Dear John,

It’s been a week of Ins and Outs; Starmer’s hosted a summit to bring the money in, hereditary peers in the House of Lords look like they’re going to be turfed out , and the Foreign Secretary has been out and about meeting almost everyone there is to meet. Here’s your latest Weekend Wire:

Investment, Investment, Investment

On Monday, the red carpet was rolled out for the stars of the world’s blockbuster businesses at Labour’s first international investment summit. CEOs and business leaders from around the world gathered at London’s Guildhall to announce £63bn of secured capital and 38,000 jobs, but the upcoming budget has loomed large over the rest of the week, with some even asking if this all should have been done the other way round.

Rachel Reeves’ economic mission is relatively simple: economic growth by any means possible. But, despite the aforementioned success of Monday’s investment summit, concerns have been simmering away at Number Eleven ahead of 30th October.

No one can deny that the Chancellor inherits a shambles; national debt has reached 100% of GDP for the first time since the aftermath of the Second World War, real GDP growth per capita is lower than any incoming Government in modern British political history has had to deal with, and let’s not forget that everyone is still pretending that being outside the European Union isn’t having a huge impact on our finances.

And after all that, the £22bn black hole created by Conservatives’ dubious accounting has been revealed to be even bigger, now standing at £40bn. Reeves is now in the unenviable position of having to decide whether to raise taxes, or cut spending, or both.

Pro-business and pro-worker?

Labour’s refrain this week has been that there is no contradiction in being pro-worker and pro-business. Whilst this is a splendidly pleasant philosophy, the first murmurs of discontent have emerged. In fulfilling their manifesto promise of not raising taxes on working people, the Treasury plans to raise taxes on the business’ by increasing business’ National Insurance contributions.

And it’s not gone down well in all parishes. Rain Newton-Smith, CEO of the CBI labelled the move “difficult”, whilst Kate Nicholls head of UK Hospitality said that the proposed rise will “hammer hospitality”. The next few weeks leading up to the budget will prove a test of Starmer and Reeves’ resolve as they make the tough decisions they have long warned of.

Where's the hymn sheet?

The first real signs of stress-fractures in cabinet emerged this week with Deputy Prime Minister Angela Rayner, Justice Secretary Shabana Mahmood and Transport Secretary Louise Haigh amongst those who are known to have written letters of discontent to the PM. 

Senior Labour sources have insisted that this is not out of the ordinary in the lead up to a budget, with ministers quite rightly jostling for extra funding for their departments, although following a turbulent first 100 days  one would imagine Starmer would like his ministers to find the hymn sheet soon and start singing in unison.

But, there is good news!

Inflation fell to 1.7% this week, the first time in over two years that inflation has fallen below the Bank of England’s 2% target. Darren Jones, chief secretary to the Treasury called the drop “Welcome news for millions of families”... and the Treasury. Expect to see the Bank of England cutting interest rates in November and December.

Labour and Liberal Democrats win Tory leadership debate

Robert Jenrick, looking like a waxwork from Madame Tussauds, achieved something rather remarkable during the GB News debate on Thursday by makingKemi Badenoch look half competent.

By the end of the debate Badenoch was the unanimous victor amongst the watching audience and the media, and it seems increasingly likely she  will become the next leader of the opposition. However, with the average age of Tory voters at the last election a sprightly 63, the two candidates did little to offer an alternative more modern view of Conservatism. Rather than dragging the party toward the centre, the event appeared to be a declaration of love toward Reform voters. As I watched the GB News debate so you don't have to, Badenoch’s pitch was in essence: I have loads of great policies, I am just not telling you them yet.

Particularly worrying this week was the unveiling of Badenoch’s ‘Conservatism in Crisis’ briefing, which led to her being rightly criticised for her disingenuous characterisation of neurodivergent children and particularly those with autism. The briefing is imbued with worrying quotes questioning the liberalisation of social values. It is an important reminder that whoever becomes Tory leader will almost certainly attempt to launch an attack on the progressive social values we hold dear.

Brexit Corner

In an all too familiar post-Brexit picture, the Lord Mayor of the City of London has revealed that the Brexit ‘disaster’ has cost London 40,000 finance jobs, with roles moving to cities like Dublin and Amsterdam.

However, the big EU news of the week is still to come. Tomorrow the citizens of Moldova will head to the polling booths to vote on two issues: their next President and whether or not they should join the European Union. 

Whilst the very mention of a EU Referendum may send shivers down the spines of many Brits, it is an incredibly important moment for Europe and particularly the Eastern European region. The favourite for the Presidency is the pro-EU and pro-Western incumbent Maia Sandu, but there are fears of Russian interference and attempts to manipulate the election in favour of the purportedly pro-Russian candidate and second favourite Alexander Stoianoglo. 

Lammy in full flight

David Lammy landed in China on Friday morning in a bid to normalise dialogue, whilst also addressing the UK’s concerns over human rights violations and the ongoing military exercises in the Taiwan Strait. 

Earlier this week he was in Luxembourg as a special guest to the meeting of the 27 Foreign Secretaries of the EU nations. Lammy is the first British Foreign Secretary to attend such a meeting since Brexit (Liz Truss attended but only in an emergency meeting following Russia’s invasion of Ukraine).

The move is a welcome indication of the Government’s desire to further reset relations with the EU, and to chart a course of closer cooperation, particularly across security frameworks. As Best for Britain’s Director of Policy and Research Tom Brufatto said;

“The UK attending the EU Foreign Affairs Council is a welcome step towards achieving the broader ambition to forge a closer relationship between the UK and EU.  With ongoing Russian aggression on our continent, and the possibility of an isolationist Trump presidency, it has never been more important for the UK to strengthen defence cooperation with our European allies.”

The beginning of the end?

The big international news of the week is the death of the Hamas leader and the man most responsible for the October 7th terrorist attack, Yahya Sinwar. It is hoped that the death of Hamas’ leader can offer a pathway towards a ceasefire in Gaza to alleviate the humanitarian crisis in the region. Joe Biden is reported to have told Israeli Prime Minister Benjamin Netanyahu to make this “an opportunity to seek a path to peace."

Parliament Papers

This Week

• In what would be the largest constitutional reform to the House of Lords for a quarter of a century, the bill which aims at removing the remaining 92 hereditary peers passed through to the next stage on Tuesday. Undoubtedly news to celebrate, with reform of the Lords and the removal of archaic privileges fundamental for the continuation of a vibrant democracy in the UK.
• In other news Kim Leadbeater's bill to legalise assisted dying was introduced to the House of Commons this week, with the next debate on the legislation pencilled in for the 29th November.

Next Week

The new Employers Rights Bill will move to the second stage this week, the bill provides protections for:

• Zero hour workers 
• Flexible working
• Statutory sick pay
• Protection of tips for employees
• Entitlement to leave
• Protection from harassment 
• Dismissal

🫣 Cringe Column 😬

And Finally…

Alex Salmond’s death last Saturday marked the end of a long and impactful political career. A force of British politics for decades, Mr Salmond departs having defined an era of Scottish politics.

As Sunday marks the 2 year anniversary of Liz Truss’ resignation as Prime Minister, remember that no matter how tough things get this weekend or next week, you won't  be outshone by a lettuce.

Have a wonderful weekend and I look forward to catching up again soon!

Joshua Edwicker
Best for Britain