Newslinks for Friday 14th February 2025 | Conservative Home

Modest UK growth reprieve leaves Reeves on defensive ahead of Spring Statement…

“Official figures showing the UK avoided a recession at the end of last year provided only a fleeting reprieve for Rachel Reeves, as the chancellor grapples with a sluggish economy, weak business sentiment and an unforgiving budgetary outlook. The economy grew by 0.1 per cent in the final three months of 2024 after a surprisingly strong gain in GDP in December, the Office for National Statistics said on Thursday…Sterling rose immediately after the data release. But analysts warned that the figures would do little to dispel the broader malaise surrounding the economy and its harsh implications for the public finances. Preliminary forecasts from the Office for Budget Responsibility show Reeves has lost the fiscal “headroom” she had in October…” – The Financial Times

• Reeves is backed into a corner on the economy – the six problems that put her there – The I
• Ministers ‘mission-washing’ spending plans to avoid cuts – The Guardian
• These growth figures are a disaster for Reeves – Editorial, The Daily Telegraph
• Labour needs a growth plan for the north – Jennifer Williams, The Financial Times

…as the Prime Minister backs her over expenses ‘scandal’ in banking job…

“Sir Keir Starmer has backed Rachel Reeves after she was accused of using company expenses to buy gifts for colleagues and having a “very cavalier attitude regarding the budget” before she became an MP. A former human resources head at Halifax Bank of Scotland (HBOS) confirmed to The Times that claims that Reeves was forced to leave the company over an expense scandal were “absolutely true”, adding that the chancellor’s department “had a culture of misuse of spending”. She said Reeves was a “wrong fit in personality, relationships and capacity” at the banking and insurance company…On Thursday it emerged that the chancellor was allegedly named in a six-page whistleblower’s complaint which accused…of using expenses to “fund a lifestyle” of dinners, events, taxis and gifts.” – The Times

• The Chancellor’s LinkedIn profile also changed after BBC says she spent five and a half years working at the central bank – The Financial Times
• Four unanswered questions about Reeves’s expenses – The I

…as Starmer is told his defence budget ‘won’t touch the sides’…

“Military chiefs have warned Sir Keir Starmer that the Government’s defence spending plans “won’t touch the sides”, Whitehall sources have revealed. Labour has pledged to raise defence spending to 2.5 per cent of GDP, but is yet to set a date to implement the increase. Donald Trump has called on Nato nations to spend 5 per cent on defence in his effort to force Europe to take on more responsibility for Ukraine. The Telegraph understands that the Government’s delay in raising defence spending and its refusal to agree to more than 2.5 per cent has led to fears among military chiefs that the Armed Forces will be unable to meet current targets. “This 2.5 per cent figure won’t touch the sides,” a senior Whitehall source told The Telegraph.” – The Daily Telegraph

• 5,000 troops ‘cobbled together’: the reality of UK peacekeeping in Ukraine – The I
• If Europe wants to diverge from the United States over issues such as Ukraine, it must accept that the era of the peace dividend is dead – Editorial, The Times
• Time for Starmer to get real on defence – Editorial, The Daily Mail
• Trump’s taking charge of ending the war – and Europe is in no position to complain – Editorial, The Daily Telegraph
• Trump will force a fiscal reckoning on Labour – Stephen Bush, The Financial Times
• Starmer shows he must bite bullet on defence – Patrick Maguire, The Times
• Britain will not thrive in a might is right world – Robert Shrimsley, The Financial Times
• Trump has shown us that the Labour Party drastically needs to wake up now – James Cartlidge, Daily Express

>Today:

…and as his government is to ‘wait and see’ in the face of Trump tariffs announcement

“The UK government will “wait and see” whether tariffs announced by Donald Trump “actually come to pass”, a senior minister said. The US president announced what he called “reciprocal tariffs” on all other countries on Thursday evening, claiming it was “fair to all”. But it was unclear how this would apply to the UK, especially as Trump suggested his policy regarded VAT as a tariff. Pat McFadden, chancellor of the Duchy of Lancaster and one of Keir Starmer’s most senior ministers, told Sky News it was important not to “overreact” to the announcement from the White House… McFadden would not be drawn on whether the UK planned to retaliate, saying it was “premature” to talk about the possibility.” – The Guardian

Rayner reportedly told about offensive WhatsApp joke in 2022

“Angela Rayner was told nearly three years ago that the sacked minister Andrew Gwynne had made a “derogatory” joke about her on an offensive WhatsApp group, the Guardian has been told. The deputy prime minister was told separately by two local councillors about the lewd message about her by Gwynne, her neighbouring MP in Greater Manchester. One source said Rayner, then deputy leader of the opposition, was shown Gwynne’s vulgar post by a Labour councillor who was disgusted by it. Rayner is said to have replied: “I’ll deal with it in my own time.” It is understood that Rayner has no recollection of being shown the image but does not dispute being told that people were making personal comments about her.” – The Guardian

