“Jeremy Hunt is finalising plans for a multibillion-pound bailout for Britain’s tech industry after one of the sector’s largest lenders collapsed into bankruptcy. The chancellor spent the weekend in talks with the Bank of England and financial regulators as the Treasury sought to contain the fallout from the collapse of Silicon Valley Bank (SVB) on Friday. More than 3,000 British tech firms have about £7 billion in deposits with the bank’s UK subsidiary and there have been warnings that many would be unable to pay their staff and creditors unless a rescue package could be agreed by Monday morning. Senior figures in the industry have told Hunt that SVB’s collapse represents an “existential threat to UK tech” that would “cripple the sector” and force many businesses into involuntary liquidation…” – The Times
>Today:
“New £500 bonuses will be offered to people who become childcare workers in a pilot scheme to be announced in the Budget on Wednesday. The financial incentive is designed to convince Britons to join the industry after problems finding employees fuelled a decline in the number of available childcare places. It is one of a string of childcare moves that Jeremy Hunt will unveil this week as he includes support for parents in his new back-to-work drive. Another change will increase the cap for how many two-year-olds a childcare worker in England can look after from four to five in an attempt to drive down costs. There has been a stark fall in the number of facilities offering childcare in recent years, with a drop of 10,600 providers since August 2019 in England…” – The Daily Telegraph
>Today:
“Billions of pounds of taxpayer cash will be handed directly to regional mayors in a “devolution revolution” under which Whitehall will cede unprecedented control over key budgets. Jeremy Hunt, the chancellor, will announce this week that the West Midlands and Greater Manchester will be handed full control over budgets in areas such as education, transport and housing in what is being billed in government as the future of levelling up. Under plans to treat devolved city administrations like “mini government departments”, the two regions will be freed of the need for Whitehall approval for spending in a swathe of policy areas. Instead, the regional mayors will be handed budgets of about a billion pounds a year each and trusted to make their decisions about…spending.” – The Times
“Chancellor Jeremy Hunt has vowed to use his Budget on Wednesday to set Britain on the “hard road” to becoming one of Europe’s richest countries but warned that big tax cuts will have to wait. Hunt is expected to use his limited room for fiscal manoeuvre to offer tax breaks to encourage companies to invest, while also funding measures to get people back to work and to ease the cost of living crisis. The chancellor said on Sunday there were “no easy fixes” to boost the UK’s weak economic growth as he paved the way for a Budget that will eschew big giveaways in favour of fiscal discipline and an effort to bear down on high inflation. “I think we have fantastic opportunities in this country,” Hunt told the BBC.” – The Financial Times
“Former Home Secretary Priti Patel is demanding Jeremy Hunt end the “war against the motorist”. She vented her anger at hard-up motorists having to pay fuel duty and VAT at the pump. The ex-Cabinet Minister said: “Paying tax twice every time is an absurdity. It is simply an outrageous burden on drivers.” She said the situation can’t be made worse by Ministers by “whacking up” fuel duty. Her call came as speculation mounted that stricken drivers and haulage firms will be helped with the retention of a 5p cut in the price of petrol and diesel. Mr Hunt is also expected to maintain the fuel duty freeze that will cost Treasury coffers around £6 billion overall. Ms Patel presented a petition in Downing Street last week demanding costs are kept as low as possible…” – The Sun
“Rishi Sunak suggested on Sunday he was frustrated the Gary Lineker row is overshadowing his plans to stop small boats saying the migrant crisis was the “substantive issue that we should be talking about”. Public attention has been drawn from the Prime Minister’s new measures to crack down on illegal Channel crossings by the turmoil at the BBC after the Match of the Day presenter likened the Government’s language around the policy to Nazi Germany. Speaking on his way to San Diego for a defence summit with President Joe Biden and Anthony Albanese, the Australian prime minister, Mr Sunak called for “perspective” over the tweet, which has seen the host suspended from football coverage.” – The Daily Telegraph
>Today:
>Yesterday:
“London and Edinburgh are heading for another constitutional clash as Rishi Sunak’s government prepares to thwart a controversial recycling scheme in Scotland. The Scottish government’s scheme, which is due to launch in August, aims to encourage more recycling by adding a 20p deposit to single-use drinks cans and bottles. Consumers can reclaim the deposit by taking empty containers to thousands of “reverse vending machines” in supermarkets and other venues. Sunak’s government fears the scheme would create a trade barrier between England and Scotland because it would involve different prices for the same product on either side of the border, which could contravene the UK Internal Market Act of 2020.” – The Financial Times
“Rishi Sunak has refused to pledge permanently higher defence spending as he hands the military less than it requested in the budget. The prime minister insisted that Britain was “increasing its ambitions” on defence spending, allocating an extra £5 billion for the Ministry of Defence. He has set out an “ambition” for it to reach 2.5 per cent of GDP but refused to set a date after disagreements with Ben Wallace, the defence secretary, over how quickly it should be achieved. Sunak will finalise a multibillion-pound Aukus submarine deal alongside President Biden and Australia’s Anthony Albanese, as he insists that Britain is…leading on the world stage… The defence budget was due to rise by £700 million…but Wallace asked for an extra £8-11 billion to deal with inflation…” – The Times
“Rishi Sunak has revealed he will personally invite US president Joe Biden to visit Northern Ireland next month to mark the 25th anniversary of the Good Friday agreement. In the biggest hint yet that the much-anticipated trip will go ahead, the prime minister told reporters on the plane to a summit in California that he hoped Biden would be able to make it. Having dealt with the tricky issue of the post-Brexit Northern Ireland protocol, which many in Washington viewed as vital to such a trip getting the green light, Sunak stressed there was an opportunity to “celebrate” the peace that followed the agreement. Sunak said a visit by the US president would be “a nice way” to mark the anniversary of the Good Friday agreement…” – The Guardian
“China poses an “epoch-defining challenge” to Britain’s wealth and security, Rishi Sunak warned on Sunday, as he revealed spies will be drafted in to help businesses thwart hacking attempts. The Prime Minister branded Beijing the “biggest state-based threat” to the stability of the global economy but said he would not shut the door on trade or diplomatic ties with the country. He appeared to row back from comments made during last summer’s Tory leadership contest when he branded China the “number-one threat” to the UK. His remarks, on the way to a meeting with Joe Biden in San Diego, came with the Government set to publish on Monday a long-awaited “refresh” to Britain’s defence and security policy.” – The Daily Telegraph
“Rishi Sunak has vowed to protect the Parthenon marbles from being sent back to Greece, saying they remain a “huge asset” to the UK. The prime minister stuck by commitments made by his predecessors…to safeguard the treasures at the British Museum…Despite a campaign to return the marble sculptures to Athens and talks between officials in the UK and Greece about the idea, it was given short shrift by Sunak as he headed to a major defence and security summit in California… While decisions about…specific collections are treated as [a British Museum matter}…Downing Street believes that a…loan would not be in the spirit of the government’s position.” – The Guardian
“Suella Braverman orders police today to stop the “Orwellian” recording of the names of those accused of “non-crime hate incidents”. The home secretary singles out the “particularly egregious case” of a pupil whose name was added to police files for scuffing a copy of the Quran at school. Police will be required to prioritise freedom of expression over people taking offence, under guidance published today to “avoid a chilling effect on free speech”…Braverman says policing “must never include politically correct distractions”. She condemns the concept of “non-crime hate incidents” as “largely Orwellian and wrong-headed”. Although the College of Policing updated its guidance last year to stop the recording of trivial incidents, “the system still isn’t working”, Braverman says.” – The Times
“Kemi Badenoch is putting the bee in to Brexit by unveiling a series of trade wins for Britain including a £6million “sweetener” for the nation’s honey producers. International Trade Secretary – and former Tory leadership contender – Ms Badenoch made her announcement as the third round of talks for a UK-Gulf Cooperation Council free trade deal kicks off in the Saudi Arabian capital of Riyadh today. The Department of Business and Trade is leading a first-of-its-kind trade mission to Dubai intended to boost opportunities for women-led businesses, as well as two more trade missions to Saudi Arabia to drive exports…Meanwhile, the Government has secured a major export win for UK honey producers by removing a trade barrier which blocked the export of honey to Saudi Arabia.” – Daily Express
