Newslinks for Wednesday 21st May 2025

Labour’s tax and spend sees inflation increase

“UK inflation surged to its highest level for more than a year last month after households were hit by a raft of “awful April” bill increases, official figures have revealed, delivering a huge blow to Chancellor Rachel Reeves. The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation hit 3.5% in April, up from 2.6% in March and the highest since January 2024. Economists had been expecting a rise to 3.3% last month. It comes after Ofgem’s energy price cap rose by 6.4% in April, having fallen a year earlier, alongside a raft of bill rises for under-pressure households, including steep increases to water charges, council tax, mobile and broadband tariffs. ONS acting director-general Grant Fitzner said: “Significant increases in household bills caused inflation to climb steeply.” – Daily Express

• UK inflation jumps to 3.5% led by rise in household bills – The Times
• Pace of UK interest rate cuts is too rapid, Bank of England chief economist says – The Guardian
• Modest-earning families face huge death tax bills under Labour – Daily Telegraph

Comment:

• Rachel Reeves to blame for today’s inflation surge – now she faces an even bigger shock – Harvey Jones, Daily Express
• No one wants to earn £100k. It’s a disaster for Rachel Reeves – Sam Brodbeck, Daily Telegraph

Whammy savings blow, as Labour splits blown open

“Angela Rayner sent a secret memo to Rachel Reeves pushing for a new tax raid on savers, The Telegraph can reveal. In the document, seen by our reporters, the Deputy Prime Minister proposed eight tax increases including reinstating the pensions lifetime allowance and changing dividend taxes. She also suggested new raids on the million people who pay the additional rate of income tax and a higher corporation tax level for the banks. The measures would raise taxes by £3 billion to £4 billion a year, according to estimates cited in the document. The real figure would be much higher, as no specific estimates were given for some policies. The memo amounts to a direct challenge to the Chancellor’s approach this year of using spending cuts rather than tax rises to fill the black hole in the nation’s finances. It is the clearest evidence to date of a split at the top of the Government about economic strategy.” – Daily Telegraph

• One million pensioners face tax bombshell due to frozen thresholds – Daily Express
• Reeves vs Rayner: Behind the split at the heart of Cabinet – Daily Telegraph
• Cash ISA limit cut still on the table despite Reeves appearing to signal U-turn – The i
• Our £5bn disability benefits cut will stop welfare state collapsing, says Kendall – The Guardian
• Rachel Reeves hints at winter fuel allowance shift saying she is ‘listening’ to mounting disquiet from Labour MPs – Daily Mail

Comment:

• Rayner’s stealth taxes would crush growth – Telegraph View
• Don’t kid yourself. Rachel Reeves is still coming for your cash Isa – James Baxter-Derrington, Daily Telegraph

Government set to move on Israel while struggling to keep up on defence

“Britain is prepared to impose sanctions on senior members of the Israeli government after suspending trade talks with the country over its “intolerable” military expansion in Gaza. David Lammy, the foreign secretary, condemned “monstrous” calls from Israeli cabinet ministers for Gaza to be cleansed, describing the comments as repellent and extremist. He said Israel’s refusal to allow thousands of aid lorries into Gaza was an “affront to the values of the British people” and accused Binyamin Netanyahu’s government of “isolating Israel from its friends and partners around the world”.” – The Times

• Lammy loses patience with Netanyahu over ‘monstrous’ actions in Gaza – The i
• Trump ‘wants UK to boost defence spending to 3% by 2029’ – The Times
• Trump unveils plans for Golden Dome system that will put weapons in space – The i
• UK faces weapons fund shut out despite softer Brexit deal with EU – The i
• Starmer and EU to arm West with new global defence bank – Daily Telegraph

Comment:

• Starmer has finally lost patience with Netanyahu – Kitty Donaldson, The i
• Watch out Israel! Lammy’s lathering up for more inaction – Tim Stanley, Daily Telegraph

Farage not to be found, except in France

“Nigel Farage missed the parliamentary debate on the biggest reset to Brexit since the referendum because he is overseas on holiday, the Reform UK leader has said. Following speculation that he was on holiday in France, Farage, who has not been seen in the Commons this week and did not present his GB News show on Monday, released a statement confirming he was away. “There seems to be great consternation in the press that they have not seen me for 48 hours. Well, they will have to wait some time,” he wrote. “After months of touring the UK in the run-up to our hugely successful local election campaign I will resume travelling the country next week as Reform moves to the next stage.”” – The Guardian

• Nigel Farage slammed for ‘not getting up from sunbed’ as he skips crunch EU deal debate – The Sun

Comment:

• Revealed: Why Keir Starmer’s strategy to tackle Reform UK could end up backfiring – Sam Coates, SkyNews

Boris wades in on Lucy Connolly jail term

“Britain is becoming a police state under Labour, Boris Johnson warned last night. He spoke as a sentencing row erupted after a mother locked up for a tweet after the Southport murders failed in a bid to reduce her lengthy jail term. Lucy Connolly posted a vile message about migrants – but supporters point out that criminals found guilty of far more serious offences have been handed substantially shorter sentences. And former prime minister Mr Johnson warned that the country is ‘losing its reputation for free speech’ as a growing number of online rants draw the attention of police.” – Daily Mail

• Jailed wife of ex-Tory councillor loses sentence appeal over Southport tweet – The Guardian

Comment:

• Lucy Connolly: ‘The judges should be ashamed of themselves. It’s cruel and twisted’ – Allison Pearson, Daily Telegraph

> Today

Our Survey: Rumours of a return for a blonde bombshell don’t have quite the explosive appeal he might have hoped

Journalist and former Ukip MEP Patrick O’Flynn dies aged 59

“Patrick O’Flynn, the former MEP and journalist, has died at the age of 59. Mr O’Flynn, previously a political editor of the Daily Express, was elected as Ukip MEP for the East of England in 2014. Nigel Farage, the leader of Reform UK, Ukip’s successor, said: “So sad to hear of the passing of Patrick O’Flynn. “Paddy was a great journalist, a great thinker, a great patriot and a titan of our joint cause. Thank you Paddy.” Boris Johnson, the former prime minister, hailed Mr O’Flynn as a “truly original conservative journalist who grasped the causes of much of the current discontent” and added: “His pieces were always punchy and persuasive. He will be missed.”” – Daily Telegraph

Comment:

• Remembering Patrick O’Flynn – William Clouston, The Spectator

News in brief:

• Reform would be an economic disaster (trust me, I worked for Liz Truss) – Simon Clarke, CityAM
• Kemi Badenoch is taking the Tories backwards – The Times View
• Kemi Badenoch isn’t taking the Lib Dem threat seriously – Peter Franklin, Unherd
• Today’s care visa holders, tomorrow’s care recipients – Melisa Tourt, The Critic