Politics Archives

Thursday

22 June 2023

Labour must resist jumping on the mortgage bail-out bandwagon

Millions of potential voters in marginal constituencies face punishing rises in their mortgage repayments over the coming months and years. The government is in disarray on the issue and is largely to blame for the mess. Labour has spied an opportunity to hammer the Conservatives: it is talking about a ‘Tory mortgage penalty’ and shadow chancellor Rachel Reeves is jumping on the bandwagon clamouring for mortgage payers to get help. But, if Labour goes too far in its demands, it could pay a heavy price. With inflation stubbornly high, and the Bank of England rapidly losing credibility, mortgage rates are soaring. A two-year fixed rate that cost less than 2

Steerpike

Welsh Labour’s Extinction Rebellion plans

Trawling through his emails, Mr S was struck by one that leapt out by dint of its sheer audacity. Extinction Rebellion, those great unwashed types, are now openly bragging about their access to Labour government ministers in Wales. In one such recent update from their political engagement team, they wrote to supporters to crow that they are now seeing ‘the Climate Change Minister on a quarterly basis. At our last meeting she told us that a national Citizens Assembly was out of the question for financial reasons.’ Financial reasons? Not, er, democratic ones? Steerpike has asked around and it transpires that the Welsh government is currently investigating whether there is

Freddy Gray

Joe Biden’s Hunter problem will not go away

Shall we play a game of pick the real criminal? Come on, it will be fun. On the one hand, we have a 77-year-old man, a former president and a billionaire, whose Gollum-like greed caused him to hoard various boxes of classified documents which he should have returned to the proper authorities. He, or his associates, also fudged various business records possibly to cover up ‘hush money’ payments he made to a porn star. Oh, and he had a massive tantrum about losing an election, tried to overturn the result, and his shenanigans caused some of his supporters to breach the Capitol building in Washington on 6 January, 2021. On

Wednesday

21 June 2023

Stephen Daisley

Emmanuel Macron should sink more pints

Civilisation’s last line of defence runs through the Élysée Palace. Emmanuel Macron has been lambasted by his opponents for necking a beer with Toulouse rugby players to celebrate their victory over La Rochelle in the Top 14 final. The video of le Président chugging down the offending brew has got mustard up the noses of French legislators across the political spectrum. The Times reports that Socialist senator Laurence Rossignol condemned Macron for ‘a macho cliché’ while Gilbert Collard, an MEP for the far-right Reconquête, dismissed Macron’s actions as ‘showing off’. Green deputy Sandrine Rousseau accused the president of engaging in ‘toxic masculinity’. Far be it from me to tell my granny how to

Lloyd Evans

Keir Starmer falls flat at PMQs

Sir Keir Starmer had two goals at PMQs. He wanted to convince us that life is dreadful and it’s all Rishi Sunak’s fault. And he showcased a new phrase that he’d like us to spout whenever interest rates are mentioned: ‘Tory mortgage penalty.’ He used it several times which suggests that he authored it himself. Clearly it stands zero chance of working its way into our heads. But no one at Castle Starmer had the guts to tell the good knight that he’d blundered. Rishi didn’t hold back. Normally the PM glides like a swan through PMQs but today he snapped irritably at Sir Keir for failing to understand that

John Curtice

Nicola Sturgeon’s popularity has plummeted in Scotland

A lot has happened in the last fortnight of Scottish politics, most notably the arrest of Nicola Sturgeon. This development has not passed voters by. Though support for Scottish independence remains steady, the reputation of former First Minister Nicola Sturgeon has taken a substantial knock. Meanwhile, the threat posed by Labour to the SNP’s dominance of the country’s politics may now be even greater. These are the key messages from two new polls that provide us with the first glimpse of the public mood north of the border in the wake of Sturgeon’s arrest. One poll, from Savanta, started its polling a few days before the former First Minister was

