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The UK is facing its worst recession of the major economies next year and is poised for a recession that much of the rest of the world will avoid, according to a new report from the Organization for Economic Co-operation and Development (OECD). The global economic think tank has sharply downgraded its forecasts for the UK economy, predicting it will contract by 0.4 per cent in 2023 and grow by just 0.2 per cent in 2024. As recently as September, it expected GDP to gradually decrease in the following year. And he warned of the risk of a deeper recession if consumers respond to rising energy and housing costs by cutting spending, taking demand out of the economy, while strikes and labor shortages could further push up prices by fueling wage inflation. It comes as Sir Keir Starmer accused the government of “archiving Britain’s growth” amid predictions that the UK will face the worst recession of the major economies next year.
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‘Challenging’ winter ahead, Sunak warns
Prime Minister Rishi Sunak has warned of a “challenging” winter ahead due to high energy bills, strikes and long NHS waiting lists. Giving an account of the Cabinet meeting, Mr Sunak’s official spokesman said: “Looking ahead to the winter, the Prime Minister said that this will be a difficult period for the country caused by the aftershocks of the global pandemic and the ongoing conflict in Ukraine ». Chancellor of the Duchy of Lancaster Oliver Dowden discussed some of the work “to mitigate some of the challenges expected this winter, including further strike action”. Health Secretary Steve Barclay “outlined some of the issues facing the health system where the pandemic had significantly exacerbated the pressures”. The spokesman said 16,000 people were waiting more than 52 weeks for an operation before the pandemic compared to 400,000 now. Asked if the Prime Minister was worried about inflation, strikes, doctors’ appointments, the official said: “You have highlighted some of the issues that the public will face and these are some of the points that the government is trying to mitigate.” Emily Atkinson22 November 2022 13:31 1669123235
Rishi Sunak warns MPs about Christmas party expenses
Downing Street has warned MPs they will have to justify their expenses to constituents after the Independent Parliamentary Standards Authority said politicians could charge taxpayers for Christmas parties. Rishi Sunak “definitely does not intend” to put food, refreshments and decorations on the expenses, the No 10 told reporters. “The prime minister certainly does not intend to use it and his view is that MPs will want to justify all spending to their constituents,” his official spokesman said. Read the full story below: Thomas Kingsley22 November 2022 13:20 1669122055
John Curtice: What does the autumn budget mean for the next election?
The main aim of Jeremy Hunt’s autumn statement was to reassure financial markets that it was safe to lend their money to the UK government, writes John Curtice. However, a crucial secondary aim was to regain voter confidence, thereby reducing Labour’s large lead in the polls. While the chancellor may have been pleased to see financial markets take his statement in their stride, he will be disappointed that he failed to persuade voters to return to the Tory fold. Rather, it appears that the modest bounce the Conservatives enjoyed when Rishi Sunak replaced the hapless Liz Truss as their leader has stalled. Emily Atkinson22 November 2022 13:00 1669120855
Ypsa “pours gasoline on the fire” with the guidance of the new Christmas party MP
A Labor MP has accused the expenses watchdog of throwing “petrol on the craic fire” after it introduced new guidance allowing MPs to claim their staff Christmas parties for expenses. In a tweet, Labor MP Charlotte Nicholls said: “Sometimes I think IPSA come up with things like this because they think MPs don’t get abused enough. “No one asked for this but what we want is a bigger staff budget and updated staff sickness/maternity policies.” Emily Atkinson22 November 2022 12:40 1669119655
Starmer says he turned Corbyn’s Labor ‘inside out’
The Labor leader said the Labor Party has been turned “inside out” by Jeremy Corbyn’s leadership. Asked by an attendee at the CBI conference if the rest of his party was behind his plans, Sir Keir Starmer said: “The Labor Party has changed, we have turned the Labor Party inside out and that is particularly important when it comes to the way we work with businesses. “I’m telling you loud and clear, this Labor Party has changed, there’s no going back and it’s united behind what we’re trying to achieve.” He described his latest party conference as “the best conference we’ve had, frankly, since 1996”, which came before Sir Tony Blair’s landslide victory in the general election. Emily Atkinson22 November 2022 12:20 1669118455
“We have to make Brexit work,” Starmer insists
Sir Keir Starmer said the current trade deal with the EU was “not working well” but vowed not to bring the UK back into the single market, saying “we have to make Brexit work”. He told the CBI conference: “We’re not going back to the EU. That means we’re not going back to the single market or the customs union. “But we have to make Brexit work, the deal the government has given us is not working well. It’s holding back business, it’s holding back growth.” He said getting a “realistic response” to make the Northern Ireland Protocol work and reducing trade barriers were areas that could deliver improvements. “I believe we can have a better Brexit. I think we have to make Brexit work,” he said. “I think what has happened so far has been a government that has just said the words ‘get Brexit done’ and put in place a deal that I think most people in this room would say is not working well for business, it’s not working good for exports. , doesn’t work well for development.” Emily Atkinson22 November 2022 12:00 1669117855
Starmer refuses to commit to ‘arbitrary’ immigration targets
Sir Keir Starmer said he would not commit to “arbitrary” numbers to reduce immigration.
The Labor leader told the CBI conference: “If what’s driving the numbers is our skills failure, or one of the biggest factors is skills failure, then I think we need to address the skills issue rather than just talking about blokes numbers. “That means if we do it right, immigration will decrease in some of these sectors that are too dependent on immigration, but also we’re not going to hold back business if there’s innovation, technologies, where we need talent from abroad. Emily Atkinson22 November 2022 11:50 1669117255
Starmer acknowledges that flagship policies will take a back seat to prioritize stability
Sir Keir Starmer has admitted that Labour’s flagship policies may have to be shelved because of the economic conditions he would find himself in if he entered No 10.
He told the CBI conference in Birmingham: “We are going to inherit an economy that has been damaged over the last 12 weeks and the last 12 years, and we have to basically accept that as a new government. “Restoring stability is key. There’s a cost to volatility, and we’ve been paying that cost for the last few weeks and the last few years.” This would mean restoring faith in financial institutions and upholding clear fiscal rules. “That stability must be our first priority. If that means there are things – good labor things – that we can’t do as quickly as we’d like, then that’s a consequence of that security.” He said “we will have to be responsible” to clean up the financial mess. Emily Atkinson22 November 2022 11:40 1669116655
Starmer promises “realistic” approach to economic immigration
Sir Keir Starmer said Labor wanted a “realistic” approach to economic immigration, while seeking to ensure British workers had the skills needed to fill vacancies.
He told the CBI conference: “Of course we will be pragmatic. Of course we understand that we need to act now to help businesses and drive growth. “But we have to face up and run to the challenge that is skills, run to the challenge of making sure we get everyone back into the workforce because there are hundreds of thousands of people who are out of work now and only a few were in work years ago. “This is, to me, an economic argument, not a push for political tactics.” Emily Atkinson November 22, 2022 11:30 am 1669116055
Unions must be a critical part of Labour’s partnership, Starmer says
Sir Keir Starmer told businesses that unions “must be a critical part of our partnership”.
After telling the CBI conference that the easing of immigration rules “will come alongside new conditions for business”, the Labor leader said: “We can talk about how that is done, dialogue is at the heart of the partnership. But bargaining with unions will be part of it. “I told the TUC conference my Labor Party is unashamedly pro-business. And I say here today that unions must be a critical part of our partnership. “Our shared aim must be to help the British economy wean itself off its dependence on immigration.” Emily Atkinson22 November 2022 11:20
