Hammond's evidence to the Commons Treasury committee - Summary
Philip Hammond, the chancellor, was once seen as a fairly hardline Eurosceptic but the Westminster kaleidoscope has been shaken so vigorously over the last six months that he has now emerged as the pro-Europeans’ best hope in cabinet. He did not say anything sensational or indiscreet in his evidence to the select committee, but for someone committed to giving “no running commentary” on Brexit, he was surprisingly candid. Here are the key points.
- Hammond said the government should keep its Brexit options as open as possible and he appeared to criticise his Brexiteer colleague who are adopting a more hardline stance. He argued that keeping options open was a good negotiating strategy.
I am trying not to rule anything out. Every possible combination should be considered, because I genuinely believe that every time we rule something out we hand a negotiating chip to the opposite side of the table. Keeping as many things on the table as possible is the best negotiating stance.
And, in remarks that seemed aimed at colleagues like Liam Fox, the international trade secretary, he suggested that taking a firm stance against the single market or the customs union would be mistake.
[Theresa May] needs the maximum possible space. My objective in supporting her is to ensure that she has the broadest range of options - properly costed and understood - and the maximum scope to deploy that broad range of options in what might be a wide-ranging negotiation.
I would say that those that are undermining the effort are those that are seeking to close down that negotiating stance, seeking to arrive at hard decisions that we don’t need at this stage. Keeping as many areas open, as many options open, as possible is the key to the strongest possible negotiating hand.
When it was put to him that the very existence of the international trade department suggested the UK would leave the customs union (because if the UK remains in the customs union, it will not be able to negotiate separate trade deals), Hammond said that “many EU countries have trade ministries even though they are inside the customs union” and that ministers in Fox’s department were “promoting British trade”.
- He said he there were “deeply pragmatic” at the top of the EU who would enable the UK and the EU to find a “mutually beneficial” solution to Brexit.
There has been quite a lot of position taking, as one would expect, at this stage of the negotiation. But I remain optimistic that there are, at very senior level across the European Union, some deeply pragmatic people who have shown by their actions time and again that they can find solutions when challenged with problems. And if we look at the history of the EU, how many times have people said there is no way through this problem or that problem? And yet the EU has been able to find a way through it. And I hope that pragmatism and engagement will deliver us a mutually beneficial solution.
- He was criticised by MPs after saying he would not publish internal Treasury reports analysing the costs and benefits of Brexit. To do so would undermine the UK’s negotiating position, he claimed. But Labour’s Rachel Reeves said this stance was “disappointing”. And Andrew Tyrie, the committee chair, said most members of the committee would probably agree with Reeves on this.
- He ruled out Scotland being able to negotiate its own trade deal with the EU. It was for the UK as a whole to strike a trade deal, he said.
- He said other EU countries would not want a Brexit deal that damaged the City because that would be bad for Europe as a whole. Perceptions on the continent that other European financial centres were likely to gain if London lost access to EU markets were likely to “melt away” as people realised that UK jobs were more likely to go to the US, or disappear, than to go to other European countries, he said. London was Europe’s financial services centre as well as the UK’s, he said.
Anything which broke up this deep and broad pool of capital and expertise in London would be hugely detrimental to the real economy across the EU as well as the UK.
- He said City firms were starting to be “realistic” about the likelihood of them not being able to retain the “passporting” regime that allowed them to operate in other EU countries. He said it in such a way as to imply he thought they were right to be “realistic” and to start considering alternatives.
- He said the UK would not impose immigration controls that stopped banks hiring highly-skilled workers from abroad after Brexit.
- He said the predictions that Treasury made about the negative impact of Brexit before the referendum were partly based on assumptions that were no longer valid. The BBC’s Kamal Ahmed has written more about this.
Hammond sounds the death knell on "Project Fear" https://t.co/PmUMttLw1u My Economics Blog
— Kamal Ahmed (@bbckamal) October 19, 2016
- He said Britain might have to beef up border controls considerably after Brexit. Asked if it was true that an additional 5,000 customs officers would be needed were correct, Hammond replied:
It would be our choice, of course, but assuming that we wanted to operate an efficient at-the-border customs system under World Trade Organisation rules, we may need significantly more infrastructure at the border than we have now.
- He said the government would not change the way the Bank of England decided monetary policy, despite Theresa May appearing to criticise its policy of quantitative easing in her Tory conference speech. He said
My understanding is that what the prime inister was trying to say is that we recognise that monetary policy, which is an important tool of macroeconomic policy, has a distributional impact. And, to the extent the government believes that distributional impact needs to be addressed or corrected, we also have tools available to us to do that ..
There will be no change in monetary policy. Monetary policy is independently determined, that will continue to be the case. The monetary policy committee will continue to make decisions on interest rates and recommendations on unconventional monetary policy.
That’s all from me for today.
Thanks for the comments.
Updated
Leadsom says UK could strike trade deal with EU 'in very short order'
It will be “perfectly possible” to secure a free trade agreement with the European Union in a short period of time, environment secretary Andrea Leadsom told a select committee this afternoon. She said:
We have total regulatory equivalence with the EU. We are not Canada, where there were a few hundred years of different rules and regulations that needed to be sorted out in a free trade agreement. We’re certainly not China, where there is different language barriers and so on.
There is the economics and the politics, and I think the economics says it would be perfectly possible, perfectly realistic to get a free trade agreement in place in very short order.
Don’t forget the rest of the world takes an average of just over two years to negotiate a free trade agreement, and if I’m not very much mistaken that’s exactly what we’ve got between now and when we leave the EU, and that’s for a country that hasn’t aligned its rules and regulations for 43 years.
I’m extremely optimistic. The economics says it’s in all our interests to seek an agreement to continue to trade freely with each other. We have a strong hand because we import more than we export. The stars are in a strong place, it’s for us to work our socks off to deliver that.
Updated
Culture and science and technology committee election results in full
And here are the voting figures for the two committees with Conservative chairs.
Culture
Damian Collins - 302
Helen Grant - 230
Science and technology
First round
Victoria Borwick - 71
Stephen Metcalfe - 190
Dan Poulter - 148
Derek Thomas - 18
Matt Warman - 90
Second round
Victoria Borwick - 73
Stephen Metcalfe - 193
Dan Poulter - 150
Matt Warman - 95
Third round
Stephen Metcalfe - 208
Dan Poulter - 171
Matt Warman - 101
Fourth round
Stephen Metcalfe - 241
Dan Poulter - 197
Brexit and home affairs committee election results in full
Here are the voting figures for the two committeee with Labour chairs.
