Windfall tax 1) Sunak says Tories are now the party of big spending
“Rishi Sunak has boasted of spending and taxing more than Labour would to help households through the cost of living crisis, as he unveiled a £21 billion package of support. The Chancellor announced £400 off energy bills for every household, plus payments of £650 for people on benefits, £300 for pensioners and £150 for those with disabilities. The extra spending commitments were made as the Chancellor vowed to increase Universal Credit and state pensions next year in line with inflation, potentially costing another £15 billion. To help fund the intervention, Mr Sunak announced a windfall tax on oil and gas companies – confirming an about-turn on a policy the Government had opposed for months. But by the Treasury’s own estimates, the windfall tax will only raise around £5 billion this year, creating a black hole in its finances to be filled by more borrowing.” – Daily Telegraph
- Sunak unveils £15bn support package after windfall tax u-turn – The Guardian
- How Johnson gathered the ‘ammunition’ to get Sunak to open his wallet – Daily Telegraph
- Chancellor’s support package leaves middle-class families £3,100 short – Daily Telegraph
- Sunak engages in ‘serious redistribution’ to help UK’s poorest – FT
- It’s a ‘volt farce’ as energy firm tax is finally agreed – The Times
- North Sea oil and gas producers hit back at £5bn windfall tax – FT
- Sunak statement helps reduce inflation but risks higher rate rises – FT
- Chancellor denies bailout will make situation worse – Daily Mail
- ‘Middle class are finding it tough too!’ Sunak defends £400 for every household – Daily Express
Comment
- Sunak’s Labour-lite ‘policy that dares not speak its name’ – Camilla Tominey, Daily Telegraph
- The tax grabs that will lead Britain to recession – Fraser Nelson, Daily Telegraph
- Chancellor’s anti-Conservative approach to inflation – Andrew Lilico, Daily Telegraph
- Splurge will only buy him six months – James Forsyth, The Times
- Big spender – Editorial, The Times
- The real clean-up bill for No 10 parties has arrived, and it’s Sunak’s £15bn energy package – Paul Waugh, the i
- Energy windfall taxes cynical but needed – Editorial, The Guardian
- We congratulate Sunak – Editorial, The Sun
- Windfall tax comes with added complexity – Helen Thomas, FT
- Sunak cleans up The Convict’s party debris with a bailout package – John Crace, The Guardian
- If Partygate shame leads to this u-turn and help for those in need, we need more parties – Polly Toynbee, The Guardian
>Today:
- ToryDiary: Sunak bounces back
>Yesterday:
- Video: WATCH: Sunak – Every household will receive a £400 grant to help with the cost of energy bills
- WATCH: The Chancellor has finally realised the scale of the country’s problems – Reeves
Windfall tax 2) Conservatives ‘split’ on Chancellor’s windfall tax and spending bonanza
“The plan to fund the giveaway with a new £5 billion windfall levy on oil and gas companies was criticised by some cabinet ministers, who warned that it would damage long-term investment in Britain. The Times understands that Kwasi Kwarteng, the business secretary, remains opposed to a windfall tax in principle. He welcomed Sunak’s plans to provide relief for companies that invested but told allies he was particularly concerned by BP’s announcement that it was reviewing its plans to invest in the North Sea. Jacob Rees-Mogg, the Brexit opportunities minister, also raised concerns in a cabinet call yesterday. He suggested that the package would be better funded by reducing government spending on infrastructure projects. A number of other cabinet ministers are also concerned about the measures, which come after ministers claimed for months that a windfall tax would damage the economy.” – The Times
- Tory unease at redistribution of wealth from richest to poorest – The Times
Windfall tax 3) Tom Harris: Stealing the windfall tax may be cynical. But it’s also the right thing to do
“As someone who just can’t muster the enthusiasm to feel particularly strongly about the Sue Gray report or parties at Downing Street, the past few weeks have been a trying time for me and I expect your sympathy. But escaping Boris Johnson’s alleged misdemeanours isn’t as straightforward as all that; the scandal has its own gravitational field and it hasn’t yet stopped sucking in everything around it. Take the windfall tax, for example, which was confirmed this morning by Rishi Sunak. Now, it seems perfectly reasonable that ministers would want to announce new measures to alleviate the household burden of higher energy costs this week; But such measures – including the nicking of Labour’s flagship policy of a one-off windfall tax on the energy companies – cannot escape the gravitational pull of Partygate.” – Daily Telegraph
