Summary of the day …
The Labour government has come under fresh pressure to abolish the two-child benefit limit after latest official figures showed a record 1.6 million children were living in families affected by the controversial policy. Work and pensions secretary Liz Kendall said child poverty was a “stain” on the country, but the party has no plans to change the policy. Wendy Chamberlain, the Liberal Democrats work and pensions spokesperson, described the two-child benefit cap as “cruel and counter-productive”, and said her party would continue to campaign to have it scrapped
Environment secretary Steve Reed has said that the party understands why people have been calling for it to scrap the two-child benefit cap, but insisted it needed to maintain “strict spending controls” and begin to generate economic growth before it could commit to doing “other things that we want to achieve for this country” that were not costed in the election manifesto. Poverty campaigners in Scotland added to the demands after figures showed 26,000 families were affected there by the UK government policy
Reed met with privatised water companies in England and Wales today and said they were “signed up” to the Labour government’s “initial package of reforms” for the sector. He said “Firm action should have been taken much earlier to ensure money was spent on fixing the sewerage system, not syphoned off for bonuses and dividends”
Wes Streeting has ordered an independent investigation into the performance of the NHS as figures showed the waiting list for treatment in England had risen for a second month in a row. The health secretary said he wanted the review to reveal the “hard truths” about a service that he described as having been “wrecked”. It will be led by Prof Lord Darzi, previously a health minister for Gordon Brown
The Labour government is grappling with a legal dilemma over its plan to impose an immediate ban on new North Sea oil and gas exploration before the industry’s latest licensing round closes. The government was forced to deny reports that the energy secretary, Ed Miliband, had defied his own officials by ordering an immediate ban on new licences, including those still being considered by the regulator. A spokesperson said the report, published in the Daily Telegraph, was a “complete fabrication” which “invents meetings and decisions that have not taken place”
The number of registered childcare providers in England has fallen over the past year, figures from Ofsted suggest. Education secretary Bridget Phillipson has pledged to deliver a “sea change” in early years provision, and said the new Labour government would recruit more early years staff through a “re-energised” recruitment campaign
Chancellor Rachel Reeves has said she thinks the public would welcome a cut in interest rates from the Bank of England. She said “The Bank of England is rightly independent … But of course, I know that many people who have been struggling with higher mortgage rates after the Conservatives’ mini-budget just under two years ago would welcome some relief with lower mortgage costs”
Former Reform UK deputy leader Ben Habib has reacted badly to being replaced in the role by Richard Tice. Habib said on social media that “I have long held concerns about the control of the party and the decision-making processes”
ScotRail workers and staff on the Caledonian Sleeper are being balloted for strike action in the wake of a pay offer union leaders have said is “derisory”
King Charles visited the Senedd as part of celebrations of 25 years of Welsh devolution
Liberal Democrat leader Ed Davey called for a bank holiday to celebrate if England win Euro 2024 on Sunday. Prime minister Keir Starmer is still in the US for the Nato summit, but confirmed he would be going to Berlin for the match, and said “I don’t want to jinx anything but we must mark it in some way”
The UK has elected its most openly non-religious House of Commons in history, with about 40% of MPs choosing to take the secular affirmation instead of a religious oath to God during their swearing-in ceremony, according to Humanists UK
Thank you very much for all your comments today. I’m calling that a wrap. I will see you tomorrow.
Jillian Ambrose is the Guardian’s energy correspondent
The Labour government is grappling with a legal dilemma over its plan to impose an immediate ban on new North Sea oil and gas exploration before the industry’s latest licensing round closes.
The party swept to power last week with the pledge to end new North Sea exploration licences but its plans have been cast into doubt by the timing of an ongoing licensing round.
The new government will need to decide whether or not to cancel the process, which could end up granting a small number of new North Sea licences in breach of its pledge to end new oil and gas exploration.
But cancelling the mechanism, which is run by the industry regulator, the North Sea Transition Authority (NSTA), could leave the new government vulnerable to a volley of legal action from the companies which may have spent millions preparing their bids.
The government is expected to take legal advice on how to implement its North Sea policy, without risking a legal challenge from oil and gas companies, before taking a final decision on the live licensing round.
A government spokesperson said: “As previously stated, we will not issue new licences to explore new fields. We will also not revoke existing oil and gas licences and will manage existing fields for the entirety of their lifespan.”
The government was forced to deny reports that the energy secretary, Ed Miliband, had defied his own officials by ordering an immediate ban on new licences, including those still being considered by the industry regulator.
The spokesperson said the report, published in the Daily Telegraph, was a “complete fabrication” which “invents meetings and decisions that have not taken place”.
Read more here: Labour faces legal dilemma over plan for immediate ban on new North Sea licences
The Green Party of England and Wales quadrupled their representation in the House of Commons in last week’s general election. Co-leader Adrian Ramsay has just posted to social a clip of his swearing in yesterday, saying he is “ready to press for the action needed on the issues affecting our area, and to hold the government to account” and looking forward to holiding his first constituency surgeries tomorrow.
Yesterday I was sworn in to Parliament. It's an honour to represent the wonderful constituency of #WaveneyValley for @TheGreenParty. I'm ready to press for the action needed on the issues affecting our area, and to hold the government to account.
— Adrian Ramsay (@AdrianRamsay) July 11, 2024
Looking forward to holding my… pic.twitter.com/qPZ6BqOtjn
Siân Berry, who has succeeded Caroline Lucas as the party’s representative in Brighton, will be appearing on BBC Question Time tonight.
ScotRail workers and staff on the Caledonian Sleeper are being balloted for strike action in the wake of a pay offer union leaders have said is “derisory”.
PA Media report the RMT union announced it would be balloting rail workers after staff working for both organisations received what it called “well below inflation derisory offers” which did not “fully reward members for their hard work and dedication”.
Ballots will open next Thursday and will run until 8 August, the union said.
Updated
Reed: 'strict spending controls' necessary until growth allows Labour to do 'other things we want to achieve'
Environment secretary Steve Reed has said that the party understands why people have been calling for it to scrap the two-child benefit cap, but insisted it needed to maintain “strict spending controls” and begin to generate economic growth before it could commit to doing “other things that we want to achieve for this country” that were not costed in the election manifesto.
