Sir Iain Duncan Smith, the former Tory leader, has said he will apply for an urgent question to the government on a company said to be linked to the spy. Meanwhile, Nigel Farage says he wants to use parliamentary privilege to name the person – who is currently known as H6.
Monday 16 December 2024 10:42, UK
As we reported earlier, the government has agreed in principle for Royal Mail to be sold.
Business Secretary Jonathan Reynolds has been answering questions on the deal in the past few minutes.
He is pushed on whether the universal service obligation – the deal meaning Royal Mail delivers the post every day bar Sunday – will stay in place.
The minister says this is for the regulator Ofcom, but very much does not rule out changes.
He says that “all parties are pragmatic and understand that the letter market has declined a lot” in recent years.
Mr Reynolds says the service has to “reflect the current market demand for that product”.
And notably, he says “a” universal service obligation is part of the deal – rather than saying the current one.
He says “nearly every country” has adjusted to changes in the way letters are sent.
A “process” is underway to decide how the UK USO should be updated, Mr Reynolds adds, but it is not part of the agreement announced today?
As part of the buyout agreement, the purchasing company, EP Group, needs to meet Ofcom targets before it can take profits out of Royal Mail.
We’ve had some data out today examining the state of the UK market – specifically around hiring and jobs.
It makes grim reading for the government.
The S&P Global flash UK composite purchasing managers’ index (PMI) shows that, while the private sector’s economic activity grew ever so slightly in the first week of December, jobs are being axed.
Data from the start of this month indicated a third month in a row of job losses in the private sector, at the fastest rate in four years.
If COVID is excluded, it’s the fastest rate since 2009.
This largely appears to be firms not hiring replacements for leaving staff, known as attrition, in response to rising employment costs.
Some economists have blamed inflation, transport costs, raw materials, weather, and wars as reasons behind the struggling economy.
Chris Williamson, the chief business economist of S&P Global Market Intelligence, laid the blame at Labour’s increase in National Insurance for employers and greater workplace regulations on staffing.
He said: “Businesses are reporting a triple whammy of gloomy news as 2024 comes to a close, with economic growth stalled, employment slumping and inflation back on the rise.
“Economic growth momentum has been lost since the robust expansion seen earlier in the year, as businesses and households have responded negatively to the new Labour government’s downbeat rhetoric and policies.
“Firms are responding to the increase in national insurance contributions and new regulations around staffing with a marked pull-back in hiring, causing employment to fall in December at the fastest rate since the global financial crisis in 2009 if the pandemic is excluded.
“While the December PMI is indicative of the economy more or less stalled in the fourth quarter, the loss of confidence and increased culling of jobs hints at worse to come as we head into the new year.”
The government has reached a “legally binding agreement” to sell Royal Mail to Daniel Kretinsky and his EP Group.
As part of the deal, the business will remain headquartered in Britain.
In total, the sale is valued at around £5.3bn, and includes measures to “protect, and secure investment” in the Royal Mail.
Jonathan Reynolds, the business secretary, said: “For too many years progress on securing a stable future at Royal Mail has stalled, but from day one we have been committed to providing a secure future for thousands of workers and customers.
“Today’s agreement is yet another example of this government’s commitment to working hand in hand with business to generate reform give respite to people right across the UK, as we are working towards ensuring a financially stable Royal Mail with protected links between communities other providers can’t reach.
“I’d like to thank EP Group and Daniel Kretinsky for their constructive approach to our discussions and their commitment to protecting this national icon.
“I look forward to working with them to fix the foundations and ensure Royal Mail continues to deliver for the communities and businesses who rely on it most.”
The Labour Party was clear before the election that it wanted to change local government and councils – and more details are set to be revealed today.
Speaking to LBC this morning, local government minister Jim McMahon confirmed that this could mean some local elections might not take place.
The process appears to be that – if a council will stop existing – then no election is held until the new authority is set up.
Instead, a “shadow” council is created.
Mr McMahon said: “At the moment, the assumption is that elections are going ahead.
“However, it’s usual in a process of reorganisation, that when a council makes a request for reorganisation, that if there are elections taking place, to a council that essentially won’t exist within the term of those elections, then you hold off the elections and you elect to a shadow body and the shadow body basically is a form of the new councils that will follow.”
He said some areas had already requested to be reorganised.
Tom Tugendhat, the former Conservative security minister, is speaking to Sky News this morning.
He is asked about the situation with the Chinese spy who has alleged links to Prince Andrew.
Mr Tugendhat says: “What we’re seeing is just a tip of the iceberg here with Prince Andrew.”
The MP says that we’re “seeing a pattern” of attempts to influence or change British policy, and also attempts to steal economic secrets and intellectual property.
He says the volume of this is “huge”, with thousand of people working in China and $3bn (£2.4bn) or so in support from the Chinese state.
Mr Tugendhat goes on to criticise Sir Keir Starmer for having a summit with China’s premier Xi Jinping, and Chancellor Rachel Reeves for planning meetings in China in the new year.
The Conservative MP says there should “of course” be working-level meetings, but doesn’t think closer ties are appropriate.
He also calls for Labour to continue the implementation of the foreign influence registration scheme he began while in government.
Asked for the difference between the UK’s attempts to influence China and vice versa, Mr Tugendhat says: “We defend ourselves, they attack.”
He goes on to say that the failure to implement the foreign influence scheme is a “reckless” move from the UK government.
Ukraine’s former foreign minister has suggested that Sir Keir Starmer has watered down British support for Ukraine.
Dmytro Kuleba, who left his post in September, said that Labour was more likely to “follow” the US than be bold in its support of Kyiv.
“The Conservatives were coordinating with the Americans but they did not restrict themselves to just following the Americans,” he said in comments first reported by The Times.
“This is the change that came with Labour. They took a position they would follow the Americans.”
He also said Boris Johnson “set the threshold high” when it came to support.
“Rishi Sunak had no other choice but to meet the threshold and push it further. When the Labour government came into office, we received rock-solid assurances things would continue as they were.
“To a large extent that was the case – except the story with the Storm Shadows,” he said, noting the delay it took London to approve the use of the British missiles on Russian soil.
Starmer only gave permission for Ukraine to use the missiles deep inside Russian territory after Joe Biden approved the use of American-supplied ATACMS in the same way.
“The only unpleasant conversation I had with British officials a couple of weeks before my resignation… was about the delivery of Storm Shadows and permissions to use them against certain targets,” Kuleba said.
“Maybe the reason was the new government was cautious and they didn’t want to rush with decisions.”
Read more in our Ukraine live blog
Sky News deputy political editor Sam Coates and Politico’s Jack Blanchard share their daily guide to the day ahead in politics in under 20 minutes.
Will MPs name the alleged spy who links China with the royal family? What did the Prime Minister know about “H6”? Why can’t they be named? And what does this story mean for Keir Starmer’s plan to “reset” relations with China?
Plus, Angela Rayner plans to overhaul local government.
You can send a WhatsApp to Jack and Sam on 07511 867 633 or email them: jackandsam@sky.uk
👉 Listen to Politics At Jack And Sam’s on your podcast app👈
Jim McMahon, a local government minister, is speaking to Sky News this morning.
He is asked about the developments around the Chinese spy with links to Prince Andrew, who has been granted anonymity by the courts and is only known as H6.
There are growing calls for H6 to be named.
Mr McMahon says he himself does not know the person’s name.
Asked if the prime minister does, the minister says: “I’m assuming that everybody within the cabinet – depending on their security clearance – will know the answer to that question.”
Mr McMahon says there are two issues, one being the identity of the H6, and the other is the security of parliament and who has access to it.
The minister says naming H6 is “a matter for the courts”.
Asked if he appreciates the irony that H6 is named in China and not in the UK, Mr McMahon says it shows the benefits of the British court system – as the judiciary makes the decisions rather than the government.
Currently, a court order prevents the Chinese spy with alleged links to Prince Andrew from being named.
All we know is that they have been given the designation “H6” by the courts.
However, some MPs want more information on the person.
Sir Iain Duncan Smith, the former Conservative leader, wants to ask an “urgent question” to the government in the House of Commons about the United Front Work Department – the group said to be associated with H6.
In order to do this, Sir Iain needs to lodge his application with the Speaker of the House of Commons, Sir Lindsay Hoyle.
Sir Lindsay would then need to grant it. With parliament starting later on a Monday, the earliest the question could take place today – if granted – would be 3.30pm.
Breaking privilege
The other development could come from Nigel Farage’s Reform UK party.
They have indicated their plans to name H6 in parliament if the court order providing anonymity is not lifted.
Politicians in the Houses of Parliament can take advantage of what is known as parliamentary privilege to break court-imposed anonymity orders.
This has been used in the past on numerous occasions – especially in the era of super-injunctions.
A certain irony
All of these factors will put pressure on the judiciary to potentially lift the court order banning H6’s identity.
As political correspondent Rob Powell points out, there is an irony that H6’s name is being reported in China – which has some of the strictest press controls in the world – and yet is not being reported in the UK.
Today will see Labour’s devolution white paper published – laying out the government’s plans to give more powers to councils in England and Wales.
The party, now in government, spoke extensively in opposition about wanting to give greater autonomy to local authorities.
Today’s move comes after the government released its latest plans on housebuilding last week, which told local authorities they would need to provide “immediate, mandatory” plans to reach housing targets.
Deputy Prime Minister Angela Rayner – who is also housing, communities and local government secretary – is giving a speech today on the government’s plans.
She is expected to say: “Our English Devolution white paper will be a turning point when we finally see communities, people and places across England begin to take back control over the things that matter to them.
“When our proud towns and cities are once again given the powers they need to drive growth and raise living standards as part of our Plan for Change.
“It’s a plan for putting more money in people’s pockets, putting politics back in the service of working people and a plan for stability, investment and reform, not chaos, austerity and decline, that will deliver a decade of national renewal.
“Devolution will no longer be agreed at the whim of a minister in Whitehall, but embedded in the fabric of the country, becoming the default position of government.”
Be the first to get Breaking News
Install the Sky News app for free
