dailynewsnblog
Rachel Reeves to blame for economy shrinking before budget, Tories claim
Good morning. Growth figures out today show the economy shrinking in October. This is worse than economists were expecting.
Richard Partington has the story here.
Here is the start of his story.
Britain’s economy shrank unexpectedly in October as consumers held back on spending before Rachel Reeves’s budget and car manufacturing struggled to recover from the cyber-attack on Jaguar Land Rover.
Figures from the Office for National Statistics (ONS) showed gross domestic product fell by 0.1%, after a 0.1% drop in output in September. City economists had predicted a 0.1% rise in October.
After a fourth consecutive month without growth, economists said the latest snapshot would probably cement a Bank of England interest rate cut next week amid fading inflationary pressures, fears over the sluggish outlook, and rising unemployment.
“The UK economy has faltered more dramatically than we expected,” said Andrew Wishart, senior UK economist at Berenberg. “This loss of momentum will bring inflation down more swiftly than we previously anticipated, allowing the BoE to act.”
And Graeme Wearden has more on his business live blog.
Mel Stride, the shadow chancellor, issued this statement about the news.
This morning’s news that the economy unexpectedly shrank in the three months to October is extremely concerning but it’s as a direct result of Labour’s economic mismanagement.
Rachel Reeves promised growth but Labour has no plan for the economy – just their own survival, that’s why Reeves presented a Benefits Budget that rewards welfare not work.
For months, Rachel Reeves has misled the British public. She said she wouldn’t raise taxes on working people – she broke that promise again. She insisted there was a black hole in the public finances – but there wasn’t.
But within 20 minutes Stride was contradicted by his own leader, who said the fall in GDP was not unexpected. In her ‘I told you so’ message on social media, Kemi Badenoch said:
It wasn’t unexpected.
As I said at the time, the chancellor’s shambolic dishonesty in the run-up to the budget, slowed down economic activity and killed growth.
Here is the agenda for the day.
9am: Wes Streeting, the health secretary, has a phone-in on LBC.
10am: Peers resume their committee stage debate on the assisted dying bill.
11.30am: Downing Street holds a lobby briefing.
Afternoon: Keir Starmer meets the Belgian PM, Bart De Wever, in Downing Street.
If you want to contact me, please post a message below the line when comments are open (normally between 10am and 3pm at the moment), or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
Key events
Streeting says he regrets some of the language he has used about BMA
Q: Is the BMA more of a political organisation than a health organisation?
Streeting says it feels like that, but he says he does not want to go over that again today.
Q: Do you regret calling the BMA “moaning minnies” and accusing them of “juvenile delinquency”?
Not really, says Streeting.
He says he was angry because figures show that patient satisfaction with access to GPs has gone up by 60% to 75%.
But, instead of welcoming this, the BMA was still opposing measures to extend online consultations.
But Streeting says he wants to turn over a new leaf in terms of relations with the BMA in the new year.
He says the BMA chair recently apologised for some intemperate language,.
In that spirit, Streeting says, he want to reciprocate. “I regret some of the things I have said too,” he says.
The first caller is a resident doctor who asks why he should listen to Wes Streeting when Streeting called him a juvenile delinquent.
(Streeting actually said that about the BMA.)
Streeting is now talking about the measures the government is taking to help resident doctors. He explained this in an article in the Times. Here is an extract.
I haven’t just listened to resident doctors’ complaints about the competition for jobs. I agree with them.
It used to be that resident doctors competed amongst themselves for specialty training places — the next rung on the ladder in a medic’s career. Thanks to obscure immigration and visa changes introduced by the Conservatives post-Brexit, they now compete with the world’s doctors.
In 2019, there were around 12,000 applicants for 9,000 specialty training places. This year, that has soared to over 30,000 applicants for 10,000 places.
Taxpayers shell out £4bn a year to train doctors. It is in all of our interests to protect our investments and stop them going offshore.