PA Media quotes him saying:
Of course we understand the pressure for that, of course we understand the difficulties families face because of the wider cost of living crisis.
It is absolutely essential that this Labour government maintains strict spending controls because we have to stabilise the economy after 14 years of Conservative chaos.
It is that chaos and the way they crashed the economy that has left families hurting so much. As we grow the economy, we will be able to spend the additional income on other things that we want to achieve for this country.
The Guardian’s health editor Andrew Gregory has this profile of Prof Lord Darzi, who has been asked to lead the independent review of NHS performance which new health secretary Wes Streeting announced earlier:
Labour have asked Prof Lord Darzi for help with the NHS before. Darzi was “gobsmacked” when Gordon Brown invited him to become a health minister in 2007. Reluctant to quit surgery, Darzi agreed on the condition he could still operate on Fridays and Saturdays.
In 2008, he led a review of the NHS in 2008 that recommended a relentless focus on quality of care. It also called for a shift away from the political command and control of processes, and towards professional responsibility for clinical outcomes.
Improving quality of care is highly likely to feature again as a key theme of Darzi’s 2024 review. However, the NHS he is assessing today is in a far worse state than it was 16 years ago. An estimated 7.60m treatments were waiting to be carried out at the end of May, relating to 6.38 million patients, according to NHS England data published on Thursday.
Beyond hospitals, mental health services, especially for children, are in disarray amid record demand, while community services and ambulance services – two areas often overlooked by ministers – also require emergency treatment.
Read more here: ‘A proper diagnosis’: Prof Lord Darzi, keyhole pioneer asked to unpick NHS
Poverty campaigners in Scotland have added to voices today demanding the new UK labour government scraps the two-child benefit cap after latest official figures showed a record 1.6 million children were living in families affected by the controversial policy.
The Department for Work and Pensions (DWP) figures showed 1,840 more Scottish households are restricted by the 2017 policy which limits child tax credit and universal credit to the first two children in most circumstances than last year. That means 26,000 families were impacted in Scotland overall.
Claire Telfer, head of Scotland at Save the Children Scotland, said: “It’s an outrage that 26,000 families in Scotland are being denied vital support because of the unfair two-child limit, a rise of nearly two thousand families since last year.
PA Media reports she added “More and more children across the country will continue to suffer just because they have siblings, unless the UK government acts now. No child should be cut off from support they so desperately need. The two-child limit is cruel and needs to be scrapped immediately to prevent families from facing hardship and destitution.”
David Hilferty, spokesman for Citizens Advice Scotland, said: “The two-child limit severs the link between need and support, and fails to account for the fluid nature of real lives, leaving families on the edge.
“We see this, day after day, across the Scottish Citizens Advice Bureaux network. We’ve already called on the new Government to end this policy as a matter of urgency to improve the lives of some of the most vulnerable people in our society.”
Earlier Labour’s secretary of state for work and pensions Liz Kendall described child poverty as a “stain” on society, but her party have refused to commit to changing the policy.
We reported earlier that King Charles had visited the Senedd today as part of celebrations of 25 years of Welsh devolution. He gave a speech, which PA Media described as being “peppered with Welsh”. Charles was, of course, Prince of Wales for many decades before being handed the throne.
During the course of the speech he praised the Senedd which he said had become “essential to the life of Wales”, and particularly noted its use of the Welsh language, saying in Welsh “It is – if I may say so – very good to see that the Senedd makes so much use of the Welsh language. Not just as a symbol. But as an essential. The best way to show honour is to make use.”
He also said:
What a country you have to serve. What a unique mosaic of places, landscapes and cultures is entrusted to your care. Welsh minds have indeed been directed to Welsh matters, and the distinct voice of Wales is heard with clarity and purpose.
40% of MPs chose to take secular affirmation instead of religious oath during their swearing-in ceremony
The UK has elected the most openly non-religious House of Commons in history, with about 40% of MPs choosing to take the secular affirmation instead of a religious oath to God during their swearing-in ceremony, according to Humanists UK.
They include Keir Starmer, the prime minister, and 50% of the Cabinet.
47% of Labour and 47% of Lib Dem MPs opted for the secular affirmation, as well as all four Green MPs, both SDLP MPs, and six of nine SNP MPs. By contrast, only 9% of Conservative MPs and one of the five Reform UK MPs chose to affirm.
Just under 6% of MPs gave oaths which indicated they belonged to Muslim, Jewish, Hindu, or Sikh religious traditions. This is broadly representative of society as a whole.
After the 2019 election, 24% of MPs affirmed rather than taking a religious oath.
Andrew Copson, chief executive of Humanists UK, said: “For the first time ever, the number of those affirming versus swearing an oath has come close to reflecting the beliefs of the population as a whole. We’ve known for a while that the UK is one of the least religious countries in the world. We now have one of the least religious national parliaments in the world, too.”
The Conservatives have issued a statement in response to Ofwat’s announcement about rising water bills, and the new environment secretary’s meeting with privatised water companies in England and Wales.
PA Media have quoted the statement like this:
It was the Conservative government that took this country’s first major steps to transform our infrastructure and ensure safer, cleaner waters.
Thanks to our Storm Overflows Reduction plan, storm overflow monitoring had increased to 100% when we left office, 93% higher than when Labour last left office.
We were honest about the costs of cleaning up our waters, and it is a fact that dividends and bonuses from water companies are not sufficient.
On the other hand, now in government, and realising their sums simply do not add up, Labour has no clear plan to tackle the issue.
I must confess I’ve read it several times, and I assume what they are trying to say there is that money saved by reducing dividends and bonues will not cover the entire cost of “cleaning up our waters”, and not that the problem is that dividends and bonuses from water companies were, in themselves, not sufficient. The statement doesn’t really address why “cleaning up our waters” should be an issue that needs a plan, after they themselves had been in government for 14 years.
Politicians in England are currently doing their best to jinx England’s men winning Euro 2024 on Sunday, as prime minister Keir Starmer has now said he wants to “mark the occasion” if England beat Spain on Sunday.
