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UK coronavirus live: Labour says it wants growth, not tax rises, ahead of Sunak's summer statement | UK coronavirus live: Labour says it wants growth, not tax rises, ahead of Sunak's summer statement |
(32 minutes later) | |
Follow live updates on the latest on the coronavirus crisis in the UK and chancellor Rishi Sunak’s summer statement | Follow live updates on the latest on the coronavirus crisis in the UK and chancellor Rishi Sunak’s summer statement |
Ombudsman services are bracing themselves to be inundated with complaints as a result of Covid-19, MPs have heard. As PA Media reports, Anthony Arter, who is the pensions ombudsman and pension protection fund ombudsman, told the Commons work and pensions committee: | |
As my colleague Kate Proctor reports, quite what is going to happen to free hospital parking for NHS staff in England remains unclear, but we have had one bona fide Treasury U-turn today. | |
Yesterday it emerged that the Treasury was planning to make workers pay income tax on Covid-19 tests purchased by their employers. | |
Now, in response to protests from Mel Stride, the Conservative chair of the Commons Treasury committee and others, Rishi Sunak has granted an exemption, meaning coronavirus tests will no longer be treated as a benefit in kind for tax purposes. Sunak confirmed this in a letter to Stride sent last night. | |
Stride said: | |
Here is the Mirror’s Dan Bloom on the similarities between Labour’s future jobs fund from 2009 and the “kickstart scheme” being announced by Rishi Sunak this afternoon. | |
Turning away from the summer statement for a moment, Dame Cressida Dick, the Metropolitan police commissioner, has apologised to the black athlete Bianca Williams for the way she was handcuffed during a stop and search. | Turning away from the summer statement for a moment, Dame Cressida Dick, the Metropolitan police commissioner, has apologised to the black athlete Bianca Williams for the way she was handcuffed during a stop and search. |
Giving evidence to the Commons home affairs committee, Dick said: | Giving evidence to the Commons home affairs committee, Dick said: |
As PA Media reports, the commissioner said reviews of the evidence by two separate teams have found there was no apparent misconduct, but she explained a referral was made to the Independent Office for Police Conduct (IOPC) because of “the level of public concern”. She said: | As PA Media reports, the commissioner said reviews of the evidence by two separate teams have found there was no apparent misconduct, but she explained a referral was made to the Independent Office for Police Conduct (IOPC) because of “the level of public concern”. She said: |
Dick said she has asked a senior officer to review the Met’s handcuffing practices to make sure it hasn’t become a “default”, and has set up an “oversight group” looking at the use of force. She added: | Dick said she has asked a senior officer to review the Met’s handcuffing practices to make sure it hasn’t become a “default”, and has set up an “oversight group” looking at the use of force. She added: |
Downing Street has just sent out its read-out from this morning’s cabinet, where Rishi Sunak, the chancellor, briefed ministers on what would be in the summer economic update. It is not at all revealing but, for the record, here it is anyway. | Downing Street has just sent out its read-out from this morning’s cabinet, where Rishi Sunak, the chancellor, briefed ministers on what would be in the summer economic update. It is not at all revealing but, for the record, here it is anyway. |
Anneliese Dodds, the shadow chancellor, has used an overnight statement about the summer economic update to clarify that Labour is not proposing a wealth tax, or indeed any sort of tax increase, now. | Anneliese Dodds, the shadow chancellor, has used an overnight statement about the summer economic update to clarify that Labour is not proposing a wealth tax, or indeed any sort of tax increase, now. |
The issue has arisen because, at the end of last week, Dodds said that the government should be considering the case of a wealth tax. She confirmed this again in weekend TV interviews, and on Monday Sir Keir Starmer, the Labour leader, said she was right to raise the idea. After the Dodds interviews on Sunday the Conservative party issued a critical press release, with co-chairman Amanda Milling saying: | The issue has arisen because, at the end of last week, Dodds said that the government should be considering the case of a wealth tax. She confirmed this again in weekend TV interviews, and on Monday Sir Keir Starmer, the Labour leader, said she was right to raise the idea. After the Dodds interviews on Sunday the Conservative party issued a critical press release, with co-chairman Amanda Milling saying: |
