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The Independent UK
The Independent UK
Politics
Vincent Wood, Andy Gregory

Boris Johnson news – live: Government 'far too slow' to roll out economic recovery plan, says Sadiq Khan, as Rishi Sunak unveils mini-budget

Chancellor Rishi Sunak has scrapped stamp duty for homes under £500,000 and slashed VAT on the hospitality sector – with Britons to be given money-off restaurant vouchers throughout August - in his emergency “mini-budget”, as he announced the government’s coronavirus furlough scheme will end in October.

It came after Boris Johnson and Keir Starmer clashed in the Commons, with the Labour leader accusing the prime minister of “rubbing salt in the wounds” of care home workers with his comments that they had failed to follow procedures as Covid-19 deaths soared. Mr Johnson said the government took “full responsibility” but failed to directly apologise for his comments.

Meanwhile, the finance ministers of Scotland, Wales and Northern Ireland have also written to the chancellor to demand Westminster hand over “crucial” but “relatively limited” fiscal powers in light of the coronavirus crisis, to allow capital spending to be moved over to day-to-day revenue and bring an end to “arbitrary” borrowing limits.

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Good morning, welcome to The Independent's live blog on today's happenings in Westminster, where the chancellor is set to unveil his emergency "mini-budget".
Chancellor under pressure to extend furlough scheme as he unveils £2bn plan for youth jobs
The chancellor’s hotly anticipated Covid-19 recovery plan will feature a £2bn “kickstart” fund to subsidise hundreds of thousands of work placements for the 16-24 year-old age group whose job prospects have been hit hardest by the pandemic, in what the Treasury described as “the biggest package of support for youth employment in decades”, our political editor Andrew Woodcock reports.

But unions said it was no more than a “good first step” towards halting mass youth unemployment. And critics said it fell short of Boris Johnson’s promise of “the chance of an apprenticeship or in-work placement” for every young person, with participants potentially earning as little as £161 a week.

Shadow chancellor Anneliese Dodds said the government had failed to “rise to the scale of the unemployment crisis” and should stem unnecessary job losses by tailoring the withdrawal of support to the needs of sectors which face long delays before returning to pre-crisis activity.

“To the extent that the kickstart programme is based on [Labour’s] future jobs fund model, it should help many young people to access work,” said Ms Dodds.

“However, the government are yet to rise to the scale of the unemployment crisis. The urgent priority right now is to prevent additional unnecessary unemployment in the first place by abandoning the government’s one-size-fits-all approach to the removal of the job retention and self-employed schemes. In addition, older people who become unemployed, and those living in particularly hard-hit areas, will also need tailored support.”
 
Stamp duty cut could come into effect immediately following emergency mini-budget, reports say

Rishi Sunak is reportedly set to announce a stamp duty holiday that is set to come into force straight away to stimulate the economy amid the coronavirus crisis, Zoe Tidman reports.

On Wednesday, the British chancellor is expected to temporarily raise the threshold for the payment for property sales, which will immediately apply, according to The Telegraph.

The newspaper reported it could increase to £500,000 from the current £125,000 in England and Wales – a six-month holiday that will potentially save homebuyers thousands of pounds.

Amid speculation the threshold for the tax could be raised, housing market experts argued homebuyers in southern England would stand to benefit the most from the move.

Mr Sunak has also been urged to consider an emergency VAT cut to stimulate consumer spending following the coronavirus outbreak.
 
Devolved nations unite to demand more fiscal powers from Westminster

A joint message from the Scottish, Welsh and Northern Irish finance ministers to chancellor Rishi Sunak ahead of his summer statement requests "relatively limited powers" they believe will help to bolster the recovery of each country.

The three ministers are asking for the chancellor to allow capital spending to be moved over to day-to-day revenue as well as an end to "arbitrary" limits on borrowing.

Scotland's finance secretary Kate Forbes said any funding used to secure the recovery and pay for public services would need to be found from elsewhere in its budget.

"They are relatively limited powers but would ease some of the immense pressures on our budget and give us more tools to kick-start our recovery," she said. "At the moment, any extra money spent bolstering services and supporting the economic recovery must be taken from other areas.