Last year Starmer previously supported calls for a bank holiday when England’s women’s football team made it to the World Cup final in Australia. The argument became moot because the women lost to … Spain.
The prime minister, speaking at the Nato summit in Washington, said: “We should certainly mark the occasion, I don’t want to jinx it. I went to the last Euros final, I don’t want to go through that again. I don’t want to jinx anything but we must mark it in some way. But the most important thing is getting it over the line on Sunday.”
England’s men lost the last final of a European championship on penalties to Italy at Wembley in 2021.
Earlier Liberal Democrat leader Ed Davey called for a bank holiday to celebrate if England lift the trophy. Neither politician appears to have specified clearly whether they are proposing UK-wide celebrations or just something in England.
Updated
Jessica Murray is the Guardian’s Midlands correspondent, based in Birmingham
Richard Parker, the Labour mayor of the West Midlands, said many of the people who voted for independent pro-Palestine candidates at the general election “live in some of the most disadvantaged communities” and “feel that mainstream politics has left them behind”.
He said the key to winning voters back to the party would be improving their lives and boosting their employment opportunities.
“The role I can play is listening to and recognising the concerns of those communities, and what needs to happen if we’re going to build some trust and confidence, and improve people’s lives,” he said.
Parker narrowly beat former Conservative mayor Andy Street in May’s local elections, with the Labour party losing a significant amount of votes to the independent pro-Palestine candidate, Akhmed Yakoob.
Yakoob went on to stand in Birmingham Ladywood at the general election, where he came second and significantly cut Labour’s majority. Longstanding Birmingham MP Khalid Mahmood lost his seat to independent Ayoub Khan.
This week, Parker launched the West Midlands Youth Plan to tackle youth unemployment in the region, which is double the national average in some areas.
The plan includes creating 20,000 job placements and training opportunities for young people, as well as more mental health support and work coaching.
But his plans are being launched against a backdrop of major budget cuts at Birmingham city council, which declared itself effectively bankrupt last year, with consultations under way on the closures of youth centres and libraries across the city.
Parker said he hoped that, under the new Labour government, some of the cuts could be reduced. “I’ve always had the view that the government sent in commissioners to cut too deeply, too quickly,” he said. “I don’t know what the plans are, but I’d be up for conversations about other approaches to this.”
PA Media are carrying some quotes from David Henderson, Water UK chief executive, who said on behalf of water companies in England:
We welcome today’s swift action by the secretary of state. Companies have agreed to his direction that, in addition to turbocharging investment, they put customers and the environment at the core of how they operate.
We will work with government to implement these reforms as quickly as possible and deliver our largest-ever investment plan to secure our water supplies, end sewage in rivers and enable economic growth.
Earlier new environment secretary Steve Reed said companies had “signed up” to the government’s “initial” steps of reform to the water sector in England and Wales.
Transport secretary Louise Haigh is in Manchester today to meet the Greater Manchester mayor Andy Burnham to discuss the government’s plans for buses across England.
In a statement Haigh said:
Buses are the lifeblood of communities, but the system is broken. Too often, passengers are left waiting hours for buses that don’t turn up – and some have been cut off altogether.
Change starts now. This new government will give local leaders the tools they need to deliver better buses up and down the country. Our plan will create and save vital bus routes by giving every community the power to take back control of their bus services through franchising or public ownership.
We are already seeing how the Bee Network is delivering for people across Greater Manchester – we will ensure every community can enjoy the same benefits.
The Bee Network was launched last year to tackle what Burnham called nearly four decades of “the chaos of deregulation”. The north-west of Greater Manchester saw the first franchised routes operating on 24 September, and by January 2025 travel combining buses and the Metrolink trams will be made cheaper and easier and joined up in a contactless fare system.
Burnham said today:
Properly integrated public transport is the key to unlocking growth and opportunity across our city-region, improving the lives of our residents, supporting businesses and delivering greater value for money.
The numbers speak for themselves – our Bee Network has more passengers than ever before and is providing a better service for residents.
Greater Manchester has shown that our pioneering approach works and we look forward to working with the government to put power back into the hands of local communities.
Environment secretary Steve Reed says water companies are 'signed up' to 'initial package of reforms'
The newly appointed environment secretary has said privatised water companies in England and Wales are “signed up” to the Labour government’s “initial package of reforms” for the sector after a meeting today.
Steve Reed is quoted by PA Media as saying:
The new Government will force water companies to tackle illegal sewage dumping into our rivers, lakes and seas. Firm action should have been taken much earlier to ensure money was spent on fixing the sewerage system, not syphoned off for bonuses and dividends.
The decisive steps set out today mean this will never be allowed to happen again. After meetings with water bosses this afternoon, they have now signed up to my initial package of reforms as we work towards cleaning up our water, prioritising the interests of water customers and the environment, and fixing our broken sewage system.
The government earlier published what it said were its first steps to reform the sector. [See 9.03 BST]
Ben Habib, who has been ousted today as deputy leader of Reform UK, and replaced by Richard Tice, doesn’t appear to have taken too kindly to the news. He has posted to social media to say:
I have just been informed by Nigel Farage that Richard Tice is taking over as deputy leader of the party. Consequently I no longer hold that position. I am considering my position more generally in light of this change. I have long held concerns about the control of the party and the decision making processes. I will reflect on all of this.
The key for me is that Reform UK stays true to the promises made to the British people. The movement we have created does not belong to us, it belongs to the people. We are obliged and indebted to the British people.
I have just been informed by Nigel Farage that Richard Tice is taking over as deputy leader of the party. Consequently I no longer hold that position.
— Ben Habib (@benhabib6) July 11, 2024
I am considering my position more generally in light of this change.
I have long held concerns about the control of the party…
Habib came a distant third to Labour’s Gen Kitchen in Wellingborough and Rushden in last week’s election, a seat which Kitchen first won in a byelection in February. That vote was triggered when voters recalled disgraced former Tory MP Peter Bone after he received a six-week suspension from the Commons when an inquiry found he had subjected a staff member to bullying and sexual misconduct. He denied the accusations, and his partner Helen Harrison stood for the Tories in an attempt to retain the seat.