Milling issued another press release this morning, saying more or less exactly the same thing, only with an added reference to the Starmer LBC phone-in. | Milling issued another press release this morning, saying more or less exactly the same thing, only with an added reference to the Starmer LBC phone-in. |
But Labour is saying it is emphatically not calling for tax increases now. This is from the statement Dodds issued overnight. | But Labour is saying it is emphatically not calling for tax increases now. This is from the statement Dodds issued overnight. |
Rishi Sunak, the chancellor, is not expected to raise taxes now, or any time soon, and so in one respect Labour is just swiping at a straw man. But there will be suspicions that this also provides a clue into what Starmer’s long-term instincts are in relation to tax policy. | Rishi Sunak, the chancellor, is not expected to raise taxes now, or any time soon, and so in one respect Labour is just swiping at a straw man. But there will be suspicions that this also provides a clue into what Starmer’s long-term instincts are in relation to tax policy. |
Paul Waugh at HuffPost wrote a good article on Monday looking at exactly what the Labour thinking is on this. And yesterday my colleague Polly Toynbee published an even more intriguing column, revealing that the Treasury is taking a close interest in an Institute for Fiscal Studies project looking at how a wealth tax could be made to work. | Paul Waugh at HuffPost wrote a good article on Monday looking at exactly what the Labour thinking is on this. And yesterday my colleague Polly Toynbee published an even more intriguing column, revealing that the Treasury is taking a close interest in an Institute for Fiscal Studies project looking at how a wealth tax could be made to work. |
More than 100,000 people have now signed a petition started by the Covid-19 Bereaved Families for Justice group calling for an immediate inquiry into the coronavirus crisis. “People are still being infected and still dying every day,” Matt Fowler, a co-founder of the group said. “It is critically important that this is thoroughly investigated and stopped now.” | More than 100,000 people have now signed a petition started by the Covid-19 Bereaved Families for Justice group calling for an immediate inquiry into the coronavirus crisis. “People are still being infected and still dying every day,” Matt Fowler, a co-founder of the group said. “It is critically important that this is thoroughly investigated and stopped now.” |
Petitions on the parliamentary website that attract more than 100,000 signatures are considered for a debate in parliament, but this is a change.org petition. | Petitions on the parliamentary website that attract more than 100,000 signatures are considered for a debate in parliament, but this is a change.org petition. |
From the Spectator’s James Forsyth | From the Spectator’s James Forsyth |
Peter Mandelson, the former Labour cabinet minister and former European trade commission, was also seeking the UK nomination for this post but, according to the Financial Times, he was told by Liz Truss, the international trade secretary earlier this week, that the government would not back him because he was “not a Brexiter”. | Peter Mandelson, the former Labour cabinet minister and former European trade commission, was also seeking the UK nomination for this post but, according to the Financial Times, he was told by Liz Truss, the international trade secretary earlier this week, that the government would not back him because he was “not a Brexiter”. |
Liam Fox, the Tory former international trade secretary, is seen as having very little chance of actually getting the WTO job. One Tory former minister told the FT: | Liam Fox, the Tory former international trade secretary, is seen as having very little chance of actually getting the WTO job. One Tory former minister told the FT: |
Here is Jonathan Ashworth, the shadow health secretary, on the plan to scale back free hospital parking for NHS staff. (See 9.34am.) | Here is Jonathan Ashworth, the shadow health secretary, on the plan to scale back free hospital parking for NHS staff. (See 9.34am.) |
Alex Flynn, chief of staff at the BMA, had a better version of the “clamp carers” line in a tweet last night. | Alex Flynn, chief of staff at the BMA, had a better version of the “clamp carers” line in a tweet last night. |
It sounds like we might be getting a U-turn of sorts today over hospital parking charges for NHS staff. | It sounds like we might be getting a U-turn of sorts today over hospital parking charges for NHS staff. |
The Independent published a story last night saying that “NHS workers will have to start paying for parking at their own hospitals again as the Covid-19 crisis starts to ease”. The reporter, Hugo Gye, had a good source. He had actually read the reply to a Commons written question on this topic provided by the health minister Edward Argar, who said: | The Independent published a story last night saying that “NHS workers will have to start paying for parking at their own hospitals again as the Covid-19 crisis starts to ease”. The reporter, Hugo Gye, had a good source. He had actually read the reply to a Commons written question on this topic provided by the health minister Edward Argar, who said: |
