Britain’s economy shrank unexpectedly in October as consumers held back on spending before Rachel Reeves’s budget, and car manufacturing struggled to recover from the cyber-attack on Jaguar Land Rover.
Figures from the Office for National Statistics (ONS) showed gross domestic product fell by 0.1%, after a 0.1% drop in output in September. City economists had predicted a 0.1% rise in October.
Mark Rowley says capital is a safe city, and claims of no-go areas are ‘completely false’
Members of the House of Lords have proposed “totally unnecessary” and “very cruel” amendments to the assisted dying bill in a bid to scupper it, Kim Leadbeater, the MP leading the campaign for the legislation, has said. Kiran Stacey has the story.
I have beefed up the post at 9.08am to include the direct quote from Wes Streeting about not being able to guarantee patient safety in the NHS if the strike by resident doctors in England goes ahead. You may need to refresh the page to get the update to appear.
Treasury committee will examine agency’s forecasting record and discover where it ‘needs to do better’
MPs have launched an inquiry into the role and performance of the Office for Budget Responsibility.
The all-party Commons Treasury committee will spend until the end of next month investigating the independent agency’s forecasting performance and impartiality. The panel will consider whether reforms are needed 15 years after the OBR was set up by George Osborne when he was Tory chancellor.
Meanwhile, the Lib Dems’ Gentleman Ed rips into Starmer for staying silent on The Donald’s US security strategy
With little more than a week to go until the Christmas recess, the Commons is in festive overdrive. Demob happy. A few minutes in to the year’s penultimate prime minister’s questions with MPs from both sides shouting and cheering, the speaker interrupted proceedings to say: “We don’t need the panto auditions any more.” To which the natural response was: “Ooh yes we do.” Because that’s pretty much the whole purpose of PMQs at the best of times. A feelgood experience for some. A feelbad experience for others. Noise with no substance.
No one embraces the panto spirit more than Kemi Badenoch. Kemi has come to realise that the bar is actually quite low for her to remain as Tory leader. All she has to do is be a little bit better than Keir Starmer at PMQs. Which is turning out to be a lot less difficult than she imagined. Sometimes just standing up is enough.
Rachel Reeves has condemned leaks before her make-or-break budget as “unacceptable” as she revealed her income tax U-turn was agreed in partnership with Keir Starmer.
Defending her tax and spending plans before MPs on the Commons Treasury committee, the chancellor said she had been frustrated by “leaks that were clearly not authorised” before her November speech.
The chancellor will give evidence to the Commons Treasury committee about the budget from 10am
Rachel Reeves, the chancellor, will start giving evidence to the Treasury committee at 10am. She will appear alongside James Bowler, permanent secretary at the Treasury, and Dharmesh Nayee, its director of strategy, planning and budget.
This is what the Treasury committee said in a news release about the topics it wants to cover.
Members are likely to examine the significant changes to the Treasury’s tax and spending plans, and potential implications for the economy, public services and government debt.
The chancellor is also expected to answer questions on topical issues, such as how her department handled the months leading up to the budget and the recently announced leak inquiry.
It’s our generation’s responsibility to break down barriers to opportunity for young people.
We’re investing in youth services so every child has the chance to thrive and we’re boosting apprenticeships so young people can see their talents take them as far as they can.
-Build or refurbish up to 250 youth facilities over the next four years, as well as providing equipment for activities to around 2,500 youth organisations, through a new £350m ‘Better Youth Spaces’ programme. It will provide safe and welcoming spaces, offering young people somewhere to go, something meaningful to do, and someone who cares about their wellbeing.
-Launch a network of 50 Young Futures Hubs by March 2029 as part of a local transformation programme of £70m, providing access to youth workers and other professionals, supporting their wellbeing and career development and preventing them from harm.
The “premium” that the UK pays to borrow money compared with its international peers may be coming to an end as markets grow more confident about the government’s plans, a thinktank has suggested.
The Institute for Public Policy Research (IPPR) said that the chancellor Rachel Reeves’s announcement in the autumn budget that she would be more than doubling the UK’s financial headroom by 2030 from £9.9bn to £22bn had begun to assure bond markets about Labour’s fiscal approach.
Good news for Rachel Reeves: the cost of government borrowing has fallen a bit relative to the US and eurozone countries. Better news: the chancellor may have something to do with it. Better still: some economists think there’s more to come.
Let’s not get carried away, though. The UK is still paying a painful premium on its borrowing costs, as the Institute for Public Policy Research thinktank illustrates. Since last year’s general election the yield on 10-year government gilts is up almost 70 basis points – or seven-tenths of 1% – compared with US Treasury bonds, and the increase versus the eurozone is almost 25 basis points. The gaps are wider for 30-year bonds and the consequences are real. IPPR calculates that if the premium could be reduced to zero, the Treasury would save as much as £7bn a year until 2029-30.
In a boost for Rachel Reeves, deputy governor says analysis shows chancellor’s policies will lower annual rate next year
The Bank of England expects Rachel Reeves’s budget will reduce the UK’s headline inflation rate by as much as half a percentage point next year.
In a boost for the chancellor after last month’s high-stakes tax and spending statement, Clare Lombardelli, a deputy governor at the central bank, said its early analysis showed the policies would lower the annual inflation rate by 0.4 to 0.5 percentage points for a year from mid-2026.
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