"That creates risks for our essential public services, jobs and businesses. I am therefore calling on the chancellor to ease these rigid fiscal rules and give us the flexibility we need to properly address the monumental challenges our economy is facing."

Ms Forbes added she would like to see "greater ambition in the level of investment in our economy".

Rebecca Evans, who holds the finance portfolio in Wales, said the response from her government had been "hampered" by current fiscal rules, adding: "There is no clear rationale for these rules, which undermine good budget management in Wales.

"The crisis has made the issue urgent. It's time for the UK government to act and provide the flexibility we need to respond and invest in Wales' recovery."

Northern Ireland finance minister Conor Murphy said it is "crucial" for devolved administrations to be given the powers allowing them to "respond swiftly and effectively" to the challenges presented by Covid-19.

He added: "More financial flexibility can help us deal with these challenges and use our budgets to support public services, protect the vulnerable and deliver an economic recovery."
Fairness of elections at risk as government refuses to find millions of missing voters, parliamentary report warns

The report found young people, those who move home frequently, and people from ethnic minority backgrounds are most likely to be disenfranchised because of huge gaps in electoral rolls, our deputy political editor Rob Merrick reports.

Ministers are urged to adopt automatic voter registration when someone reaches adulthood and to use data from other public services to issue reminders to people to sign up.

But, as The Independent revealed last month, the government has rejected an official recommendation to use other databases and services – claiming to do so “could lead to a less accurate electoral register”.

Now a House of Lords committee has demanded an urgent rethink, warning accurate voting rolls are “key to a robust and resilient democracy”. “Millions of voters may still be missing from electoral registers,” said chair Lord Shutt of Greetland, adding: “Incomplete registers can only be damaging to the integrity of elections.”

The Electoral Commission believes around 9 million voters are missing from the rolls and will now not be counted when new Westminster constituencies are drawn up.
 
Ministers must have plan to avoid PPE shortage if coronavirus second wave hits, MPs warn

An influential House of Commons committee has said ministers must have a plan in place by the end of the summer to deliver sufficient supplies of personal protective equipment (PPE) for a potential second wave of coronavirus in the UK this winter, our political editor Andrew Woodcock reports.

The cross-party Public Accounts Committee said it was “extremely concerned” by shortages of PPE experienced by health and care workers during the first wave of Covid-19 and did not believe the government was treating the issue with sufficient urgency.

Warning in a report that ministers do not have a “clear understanding” either of the equipment needed or how to distribute it – particularly to the fragmented care sector - the committee set a 7 September deadline for the Department of Health and Social Care to outline how it will provide reliable and easily accessible supplies if coronavirus flares up again.

The report also warned that Health Secretary Matt Hancock’s decision at the start of the Covid crisis to write off £13.4bn of NHS trusts’ historic debts would not resolve the health service’s underlying financial problems.
 
Government to scrap free parking for NHS staff once coronavirus crisis eases

Matt Hancock announced on 25 March that the government would cover the costs of car parking for NHS staff who he said were “going above and beyond every day” at hospitals in England.

But the Department of Health has said the free parking will continue only for “key patient groups and NHS staff in certain circumstances” as the pandemic eases, although no further timeline has been given.

Speaking to Sky News on Wednesday, Greater Manchester mayor Andy Burnham said: "Having done it in the first place, I think they should see it through through the course of the pandemic."

He added: "This is still an ongoing situation. Staff are still battling into work every day. It undermines the initiative in teh first place to withdraw it now, I would say."

He said the government "appear to have a bit of a downer on measures like this", citing Westminister's alleged refusal to support a similar scheme which saw NHS and social care staff given free trams access in Manchester.
‘People will die’: Priti Patel warned immigration policy will force thousands back on the streets

Local councils have warned Priti Patel an immigration policy that blocks migrants from accessing public funds will force thousands of homeless people back onto the streets during the coronavirus pandemic, our social affairs correspondent May Bulman reports.

Dozens of local authorities and charities are calling on the Home Office to take “urgent action” to ensure restrictions on state support for migrants do not “undermine” the “collective effort to end rough sleeping in Britain” during the lockdown.

