Labour Accuses Ministers Of Living ‘Luxury Lifestyle’ At Taxpayers’ Expense

Posted on 12/02/2023 by Boris Clair

Taxpayers’ money has been used to fund five-star hotels for ministers “living the high life” on overseas trips, Labour has claimed following an analysis of government spending.

In July 2021, the Treasury, then under Rishi Sunak, spent £3,217 on accommodation at the five-star Hotel Danieli in Venice, and £1,361 at the four-star Hotel Bonvecchiati, for the then chancellor and 11 other government representatives at a G20 meeting.

Tory party chairman Greg Hands stayed in a £318-a-night five-star hotel in Germany while he was energy minister in July 2022, while Alok Sharma’s 66 trips as president of the Cop26 climate summit cost taxpayers £220,817 just for his own travel and hotels.

The details were uncovered through analysis of official figures and a string of parliamentary questions on the use of government procurement cards (GPCs), with Labour promising to publish a dossier on their use on Monday.

Deputy Labour leader Angela Rayner said: “As Conservative ministers once again reach into the pockets of taxpayers to dine out on five-star luxury lifestyle, families up and down the country are sick with anxiety about whether their pay cheque will cover the weekly shop.

“Britain is facing the worst cost-of-living crisis in decades and Rishi Sunak doesn’t seem to have noticed.

“Far from actually governing, Conservative ministers are living the high life and treating taxpayers like a cash machine.

“A Labour government will get tough on waste, with an Office of Value for Money upholding transparency and high standards for all public spending, including on government procurement cards.”

The findings show Lord Grimstone, a former business and trade minister, and an aide stayed at the Ritz-Carlton in Jeddah in October 2021 while attending the Saudi Investment Initiative, at a cost of £3,041 for four nights’ accommodation, or £760 per night.

Labour acknowledged that overseas travel is an essential part of the job for many ministers and officials and they should be able to stay in hotels where they can get a good night’s sleep and be safe, but insisted the most cost-effective options should be chosen.

The opposition’s investigation also uncovered evidence of large sums spent on domestic travel.

The Treasury hired a £3,600 chauffeur service for ministers and officials visiting Cop26 around the Finance Day addressed by then chancellor Mr Sunak on November 3 2021, claiming that no government cars were available.

In May 2022 then home secretary Priti Patel and an aide spent a combined total of £823 on two return train tickets to Stoke, described in the Home Office’s accompanying GPC transparency data as necessary expenditure for “urgent ministerial meetings”, even though it was a scheduled Cabinet away day.

A senior Conservative source said: “Awkwardly for Labour HQ they’ve forgotten that they introduced these ‘civil servant credit cards’ in 1997.

“By 2010 Labour was spending almost £1 billion of taxpayers’ money on everything from dinners at Mr Chu’s Chinese restaurant to luxury five-star hotels.

“The Conservatives swiftly stopped their absurd profligacy, cutting the number of cards, introducing a requirement for spending to be publicly declared and putting in place controls.

“Typically, Labour’s ‘big idea’ is to spend millions of taxpayer cash to establish yet another quango, stuff it with thousands of bureaucrats and give them gold plated pensions.”

Tory Splits Have Erupted Over Tax Cuts Ahead Of Next Month’s Budget

Posted on 12/02/2023 by Boris Clair

Deep Tory splits have burst into the open as pressure mounts on Jeremy Hunt to cut taxes in next month’s budget.

Right-wing backbencher John Redwood today urged the government to “get on with it” and said the majority of Conservative backbenchers agree.

But development minister Andrew Mitchell said immediate tax cuts were “extremely hard to justify” and backed the chancellor and Rishi Sunak, who have said tax cuts are unaffordable at the moment.

The clash came in the wake of official figures which confirmed the UK economy flatlined in the final three months of 2022.

Hunt will deliver his Budget on March 15, but has repeatedly insisted that inflation must come down before taxes can be cut.

Supporters of former prime minister Liz Truss have formed the Conservative Growth Group to put pressure on the chancellor and PM to change course.

Redwood, who is a member of the group, said the government should start by cancelling the planned rise in corporation tax – which companies pay on their profits – from 19p to 25p in the pound.