James Cleverly, shadow home secretary, hasn’t made it clear yet whether he will or won’t run to be leader of the party, but he does appear to have just made a bid for the nerd vote among the party membership, with a social media message revealing his interest in Warhammer 40,000
There have been some rumours about me floating around Westminster for some time.
— James Cleverly🇬🇧 (@JamesCleverly) July 11, 2024
There is no point in trying to hide this any longer.
It’s true. #warhammer40k pic.twitter.com/bcVLKoCsEa
More on point for his day job, he has also been posting about migration, saying:
As home secretary, I changed the rules to deliver the largest ever cut to migration. Today, we’ve seen those changes deliver another fall in visa applications, down 48% compared to June last year. We were on the right path, but we can’t let Labour squander our progress.
So far, they’ve scrapped the Rwanda deterrent, opening the doors for the people smugglers and asylum seekers who said they were hoping for a Labour government.
They’ve given an effective amnesty to 100,000 illegal immigrants and now they’re looking to cut a deal with the EU which could mean the UK taking a quota of migrants from Europe.
As home secretary, I worked relentlessly to get a grip on migration and as Shadow home secretary I will do the same to hold this Labour government to account.
Russell Findlay, Conservative party justice spokesperson at Holyrood and a possible candidate for leadership of the party in Scotland, has said that for “years” his party has failed to set out a “positive vision” for Scotland.
Writing in the Scottish Daily Mail, Findlay said:
For Conservatives, this is our chance for a fresh start in Scotland, and we must not waste it. [But] let’s not kid ourselves. Thousands of Scots who previously voted for the Scottish Conservatives chose not to do so this time. I think the simple truth is that over recent years the Scottish Conservatives have focused too much on what we are opposed to, and spent not nearly enough time setting out the positive case for a modern, popular conservatism. That must change.
King Charles and Queen Camilla have visited the Senedd in Cardiff today as part of celebrations for 25 years of Welsh devolution.
They were greeted by children representing schools across Wales, before meeting llywydd Elin Jones and first minister Vaughan Gething.
The number of registered childcare providers in England has fallen over the past year, figures from Ofsted suggest.
Education secretary Bridget Phillipson has pledged to deliver a “sea change” in early years provision, and said the new Labour government would recruit more early years staff through a “re-energised” recruitment campaign.
Labour has said it will repurpose empty or under-used classrooms in primary schools to offer more places at 3,000 new school-based nurseries.
PA media reports education minister Stephen Morgan said: “I know from personal experience just how hard early educators work, and this Government is determined to make early years our top priority, reset our engagement with the sector and set every child on the journey to improved life chances.
“It’s encouraging that uptake of established offers and availability of places look to be heading in the right direction, but there is clearly much more to do to make the plans work for families across the country.”
Businessman Zia Yusuf, who donated thousands to Reform UK over their general election campaign, has been appointed chairman of the party, PA Media reports. Richard Tice moves from the role of chairman to become deputy leader, replacing Ben Habib. Lee Anderson will become the chief whip of the party which has 5 MPs.
Andy Burnham has written for the Guardian today. The mayor of Greater Manchester says:
The historic gathering of England’s mayors with the new prime minister and deputy prime minister around the cabinet table on Tuesday, just a few days after the election, confirms that the 2024 to 2029 parliament is going to be different than any that has gone before it.
At the very start, the clearest of instructions has been sent directly into the heart of the Whitehall system: the devolution of power can no longer justifiably be resisted. If the new government is going to generate the economic growth it needs in all parts of the UK, its regions and nations must be empowered with immediate effect.
Read more from Andy Burnham here: Tory governments talked down to regional mayors like me. Now Keir Starmer is listening to us
Patrick Butler, our social policy editor, has this report on those child poverty figures:
The Labour government has come under fresh pressure to abolish the two-child benefit limit after latest official figures showed a record 1.6 million children were living in families affected by the controversial policy.
Campaigners and charities described the figures as “shameful” and renewed calls for the benefit limit to be scrapped, saying the much-criticised policy introduced by the Tory government seven years ago had become the UK’s biggest single driver of child poverty.
A total of 1.6 million children – equivalent to one in nine of all UK youngsters – were affected by the policy last year, an increase of 100,000, the latest statistics show. Just under two-thirds (59%) of the 450,000 households hit had at least one parent in work.
The policy prevents parents on universal credit claiming benefit support for any third or subsequent child born after April 2017. Currently, this means families lose out on £3,455 a year for each child affected, subjecting many to hunger and hardship.
Joseph Howes, chair of the End Child Poverty Coalition, said: “If the aim is to reduce child poverty, there is no way for the new Labour government to keep this policy in place when the evidence shows that the number of children impacted is increasing year on year.”
He added: “Children living in poverty cannot wait any longer – this shameful policy must be scrapped, the time for action is now.”
Read more from Patrick Butler here: UK’s two-child benefit cap hit 1.6 million children last year, figures show
Suella Braverman has been on GB News, where she has said the country is being “gaslighted” over “the concept of white privilege”, and said Rishi Sunak blocked her from bring down migration when she was in the government.
She said:
There’s an orthodox view, informed mainly by the Treasury, that more people, regardless of where they come from, regardless of what their skills are, regardless of what they’re earning, is necessarily a good thing for the economy in terms of growth.
I fundamentally refute that, because there’s a massive oversight there in terms of growth per capita, which has been declining as the population increases, the cost and the pressure on housing supply, on public services, and also on national identity and cultural cohesion.
In a line deviating from the huge focus that Sunak put as prime minister on has “stop the boats” flagship pledge, Braverman said “I’m very concerned about the exponential rise in immigration, and I’m not talking here about the boats. The boats is a big problem, but the numbers are relatively small compared to legal migration.”
Braverman continued:
I’m very concerned for a whole number of reasons about the unsustainable pace and scale of legal migration. People who come here need to contribute to our culture and to our way of life, and that’s what concerns me.
We’ve got to stop telling the British people that they are racist. We’ve got to stop trying to guilt white people and we’ve got to stop branding all English people as racist.