Almost 15,000 rough sleepers across the UK have been housed in hotels or emergency accommodation since March under the Everyone In scheme, under which local authorities were required to provide emergency accommodation to rough sleepers with a £3.2m pot of funding from central government.

Ministers told local authorities at the end of May they must put in place plans to ensure all rough sleepers currently accommodated in hotels and other forms of emergency accommodation were supported into stable housing.

However, councils in London warn that thousands of people will not be able to access this support because their immigration status stipulates that they have no legal right to local authority or central government support.
 
Greenpeace activists point Westminster road signs towards 'Green Recovery' ahead of chancellor's emergency budget

The intervention by Greenpeace UK aims to send a message to the government that it 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 group said.



“Just in case the chancellor was worried about getting lost on his way to deliver his economic statement today, we’ve made it abundantly clear that there’s only one route he can take. All roads must now lead to a green recovery – there is no alternative option," said Greenpeace UK’s head of green recovery, Rosie Rogers.

“Rishi Sunak’s going to have to dig quite a bit deeper today if he genuinely plans to ‘build back greener’. An initial £15bn cash injection in green ‘shovel ready’ projects would create hundreds of thousands of new jobs, almost immediately, right across the country, while making transport greener, homes warmer, energy bills lower and restoring nature.

“But just as importantly, he needs to cough up much more if we have any chance of tackling the climate emergency, which will have far more disastrous outcomes, not just for our economy, but for the entire planet.”
Outrage over Tory plans to resume Saudi arms sales despite 'possible' war crimes in Yemen

MPs have expressed their fury at the government's decision to resume arms sales to Saudi Arabia despite alleged war crimes in Yemen, which have seen large numbers of civilian casualties but which trade secretary Liz Truss brushed off as "isolated incidents".

Labour's Coventry South MP accused the Tories of "putting arms dealers' profits above human rights".



Former shadow foreign secretary Emily Thornberry said: "At a time when millions of Yemeni children are facing the mortal threat of starvation and disease, Britain should be working flat out to bring this terrible war to an end, not selling the arms that continue to fuel it.”

Her successor Lisa Nandy tweeted:



Campaign Against Arms Trade, which successfully challenged previous UK arms sales to the regime in court, said it would be considering this new decision with its lawyers:

"This is a disgraceful and morally bankrupt decision. The Saudi-led bombardment of Yemen has created the world's worst humanitarian crisis, and the government itself admits that UK-made arms have played a central role on the bombing. We will be considering this new decision with our lawyers, and will be exploring all options available to challenge it," said Andrew Smith.

"The evidence shows a clear pattern of heinous and appalling breaches of international humanitarian law by a coalition which has repeatedly targeted civilian gatherings such as weddings, funerals, and market places. The government claims that these are isolated incidents, but how many hundreds of isolated incidents would it take for the government to stop supplying the weaponry?

"This exposes the rank hypocrisy at the heart of UK foreign policy. Only yesterday the government was talking about the need to sanction human rights abusers, but now it has shown that it will do everything it can to continue arming and supporting one of the most brutal dictatorships in the world."
Get a taste of The Independent's daily Inside Politics newsletter here, brought to you by Adam Forrest.

"We live in a time of signs and wonders. Scientists have found pink snow in the Alps, which might sound kind of fun and psychedelic – but it’s there because of a nasty kind of algae growing in the heat brought on by climate change," he writes.

"There is no shortage of bad signs in Britain right now – well-known businesses going to the wall and gloomy predictions of rising unemployment. Can Rishi Sunak work any economic wonders? As the chancellor unveils a jobs fund for young people ahead of today’s mini-Budget, the hard-pressed will be hoping he still has a few miracles left up his sleeve."

 
Labour to call for 'flexible' furlough scheme to 'avoid additional floods of redundancy notices' in face of local lockdowns

Shadow chancellor Anneliese Dodds will also press Rishi Sunak to spell out how he will fund his coronavirus recovery package without hiking taxes or slashing public services, as he unveils his emergency mini-budget later today.

Ms Dodds is expected to tell Mr Sunak that the at least £27.4bn spent to support 9.4 million jobs "must not have merely served to postpone unemployment".

"The scheme must now live up to its name, supporting employment in industries which are viable in the long term," the Labour MP is likely to add during their House of Commons exchange.

