Politics latest: Chancellor and Hunt in spiky Commons clash - as she's quizzed over tax plans (2024)

Key points
  • Bulletin:What you need to know - and what's coming up
  • Chancellor won't rule out hiking pensions tax
  • But corporation tax to remain capped at 25%
  • 'A bit of brass neck': Reeves and Hunt in spiky Commons clash
  • Could council tax discount for singles be ditched?
  • Jon Craig:Hard to believe Labour are united as problems mount
  • Live reporting by Faith Ridler
Explained: Our latest essential guides
  • Who's running to be Tory leader
  • Taxes that could rise in the budget
  • How council tax could be changed
Politics Hub With Sophy Ridge highlights
  • 'Tories still think public were wrong'
  • Oasis ticket sales 'corporate Britain at its worst'
  • Sophy Ridge:Things are depressing - but it may be part of the plan

12:00:01

Your lunchtime bulletin from the Politics Hub has arrived.

Hopefully you've got a tasty sandwich to tuck into while you read.

  • Chancellor Rachel Reeves has refused to rule out raising pensions taxwhen her first budget comes round on 30 October;
  • Facing questions from MPs in the Commons, she would only say "I'm not going to speculate" and repeated her assertion it would be a budget that fixes the "foundations of the economy";
  • It comes less than 24 hours after Housing Secretary Angela Rayner told the Commons while council tax wouldn't go up, there was no guarantee the discount for singles wouldn't be scrapped.
  • Sir Keir Starmer has chaired acabinet meeting as his government comes under scrutiny for its decision to suspend some arms exports to Israel;
  • Defence Secretary John Healey was the minister picked to defend the move this morning, saying it was based on "a clear risk" some components could be "linked to serious violation of international law" in Gaza;
  • The Tories have been widely critical of the decision - their leadership contest has been rattling on today with a speech from Tom Tugendhat before the first round of voting by MPs tomorrow.

Last week's news the government is considering a smoking ban in some outdoor spaces will be the focus of a Lords debate this afternoon - we'll bring you any good lines on that after 3pm.

And of course it's Politics Hub With Sophy Ridge tonight at 7pm - we'll have more on the line-up later today.

Stay with us for more news and analysis through the afternoon.

13:30:01

Sky News Daily: Ticket troubles – can there be a better system?

After a long Saturday for millions of Oasis fans in online queues, the culture secretary says surge pricing will be part of the government's review of the ticket market.

👉 Tap here to follow the Sky News Daily podcast – 20 minutes on the biggest stories every day👈

Niall speaks to secondary ticketing site Viagogo on this episode. While it wasn’t part of dynamic pricing, it has offered resale tickets for thousands of pounds since Saturday.

Matt Drew from the company accepts the industry needs a full review while Adam Webb, from the campaign group FanFair Alliance, explains the changes it would like to see.

Later, our data and forensics correspondent Tom Cheshire tells Niall about how a rise in online propaganda has helped the Afghan branch of Islamic State become "the greatest external terror threat".

It’s been linked to the concert hall attack in Moscow and the plot to disrupt Taylor Swift gigs in Austria.

12:59:57

Major rescue operation under way in English Channel after boat carrying migrants capsizes - French media

A major rescue operation is under way after a boat with at least 100 migrants onboard capsized in the English Channel, according to French media.

The French coastguard said 10 people were in critical condition after the boat got into difficulty off the coast of France, Reuters reported.

France 3 quoted Le Portel mayor Olivier Barbarin as saying "around 10 people in cardio-respiratory arrest".

12:54:20

How will pensioners in England's 'snowiest village' cope with winter fuel cut?

More from the Commons, where the chancellor has been facing questions from MPs this lunchtime.

As you'd expect, there's been a lot on tax and her decision to start means testing the winter fuel payment.

But it's not just the Tories giving her a hard time - a Labour MP representing the "snowiest village" in England has asked how the chancellor will make sure his elderly constituents don't suffer this winter.

"The village of Copley in my constituency (Bishop Auckland) is the snowiest in England, and we have many pensioners in receipt of the basic state pension who are nonetheless in fuel poverty," he points out.

Many of them "live in cold, stone-built houses", he adds.

Chancellor Rachel Reeves references the government's plan to insulate five million more homes during this parliament, which will make properties warmer and keep energy bills down.

12:33:27

'A bit of brass neck': Reeves and Hunt clash over cronyism claims

Chancellor Rachel Reeves just accused Jeremy Hunt of having "a bit of brass neck" for criticising cronyism under Labour during Treasury Questions.

The shadow chancellor had asked Ms Reeves why cronyism - that is, the appointment of friends and associates to positions of authority - is "wrong under the Conservatives but acceptable under Labour".

'We will treat taxpayers' money with respect'

Responding, Ms Reeves says Mr Hunt has "a bit of brass neck criticising this government after the appointments and the partying at Downing Street" under the Tories.

She says there were "billions of pounds of contracts handed out to friends and donors of the Conservative Party".

"That's why this government is appointing a COVID corruption officer to get that money back... because unlike the last government, we are determined that taxpayers' money is treated with respect."

12:19:33

Chancellor confirms corporation tax will be capped at 25%

Chancellor Rachel Reeves has confirmed corporation tax will be capped at 25% as part of a "tax roadmap for business" that she will set out in the October budget.

