Sunak: we can afford to cut taxes during a recession
Rishi Sunak has insisted that his government can afford to cut taxes, despite the country having entered a recession, because “economic conditions have improved”.
Speaking to the media, he said “our plan is working” and he can “give everyone the peace of mind that there is a better future for them and their families”.
He said tax cuts were possible “because of our plan to halve inflation, which has been successful over the past year, and because economic conditions have improved. We have already been able to start cutting taxes for people.”
He continued:
We delivered a significant tax cut at the start of this year, cutting the rate of national insurance from 12% to 10%, now that means someone on an average earnings of about £35,000 is seeing a tax cut worth £450 that hit their payslips in January.
Now that will benefit everyone in work, it demonstrates that our plan is working. And if we stick with that plan, I can give everyone the piece of mind that there is a better future for them and their families ahead, and we can all have a renewed sense of pride in the country.
Sunak is in Harlow today, where he has been meeting the local police force.
He told the media that he was making progress on his five key pledges. He said:
We’ve clearly been through a lot over the past couple of years as a country, but I genuinely believe at the start of this year we’re pointing in the right direction.
Now we’re not out of the woods yet, but across all the priorities that I set out we’re making progress.
Inflation has been more than halved, the economy out-performed expectations last year, debt is on track to fall, we’ve cut the number of illegal migrants coming by a third and we’re making progress on the longest waits in the NHS.
Key events
Ed Miliband has been speaking at the Scottish Labour conference in Glasgow, and said that basing the proposed new GB Energy company in Scotland would help make the country the UK’s “clean energy capital”.
Saying this would be part of a “just transition” away from industries such as oil and gas, he added: “I’m old enough to remember when the SNP made this promise, seven years ago they promised a publicly owned energy company. They have failed to deliver. We will deliver on that promise.”
Miliband said “We’re going to have GB Energy, a publicly owned energy company, headquartered here in Scotland investing billions of pounds. We’re going to have a British jobs bonus. We want to end the grotesque situation where we have massive offshore windfarms off the coast of Scotland but not a piece of them is built here in Scotland. We are going to change that.
“We will create hundreds of thousands of jobs in the industries that will power our future – hydrogen, carbon capture and storage, floating offshore wind. These are the technologies. We are going to succeed where the SNP and the Tories have failed.”
Polly Toynbee has her column today on the byelection results, arguing that the voters of Wellingborough and Kingswood said one thing with one voice: the Tory era is over.
Here is a video clip of Rishi Sunak delivering his verdict on the byelection results in Wellingborough and Kingswood.
Here is what prime minister Rishi Sunak had to say specifically about the byelection defeats in Wellingborough and Kingswood:
Midterm elections are always difficult for incumbent governments, and the circumstances of these elections were of course particularly challenging.
Now, I think if you look at the results, very low turnout, and it shows that we’ve got work to do to show people that we are delivering on their priorities and that’s what I’m absolutely determined to do, but also shows that there isn’t a huge amount of enthusiasm for the alternative in Keir Starmer and the Labour party, and that’s because they don’t have a plan.
And if you don’t have a plan, you can’t deliver real change. And when the general election comes, that’s the message I’ll be making to the country. Stick with our plan, because it is starting to deliver the change that the country wants and needs.
Sunak refers to the byelections as midterm, although they come right at the end of the current five year parliament, with a general election set to take place within months.
David Frost has posted to social media to say that he believes it is not too late for the Conservatives to change course and still win the next election. The peer said:
I will have more to say in Telegraph later, but in brief these byelections show the same story as previous ones: former Conservative voters are simply not coming out and voting Conservative. The Labour vote isn’t going up, but ours is collapsing. To get voters back we need a shift to more conservative policy, on tax and spend, immigration, net zero, public sector reform, and more. It’s late, but not – yet – too late.
I mentioned earlier that Rishi Sunak is in Harlow this morning, meeting local police. As well as commenting about his party’s two byelection defeats (See 9.49 GMT), the prime minister has been speaking to the media about knife crime and policing policy.
He was shown a series of more than half a dozen blades that had been confiscated by officers, and spoke about plans to increase patrols in areas affected by antisocial behaviour.
Sunak said:
I’ve been here in Essex talking to the police about that plan and how it’s working, and the good news is that it is working and making a real difference.