This concept of white privilege is a nonsense to me. Say that to the white working-class boys in Britain who are the most underachieving when it comes to literacy and numeracy and school outcomes. Say that to young girls in some northern city towns, who were raped and abused by gangs of largely Pakistani Muslim men. So, I think we need to stop gaslighting the British people.
She said she was blocked from lowering migration by Sunak. Braverman, who was twice dismissed from the role of home secretary, once by Liz Truss and once by Sunak, went on to say:
Now for your viewers and for those people who’ve not been in government, let me explain the reality of being in government. You could be the best minister. You could be the most charismatic, cleverest person in the room with the best idea.
I just wanted to deliver a manifesto commitment to lower overall migration. But if the prime minister doesn’t agree with you, if no one around the Cabinet table agrees with you, you’re not getting anywhere. And that is the reality that I came up against.
Earlier this week while in the US Braverman described the Progress Pride flag as a “monstrous thing”, saying she was angered when it was flown over the Home Office against her will, and attacked her fellow leadership hopeful Kemi Badenoch. Badenoch had suggested that Braverman was having a “very public” breakdown.
I did promise not to mention the football too much, but Liberal Democrat leader Ed Davey has just got a bit ahead of himself and called for there to be a bank holiday if England’s men beat much-fancied Spain in the Euro 2024 final on Sunday.
He is quoted as saying:
The Three Lions are playing their first ever final on foreign soil, and if they bring it home, the government should bring home a bank holiday to celebrate. England deserves the chance to celebrate a once in a generation event. Who knows we might even get decent weather.
🦁 🦁 🦁
— Ed Davey (@EdwardJDavey) July 10, 2024
Reeves: BoE is independent, but public 'would welcome' cut in mortgage rates
Rachel Reeves has said she thinks the public would welcome a cut in interest rates from the Bank of England.
Asked by broadcasters during a visit to Darlington whether the Bank should reduce rates next month, Reeves said:
The Bank of England is rightly independent. I was an economist at the Bank of England for many years before I became an MP and so I respect that independence.
But of course, I know that many people who have been struggling with higher mortgage rates after the Conservatives’ mini-budget just under two years ago would welcome some relief with lower mortgage costs.
Chancellor Rachel Reeves has been speaking during a visit to Darlington, and has welcomed the reported rise in GDP in May of 0.4%.
She told broadcasters:
It’s welcome to have an increase in GDP. So important after the last few years of a flatlining economy. But there’s clearly more work to be done.
That is why in my first speech as chancellor I announced significant planning reforms, ending the moratorium on onshore wind, reintroducing housing targets, calling in planning decisions on housing and datacentres so we can get Britain building again, so we can grow our economy, which means we can improve living standards and have the money we need for our public services.
Just got started. There’s a lot more to do. I hope that the plans that I set in motion this week is what is needed to grow our economy and create good jobs right across the UK.
I’ve been in post for a week now. We’ve done more to reform the planning system in the first 72 hours I was in this role than the previous government did in 14 years.
We’ve got off to a good start, and businesses have welcomed our plans. I’m determined to do what’s needed.
Lib Dems: two-child benefit cap is 'cruel and counter-productive'
Wendy Chamberlain, the Liberal Democrats work and pensions spokesperson, has described the two-child benefit cap as “cruel and counter-productive”, and said her party would continue to campaign to have it scrapped.
The MP for North East Fife said:
The Conservative government trapped hundreds of thousands of children in poverty with their cruel and counter-productive two-child limit.
The Liberal Democrats will keep campaigning to scrap it, which would be the quickest and most cost-effective way to lift children out of poverty with huge long-term benefits for our society and our economy.
Labour has said it wants to tackle child poverty in government, but has refused to abolish the cap.
Child Poverty Action Group chief: Labour cannot wait to 'align every star' before scrapping two-child benefit cap
The Child Poverty Action Group report into the two-child benefit cap is called Things Can Only Get Worse, and can be downloaded here.
They list these as the key points included:
Seven years after the introduction of the two-child limit, there are almost 1.6 million children in 440,000 families affected by the policy. These families are missing out on up to £3,455 a year per child
The majority of families affected by the policy are living in poverty, despite 59 per cent of these families having one or both parents in paid work
Affected families report not being able to provide for children’s basic needs, including food, clothing and heating. The policy also means families struggle to pay for housing and childcare
The policy affects every area of children’s lives. Parents report that children’s education, mental health, and learning and development are all negatively affected by the two-child limit. Children are also missing out on the “every day” experiences of childhood such as days out with their family, being able to go on holiday, or having the occasional treat such as an ice-cream
Abolishing the two-child limit is the most cost-effective way to reduce child poverty, and the most urgent action the government must take to reduce child poverty. It would lift 300,000 children out of poverty and mean 700,000 children are in less deep poverty, making a significant difference to the lives of over a million children at a cost of £1.7bn
PA Media reports that Rev Martyn Snow, Bishop of Leicester, said: “The testimonies in this report remind us that the two-child limit continues to affect the wellbeing and life chances of too many children and families in this country. Abolishing this unfair policy is essential if we are to turn the tide on poverty and ensure that every child is supported to flourish in all areas of life.”
Chief Executive of Child Poverty Action Group Alison Garnham is quoted as saying: “Children are losing their life chances to the two-child limit now. They can’t wait for the new Government to align every star before the policy is scrapped. Keir Starmer came to office pledging a bold, ambitious child poverty-reduction plan and there’s no way to deliver on that promise without scrapping the two-child limit, and fast.”
Prime minister Keir Starmer is in the US for the Nato summit. My colleague Amy Sedghi has just kicked off our live coverage of that over here.
Kendall: child poverty 'stain on society' as figures reveal 1.6m children across UK affected by the two-child limit on benefits
More than one and a half million children across the UK are affected by the two-child limit on benefits, figures show as the new Work and Pensions Secretary branded child poverty a “stain on our society”. It is not Labour policy to abolish the cap.
Liz Kendall, appointed to the role last week, said:
Too many children are growing up in poverty and this is a stain on our society. We will work to give every child the best start in life by delivering our manifesto commitment to implement an ambitious strategy to reduce child poverty. I will hold critical meetings with charities and experts next week to get this urgent work under way.
