UK politics live: Reeves insists no new taxes and vows winter fuel U-turn will kick in this winter – UK Times

The Independent’s Whitehall Editor Kate Devlin reports:

Nato secretary general Mark Rutte has told member countries to “we have to go further and faster” on defence spending, amid an expectation the alliance will force Keir Starmer to agree to allocate 3.5 per cent of GDP.

Defence spending “keeps us safe” Mr Rutte told a press conference ahead of a meeting of defence ministers.

On Monday the prime minister’s bold plans to transform the UK’s defences were overshadowed by a row over money after the prime minister failed to commit to a firm date to raise spending to 3 per cent of GDP.

The Labour leader was warned Britain may not be moving quickly enough to counter the rapidly growing threats from countries such as Russia.

Sir Keir and other Nato leaders are under pressure from US president Donald Trump to rapidly increase spending, to wean Europe off a dependence on Washington for military support.

The Independent’s Political Correspondent Archie Mitchell reports:

Rachel Reeves has promised that those made eligible for payments under Labour’s winter fuel U-turn will receive them this winter.

The chancellor said she will set out details of who will be eligible under a more generous means testing system than it put in place last July “as soon as possible”.

And she admitted that, as well as her justification that the U-turn is based on an economic turnaround under Labour, it is also due to “the concerns people had about the level” of eligibility.

She said: “I had to make decisions last year to restore sound public finances, and that involved a number of difficult decisions around welfare, taxation and also public spending – including the decision to means test winter fuel payments so only the poorest pensioners, those on pension credit, got it.

“But we have now put our public finances on a firmer footing. The economy is in a better shape, but we have also listened to the concerns that people had about the level of the means test

.“So we will be making changes to that.

“They will be in place so that pensioners are paid this coming winter, and we’ll announce the detail of that and the level of that as soon as we possibly can.”

The Independent’s Political Editor David Maddox reports:

Gareth Davies MP, shadow Treasury minister, said: “Rachel Reeves is scrambling to salvage her failing economic plan after the Prime Minister has made U-turn after U-turn, punching holes in her credibility.”S

he needed to do better than copying and pasting announcements made by the previous Conservative government. The country is not falling for their lies anymore. Britain deserves better.

“Only the Conservatives believe in sound money, low tax and the ingenuity of our entrepreneurs.”

The Independent’s Political Editor David Maddox reports:

Rachel Reeves has hit back against her critics within and outside the government who warn she needs to raise taxes to pay for Labour’s manifesto commitments.

Despite rows with ministers like deputy prime minister Angela Rayner and warnings from leading economists such as Paul Johnson from the Institute of Fiscal Studies (IFS), Ms Reeves has insisted she will not raise the major taxes.

She was pressed a number of times on the manifesto pledge not to increase income tax, VAT or national insurance but insisted she will stick to her promises.

And despite warnings from cabinet colleagues that manifesto spending plans are now at risk, the chancellor also insisted they are “fully funded and fully costed”.

She was asked: “Are manifesto commitments on policing, housing and energy at risk?”

But Ms Reeves responded: “We made those commitments in our manifesto and we stick to them. All of the manifesto commitments that we made were fully costed and fully funded.”

She highlighted the small taxes which Labour said it would raise in the manifesto to pay for extra investment – VAT on private school fees, cracking down on non-doms and introducing the energy levy

She went on: “Those promises were fully funded. We have raised those taxes to put that money into our public services which is why we can deliver on our manifesto commitments including not increasing the key taxes working people pay – income tax, national insurance and VAT.”

The Independent’s Political Editor David Maddox reports:

Most politicians want to get the bad news out of the way early and have a big positive announcement on the day of a major statement.

But Rachel Reeves has gone the opposite direction. About 20 minutes into her speech she has started listing a string of eye-catching investment in transport across the midlands and the north.

Train stations, tram lines, buses, light rail.

If it comes to fruition then there will be a true renewal of the UK’s less economically productive regions.

The biggest of all is Northern Powerhouse Rail.But cynics will note that similar announcements were made by the Tories in the last 14 years.

The question now will be whether Labour really delivers.

Chancellor Rachel Reeves has defended her stewardship of the economy and the public finances as Labour battles the electoral threat from Nigel Farage’s Reform UK.

Unveiling a £15 billion investment package for the North and Midlands, she said: “The choice is already clear: Where Reform and the Conservatives would gamble with Britain’s future, Labour will invest in that future.

“Where they offer chaos, Labour offers stability.

“Where they offer decline, Labour offers investment.

“And where they offer more of the same, we offer change; change that we can now deliver because of the choices we have made.”

The Independent’s Political Correspondent Millie Cooke reports:

British cities must improve their infrastructure to become more like other European cities if the UK is to succeed, Rachel Reeves has said.

Giving a speech in Manchester, the chancellor warned that the lack of infrastructure in cities like Birmingham, Liverpool and Newcastle put them at a disadvantage compared to the rest of Europe.

“Labour’s strong investment in the past in strongly integrated transport systems, including in London, helps explain London’s global success and also its advantages over other UK cities”, she said.

“And we want London to succeed, but it is the lack of that infrastructure which puts England’s other great cities, Birmingham, Liverpool, Newcastle, at a disadvantage compared to their European counterparts that have this infrastructure, and it helps to explain our under performance relative to other European economies.”

She added: “If we were to increase the productivity of those second cities in the UK, it’s a much the national average. Our economy today would be £86bn pounds larger.”

The Independent’s Political Editor David Maddox reports:

As the chancellor continues to plough on with her speech she desperately tries to repeat as many of Labour’s buzz words even if they have little meaning for those listening.

So far we have had six “working people” references and nine “fiscal rules”.Of course there has been “plan for change” as well, another important line for this Labour government.

There have been a few “fiscal framework” moments too.

It has to be said from the shuffling feet, the people standing behind her appear to be struggling to remain interested in the speech as Ms Reeves carries on.