UK may need fewer regulators, Reynolds suggests

“Business secretary Jonathan Reynolds suggested the UK has too many regulators, as he called on the country’s under-fire competition watchdog to be “more agile”. Reynolds hinted that ministers have been mulling a wider reshaping of Britain’s regulatory landscape, saying: “We have to ask the question: have we got the right number of regulators?” His comments come as the government set out a much-anticipated mandate for the Competition and Markets Authority, the antitrust regulator whose chair was ousted by Reynolds last month. Ministers want the CMA to be more focused on growth and supporting UK investment, and to “minimise uncertainty for business”, he said. The government published its draft “strategic steer” for the CMA on Thursday…” – The Financial Times

• He gives a grim warning to younger generations as the economy continues to stutter – The Sun

Ministers push for easier mortgage rules to help first-time buyers

“Ministers have backed plans to make it easier for banks to lend money to first-time buyers, calling on regulators to ease mortgage restrictions. In a letter to the Financial Conduct Authority, Treasury ministers said they wanted the regulator to announce “ambitious and rapid” changes to rules that limit how much first-time buyers can borrow from a lender. The Treasury confirmed that it was preparing to announce a “permanent” mortgage guarantee scheme which allows some buyers to purchase a property with a deposit of just 5 per cent of the property’s value. Financial experts said rules about lending are too restrictive and make it more difficult for first-time buyers to get on the housing ladder, even if they can afford their monthly mortgage payments.” – The Times

Lord Hermer fought for compensation for al-Qaeda chief linked to July 7 bombings

“Lord Hermer sought compensation from the British government for an al-Qaeda chief linked to the July 7 terror attacks, it has emerged. The Attorney General acted for Rangzieb Ahmed, a convicted terrorist, when he tried to sue the government for alleged torture by Pakistan. The 2020 case centred on whether the police, security services and government departments in the UK should have “joint liability” for the alleged actions of Pakistan… If “joint liability” had been established, Ahmed, now 49, might have been entitled to a payment of significant damages in his prison cell from the taxpayer. Once described as Osama bin Laden’s right-hand man and the head of al-Qaeda in Europe, Ahmed was the first person in Britain to be prosecuted for “directing” terrorist offences.” – The Daily Telegraph

Labour considering ‘crackdown’ on farmers’ access to shotguns

“Labour is considering a crackdown on access to shotguns after a spate of shootings in a move that could hit farmers and rural communities The Home Office is to consult on tougher licensing conditions for shotgun owners that could make them as restrictive as those for owners of powerful bolt-action rifles. Countryside campaigners fear it would amount to another attack on farmers and rural workers by making shotgun ownership more expensive, limited and bureaucratic… On Thursday, Dame Diana Johnson, a Home Office minister, announced that it will consult on proposals to have “closer alignment” of the controls on firearms including rifles and shotguns. The previous Tory government had originally ditched the plans.” – The Daily Telegraph

‘Death tsar’ proposal energises opponents of assisted dying bill

“Assisted dying panels will be able to sit in private and the patients involved will be able to ask for a second opinion if their request to end their own lives is refused, under proposals put forward by the architect of the bill. A “voluntary assisted dying commissioner” would oversee review panels that would replace the role of the High Court in changes put forward by Kim Leadbeater, the Labour MP who is proposing a change in the law. The removal of the requirement for a High Court judge to sign off requests to die has energised opponents of the bill, who have accused Leadbeater of breaking one of the central pledges of the original legislation… The changes are included in a series of amendments tabled by Leadbeater setting out how the review panels will work in practice.” – The Times

MPs group behind controversial Islamophobia definition on brink of collapse

“The group of MPs behind a controversial definition of Islamophobia is on the brink of collapse after its only Tory member resigned, The Telegraph can reveal. Robbie Moore has quit as co-chairman of the All-Party Parliamentary Group (APPG) on British Muslims after he was not consulted on a statement that criticised Kemi Badenoch, the Conservative Party leader. In a letter to Sarah Owen, his Labour co-chairman, Mr Moore said he felt “completely undermined” and insisted there must be an “open and frank discussion” on grooming gangs. The APPG’s list of parliamentary members is now made up only of Labour and independent MPs and peers… Mrs Badenoch urged Sir Keir Starmer not to enshrine the definition in law last month…” – The Daily Telegraph

News in Brief:

• Will Miliband see sense and drill British gas? – Ross Clark, The Spectator 
• Munich Security Conference finds Europe in a dismal state – Aris Roussinos, UnHerd
• More than just a figurehead – Marcus Walker, The Critic
• No, Prime Minister – politicians will never reform Whitehall – Tim Knox, CapX
• When will Labour tell the truth about Scotland? – Chris Deerin, The New Statesman
• Blue Labour – Scott Goetz, Pimlico Journal