Through the increased use of hotspot policing, drug testing on arrest, dispersal powers, on-the-spot fines, we’ve seen antisocial behaviour fall by up to 50% in the areas where we’ve trialled this new plan.
That’s why we’re now going to roll it out across the country with more funding so that everyone can benefit from these improvements and it just shows that if we stick to the plan we can deliver a brighter future for everyone.
Yesterday, home secretary James Cleverly posted to social media about plans to role out what the government calls “hotspot policing”.
Keir Starmer said that he had made a tough decision to drop the party’s support for Azhar Ali in the Rochdale byelection, but he was “satisfied” with Labour’s “robust due process”.
He told BBC Breakfast earlier:
I did something that no leader of the Labour party has ever done before, which is to remove a candidate in a byelection where they cannot be replaced, because I was so determined to take decisive action in relation to antisemitism.
It was done within days. We are giving up a Labour seat. That’s the right thing to do. But what it shows is, when there’s tough decisions to be made I take those decisions.
I’ve put in place in the Labour party a robust due process exercised for every single candidate. We must continue to fight antisemitism wherever we are in organisations, in political parties.
Richard Tice, fresh from Reform UK’s best ever byelection performances, has been on GB News arguing that the prime minister and the Conservative party should “step aside” and let him and his party challenge Labour at the next election.
He told the broadcaster:
I think people are realising the Tories are tired, that they are old and they are toxic. They’ve had the chance – they’ve blown it, frankly, they should stand aside now having messed up. My message to them is let me take on Keir Starmer and beat him. You’ve got to be optimistic. I’ve got loads of it.
He added that there was no chance that Reform UK would step aside from contesting Conservative seats, as forerunner the Brexit party did in 2019.
No way. (The Conservative party) had a chance before. No one believes a word they say anymore. They said that last time and we fell for it. We’re not falling for that nonsense again. No one trusts them. I’ve still got the scars on my back from last time. A week tomorrow we will be releasing the draft of our election contract with the people which will cover all of these areas in great detail, including costings.
Yesterday I mentioned that the Conservatives had taken a four second clip of London mayor Sadiq Khan misspeaking during an interview and used it on social media to imply he had said that the Labour party was “proud to be both anti racist, but also antisemitic”.
The social media post was widely criticised for being misleading, as the Conservatives had edited out Khan immediately correcting himself to say he was proud of the way the party was tackling antisemitism.
They accompanied the four second clip with the caption “Sadiq Khan says the quiet part out loud”. Miriam Mirwitch, who is national secretary of the Jewish Labour Movement, condemned it as “cynical political point scoring (that) will only hurt British Jews like me.”
This morning Calum Macdonald tried to challenge Tory chair Richard Holden about it when he appeared on Times Radio. Holden absolutely refused to engage with the argument that the party was spreading misinformation, instead saying it wasn’t the main issue, and arguing about the semantics of whether the video was “edited” or “clipped”.
The exchange is excruciating – you can watch it here:
Sunak: we can afford to cut taxes during a recession
Rishi Sunak has insisted that his government can afford to cut taxes, despite the country having entered a recession, because “economic conditions have improved”.
Speaking to the media, he said “our plan is working” and he can “give everyone the peace of mind that there is a better future for them and their families”.
He said tax cuts were possible “because of our plan to halve inflation, which has been successful over the past year, and because economic conditions have improved. We have already been able to start cutting taxes for people.”
He continued:
We delivered a significant tax cut at the start of this year, cutting the rate of national insurance from 12% to 10%, now that means someone on an average earnings of about £35,000 is seeing a tax cut worth £450 that hit their payslips in January.
Now that will benefit everyone in work, it demonstrates that our plan is working. And if we stick with that plan, I can give everyone the piece of mind that there is a better future for them and their families ahead, and we can all have a renewed sense of pride in the country.
Sunak is in Harlow today, where he has been meeting the local police force.
He told the media that he was making progress on his five key pledges. He said:
We’ve clearly been through a lot over the past couple of years as a country, but I genuinely believe at the start of this year we’re pointing in the right direction.
Now we’re not out of the woods yet, but across all the priorities that I set out we’re making progress.
Inflation has been more than halved, the economy out-performed expectations last year, debt is on track to fall, we’ve cut the number of illegal migrants coming by a third and we’re making progress on the longest waits in the NHS.