During Treasury questions, Ms Reeves told the Commons this would "give business the confidence to grow".

She said "investment is at the heart" of the government's mission to grow the economy and capping corporation tax would "offer the certainty that encourages investment".

The cap will remain for the duration of this parliament.

11:41:57

Chancellor doesn't rule out pensions tax hike

Over to the Commons, where Chancellor Rachel Reeves and her ministers are facing Treasury Questions.

She is asked about Labour's repeated promise in the election campaign not to increase taxes on "working people".

But can she guarantee there will not be heavier taxation on pensions in the October budget?

"I'm not going to speculate on what will be in the budget, but I'm absolutely determined to ensure that working people are better off," she tells the Tories' shadow Treasury minister Nigel Huddleston.

"This budget will be a budget to fix the foundations of the economy after the mess left by the previous government."

Reeves defends winter fuel cut - and tax cap for corporations

Ms Reeves was also asked about her decision to means test the winter fuel payment, which will cut the benefit for millions of pensioners.

She stressed the state pension is worth £900 more now than a year ago, and points back to the £22bn "black hole" in public finances.

One tax that won't go up is corporation tax - Ms Reeves reaffirmed it would max out at 25% to "give business the confidence to grow".

11:35:01

Tugendhat identifies core challenge facing Tories

Tom Tugendhat's Tory leadership campaign speech is over and our political correspondent Liz Bates was watching along in case you didn't fancy doing so.

Unsurprisingly, there was "quite a focus" on foreign policy given his previous role as chair of the Foreign Affairs Committee and then as a security minister.

He was keen to talk about what Liz describes as "one of the old rows of the last government", as he said he'd be prepared to take us out of the European Court of Human Rights to make it easier to deport criminals.

It's worth remembering every country in Europe is signed up to the country apart from Russia and Belarus.

Despite that pitch to the Tory base, Liz noticed a desire to "re-engage younger voters".

It's a "core challenge for the Conservative Party he has identified", given the last election saw its vote hugely concentrated among older voters.

Whoever wins this contest will have to appeal to a "much broader range" next time and use this race to "set out how they're going to do that".

Ultimately, though, Liz notes Mr Tugendhat isn't really considered a frontrunner right now - with the likes of Kemi Badenoch out in front.

10:55:04

Tugendhat: 'Conservatives owed you better'

Tom Tugendhat, the former security minister, has admitted the "Conservative Party owed you better" as he launched his bid to become party leader.

Speaking in London, he vowed to make the Tories "a serious force again".

He said: "I will make us respected for our realism, admired for our integrity, acknowledged for our achievements and given credit for seeing the errors that we may make and correcting them."

'Rethink the entire economy'

Mr Tugendhat says that, by doing this, he believes he will lead the Tories "back to power".

He says the UK needs a "different government", one that will serve the country "with conviction".

He suggests the country needs to "rethink its entire economy", while making sure housing is "affordable" - and changing the culture of those left "idle and ignored".

Mr Tugendhat also says the maximum level of net migration would be capped at 100,000 people per year under his leadership, and said he'd be willing to leave the European Court of Human Rights.

10:30:01

Who is running to be Tory leader - and how will the contest play out?

The Conservative leadership competition is heating up.

The first round of voting among MPs takes place this Wednesday, reducing the field of candidates from six to four.

Here's a reminder if you need it of those vying for the job:

James Cleverly

Mr Cleverlybecame the first to officially enter the contestwith a post on social media, saying he wanted to "re-establish our reputation as the party who, in government, helps grow the economy".

The Essex MP, who was home secretary until the last election, is one of the Tories' most experienced former cabinet ministers, having also been foreign secretary, education secretary and party chairman.

Tom Tugendhat

Mr Tugendhat was the second Tory to put himself forward, just moments after nominations opened.

The former security minister is regarded highly among the One Nation group of moderate Tory MPs.

Robert Jenrick

The former immigration minister was the third to announce he was running after Mr Cleverly and Mr Tugendhat.

Mr Jenrick held several ministerial roles, including communities secretary - a position he lost in one of Mr Johnson's reshuffles.

Mel Stride

Mr Stride became the fourth Tory to enter the race, telling Sky News there was a "huge job to do".

A long-standing ally of Mr Sunak, he was dubbed "the minister for the morning round" during the general election campaign, facing the media more than any of his colleagues.

Priti Patel

The former home secretary was the key torch-bearer for the right before she was eclipsed by Ms Braverman following the demise of Mr Johnson.

Dame Priti is seen as one of the more traditional right-wing MPs in the party, compared with her successor Ms Braverman, who holds appeal with some Tory MPs elected in 2019.

Kemi Badenoch

Ms Badenoch, the ex-business secretary, was the final Tory to announce she was standing.

She is seen as a darling of the right and has impressed some in the party with her no-nonsense approach.

What happens next?

The six candidates will be whittled down to four in a vote on Wednesday.

After this, a hustings will be held during the party conference later in September, when MPs will vote again to narrow the field to two candidates.

The party's wider membership will then vote with the winner announced on 2 November.

Politics latest: Chancellor and Hunt in spiky Commons clash - as she's quizzed over tax plans (2024)

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