Andy Meyer

The UK still needs fossil fuels, whether activists like it or not

The Supreme Court is hearing a case today that, if successful, could mean the end of new fossil fuel projects in the UK on climate grounds. The justices will decide whether to reverse approval for oil extraction at Horse Hill based on downstream emissions from the use of the oil. Whatever the outcome, this case is a damning indictment of the UK’s absurd climate laws. This is a long-running affair. Horse Hill was first test drilled in 2012 and permitted by Surrey County Council to expand to a commercial scale in 2019. This is the teeth of opposition from local campaigners, including the Weald Action Group, Friends of the Earth, and

Matthew Lynn

Rishinomics isn’t working

Tax rises would bring debts under control. The Bank of England would bring inflation back down again. The government would steadily win back the confidence of the financial markets, repair relations with the EU, remove some of the obstacles to growth and, once all that was in place, try and cut a minor tax or two. When he became Prime Minister, Rishi Sunak promised a very orthodox, centrist economic programme, and one that would have the full backing of the IMF, the financial markets and just about every respectable commentator. There is just one problem, however, and it is not exactly a minor one. It is failing, and failing badly.

Katy Balls

The by-election that should most worry ministers

When the political cabinet met on Tuesday, by-elections were on the agenda. The Prime Minister is facing four of them. David Warburton, suspended from the party last year over a sex and cocaine ‘sting’, is the latest to step down. On 20 July the Tories will try to defend his constituency of Somerton and Frome, Boris Johnson’s old seat of Uxbridge and South Ruislip and Nigel Adams’s Selby and Ainsty. Despite announcing she was also quitting on social media, Nadine Dorries is taking her time to trigger a vote in Mid Bedfordshire – and the whips’ office is assuming that she may hang on all the way to the next

Kate Andrews

Home truths: the crushing reality of the mortgage crisis

In December Jeremy Hunt hosted a mortgage summit, attended by lenders and the Financial Conduct Authority, to discuss rate woes. At the time, the numbers were at least moving in the right direction. During Liz Truss’s 49-day premiership, the FCA expected interest rates to rise to 5.5 per cent, an increase which was forecast to put 570,000 people into mortgage payment difficulty. Once Rishi Sunak and Hunt undid Truss’s mini-Budget, things looked calmer: a 4.5 per cent peak was expected, and 356,000 people were due to be in difficulty. Hunt was still struck by the figure. Horribly high, he thought. The Chancellor used the meeting to lay the foundation for

Freddy Gray

Is it the end of Silicon Valley?

39 min listen

Freddy Gray speaks to Joel Kotkin who is the author of The Coming of Neo-Feudalism: A Warning to the Global Middle Class. On the podcast, they discuss the collapse of Silicon Valley. With mass layoffs in the tech sector and a post-pandemic real estate downturn, Kotkin argues the Valley is entering a period of long-term decline – but can it come back from this? Produced by Natasha Feroze.

Isabel Hardman

Rishi Sunak borrows from George Osborne’s playbook at PMQs

Rishi Sunak had a much better Prime Minister’s Questions than he might have expected, given the worrying economic news this morning. The Prime Minister sometimes turns up with too much, over-caffeinated energy. Sometimes he tries to defend his government with attacks on Labour that don’t sound as though he came up with them himself. But today he was confident and repetitive as he argued that the strategy he and Chancellor Jeremy Hunt were pursuing was the right one. Keir Starmer led on inflation, quoting Conservative MP Lucy Allan’s warning that the country was facing a ‘mortgage catastrophe’. He asked if Sunak agreed with Allan. The PM replied: ‘It is also

Natasha Feroze

Could Britain turn into a stagflation nation?

10 min listen

Natasha Feroze speaks to Kate Andrews and Katy Balls about today’s inflation figures, stuck at 8.7 per cent despite predictions it would fall. As a flagship policy of Rishi Sunak’s to half inflation, what options does the Prime Minister have?

Joe Wallen

Imran Khan: The conspiracy against me

Pakistan is familiar with political unrest. No prime minister in its independent history has completed a full term in power; some of its most popular leaders have been assassinated or executed. Even so, the events of last month were extraordinary. On 9 May, in response to the arrest of former prime minister Imran Khan on corruption charges, thousands of protestors stormed buildings belonging to the country’s all-powerful military and set the army headquarters alight. More than 40 people died in the clashes with the army and police, and approximately 10,000 officials and supporters of Khan’s party, Pakistan Movement for Justice (PTI), were arrested. The country was on the edge of

Georgia L. Gilholy

Germany can’t continue to ignore Polish pleas for war reparations

The Nazi occupation of Greece decimated its finances, left hundreds of thousands of civilians dead and all but destroyed the country’s ancient Jewish communities. Some Greeks, including the country’s former president Prokopis Pavlopoulos, think Germany should pay reparations. At the feet of the Parthenon last week, a cache of lawyers met to discuss the pressing need for Greece and Poland, another erstwhile victim of the Nazi yoke, to receive its dues. Germany, so far, is playing hardball. This month’s conference was the culmination of a coordinated six-year effort to open up direct avenues of inquiry with the German government regarding Nazi-era reparations – an avenue Athens itself tried and failed

Michael Simmons

Sunak’s debt target is slipping out of reach

Threadneedle Street will have all the economic limelight this week as the Bank of England sets interest rates tomorrow. With this morning’s grim inflation update, a rate rise looks all but certain. But this morning, the Office for National Statistics (ONS) released an update on Rishi Sunak’s third pledge: to get debt falling. The figures show another target quickly escaping Sunak. Public sector borrowing in the month to May rose to some £20 billion, almost £11 billion more than the same month last year. That makes it the second most expensive May on record. Meanwhile, in the first couple of months of this financial year, the government borrowed just under

Kate Andrews

Britain risks turning into a stagflation nation

Inflation figures out this morning make for grim reading: the headline rate didn’t budge, sticking at 8.7 per cent on the year in May. Far worse, core inflation (which excludes food and energy) rose once again, to 7.1 per cent on the year in May, up from 6.8 per cent in April. This latest update from the Office for National Statistics carries far more weight than your usual monthly report. With mortgage costs spiralling into a crisis, the Bank of England will have been looking for any excuse to stick to a dovish interest rate hike or to even hold rates, as the Federal Reserve did last week for the first time

Andrew Tettenborn

Humza Yousaf’s troubling plan for an independent Scotland

Even with Nicola Sturgeon politically hors de combat, Scotland’s first minister Humza Yousaf has made it clear he intends to forge ahead with her plans to hold a second independence referendum. The Scottish government has produced its blueprint for the future constitution that could flow from such an independence vote. Any voter contemplating taking up Humza’s offer and voting Yes in a possible Indyref2 would do well to read this document closely. They could be letting themselves in for a great deal more than they thought. Put simply, the plan is to make the SNP’s soft-left Bruntsfield-style ideology an almost irremovable feature in Scottish public life. A lot will be familiar. The incredibly generous

Nigel Jones

Biden is right: China’s Xi is a ‘dictator’

Just as a stopped clock shows the correct time twice a day, so president Joe Biden, amidst the plethora of gaffes that regularly issues from his lips, occasionally utters the plain and unvarnished truth. So it was at a Democratic fundraiser in California yesterday when Biden called China’s president Xi Jinping ‘a dictator’. Explaining why he gave the order to shoot down a Chinese spy balloon that entered US airspace in February, the president said that Xi had been ‘embarrassed’ because the balloon had been blown off course and ‘he didn’t know it was there’. US diplomats, like secretary of state Anthony Blinken (who has just inconclusively met Xi in

Tuesday

20 June 2023

Lucy Dunn

Rebel backbencher creates trouble for the Scottish government

Scottish government minister, Lorna Slater, has managed to survive a vote of no confidence tabled by Conservative MSP Liam Kerr. The circular economy minister, and co-leader of the Scottish Greens, has faced heavy criticism for her handling of Scotland’s controversial deposit return scheme in recent months. To make matters worse, hours before politicians voted on Kerr’s motion, Slater was this afternoon forced to admit that the company running the scheme, Circularity Scotland, had appointed administrators. Though Slater saw off the vote, with 55 MSPs voting for the motion while 68 voted against it, her reputation did not escape unscathed from the rather unedifying debate. The anger at deposit return scheme-related