The question was tabled by Labour’s Rachael Maskell. | The question was tabled by Labour’s Rachael Maskell. |
Nicky Morgan, the Tory peer and former culture secretary, has been giving interviews this morning and, as the Telegraph’s Cat Neilan points out, she changed her line between interviews, suggesting there may have been a rethink. | Nicky Morgan, the Tory peer and former culture secretary, has been giving interviews this morning and, as the Telegraph’s Cat Neilan points out, she changed her line between interviews, suggesting there may have been a rethink. |
In fact, the rethink had already started last night. This is what the Department of Health and Social Care told PA Media in response to the Independent story, and the statement stresses that NHS staff will continue to get free parking at hospitals “in certain circumstances”. A DHSC spokesperson said: | In fact, the rethink had already started last night. This is what the Department of Health and Social Care told PA Media in response to the Independent story, and the statement stresses that NHS staff will continue to get free parking at hospitals “in certain circumstances”. A DHSC spokesperson said: |
This may just be a reference to staff working nightshifts getting free parking (a proposal confirmed by Argar), but the tone of the statement is slightly different from that adopted in the written answer. | This may just be a reference to staff working nightshifts getting free parking (a proposal confirmed by Argar), but the tone of the statement is slightly different from that adopted in the written answer. |
Ian Blackford, the SNP’S leader at Westminster, says all hospital parking charges should be abolished. | Ian Blackford, the SNP’S leader at Westminster, says all hospital parking charges should be abolished. |
Good morning. I’m Andrew Sparrow, taking over from Matthew Weaver. | Good morning. I’m Andrew Sparrow, taking over from Matthew Weaver. |
Today we will be focusing mostly on what is being described as the chancellor’s “summer economic update” - a quasi budget that will set out a range of coronavirus economic recovery measures. (Although technically not a budget, which means that it won’t be accompanied by the normal set of forecasts from the OBR, in spending terms it will dwarf a routine budget.) | Today we will be focusing mostly on what is being described as the chancellor’s “summer economic update” - a quasi budget that will set out a range of coronavirus economic recovery measures. (Although technically not a budget, which means that it won’t be accompanied by the normal set of forecasts from the OBR, in spending terms it will dwarf a routine budget.) |
Here are the key timings. | Here are the key timings. |
12pm: Boris Johnson faces Sir Keir Starmer at PMQs. | 12pm: Boris Johnson faces Sir Keir Starmer at PMQs. |
12.30pm: Rishi Sunak delivers the summer economic update. | 12.30pm: Rishi Sunak delivers the summer economic update. |
The mayor of Greater Manchester, Andy Burnham, has urged the government to guarantee a real living wage for the lowest paid workers. | The mayor of Greater Manchester, Andy Burnham, has urged the government to guarantee a real living wage for the lowest paid workers. |
Speaking on Sky News he challenged Rishi Sunak to show a genuine commitment to the Conservative’s promise to “level up” society. He said: | Speaking on Sky News he challenged Rishi Sunak to show a genuine commitment to the Conservative’s promise to “level up” society. He said: |
Burnham also warned that a stamp duty holiday would not tackle inequality. | Burnham also warned that a stamp duty holiday would not tackle inequality. |
He said: “I’m worried that we’re noticing another big political moment pass here from the chancellor, where we haven’t got substance behind this phrase ‘levelling up’.” | He said: “I’m worried that we’re noticing another big political moment pass here from the chancellor, where we haven’t got substance behind this phrase ‘levelling up’.” |
The online fashion retailer Boohoo has announced it will launch an independent review of its UK supply chain after recent allegations that some factories in Leicester that sell clothes to Boohoo pay workers below the minimum wage and failed to protect them from coronavirus. | The online fashion retailer Boohoo has announced it will launch an independent review of its UK supply chain after recent allegations that some factories in Leicester that sell clothes to Boohoo pay workers below the minimum wage and failed to protect them from coronavirus. |
Boohoo, which owns brands including PrettyLittleThing and Nasty Gal, said the review will be led by Alison Levitt QC, and said it would initially invest £10m towards “eradicating malpractice” in its supply chain. | Boohoo, which owns brands including PrettyLittleThing and Nasty Gal, said the review will be led by Alison Levitt QC, and said it would initially invest £10m towards “eradicating malpractice” in its supply chain. |