More comment
- Conservativism is in a dark place – Editorial, Daily Telegraph
Partygate 1) Five more Tory MPs tell Johnson to resign
“Five Conservative MPs called for Boris Johnson to quit within 24 hours, arguing that he lied to parliament and no longer commands public trust because of the Downing Street parties saga. Sue Gray revealed that the prime minister’s most senior aides were involved in the planning of parties which led to karaoke, drunkenness, fighting and vomiting. Johnson had repeatedly denied in the Commons that any parties had taken place and said he had been assured that no rules had been broken. He said yesterday that he was unaware of the most egregious rule-breaking, and argued that he attended leaving drinks in a work capacity. Twenty-two Conservative MPs have now publicly urged Johnson to resign; the threshold for a Commons vote on his leadership would be met when 54 submit letters of no confidence.” – The Times
- Number of Conservative MPs calling for PM to go rises – The Guardian
- A leaving do is ‘work’ but a birthday party isn’t: Met chief explains how Johnson wriggled off the hook – Daily Telegraph
Comment
- Women have been made scapegoats in the sordid partygate scandal – Judith Woods, Daily Telegraph
Partygate 2) Harman set to lead inquiry into claims PM misled Parliament
“A former acting leader of the Labour Party is set to become the chairman of the committee that will decide if Boris Johnson intentionally misled Parliament over partygate. Harriet Harman, who is also the longest-serving female MP, is the most likely candidate to lead an inquiry by Parliament’s Privileges Committee that could suspend the Prime Minister from the Commons. The Telegraph understands her name has been provisionally agreed by Labour as a replacement for Chris Bryant, who has recused himself from the investigation into Mr Johnson because he has been too outspoken about partygate already. Ms Harman would then be elected by the MPs on the committee as its new chairman. The investigation could begin within weeks and will decide whether Mr Johnson knowingly misled Parliament when he told MPs that “all guidance was followed in No 10” during the pandemic.” – Daily Telegraph
- Labour seizes Edinburgh council with Lib Dem and Tory help – The Guardian
Partygate 3) ‘Abba Party’ in No 10 flat ‘to be investigated’ by MPs
“MPs are “likely” to probe further into the so-called Abba party in Boris Johnson’s Downing Street flat as they consider whether he misled Parliament over Partygate, sources have told i. There have been claims of a “cover up” after top official Sue Gray halted her inquiry into the alleged party in the No 10 flat on 13 November 2020 after the police investigated it. But the evening event, where food and alcohol were available to five special advisers, Mr Johnson and his wife Carrie Johnson, is likely to be looked at as part of the Commons Privileges Committee probe into whether the Prime Minister misled MPs. Mr Johnson was specifically asked by Labour’s Catherine West whether there was “a party in Downing Street on 13 November”, to which the Prime Minister replied: “No, but I am sure that whatever happened, the guidance was followed and the rules were followed at all times”. – the i
- Police defend integrity of probe into Downing Street lockdown breaches – FT
- No10 asked former Met chief to apply for national role – The Times
- Labour mayor spent taxpayers’ money on pasties and marmalade – Daily Telegraph
- Harassment MP avoids recall petition – The Times
- MP loses appeal against harassment conviction – BBC News
Comment
- The Met has made a big mistake in tying its reputation to Johnson’s – Gaby Hinsliff, The Guardian
News in Brief
- Sunak has left Labour with a political headache – Andrew Marr, New Statesman
- We’ll all pay the price for Chancellor’s handouts – Matthew Lynn, The Spectator
- Why Johnson is going to get away with it – again – Tim Bale, NBC News
- The quirks of 21st century political process could let PM off the hook – Tom Clark, Prospect
- England’s child social care is broken – but reform must not mean junking the private sector – Frank Young, CapX
- The Taliban’s chaotic war on women – Cheryl Benard, UnHerd