“Ministers believe that the British Medical Association has been deliberately obstructing hospitals’ attempts to plan emergency cover during the junior doctors’ strike this week. The union has called a full walkout for 72 hours from 7am on Monday, with no exemptions for services such as A&E, maternity care or cancer treatment. There are around 61,000 junior doctors working in the NHS in England and around 36,000 voted to strike. Health leaders have said they have serious concerns about patient safety during the strikes, which are likely to mean thousands of operations and procedures need to be cancelled as the NHS prioritises urgent care. They fear a huge impact on both cancer care and backlog recovery, jeopardising a government pledge to bring down waiting times.” – The Times
“Ministers have come under renewed pressure to safeguard the City of London’s status as an international financial centre amid warnings that taxes on British banks will force lenders to push business overseas. The City faces a cliff-edge in competitiveness next year when a levy imposed by Brussels on European lenders is expected to fall sharply. This will result in a disparity in the tax regimes for banks in the EU and Britain, making the UK less attractive to banks wishing to invest, according to the financial industry. The warning comes amid broader fears about the City of London’s future. There have been worries in recent years that the City is losing business to rival…hubs. These concerns were exacerbated… after leading companies said they would pursue listings in New York.” – The Times
“A former Tory immigration minister said last night that Rishi Sunak’s landmark Bill to stop illegal Channel migration ‘criminalises’ pregnant women and children and fails to act as a deterrent. Caroline Nokes, now chairman of the women and equalities committee, pledged to rebel against the measure in a Commons vote set for tomorrow. The MP also voted against last year’s Nationality and Borders Act. Her dramatic intervention came just hours after a Tory council leader said the Government’s migrant plan puts children’s safety at risk as a row threatens to break out within the Conservative Party… Earlier Izzi Seccombe, Tory leader of Warwickshire County Council, said local authorities have to ‘jump through hoops’ to set up safe shelters for children.” – The Daily Mail
“The sadness of my fellow Catholics upsets me, but my own way of handling the madness in Rome is to ignore it. People ask, “Did you hear what the Pope said yesterday?” I reply: “No, and don’t tell me.” For me, the Christian life is rooted in prayer and the sacraments; counterintuitively, I’ve read more about religion and strengthened my faith greater during this sad era than before. Shutting out the noisy gossip makes room for grace. I suspect much of the Church is doing the same. We’ve entered a kind of internal catacomb, hiding away, waiting for the pontificate to end. Not just for our own sake but out of brotherly love for Francis. He seems so desperately unhappy.” – The Daily Telegraph
“Labour claimed yesterday that it was taking inspiration from President Biden’s $369 billion green investment programme, as the shadow chancellor set out the party’s plans to invest in technology tackling climate change. Rachel Reeves said the UK faced a “huge imperative to get our economy growing” and warned that it was going to “miss out” unless government supported business looking to invest in areas such as hydrogen, green steel, and carbon capture and storage. She highlighted Biden’s inflation reduction act, which offers tax breaks and subsidies for green technology manufacturing, as a blueprint that the UK could copy. Labour has previously…committed to investing £28 billion a year in the so-called green economy.” – The Times
>Yesterday:
“The frontrunner in the SNP leadership contest has pledged to use “any means necessary” to break up the UK if he becomes first minister, ahead of voting opening on Monday. In a last-ditch attempt to woo party members before they start casting their ballots, Humza Yousaf said he would consider a snap Holyrood election to try to demonstrate public support for independence. He said nothing should be “off the table” and also cited Nicola Sturgeon’s plan to use next year’s Westminster election as a “de facto” referendum. Under both blueprints, the nationalists would attempt to open independence talks with the UK Government if they received a majority of votes… It came as a poll showed support for independence has fallen to 45 per cent…” – The Daily Telegraph
>Today: