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General election: McDonnell says it is 'common sense' to relax borrowing rules for £400bn investment - live news General election: McDonnell says it is 'common sense' to relax borrowing rules for £400bn investment - live news
(32 minutes later)
Chancellor and shadow chancellor deliver speeches outlining their parties’ economic visionsChancellor and shadow chancellor deliver speeches outlining their parties’ economic visions
The Green party in Northern Ireland has announced it will not stand in any of Belfast’s four constituencies in a bid to assist the election of pro-remain MPs, PA Media reports. The party had already withdrawn from the South Belfast contest earlier this week to endorse the SDLP’s bid to unseat the outgoing DUP MP Emma Little Pengelly.
The CBI, the leading business organisation, has cautiously welcomed the Labour and Conservative plans to spend more on investment. In a statement, Rain Newton-Smith, the CBI chief economist, said:
The Scottish Liberal Democrat Willie Rennie has appealed for support from Labour voters who feel they are “without a political home”. Speaking at his party’s official campaign launch, Rennie said:
Bad news for Northern Ireland’s remainers and good news for the Democratic Unionist party: Lady Sylvia Hermon has decided to step down as an MP.Bad news for Northern Ireland’s remainers and good news for the Democratic Unionist party: Lady Sylvia Hermon has decided to step down as an MP.
The independent unionist, Northern Ireland’s sole pro-remain voice at Westminster, announced on Wednesday night that she is vacating her North Down seat. The independent unionist, Northern Ireland’s sole pro-remain voice at Westminster, announced on Wednesday night that she was vacating her North Down seat.
The decision dismayed remainers and greatly boosts the DUP’s chances of taking the seat.The decision dismayed remainers and greatly boosts the DUP’s chances of taking the seat.
Sinn Fein’s abstention from Westminster meant Hermon was the only Northern Ireland MP to challenge the DUP’s Brexiters and to represent the 56% of people who voted to stay in the EU. Sinn Féin’s abstention from Westminster meant Hermon was the only Northern Ireland MP to challenge the DUP’s Brexiters and to represent the 56% of people in her country who voted to stay in the EU.
Tributes to her 18 years of service flowed from all sides. Hermon was an eloquent, effective parliamentarian.Tributes to her 18 years of service flowed from all sides. Hermon was an eloquent, effective parliamentarian.
“This has been a particularly difficult decision but, after much thought, I have concluded that it is the right decision for my family and for me at this time,” Hermon said. The prospect of a tumultuous, toxic campaign in Northern Ireland may also have influenced her decision.“This has been a particularly difficult decision but, after much thought, I have concluded that it is the right decision for my family and for me at this time,” Hermon said. The prospect of a tumultuous, toxic campaign in Northern Ireland may also have influenced her decision.
Sinn Fein and the SDLP had planned to stand aside in North Down to increase her chances of fending off the DUP’s Alex Easton, who closed the gap to 1,200 votes in the last election. He is now favourite to take the seat and offset potential DUP losses in Belfast. Sinn Féin and the SDLP had planned to stand aside in North Down to increase her chances of fending off the DUP’s Alex Easton, who closed the gap to 1,200 votes in the last election. He is now favourite to take the seat and offset potential DUP losses in Belfast.
Like Ian Austin, John Woodcock was elected as a Labour MP and subsequently left the party, strongly criticising Jeremy Corbyn’s leadership and his handling of the issue of antisemitism (although, unlike Austin, Woodcock was suspended at the time over a misconduct allegation).Like Ian Austin, John Woodcock was elected as a Labour MP and subsequently left the party, strongly criticising Jeremy Corbyn’s leadership and his handling of the issue of antisemitism (although, unlike Austin, Woodcock was suspended at the time over a misconduct allegation).
Woodcock and Austin both sat as independents instead of defecting to another party. Woodcock is standing down as parliament and today, like Austin, he is urging people to vote Conservative to keep Corbyn out of No 10. He said: Woodcock and Austin both sat as independents instead of defecting to another party. Woodcock is standing down as an MP and today, like Austin, he is urging people to vote Conservative to keep Corbyn out of No 10. He said:
Northern politicians and business leaders have joined forces with more than 30 regional news organisations to publish the first manifesto for the north, on the second day of an election campaign which sees northern England as a key battleground. The manifesto demands the newly elected government sign up to five “game changers for the north”, as the two main political leaders address crowds in Teesside, Liverpool and Manchester today. Northern politicians and business leaders have joined forces with more than 30 regional news organisations to publish the first manifesto for the north, on the second day of an election campaign in which northern England is regarded as a key battleground. The manifesto demands the newly elected government sign up to five “game changers for the north”, as the two main political leaders address crowds in Teesside, Liverpool and Manchester today.
