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Boris Johnson news – live: Government 'far too slow' to roll out economic recovery plan, says Sadiq Khan, as Rishi Sunak unveils mini-budget

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Andy Gregory,Vincent Wood
Wednesday 08 July 2020 09:05 EDT
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Every diner to get £10 restaurant discount and VAT slashed for hospitality sector

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Chancellor Rishi Sunak has scrapped stamp duty for homes under £500,000 and slashed VAT on the hospitality sector – with Britons to be given money-off restaurant vouchers throughout August - in his emergency “mini-budget”, as he announced the government’s coronavirus furlough scheme will end in October.

It came after Boris Johnson and Keir Starmer clashed in the Commons, with the Labour leader accusing the prime minister of “rubbing salt in the wounds” of care home workers with his comments that they had failed to follow procedures as Covid-19 deaths soared. Mr Johnson said the government took “full responsibility” but failed to directly apologise for his comments.

Meanwhile, the finance ministers of Scotland, Wales and Northern Ireland have also written to the chancellor to demand Westminster hand over “crucial” but “relatively limited” fiscal powers in light of the coronavirus crisis, to allow capital spending to be moved over to day-to-day revenue and bring an end to “arbitrary” borrowing limits.

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Mini-budget will do 'nothing' for vulnerable children - charity warns

It is "deeply disappointing" that the Chancellor did not address the "deep scars" inflicted on children by lockdown and school closures as he announced more coronavirus measures, a charity said.

Plans announced by Rishi Sunak will "do nothing" to help the two-thirds of children living in poverty with at least one parent in work, the Children's Society said.

Chief executive Mark Russell added "This crisis has left many children at greater risk, with abuse and sexual and criminal exploitation more likely to be hidden from view, while others have struggled with isolation and been left at greater risk of the ravages of poverty with some parents sadly losing work.

"Jobs and protecting the economy are of course important, but so is protecting our children and helping them to flourish and shockingly, two-thirds of children living in poverty now have at least one parent in work. The measures announced today will do nothing to address this."

Vincent Wood8 July 2020 19:49

UK could be locked out of EU coronavirus vaccine scheme after refusing to pay

The British government could get itself locked out of the EU's coronavirus vaccine programme by refusing to contribute financially, MPs have warned.

The House of Commons European scrutiny committee sounded the alarm on Wednesday over the UK's insistence that it will not pay increased EU budget contributions for 2020.

The extra payments are directly tied to the vaccine programme, which aims to get EU members priority access to a treatment for Covid-19. The UK can still in theory participate as it is in the Brexit transition period.

More below:

Vincent Wood8 July 2020 20:04

In case you missed it: Rishi Sunak ditches plan to charge income tax on coronavirus tests in latest government u-turn

In a move that was quickly buried beneath the raft of measures introduced in his mini-budget, Chancellor Rishi Sunak has ditched plans to charge income tax on coronavirus tests in a U-turn after the proposal sparked outrage.

The move came after the chancellor was challenged in the House of Commons by a senior Tory MP who warned it would lead to key workers being left out of pocket for tests to show they are safe to work.

The potential charge emerged in new guidance from HM Revenue and Customs, which stated: “Coronavirus (Covid-19) testing kits or tests carried out by a third party which have been purchased by you to provide to your employees, are treated as a taxable benefit in kind on the employee.”

More below:

Vincent Wood8 July 2020 20:14

Michel Barnier praises "useful discussion" - and "nice dinner" - with UK Brexit negotiator 

Michel Barnier has said he had a "useful discussion" with Boris Johnson's Europe adviser, David Frost, as the pair try to inject some movement into UK-EU trade talks.

The European Union's chief negotiator said the two sides will "continue negotiating in good faith today" following a "nice dinner" in Number 10 on Tuesday night.

The latest talks come after the Prime Minister told German Chancellor Angela Merkel that the UK would be prepared to walk away without a trade deal at the end of the year.

Mr Barnier said the negotiators are "working hard for a fair agreement" with the UK, including on the key sticking points of fisheries and the "level playing field" arrangements designed to prevent the UK undercutting the EU by lowering standards and increasing state subsidies.

Vincent Wood8 July 2020 20:19

Trade Secretary says Boris Johnson's Brexit border plans vulnerable to smugglers and WTO challenge

Boris Johnson's Brexit border plans may be vulnerable to international legal challenge and will help smugglers, the International Trade Secretary has warned in a leaked cabinet letter.

Liz Truss wrote to Chancellor Rishi Sunak and Cabinet Office minister Michael Gove saying she had "key areas of concerns" about the prime minister's plans for Northern Ireland.

In the letter, obtained by the Business Insider website, the international trade secretary says the UK would "be vulnerable to WTO challenge" over the plan.

More below:

Vincent Wood8 July 2020 20:34

Boris Johnson orders quarter of a million pounds 'compensation' to top civil servant after mysterious resignation

Boris Johnson has authorised the payment of a quarter of a million pounds in "compensation" to Britain's outgoing top civil servant after he stepped down in mysterious circumstances.

It was announced last month that Sir Mark Sedwill would be stepping down as Cabinet Secretary and National Security Advisor after just two years in the role – a very short stint compared to his predecessors.

In a personal minute published on Wednesday Boris Johnson said the UK civil service human resources department and legal advisors had been consulted about the £248,189 payment, which was "likely to be in the form of a pension contribution".

More below:

Vincent Wood8 July 2020 20:54

Religious leaders from all the UK's major faiths have written to Liz Truss calling for conversion therapy to be banned as soon as possible, according to ITV’s Paul Brand.

Conrad Duncan8 July 2020 21:08

MPs raise concerns over Cummings' highly classified site trips 

MPs have raised concerns over claims Dominic Cummings will be surveying highly classified sites relating to national security ahead of a major defence review.

The Sydney Morning Herald said the controversial aide had already visited MI5 and MI6, but has requested visits to five classified sites including Porton Down in Salisbury and the SAS headquarters in Hereford.

Liberal Democrat MP Layla Moran said those who care about the armed forces should be "deeply worried" by Mr Cummings' plans.

She tweeted: "This is unprecedented, and comes after a Tory MP threatened the Chief of the Defence Staff.

"Everyone who cares about our armed forces should be deeply worried by these developments. Britain's defence should not be the political plaything of Dominic Cummings."

Conservative MP Tobias Ellwood, Commons defence committee chair, added in a tweet: "If correct and Dominic Cummings is formally involved in reviewing the UK's defence and security architecture then he should be subject to the same parliamentary scrutiny as ministers, military personnel and the civil service."

Vincent Wood8 July 2020 21:34

How can government’s green money help me insulate my house?

Homeowners are set to receive vouchers worth thousands of pounds to help make their properties more energy efficient and potentially save hundreds on bills each year.

Chancellor Rishi Sunak announced homeowners and landlords will be given up to £5,000 under the £2bn green homes grant to make energy-saving home improvements.

For those on the lowest incomes, the scheme will fully fund energy efficiency measures of up to £10,000 per household.

More on the scheme below:

Vincent Wood8 July 2020 22:09

That's all from us, thanks for following

Vincent Wood8 July 2020 22:26

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