2 weeks Ago By Jacob Freedland
Rachel Reeves has “damaged the economy” by causing a downturn in consumer confidence with her repeated warnings of tax rises in the Budget, the former boss of Sainsbury’s has said. Asked on the Today programme if the backdrop of bad news in the lead up to next month’s Budget was “damaging the economy” by causing people not to buy things, Justin King said: “Yes, [but] I think you have to do that. I think they’d argue you step backwards before forwards.
“They’ll want the budget not to feel as bad as people are expecting, so you might as well get the bad news out beforehand.” The Chancellor has repeatedly warned of looming “difficult decisions” on tax, with experts fearing raids on capital gains, inheritance and pension contributions. Ms Reeves’ critics suggest the situation is better than she claims.
She is being urged to restore winter fuel payments for millions of pensioners after the Bank of England handed the Chancellor a fiscal boost worth up to £10bn. The Bank said on Thursday it would slow down the sales of government bonds amassed during lockdown. The decision will give Ms Reeves more breathing room at next month’s Budget because of the way the scheme is accounted for on the Government’s balance sheet.
Baroness Altmann, a former pensions minister, encouraged the Chancellor to use the extra headroom to reverse her decision to strip 10m pensioners of a payment of £300 this winter. Rachel Reeves was pictured at a Women in Economy event she hosted at No. 11 Downing Street on Thursday.
Sir Keir Starmer has “lived entirely by the rules”, Jess Phillips said, after the Prime Minister was criticised for accepting lavish gifts and tickets to football matches. The Home Office minister told Times Radio: “The Prime Minister has lived entirely by the rules that have governed every single member of Parliament, certainly since I’ve been there - he received gifts and things, and he declared them.” “Let me tell you, it feels like he’s breathing down my neck to make sure that we’re doing things right in my department,” she added.
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