Islands GB NEWS / GETTYBroadcaster Mike Parry has lashed out at Britain and Mauritius’ last-ditch attempt to finalise a deal over the sovereignty of the Chagos Islands ahead of Donald Trump’s inauguration.
The president-elect is said to be sceptical about Labour’s plan, sparking fears that his elevation to power could throw it into doubt.
British officials say “good progress” is being made with a crucial round of talks scheduled ahead of Trump taking office on January 20.
Speaking on GB News, Parry branded Labour’s efforts an “absolute scandal” as he lashed out at Sir Keir Starmer and Foreign Secretary David Lammy.
Chagos Islands deal: UK and Mauritius say 'good progress' is being made on revised agreement
The UK and Mauritius are “mid-negotiation” on a revised deal to hand back the Chagos Islands, a minister has said.
Mauritian Prime Minister Navin Ramgoolam is holding a special cabinet meeting on Wednesday morning to sign off the deal, reports have said.
However, Chief Secretary to the Treasury Darren Jones, said that the UK was still in talks with the East African island.
The UK and Mauritius have said they have made “good progress” on a revised agreement, with Ramgoolam claiming the UK wants it finalised before Donald Trump's inauguration on January 20.
The future of the joint UK-US military base on Diego Garcia – the largest island in the Chagos archipelago – might be secured for only 50 years rather than the 99 years initially discussed, media reports have suggested.
“We are mid-negotiation with the Mauritian government on the Chagos Islands,” Jones told LBC.
“Listeners will probably know, I suspect, that this is an island that is an important military base for the UK, important to our national security. It’s right, therefore, that we secure our presence and operations on that island.”
'Relief' for Rachel Reeves as FTSE 100 SURGES while borrowing costs plummet in boon for UK economy
The UK economy is experiencing a slight boon in the wake of today's inflation figures with the stock market jumping and borrowing costs plummeting. Economists cite this as much-needed "relief" for Chancellor Rachel Reeves amid recent market turmoil.
Figures from the Office for National Statistics (ONS) published today revealed the consumer price index (CPI) rate of inflation for the 12 months to December 2024 fell to 2.5 per cent, down from 2.4 per cent.
This morning, the FTSE 100 added 55 points at the open to reach 8,257, primarily led by Persimmon PLC (LSE:PSN) and other housebuilding companies, signalling renewed confidence among parts of the private sector.
MP who is 'survivor of abuse' launches legal action against Tate brothers
Sorcha Eastwood
PA
An MP has launched legal action against Andrew Tate and his brother Tristan over their controversial social media posts.
Sorcha Eastwood, of the Alliance Party in Northern Ireland, told the House of Commons the day prior that she was a "survivor of abuse".
During a debate on violence against women and girls, she also said she was once approached by a member of the public who said that he wanted to rape her.
Kevin Winters of KRW Law said: “We act on behalf of Sorcha Eastwood MP.
“We are instructed to issue legal proceedings against Andrew and Tristan Tate over their continued publication of social media postings on 10 January 2025.
“We can confirm service of correspondence on today’s date to their solicitors.
“In light of the sensitivities of the issues engaged, we have no further comment at this stage.”
Andrew Tate has previously been banned from TikTok, YouTube and Facebook after the platforms accused him of posting hate speech and misogynistic comments,
‘Get a grip!’ Rachel Reeves savaged by Mel Stride over ’stone dead’ growth
Shadow Chancellor Mel Stride has launched a blistering attack on Rachel Reeves, telling GB News she needs to "get a grip" on the economy.
The former Chancellor accused his successor of presiding over "stone dead" growth and claimed the Labour government had "taxed the living daylights out of business."
His strong criticism prompted GB News star Eamonn Holmes to intervene, suggesting Stride was being "mean" to Reeves given the global economic situation.
Keir Starmer faces PMQs grilling just hours after Tulip Siddiq quits No10
Keir Starmer faces PMQs grilling just hours after Tulip Siddiq quits No10
PA
Sir Keir Starmer will face a grilling from Kemi Badenoch at Prime Minister's Questions today, just hours after Labour's Treasury Minister Tulip Siddiq stepped down from the role.
The MP for Hampstead and Highgate has stepped down from her post following allegations that her family had links to the Bangladeshi government.
Siddiq, whose role as Economic Secretary to the Treasury included tackling corruption in UK financial markets, had ties to the political party led by her aunt Sheikh Hasina, the former prime minister of Bangladesh.
An investigation that began last month has been probing claims that her family embezzled up to £3.9billion from infrastructure spending in the south Asian country.
In a letter to Starmer, Siddiq said that although she had "not breached the ministerial code", her continuation in her role as the anti-corruption minister would be "a distraction from the work of the Government".
In response to her letter of resignation, Starmer said that he accepted her decision "with sadness", writing: "I also wish to be clear that Sir Laurie Magnus as Independent Adviser has assured me he found no breach of the ministerial code and no evidence of financial improprieties on your part."
Badenoch, who Starmer will face later today at PMQs, has said the Prime Minister "dithered and delayed to protect" Siddiq.
The Prime Minister will also reportedly meet with senior figures today, amid speculation that the Chagos Island's deal is soon to be completed.
Treasury minister rules out March budget: 'There will only be one major fiscal event a year'
Darren Jones joined Ellie Costello and Stephen Dixon on GB News GB NEWSDarren Jones, Chief Secretary to the Treasury, has said there will be no mini-Budget in March and the only major fiscal event will take place in autumn.
Speaking to Times Radio, he said: “We’ve been very clear there’s only going to be one major fiscal event, Treasury language for a budget, a year. We did that in the autumn last year."
Asked whether he was ruling out a spring mini-Budget, as the pound falls and borrowing cost continue to rise, the minister said there would be a spring statement on March 26.
“But we will only be having one major fiscal event a year, budget, and that will be in the autumn.”
Downing Street breathing 'sigh of relief' after inflation drop
Downing Street will be breathing a “sigh of relief” after UK inflation unexpectedly fell last month, a former Bank of England policymaker said.
Economist Michael Saunders said of the new figures: “I think you can hear a sigh of relief coming out from Downing Street, the Bank of England and across financial markets as a whole.
“To be sure, inflation is a little bit above the 2 per cent target, but markets have been expecting today’s figure to be stable or higher and it came in a little lower than expected with services inflation, which the Bank of England is closely focused on, sharply lower than the previous month,” he told the BBC.
He added that the new figure would be “some help” in easing some of the “worries about the outlook for the UK”.
Inflation DROPS to 2.5% in win for Rachel Reeves after market turmoil
Rachel Reeves
GettyInflation in the UK has falling slightly in a win for consumers, according to the latest figures from the Office for National Statistics (ONS). The consumer price index (CPI) rate for the 12 months to December 2024 dropped to 2.5 per cent, up from 2.6 per cent the month before.
Britons have been saddled with inflation-hiked prices amid the ongoing cost of living crisis with today's figures likely to ease financial concern for millions of households across the country.
The news places is good news for Chancellor Rachel Reeves, who is under scrutiny over the Autumn Budget decisions which many have blamed for gilt yields rising over the past week.
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