Politics LIVE: Rachel Reeves in 'make or break territory' as colleagues fear she may have to cut short China trip
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Labour sources have expressed concern that Rachel Reeves is in 'make or break territory' ahead of a key trip to China.
The Chancellor is jetting off to Beijing in a bid to revive closer ties with the nation and boost Britain’s economy amid turmoil in UK bond markets.
However, there have been some concerns in the Cabinet, with one source telling The Times that the Treasury had "lost the plot" and another saying: "We’re in make-or-break territory now."
Another likened the mood to Autumn 1976 when then chancellor Denis Healey had to scrap a trip to the International Monetary Fund to deal with a sterling crisis.
The crisis then led to a humiliating bailout and bitter cabinet fallouts about spending cuts. A Cabinet source said: "This is all starting to look like Healey having to come back from Heathrow, isn’t it?"
Shadow chancellor Mel Stride was granted an urgent question in Parliament earlier this week on the upheaval that has raised questions about the sustainability of Britain’s public finances, adding that it was a "regret" that the Chancellor was "nowhere to be seen."
Chief Secretary to the Treasury Darren Jones, appearing on the Chancellor's behalf, insisted that markets continue to "function in an orderly way."
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President Nicolas Maduro gestures to the crowd during a pro-government rally in Caracas, Venezuela
Getty
David Lammy has labelled Venezuelan president Nicolas Maduro’s “claim to power” as “fraudulent”, as the UK announced sanctions against 15 people associated with him.
The Foreign Secretary said that the July elections in which Maduro secured a third term were "neither free nor fair and his regime does not represent the will of the Venezuelan people." It comes as Maduro was sworn in for a third term as president on Friday.
Maduro was declared the winner of the election hours after polls closed on July 28, but there have been concerns about the transparency of the process, as the opposition collected tally sheets from more than 80 per cent of electronic voting machines, posted them online and said the tallies show opposition candidate Edmundo Gonzalez won twice as many votes as Maduro.
In a statement on Friday, Lammy said: "Nicolas Maduro’s claim to power is fraudulent. The outcome of July’s elections was neither free nor fair and his regime does not represent the will of the Venezuelan people.
"Today’s sanctions send a clear message. The UK will not stand by as Maduro continues to oppress, undermine democracy, and commit appalling human rights violations. All political prisoners must be released and the ongoing repression must end. We will continue to support the people of Venezuela in their fight for a democratic future."
Nigel Farage has said he and Elon Musk are still friends but issued a warning that he "can't be bullied"
It comes after the controversial billionaire said the Clacton MP "doesn't have what it takes" to lead the party and called for him to stand down over the party's stance on EDL founder Tommy Robinson.
The Reform UK leader told Sky News: "Of course we're friends. He just says what he thinks at any moment in time. He said lots of supportive things. He said one thing that wasn't supportive. I mean, that's just the way it is."
"What [Musk] was saying online was that effectively Tommy Robinson was a political prisoner and I wouldn't go along with that. If I had gone along with that, he wouldn't have put out a tweet that was against me. By the way, you know, I can't be pushed or bullied or made to change by anybody."
Green Party co-leaders Carla Denyer and Adrian Ramsay
PA
The Green Party has demanded local elections go ahead after eleven councils have so far asked to postpone elections ahead of the biggest reorganisation of local government in decades.
Reacting to the news, co-leader Adrian Ramsay MP said: "People must be allowed to vote at the local elections in May. It would be an outrage if the first outcome of a plan the government claims will devolve power from Westminster to local areas is to see democracy cancelled. Our fragile democracy can’t afford that.
"Behind the rushed and undemocratic pleas from County Council leaders to deny their electors a vote, is the fact that many of those closer to the voters, district and borough council leaders, are opposed.
"With a five-fold increase in Green councillor numbers over the last five local elections, it does look like the two big parties are running scared of facing the voters. Indeed, how can the government claim an electoral mandate for these major local government changes if those most impacted see their elections postponed?
"The Green Party is urging the government to save our democracy, allow these long-planned elections to take place and get around the table to discuss how to make devolution work for people in local areas across the country."
Reform has entered into a local coalition with the Conservatives in Ashfield District Council.
Councillor Dawn Justice, who defected from the Conservatives to Reform in November, has now teamed up with Conservative Councillor Philip Rostance.
However, Lee Anderson, a former Labour councillor at the Nottinghamshire council, told Guido Fawkes the arrangement is a "one-off" and a "special case" adding that Justice wants to remain on the council’s Audit Committee while Council Leader Jason Zadrozny faces trial on 12 counts of fraud next month.
Safeguarding Minister Jess Phillips has been hit with a fresh wave of fury after blasting a Tory who missed yesterday's debate on tackling violence against women and girls.
Phillips, who came under fire after rejecting a request for a national grooming gangs inquiry, told MPs: "The first person I will respond to is the Minister, Shadow Minister, sorry, the Shadow Minister [Mims Davies]. No, she is not actually the Shadow Minister; the Shadow Minister with this brief [Alicia Kearns] is not here.