Brexit
Hilary Benn - 330
Kate Hoey - 209
Home affairs
First round
Yvette Cooper - 216
Caroline Flint - 149
Paul Flynn - 65
Chuka Umunna - 111
Second round
Yvette Cooper - 235
Caroline Flint - 161
Chuka Umunna - 122
Third round
Yvette Cooper - 281
Caroline Flint - 196
Benn and Cooper elected to chair Brexit and home affairs select committees respectively
In the Commons John Bercow has just announced the results of the elections for four select committee chairmanship vacancies. Here is a list of the candidates. And here are the winners.
Culture - Damian Collins
Brexit - Hilary Benn
Home affairs - Yvette Cooper
Science and technology - Stephen Metcalfe
Ipsos MORI poll shows Tories 18-point lead over Labour
While I write up Philip Hammond’s evidence to the Treasury committee, here is the latest Ipsos MORI poll to ponder. It shows the Conservatives with an 18-point lead over Labour.
Andrew Tyrie goes next.
Q: In 2015 George Osborne changed the way he carried out distributional analyses for his budgets. That meant they could not be compared with previous figures. Will you consider reverting to the old system?
Hammond says he is aware of this issue. No distributional analysis is perfect. There were weaknesses in the old system.
He says he will publish a distributional analysis for his announcements, and that he will consider the points Tyrie is making.
And that’s it. The hearing is over.
There was quite a lot to unpack. I will post a summary soon.
Wes Streeting goes next.
Q: Surely parliament should have some say in what our opening position is in the Brexit talks?
Hammond says Theresa May has set this out. We are leaving the EU. We want controls on immigration. And we want the best possible access to the EU marketplace.
He says he does not want to constrain the prime minister any more than is necessary.
He says he remains optimistic that there are some “deeply pragmatic people” in the EU who can find solutions to these problems.
I hope that pragmatism and engagement will deliver us a mutually beneficial solution.
Q: Andrew Haldane, the Bank of England’s chief economist, recently said it was better to invest in property than in a pension. Do you agree?
Hammond says it is not for him to give investment advice.
Q; But isn’t this a statement of the obvious?
Hammond says the housing market is different in different parts of the country.
Steve Baker, a Conservative, goes next.
Q: When I was in the RAF there were documents that were secret because, if made public, that would be detrimental to the public interest. Should the same apply to cabinet documents about Brexit?
Hammond says he takes the old-fashioned view that cabinet conversations should stay private.
Updated
Hammond says the markets are relaxed about the government’s decision to delay the point at which the government budget moves back into surplus.
Q: What is your view on ringfencing certain budgets?
Hammond says, in relation to ringfenced budgets, commitments were made at the time of the election. He will say more on this in the autumn statement, he says.
Chris Philp, a Conservative, goes next.
TSC member @chrisphilp_mp says met with intl fin services chief said 10% of 9000 staff might have to leave UK if no passport or equivalence
— Faisal Islam (@faisalislam) October 19, 2016
Q: Can you say that you hope and expect that financial services will get guarantees enabling them to carry on trading with Europe?
Hammond says he does expect that. He says London is Europe’s global financial services markets. He thinks, as the negotiations go on, other EU countries will realise that the demise of London would be damaging to them. Any jobs lost might to to New York, not to Europe, he says.
- Hammond says he thinks other EU countries will realise that it is best for them to protect the City.
The Labour committee member Wes Streeting has been tweeting about Hammond’s refusal to guarantee that EU nationals will be able to stay in the UK.
Disappointing that - again - Hammond refuses to provide reassurance to EU nationals living in the UK about their post-Brexit futures.
— Wes Streeting MP (@wesstreeting) October 19, 2016
Q: Will you keep the same fiscal target, but just roll forward the deadline for getting the budget into surplus? Or will you adopt a new type of surplus rule?
Hammond says Kerevan should not assume anything. He should wait until the autumn statement, Hammond says.
Hammond says meeting export target will be 'stretching'
Q: What do you think of the target to double export sales over the next four years?
That will be “stretching”, says Hammond.
Q: Why do you keep the target if it cannot be met?
Hammond says the government has decided it is a useful target to have as a driver of policy.
- Hammond says meeting export target will be “stretching”.
Hammond rules out Scotland being allowed to have separate trade deal EU
The SNP’s George Kerevan goes next.
Q: Would you support Scotland having a different trade deal with the EU?
No, says Hammond. It will be for the UK as a whole to form a trade deal.
- Hammond rules out Scotland being allowed to have a separate trade deal with EU.
Q: Do you want a new competition policy? Or will it be much the same post-Brexit?
Hammond says some EU procurement rules are cumbersome.
But he does not support want John Mann seemed to be backing. (See 3.42pm.) That would lead to the government propping up uncompetitive industries, he says.
Andrew Tyrie goes next.
Q: You seemed to rule out deporting EU nationals. Did you?
Hammond says deportation is an emotive way. If the government does not get guarantees for its own citizens, it will have to decide what to do.
Q: But you could rule out deportations?
Hammond says that is correct. But it also has an obligation to get the best deal for Britons living abroad.
Hammond says he supports the Northern Powerhouse agenda.
If you look at reasons for the UK’s poor productivity, one key factor is the gap between London’s productivity and the productivity of other cities, and city clusters, he says.
Q: Would you back cities to sign city deals?
Yes, says Hammond. It is happening, he says.
Q: Do you anticipate adopting a buy British strategy for infrastructure projects?
Hammond says the government will introduce its own bespoke supply policy. It will seek to boost UK industry, so long as that does not involve the government paying too much for goods.
Q: William Hague has attacked the independence of the Bank of England. It looks like a concerted approach. Would you like to slap him down?
Hammond says Mann is wrong to say Hague is a friend of Hammond’s. The Bank of England will stay responsible for monetary policy, he says. There are no proposed changes to that.
Q: So whispers from the government should be ignored?
Hammond says, if Mann is talking about May’s conference speech, that was hardly a whisper. He says monetary policy has distributional consequences. The government can address those through fiscal policy, he says.
Q: Are there any situations in which you can see EU citizens being deported over the next five years?
Hammond says he hopes and expects that EU nationals will be able to stay in the UK.
Mann says Hammond is implying that deportations could happen.
Hammond says that is not what he said.
If the UK fails to reach an agreement with EU countries to guarantee reciprocal rights for their citizens, then the UK will have to decide what it does.
Labour’s John Mann goes next.
Q: You have said you back free movement for bankers. Will farmers be able to employees too?
Hammond says he is not proposing free movement. He is saying financial services firms would be able to bring in skilled workers. That is not the same as free movement.
With the agricultural sector, he says the government will look at “an appropriate way of addressing the needs of the agricultural sector” in its immigration framework.
