Newslinks for Friday 8th August 2025

Another of Starmer’s ministers forced to resign

“Rushanara Ali has resigned as homelessness minister following The i Paper’s revelations that she threw four tenants out of her east London townhouse before relisting the property for £700 a month more in rent. On Thursday evening, she wrote to the Prime Minister, saying it was “with a heavy heart” that she was offering her resignation. Ali said: “Further to recent reporting, I wanted to make it clear that at all times, I have followed all relevant legal requirements. I believe I took my responsibilities and duties seriously, and the facts demonstrate this. However, it is clear that continuing in my role will be a distraction from the ambitious work of the government. I have therefore decided to resign from my Ministerial position.” In a letter in response, Sir Keir Starmer thanked Ali for her “diligent work” at the Ministry of Housing, Communities and Local Government, praising her for helping to repeal the Vagrancy Act. The resignation came after The i Paper revealed that Ali told four tenants she was selling the property in Bow and gave them notice to leave – only to relist it weeks after they left for nearly £700 more a month in rent. Despite this all being legal at the time, the Bethnal Green and Stepney MP was accused of “staggering hypocrisy” after Labour passed a bill aimed at protecting tenants from landlords keen to relist properties for higher rent.” – The i

• Homelessness Minister Rushanara Ali quits over rent hike claims – BBC News
• Labour minister for homelessness Rushanara Ali quits after ‘evicting tenants then hiking rent by £700’ – The Sun
• Rushanara Ali: Labour promised to fix housing – but are they leading by example? – Sky News
• Tories call on Rushanara Ali to resign over rent hike row – ITN

Comment:

• The minister who removed tenants and upped rent failed morally and politically – Alison Phillips, The i
• Ali’s resignation shatters Starmer’s promise to end the ‘chaos – Tom Harris, Daily Telegraph
• Humiliating demise for Labour minister after a most egregious case of double standards – Jon Craig, Sky News

Reeves continues prepping for tax hikes

“The chancellor and prime minister will begin to prepare the ground for tax rises and reforms from September as part of a strategy to prepare the country for a difficult budget that could be held in November, the Guardian has been told. Although Treasury sources have insisted Rachel Reeves will stick to her pledge not to raise income tax, national insurance or VAT, senior Whitehall sources said that she and Keir Starmer had begun a series of meetings to thrash out the shape of the budget. A rise in gambling levies – advocated by the former prime minister Gordon Brown – is thought to be near-guaranteed as part of the package of tax rises. The pressure facing the government was underlined on Thursday when the Bank of England warned that it could be forced to keep interest rates at higher levels for longer than previously thought as soaring food prices linked to Labour’s tax increases threaten to drive inflation to 4% this year. The central bank cut interest rates to their lowest level in two years but warned Britain was facing a toxic cocktail of sluggish growth, rising unemployment and stubbornly high inflation. Reeves and Starmer have held talks over the past weeks to begin to set the parameters of the budget and the economic narrative before Labour’s conference. The government’s limited options were further emphasised this week when the National Institute of Economic and Social Research said “moderate but sustained” tax rises would be needed in the budget for Reeves to overcome a deficit of £41.2bn and restore a near-£10bn buffer. No date has been set for the budget, which was held last year on 30 October, but government sources expect that it will be in November, giving the chancellor a little longer to prepare for controversial tax rises or cuts – as well as hoped-for improvements in growth.” – The Guardian

• Reeves ‘vastly underestimated’ scale of private school parents’ VAT rebellion – Daily Telegraph
• Rachel Reeves may raise gambling tax to axe two-child benefit cap – The Times
• Rachel Reeves said this flagship policy would raise money – it may end up doing the opposite – Sky News
• Reeves’ Nics hike stunting growth and pushing up food prices, Bank says – The Independent
• Why Rachel Reeves’s state pension headache is about to get worse – The Times

Comment:

• Why Reeves has only herself to blame for Labour’s next wave of tax rises – Tim Wallace, Daily Telegraph
• Reeves will strike a savage blow to the economy if she increases taxes – Hamish McRae, The i
• Rachel Reeves is celebrating the Bank of England’s interest cut – but behind the scenes she has little to cheer – Gurpeet Narwan, Sky News
• Why Rachel Reeves isn’t panicking about tax — yet – Patrick Maguire, The Times
• Only growth Reeves has overseen is size of our economic black hole but I know ways to plug gap without huge tax rises – Julia Hartley-Brewer, The Sun

> Today: Ellie Cox: Labour thinks a tax is the best form of defence but it is killing aspiration and pushing the successful to leave

> Yesterday: Katie Lam: Our bloated state has got Britain trapped in an ever-tightening debt vice

Israel could cut UK security ties if Starmer recognises Palestine

“Israel is considering withdrawing defence and security co-operation with the UK if Sir Keir Starmer goes ahead with recognising Palestine, in a move that could undermine national security. Diplomatic sources have told The Times that Binyamin Netanyahu’s government is examining the response as one of a range of options if Britain presses ahead with Palestinian recognition next month. An official warned that Britain and other countries considering diplomatic recognition should “carefully consider” the consequences of such a move. Another diplomatic source said: “London needs to be careful because Bibi [Netanyahu] and his ministers have cards they could play too. Israel values its partnership with the UK but recent decisions mean it is coming under pressure and the UK has a lot to lose if Israel’s government decides to take steps in response.” Israel has reacted furiously to the decision by Starmer, accusing him of handing Hamas a “prize for terror” by going ahead with recognition outside of a peace process and before the remaining hostages are released… Over the past couple of years, Israel intelligence has provided crucial information to Britain’s spy agencies about Iranian-backed threats in the UK, which now pose as big a threat to Britain as Russia.” – The Times

• Israel approves plan to take control of Gaza City – Reuters
• Netanyahu divides Israelis and allies with plan for new military push in Gaza – BBC News
• Israeli sentiment on the war in Gaza is shifting – The Economist

Comment:

• Israel has little choice but to occupy Gaza – Richard Kemp, Daily Telegraph
• Will the occupation of Gaza allow Israel to crush Hamas? – Jonathan Sacerdoti, The Spectator

> Today: Georgia Gilholy: The BBC must release the Balen report or lose it’s license

News in brief:

• Democracy doesn’t work without a civilisational goal – Andrew Lilico, The Critic
• How Britain became hostage to crony capitalism – Benjamin BH Ko, CapX
• The return of retributive justice – Kathleen Stock, Unherd
• Reform’s amateur hour problem – Gareth Roberts, The Spectator