By Andrew Murray
LONDON: More cuts are coming as British Prime Minister Sir Keir Starmer’s floundering government on Wednesday attempted to recover from his shattering defeat over targeting disabled benefits. Senior minister Pat McFadden warned that the decision forced on ministers to abandon £5 billion-worth of cuts “does have a financial consequence.”Other ministers were making it clear that the Labour rebellion meant Sir Keir was now unlikely to scrap the cruel two-child benefit cap, the next target for backbench MPs.
And a Downing Street spokesman confirmed that there were no plans to raise a wealth tax or to increase business taxes, and that the government would also stick to the Treasury’s fiscal rules, which impose tight spending constraints. This means that the gap in the finances caused by the gutting of the welfare Bill is likely to be filled by cuts elsewhere.
Drama was added to the government’s predicament by the sight of Chancellor Rachel Reeves in tears during Prime Minister’s questions in the Commons. This was officially described as due to a “personal matter,” although more lurid rumours swept Westminster of bust-ups behind the scenes, including with Commons Speaker Lindsay Hoyle, allegedly over the Chancellor’s conduct at Treasury questions when she was repeatedly warned over the length of her answers.
Whatever the truth, Ms Reeves’s plight was not ameliorated by Sir Keir, seated next to her, declining to declare his confidence in her when pressed by Tory leader Kemi Badenoch. His spokesman attempted to make good later by declaring that the Chancellor was “going nowhere” and would serve for the duration of the parliament. “She has the Prime Minister’s full backing,” the spokesman added.
But this was insufficient to calm markets spooked by the premier’s earlier reticence, which began dumping government debt, fearing that Ms Reeves may be replaced by someone more left-wing.
The Prime Minister regaled MPs with a list of his government’s achievements as it marks a year in office, but there was no disguising the enormous loss of authority he has suffered.
Despite a vast Commons majority, he has been unable to secure passage of a flagship welfare Bill, with cuts in Personal Independence Payments for disabled people now postponed indefinitely.
The fiasco has called into question the competence of Downing Street chief of staff Morgan McSweeney, as it is seen as marking a shift in power from Sir Keir to his deputy, Angela Rayner, who brokered the final climb-down with Labour rebels earlier this week.
Leading rebel Rachael Maskell MP said the concessions signalled a “change in power” between the Prime Minister and disabled people. She told BBC Radio that MPs had seen “the Bill disintegrating before our eyes. “What we saw was a change in power between the Prime Minister and disabled people across our country, they having their voice at the heart of Parliament,” she said.
Ms Rayner sought to reassure people “that there will be no changes to their welfare.”“I want to make sure that people are reassured by that, because a lot of people have been scared about what’s going to happen,” she added.
PCS union president Martin Cavanagh said: “A Labour government should understand what support the most vulnerable need and then work out how to pay for it, not the other way round.
“Labour is risking the lives of disabled people for the sake of accounting gimmicks. Instead, we need fairer tax for healthier budgets.
“These cuts could still drive more people into poverty, risk forcing disabled workers out of the workplace, and put our dedicated members at DWP in the firing line for the anger of those suffering this injustice,” Mr Cavanagh said.
And James Watson-O’Neill, chief executive of disability charity Sense, warned: “This is not the right way to reform our welfare system — it’s a move that has already caused significant fear and anxiety within the disabled people’s community.” (IPA Service)
Courtesy: Morning Star