Q: Is it your view that passporting has gone?
No, says Hammond. He says we should not take anything off the table.
Q: Are two big financial statements a year - a budget, and an autumn statement - one too many?
Hammond says he knows that some people argue this. He will consider their case.
- Hammond says he will consider the case for getting rid of the autumn statement.
Updated
Hammond says the financial services in London is very efficient, because of its scale and depth. That means that it can sustain a lot of business that only generates margin profits. If the market were to change, that business might move abroad.
Q: What work has the Treasury done looking at any systemic risks that might emerge if there is no transitional arrangement?
Hammond says this is more a matter for the regulators.
Hammond says he cannot imagine any circumstances where the government would use immigration controls to stop skilled workers coming to the UK to work in financial services.
Although people have concerns about immigration, they do not want to exclude this group, he says.
Or students, someone says.
Perhaps, says Hammond.
Stephen Hammond, a Conservative, goes next.
Q: Does the government accept that passporting is key to the financial services sector?
Hammond says that, if passporting were retained, then the problem would go away for them.
But they are “realistic”, he says. Financial firms are looking at “other options” too.
This is from the Spectator’s James Forsyth.
Logic of Hammond’s position is that the UK’s Article 50 letter will say very little indeed…
— James Forsyth (@JGForsyth) October 19, 2016
Jacob Rees-Mogg, the Conservative leave supporter, goes next. He says he has been encouraged by what Hammond has said. Hammond does not sound like a “Bremoaner”, he says.
Q: What is your view of free trade?
Hammond says he supports free trade. But he is aware that there is a backlash against it around the world, he says.
Q: The Treasury document from earlier this year said, if we were trading with the EU on WTO terms, we would have to apply tariffs on European goods. Is that right?
Hammond says the UK would not have to apply tariffs. But there might be pressure to apply “reciprocity” (ie, to apply tariffs on EU goods in retaliation for them applying tariffs on ours).
Q: But as a chancellor would you ever stand up and apply a tax on bread?
Hammond says he does not want to rule out options.
Q: Would you put not being in the single market but staying in the customs union as an option?
Hammond says every possible option should be considered.
Every time something is ruled out, that helps the UK’s negotiating partners, he says.
Hammond says Ireland will be the country most affected by Brexit, apart from the UK.
Here is some Twitter comment on the hearing so far.
From the Spectator’s James Forsyth
Striking Hammond performance at the TSC. Won’t say he read May’s conference speech before it delivered & confirms Cabinet Brexit splits
— James Forsyth (@JGForsyth) October 19, 2016
From the Sun’s Tom Newton Dunn
Hammond makes thinly veiled attack on Liam Fox: "Those that are undermining that effort are those seeking to close down options" #tsc
— Tom Newton Dunn (@tnewtondunn) October 19, 2016
Hammond hints Theresa May will push for financial services' request for a transitional period post-Brexit: “We understand that ask” #tsc
— Tom Newton Dunn (@tnewtondunn) October 19, 2016
From the Times’ Philip Aldrick
Hammond "That's a question for others. I didn't propose that there would be a substantial fiscal divi" Lots of digs at the Brexit ministers
— Philip Aldrick (@PhilAldrick) October 19, 2016
Labour’s Helen Goodman goes next.
Q: The rules of origin rules could add 24% to the cost of trade. The Guardian has highlighted today the government’s analysis of leaving the customs union. Are you looking at this?
Hammond says he cannot comment on a leaked document.
Q: In Norway some firms find rules of origin so onerous that they prefer to pay tariffs.
Hammond says the rules of origin rules impact differently on different sectors.
The Treasury is looking at all of these areas, and many more, to analyse the benefits and costs of different course of action, he says.
Q: Will you ensure that there is a sensible transitional period? Uncertainty is a big worry for the City.
Hammond says he agrees with Streeting about uncertainty being an issue. He says the industry is proposing some kind of transitional period. The government “understands that ask from the financial services industry”. But the government will not provide a running commentary.
Tyrie says there is a running commentary in the press every time the cabinet Brexit committee meets. The best way to avoid that would be to stop it meeting, he says.
Q: What do you think leave voters will be disappointed about? The lack of a substantial fiscal dividend from Brexit?
Hammond says he never promised voters a substantial fiscal dividend from Brexit.
But he takes it as a given that, in expecting the UK to leave the EU and to control immigration, voters want the government to protect jobs too.
Wes Streeting, the Labour MP, is asking the questions now.
Q: You used to say we should stay in the single market. Is that still your view?
Hammond says the key thing is that the UK can trade as much as possible with the EU.
Q: But do you still support membership of the single market?
Hammond says the key point is access.
- Hammond refuses to commit the UK to staying in the single market.
Hammond says government should keep Brexit options open as much as possible during Brexit talks
Hammond says “keeping as many options open as possible” is the secret to ensuring the Brexit negotiations succeed.
- Hammond says government should keep its Brexit options open as much as possible during the Brexit talks.
Tyrie asks Hammond about polling suggesting many people do not think foreign students should be included in the immigration figures.
Hammond says that is “very interesting”.
(He says it in such a way as to suggest he is sympathetic.)
Tyrie says Treasury's internal reports on Brexit impact should be published
Reeves says she thinks the public and parliamentarians deserve to see the government’s Brexit modelling. Earlier Hammond said that would not be published.
.@PHammondMP: Any future modelling or analysis by @hmtreasury will not be published - it will only be used by negotiators
— BrexitCentral (@BrexitCentral) October 19, 2016
Andrew Tyrie, the committee chair, says he thinks most members of the committee will agree with Reeves.
- Tyrie says Treasury’s internal reports on Brexit impact should be published.
Hammond says the government cannot have a public debate about its negotiating position on Brexit. If it had such a debate, it would not have an effective negotiating position.
Setting out the government’s position would undermine it “in a spectacular way”, he says.
Labour’s Rachel Reeves asks Hammond if the government still sticks by the Treasury analysis published during the EU referendum campaigning setting out the negative effect on growth three different Brexit options would have.
Hammond says that set out the government’s view at the time.
The forecasts in that document did not make allowance for any mitigating actions that might be taken after a vote for Brexit, he says. But in fact the Bank of England and the government have taken steps to limit the downsides of Brexit, he says.
He also says the government is not aiming for any of the three options in the document. It is looking for a bespoke deal for the UK.
Hammond says government has not decided yet whether to leave EU customs union
I missed the opening of the hearing because of a problem with the video feed. But it is working now.
Here are some of the things said already.
- Hammond says there are no plans to change the way monetary policy is managed. That means the government does not intend to interfere the independence of the Bank of England.