"And we need a strategy for the scheme to become more flexible, so it can support those businesses forced to close again because of additional localised lockdowns. There is still time to avoid additional floods of redundancy notices."

Ms Dodds is also set to warn that increasing taxes during the recovery and cutting back on public services "will damage demand and inhibit our recovery".

"The Tory manifesto committed to no rises in income tax, National Insurance or VAT and therefore it is for them to set out how any additional spending will be paid for," she should add. "It's the chancellor's job to make sure the economy bounces back from this crisis so there is money in the coffers to protect the public finances."
Nicky Morgan says 'no foundation' to reports NHS workers will have to again pay for parking - despite government confirming it in parliament

Speaking to Sky News, Baroness Nicky Morgan, a former cabinet minister, said the decision to reintroduce parking fees at a future date was “not a decision she is involved with”, adding: “It does seem very strange given as you say given how hard our NHS have worked over the last few months, that this decision has been taken”, Ashley Cowburn reports.

But appearing in a separate interview moments later, the Conservative peer struck a different tone, telling LBC radio: “Well my understanding, and I checked this morning because you’re not the first person to ask about this strangely enough, is that there is no foundation in this story.

“The government asked the NHS trusts to lift the parking charges because our health workers and care workers have done such an amazing job in looking after those of us who have been sick and ill. Nothing has changed in relation to that.”

The remarks from the Conservative peer follows anger directed at the government, with the British Medical Association describing the reports as a “rebuff to the immense efforts of staff across the country and the sacrifices they have made”.

The row comes hot on the heels of the NHS's 72nd anniversary, when Matt Hancock failed to say whether lower-paid NHS staff should be given a pay rise, and Boris Johnson called for another national clap for health workers, despite having cited his opposition to "empty gestures" when asked about taking the knee days earlier.
 
Chancellor Rishi Sunak has been accused of a “staggering lack of self-awareness” as he posed with a mug costing £180 ahead of his emergency mini-budget statement in the Commons, Adam Forrest reports.

Photos released by the Treasury showed Mr Sunak looking over his notes next to a smart mug allowing tea or coffee to be kept warm for up to three hours. The Bluetooth-enabled beaker comes with a “charging coaster” and allows the drinker to remotely programme a particular temperature for their beverage.
 
Mr Sunak is set to announce a “kickstart” youth jobs scheme later – yet opposition politicians pointed out that young people on the national minimum wage would have to work more than a week to be able to afford one of the “techno” mugs.

Layla Moran, the Liberal Democrat leadership candidate, said: “At a time when millions are struggling to get by, the chancellor is posing with a £180 coffee mug.”

She added: “It would take an 18-year-old on the government’s new work placement scheme over a week to earn that much. This shows a staggering lack of self-awareness.”
 
Government criticised over censorship of drugs review - 'like ignoring carbon emissions in climate change report'

Drugs policy campaigners have criticised the government's alleged decision to ban Dame Carol Black's second review into drug use from looking at the role played by current legislation.

"While predictable (the same exclusion was applied to phase 1), this restriction undermines the whole enterprise," said James Nicholls, CEO of Transform Drug Policy Foundation

"It is like commissioning a report on climate change, but telling investigators not to consider the role of carbon emissions."

Carole Black's first report, published in February laid out, in great detail, the failures of current drug policy: increasing health harms, needless criminalisation, rising social inequalities, slashed funding for treatment, more violence and more exploitation, Mr Nicholls said.

Phase two of the report is expected in December, and it will focus on preventing and treating drugs misuse.

"We desperately need a comprehensive approach to prevention, and we need a non-dogmatic approach to recovery – one which not only recognises ‘recovery’ can take many forms but that keeping people alive and well through harm reduction is absolutely vital," Mr Nicholls added.

"We also need concrete steps to better funding, and to a system that is finally able to effectively connect substance use, mental health and housing services in ways that recognise the complex drivers of harm – and which finally address the problem of people with ongoing drug issues being excluded from mental health services or housing."
Citizens Advice helping one person every two minutes with redundancy issue in England and Wales
 
Redundancy is now the number one search term on the charity's website, and between 29 June and 3 July, its frontline advisers helped one person every two minutes with a redundancy issue - a total of 1,605 people in England and Wales.

