Economy

Keir Starmer and Rachel Reeves were adamant that economic growth would be their first priority in government. It is hard to square that with the decisions the Chancellor has announced this week. The Chancellor claims to have discovered a £21.9 billion ‘black hole’ in the nation’s finances, yet she has created the largest part of that sum by deciding to spend £9.4 billion on inflation-busting pay settlements for public-sector workers without asking for reforms in return. This, it seems, is the first Reeves doctrine: pay now to avoid strikes later Junior doctors are to receive a rise of more than 20 per cent, spread over two years. But it is

Chancellor Reeves adamant she will ‘make sure the sums add up’ Rachel Reeves gave an interview with Laura Kuenssberg this morning in which she emphasised the ‘mess’ she says the Conservatives have left behind, and restated that Labour would not spend outside of its fiscal rules. Kuenssberg asked the Chancellor whether she would be prepared to ignore the recommendations of the independent pay review bodies, which have called for a public sector pay rise of 5.5 per cent. Reeves would not confirm the government’s position, but accepted that ‘there is a cost to not settling’ public sector pay disputes, implying she might be open to above-inflation pay increases. What is

Last month India managed to land a spacecraft on the moon for a third of the price of refurbishing Hammersmith Bridge. This startling fact captures both New Delhi’s efficiency and the staggering incompetence of our local councils. It took two years and £9 million (in real terms) to build the bridge. It is set to cost almost £200 million to spruce it up and the work may not be complete until 2030. Hammersmith Bridge has become the perfect metaphor for what’s gone wrong with government: the carelessness, inertia and lack of concern for public money that is rife across the country. The bill for doing up Croydon council’s headquarters was

Jonathan Ashworth has started carrying a card in his shirt pocket. It’s the licence his father was given when he got a job in the 1970s at the Playboy casino in Manchester. ‘It’s silly, really. But it’s just a reminder that my dad was able to start a job as a croupier from a very poor working-class background in Salford and that completely changed his life,’ the shadow work and pensions secretary says when we meet in his Commons office. It was at the casino that his father met Ashworth’s mother – a Playboy bunny girl working as a waitress. ‘Every week, the Playboy bunny girls had to queue up

As mortgage rates surge and a new Opinium poll finds Labour’s lead has jumped to 18 points, Rishi Sunak appeared on Laura Kuenssberg’s BBC show to insist that his plan is the right one. The interview was pre-recorded in the Downing Street garden yesterday, with Sunak commenting on the – now failed – attempted coup by Russian mercenary leader Yevgeny Prigozhin and previewing his government’s long-term NHS workforce plan. However, the main portion of the at times, scrappy interview was spent on inflation and the consequences for mortgage holders. Despite all the current problems, Sunak insisted that he would win the next election Kuenssberg repeatedly asked Sunak whether he would