He said: “We want to see sensible, targeted tax cuts that will boost self-employment, boost investment and help solve the problem of recruiting and retaining doctors and other skilled staff, and will add to the idea of growth.

“All the evidence is in the past, when Conservative governments have had the courage to cut corporation tax rates, it raises more money.”

The Wokingham MP also called for VAT to be removed from domestic fuel bills.

He added: “The growth group is gathering strength as we speak. There are dozens of Conservative MPs who take the view that the growth strategy the government has headlined needs some more positive measures behind it.

“I think you’ll find a majority of Conservative backbenchers agree with what I’m saying today – that they want targeted tax cuts and there will be a range of views on which are the best targeted tax cuts to choose.

“The majority believes that you don’t get growth without more realistic tax levels.

“Many are very worried that Britain is in danger of becoming uncompetitive because of the higher taxes the government is wishing to impose.”

But Andrew Mitchell rejected Redwood’s ideas and said taxes could only come down when the government can afford them.

He said: “In the end, if we make tax cuts which are not properly funded, it’s borrowing and it’s taxation deferred for the next generation. Many of us are very concerned about inter-generational fairness in Britain – the position of our children and our grandchildren.

“So I think tax cuts are very important, but they’ve got to be done at the right time and I think that the philosophy and argument that the Chancellor of the Exchequer has set out is absolutely right.

“We will get them when we can, but I think at the moment it’s extremely difficult to justify them.”

The Last Leg Host Adam Hills Challenges Labour To Give New Pay Rise For MPs To Charity

Posted on 11/02/2023 by Boris Clair

The Last Leg presenter Adam Hills has challenged Labour to donate the recently announced pay rise for all MPs to charity.

Earlier this week, it was revealed that MPs are set to get a 2.9% pay increase, taking their salary from £84,144 to £86,584 from 1 April.

The news was discussed on the topical Channel 4 panel show on Friday night, where Adam and co-host Alex Brooker branded the move “tone deaf”.

Alex said: “It’s pretty tone deaf given the strikes with the nurses at the moment. And you’ve got Rishi Sunk trying to placate them going, ‘Well, we’ll be able to give you a pay rise next year.’ That’s not really how strikes work.”

Adam agreed, and went on to discuss a recent committee suggestion that departing MPs should be presented with a medallion of service when they step down.

He continued: “Do you know what I would love to see Labour do this week, by the way, is go: ‘We’re not going to take the pay rise, we’re going to donate it to charity.’

“What a lovely challenge that would be. What a lovely point that would make.”

Adam was met with a round of applause from the studio audience after making the suggestion.

However, comedian Dara Ó Briain, who was a guest on the show, disagreed.

“Can I say no to that?” he said. “Because yet again, one side of the debate has to be morally pure and the other will just take the cash, and that seems unfair in some ways, and wrong.

“Also the whole point is to encourage people to come into politics, and yeah a lot of them are rotten, but if you’re constantly staying to them, ‘You have to very obviously give your money away whenever you get it,’… I don’t know.”

He concluded: “I think holding Labour to some higher standard just because they’re Labour is wrong.”

The Independent Parliamentary Standards Authority, which sets MPs’ pay, previously said that the increase would be the same as the average rise for public sector workers last year.

Ipsa chairman Richard Lloyd said: “In confirming MPs’ pay for next year, we have once again considered very carefully the extremely difficult economic circumstances, the government’s evolving approach to public sector pay in the light of forecasted rates of inflation, and the principle that MPs’ pay should be reflective of their responsibility in our democracy.

“Our aim is to ensure that pay is fair for MPs, regardless of their financial circumstances, to support the most diverse of parliaments.

“Serving as an MP should not be the preserve of those wealthy enough to fund it themselves.

“It is important for our democracy that people from any background should see representing their communities in Parliament as a possibility.”

Former Chancellor Philip Hammond Spells It Out: ‘We’ve Got Poorer Because Of Brexit’

Posted on 09/02/2023 by Boris Clair

Britain has got poorer because of Brexit, former chancellor Philip Hammond has admitted.

The senior Tory said the Covid-19 pandemic and the soaring cost of energy have also contributed to the cost of living crisis.