"We have no plans to change the way monetary policy is managed in this country. It is independently determined." @PHammondMP
— Kamal Ahmed (@bbckamal) October 19, 2016
Hammond hits the soundbites: "monetary policy has a distributional impact...Fiscal policy will correct any of the distributional outcomes"
— Chris Ship (@chrisshipitv) October 19, 2016
- Hammond says no decision has been made yet on whether the UK will leave the customs union.
Andrew Tyrie: "Will the UK be leaving the customs union?" @PHammondMP "We haven't made any decision on that yet."
— Kamal Ahmed (@bbckamal) October 19, 2016
Labour challenges Fox over claims UK can inherit terms of EU's trade deals with non-EU countries
The Guardian’s splash today, about ministers being told that leaving the EU customs union could lead to a 4.5% fall in GDP by 2030, includes this revelation about Liam Fox, the international trade secretary.
The trade secretary told cabinet colleagues that he had received assurances from non-EU countries that they would allow the UK would be able to continue trading with them on the same conditions [as set out in their trade deals with the EU] until new agreements had been drawn up.
Barry Gardiner, Fox’s Labour shadow, has challenged Fox to provide evidence that this is correct. Most experts think the opposite, says Gardiner. In a statement he says:
Legal advice from the European Commission and confirmed by the House of Commons library suggests that the UK would have to renegotiate all those trade agreements concluded whilst we were members of the EU.
If Dr. Fox has the private assurances he has claimed from non-EU trade partners, then these need to be made public and confirmed because the UK must increase its trade to these countries by 37% over the next 15 years just to stand still.
A “cross your fingers” approach to what would constitute a 4.5% drop in GDP is simply not good enough.
Today’s reports again highlight just how dangerous this split in the government is. Policy decisions cannot be based upon private “gentleman’s agreements” made off the record by foreign politicians who may or may not still be in office when we need to call them in.
People need to know their jobs are being protected and businesses need clarity about the basis of future trade. This government is offering neither.
Among those who have argued in the past that the UK would not just be able to inherit the trade deals the EU has with non-EU countries after Brexit is the Commons Treasury committee. In a report earlier this year it said:
Were the UK to leave the EU, it is very uncertain whether it would be able to continue to participate in these agreements. The extent to which the UK would have to enter into negotiations to ensure its continued participation would probably depend on the attitude of the contracting parties, about which little is known.
The BBC’s Laura Kuenssberg has posted an interesting blog about Philip Hammond, ahead of his appearance before the Treasury committee, looking at why there have been reports questioning whether he will stay long as chancellor. Here’s an excerpt.
Number 10 sources say they are “baffled” by the mutterings that Mr Hammond is an obstruction, or that he’s holding up the Brexit process. Treasury sources say the stories, including the suggestion that he might resign, are “utterly ridiculous”.
So what is going on?
First off, Philip Hammond has made no secret of his hope that the UK can retain economic ties with the EU that are as close as possible, and is on the record defending immigration - holding out the possibility that the control of migration might not be as tight after we leave the EU as some other ministers believe.
‘Cooler’
So for MPs suspicious of the motives of some ministers who backed Remain in the referendum, the chancellor is an obvious political target. For passionate Brexiteers he is an obstacle to a short, sharp departure from the EU who must be overcome.
Philip Hammond gives evidence to the Treasury committee
Philip Hammond, the chancellor, is about to give evidence to the Commons Treasury committee.
Here is Heather Stewart’s preview story.
Lunchtime summary
- Jeremy Corbyn has accused the Conservatives of producing “parity of failure” in the NHS. He focused on mental health and health generally with all his questions at PMQs and told May:
I started by asking you about parity of esteem - all this government has produced is parity of failure. Failing mental health patients, failing elderly people who need social care, failing the four million on the NHS waiting list, failing five times as many people waiting more than four hours at A&E departments, and another winter crisis is looming. The Society for Acute Medicine, I believe, has it right when it says this funding crisis and the local government funding crisis is leaving the NHS on its knees.
May rejected his claim. She told him:
What has happened in the NHS over the last six years? More patients being treated, more calls to the ambulance service, more operations, more doctors, more nurses - that’s what’s been happening in the NHS.
But let’s just look at what your party’s approach to the National Health Service is: a former shadow health secretary said it would be irresponsible to put more money in the National Health Service; a former leader of the Labour party wanted to weaponise the National Health Service.
At every election, the Labour party claims that the Conservatives will cut NHS spending, after every election we increase NHS spending. At every election Labour claims the Tories will privatise the NHS, at every election in government we have protected the NHS. There’s only one party that has cut funding for the NHS - the Labour party in Wales.
- A Labour internal investigation has found that Angela Eagle received hundreds of “abusive, homophobic, and frightening” messages from party members. As Rowena Mason reports, it also concluded that it was “highly likely” that a window vandalised at her office building – with a brick according to the report – was related to her shortlived leadership challenge to Jeremy Corbyn. The investigation was conducted following complaints and counter-complaints about events in her local party, Wallasey. It was carried out by officials and upheld by a subcommittee of the party’s ruling body.
- Simon Kirby, the City minister, has told peers that Philip Hammond, the chancellor, has made the case for financial services “loud and clear” in cabinet talks on Brexit. Kirby told a Lords committee:
The Treasury is responsible for financial services. He [Hammond] has made that case loud and clear at cabinet. All departments are working together to get the best possible deal.
At PMQs Theresa May said the government was giving the NHS an extra £10bn - £2bn more than it asked for. (See 12.13pm.)
But Labour point out that the cross-party Commons health committee questioned this in a report it published in the summer. Here is the key excerpt from the report.
Our starting-point has been to consider the Spending Review claim that the NHS will receive an additional £10 billion above inflation by 2020–21. There are two reasons why this figure does not, in our view, accurately reflect the impact of the Spending Review on health expenditure. The first is that the £10 billion figure is expressed in 2020–21 prices, rather than the current (2015–16, the time of the Spending Review) prices which would normally be expected to have been used in the calculation of such figures. At 2015–16 prices, NHS England’s budget will rise by £9.5 billion between 2014–15 and 2020–21. The second reason is that the £10 billion figure refers to the additional sum allocated to NHS England, not to total health spending. Part of the increase in funding to NHS England is being funded by reductions in areas of health spending which fall outside NHS England’s budget, such as the public health grant to local authorities, and education and training funded through Health Education England. Those reductions amount to £3.5 billion in real terms, at 2015–16 prices, between 2014–15 and 2020–21. The overall impact is that total health spending—the Department of Health’s budget—will increase in real terms, at 2015–16 prices, by £6 billion between 2014–15 and 2020–21. If the spending review period is considered—2015–16 to 2020–21—that increase is £4.5 billion.