Starmer: Labour are ‘credible contenders’ for next election, but ‘that is all’
Labour leader Keir Starmer said that his party has achieved a decade’s worth of work turning the party around after the last election result to become “credible contenders” at the next one, but added “that is all we are.”
He told BBC Breakfast:
I’m proud of the work I’ve done as leader. The progress we’ve now made from the worst results since 1935 to being now credible contenders – and that is all we are – for the 2024 election.
I have to say, when I took over as leader most people shook my hand and said: “Good luck Keir,” and in the next breath they said: “You will never do this in one five-year parliamentary term.”
We are trying to do, if you like, what Kinnock, what Smith and Blair did, over 13 or 14 years, in four short years.”
Sunak: a vote for anyone other than Conservatives at general election ‘is just a vote to put Keir Starmer in power’
Rishi Sunak has said the next general election is a choice between himself and Keir Starmer as prime minister, and that a vote for any party other than the Conservatives was a vote to put Starmer in power.
He told reporters:
A vote for anyone who isn’t the Conservative candidate, whether that’s Reform or anyone else, is just a vote to put Keir Starmer in power.
That’s the actual choice at the general election, between me and him, between the Conservatives and Labour.
Now I believe our plan is working. At the start of this year we’re heading in the right direction, taxes are coming down, inflation is falling, and if we stick with that plan we can deliver everyone a brighter future.
This week the UK went into recession.
Steven Morris
Steven Morris is in Kingswood for the Guardian
Interesting comments from the Labour MP Chris Bryant who led the campaign in Kingswood and has been celebrating in the park with the successful candidate. He told the Guardian the sense of relief at the win was “massive”.
“At 6pm yesterday evening, I thought, oh, no we’ve lost it. It had been tipping with rain. Would voters turn out? At the beginning of this campaign everyone was saying, Labour’s bound to win this. I never thought that – so yes, massive sense of relief, massive achievement.”
He said it was a boost to Labour’s chances of winning in the south and south-west of England. “This shows we’re on track. A lot of people think it’s time for a change and that is replicable across lots of constituencies.”
Bryant also pointed out that a chunk of the Kingswood constituency (which is abolished at the next general election) goes into Jacob Rees-Mogg’s.
Rees-Mogg’s response to the result has been to say that the combined Tory and Reform UK vote was larger than the Labour one. “But that’s not how it works. How patronising can you be to voters? You just go, they’re really ours, they’re not. He lost badly and I got the feeling this was very much his campaign.”
Bryant also criticised the Tories’s campaign for being “just rude” about the Labour candidate, Damien Egan, continually claiming he wasn’t local, though he was raised in Kingswood.
He took a swipe at the Tory candidate, Sam Bromiley, for his swift exit from the count hall.
“The Tory party used to be the party of manners. It is rude to the voters just to run away at the end, not even make a little speech of concession. They all need to go back to finishing school.”
Bryant said Labour’s troubles over comments made about Israel this week weren’t mentioned on the doorstep, though the U-turn on green energy did surface. “If anything people were saying fair play to the Labour party, they are telling it like it is and being upfront before the election.”
A lot of chatter about low turnout is around, so I thought I would just go back and look at the turnout figures at byelections for the last couple of years. You can see there are a few outliers there, and every constituency had its own circumstances around the vote, but here is a list if you find it helpful to put the Wellingborough and Kingswood figures into some context.
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Southend West, Feb 2022, 24.0%
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Birmingham Erdington, Mar 2022, 27.0%
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Wakefield, Jun 2022, 39.1%
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Tiverton and Honiton, Jun 2022, 52.3%
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City of Chester, Dec 2022, 41.2%
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Stretford and Urmston, Dec 2022, 25.8%
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West Lancashire, Feb 2023, 31.4%
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Uxbridge and South Ruislip, Jul 2023, 46.2%
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Selby and Ainsty, Jul 2023, 44.8%
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Somerton and Frome, Jul 2023, 44.2%
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Rutherglen and Hamilton West, Oct 2023, 37.2%
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Mid Bedfordshire, Oct 2023, 44%
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Tamworth, Oct 2023, 35.9%
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Wellingborough, Feb 2024, 38%
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Kingswood, Feb 2024, 37.1%
Conservative chair Richard Holden has cautioned against extrapolating byelection results to a general election, telling listeners of BBC Radio 4 that “People know in a byelection they’re not voting to change the Government, so I think to extrapolate from that to a general election isn’t quite right.”
