A senior minister has refused to confirm whether public sector workers will get an above-inflation pay rise next year, despite Rishi Sunak vowing to end the freeze on salaries.
The Chancellor will confirm in tomorrow's Budget that more than five million public sector workers will see a boost to their pay packets, in a bid to head off concerns about the cost-of-living crisis and increasing threats of industrial action.
Paul Scully, the small business minister, told Sky News the move sent a "signal" to the individual pay review bodies that "the Chancellor is keen to give people a pay rise".
However he would not be drawn on whether it would be above inflation, which is expected to reach four per cent this autumn, or whether people would end up "better off" in the end.
"That will be determined by the pay review bodies... as they look to what should be an appropriate rise for the public sector, given the public finances," he said. "I can't pre-empt what they are going to do. We will see where we are come next April when the review bodies have reported."
Mr Scully also fended off criticism over the increase to national living wage, after the Institute for Fiscal Studies estimated that it equated to an annual increase of ￡250 - falling far short of the ￡1,000 cut to Universal Credit.
It was a "generous and balanced" increase which would not "stymie growth" for businesses, the minister stressed.
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A second medical expert has said Conservative MPs should wear face masks when in the Commons Chamber on busy days.
Tories have been criticised for not masking-up, with Jacob Rees-Mogg suggesting it was unnecessary because with their "convivial, fraternal spirit" they know each other well.
This morning Paul Scully, the small business minister, failed to confirm whether he would be wearing one during tomorrow's Budget (see 8:13am), although yesterday Sajid Javid said he would do so. Dr David Nabarro, theWorld Health Organisation's special envoy on Covid, urged all MPs to join him, saying: "The virus doesn't vote." (see 8:28am).
Asked about the issue, Professor Anthony Harnden, deputy chairman of the Joint Committee on Vaccination and Immunisation (JCVI), told Sky News: "Well, the vaccines do a lot of the heavy lifting, but they can't do everything, so social distancing, mask wearing in crowded spaces and being sensible is all part of what we ought to be doing as a society."
The Liberal Democrats have criticised the Government for trying to "hide" the economic and health impact of imposing Covid passports.
This morning The Telegraph revealed their use could fuel the spread of Covid-19 by encouraging people to go to poorly ventilated pubs instead of large venues and cost affected premises ￡345 million.
Alistair Carmichael, the Liberal Democrat home affairs spokesperson, said: "This bombshell revelation shows the damage the government’s Covid ID card plans would do to struggling businesses for hardly any benefit. It is simply unacceptable that the Conservatives tried to hide this crucial evidence from the public and Parliament.
"The Liberal Democrats have been clear from the start that Covid ID cards would be costly and unworkable, now it turns out the government’s own official advice agreed with us. Ministers must publish this impact assessment immediately and give Parliament a vote on these proposals, so we can put an end to them once and for all."
Most UK workers saw pay increase in 2021, with those most impacted by the pandemic - younger employees, men and those in lower paid occupations - reporting the biggest increases, according to new figures.
The Office for National Statistics (ONS) said median weekly pay for full-time employees was ￡611 in April 2021, representing a 4.3 per cent increase from the same month in the previous year.
The new statistics also revealed that the gender pay gap between male and female earners was 7.9 per cent for the month.
It said this was greater than the seven per cent gap seen in April 2020, but flagged that this was affected by the pandemic and the latest figure is in line with the "downward trend of most recent years".
Owen Paterson has hit out at the Commons Standards Committee, saying the process that was followed "does not comply with natural justice" and played "a major role" in the suicide of his wife.
The MP and former minister, who faces being suspended for 30 days over an "egregious case of paid advocacy" (see below), has issued a lengthy statement saying: "This is a biased process and not fair. It offends against the basic standard of procedural fairness that no one should be found guilty until they have had a chance to be heard and to present their evidence including their witnesses."
He added: "I reject completely the findings of the Committee for Parliamentary Standards. The methods of the investigation do not create a just and fair outcome... On a personal level, the cost to me and my three grown-up children from the manner of this investigation has been catastrophic.
"Last summer, in the midst of the investigation, my wife of 40 years, Rose, took her own life. We will never know definitively what drove her to suicide, but the manner in which this investigation was conducted undoubtedly played a major role."
He noted that Ms Paterson "would ask me despairingly"about the progress of the inquiry and was convinced "the investigation would destroy my reputation and force me to resign my North Shropshire seat that I have now served for 24 years."
The Commons Standards Committee has recommended former Cabinet minister Owen Paterson be suspended for 30 days over an "egregious case of paid advocacy".
Mr Paterson "repeatedly used his position" to promote Randox, a clinical diagnostics company, and Lynn's Country Foods, a processor and distributor of meat products. While there was "no immediate financial benefit" to either company, Mr Paterson's approaches "could clearly have conferred significant benefits" in the long term, and may have been able to secure meetings "that would not have been available without Mr Paterson’s involvement"
The report concluded that “it stretches credulity to suggest that 14 approaches to ministers and public officials were all attempts to avert a serious wrong rather than to favour Randox and Lynn’s, however much Mr Paterson may have persuaded himself he is in the right".