Following her question at PMQs (see 1pm) the Labour MP Lisa Nandy is now saying Theresa May must come clean about when she knew about the concerns about Dame Lowell Goddard’s leadership of the child sexual abuse inquiry. In a statement Nandy said:
Theresa May set up the abuse inquiry and appointed its chair. She was the home secretary in April when serious concerns were raised with her department, and only she had the power to act on them. Today she suggested that she did know of problems but did nothing at all. For this investigation to regain the trust of survivors the prime minister must now come clean about what she knew when, and why she failed to intervene.
PMQs - Verdict from the Twitter commentariat
This is what political journalists and commentators are saying about PMQs on Twitter.
Generally the view is that it was a bit dull, and May v Corbyn was a draw.
(But May v Nandy was a different matter. See 1pm. Journalists on Twitter are saying Nandy asked the sharpest Labour question.)
From ITV’s Chris Ship
No score draw #PMQs
— Chris Ship (@chrisshipitv) October 19, 2016
From the Daily Mirror’s Jason Beattie
Snap verdict on #PMQs Corbyn checks May on state of the NHShttps://t.co/mqt73T5JgP pic.twitter.com/fx6PsXUf8P
— Mirror Politics (@MirrorPolitics) October 19, 2016
From the Sun’s Harry Cole
Useless Jeremy Corbyn was as big a joke as Theresa May’s blue birthday gag at PMQs https://t.co/PPd06yKmIo
— Sun Politics (@SunPolitics) October 19, 2016
From the New Statesman’s George Eaton
#PMQs review: Theresa May forced to admit that she heard of problems with child sex abuse inquiry https://t.co/vKGkebJS00 pic.twitter.com/ThkUktAiSq
— The Staggers (@TheStaggers) October 19, 2016
From 5 News’ Andy Bell
Started well but @jeremycorbyn seemed to lose focus and @theresa_may able to neutralise what might have been effective line on #NHS #pmqs
— Andy Bell (@andybell5news) October 19, 2016
From Newsweek’s Josh Lowe
That was a bit like a Miliband/Cameron round (Ed even got a mention). Lab win on substance of NHS, May brushed most of it off well-ish #PMQs
— Josh Lowe (@JeyyLowe) October 19, 2016
From the Sun’s Tom Newton Dunn
The most stultifyingly tedious #PMQs exchange yet between Corbyn and May. To his blunt soundbites on NHS, she offered no illumination back.
— Tom Newton Dunn (@tnewtondunn) October 19, 2016
From the Guardian’s Jessica Elgot
Corbyn good at sticking to issues that ripple outside SW1. He'll still be criticised for not bringing up Tory cabinet splits though #pmqs
— Jessica Elgot (@jessicaelgot) October 19, 2016
From the i’s Nigel Morris
Jeremy Corbyn has learnt to go on issues at #PMQs which unite his MPs ... hence no mention of Brexit, Heathrow today
— Nigel Morris (@NigelpMorris) October 19, 2016
From the Independent’s John Rentoul
I feel v old. On my 6th prime minister saying "more patients, more operations, more doctors, more nurses" at #PMQs
— John Rentoul (@JohnRentoul) October 19, 2016
From CapX’s Iain Martin
Pity the sketchwriters. 5 years of May (and Corbyn) PMQs is going to be hard work
— Iain Martin (@iainmartin1) October 19, 2016
Updated
There was also a strong question from the Labour MP Lisa Nandy, who asked about the revelation yesterday that the Home Office was told about concerns about Dame Lowell Goddard, the child sexual abuse inquiry chair, earlier than the Home Office had admitted. Nandy asked May:
She set up the inquiry, she appointed the chair, she was the individual responsible for the inquiry’s success, she was the home secretary in April and she was the only person who had the power to act. Can she now finally tell us when she personally learnt of the serious problems developing in this inquiry and why it was she took no action at all?
May replied:
The home secretary cannot intervene on the basis of suspicion, rumour or hearsay.
This is significant because it implies that May had heard concerns about Goddard before 29 July, the date when inquiry staff formally complained to the Home Office.
But May also said that, although concerns were raised with a Home Office director general in April (as MPs were told at a committee hearing yesterday), that conversation was confidential. May said:
She refers to the statement that was made yesterday in this House ... She will also have noted that that conversation was asked to be confidential .... I think it is important for us to recognise that when the Home Office was officially informed of issues it acted.
Angus Robertson's questions
I missed the question from Angus Robertson, the SNP deputy leader and leader at Westminster, earlier (as usual) because I was writing the PMQs’ snap verdict. But here it is.
Robertson asked about arms sales to Saudi Arabia, and their use in Yemen. May replied:
As he knows we have one of the toughest regimes in the world in relation to arms exports ... we have pressed the Saudi government to properly investigate these issues.
Then Robertson said arms sales should be halted. He said:
They’re dropping missiles that are made in Britain ... Can she give this House an assurance that civilians have not been killed by Paveway Four bombs which are partially built in Scotland? If she doesn’t know the answer to that question, how can she possibly in good conscience keep selling them?
May resorted to just saying reports of attacks on civilians should be investigated.
The point I made was a very simple one: we press for proper investigations into what has happened in those incidents before we reach conclusions ... We do have strong relations with Saudi Arabia - that is important ... What is important with incidents about which there are concerns is that they are properly investigated.
Among John Bercow’s achievements as Speaker is unofficially extending the time of PMQs. It is supposed to last for half an hour. But he normally lets it overrun by around 10 minutes and that one went on for 45 minutes.
Updated
Gerald Jones, MP for Merthyr Tydfil, says there will be a minute’s silence for the victims of Aberfan on Friday. Will May mark that too?
May says she thinks it is appropriate that we all mark that moment and show our respect.
And that’s it.
Andy Burnham, the former shadow home secretary, says the new inquest into the Birmingham pub bombings is due to start soon. The police have a legal fund of £1m. But the relatives of victims have no funding.
May says they have been encouraged to apply for money from the legal aid fund. She hopes they will get it.
Oliver Dowden, a Conservative, asks May if she agrees that all parties should refuse to tolerate antisemitism.
May says she agrees. The Commons should send a very clear message on this, she says. Every single political party has to agree. She says she wants Corbyn to think “very carefully” about the environment created in the party.
Labour’s Robert Flello says the pottery industry is enjoying a modest revival. What will May do to ensure Stoke-on-Trent ceremics manufacturers keep tariff-free access to the EU.
May says she wants to ensure the UK has the best possible access to the EU.
Labour’s Lucy Powell says only a tiny proportion of grammar school pupils qualify for free school meals. Will she accept there is no evidence base for expanding grammar schools?
