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Starmer warns ‘no quick fix’ for UK as he faces pressure over child poverty and benefits – politics live


Starmer sets up ministerial taskforce on child poverty, saying failure to tackle its causes has been ‘completely unacceptable’

Downing Street has announced that Keir Starmer has set up a ministerial taskforce to develop a child poverty strategy. It will be led by Liz Kendall, the work and pensions secretary, and Bridget Phillipson, the education secretary.

In a news released explaining how this will work, No 10 says:

A new child poverty unit in the Cabinet Office – bringing together expert officials from across government as well as external experts – will report into the taskforce. The new unit will explore how we can use all the available levers we have across government to create an ambitious strategy.

Recognising the wide-ranging causes of child poverty, secretaries of state from across government will take part in this work, with the first meeting set to take place in the coming weeks.

In the immediate term, the taskforce is expected to consider how we can use levers related to household income as well as employment, housing, children’s health, childcare and education to improve children’s experiences and chances at life.

It also says that Kendall met organisations this morning to discuss child poverty, including Save the Children, Action for Children, Barnados, the TUC, End Child Poverty Coalition, the Resolution Foundation and Unicef. Kendall posted a picture from the meeting on X this morning.

This morning I convened experts and campaigners on child poverty to start work immediately on a new, ambitious child poverty strategy.

We will work every day across government to reduce child poverty and give every child the best start in life. pic.twitter.com/oP2SAkoNxh

— Liz Kendall (@leicesterliz) July 17, 2024

In a statement quoted in the news release, Keir Starmer says:

For too long children have been left behind, and no decisive action has been taken to address the root causes of poverty. This is completely unacceptable – no child should be left hungry, cold or have their future held back.

That’s why we’re prioritising work an ambitious child poverty strategy and my ministers will leave no stone unturned to give every child the very best start at life.

Presumably all the organisations Kendall consulted this morning told her the government should abolish the two-child benefit cap, because in the sector there is almost universal agreement that this is one of the single biggest measures that would make a difference to child poverty. The tasforce is certain to hear this message too.

Although ministers are still refusing to commit now to getting rid of the two-child benefit, because they cannot say yet how they would fund this, it is hard to imagine the government refusing to budge on this for another year given how strongly many Labour MPs feel about this.

Key events

Starmer appoints two influential leftwing critics as government advisers

Keir Starmer has drafted into government two leftwing critics of his stance on benefits and green investment, as the prime minister faces pressure to drop Labour’s cautious approach to reviving the economy, Richard Partington reports. He says:

Carys Roberts, the influential director of the Institute for Public Policy Research thinktank, has joined Downing Street’s policy unit as a special adviser, while Rachel Statham, who headed the IPPR’s work on public services, has been hired to lead his policy unit’s work on childcare, the early years and education.

Roberts had been among leading figures behind Labour’s now-scrapped pledge to spend £28bn a year on green investment.

Richard’s full story is here.

Larry Elliott, the Guardian’s economics editor, has filed his take on the king’s speech. He says two of the main measures are the bills on planning and employment rights. “Both have the advantage of potentially being transformative without costing the government serious amount of money,” he says. He explains:

Planning reform is seen as key to unlocking the door to faster growth. There will be national targets for housebuilding and a national strategy for infrastructure. The planning system will be reformed and streamlined. Democratic engagement will be about where, not if, new homes and infrastructure are built. This top-down approach is almost certain to be tested in the courts and is at odds with Labour’s separate plans to devolve more power to local authorities and metro mayors. It might not be universally popular in some of Labour’s newly won seats in the leafy shires either.

Business likes the sound of planning reform but is less keen on the employment rights bill, which will ban exploitative zero-hours contracts, end fire and rehire, provide a range of employment rights from a worker’s first day in a new job, and make it easier for trade unions to organise and operate.

Employers have expressed concern that the reforms will make the labour market less flexible. The government’s argument is that flexibility has not resulted in higher productivity or strong real wage growth, and that the changes will lead to companies being encouraged to invest more in new labour-saving equipment and in training.

Larry’s full article is here.