The committee, chaired by Labour MP Chris Bryant, has rejected Mr Paterson's " arguments and allegations about the process followed in this case".
However it noted that his wife took her own life in June last year, and "consider it very possible that grief and distress caused by this event has affected the way in which Mr Paterson approached the Commissioner's investigation".
A minister has acknowledged that the Government will be judged by 'how people feel in their pocket in a year or two's time'.
When this question was put to Paul Scully, the small business minister, he told BBC Radio 4's Today programme: "That is politics in a nutshell - how people feel.
"We have the evidence there about what is happening at the time, but it is all about perception...
"Politics is very emotional but clearly, when you have cost of living issues you have the lowest paid in society feeling this most acutely.
"That is why we don't want to have a recovery on the back of the lowest paid," he added.
The country should not "be basing a recovery on the backs of the lowest paid", a minister has said - echoing some of the Prime Minister's comments about business having relied on cheap labour for too long.
Paul Scully, the small business minister, told BBC Radio 4's Today programme it was "not fair" to compare Rishi Sunak's interventions such as the living wage increase with the approach a Labour government would take.
"The Chancellor will set out entire situation - he is the only one who has that helicopter view, looking at the public finances, looking at the forecasts, and working that through for the whole Budget rather than just picking out individual things," he said.
The minister stressed it was important that "you invest in our people - you shouldn't be basing a recovery on the backs of the lowest paid, and that is just as true for the public sector as well".
Challenged about the pressures imposed by the living wage increase Mr Scully added: "Clearly there are pressures on business, I wouldn't want to put it just on the living wage... from business rates, VAT, the rent debt that they have built up.
"We are looking at all of those things," he added.
The Government will be "instructed" by the pay review bodies as to how high public sector salaries should rise by next year, a minister has said.
Paul Scully, the small business minister, suggested that there would still be wiggle room when the recommendations are made next spring, telling BBC Radio 4's Today programme: "I can't speculate about whether it will be significant or not.
"We know there are cost of living pressures on so many people including five million people in the public sector. We know that the public sector freeze last year helped us protect jobs and livelihoods, but now with strong recovery we are able to ease up on that and give a pay rise."
"That will be instructed by the pay review bodies," he added. "By signalling the fact we are able to lift that, the Chancellor will give them the confidence they need to get through the evidence and make sure they are recommending the right amount for us."
It's not just vaccine passports that have an expensive sting in their tail (see the post below).
Politico reports this morning that Boris Johnson has been warned his so-called Plan B could cost up to ￡18bn if the Covid restrictions such as working from home, Covid certification and mask-wearing are deployed throughout the winter until the end of March 2022.
The papers drawn up by the Cabinet Office’s Covid task force and the Treasury reveal just how seriously Plan B is being considered - and lay bare the cost of such a measure, with the Prime Minister under huge pressure from public health leaders and opposition figures to take action to deal with case rates.
Vaccine passports could fuel the spread of Covid-19 by encouraging people to go to poorly ventilated pubs instead of large venues, the Government’s own impact assessment has warned.
The policy would also slash turnover for the organisers of events required to use vaccine passports, and necessitate the hiring of thousands of new stewards which may be hard to deliver, it was concluded.
The Telegraph has seen an internal analysis of the economic and social impact of Covid-19 certification, written by the Department of Digital, Culture, Media and Sport [DCMS].
Across the 13 pages, marked “official sensitive” and dated from early September, are a series of concerns about how the policy would work and its knock-on implications.
Read the full story here
Environmental campaigners who have scaled a Government building in Westminster say they plan to stay there "indefinitely".
Four activists from Animal Rebellion, an offshoot of Extinction Rebellion, used ladders, ropes and harnesses to climb the Department for Environment, Food and Rural Affairs (Defra) office as high as "20 metres" at around 6am on Tuesday.
The group says it is demanding an end to subsidies for meat and dairy farming in a protest against climate change.
They plans to stay in place until Boris Johnson pledges to urge all world leaders to also end such subsidies when they attend the Cop26 summit next week.
Police are at the scene with the fire service and are liaising with the protesters, although no arrests have been made.
The World Health Organisation's special envoy on Covid has urged Conservative MPs to wear a mask in the Commons during tomorrow's Budget, saying: "The virus doesn't vote."
Dr David Nabarro told Sky News: "This virus, it is absolutely unstoppable, it gets everywhere, and so we have to do everything we possibly can to stop it. And one of the best ways to stop it is a well-fitting surgical mask properly over your face, pushed in over your nose, covering everything, and that reduces the risk to others and the risk to you.
"If it works, why on earth don't people use it? It's not a party political issue - this virus doesn't vote," he added. "There's no difference in how you deal with the virus when you vote for this party or that party.
"So everybody, wear masks when you are in close confinement, it's the right sensible proper thing to do, and everybody should be doing it, including our leaders."