He’ll be absolutely furious if he ever finds out what David Cameron was saying when the Conservatives won Norwich North in 2009 …
Steven Morris
Steven Morris is in Kingswood for the Guardian
Labour activists have been in a damp Kingswood park to celebrate their byelection win in South Gloucestershire. Pleasingly – and by sheer coincidence – the spot on the mapping system What3words is “reason anyway vote”.
Pat McFadden, Labour’s national campaign coordinator, said the results in Kingswood and Wellingborough had been “fantastic” and were a “mark of the progress we have made in recent years and stand testament to the desire of voters to see change.”
McFadden said he hoped the Tories would act courageously and call a general election. He said that Keir Starmer had acted “decisively” when he suspended Azhar Ali and contrasted this with “long drawn out Tory scandals” involving Peter Bone and Owen Paterson.
The new Kingswood MP, Damien Egan, said:
The issues people talked about time and time again was the NHS – nowhere in Kingswood can you get an NHS dentist, how hard it is to find a doctor, the cost of living crisis, which is so much more than a slogan – mortgages up by £400 a month, people having to worry about what they put in their trolley, keeping their house warm in winter, families cancelling holidays. Safety on our streets – people want to see police back in our community. The hard work starts now.
Starmer: Labour must fight like they are five points behind in the polls
Keir Starmer says he has told his team that the Labour party must fight for the next general election “like we are five points behind”.
Appearing on BBC Breakfast and asked if he took the Wellingborough and Kingswood victories as a personal endorsement of his leadership, he said “I don’t tend to personalise it. I’m very proud of that result. I’m proud of the work that I’ve done as leader. I’ve changed the Labour Party, and we brought in a very good result last night. I don’t want to get into the warm bath of saying: ‘Job done.’”
The Labour leader then said he had told his team to “fight like we’re five points behind”.
He told BBC Breakfast:
I think the country is crying out for change. Everybody knows that. Things aren’t working. Their NHS isn’t working. They’ve got a cost of living crisis. I think they’ve concluded that the Tories have failed after 14 years.
They can see now the Labour party has changed. It’s a different party to the party in 2019. And they can see that we’ve got the answers to their problems, and I was very pleased last night to see that we were clearly getting Tory switchers, in other words, people who hadn’t voted for the Labour party before coming out last night and voting for the Labour party.
He added: “But I would say this particularly to my team, there is more work to do. There is always more work to do.”
Labour’s Pat McFadden praises ‘fantastic results’ but says ‘real test is to come later this year’
Pat McFadden, Labour campaign manager, has said that the byelection results in Wellingborough and Kingswood were “fantastic results” but that “the real test is to come later this year”.
Speaking from Kingswood, he told viewers of Sky News:
We had a fantastic result last night, overturning a Tory majority of around 11,000 and in Wellingborough an even bigger victory overturning a majority of 18,000. These results are a mark of the progress that the Labour party has made in recent years under Keir Starmer’s leadership. We are back on the pitch in a credible way. So they were fantastic results. But of course, we also know the real test is to come later this year and the general election.
He said Labour’s chance to show what it would do in power “can only come when the prime minister stops sitting in Number 10, waiting for something to turn up, and actually calls the general election that will give people the choice over the country’s future.”
He said that people didn’t need statistics to see that the country was in a poor state. He said “people can see it in terms of the cost of living. They can see it in terms of public services. And they can see it in terms of the difficulty of paying the bills.”
Pressed on what Labour would do differently with the economy, he said:
First of all financial stability: no repeat of that disastrous Tory mini-budget that crashed the economy and put everybody’s mortgages up.
Secondly, change the planning laws to get the economy moving again, making it easier for people to invest in the UK and get Britain building again.
Thirdly, make a success of the green transition. We’re going to set up GB energy, and have a national investment fund to really drive forward this green transition that will give us more energy security and in the long term, reduce people’s bills.
These are the kinds of things that we need to do to get the economy moving again, because without getting economic growth, it is really difficult for people’s living standards to increase. We know the Tories have failed on that.
Here is my colleague Mark Sweney on the news that retail sales in Great Britain rebounded strongly after their Christmas slump.