The figures come as the Child Poverty Action Group (CPAG) said its survey of 560 families hit by the policy reveals “the deep suffering and deprivation it’s causing”.
Almost all of them (93%) said the policy had affected their ability to pay for food, while 82% said it meant they struggle to cover gas or electricity bills. Almost half (45%) of respondents said they struggled to pay their rent or mortgage because of the policy while (46%) told of struggles to manage childcare costs.
The Resolution Foundation has calculated that abolishing the two-child limit would cost the Government somewhere between £2.5bn and £3.6bn but said it would be one of the most efficient ways to drive down child poverty rates”, estimating that if abolished it could lift 490,000 children out of poverty.
PA Media reports figures published on Thursday by the Department for Work and Pensions showed there were 1.6 million children living in households affected by the policy as of April this year, up from 1.5 million to April 2023.
Of these, 52% of children were in households with three children, 29% in households with four children, and 19% are in households with five or more children.
Before becoming prime minister, Keir Starmer said he would ditch the two-child limit “in an ideal world” but added that “we haven’t got the resources to do it at the moment”.
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There have some harsh words flying around this morning as Conservatives jockey for position for the forthcoming leadership battle, with GB News the pulpit of choice.
Former MP Andrea Jenkyns told viewers of the channel she was supporting Suella Braverman or Priti Patel to be the next leader.
She said of Kemi Badenoch that she was “just a party stooge. She voted for all Theresa May’s deals. She voted for more Net Zero. Look how she behaved with Boris, immaturely in those text messages, trying to get people to resign.”
With a hint of conspiracy theory in the air, she continued about Badenoch “Kemi was a London Assembly Member. Why is there nothing online? Why does her internet history seem to have been wiped prior to Brexit? That’s what I’d like to know.”
Jenkyns added “I think what we’ve seen over the last 18 months really is that we need some red meat policies. Look how people went to Reform,” and said “I certainly don’t want Victoria Atkins. I don’t like her whatsoever. She’s just so damned rude, I’m afraid.”
Jacob Rees-Mogg has also popped up with his tuppence worth, arguing the party needs to move further to the right, rather than to the centre. He said:
Reform merely connected with the voters we failed to inspire. It should surely be number one on our agenda to win Reform voters back into the Tory party.
And we don’t win elections from the centre. Any attempt to indulge that narrative that our only problem was drifting too far to the right is fanciful.
If the next leader takes that view, he or she should expect to lose even more seats.
It is unclear the extent to which the next leader of the Conservative party will be open to advice from former MPs who lost their seats last week.
If the Tory leadership contest is held under the existing rules, then neither Rees-Mogg nor Jenkyns will be in a position to vote on a new leader until the proposition is put to party members for a final vote between two candidates that have been selected by those who were elected to be MPs last week.
Streeting: NHS performance investigation will be 'the survey, before we draw up plans to rebuild it anew'
Here is a little bit more from health secretary Wes Streeting about plans for an independent investigation into the performance of the NHS, which is to be led by former health minister Lord Ara Darzi.
Streeting stressed that Darzi has “more than 30 years’ experience in the NHS and is perfectly placed to conduct this important work” and has been asked to tell “hard truths”.
Streeting wrote:
The NHS and my department have been instructed to hand him whatever information he needs.
It is going to take time to turn the NHS around – we were honest about that before the election. Sticking-plasters will not be enough to heal it. It will require fundamental reform.
We have pledged a ten-year plan to make the NHS fit for the future, which we will be consulting patients, experts and staff on soon.
The NHS has been wrecked. This investigation will be the survey, before we draw up plans to rebuild it anew, so it can be there for all of us when we need it, once again.
Incidentally as part of its announcements this morning, as well as indicating that water bills in England and Wales would rise by £94 on average in England and Wales over the next five years, Ofwat also announced that it was putting Thames Water into special measures due to “significant issues”.
Nigel Farage started his stint in parliament with a self-deprecating reference to those who “have tried many times over the years to get here” before veering into an attack on former speaker John Bercow, but my colleague Jennifer Rankin today writes that in Westminster he will not be able to get away with the kind of rudeness he made routine in the European parliament.
Read more here: Nigel Farage will not be allowed to repeat his EU parliament rudeness as an MP
Forbes: SNP needs to look at 'why and how we didn’t inspire the number of voters to vote for us' as party would have liked
Scotland’s deputy first minister Kate Forbes appeared on BBC Radio Scotland’s Good Morning Scotland programme earlier, and said it was “early days” for the SNP to draw conclusions from its performance in the general election, but some things were “obvious”.
The party lost 38 seats and its position as third largest party in the House of Commons, returning just 9 SNP MPs to Westminster.
Forbes told listeners:
It is early days, but I think there’s a few things that are quite obvious. The first is that this was an election for change, and therefore it’s incumbent on us to look at how we need to change as well.
Secondly, this was around regaining and earning, again, the trust of the Scottish people. So we need to look at why and how we didn’t inspire the number of voters to vote for us as we might have liked.
I do think it’s a change in ensuring our policy agenda matches the public’s priorities.
I think it’s allowing John Swinney – who was only in post two weeks before the election was called, I think I was in post ten days before it was called – allowing him to set out and deliver on his agenda of tackling poverty, of economic growth, of ensuring our public services are robust and resilient.
And then perhaps the third one is, I’m a democrat and the secret ballot never lies, and therefore we need to take on board the message that the public have sent us in preparation for 2026.
The SNP leader in Westminster, Stephen Flynn, made a joking reference to the number of seats the party lost when the Commons sat on Tuesday to elect the speaker, saying “I wish to begin by welcoming all new members to the Chamber, in particular those from Scottish constituencies. There are probably a few more new members from Scottish constituencies than I would have liked.”
The waiting list for routine hospital treatment in England has risen for the second month in a row, PA Media reports.
Under Rishi Sunak’s government an estimated 7.60 million treatments were waiting to be carried out at the end of May, relating to 6.38 million patients – up slightly from 7.57 million treatments and 6.33 million patients at the end of April, NHS England said.
Health is devolved.
