On Wednesday, I was in the Sky News studio watching Prime Minister’s Questions before appearing on their panel to review the session when Sir Keir Starmer announced a u-turn on winter fuel.
Despite this being a welcome move it was not from a position of principle - since the Prime Minister made this cut of up to £300 from millions of pensioners he has repeatedly justified it as the right thing to do. It is the opposition Labour faced in the local elections that motivated the change, not old people being cold. His Chancellor was even on television defending the policy a few hours before Starmer’s reversal of policy.
But what people want to know is - who will have their payments restored, by how much, and by when? It was telling that his deputy prime minister was unable to provide any clarity on this weekend's media. This is a further blow to pensioners and it is uncertain if there will be any help in place for the coming winter.
Having opposed this choice by Labour, my party will certainly be pressuring the government to be clear with people. Can they really not get this sorted in six months?
The shift in policy came on the day inflation rose to 3.5 per cent. That means higher bills for everyone’s weekly shop and other costs. Of course, inflation was in double digits for part of the last parliament due to the illegal Russian invasion of Ukraine and the effects of Covid which was very painful for everyone, but by the time of the election a year ago it was at the 2 per cent target.
So why is the UK now seeing higher prices when other countries aren’t? Clearly the October budget has a part to play. Hitting businesses with higher costs on employing people will lead to higher prices (fewer jobs and lower growth too according to the independent Office of Budget Responsibility).
And the Chancellor has spent £70 billion a year more and borrowed billions of pounds extra - meaning taxpayers now have to fund £100 billion a year in interest payments. There’s even talk the Chancellor may scrap her fiscal rules to help deal with what experts think may be a £60 billion deficit against her current plans. If so, that would raise serious questions about her credibility.
Against that backdrop it is extraordinary the government plans to spend £100 million a year for 99 years to lease the Diego Garcia military base which was UK sovereign territory until Starmer agreed this deal. Why is that the priority when at the same time the government has, for example, cut the £50 million Adoption and Special Guardianship Support Fund and the amount each vulnerable child receives by 40 per cent?
Talking to people working or businesses, there is a real frustration that the government doesn’t get that working hard and creating jobs is tough. People should keep more of what they earn and the idea taxes should go up even higher is not popular.
Some other parties promise the earth but with no serious plans to deliver. When there is deep cynicism about politics, it is much better to listen to people and to be straightforward about the challenges we face and the limits of government.