"The Shadow Home Secretary [Chris Philp]—he certainly got on the bandwagon—is not here. The Shadow Justice Secretary [Robert Jenrick] is not here."
Responding on social media, Kearns revealed why she missed the debate and argued Phillips's comments flew in the face of her commitment to stand by women.
She said: "Yes, Jess Phillips, I wasn’t at the debate yesterday, I was at the hospital. Your colleagues know I’ve been away from Parliament for medical reasons, but you chose to attack me. So much for standing by women. Our Shadow Cabinet Secretary for Women spoke and did an excellent job."
Reform UK chair Zia Yusuf has hit out at the Tories in relation to the idea that the two parties may eventually choose an electoral pact.
It comes as the party is staging its UK South East England Conference at Sandown Racecourse in Epsom this evening.
Yusuf wrote on social media: "Reform doesn’t need a 'pact' with the Tories, in just the same way that Netflix didn’t need a 'pact' with Blockbuster video."
He added: "It’s actually insane how incredible Britain could be with competent, patriotic leaders. That’s why people are flocking to Reform!"
Liberal Democrat leader Sir Ed Davey meets workers at the Burwell Print Centre near Cambridge
PA
Liberal Democrat leader Sir Ed Davey said Elon Musk is "an opponent of free speech" and should be "held to account."
Davey called for greater regulation of social media algorithms, pointing to the impact of posts on Musk’s platform X on the disorder seen in parts of the UK last summer.
He told reporters: "The Liberal Democrats champion free speech. But when the richest man in the world owns a platform that he distorts to promote his views and prevents other people speaking, he isn’t a champion of free speech, he is an opponent of free speech.
"He has said that America should replace our Government. I’m afraid it’s British people at the ballot box that decide that, not the richest man in the world, who happens to be close to the next president of the United States and who has this social media platform.
"I think these powerful people need to be held to account."
Jeremy Corbyn has slammed Sir Keir Starmer over his NHS plans, accusing Labour of "abandoning" working-class voters with "a series of broken pledges."
The Islington North MP, who led the party from 2015 to 2020, wrote in The Independent: "The government wonders why they are overseeing an unprecedented rise in support for far-right parties and personalities.
"Whether it’s maintaining the two-child benefit cap, cutting winter fuel or selling off our NHS, this government is abandoning working-class people, one broken pledge at a time.
"People in this country are disillusioned by a two-party system that thrives on despair. Politicians may regret spending their lives convincing their constituents that nothing will change. Instead, they should inspire some hope that a more equal world is possible."
A Labour spokesman responded to the Independent MP's claims, saying: "If your ideology forces NHS patients to wait longer for healthcare, there’s something wrong with your ideology."
In our first voting intention of 2025, Labour & Tories remain at 26%. Reform is at 22% - the highest figure we’ve recorded for them
— Luke Tryl (@LukeTryl) January 9, 2025
🌳CON 26% (nc)
🌹LAB 26% (nc)
➡️ REF UK 22% (+3)
🔶 LIB DEM 12% ( -1)
🌍 GREEN 7% (-1)
🟡 SNP 3% (nc)
N = 2,011 6 - 8 Jan, Change w 10 Dec pic.twitter.com/jDA8yx2sXD
Nigel Farage has cashed in on £5,400 from Elon Musk's social media company X, official filings have revealed.
Fellow Reform UK MPs Lee Anderson and Rupert Lowe were also paid personally by the site late last year.
The trio received payments after agreeing to "monetise" their accounts, later being handed certified grey ticks.
Reform UK MPs have been able to rake in more than £10,000 between them since July, with Farage unsurprisingly emerging as the highest paid of the three.
However, no other MPs from other parties have declared similar payments from the social media giant.
Speaking to The Telegraph, a Labour source said they were not aware of any MPs being paid by X.
But Reform UK suspects MPs from other parties were making money from X without declaring it.
Anderson said: “Reform UK MPs are being open and transparent about any payments received from X.
"We have nothing to hide, I will declare these earnings and pay 40 per cent income on them.”
The revelations come after Musk took aim at Farage for his failure to support ex-English Defence League leader Tommy Robinson.
Responding to calls from the X boss to step down, Farage said: "Well, this is a surprise! Elon is a remarkable individual but on this I am afraid I disagree.
"My view remains that Tommy Robinson is not right for Reform and I never sell out my principles."
He later added: "I have no desire to go to war with Elon Musk and I'm not going to, and I haven't done."
Farmers across Britain are staging nationwide tractor protests today, targeting major supermarket supply chains in response to inheritance tax changes.
Hundreds of agricultural workers have mobilised their tractors to demonstrate against the tax reforms, with coordinated actions taking place at retail distribution centres and along main roads throughout the country.
The protests, organised by Farmers To Action, represent a significant show of force from Britain's farming community, who warn the tax changes threaten the nation's food security.
Protests are taking place across multiple regions, with significant demonstrations reported in Cheshire and Northampton targeting key retail distribution centres.
The coordinated actions stretch across England's countryside, with local farming groups mobilising in Dorset, Hampshire, Devon, Cornwall, Derbyshire and Lincolnshire.
Rachel Reeves has been dealt a major blow after a group of economists warned that surging borrowing costs could stifle Labour's plan for growth.
Goldman Sachs' James Moberly said the UK economy will now only grow by a meagre 0.9 per cent in 2025, down from the two per cent predicted by the Office for Budget Responsibility at the time of the Budget in October.
Higher interests rates, made worse by surging borrowing costs, seemingly worsened the fiscal situation facing Britain.
Speaking while the Chancellor travels to China, Moberly said: "We expect higher yields to act as an additional headwind to growth via household remortgaging and weaker investment, with the increase of the last few days worth around 0.1 percentage point of additional growth drag this year."
Kemi Badenoch is "bottling" the 2025 Local Elections, a Liberal Democrat source has claimed.
The insider, who was speaking after the Liberal Democrats defeated the Tories in yesterday's North Devon by-election, said: “It’s no wonder the Conservatives are trying to delay these elections when we’re beating them in former Tory safe seats like North Devon.
“Kemi Badenoch is bottling it and trying to cancel these local elections because she's terrified of more Lib Dem gains and a Conservative collapse that would threaten her leadership.
“She could step in and ask Conservative councils not to delay, instead she’s sat on her hands. It’s sad to see this so-called defender of free speech now refusing to give voters a voice.”
The Liberal Democrats received 38.1 per cent of the vote, six-points ahead of the Tories.
Reform UK also cemented its position in third, with 17 per cent of Instow voters backing the populist party.
Rachel Reeves spent thousands of pounds on media training for ministers at the same time as hiking taxes for millions and removing Winter Fuel Payments from pensioners.
Four departments - the Treasury, the Department for Health, the Foreign Office and the Scotland Office - spent more than £18,000 in the six months since the election on media or voice training.
A further 13 departments did not make any spending. The figures were uncovered by a series of questions in Parliament submitted by Conservative MP John Cooper.
The spending on media training came as the Government took decisions to remove the Winter Fuel Allowance from millions of pensioners and hiked taxes in the Budget last October.
'She needed to come to the Commons yesterday to explain how she is going to get growth and not get on a plane and flee to China'
— GB News (@GBNEWS) January 10, 2025
Harriet Baldwin slams Rachel Reeves amid market chaos, saying her Budget 'is what has caused all these problems in the first place'. pic.twitter.com/QgWwC5ZNbK
Tory grandee Dame Harriet Baldwin has slammed Chancellor Rachel Reeves over her decision to jet off to Beijing.
Reeves faced fury in the House of Commons yesterday after going ahead with her China visit.
MPs were particularly frustrated as the visit comes after the UK's market was rocked by a series of negative news, including a surge in UK borrowing and sterling's slump against the dollar.
Speaking to GB News this morning, Baldwin said: "She needed to come to the Commons yesterday to explain how she is going to get growth and not get on a plane and flee to China."
Culture Secretary Lisa Nandy has defended Rachel Reeves after the Chancellor was urged against visiting China to address the UK's precarious economic position.
Speaking to Sky News this morning, Nandy said it was “absolutely” the right decision for the Chancellor to go to Beijing.
Nandy also stressed that Reeves is “relentless in her pursuit of growth”.
Senior allies of Sir Keir Starmer have been mulling over who could replace Tulip Siddiq if she is forced to quit over her links to her aunt's ousted Bangladeshi regime.
The development, as reported in The Times, comes after Siddiq referred herself to the independent adviser on ministers’ interests amid concerns about her use of several properties linked to her aunt's party.
Financial-crime officials at Bangladesh’s central bank have demanded bank-account details for Siddiq and seven of her family members
Alistair Strathern, Imogen Walker, Callum Anderson, Kanishka Narayan, Rachel Blake and Josh Simons have reportedly been earmarked for the role.
However, a No10 spokesman said it was “completely untrue” to suggest the party had drawn up a shortlist.
Kemi Badenoch has warned the UK is "back under union control" after Labour voted to undo academy freedoms introduced by the Tories in the 2010s.
Speaking to The Telegraph, the Leader of the Opposition said: “This is not good for schools, and what it is showing is that Labour are just doing what the unions want them to do.
"The country is back under union control, and that’s what we are fighting against.”
Badenoch also described the Government as "Jeremy Corbyn's Labour Party fronted by Keir Starmer".
Rachel Reeves
Getty ImagesChancellor Rachel Reeves has jetted off to Beijing despite being warned the UK faces a 1970s-style debt "nightmare".
Reeves, who was urged to cancel her trip by MPs yesterday, left the UK as the pound sunk to a 15-month low against the dollar and borrowing rates rose to a 27-year high.
Martin Weale, a respected former member of the Bank of England’s rate-setting monetary policy committee, told Bloomberg News: "We haven’t really seen the toxic combination of a sharp fall in sterling and long-term interest rates going up since 1976. That led to the IMF bailout."
He added: "So far we are not in that position but it must be one of the Chancellor’s nightmares."
Nigel Green, chief executive of financial advisory firm deVere, also said: "The Chancellor’s inability to reassure markets is fanning fears of an economic implosion, with austerity looming as the only option to restore credibility – a brutal throwback to 1976."
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