Keir Starmer sparks tax hike fears as Tory leadership row erupts: UK politics live

The government has confirmed it will not impose mandatory flexible working on companies.

Business secretary Jonathan Reynolds insisted Labour will instead introduce statutory guidance regarding when businesses can deny such requests.

In an interview with the BBC, the minister explained that while the new measures will clarify acceptable grounds for refusing flexibility, employers will not be forced to comply.

He said: “There will be some clear statutory guidance with grounds upon which that wouldn’t be possible.

“So that might mean you have to train junior members of staff, it might be that you have management responsibilities.

“But it will be straightforward and of course we should always recognise where this can be agreed between an employer and employee.”

The exit of the frontrunner is the most astonishing result in a Tory leadership ballot since Michael Portillo lost to Iain Duncan Smith, writes John Rentoul.

And there may be one final twist in the tale…

As chancellor Rachel Reeves prepares for the Autumn Budget on 30 October, Sir Keir Starmer has ignited concerns by not ruling out an increase in National Insurance contributions.

During a heated exchange at Prime Minister’s Questions yesterday, Sir Keir faced questions from Tory leader Rishi Sunak, who pressed him on the future of the government’s tax policy.

But the PM refused to rule out a possible hike in the future, claiming: “I’m not going to get drawn on conclusions.”

Previously, National Insurance rates had seen significant reductions. In January, the rate for 27 million workers dropped from 12 per cent to 10 per cent and it fell further to 8 per cent in April as part of Jeremy Hunt’s tax reforms.

It comes as the Institute for Fiscal Studies (IFS) estimates Rachel Reeves may need to raise up to £25 billion from tax increases if she wants to keep public spending rising with national income.

Kemi Badenoch and Robert Jenrick are set to clash in a televised debate on 17 October.

Hosted by GB News, the ‘Decision Time: The Race To Lead’ show promises to be a decisive event in the Tory leadership race to succeed Rishi Sunak.

The programme will be broadcasted from 7pm to 9pm.

Just hours after Kemi Badenoch and Robert Jenrick secured their spots in the final showdown, a Tory leadership race exploded into full-blown civil war.

The rivals’ camps clashed like two heavyweight boxers trading early jabs.

Sir John Hayes, a staunch supporter, threw the first punch.

He fired his shot at Ms Badenoch, claiming that the Conservatives “don’t want an irascible leadership” – a swipe at claims that the shadow secretary can be abrasive at times.

But it didn’t take long for Ms Badenoch’s backers to hit back.

Nigel Huddleston suggested Jenrick was bogged down with “too many specific policies”, taking aim at his detailed manifesto, including his controversial plan to withdraw Britain from the European Convention of Human Rights.

With just one vote left, the Tory civil war is far from over.

Both candidates are seen as right-wing firebrands, and it appears the battle lines have already been drawn in this bruising contest.

Business and trade secretary Jonathan Reynolds has promised voters that the government is committed to improving living standards for all, despite concerns over the upcoming budget.

Responding to fears that pensioners may face hardship this winter, the minister pushed back against claims that they would be left “hiding behind the sofa wrapped in a blanket”.

Speaking to Sky News this morning, Mr Reynolds said: “This is a government that is going to make everybody better off.

“Specifically for pensioners, we already have the commitment to the triple lock, that’s a guarantee that pensioners will be better off this year, next year, the year after that.

“That is a significant pledge from this new government, so people should be reassured from commitments like that.”

Unite the union has warned Angela Rayner’s Employment Rights Bill fails to fully protect workers.

General secretary Sharon Graham acknowledged the legislation is a step forward, but she insisted the reform would leave “more holes than Swiss cheese” for employers to exploit.

Ms Graham commended some provisions, such as ending Minimum Service Levels and introducing individual rights like bereavement leave.

However, she pointed out that the bill still falls short of its promises, especially in tackling fire-and-rehire practices and zero-hours contracts.

She added: “The Bill also fails to give workers the sort of meaningful rights to access to a union for pay bargaining that would put more money in their pockets and, in turn, would aid growth.

“Unite will continue to make the workers’ voice heard as we push for improvements to the legislation as the Bill goes through parliament.”