Priti Patel, the former home secretary, will definitely stand as a candidate in the Conservative leadership contest, Sky News has reported. Speaking in the Commons in the king’s speech debate, she said the Tories should be proud of their record in key areas. She said:

Much was advanced over the last 14 years and we’re proud of our record and the transformation that we led, including of public finances.

These are big things that don’t just happen over a few months and weeks, we’re proud we transformed the public finances from the government borrowing £1 in every £4 to a much better fiscal position today. It’s not easy to get into these fiscal positions and I think the benches opposite should just reflect in terms of the fiscal position they’re now inheriting.

Pension scheme shake-up may add £11,000 to retiree savings

The more than 15 million people who save into workplace pension schemes in the UK may benefit from a shake-up in the king’s speech designed to add £11,000 to the average retiree’s savings, Hilary Osborne reports.

This is from Nigel Farage, the Reform UK leader, on the king’s speech.

Labour’s King’s Speech is just more big state with the assumption that government can create wealth.

— Nigel Farage MP (@Nigel_Farage) July 17, 2024

Labour’s King’s Speech is just more big state with the assumption that government can create wealth.

Nigel Farage walking to the Lords to listen to the king’s speech. Photograph: WPA/Getty Images

And this is from Richard Tice, the deputy leader.

This Govt programme will lead to:
💥higher taxes
💥more bureaucracy
💥more regulation
💥more immigration
💥more expensive energy
My Boston & Skegness constituents will become poorer along with everyone elsepic.twitter.com/vlO0M2GgMA

— Richard Tice MP 🇬🇧 (@TiceRichard) July 17, 2024

This Govt programme will lead to:
💥higher taxes
💥more bureaucracy
💥more regulation
💥more immigration
💥more expensive energy
My Boston & Skegness constituents will become poorer along with everyone else

The party has not sent out a full press release about the announcements.

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The government has confirmed that no further cash will be sent to Rwanda as part of the deportation deal signed by the last government.

As PA Media reports, asked about an additional £100m which had been due to go to Rwanda as part of the previous Tory government’s asylum scheme, the prime minister’s spokesperson told reporters:

Yes, we are clear that that money won’t be sent to Rwanda.

We’ve been very clear that the partnership with Rwanda has finished.

The home secretary’s going to provide an update shortly after she’s analysed all the details around both the money, the legislation and the processes.

We’re clear we will repeal the Safety of Rwanda Act, we will terminate the agreement.

Yvette Cooper’s update will also analyse “the existing legislation and how it interacts with the new legislation”, he said.

Health leaders hail Labour’s plans to phase out smoking as ‘gamechanging’

The government’s plans to introduce the world’s first full smoking ban, halt sales of energy drinks to children and modernise mental health laws are “gamechanging” and will save thousands of lives, health leaders have said. Andrew Gregory has the story.

In the Commons Stephen Flynn, the SNP leader at Westminster, said he was “disappointed” that abolishing the two-child benefit cap did not feature in the king’s speech. He told MPs:

This is a policy – an iniquitous, heinous policy – which was introduced by the former Conservative government in 2015.

Each and every one of us in this chamber knows that it retains children in poverty – hundreds of thousands of children across these isles.

In Scotland alone, it impacts 27,000 households. It’s estimated that 14,000 children would immediately be taken out of poverty were it to be scrapped, but it was not mentioned in the government’s programme for government today.

Instead, all we have heard is that a taskforce is going to be created – no timeframe for that taskforce, no indication of when that taskforce will conclude, and all the while, those children will remain in poverty.

Truss complains to cabinet secretary about No 10 briefing describing botched mini-budget as ‘disastrous’

The former prime minster Liz Truss has complained that her mini-budget is described as “disastrous” in the Downing Street briefing pack giving details of the bills in the king’s speech.

In a letter to Simon Case, the cabinet secretary, she said:

It has been brought to my attention that the king’s speech background briefing notes published today and available online contain repeated references personally to me and actions undertaken by my government in the context of a political attack.

Not only is what is stated in the document untrue, making no reference to the LDI [liability driven investment] crisis precipitated by the Bank of England’s regulatory failures; but I regard it as a flagrant breach of the civil service code, since such personal and political attacks have no place in a document prepared by civil servants – an error made all the more egregious when the attack is allowed to masquerade in the document among ‘key facts’.