The company said in a statement that the board was “shocked and appalled by the recent allegations” and was committed to working to rebuild the reputation of textile manufacturing in Leicester. | The company said in a statement that the board was “shocked and appalled by the recent allegations” and was committed to working to rebuild the reputation of textile manufacturing in Leicester. |
Greenpeace activists have replaced the destinations on the road signs around parliament to read “Green Recovery”. | Greenpeace activists have replaced the destinations on the road signs around parliament to read “Green Recovery”. |
The stunt was designed to highlight Greenpeace’s view that the government only has one option with its economic recovery package, and that much greater investment is needed to green the transport, energy, housing and waste sectors, create new green jobs and tackle the climate emergency. | The stunt was designed to highlight Greenpeace’s view that the government only has one option with its economic recovery package, and that much greater investment is needed to green the transport, energy, housing and waste sectors, create new green jobs and tackle the climate emergency. |
It comes as the government is threatened with legal action over the expected lack of green measures in the summer statement. | It comes as the government is threatened with legal action over the expected lack of green measures in the summer statement. |
On Tuesday, a letter threatening court action was sent to the prime minister and the chancellor by the pressure group Plan B, which successfully took the government to the appeal court this year over its green light for the expansion of Heathrow airport. | On Tuesday, a letter threatening court action was sent to the prime minister and the chancellor by the pressure group Plan B, which successfully took the government to the appeal court this year over its green light for the expansion of Heathrow airport. |
Sunak will set out £3bn of green spending, focusing on improving energy efficiency in homes and public buildings, in his summer statement on Wednesday. But the letter contrasts this sum with the billions committed to airlines and carmakers in the taxpayer-funded coronavirus recovery package, and funding for fossil fuels. | Sunak will set out £3bn of green spending, focusing on improving energy efficiency in homes and public buildings, in his summer statement on Wednesday. But the letter contrasts this sum with the billions committed to airlines and carmakers in the taxpayer-funded coronavirus recovery package, and funding for fossil fuels. |
That report about hospital parking charges resuming for NHS staff appears to be causing unease in Tory ranks. | That report about hospital parking charges resuming for NHS staff appears to be causing unease in Tory ranks. |
Labour has been highly critical of the plan - a sign that it may be raised by Keir Starmer at prime minister’s questions. | Labour has been highly critical of the plan - a sign that it may be raised by Keir Starmer at prime minister’s questions. |
Many of today’s papers lead on the chancellor’s jobs plan. But the I’s splash focuses on the end of free parking for NHS staff. | Many of today’s papers lead on the chancellor’s jobs plan. But the I’s splash focuses on the end of free parking for NHS staff. |
And the Telegraph leads on the stamp duty holiday. | And the Telegraph leads on the stamp duty holiday. |
Here are some of the other front pages: | Here are some of the other front pages: |
Welcome to live coverage of the UK’s coronavirus crisis and the chancellor’s summer statement. | Welcome to live coverage of the UK’s coronavirus crisis and the chancellor’s summer statement. |
Rishi Sunak is set to put a job creation plan for under-25s at the centre of his statement, which is expected at about 12.30pm. | Rishi Sunak is set to put a job creation plan for under-25s at the centre of his statement, which is expected at about 12.30pm. |
The £2bn scheme will fund six-month job placements for an estimated 350,000 18- to 24-year-olds. | The £2bn scheme will fund six-month job placements for an estimated 350,000 18- to 24-year-olds. |
Sunak is also reported to be considering a stamp duty holiday for properties under £500,000 to boost the housing market, as part of a package to tackle the economic impact of the coronavirus. | Sunak is also reported to be considering a stamp duty holiday for properties under £500,000 to boost the housing market, as part of a package to tackle the economic impact of the coronavirus. |
Richard Partington has a preview of these and other measures to look out for in the chancellor’s statement. | Richard Partington has a preview of these and other measures to look out for in the chancellor’s statement. |