May says she thinks it is wrong to have a law banning the expansion of good schools.
Bob Neill, a Conservative, asks about the murder of a prisoner in Pentonville. Will the government have a review of the National Offender Management Service.
May says the justice secretary, Liz Truss, has raised the issue of violence in prisons with her. Truss is taking action to address this.
Sir Hugo Swire, a Conservative, asks if May will back the first ever meeting of Commonwealth trade ministers.
May says the government applauds this and is looking for trade deals with the Commonwealth. It wants to make a success of Brexit.
Alison Thewliss, the SNP MP, asks about the rule saying women who give birth to a third child due to a rape will not be affected by the two-child benefit limits. How will the government implement this?
May says the government is looking at this. It wants to allow this in the right way.
Anne McLaughlin, the SNP MP, says May recently turned 60 but wants to keep working. What will the government do for the women losing out because of the rapid increase in the state pension age.
May says transitional arrangements are in place. She says 81% of those women affected by the 2011 change will only have to wait an extra 12 months for their pension.
Labour’s Maria Eagle says Concentrix, which assesses people for benefits, is causing great distress by accusing people of wrongly being in relationships.
May says Eagle should welcome the fact the government has stopped some disabled people having to be regularly reassessed for benefits.
Kenneth Clarke, the Conservative former chancellor, says May does not want to bring her Brexit plans to the Commons. Has she noticed that her ministers have been briefing the papers, and launching attacks on ministers who disagree with them? Does she agree there should be parliamentary support for the broad strategy.
May says the government is clear about its aims. Parliament will have its say during the course of the lenghty negotiations, lasting “two years or more”, not least on the great repeal bill.
Richard Fuller, a Conservative, says he is glad the government is making a decision on airports next week. What is the timetable for implementation?
May says this has been debated for 40 years. This month the government will take a decision. But then it has to go to statutory consultation. After that the government will bring forward a national planning statement, on which MPs will vote.
PMQs - Snap verdict
PMQs - Snap verdict: May had a strong finish, but she may be a little unnerved just how vulnerable she is on the NHS and how easy it was for Corbyn to attack her on health. Corbyn started with two focused and very reasonable questions on mental health. It was noticeable how May seemed much more comfortable when she could talk about the police (her old portfolio) and the issue of mental health patients being held in cells, although Corbyn’s ‘this is still not good enough’ argument was effective. When he turned to the NHS, he just kept highlighting the funding crisis. He was not proposing anything specific, and he effectively ruled out any A&E closures (which is not a position many NHS managers would support), allowing May to outflank him by stressing the Tories’ commitment to localism. But Corbyn was able to shoot down this point quite well with a jibe about the NHS Act, which may be four years old but at least is more relevant than something Andy Burnham said before the 2010 general election (increased spending being “irresponsible”), which was one of the lines May relied on.
Updated
Corbyn says they all want local government and the NHS to work together better. But council funding has been cut. There is bed blocking, because no care is available. The problem is caused by a funding crisis. The government had disguised the extent of the crisis through temporary bailouts. That is a good thing. But why are they in crisis in the first place. Next month sustainability plans will be published. Many are worried because of the threats to A&E departments. Will there be no closures?
May says the government will spend £500bn over the course of this parliament on the NHS. But there is a difference. She says she thinks decisions should be taken locally. The Labour party favours a top-down approach.
Corbyn says top-down is what we got from the last government. It cost £3bn. She says the government promised parity of esteem, but has just delivered parity of failure instead. Another winter crisis is looming. The Society of Acute Medicines has it right when it says the NHS is on its knees.
May says more patients are being treated, and there are more doctors and nurses. A former health secretary said spending more on the NHS would be irrreponsible. Ed Miliband wanted to weaponise the NHS. Labour say at every election that the Tories will cut spending on the NHS. But the Tories spend more. There is only one party that has cut spending on the NHS, the Labour party in Wales.
Corbyn says no one with a mental health condition should be taken to a police cell. He commends those police commissioners who have stopped this. But NHS trusts are in a crisis. NHS providers says it is the worst crisis in NHS history. In 2010 the NHS was in surplus. What has happened?
May says the government asked the NHS to come up with a five-year plan. Simon Stevens, the NHS England chief executive, asked for £8bn. The government promised him £10bn.
Corbyn says the NHS has gone into the worse crisis in its history. And yesterday Simon Stevens told the select committee he did not think the NHS was getting the money it needed. Will May address the reckless and counterproductive adult social care cuts.
May says Stevens said last autumn the case for the NHS had been heard and supported. She says extra money has gone into the better care fund. But it is important that the health service and local authorities work together to provide social care. She wants to see more of that. Labour would not put the money in, she says.
Jeremy Corbyn also starts by remembering the Aberfan tragedy. He recalls collections for the disaster fund at the time. And he says Huw Edwards’ BBC documentary on it last night was tremendous.
He turns to mental health, and asks if parity of esteem is being delivered.
May says she also recalls the Aberfan disaster. And she thought the Huw Edwards’ documentary was poignant. It showed what happens when those in power do not take responsibility.
On mental health, she says the government is investing more. And the number of children’s beds is being increased.
Corbyn quotes a letter from Colin. A family member of Colin’s has a chronic mental health condition. He says too often it is left to the police. The Devon and Cornwall chief constable is threatening court action because he is being left having to deal with mental health issues.
May praises those in the Commons who have spoken about their own mental health problems. She says she is proud of the fact that, as home secretary, she changed the way police forces dealt with mental health. The number of people being put in police cells because of mental health issues has more than halved.
Peter Bone, a Conservative, says it is his birthday. May has already given him a birthday present by letting everyone know we will leave the EU by 31 March 2019. The government wants to close Victorian prisons. That is spot on. Will May back reopening Wellingborough prison.
May wishes Bone a happy birthday, and says he hopes Mrs Bone will treat the occasion in an appropriate manner.
That seems to have flummoxed everyone ...
After the laughter dies down, May says Wellingborough is being considered for a new prison.
Updated
Theresa May starts by saying MPs will want to remember those affected by the Aberfan disaster 50 years ago this week. It is right that we pause and reflect on this important anniversary, and recognise the solidarity and resilience of the people of Aberfan.
What will Jeremy Corbyn go on today at #pmqs? "Who knows?!" says @bbclaurak #bbcdp
— Asa Bennett (@asabenn) October 19, 2016
PMQs
PMQs is about to start.
Here is the list of MPs down to ask a question.
Here is the list for #PMQs - other MPs who catch the Speaker's eye will also get to ask a question. pic.twitter.com/NsSXmMElYc
— PARLY (@ParlyApp) October 19, 2016
You can read all today’s Guardian politics stories here.
