Skip to content
Search

Latest Stories

Chancellor Javid says he is "turning the page on austerity"

CHANCELLOR Sajid Javid said he was "turning the page on austerity" as he promised the biggest spending increases in 15 years, a move widely seen as part of prime minister Boris Johnson's push for an election to break the Brexit impasse.

"After a decade of recovery from Labour's great recession, we are turning the page on austerity and beginning a new decade of renewal," Javid said in parliament on Wednesday (4), taking aim at the opposition Labour Party.


Day-to-day spending would rise by 4.1 per cent above inflation in the next financial year, the first after Britain's scheduled departure from the European Union on October 31, he said.

In his first major speech since taking over the public purse strings in July, Javid promised more money for "the people's priorities" - education, health and the police - after a decade of tight spending controls that have frustrated voters.

He also promised an "infrastructure revolution", more funding for the armed forces and social care, and no cuts for any government department next year.

But he said he would not be writing any blank cheques.

Shadow chancellor John McDonnell said Javid's announcement was a sham.

"To come here and to try and fool us with references to people's priorities is beyond irony," McDonnell said.

"We are expected to believe that these Tories who for years have voted for harsh, brutal austerity have had some form of Damascene Conversion."

Javid was also interrupted on several occasions during his speech by Commons speaker John Bercow who asked him to refrain from making "very, very unseemly" political points about the government's Brexit position rather than focusing on his spending plans.

Javid, a former Deutsche Bank managing director, is sticking with Britain's existing fiscal rules, at least for Wednesday's one-year spending plan but suggested he would borrow more in the future to take advantage of record-low borrowing costs.

He has a bit of room to increase borrowing to fund his planned spending increases because Britain has cut its budget deficit from almost 10 per cent of gross domestic product in 2010 to just over one per cent now.

But analysts have warned that he could end up weakening Britain's budget credibility by making big spending pledges at a time when the economy is at risk of recession and the outcome of Brexit remains so unclear.

Johnson is pushing for an early election to resolve the parliamentary impasse over Brexit.

On Tuesday (13), lawmakers moved ahead with a plan to frustrate him by forcing the government to seek a delay to Britain's exit from the EU.

In his spending speech, Javid said he would review Britain's fiscal rules ahead of a longer-term tax-and-spending budget statement later this year.

Those rules, drawn up by Javid's predecessor Philip Hammond, require the government to keep public borrowing below two per cent of gross domestic product and to bring down debt as a share of economic output each year.

The Resolution Foundation think-tank has said Britain's weak economy, a recent rise in public borrowing and Johnson's long list of spending promises mean Javid is already set to break the two per cent deficit rule next year.

(Reuters)

More For You

UK–Africa business summit 2025

UK–Africa business summit 2025

UK–Africa business summit 2025 highlights trade, technology and resilient partnerships

Highlights:

  • Dr Sudhir Ruparelia emphasised Uganda’s growing real estate, agriculture and tourism sectors.
  • Lord Dolar Popat called for closer Commonwealth ties between Africa, the UK and India.
  • Uganda’s ministers outlined regional integration, investment climate and agricultural transformation.
  • Spiritual leader Sant Trilochan Darshan Das Ji urged ethical entrepreneurship rooted in integrity.

The 15th edition of the UK–Africa Business Summit took place on Friday, 12 September at The Royal Horseguards Hotel & One Whitehall Place, bringing together senior government leaders, entrepreneurs, investors and diaspora stakeholders to strengthen trade and investment ties between the UK and African nations.

Keep ReadingShow less
Modi & Trump

Donald Trump and Narendra Modi shake hands as they attend a joint press conference at the White House on February 13, 2025.

Reuters

India, US to discuss trade issues after tariff hike

INDIA and the United States will hold trade discussions in New Delhi on Tuesday, officials and Indian media reports said, as the two countries look to resolve a tariff dispute.

India currently faces high US tariffs on most of its exports and has not yet been able to reach a trade deal that would ease the pressure.

Keep ReadingShow less
Piyush Goyal

Piyush Goyal recalled that in February, Narendra Modi and Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025. (Photo: Getty Images)

Getty Images

Trade talks with US moving forward positively, says Indian minister Goyal

INDIA’s commerce and industry minister Piyush Goyal on Thursday said that negotiations on the proposed trade agreement between India and the United States, which began in March, are progressing in a positive atmosphere and both sides are satisfied with the discussions.

He recalled that in February, Indian prime minister Narendra Modi and US president Donald Trump had instructed their trade ministers to conclude the first phase of the bilateral trade agreement (BTA) by November 2025.

Keep ReadingShow less
Baiju Bhatt

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. (Photo: Getty Images)

Baiju Bhatt named among youngest billionaires in US by Forbes

INDIAN-AMERICAN entrepreneur Baiju Bhatt, co-founder of the commission-free trading platform Robinhood, has been named among the 10 youngest billionaires in the United States in the 2025 Forbes 400 list.

At 40, Bhatt is the only person of Indian origin in this group, which includes figures such as Meta’s Mark Zuckerberg. Forbes estimates his net worth at around USD 6–7 billion (£4.4–5.1 billion), primarily from his roughly 6 per cent ownership in Robinhood.

Keep ReadingShow less
UK business district
The Canary Wharf business district including global financial institutions in London. (Photo: Getty Images)
Getty Images

Economy shows no growth in July amid political turbulence

UK's ECONOMY showed no growth in July, according to official data released on Friday, adding to a difficult week for prime minister Keir Starmer’s government.

The Office for National Statistics (ONS) said gross domestic product was flat in July, following a 0.4 per cent rise in June.

Keep ReadingShow less