Benefits advice page views on the Citizens Advice website are at their highest-ever level, with 4.4 million views since 23 March.

Ahead of the chancellor’s summer economic update, Citizens Advice is calling for urgent changes to the benefits system, with chief executive Dame Gillian Guy saying: “The top concern for millions of people right now is weathering the escalating employment crisis. That much is clear from the soaring demand we’re seeing for advice on redundancy and benefits.

“Investment in jobs and training will be critical for economic recovery, but any measures have to be underpinned by a strong safety net. At this incredibly worrying time, the government must ensure that the benefits system provides people with enough to make ends meet if they lose their job.”
Breaking: Rishi Sunak ditches plan to charge income tax on coronavirus tests in latest government u-turn

The move came after the chancellor was challenged in the House of Commons by a senior Tory MP who warned it would lead to key workers being left out of pocket for tests to show they are safe to work, our political editor Andrew Woodcock reports.

The potential charge emerged in new guidance from HM Revenue and Customs, which stated: “Coronavirus (Covid-19) testing kits or tests carried out by a third party which have been purchased by you to provide to your employees, are treated as a taxable benefit in kind on the employee.”

Refresh our breaking story for updates:
 
Sunak updates Cabinet ahead of today's emergency mini-budget
 
A Downing Street spokesperson says the chancellor told ministers that "we have moved through the first phase of the crisis where we supported closed sectors, businesses and families and the challenge now is to support the economy opening up".

"Crucially, this means protecting as many jobs as possible in the face of a very challenging outlook, with the OBR and Bank of England both predicting significant increases in unemployment," the spokesperson said.

"The Chancellor outlined that young people were particularly vulnerable because they are two-and-a-half times more likely to work in the sectors that have been closed.

"The Chancellor emphasised that we don't want that generation left behind and that is what today's economic update will focus upon."
 
Mr Sunak and Boris Johnson underlined that the measures being announced today come on top of the furlough scheme which has protected nine million jobs, the spokesperson said.

"The Chancellor outlined the details of today's 'Plan For Jobs' to support, create and protect jobs, following on from the PM's New Deal speech last week," they said.

"He spoke about how the government needs to work together to deliver the plan, for example, through encouraging businesses to participate in the 'kickstart scheme' of subsidised jobs announced overnight.

"The PM emphasised the government's commitment to delivering a green economic recovery."
London hospital in Boris Johnson's constituency closes A&E after coronavirus outbreak sees 70 staff forced to self isolate

An outbreak of coronavirus infections at a London Hospital in prime minister Boris Johnson’s constituency has led to the closure of its accident and emergency department to emergency patients with 70 hospital staff now in isolation, our health correspondent shaun Lintern reports.

Ambulances and emergency patients are now being diverted to other hospitals across the capital.

In a statement Hillingdon Hospitals Foundation Trust told The Independent: “An outbreak of Covid-19 was declared on Friday 3 July. As of Tuesday, 7 July 70 members of staff were isolating, a number of whom have tested positive for Covid-19.

“As a result, the trust has taken the precautionary decision to close Hillingdon Hospital to emergency ambulances and emergency admissions. The trust is managing the outbreak in line with Public Health England guidance.”
 
Amid outcry over the government's "hypocrisy" in announcing the resumption of arms sales to Saudi Arabia despite alleged war crimes in Yemen, immediately after Dominic Raab's tough talk on imposing sanctions on human rights abusers, the Campaign Against the Arms Trade's Andrew Smith writes for Independent Voices:

"If this is the first test of this government’s new commitment to upholding human rights, then it is one that it has failed appallingly. It is a shameful and morally bankrupt decision by Liz Truss and her colleagues. Over the days ahead, we will be working with our lawyers and exploring all options available to challenge this decision.

"Only yesterday the government was talking about the need to sanction human rights abusers and refusing to ‘look the other way’ when abuses are being inflicted. Today it has revealed how vacuous and hollow these words are, and has shown that it will do everything it can to continue selling arms to a nation involved in one of the most brutal conflicts in the world."

 
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