Uniting across political and geographical differences, the “power up the north” collaboration will present the policy pledges to the Conservatives, Labour and Liberal Democrats, demanding they sign up to the vision to “unleash” the north’s potential.Uniting across political and geographical differences, the “power up the north” collaboration will present the policy pledges to the Conservatives, Labour and Liberal Democrats, demanding they sign up to the vision to “unleash” the north’s potential.
The proposals came out of a conference in September, organised by NP11 - a group of the 11 Northern Local Enterprise Partnerships, and is backed by newspaper front pages across the region including the Manchester Evening News, Liverpool Echo, the Yorkshire Post and the Chronicle in Newcastle. They include: The proposals came out of a conference in September, organised by NP11 - a group of the 11 Northern Local Enterprise Partnerships – and is backed by newspaper front pages across the region including those of the Manchester Evening News, Liverpool Echo, the Yorkshire Post and the Chronicle in Newcastle. They include:
Taking local control of education and trainingTaking local control of education and training
Asking the government to make rebalancing the economy a formal HM Treasury objective Asking the government to make rebalancing the economy a formal Treasury objective
A northern transport budgetA northern transport budget
Greater scale and control of investmentGreater scale and control of investment
Placing the north at the helm of a green industrial revolutionPlacing the north at the helm of a green industrial revolution
In an article for the Guardian, Greater Manchester mayor, Andy Burnham said the pledges could free northerners “from the shackles of short-sighted Westminster policies”. He writes that the proposals are backed by analysis led by the former head of the UK civil service, Lord Kerslake, which found that the north-south divide in England as “stark as the east-west divide in Germany in the early 1990s”. In an article for the Guardian, the Greater Manchester mayor, Andy Burnham, said the pledges could free northerners “from the shackles of short-sighted Westminster policies”. He writes that the proposals are backed by analysis led by the former head of the UK civil service, Bob Kerslake, which found that the north-south divide in England was as “stark as the east-west divide in Germany in the early 1990s”.
Roger Marsh OBE, chair of the NP11 said the north led the first industrial revolution, and could be “the crucible” for the “fourth - and first sustainable - industrial revolution, but only if we take critical action now”. He added, “Our message to all political parties is clear; the north is ready to lead the transformation required for net zero 2050, enhanced productivity and a truly inclusive Great Britain.”Nick Forbes, leader of Newcastle City Council said: “Our north is one made up of many different and distinct places, but by working together like this we have shown we are a powerful region which is prepared to speak with one voice and do what is needed to create opportunity for the future”. Roger Marsh, the chair of the NP11, said the north led the first industrial revolution and could be “the crucible” for the “fourth – and first sustainable – industrial revolution, but only if we take critical action now”. He added: “Our message to all political parties is clear; the north is ready to lead the transformation required for net zero 2050, enhanced productivity and a truly inclusive Great Britain.”Nick Forbes, the leader of Newcastle city council, said: “Our north is one made up of many different and distinct places, but by working together like this we have shown we are a powerful region which is prepared to speak with one voice and do what is needed to create opportunity for the future”.
The Liberal Democrats, Plaid Cymru and the Green Party have formed a general election pact, agreeing not to stand against each other in dozens of seats, the Press Association reports. The deal, brokered by the Unite to Remain group, will give voters a single remain choice in 60 constituencies across England and Wales. The group is confident that “at least 44” of the 60 seats are “highly winnable”. The Liberal Democrats, Plaid Cymru and the Green party have formed a general election pact, agreeing not to stand against each other in dozens of seats, PA Media reports. The deal, brokered by the Unite to Remain group, will give voters a single remain choice in 60 constituencies across England and Wales. The group is confident that “at least 44” of the 60 seats are “highly winnable”.
As the Press Association reports, the move follows an agreement earlier this year in the Brecon and Radnorshire by-election, where the Lib Dems took the seat from the Conservatives after the other two parties stood aside. As PA Media reports, the move follows an agreement earlier this year in the Brecon and Radnorshire byelection, where the Lib Dems took the seat from the Conservatives after the other two parties stood aside.
Heidi Allen, chairwoman of Unite To Remain and previously Lib Dem MP for South Cambridgeshire, said the cross-party arrangement was “unprecedented in modern British political history”. Heidi Allen, the chairwoman of Unite To Remain and previously Lib Dem MP for South Cambridgeshire, said the cross-party arrangement was “unprecedented in modern British political history”.
In total, the Lib Dems will stand in 43 constituencies, the Greens will stand in 10 and Plaid Cymru will stand in seven.In total, the Lib Dems will stand in 43 constituencies, the Greens will stand in 10 and Plaid Cymru will stand in seven.
At a press conference in London, Peter Dunphy, election strategist and a director at Unite to Remain, said: “At least 44 of those 60 can be regarded as highly winnable constituencies.” As PA reports, he said this evaluation is based on a wide range of data, including current national opinion polls, local election results and European elections. At a press conference in London, Peter Dunphy, an election strategist and director at Unite to Remain, said: “At least 44 of those 60 can be regarded as highly winnable constituencies.” As PA reports, he said this evaluation was based on a wide range of data, including current national opinion polls, and results from local and European elections.