As for the rest of the papers, here is the Politics Home list of top 10 must-reads, and here is the ConservativeHome round-up of today’s politics stories.
And here are four articles I found particularly interesting.
- Steven Swinford and Kate McCann in the Daily Telegraph says an ally of Philip Hammond says the government will not formally rule out any options for post-Brexit Britain until after the German elections next autumn. The Telegraph has headlined the story on Hammond telling Theresa May that he is not resigning (which might not come as a big surprise), but the comment about keeping all options open for at least another year is more interesting.
An ally of Mr Hammond told The Daily Telegraph he has made it “absolutely clear” to Mrs May that he will not stand down as Chancellor.
The source said that he believes he is the “right man for difficult times” and won’t be “pushed about” by Brexit ministers.
He will not formally rule out any options for post-Brexit Britain until after elections in Germany and France next year, the source said.
“Sanity will prevail when economic interests assert themselves more strongly than the political ones after the elections in Europe,” the source said.
“The Brexiteers can say what they like but the economic realities are what they are. He has made it absolutely clear to Theresa that he is here to stay. His responsibility will be to keep the econiomy in the best shape possible.
“He is a man who is guided by the figures and the facts. Where there are risks he will not be afraid to spell them out.”
Boris Johnson and David Davis have formed a pact to drive a “hard Brexit” agenda and rebut warnings of its economic consequences, cabinet colleagues claim.
The pair agree common positions and tactics before meetings of the Brexit sub-committee where they push “an absolutist” vision of Britain’s future outside the EU, say ministers who backed Remain in the referendum.
Senior Conservatives claim that the pair go out of their way not to contradict one another and that their approach is broadly aligned.
Mr Johnson is reported to have repeatedly brushed away concerns raised by colleagues in meetings, insisting that Britain is on course to sign a trade deal with the EU within the two years afforded by Article 50, avoiding any economic shocks.
The partnership has unnerved Remain campaigners, who have not formed a similar united front.
Before the referendum campaign began, Business for Britain calculated that cutting tariffs against non-EU states would save a whopping £933 a year for the average family.
Think of how that extra spending power would lift the economy. Instead of printing extra money, we’ll be letting people keep more of what they earn ...
You may be wondering why Vote Leave didn’t make more of the £933 savings figure. The honest answer is that we doubted people would believe it.
Lord Mandelson and the millionaire City public relations man Roland Rudd were last night revealed as the two figures masterminding the campaign to frustrate Brexit.
The two arch-europhiles are pulling the strings of the Open Britain campaign group, which is demanding that MPs have a new vote on Britain leaving the EU.
The organisation – described as a band of ‘fifth columnists’ by Leave MPs last night – does not reveal the names of its board on its website.
But records from Companies House show Lord Mandelson and his close friend Mr Rudd both hold key roles. Both men previously tried to drag Britain into the euro and were prominent figures in the failed Remain referendum campaign.
Greg Hands, an international trade minister, has tweeted this.
Great to see the Union Jack driverless car and support Milton Keynes at #MIPIMUK this morning. https://t.co/OzufRGTUnr
— Greg Hands (@GregHands) October 19, 2016
And in reply the Labour MP Jamie Reed posted this.
Metaphor for our times, Greg. https://t.co/YDGDTRMOoi
— Jamie Reed (@jreedmp) October 19, 2016
Here is my colleague Rowena Mason’s story about the Labour report into the abuse directed at Angela Eagle.
Meanwhile, the SNP continues to push Scotland’s case post-EU referendum in every way that it can.
This morning, senior Scottish government ministers are travelling to Brussels to hold a series of meetings. It will be the first time that new Brexit minister Mike Russell has visited the European Parliament since his appointment. Speaking ahead of the visit, Russell said:
Since the referendum result in June, the Scottish government has worked hard to continue our strong relationship in Brussels and protect Scotland’s interests across Europe.
A key objective from these talks will be to work with others across the political divide to avert a hard Brexit for Scotland – there is simply no UK mandate for that. I will also raise the first minister’s commitment to publish proposals that would allow Scotland to stay in the single market and to preserve aspects of our relationship with the EU even if the rest of the UK is intending to leave.
Meanwhile, SNP MP Joanna Cherry will lead an opposition day debate at Westminster later on the status of EU nationals in the UK, in which she will accuse the Theresa May’s government of using them as “bargaining chips” in Brexit negotiations.
My colleague Ewen MacAskill spent quite a lot of time in Liverpool earlier this year, covering developments in the Labour party, including events in Wallasey. You can read all his reports here.
Sadiq Khan, the mayor of London, has ordered a pay audit for people working for City hall or mayoral bodies. He did so after discovering that some Transport for London subcontractors (18 cleaning and security staff working at the London Transport Museum) are paid less than the London living wage, which is currently £9.40 an hour. They are now having their wages increased.
Khan said:
It is shocking that people employed under the previous mayor were not paid the London living wage. Today I’ve tasked my deputy mayors with ensuring that all staff working at City hall and mayoral bodies are paid the London living wage.
And here is more from, the Labour inquiry report on the subject of the broken window.
It is highly likely that the brick thrown through the window of Angela Eagle’s office was related to her leadership challenge. The position of the window made it very unlikely that this was a random passer-by. The window was directly between two Labour offices. Untrue rumours were subsequently spread that the building was occupied by many companies and the window was in an unrelated stairwell.
This was based on a Companies House search which found that the landlord had a number of companies registered there; in fact the only other occupant is the landlord on the upper floor. Once this incorrect rumour was spread, members repeated it as clear evidence Angela Eagle was lying. This is categorically untrue.
The office of Angela Eagle has endured a significant amount of abuse, including abusive and intimidating phone calls. Staff members were eventually forced to unplug the phone. The investigation has received many hundreds of abusive, homophobic, and frightening messages that have been sent by Labour members to Angel Eagle. Where appropriate, members have been administratively suspended pending investigation.
The Independent’s Ashley Cowburn has been tweeting extracts from the Labour report into Angela Eagle and Wallasey CLP.