The House of Commons is open again for MPs to be sworn in. Regular readers will know that when I am doing the UK politics live blog, even when it isn’t polling day, it takes very little encouragement for me to include dogs. So if you missed it, I thought you might enjoy this video clip of Steve Darling, the new MP for Torbay, being sworn in yesterday alongside his faithful guide dog Jennie. Jennie did not have to take an oath.
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Tory MP Chris Philp has also chipped in to say that GDP growth of 0.4% in May shows that the “new government inherits a strong economic legacy – any claim they may try to make to the contrary is nonsense.”
Very strong growth numbers just out for May. UK growth was top of the G7 in Q1, inflation at 2% on target & below Eurozone/US and unemployment (~4%) half the 2010 level (~8%). New Govt inherits a strong economic legacy - any claim they may try to make to the contrary is nonsense pic.twitter.com/wWXuFwrYjD
— Chris Philp MP (@CPhilpOfficial) July 11, 2024
Shadow chief secretary to the Treasury Laura Trott has also commented on the news that the UK economy returned to growth in May in the last weeks of Rishi Sunak’s government.
PA Media report Trott said:
Today’s figures show that the steps we put in place whilst in government have strengthened the economy.
These figures also prove Labour are inheriting an economy turning a corner, after the many difficult decisions we took in government.
We will keep Labour to the promises made in the campaign not to raise taxes on working people. As Rachel Reeves, the new Chancellor, herself recognised, the books were open.
Part of the Conservative’s election campaign was a press conference where Trott produced a dossier about so-called “Labour tax traps”, suggesting the party had “18 secret taxes” planned if it came to power.
If you fancy something for your ears, I can recommend senior political reporter Peter Walker and Kiran Stacey, the Guardian’s political correspondent talking to Helen Pidd about the Tory leadership battle.
Listen here: Today in Focus – The Conservative party: rows, resignations … and a tilt right?
'The NHS has been wrecked': Streeting announces independent investigation into performance
An independent investigation will be held into the performance of the NHS, health secretary Wes Streeting has announced in an article in the Sun.
He wrote:
It’s clear to anyone who works in or uses the NHS that it is broken. Unlike the last government, we are not looking for excuses. I am certainly not going to blame NHS staff, who bust a gut for their patients.
This government is going to be honest about the challenges facing us, and serious about solving them.
Honesty is the best policy, and this report will provide patients, staff and myself with a full and frank assessment of the state of the NHS, warts and all.
Streeting said the investigation would be led by the former health minister Lord Ara Darzi, who served under Gordon Brown between 2007 and 2009.
Health is devolved. It was unclear from Streeting’s article in the Sun whether he was only referring to England, or whether it was to be an over-arching review that would take into account health outcomes and spending in Scotland, Wales and Northern Ireland.
Those of you with a keen interest in media ownership might find this worth reading, as Jane Martinson writes an analysis piece on the forthcoming second auction of Telegraph Media Group.
On water bills, consumer council for Water chief executive Mike Keil has said:
Millions of people will feel upset and anxious at the prospect of these water bill rises and question the fairness of them given some water companies’ track record of failure and poor service.
Over the summer we’ll be carrying out research with customers of every water company to gauge whether they feel the regulator’s proposals are affordable and deliver what people want. We expect Ofwat to listen and act on what customers tell us.
Steve Reed, Labour’s new secretary of state for environment, food and rural affairs, is due to meet water bosses today.
Ofwat chief David Black was on Sky News earlier, and he claimed the regulator had pushed back on company plans, and that there would be significant investment. He said:
We look forward to working with the government. The Environment Agency has criminal power to take action against companies. We think there’s a strong case for extending that to company senior leadership. We look forward to working with the government as they work through their special measures package.
However he warned that legal action was not “a magic bullet”. He said “We need to see the investment. We need to see companies own the problem. We need to see them taking action. That’s what we’re focused on.”
Environment secretary Steve Reed announces first step of Labour reform of water sector
The Labour government is telling privatised water companies in England and Wales that they must ringfence funding for infrastructure upgrades, and stop diverting money to bonuses, dividends or salary increases.
In a statement, the new secretary of state for environment, food and rural affairs, Steve Reed says:
We will never look the other way while water companies pump sewage into our rivers, lakes and seas. This unacceptable destruction of our waterways should never have been allowed, but change has now begun so it can never happen again.
Today I have announced significant steps to clean up the water industry to cut sewage pollution, protect customers and attract investment to upgrade its crumbling infrastructure. That change will take time. Over the coming weeks and months, this Government will outline further steps to reform the water sector and restore our rivers, lakes and seas to good health.
The government announcements says Reed has written to water companies to tell them “to make sure funding for vital infrastructure investment is ringfenced and can only be spent on upgrades benefiting customers and the environment”. He also told Ofwat “to ensure that when money for investment is not spent, companies refund customers, with money never allowed to be diverted for bonuses, dividends or salary increases.”
The government is proposing that private water companies “change their ‘articles of association’ to make the interests of customers and the environment a primary objective.”
The full statement can be read here. Reed promoted it on social media with the message “Change has begun”.
Change has begun.https://t.co/Vq4NJ0XwvH
— Steve Reed MP (@SteveReedMP) July 11, 2024
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Security minister Dan Jarvis said it was important that privatised water companies in England and Wales invested money in infrastructure and not in bonuses for executives.
He told Sky News viewers:
I think there’s a very strong sense, and I know this from talking to people throughout the course of the election, that our water companies have not provided the level of service that we expect.
Bills are too high. There are huge concerns about the illegal dumping on waterways.
There is a weight of political pressure to ensure that bills are kept to an absolute minimum, and where there is money that is available to be invested, that needs to be focused on investing in our infrastructure, not on bonuses for chief executives.
In England and Wales the water and sewerage industry was privatised in 1989 under Margaret Thatcher’s government.
Lib Dems call for 'insulting' water price rises in England and Wales to be blocked
Liberal Democrat environment spokesperson Tim Farron MP has reacted to the water bill rises in England and Wales, saying:
Any insulting price hikes by water companies must be blocked. It is a national scandal that these disgraced firms are demanding more money from families and pensioners in a cost of living crisis, all whilst dumping raw sewage into our rivers.
