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Truss vs Sunak live updates: Ex-chancellor boasts of taking money from ‘deprived urban areas’

Truss claims recession ‘not inevitable’ despite Bank of England warning

Rishi Sunak was filmed boasting about diverting funding away from “deprived urban areas” towards more prosperous areas that “deserve” them.

The New Statesman magazine, which obtained video revealing Mr Sunak’s remarks, said they were made to grassroots Tories in Royal Tunbridge Wells, Kent, on 29 July.

Labor said it was “scandalous” that Mr Sunak was “openly boasting that he fixed the rules to funnel taxpayers’ money to rich Tory shires”.

In the video, Mr Sunak told Tory supporters: “I managed to start changing the funding formulas, to make sure areas like this are getting the funding they deserve because we inherited a bunch of formulas from Labor that shoved all the funding into deprived urban areas and that needed to be undone.

“I started the work of undoing that.”

Earlier the head of a highly influential think tank warned that the next prime minister will have to find “many more billions” of pounds to help households pay soaring energy bills after the Bank of England’s dire economic forecast.

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The surprise winner of the latest Tory TV battle wasn’t Truss – but Sunak

Liz Truss is all too keen to excuse Boris Johnson’s ‘mistakes’ – she could be as dangerous as him, writes Sean O’Grady.

Read Sean’s full piece here:

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World Cup 2022: Expert panel to explore how the world can hold Qatar to account on human rights

Join labor rights defender Malcolm Bidali, FairSquare’s James Lynch, BHRRC’s Isobel Archer and The Independent’s chief football writer Miguel Delaney, hosted by international editor David Harding for an expert panel on how the world can hold Qatar to account on human rights.

You can sign up by following this link:

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Suank bragged of diverting public funds away from deprived urban areas’

Tory leadership contender Rishi Sunak proudly told party members he had been working to divert funding from “deprived urban areas” towards prosperous towns.

The former chancellor bragged that he had started changing public funding formulas to ensure more prosperous towns receive “the funding they deserve.”

The New Statesman magazine, which obtained video revealing Mr Sunak’s remarks, said they were made to grassroots Tories in Royal Tunbridge Wells, Kent, on July 29.

Labor said it was “scandalous” that Mr Sunak was “openly boasting that he fixed the rules to funnel taxpayers’ money to rich Tory shires”.

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Kwasi Kwarteng defends holidaying PM and chancellor saying ‘I’m here, I’m in a suit’

Kwasi Kwarteng has defended Boris Johnson’s decision to go on holiday amid the ongoing cost of living crisis.

The business secretary was out on the broadcast round for the government earlier. He said he didn’t know where the PM was but was in constant contact with him.

He also defended the decision of chancellor Nadhim Zahawi to take a break. “I’m here, I’m in a suit, I’m not on holiday and we’re absolutely focused” on tackling rising bills, he told Sky News.

Kwasi Kwarteng defends holidaying PM and chancellor saying ‘I’m here, I’m in a suit’

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Labor pledges will be fully costed

Any pledges Labor makes on the economy will be fully costed, an MP has said as he criticized the Tory leadership candidates’ plans for tax cuts.

Jonathan Ashworth, the shadow work and pensions secretary, has been out on the morning broadcast round for his party following the Bank of England’s dire economic forecast.

He said the people “will see” how and spending commitments Labor makes at the next general election – “the British public expect politicians to be prudent and sound when managing the finances

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PM and chancellor ‘AWOL’

Boris Johnson and chancellor Nadhim Zahawi have gone AWOL, a Labor MP has said as he called on the government to do more people with the cost of living crisis.

Both the PM and Mr Zahawi are on holiday.

Jonathan Ashworth, the shadow work and pensions secretary, spoke to Sky News earlier, telling the station that a £4 billion “tax break” being given to oil and gas giants could be used to help millions pay their bills.

More comments from Mr Ashworth below:

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Bank of England governor urges workers to limit pay rise demands to help others without ‘bargaining power’

The governor of the Bank of England has urged workers to limit their demands for a pay rise this year warning of the impact of high inflation on those who don’t have ‘bargaining power’.