The report, which draws on 100 anonymous witnesses, claims Wallasey CLP meeting have "challenging for some time". pic.twitter.com/Lf3oCzayzp
— Ashley Cowburn (@ashcowburn) October 19, 2016
Investigation found some members “have truthfully claimed that homophobic instances occurred during the AGM” pic.twitter.com/6YQaaGEH11
— Ashley Cowburn (@ashcowburn) October 19, 2016
On the brick thrown at her office (which some people attempted to deny): pic.twitter.com/O9DXukQxkm
— Ashley Cowburn (@ashcowburn) October 19, 2016
One member of CLP had a hashtag created to encourage people to ‘shame’ him publicly: pic.twitter.com/5aMaEQHIPV
— Ashley Cowburn (@ashcowburn) October 19, 2016
Likely Angela's CLP will now be suspended until the spring. "Not possible for CLP to meet safely in current climate" pic.twitter.com/oYKDBvOYW5
— Ashley Cowburn (@ashcowburn) October 19, 2016
The unemployment figures are out. There is a minor increase in unemployment, but the rate remains unchanged at 4.9%. And employment is at the highest level since records began in 1971.
My colleague Graeme Wearden has full details on his business blog.
British Dental Association opposes call to verify age of child migrants with dental checks
The child migrants from Calais story has taken a bizarre and rather callous twist. The Conservative MP David Davies is demanding dental checks on the new arrivals, amid claims that they are older than they claim. The Sun is splashing on his comments today.
Wednesday's Sun front page:
— BBC News (UK) (@BBCNews) October 18, 2016
"Tell us the tooth"#tomorrowspaperstoday #bbcpaperspic.twitter.com/hHKrMBJUIx
On the Today programme this morning Davies (who is MP for Monmouth and not to be confused with his namesake, the Brexit secretary, David Davis) defended his position.
We must not be naive about this. It’s no good Lily Allen turning up with tears in her eyes and all the rest of it - we need to be quite hard-nosed here.
People are desperate, I understand that, and they will say what they need to say to get in. When I was in the camp in Calais there were caravans with notices on saying ‘Come here, we will coach you in what to say to get into the UK’.
People in Britain, I think, want to help children but we don’t want to be taken for a free ride either by people who seem to have got to the front of the queue even though they clearly look, in some cases, a lot older than 18 ...
Someone who is willing to throw themselves on to an electrified rail line or jump into a moving lorry isn’t going to be terribly worried about having an X-ray.
But the British Dental Association has said that subjecting child migrants to dental checks to verify their age would be “inappropriate and unethical”. A spokesman for the BDA said:
We are vigorously opposed to the use of dental X-rays to determine whether asylum seekers have reached 18. It’s not only an inaccurate method for assessing age, but it is both inappropriate and unethical to take radiographs of people when there is no health benefit for them.
X-rays taken for a clinically-justified reason must not be used for another purpose without the patient’s informed consent, without coercion and in full knowledge of how the radiograph will be used and by whom.
James Brokenshire, the Northern Ireland secretary, has told BBC Radio Ulster that he is “entirely satisfied” with the fact that he is not a permanent member of the cabinet’s Brexit committee. Like the Scottish secretary and the Welsh secretary, he will only attend by invitation, when his presence is required. He said:
I am able to attend meetings of that committee where there are Northern Ireland-related issues. I am confident I am able to represent Northern Ireland’s view, Northern Ireland’s perspective, into the Brexit consideration and absolutely remain at the heart of discussions across Whitehall in ensuring the voice of Northern Ireland is heard loud and clear, and I am that champion to ensure that the issues that matter to Northern Ireland are properly reflected into the negotiation.
Angela Eagle was subject to homophobic abuse because of her decision to challenge Jeremy Corbyn for the Labour leadership, the party has concluded.
An internal report into allegations of abuse and intimidation in Wallasey Labour party says that Eagle was targeted and its findings have been upheld by a Labour national executive committee sub-committee.
The Liverpool Echo has published details of the leaked report. Here is the Echo’s story, and here is how it starts.
Wallasey MP Angela Eagle WAS subject to homophobic abuse and targeted because she challenged leader Jeremy Corbyn – according to Labour party chiefs.
A confidential report leaked to the ECHO details a Labour party investigation into allegations of abuse and intimidation at the Wallasey Constituency Labour Party (CLP).
Although the claims have always been strongly denied by some party members, the report calls for the local party to remain suspended until next year.
The report comes against a background of claims of a “militant”-style takeover of the Wallasey Labour Party by hard left activists.
Now a meeting of a sub-committee of the Labour party’s ruling body, the National Executive Committee (NEC), has upheld the contents of the investigation report. Following the NEC meeting, Ms Eagle said: “The report by national party officers comprehensively explains what happened earlier this year and the NEC has accepted the findings.”
The report tackles the highly contentious issue of whether a brick was thrown through the window of the building where Eagle has her constituency office. Here is an extract from the Echo’s summary.
According to the report, the attack on the MP’s constituency office in Liscard was also “highly likely” to be connected to her challenge against Jeremy Corbyn for Labour’s leadership.
The report said: “It’s highly likely that the brick thrown through the window of Angela Eagle’s office was related to her leadership challenge. The position of the window made it very unlikely that this was a random passer-by.” It said that claims it could have been targeting another company and Ms Eagle was “lying” about being targeted are “categorically untrue”.
Corbyn attended the NEC sub-committee meeting where the the report was discussed and Eagle has put out a statement welcoming his support. She said:
I am grateful that Jeremy took the unusual step of both attending and speaking in the meeting and that he expressed sincere sympathy for both me and for my staff.
It is now clear and accepted by the NEC that homophobic abuse was perpetrated by some members of the local Party; I will simply not tolerate it, and I know I have the backing of both Jeremy and union leaders when I say that there is no place for it in the Labour movement either.
As regards the vandalism of my office, I am grateful to both the internal investigators and the NEC for making clear both the facts of the matter and for the support of members up and down the country, including the Leader of the Labour Party, that such abuse both happened and is intolerable.
I will post any reaction to this as it comes in.
Otherwise, we’ve got PMQs. And then I will be covering Philip Hammond’s evidence to the Commons Treasury committee in detail.
Here is the agenda for the day.
9.30am: Matthew Hancock, the digital economy minister, gives a speech at the Broadband World Forum.
9.30am: Unemployment figures are published.
10.30am: Brandon Lewis, the policing minister, gives evidence to a Lords committee on Brexit.
11am: Simon Kirby, the City minister, gives evidence to the Lords financial affairs sub-committee about Brexit.
12pm: Theresa May faces Jeremy Corbyn at PMQs.
2pm: Andrea Leadsom, the environment secretary, gives evidence to the Commons environment committee.
2.15pm: Philip Hammond, the chancellor, gives evidence to the Treasury committee.
2.30pm: Louise Casey, head of the Casey review team, gives evidence to the Commons public accounts committee about the troubled families programme.
As usual, I will be covering the breaking political news as it happens, as well as bringing you the best reaction, comment and analysis from the web. I will post a summary after PMQS and another in the afternoon.
If you want to follow me or contact me on Twitter, I’m on @AndrewSparrow.
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