After years of Conservative ministers letting these shameful polluters get away with it, we now need tough action, starting with a ban on bonuses and a block on large bill hikes.
Communities spoke loudly at the election, demanding an end to the sewage scandal and water firms stuffing their pockets with bonuses and dividends. The government and regulator must listen to the country.
The Liberal Democrats made water a key plank of their election campaign, with Ed Davey’s notorious stunt of falling into water while paddleboarding just one of the ways they attempted to draw attention to their policies on it. During the campaign the party called for Ofwat to be abolished and a new water regulator established with greater powers.
Water bills to rise by £94 over next five years in England and Wales
Water bills in England and Wales will rise by an average of £94 over the next five years, in plans set out by the regulator, as under-fire water companies charge customers to pay for investment to stop sewage spills and fix leaky pipes.
The sum is a third less than the increases requested by companies, and amounts to a rise in bills of about £19 each year over the period.
It came in a review by Ofwat, which examined the spending plans of English and Welsh water companies for 2025-30. The plans were submitted last October, and Thursday’s report represents Ofwat’s draft view, with a final decision scheduled for December.
The biggest bill increase Ofwat allowed were from Southern Water, with a £183 rise to £603, Dŵr Cymru in Wales, which will increase bills by £137 to £603, and Hafren Dyfrdwy, rising by £128 to £524. Southern and Thames will be allowed to add a further £16 and £5 to bills respectively if their plans meet certain criteria with Ofwat.
Bills will rise for customers of all water companies in England and Wales, apart from those of Wessex Water and Sutton and East Surrey Water.
Read more here: Water bills to rise by £94 over next five years in England and Wales
Conservative MP Gareth Davies hails GDP figures, says they showed Sunak government had 'turned a corner' on economy
Gareth Davies has been doing the media round for the Conservatives this morning. He doesn’t haven’t have a shadow cabinet role yet, but the MP for Grantham and Bourne was previously a treasury secretary in the last government. He said the GDP figures were good news.
He said they “exceeded expectations” and showed the government he was part of were right to claim that under them the economy had “turned a corner”.
Put to his that the figures suggested it was a mistake for Rishi Sunak to have called an election when good economic news was around the corner, he said “the economy is just one factor”. He said it was “other people to reflect and assess” whether it had been the right decision, adding “it was going to be this year at some point, wasn’t it?”
Chancellor Reeves: not a 'minute to waste' on 'national mission' of delivering economic growth
The new chancellor Rachel Reeves has responded to the GDP figures, which showed the UK headed back to growth in May during the closing last days of Rishi Sunak’s government. She said:
Delivering economic growth is our national mission, and we don’t have a minute to waste.
That is why this week I have already taken the urgent action necessary to fix the foundations of our economy to rebuild Britain and make every part of Britain better off.
A decade of national renewal has begun, and we are just getting started.
GDP grew 0.4% in May 2024. Services (+0.3%), production (+0.2%) and construction (+1.9%) all grew on the month.
— Office for National Statistics (ONS) (@ONS) July 11, 2024
Read the release ➡️ https://t.co/Txf0zBQFiU pic.twitter.com/zr4cORpL3r
My colleague Julia Kollewe has our business live blog today, which will be following reaction to those figures closely …
Speaking on LBC this morning, security minister Dan Jarvis has said criticism of Keir Starmer’s defence spending plans were “unfair”.
Starmer was accused of hypocrisy after pressing Nato allies to up their spending commitments, when his new government have not put a date on when spending will rise to 2.5% of GDP in the UK.
Jarvis said:
The prime minister has made a cast-iron guarantee that we will get to the point where we are spending 2.5% on GDP on our defence capabilities, but we think that these things should be done properly.
I personally think it’s inconceivable that the [size of the] British army would go down, but that is precisely why you need a proper process at work to look at the capabilities that you have.
Security minister Dan Jarvis: Tories 'hollowed out' our armed forces
Security minister Dan Jarvis has accused the former Conservative government of hollowing out the country’s armed forces while reiterating that the new Labour administration would carry out an armed services review “very quickly”.
Saying “there is nothing that we take more seriously than our national security”, he told Sky News viewers:
The prime minister and my colleague, defence secretary John Healey, have made a commitment that a review will be initiated very quickly. It’s important that we follow the process and look carefully at the nature of the threat our country faces, and the resources that will be required to be put in place.
It is an important process and it will take a period of months. The British army is now smaller than any point since the Napoleonic war. We need to do this properly. Our armed forces have been hollowed out in recent times.
Challenged that current plans suggest it might take a year to get a review in place, when army leadership says it could be done in a matter of weeks, Jarvis said “We’re not in the business of cutting corners. We need to look at the complex nature of the threat that we face.”
Jarvis added:
Call me old fashioned, but I believe in process. I believe in doing things properly. And that’s what this government will do. We will do things properly. There will be a comprehensive process of review, and then we will make sure that the correct resource is allocated to meet the findings of that review.
Welcome and opening summary …
Good morning, and one week after the country voted for a change of government in the general election, new MPs will continue to be sworn into the House of Commons today. Here are your headlines …
Enough to make Rishi Sunak weep, the first set of GDP figures to be published during Keir Starmer’s time as prime minister shows the UK economy returned to growth in May, just when the former PM decided to gamble on an election
Starmer has said he is “shocked” about the prison crisis his government has inherited
Suella Braverman has attacked her fellow leadership hopeful Kemi Badenoch over shadow cabinet leaks
Household water bills in England and Wales are to rise by an average £19 a year over the next five years under draft proposals announced by Ofwat
The House will meet at 9.30am for swearing in, with the Table Office saying today is “likely to be the best opportunity for new members who have not already done so to take the oath or affirm”. The Lords are not sitting.
The Scottish parliament is in recess from 29 June to 1 September. The Windsor framework democratic scrutiny committee is sitting in Stormont. A cross-party group on Hospice and Palliative Care has a meeting in the Senedd. The Post Office Horizon IT inquiry is not sitting today.
It is Martin Belam with you for the next few hours. The best way to get my attention is via email, especially if you spot typos, errors or omission. You can reach me at martin.belam@theguardian.com.
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