If our offer is accepted, we will introduce emergency legislation to prioritise UK medical graduates for foundation and specialty training places. International talent will always have a home in our NHS. But this will return us to the fair terms doctors competed on before Brexit.
Along with an extra 4,000 specialty places, including 1,000 this year, the changes will be real and immediate for this year’s applicants. Instead of four doctors competing for every training post, it will now be fewer than two doctors for every place.
After explaining this on LBC, Streeting says he would love to apply for a job with a one in two chance of getting it.
Ferrari jokes that it is best not to get into the topic of what jobs Streeting might want to apply for.
Streeting says he won’t be able to guarantee patient safety in NHS if resident doctors’ strike goes ahead
Wes Streeting, the health secretary, is being interviewed on on LBC. The presenter is Nick Ferrari.
Streeting said the flu was putting the NHS under the worst pressure since Covid.
There is a particularly aggressive strain of flu around, he said.
He said he would be “extremely worried” about this if there were no strikes.
But, with the “double whammy” of flu and strikes, he thinks the situation is “dangerous”.
Streeting said he was so worried about this he told the BMA that he would extend their strike mandate, allowing them to strike in January, because that would be preferable to a strike before Christmas.
But they refused the offer, Streeting said. He said he could not understand that, given the risk it poses for patients.
Q: If midnight is the collapse of the NHS, how close to midnight are we? One minute?
Streeting says he would say that.
There are only a finite number of doctors and staff. With strikes and flu and trolleys on corridor and demand going up, “I don’t think there is a lever I can pull … [to] guarantee patient safety,” he said.
Rachel Reeves to blame for economy shrinking before budget, Tories claim
Good morning. Growth figures out today show the economy shrinking in October. This is worse than economists were expecting.
Richard Partington has the story here.
Here is the start of his story.
Britain’s economy shrank unexpectedly in October as consumers held back on spending before Rachel Reeves’s budget and car manufacturing struggled to recover from the cyber-attack on Jaguar Land Rover.
Figures from the Office for National Statistics (ONS) showed gross domestic product fell by 0.1%, after a 0.1% drop in output in September. City economists had predicted a 0.1% rise in October.
After a fourth consecutive month without growth, economists said the latest snapshot would probably cement a Bank of England interest rate cut next week amid fading inflationary pressures, fears over the sluggish outlook, and rising unemployment.
“The UK economy has faltered more dramatically than we expected,” said Andrew Wishart, senior UK economist at Berenberg. “This loss of momentum will bring inflation down more swiftly than we previously anticipated, allowing the BoE to act.”
And Graeme Wearden has more on his business live blog.
Mel Stride, the shadow chancellor, issued this statement about the news.
This morning’s news that the economy unexpectedly shrank in the three months to October is extremely concerning but it’s as a direct result of Labour’s economic mismanagement.
Rachel Reeves promised growth but Labour has no plan for the economy – just their own survival, that’s why Reeves presented a Benefits Budget that rewards welfare not work.
For months, Rachel Reeves has misled the British public. She said she wouldn’t raise taxes on working people – she broke that promise again. She insisted there was a black hole in the public finances – but there wasn’t.
But within 20 minutes Stride was contradicted by his own leader, who said the fall in GDP was not unexpected. In her ‘I told you so’ message on social media, Kemi Badenoch said:
It wasn’t unexpected.
As I said at the time, the chancellor’s shambolic dishonesty in the run-up to the budget, slowed down economic activity and killed growth.
Here is the agenda for the day.
9am: Wes Streeting, the health secretary, has a phone-in on LBC.
10am: Peers resume their committee stage debate on the assisted dying bill.
11.30am: Downing Street holds a lobby briefing.
Afternoon: Keir Starmer meets the Belgian PM, Bart De Wever, in Downing Street.
If you want to contact me, please post a message below the line when comments are open (normally between 10am and 3pm at the moment), or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn.bsky.social. The Guardian has given up posting from its official accounts on X, but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