There's no rest for the wicked.
Despite the Budget looming large, it's shaping up to be another busy day in Westminster. Here's what to expect:
9:30am: Greg Clark's science committee is looking at the U.K.’s Covid situation as winter approaches - will we hear more about the cost of Plan B?
10am: William Wragg's PACAC is kicking off an inquiry into the Cabinet Office’s FOI Clearing House
11:30am: New Foreign Secretary Liz Truss will take FCDO questions
From 12:30pm: Any urgent questions or ministerial statements
2:30pm: Ben Wallace, the Defence Secretary, and head of the Armed Forces Nick Carter are before Tobias Ellswood's defence committee from 2.30pm.
At the same time the environment committee will explore labour shortages in agriculture and food production with farming unions.
This afternoon - remaining stages of the Northern Ireland (Ministers, Elections and Petitions of Concern) Bill and the second reading of the Judicial Review and Courts Bill, plus a short debate on child sexual exploitation in the Bradford district.
The Government must ensure small businesses are protected as the economy recovers from the pandemic, a trade body has said.
Mike Cherry, the chairman of the Federation of Small Businesses, told LBC: "The smallest businesses will really struggle to keep people employed with the living wage going up higher than expected.
"The Government should increase the employment allowance to allow businesses to employ people on their books. We believe it will go a long way in supporting those businesses."
He said he would ask Paul Scully, minister for small business, where the support is "to keep people in the jobs they need".
He added: "Small businesses need that support coming out of the pandemic and we hope the Chancellor will announce that tomorrow."
The Budget is causing "problems all around" for small businesses, a trade body has said.
Mike Cherry, the chairman of the Federation of Small Businesses, told LBC he has reservations about what has been announced so far, coming on top of the plans to increase National Insurance.
He said: "For the smallest employers they will struggle to maintain jobs they need because of the increase of the national living wage, and employees will have to face the increase of NI contributions next April so it is problems all around.
"As we look at consumers we should look at businesses and tradesman, the cost of diesel and the cost of materials. That's alongside debts and coming out of the pandemic."
A minister has said he may wear a face mask during tomorrow's Budget if it is "busy" in the Chamber.
Conservative MPs have been criticised for sitting in the crowded House without coverings, while opposition MPs tend to mask-up.
Paul Scully, the small business minister, was vague about his plans, telling Sky News: "I am not sure if I am in the chamber for the Budget, and I am not sure how busy it will be.
"Where I have been in a room or area where it is absolutely rammed I wear a mask - on the cab on the way here, on the Tube, on the trains."
Asked what message the Government was sending to the public, Mr Scully said: "The signal is for people to - we have been locked down for 18 months, the Government has been telling people what to do - now we are saying use your common sense, your initiative... The message is make your decision for yourself."
A minister has insisted the Government will address the "fundamental" issues with business rates and was not "tinkering around" with the system.
Paul Scully, the small business minister, told Sky News: "We have to wait for the fundamental business rates review, which is due to report this autumn. That sits with the Treasury, we will see what the Chancellor says on Wednesday, whether he has any indication on that."
He added: "The word is fundamental - we do know business rates need to adapt to the 21st century, to high street bricks and mortar, and online."
A minister has fended off criticism from the Speaker about the Chancellor's pre-Budget briefings.
Sir Lindsay Hoyle yesterday implied that Rishi Sunak should resign over the series of announcements that have been made prior to tomorrow's big day.
But Paul Scully, the small business minister, told Sky News it would give people the "chance to digest them".
He added: "It is important for people like yourself to be able to to discuss with people like... having a discussion about these sorts of things, making sure people on the national living wage don't miss out on seeing the detail because it’s part of a massive Budget."
Mr Sunak would "answer" Sir Lindsay's criticism directly tomorrow, he added.
Rishi Sunak is due to announce that the year-long public sector pay freeze is to end, paving the way for millions of workers to potentially receive a pay rise.
The Chancellor is expected to declare in his Budget on Wednesday that the Spending Review conclusion is that the public sector pay restraint, brought in due to heavy borrowing during the coronavirus pandemic, can be brought to a close.
The decision, according to the Treasury, means that more than five million public sector workers, such as teachers, nurses and armed forces personnel, could be in line for a pay rise next year.
Officials said Mr Sunak was able to make the move due to the "solid recovery" of the economy since Covid-19 restrictions have lifted.
It's a soggy start to the day in Westminster - but is Rishi Sunak feeling the heat?
Yesterday saw the Chancellor come under fire from Sir Lindsay Hoyle, the Commons Speaker, for pre-briefing the Budget details to journalists before laying them out in the Chamber. Sir Lindsay even went so far as to suggest in a roundabout way that he resign.
But that hasn't stopped the Treasury from releasing more announcements - albeit to a somewhat muted reception. Meanwhile, the cost of enacting a Covid Plan B this winter threatens to further hurt the recovery.
Here is today's front page.
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