Downing Street has refused to rule out a mini-budget in the spring. Meanwhile, expectations grow the chancellor is set to announce the government’s backing for some major infrastructure projects.
Thursday 23 January 2025 17:00, UK
Millions of people will receive an emergency alert on their phone at 6pm this evening ahead of the arrival of Storm Eowyn.
The Met Office has issued a rare red warning across Northern Ireland tomorrow, and it also covers parts of Scotland.
A government spokesperson said those in the affected areas would get a loud siren-like noise played on their phone – even if it’s on silent.
It will be accompanied by a message with information about the warning and guidance for staying safe.
“Approximately 4.5 million people will receive the emergency alert in the largest real life use of the tool to date,” the spokesperson added.
The alerts were introduced in 2023, starting with a nationwide trial.
Alongside the alert, the spokesperson said there are “well rehearsed” plans for dealing with severe winter weather, and the government is working with the devolved administrations, local authorities, the emergency services, and other public bodies.
What areas are impacted?
Northern Ireland:
Scotland:
Tory leader Kemi Badenoch has said there is a “strong case” for changing the law to allow under-18s to be given whole-life sentences.
She’s just issued a statement following the sentencing of Southport killer Axel Rudakubana, who’s been jailed for a minimum of 52 years.
While the judge said it’s likely he’ll never be released, he could not give the guarantee via a whole-life order because he was 17 when he committed his crimes last July.
Ms Badenoch said the Conservatives “will start to explore” whether the law could be changed.
She said the public inquiry announced by the government earlier this week must address why Rudakubana wasn’t apprehended sooner, and the transparency of information in the aftermath of the attack.
Southport MP Patrick Hurley, of Labour, said earlier that he’d also like to see the law changed to allow whole-life orders in cases like this.
A UK-US trade deal was long touted as a potential benefit of Brexit, but has never come to pass.
Could Sir Keir Starmer do what his Tory predecessors failed to do and secure one with the new Donald Trump administration?
A Number 10 spokesperson said the two countries already “enjoy a thriving economic relationship”, and the government looks forward to working with Mr Trump’s team.
Asked in this afternoon’s briefing with journalists whether that meant Downing Street was open to a trade deal, despite concerns over what it might mean for food and farming standards, they said: “I don’t think we rule anything out.”
The PM is yet to speak on the phone to Mr Trump since his inauguration earlier this week.
The MP for Southport has said he wants a law change that could allow whole-life sentences in cases like that of Axel Rudukubana.
He’s being sentenced today for the murder of three young girls in the Merseyside town last summer.
Our crime correspondent Martin Brunt says the killer will get several life sentences with very long minimum terms, and may never be released, but he’s not expected to receive a whole-life order – which guarantees a defendant will stay in prison for life – as he was under 18 at the time.
Southport MP Patrick Hurley told the BBC there’s “no rationale” for not treating the teenager as an adult for sentencing.
He is now 18.
“If that’s not going to be the case, then I would like to see the law changed to make it the case,” he said.
You can follow updates from Liverpool Crown Court in our dedicated blog below – it contains details you may find distressing:
The Treasury has launched an independent review into the loan charge.
The review will be led by Ray McCann – he’s the former president of the Chartered Institute of Taxation.
What is the loan charge?
Introduced in 2016, it was designed to tackle historical tax avoidance schemes – but has been controversial.
It aimed to recover money from tens of thousands of freelancers and agency workers who were paid their salaries in tax-free loans.
This was widely promoted as HMRC compliant by lawyers and tax advisers in the 1990s and early 2000s, but that was not the case.
It’s ended up making tens of thousands of contractors who were paid their salaries through loans retrospectively liable for tax their employer should have paid.
What’s happened since then?
It led to the tax office retrospectively pursuing workers for bills they could not afford, years after their involvement in the schemes.
Those subject to the charge face paying back all the tax avoided in one go, with bills for some running into six figures.
A notable case in 2017 saw the Supreme Court agree with HMRC that schemes that redirect earnings and end up paying them in the form of loans don’t succeed in avoiding tax.
A debate in parliament earlier this year likened the loan charge to the next Post Office Horizon scandal, with the harsh tax crackdown linked to 10 suicides, family breakdowns and bankruptcies.
What will the review do?
The Treasury hopes it will “bring the matter to a close for those affected”, giving them support, “while ensuring fairness for all taxpayers”.
Mr McCann “will review the barriers preventing those subject to the loan charge from reaching resolution with HMRC and recommend ways in which they can be encouraged to do so”.
A statement said the government’s response to the review will be consistent with its approach to closing the tax gap and the fiscal position.
Expectations are growing that the chancellor will shortly voice support expansions for several UK airports as part of a raft of significant infrastructure announcements.
Reports suggest Rachel Reeves will use a speech on growth next week to give the government’s backing to a third runway at Heathrow, work at Luton and Gatwick, and potentially give the green-light to a Universal theme park in Bedfordshire and the Lower Thames Crossing.
The economy vs the climate
Heathrow’s proposed third runway has long troubled politicians split between economic interests and local opposition.
Boris Johnson famously said he’d lay down in front of the bulldozers when he was London mayor, and then missed a vote on whether to support the expansion when he later became an MP.
Sir Keir Starmer previously voted against it, while Ms Reeves voted for.
Sadiq Khan, Mr Johnson’s successor as London mayor, has today repeated that he is against it.
Ed Miliband has also vocally opposed the project in the past, but – in a sign the cabinet may put on a united front – has said he believes the government can meet both its growth and climate missions.
Asked if he’d consider resigning if it was approved, the energy and net zero minister said: “Don’t be ridiculous, no.”
The Scottish parliament will be closed tomorrow due to a red weather warning covering parts of the country.
Holyrood’s closure comes ahead of Storm Eowyn’s arrival, which will see “very dangerous conditions” and “widespread disruption”.
Read more about the Met Office’s warning below:
By Alix Culbertson, political reporter
The Church of England has said the government slashing funding available for listed places of worship repairs will only provide “temporary relief” and is concerned about a cap affecting larger projects.
Heritage minister Sir Chris Bryant, a former Anglican priest, announced the Listed Places of Worship Grant Scheme will receive £23m for 2025/26 compared with £42m available this year.
A cap of £25,000 per building each year will also be introduced for the first time in 24 years “in order to meet the budget”.
The scheme provides grants to cover the 20% VAT paid on repairs and renovations over £1,000 to thousands of listed sites of worship, including churches, synagogues, mosques, and temples.
Downing Street has refused to rule out a mini-budget in the spring.
Chancellor Rachel Reeves is waiting with bated breath for a forecast from the Office for Budget Responsibility, which she’s said could lead to spending cuts if it finds she’s set to break her fiscal rules.
That’s because of the rising interest rates on government borrowing.
Ms Reeves had hoped to only hold one major fiscal event per year to provide more stability to businesses and taxpayers, but that definitive rhetoric has changed.
“The chancellor had a once-in-a-parliament budget to restore stability,” said the prime minister’s spokesperson.
“I can’t get ahead of the spring statement.”
Asked if that statement to accompany the OBR’s forecast could end up being more significant, they refused to look that far ahead.
One thing’s certain, according to the Treasury – no more tax rises.
Here are the main things you need to know this lunchtime:
That’s all for now – stay with us for more updates this afternoon.
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