His comments are significant because the government has repeatedly denied that leaving the European Union has had a negative impact on the economy.

Speaking to Bloomberg TV, Hammond said: “The truth is we’ve got poorer. We’ve got poorer because of Brexit, we’ve got poorer because of Covid, we’ve got poorer because of the changed energy economy in the world, the higher price of the energy we consume.

“And that has to be reflected in reduced living standards and the transmission mechanism for those external shocks into the domestic economy is inflation.”

Hammond – who was chancellor between 2016 and 2019 and an MP for 22 years – backed Remain in the Brexit referendum.

His comments come after the International Monetary Fund forecast last month that the UK economy will perform worse than every other major country in 2023.

Even Russia – hit by swingeing economic sanctions by the global community due to its invasion of Ukraine – will out-perform Britain, the IMF said.

In its latest World Economic Outlook update, which was released on the third anniversary of Brexit, the IMF predicted the UK economy will shrink by 0.6% this year, compared to its October prediction that it would grow by 0.3%.

By contrast, every other country in the G7 group of advanced nations will see their economy grow – with America’s set to expand by 1.4%.

Russia’s economy will grow by 0.3% over the next 12 months, the IMF said.

Among the other G7 nations, the IMF’s 2023 predictions show growth, 0.1% in Germany, 0.7% in France, 0.6% in Italy, 1.8% in Japan and 1.5% in Canada.

China’s economy will grow by 5.2%, the IMF said, with India’s expanding by 6.1%.

Overall, the IMF said the global economy will grow by 2.9%.

Rishi Sunak Rejects Call From Deputy Tory Chairman For Return Of Death Penalty

Posted on 09/02/2023 by Boris Clair

Rishi Sunak has rejected calls for the return of the death penalty made by the new deputy chairman of the Conservative Party.

Lee Anderson said he backed the death penalty because “nobody has ever committed a crime after being executed”.

He told The Spectator magazine that capital punishment has a “100% success rate” when it came to stopping repeat offenders.

But speaking to reporters during a visit to Cornwall on Thursday, the prime minister said that was “not my view” and “not the government’s view”.

Sunak added: “But we are united in the Conservative Party in wanting to be absolutely relentless in bearing down on crime and making sure people are safe and feel safe.”

The prime minister said his government had “tightened up sentencing laws for the most violent criminals” and “they spend longer in prison”.

The death penalty for murder in the UK was outlawed permanently in 1969, with it totally abolished for all crimes in 1998.

Anderson was the most eye-catching appointment made as part of Sunak’s mini-reshuffle on Monday.

A former Labour councillor before converting to the Tories, he has been no stranger to controversy since being elected as MP for Ashfield in 2019.

He has criticised food bank users and also the England men’s football team for taking the knee in protest at racism.

Earlier, children’s minister Claire Coutinho said that while she was a “big fan” of Anderson, she didn’t back the return of capital punishment.

Rishi Sunak Orders Dramatic Whitehall Shake-Up In Bid To Reboot His Leadership

Posted on 07/02/2023 by Boris Clair

Rishi Sunak has created a new energy department as part of a dramatic shakeup of government departments, in an attempt to reset his premiership after 100 days in office.

They cabinet reshuffle on Tuesday has seen Greg Hands appointed chairman of the Conservative Party, replacing Nadhim Zahawi who was sacked over his tax affairs.

Under the new structure, the department for business, energy & industrial strategy (BEIS) has been broken up into three.

Grant Shapps has moved sideways to lead a new energy security and net zero department. Its creation fulfils a pledge Sunak made during the summer Tory leadership contest.

There is a new department of science, innovation and technology to be led by Michelle Donelan.

Kemi Badenoch has been appointed business secretary, after the remaining parts of BEIS were merged with the department for international trade, creating the business and trade department (BaT).

Lucy Frazer has been promoted from housing minister to replace Donelan as culture secretary.

The government said the new departments would “ensure the right skills and teams are focused on the prime minister’s five promises”.

Sunak has chosen to keep Dominic Raab in post, despite the deputy prime minister being subject to an investigation in to multiple claims of bullying, which he denies.

Grant Shapps Says Liz Truss’s Economic Approach ‘Clearly Wasn’t Right’

Posted on 05/02/2023 by Boris Clair

Business secretary Grant Shapps has said Liz Truss’s approach to tackling low economic growth “clearly wasn’t” the right one.

Shapps said that while he agreed with the former prime minister that the UK should have a lower-tax economy, that could not happen without “laying out the groundwork” first by tackling inflation and controlling debt.

The Cabinet minister, who served as Truss’s home secretary for just six days, was speaking in response to a 4,000-word article penned by Truss in the Telegraph on Saturday.

In the article, Truss claimed she was not given a “realistic chance” to enact her policies to cut taxes and boost growth, which she argued were correct.

Truss’s 49 days in office ended following the market turmoil caused by her chancellor Kwasi Kwarteng’s mini-budget, which unveiled £45 billion-worth of unfunded tax cuts.

It caused the value of the pound to plunge, interest rates to soar and led to the Bank of England having to bail out the UK’s pensions industry.

Truss said that while she was not “blameless” about the market turmoil that ensued, she was nevertheless held back by a “very powerful economic establishment” and a “lack of political support”.

Taking aim at her own party, she said she had “underestimated the resistance… to move to a lower-tax, less-regulated economy”.

Her intervention — her first since standing down in October — has reignited a debate in the Conservative Party about how it grapples with high taxes and sluggish economic growth.

A recent bleak forecast from the International Monetary Fund (IMF) stated that the UK economy will perform worse than every other major country in 2023 — including sanctions-hit Russia.

Asked whether he thought Truss’s approach to the economy was right, Shapps replied: “Clearly it wasn’t.”

Shapps also defended the Conservative Party from Truss’s criticisms, saying: “No-one wants to pay higher levels of taxes but I think you have to set this in an international context.

“Every Western government has been hit by Putin’s illegal invasion of Ukraine and experienced through-the-roof energy costs, and has then experienced high levels of inflation.

“People might mistakenly think this is something happening in Britain and Britain alone. In fact if you look at the international comparisons, it is happening around the world. Every government is struggling with this.”

Truss has kept a low profile ever since she was ousted from the top job after just 49 days in office —until now.

Her intervention represents another headache for Rishi Sunak, who is already battling with the resurgence of Boris Johnson.

The former prime minister has also put pressure on Sunak over the economy, calling on him to cut taxes before the next election.

The prime minister has repeatedly said that inflation must be brought under control but the government can contemplate slashing taxes.

Johnson also criticised Sunak’s decision not to send British fighter jets to Ukraine following a plea from Kyiv to Western allies.

Downing Street has said it would not be “practical” to send jets to Ukraine. The UK has, however, sent 14 Challenger 2 tanks to assist with the war effort against Russia.

Just 7% Of Voters Believe That Rishi Sunak Can Tackle Tory Sleaze

Posted on 02/02/2023 by Boris Clair

Just 7% of voters have confidence that Rishi Sunak will tackle sleaze in British politics.

The shock findings follow the sacking of Nadhim Zahawi as Tory chairman after he was found guilty of multiple breaches of the ministerial code over a probe into his tax affairs.

Sunak is also coming under mounting pressure to sack his deputy, Dominic Raab, over bullying claims made against him by dozens of civil servants.

The poll by People Polling for GB News, also shows little public appetite for Boris Johnson to return to government.

And it confirms that the Conservatives continue to trail more than 20 points behind Labour.

Those taking part in the poll were asked how confident they were that Sunak – who marks 100 days as PM today – could eradicate sleaze from British politics.

Only 1% said they were “completely confident”, with a further 6% saying they were “confident”.

By contrast, 55% said they were “not confident at all”.

Sunak’s ratings were barely any better among Conservative voters, with just 3% of them “completely confident” in his ability to tackle sleaze. Meanwhile, 82% of Labour voters said they were “not confident at all”.

At prime minister’s questions yesterday, Keir Starmer said: “The Tory Party’s addiction to sleaze and scandal has done huge damage to this country and the cost to the public keeps adding up.”

Politics expert Professor Matt Goodwin said: “Amid the fallout from Nadhim Zahawi’s resignation and ongoing stories about sleaze and bad behaviour around the Conservative Party, we find that very few voters are confident Rishi Sunak can clean up politics and remove sleaze.

“On the contrary, more than half the electorate say they are ‘not confident at all’ he will be able to take care of sleaze.”

Amid calls for Boris Johnson to replace Zahawi as Tory chairman, the poll found that 56% of voters either “strongly opposed” or “opposed” his return to cabinet, with only 21% supporting it.

Even among Tory voters, just 47% said they support him returning, with 30% opposing it.

Overall, the poll puts Labour on 46%, with the Conservatives on 22% and the Lib Dems on 9%.

Professor Goodwin said: “The Conservative Party’s share of the national vote remains as flat as a pancake, at a historic low level of support.

“There is little evidence Rishi Sunak, whose own ratings were also down last week, is turning the boat around. The party is still headed for a heavy wipeout at the general election unless things change and, before then, a bruising set of local elections in the spring.”

Nick Ferrari Slaps Down Minister For Citing Covid-19 Vaccine As A Brexit ‘Achievement’

Posted on 31/01/2023 by Boris Clair

Nick Ferrari slapped down a minister today after he cited the Covid-19 vaccine as a Brexit “achievement”.

Transport minister Richard Holden was asked to name the three “best achievements” of Brexit on the third anniversary of the UK’s departure from the European Union.

But when he named the Covid vaccine roll-out as his first example, veteran presenter Ferrari told him that was “not true”.

Holden told LBC: “Well, I’d say from the start the biggest impact we’ve seen over the last couple of years is probably Britain’s ability to fulfil its own vaccine programme…”

Ferrari interrupted: “Well, you will be aware of course the independent website Full Fact say that’s not true. And even the boss of our own MHRA (Medicines and Healthcare products Regulatory Agency) Dr June Raine has also said that’s not true. So can we strike that one out?”

Holden conceded that he was “absolutely right” and the country could have done it “within the EU”.

But he added: “I think the pressure, if we’d been in the EU to be part of an EU scheme, would have been quite unbelievable.”

For his second example he cited the UK’s procurement rules and for his third he outlined Solvency II reforms that have enabled Britain’s financial services sector to “remain head and shoulders above the rest of Europe”.

Meanwhile, the International Monetary Fund has forecast that the UK economy will perform worse than every other major country in 2023 – including Russia.

Rishi Sunak To Resist Calls For Nadhim Zahawi To Lose Tory Whip

Posted on 30/01/2023 by Boris Clair

Rishi Sunak will resist calls to strip Nadhim Zahawi of the Tory whip over the tax scandal that brought him down, HuffPost UK understands.

The former party chairman was sacked by the PM yesterday after being found to have broken the ministerial code on several occasions.

In a damning report, Sir Laurie Magnus, Sunak’s ethics adviser, said Zahawi had failed “to be honest, open and an exemplary leader through his own behaviour”.

Although he was booted out of the government, he remains the Conservative MP for Stratford-in-Avon.

Lib Dem deputy leader Daisy Cooper has written to the prime minister urging him to remove the Tory whip from Zahawi if he refuses to quit the Commons.

She said: “Nadhim Zahawi failed to pay the taxes he owed, refused to come clean, and then threatened campaigners and journalists with legal action simply for trying to uncover the truth.

“It shows that Zahawi is simply not fit to represent his constituents in Parliament. If he refuses to stand down as an MP, Rishi Sunak surely has no choice but to withdraw the Conservative whip.

“Sunak dragged his feet for weeks over this scandal. He must now act swiftly if he’s serious about restoring integrity to this sleaze-ridden Conservative government.”

But a source in the Tory whips office pointed to the final paragraph of Sunak’s letter to Zahawi yesterday as proof that the PM plans to stand by his party colleague.

In it, the prime minister said: “I know I will be able to count on your support from the backbenches as you continue to passionately and determinedly serve your constituents of Stratford-on-Avon and represent the many issues and campaigns you are dedicated to.

“Thank you for your service to this and previous governments.”

In his reply, Zahawi also pledged his support to the government.

He said: “You can be assured of my support from the backbenches in the coming years. Your five priorities are the right priorities, and I will do whatever I can to help you deliver them.”

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