Andrew Bailey said the problem was one “we all have to be very aware of” hours after he warned households will suffer the deepest fall in living standards on record as the UK plunges into a yearlong recession this autumn.

Our Whitehall editor Kate Devlin has more details below:

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Kwarteng: ‘Immediate problem is growth’

The immediate problem with the UK’s economy is “growth” and not inflation, Kwasi Kwarten has insisted.

The business secretary, who is supporting Liz Truss in the Tory leadership contest, said it “doesn’t make any sense” to take more of people’s money through tax when real incomes are being squeezed.

Ms Truss has vowed to reverse the rise in NI brought in by her rival, Mr Sunak and to cut income tax if she replaces Boris Johnson.

Mr Kwarteng told BBC Radio 4 Today: “No economist in the world is going to say that the way to deal with a looming recession is to tighten monetary policy and to tighten fiscal policy at the same time.”

Challenged that problems on the supply side are predominantly causing inflation rather than consumer demand in the market, he said: “Inflation means that you’re spending, you have less of your money, you have less of your real income is being squeezed.

“Now, nobody I’ve ever spoken to, until about a week ago or two weeks ago, has said the way to deal with that is to take even more of people’s money through tax. That doesn’t make any sense, and, if you take a step back and you look at what’s going on around other G7 countries, they’re not doing this, and the IMF was very clear 10 days ago when it predicted that we would have the lowest growth in the G7 next year and that’s a consequence, not only of the inflation because everyone’s dealing with global inflation, but it’s also a consequence of having a very tight fiscal policy.

“But you don’t put up interest rates as well as tightening fiscal policy. Nobody is doing that. That’s why, across the world, people are actually saying we need to help people.”

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Recession ‘inevitable’, Tory MP warns

A recession in the UK is “inevitable”, a Tory MP has warned as he criticized Tory leadership contender Liz Truss’s plan for the economy.

Liam Fox, a former cabinet minister and supporter of her rival Rishi Sunak, told Sky News: “I think it’s inevitable given what’s happening in the global economy.

“As I said, the United States is in its second quarter now of contraction. So, technically, by the UK definition, the US is in recession. That clearly is going to have an effect on everyone else.”

He added: “What Liz seems to be saying is, at a time when we are already spending £85 billion on debt interest, twice as much as we’re spending on defense during a conflict in Europe, we should be borrowing even more money .

“That’s been tried before. If there was an easy way to get out of the inflationary problem and growth, don’t you think it would have been done here or the United States or in Europe?”

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Robert Jenrick defends Rishi Sunak’s proposal to charge £10 for missing NHS appointment

Former housing secretary Robert Jenrick has defended Rishi Sunak’s proposal to charge people £10 for missing a second NHS appointment.

Speaking to BBC Radio 4’s Today programme, the Tory MP said: “I don’t think he should ditch that particular policy. I mean, it may be that it’s difficult in practice to implement, but I think it’s broadly supported by the public because we all want to see good quality public services but they need to be subject to reform.

“We’re putting very large sums of money into the NHS, as we are to a number of other public services, but they’re not working properly and so people want to see reforms being brought forward so this money is being spent properly. “

Challenged on the policy’s potential to target vulnerable people, he said: “I don’t think there’s a suggestion that you’d be going after people who have a good cause to miss appointments. What we’re talking about is people who do so irresponsibly.

“It’s not about money in the sense that it isn’t about the money generated by the £10. It’s about creating a culture whereby people treat public services like the NHS with the respect that it deserves and don’t miss appointments if they can possibly avoid doing so.

“It has been looked at in the past. I was on the Health Select Committee many years ago, we looked at this and we concluded that we wouldn’t do it as a money-raising exercise. It clearly doesn’t raise very much money in the scheme of the NHS’ budget, but it could inculcate a more responsible culture with the minority of people who go around missing appointments for GPs and dentists and so on, which ultimately just puts more strain on the public services.”

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