Sebastian Payne

Five solutions for avoiding cuts to tax credits

From our UK edition

While the Tories are still thinking about how to solve their tax credits quandary, the Resolution Foundation has come up with a simple solution: the cuts need to be reversed. In a new report out today, the think tank says any of the proposals for ‘lessening the impact of families during the transition’ (in the words of George Osborne) — such as tax cuts, childcare support, raising the minimum wage, gradually introducing the reforms and new measures to protect existing claimants – are still going to hit low-income families hard and the only way of helping them is to reverse the most punitive elements of cuts. Instead, the Resolution Foundation suggests five ways to raise the funds so the cuts don't need to happen.

Podcast: civil war in the Catholic church

From our UK edition

Are Pope Francis’ reforms and pronouncements risking a civil war within the Catholic church? On the latest View from 22 podcast, Damian Thompson and Fraser Nelson discuss this week’s Spectator cover feature on the Pope vs. the church. How concerned should Catholics be about the Pope’s wild statements? Is the church pining for the days of Pope Benedict? Is the Catholic church on track to lose its unity? And how split is the Synod over Pope Francis? Isabel Hardman and Fraser Nelson also discuss whether MPs will ever vote to bomb Syria. Does David Cameron regret losing the Commons vote in 2013 and does he remain determined to put it right?

No.10: all British flights from Sharm are delayed due to security checks

From our UK edition

Following the plane crash in Siani this weekend, Downing Street has just announced all flights set to depart from Sharm to the UK have been delayed so further security checks can be undertaken. In a statement, No.10 says David Cameron spoke to President Sisi yesterday evening to discuss ensure there are ‘tightest possible security arrangements at Sharm el-Sheikh airport’. Both sides appear to think the plane was subject to an explosion: ‘While the investigation is still ongoing we cannot say categorically why the Russian jet crashed. But as more information has come to light we have become concerned that the plane may well have been brought down by an explosive device.

Jeremy Hunt offers junior doctors an 11% pay rise and pleads with them not to strike

From our UK edition

It’s a season of U-turns for the government as Jeremy Hunt will reportedly offer junior doctors an 11 per cent pay rise. In an attempt to head off strike action by the British Medical Association, who are balloting 45,000 junior doctors today, the Health Secretary will make a final offer to increase to their basic pay in an effort to compensate for cuts to overtime. In an article for ConservativeHome, Hunt says the new deal is vital for delivering a seven-day health service and junior doctors should acknowledge this manifesto commitment and work with the Department for Health to see through the changes: ‘A reduction in Saturday working rates will be offset by an 11 per cent increase in basic pay, which will mean doctors’ pensions pots also go up.

John Bickley is Ukip’s candidate in Oldham West & Royton by-election

From our UK edition

Ukip has plumped for John Bickley as its candidate in the upcoming Oldham West & Royton by-election, following the death of Michael Meacher. Although other names were in the frame, Bickley was the natural choice — he came very close to winning in the nearby seat of Heywood & Middleton in a by-election last year. Ukip HQ will be hoping Bickley can use his local following to, at the very least, increase the party's vote share. In the 2015 general election, Ukip received 20 per cent of the vote, a 17 per cent increase since the 2010 election. But Ukip still has an almighty challenge to win the seat: Labour won Oldham West with a 14,738 majority in May and the seat has been held by the party for over 40 years.

George Osborne adds meat to Britain’s EU reform demands

From our UK edition

George Osborne is speaking in Germany today, where he will apparently tell a business conference that Britain does not want ‘ever-closer union’ and the other EU member states will have to respect and work with this, if they don’t want to see a Brexit: ‘Remain or leave, is the question our democracy has demanded we put because, quite frankly, the British people do not want to be part of an ever-closer union. ‘We want Britain to remain in a reformed European Union, but it needs to be a European Union that works better for all the citizens of Europe - and works better for Britain too. It needs to be a Europe where we are not part of that ever closer union you are more comfortable with.

Questions unanswered over No.10 special treatment for Kids Company

From our UK edition

Did Kids Company receive preferential treatment and funds because it was the ‘favoured’ charity of the Prime Minister? This was the key question put to two senior civil servants at the Public Accounts select committee this afternoon — and naturally, their answers were evasive. Richard Heaton, formerly the permanent secretary at the Cabinet Office, said ‘I was aware it was prime minister's favoured charity' but there was no smoking gun that it received any ‘special treatment’ — Heaton said he 'didn't see anything unusual in the correspondence' — although the definition of what counted as special treatment was pulled apart throughout. It remains to be seen how this preference was known.

Maria Eagle: Scottish Labour’s vote on Trident won’t dictate Labour’s national policy

From our UK edition

24 hours after Scottish Labour voted to oppose renewing Trident, the party's policy is firmly where it was before this weekend's conference. On the World at One, the shadow defence secretary Maria Eagle thanked the Scottish Labour conference for their thoughts and said their vote won’t be changing Labour’s policy: ‘I welcome the input of Scottish Labour and its conference into our internal debate, they’re one of many important voices that there are across the Labour movement about this issue. ‘But let’s very clear about what this does and does not mean. This does not change our policy. Defence isn’t a devolved matter, so Labour party policy has to be set at a national party level, at a UK level.

Diane Abbott: UK-wide Labour will also oppose Trident

From our UK edition

Jeremy Corbyn said he wanted Labour to have an open debate about the big issues and he's certainly got that. Yesterday, 70 per cent of the Scottish Labour conference voted for a motion opposing the renewal of the Trident independent nuclear deterrent — putting the party's policy north of the border at odds with Labour as a whole. Although there was a motion tabled at Labour's Brighton conference to debate Trident, it never reached the floor and the policy backing nuclear weapons remained intact. Plus, Scottish Labour leader Kezia Dugdale is in favour of Trident, while Corbyn is thought to be against. Such votes have happened in the past at Scottish Labour conferences and have usually been ignored.

The public oppose the tax credit cuts, according to a new poll

From our UK edition

Voters support reducing the size of the welfare state but not necessarily through cutting tax credits. According to a new poll from ComRes and the Daily Mail, just under half back ‘reducing the size of the welfare state’ but 58 per cent oppose cutting tax credits for working people, while a similar percentage also oppose making part-time workers on tax credits do more hours. But in better news for George Osborne: a huge 90 per cent back increasing the minimum wage to £9 an hour. According to the poll, one in five of those polled said that tax credit shouldn’t be cut and that the deficit should be reduced at a slower rate instead.

The two faces of Corbynism and why Labour is hiring controversial advisers

From our UK edition

There are two faces to Corbynism. Jeremy Corbyn and John McDonnell are doing everything they can at the moment to appear reasonable, not radical, but behind the scenes they are starting to stuff their offices with figures from the hard left. Look at their hiring of advisers such as Andrew Fisher and former Guardian columnist Seumus Milne. This week, two other names are being mooted as new advisers that again show where Corbyn and McDonnell really want to take the party. The first is Karie Murphy, one of the central figures in the Falkirk scandal.

What can George Osborne do to fix the tax credits mess?

From our UK edition

The government needs to get thinking quickly about a new tax credits proposal that is acceptable to the Commons and the Lords. George Osborne will deliver his Autumn Statement in four weeks' time and he has promised to outline the results of his ‘listening’ exercise. This afternoon’s debate on a backbench motion about the cuts showed that Conservatives support phasing out tax credits, but the main concerns expressed were over the speed of the transition. Notably, 20 Tory MPs supported the Labour motion criticising the cuts — including Bernard Jenkin, Jacob Rees-Mogg and Heidi Allen.

Chilcot Report will be published in June or July 2016

From our UK edition

Finally, Sir John Chilcot has announced when his inquiry into the Iraq war will arrive. He has written to the Prime Minister this morning to say the findings of his inquiry will be published in June or July next year. After years of increasing pressure from the public and government, Chilcot says the text will be finished the week commencing 18 April 2016 and the report will then be checked by national security staff. When it finally arrives, it is going to be a long read: 'The very considerable size of our report – more than two million words in total — means it will take some weeks to prepare the report for printing and publication.

Kids Company given an ‘unbelievable’ £46 million in taxpayers’ money, despite repeated warnings

From our UK edition

The Kids Company web of intrigue is slowly being untangled. A report from the National Audit Office reveals that despite repeated warnings from civil servants, £46 million was given to the charity over 15 years - from the Department for Education, local councils and lottery funds. It appears there was little auditing of where these funds were being used, instead relying on Kids Company's self assessments. The money used to prop up the charity had an impact elsewhere: in 2008, it received 20 per cent of all the grant funding available from the DfE - leaving the rest to be split among 42 other charities. And in 2011, Kids Company received more than twice the amount than any other charity. Although the sums are huge, it was the ignored warnings that are the most troubling.

Watch: Robert Rogers, former Clerk of the Commons, defends Lords over tax credits

From our UK edition

Lord Lisvane, better known as Sir Robert Rogers, thinks the talk of a constitutional crisis over tax credits is overblown. Having served in the House of Commons for over 40 years, most recently as Commons’ Clerk until he retired last year, he is one of the few people who fully understands the relationship between the Lords and the Commons. Speaking to Coffee House, Lisvane explains this is business as usual: ‘I think there has been a great deal of hyperbole. The regulations that the Lords considered on Monday were required to be laid before the Lords as well as the Commons under Tax Credits Act 2002 and the Lords considered them. They came to a view the government didn’t like that much’.

Mr Cameron goes to Reykjavik

From our UK edition

David Cameron is off to Iceland today to give a speech on Britain’s European Union membership and it’s a clear signal that he will eventually campaign for Britain to remain in. Until now, the Prime Minister has avoided talking about why Britain should 'Remain' or 'Leave' the EU — instead focusing on the importance of the renegotiations. His argument will be based on Iceland and Norway, who are members of the European Economic Area — which allows them to trade inside the single market. According comments from No.10 sources, Cameron will warn this means they have less control over decision making in Brussels and this kind of looser relationship would not be right for Britain.

John McDonnell vs. George Osborne on tax credits: a surprisingly calm and serious affair

From our UK edition

George Osborne and John McDonnell went head-to-head at Treasury Questions today and one topic predictably dominated: tax credits. There was a charged atmosphere in the Commons as the shadow chancellor explained ‘the Chancellor has a choice before him’ and outlined his proposal for reversing the planned cuts to tax credits. The plan differs somewhat from Osborne's: ‘He can push on with the tax giveaways to multinational corporations. He can press on with tax cuts to the wealthiest few in inheritance tax that he announced in his summer budgets.

Chris Grayling: we’ll figure out how to take a measured approach with the Lords ‘in the next few hours’

From our UK edition

After the government’s humiliating defeats in the House of Lords yesterday over tax credits, how will it seek revenge on the upper chamber? Chris Grayling, the Leader of the House of Commons, spoke on the Today programme about the government's plans. On tax credits, he said ‘the Chancellor is clear, he will look again at the transitional arrangements’. But on the relationship between the Commons and the Lords, Grayling said a more careful approach would be taken — one that will be worked out ‘in the next few hours’: 'The first thing not to do is to react on the hoof to this. We have to have a measured look at what the Lords has done, what the constitutional arrangements have been, what they need to be.

Bernard Jenkin: a sugar tax would help soften tax credits blow

From our UK edition

George Osborne and the government are apparently in ‘listening mode’ about tax credits and Bernard Jenkin has something to say. The Tory chair of the Public Administration select committee has a novel proposition for how to fund a way to soften the blow of the cuts. In my piece for Politico Europe today, Jenkin tells me: ‘I think Osborne should carry on with the cuts but ameliorate the introduction for those worst affected. It would show he is listening and compassionate If he needs the extra revenue and cannot find other short-term savings, he should be considering the Sugar Tax.’ The idea of a tax on sugary foods and drinks has been advocated by the celebrity chef Jamie Oliver but No.10 have already dismissed it.

Nicky Morgan and Lucy Powell pointlessly square off over childcare and tax credits

From our UK edition

Nicky Morgan and Lucy Powell appear to be the most ill-tempered pair regularly going head-to-head at the Dispatch Box. At Education Questions today, Powell asked about the government’s childcare plans and how it intends to help those who's tax credits will be cut. Morgan answered by going on the attack: ‘I would believe the honourable lady’s concerns just a little more if it hadn’t been for her party’s peers in the other place, who voted against the Childcare Bill last week and delayed the introduction of the bill and the new scheme’. ‘Perhaps they wouldn’t have done that if she had adequate funding in place?’ Powell hit back.