Related: Chancellor to use ‘Brexit freedoms’ to turn UK into ‘next Silicon Valley’
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The UK faces the worst downturn of any major economy next year and is set for a recession that much of the rest of the world will avoid, according to a new report from the Organization for Co-operation and Development Economic (OECD).
The global economic think tank sharply downgraded its forecasts for the UK economy, forecasting that it will shrink by 0.4 per cent in 2023 and grow by just 0.2 per cent in 2024. As recently as September, he expected that the GDP will be maintained next year.
And he warned of the risk of a deeper downturn if consumers respond to spiraling energy and housing costs by cutting spending, knocking demand out of the economy, while strikes and shortages of labor could raise prices further by fueling wage inflation.
It comes as Sir Keir Starmer accused the government of “shelving UK growth” amid predictions that the UK will face the worst downturn of any major economy next year.
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Rishi Sunak warns MPs about Christmas party spending
Downing Street has warned MPs they will have to justify their spending to voters, after the Independent Parliamentary Standards Authority said politicians could charge taxpayers for the Christmas holiday.
Rishi Sunak “certainly has no intention” of putting food, refreshments and decorations into the expenses, the No 10 told reporters.
“The Prime Minister certainly has no intention of using this and his view is that MPs will want to justify all expenses to their constituents,” his official spokesman said.
Read the full story below:
Thomas Kingsley November 22, 2022 1:20 pm
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John Curtice: What does the autumn budget mean for the next election?
The main aim of Jeremy Hunt’s autumn statement was to reassure financial markets that it was safe to lend their money to the UK government, writes John Curtice. But a crucial secondary aim was to regain voter confidence and thereby reduce Labour’s large lead in the polls.
While the chancellor may have been happy to see financial markets take his statement in stride, he will be disappointed that he failed to persuade voters to return to the Tory fold. Rather, it appears that the modest bounce the Tories enjoyed when Rishi Sunak replaced the hapless Liz Truss as leader has now stalled.
Emily Atkinson November 22, 2022 1:00 p.m
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Ipsa “throwing petrol on the fire” with the MP’s new Christmas party guide
A Labor MP has accused the expenses watchdog of throwing “petrol on the craic fire” after introducing new guidelines allowing MPs to claim their staff’s Christmas party expenses.
Posting on Twitter, Labor MP Charlotte Nichols said: “Sometimes I think IPSA come up with things like this because they don’t think MPs get enough abuse.
“No one asked for this, but what we want is a bigger staff budget and updated staff sickness/maternity policies.”
Emily Atkinson November 22, 2022 12:40 p.m
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Starmer says he has turned Corbyn’s job ‘upside down’
The Labor leader has said he has turned the Labor Party around since Jeremy Corbyn’s leadership.
When asked by an attendee at the CBI conference if the rest of his party was behind his plans, Sir Keir Starmer said: “The Labor Party has changed, we have turned the Labor Party around and that is particularly significant when it comes to the way we work with companies.
“I’m telling you loud and clear, this Labor Party has changed, there’s no going back and it’s united behind what we’re trying to achieve.”
He described his latest party conference as “the best conference we’ve had, frankly, since 1996”, which came ahead of Sir Tony Blair’s landslide general election victory.
Emily Atkinson November 22, 2022 12:20 pm
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“We have to make Brexit work,” insists Starmer
Sir Keir Starmer has said the current trade deal with the EU is “not working well” but has vowed not to return the UK to the single market, saying “we have to make Brexit work”.
He told the CBI conference: “We are not going back to the EU. That means not going back to the single market or the customs union.
“But we have to make Brexit work, the deal the government got us is not working well. It’s holding back business, it’s holding back growth.”
He said getting a “pragmatic response” to making the Northern Ireland Protocol work and reducing trade barriers were areas that could bring improvements.
“I think we can have a better Brexit. I think we have to make Brexit work,” he said.
“I think what has happened so far has been a government that simply said the words ‘get Brexit’ and put in place a deal that I think most people in this room would say is not working well for the business, it doesn’t work well for exports, it doesn’t work well for growth.”
Emily Atkinson November 22, 2022 12:00 p.m
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Starmer refuses to commit to ‘arbitrary’ immigration targets.
Sir Keir Starmer has said he would not commit to “arbitrary” numbers to reduce immigration.
The Labor leader told the CBI conference: “If what is driving the numbers is our skills failure, or one of the big factors is the skills failure, then I think we need to address the issue of skills rather than just talking about arbitrary numbers.
“That means if we do it right, immigration will go down in some of these areas that are too dependent on immigration, but we’re also not going to hold back businesses if there’s innovation, technologies, where we need talent from abroad. .
Emily Atkinson November 22, 2022 11:50 am
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Starmer acknowledges that flagship policies will take a back seat to prioritize stability
Sir Keir Starmer has admitted that flagship Labor policies may have to be put on hold as a result of the economic conditions he would find himself in at No 10.
He told the CBI conference in Birmingham: “We will inherit an economy that has been damaged by the last 12 weeks and the last 12 years, and we have to fundamentally accept that as an incoming government.
“Restoring stability is key. There is a cost to instability and we have been paying that cost over the last few weeks and over the last few years.”
This would mean restoring faith in economic institutions and following clear fiscal rules.
“That stability has to be our first priority. If that means there are things, good Labor things, that we can’t do as quickly as we’d like, that’s a consequence of that security.”
He said “we will have to be responsible” for clearing up the economic mess.
Emily Atkinson November 22, 2022 11:40 am
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Starmer promises a “pragmatic” approach to economic migration
Sir Keir Starmer said Labor wanted a “pragmatic” approach to economic migration while seeking to ensure British workers had the skills needed to fill vacancies.
He told the CBI conference: “Of course we will be pragmatic. Of course we understand that we need to act now to help businesses and drive growth.
“But we have to address and run towards the skills challenge, run towards the challenge of ensuring that everyone gets back into the workforce, because there are hundreds of thousands of people who are now out of work and only a few were working .years ago
“This is, to me, an economic argument, not a push for political tactics.”
Emily Atkinson November 22, 2022 11:30 am
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Unions must be a crucial part of the labor partnership, says Starmer
Sir Keir Starmer told businesses that unions “must be a crucial part of our partnership”.
After telling the CBI conference that the relaxation of immigration rules “will come alongside new conditions for business”, the Labor leader said: “We can talk about how that is done, dialogue is at the heart of the partnership But the negotiation with the unions will be part of it.
“I said at the TUC conference that my Labor Party is unashamedly pro-business. And I say here today that trade unions must be a crucial part of our partnership.
“Our common goal must be to help the British economy wean itself off its dependence on immigration.”
Emily Atkinson November 22, 2022 11:20 am
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Dominic Raab’s behavior ‘forced an apology from top Whitehall official’s staff’
Justice Secretary Dominic Raab acted so badly at a meeting that a senior Whitehall official had to apologize later for his behaviour, it has been claimed.
The cabinet minister is already being investigated following two formal complaints about his alleged behaviour, with allegations that government staff were “afraid” to enter his office.
The minister under pressure acted “poorly and inappropriately” in a meeting with the Home Office earlier this year, Whitehall sources told The Guardian.
Emily Atkinson November 22, 2022 11:13 am