Here’s my colleague Kate Proctor’s story about the launch:
These are from my colleague Richard Partington, who has been listening to the press conference that Mark Carney, governor of the Bank of England, has been giving.These are from my colleague Richard Partington, who has been listening to the press conference that Mark Carney, governor of the Bank of England, has been giving.
Here is some more analysis of the Sajid Javid and John McDonnell speeches from economic specialists (journalists and thinktankers).
From Faisal Islam, the BBC’s economics editor
From Paul Johnson, director of the Institute for Fiscal Studies
From Torsten Bell, chief executive of the Resolution Foundation
From the economics professor Jonathan Portes
From Newsnight’s economics editor Ben Chu
From Miatta Fahnbulleh, chief executive of the New Economics Foundation
With the Conservatives and Labour both proposing to increase sustained public spending to a level last seen in the 1970s, it was perhaps appropriate that Sajid Javid, the chancellor, delivering his speech at the Aviation View Park in Manchester below a surviving Concorde - the supersonic passenger jet launched in the 1970s.
Sadly, Concorde turned out to be unsustainable.
These are from Reuters Kylie MacLellan.
The Bank of England has today downgraded its growth forecasts for the UK. My colleague Graeme Wearden has more on his business live blog.
These are from the Institute for Fiscal Studies, the tax and spending thinktank, on the rival Conservative and Labour borrowing plans.
A former BBC Radio Norfolk presenter who said women should “keep their knickers on” while he was discussing a high-profile rape case has been chosen as the Conservative parliamentary candidate for Broadland in Norfolk, the Press Association reports. Nick Conrad, 34, received the backing of the local party on Wednesday to run for the seat held by fellow Tory Keith Simpson, who has stepped down after 22 years as an MP. Simpson held the constituency at the 2017 election with a majority of 15,816.
As the Press Association reports, Conrad was criticised for the comments he made in 2014 during a radio conversation about the footballer Ched Evans, who was jailed for rape before having his conviction quashed and being cleared at a retrial. Conrad said:
This week Conrad told the Eastern Daily Press that he had already apologised for what he said in 2014 and that he was apologising again. He said:
Jess Phillips, who is seeking re-election as a Labour MP, posted this on Twitter in response to the news about Conrad’s selection.
Q: Should Jacob Rees-Mogg be forced out as an MP?
McDonnell says he and Jeremy Corbyn have been on the silent walks to commemorate the Grenfell Tower fire. He recalls Corbyn embracing survivors. That is what MPs should be doing.
He says Rees-Mogg’s comments show how Tories patronise the people. They must be removed from office, he says.
And that’s it. The McDonnell Q&A is over.
I will post more from the Javid and McDonnell speeches and Q&As, with reaction, shortly.
McDonnell is now answering questions from activists at the event.
He says Labour wants to give local authorities the power to control rents. People think that is radical, he says. But it is normal through Europe. And rent controls used to apply in this country too.
Q: Why have Ian Austin and the Jewish Chronicle both decided that the election choice should not be Labour?
McDonnell does not refer to Austin by name. But, referring to a “former Labour MP”, he says Austin is now employed by the Tories, and so he speaks on their behalf.
(That is a reference to Austin being a trade envoy to Israel. Trade envoys are unpaid, but their travel costs are covered by the government.)
On the Jewish Chronicle editorial (see 9.28am), McDonnell says he is saddened by this. He says one antisemite in the party is one too many. But he says Labour has done what the Jewish community has asked for in terms of dealing with this problem.
But he says anyone concerned about racism should not be supporting the Tories. He says they won’t address Islamophobia in their own party.
Q: What impact will the remain alliance pacts have on Labour? And why is Labour not part of that?
McDonnell says Labour is heading for a majority. It does not need a pact, he says.
But he says anyone considering a pact with the Lib Dems should consider their record in supporting austerity.
McDonnell says what he is proposing stands in the best traditions of socialism.
John McDonnell is now taking questions.
Lucy Powell, the Labour candidate (not an MP now, because parliament has been dissolved) who is chairing the event, urges activists to be “respectful” when journalists ask questions. (In the past journalists have been booed for asking critical questions at these events.)
Q: What is your response to Sajid Javid’s speech?
McDonnell says Javid seems to have become a climate change denier. He has not included this in his letter to the Bank of England.
Under Javid’s plans, the UK would not be able to meet its climate change targets, he says.
He says Labour’s plans do match the scale of the climate crisis. If Labour did not step up to the mark, future generations would not forgive it.
Q: Will these plans allow you to increase your target for building homes?
McDonnell says these borrowing plans will allow Labour to meet its housing targets. Details of those will be published in due course, he says.
Q: Does the next Labour deputy leader have to be a woman?
McDonnell says he is always in favour of a gender balance.