There is no government announcement in recent history, perhaps in all history, that has backfired as badly, economically and politically, as the mini-budget announced when Truss was prime minister. The financial markets were alarmed by the proposed £45bn unfunded tax cuts, borrowing costs started to soar and within days the Bank of England had to mount a multi-billion rescue effort to stop pension funds collapsing. Soon afterwards Truss started to ditch some of the measures. But the first big U-turn, and replacing her chancellor with someone willing to junk almost all the mini-budget measures, was not enough to restore her credibility and she was forced to resign.

The rise in interest rates led to a big rise in mortgage rates and Labour is responding by passing a law saying government will always have to consult the Office for Budget Responsibility when announcing significant tax changes – something Truss refused to do because she knew the OBR would criticise the mini-budget measures.

In its notes on the budget responsibility bill, the government says:

The ‘fiscal lock’ is intended to capture and prevent those announcements that could resemble the disastrous Liz Truss ‘mini budget’, announced on 23 September 2022, which would have cost £48bn per year by 2027/28, and was not subject to an OBR forecast and damaged Britain’s credibility with international lenders.

The Cabinet Office has not yet responded to Truss’s letter, but Truss will have a hard job persuading Case that she has been wronged. Although some economists argue that the mini-budget was not the only factor driving up borrowing costs at the time, and the impact on mortgage costs did not last, it has hard to find anyone at Westminster who does not regard the mini-budget as disastrous.

Truss can no longer complain as an MP. She had a majority of more than 24,000 in South West Norfolk, but lost it on a swing to Labour of 26%.

Theo Bertram, who worked as an adviser in Downing Street in the last Labour government and who now runs the Social Market Foundation thinktank, has posted a message on X saying he cannot see the point of the announcement this afternoon about the child poverty ministerial taskforce. (See 3.09pm.)

Hard to work out logic of this
-Distracts from King’s Speech
-Undermines No10 credibility: wobble at 1st rebellion
-A child poverty taskforce can only conclude 2 child cap must go (& cld do so immediately)
-Does it buy time? Yes but at cost of starting countdown clock on U-turn https://t.co/S0w83gDFPJ

— Theo Bertram (@theobertram) July 17, 2024

Hard to work out logic of this

-Distracts from King’s Speech

-Undermines No10 credibility: wobble at 1st rebellion

-A child poverty taskforce can only conclude 2 child cap must go (& cld do so immediately)

-Does it buy time? Yes but at cost of starting countdown clock on U-turn

That prompted this reply from the writer and policy expert Sam Freedman.

I’ve never understood the point of turing this into a fight. No way it could ever hold.

Bertram replied:

The campaign logic was combination of:

1. threat of Tory attack on where £3.5bn spending commitment would come from

2. public opinion against it

3. fear of loss of credibility with markets

Some of those fears have clearly diminished now

And Freedman replied:

Agreed – but they could have been clearer they wanted the policy to go and removing it would be a priority when finances allowed.

Ed Davey, the Liberal Democrat leader, is speaking now. He says, as MPs campaigned during the election, they heard constant complaints about nothing working. The public overwhelmingly rejected the Tories, he says.

But he says the scale of the problem is huge.

He says the Liberal Democrats will tell the government when they think it is wrong, but that if what it is doing is right, they will support it.

Starmer says he wants everyone, no matter where they started in life, to feel that success can belong to them.

The DUP’s Jim Shannon asks what Starmer’s plan is for Northern Ireland.

Starmer says it was important to him to go to Scotland, Wales and Northern Ireland within days of becoming PM. He says he worked on reforming the police service in Northern Ireland. He says it matters to him.

Getting back to the king’s speech, he says the government will reform the NHS and schools.

And he confirms his intention to halve violence against women and girls. He refers to how inspired he was by the story of the parents of Jane Clough, who was killed by an ex-partner. He met them when he was director of public prosecutions, and he says their story brought home to him what public service can achieve.

Starmer says the government will serve everyone, whether they voted Labour or not.

And, addressing opposition MPs, he says, if they are invested in their areas, he will work with them in the best interests of those places. That is what service means, he says.





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