UK is ‘broke and broken,’ new government says as it prepares to tackle shortfall in public finances

UK is ‘broke and broken,’ new government says as it prepares to tackle shortfall in public finances
Britain's Prime Minister Keir Starmer speaks during his first Prime Minister's Questions (PMQs) in the House of Commons on July 24, 2024. The new government said nation is “broke and broken” after 14 years of Conservative rule, and the Labour Party is working to fix it. (AFP)
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Updated 29 July 2024
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UK is ‘broke and broken,’ new government says as it prepares to tackle shortfall in public finances

UK is ‘broke and broken,’ new government says as it prepares to tackle shortfall in public finances
  • Three weeks after taking power, PM Keir Starmer’s office professed shock at the situation they inherited after 14 years of Conservative Party rule
  • “We are calling time on the false promises that British people have had to put up with and we will do what it takes to fix Britain,” said senior cabinet official Pat McFadden

LONDON: Britain’s new left-leaning government said Sunday that the nation is “broke and broken,” blaming the situation on its predecessors ahead of a major speech on the state of the public finances that is widely expected to lay the groundwork for higher taxes.
In a sweeping assessment three weeks after taking power, Prime Minister Keir Starmer’s office professed shock at the situation they inherited after 14 years of Conservative Party rule, while releasing a department-by-department analysis of the perceived failures of the previous government.
The critique comes a day before Treasury chief Rachel Reeves is expected to outline a 20-billion-pound ($26 billion) shortfall in public finances during a speech to the House of Commons.
“We will not shy away from being honest with the public about the reality of what we have inherited,’’ Pat McFadden, a senior member of the new Cabinet, said in a statement. “We are calling time on the false promises that British people have had to put up with and we will do what it takes to fix Britain.”
Starmer’s Labour Party won a landslide election victory earlier this month following a campaign in which critics accused both major parties of a “conspiracy of silence” over the scale of the financial challenges facing the next government.
Labour pledged during the campaign that it wouldn’t raise taxes on “working people,” saying its policies would deliver faster economic growth and generate the additional revenue needed by the government. The Conservatives, meanwhile, promised further tax cuts in the autumn if they were returned to office.
As proof that the previous government wasn’t honest about the challenges facing the country, Starmer’s office pointed to recent comments from former Treasury chief Jeremy Hunt confirming that he wouldn’t have been able to cut taxes this year if the Conservatives had been returned to power.
Those comments came in an interview with the BBC in which Hunt also accused Labour of exaggerating the situation to justify raising taxes now that they’ve won the election.
“The reason we’re getting all this spin about this terrible economic inheritance is because Labour wants to raise taxes,” Hunt said on July 21. “If they wanted to raise taxes, all the numbers were crystal clear before the election. … They should have levelled with the British public.”
The government on Sunday released an overview of the spending assessment Reeves commissioned shortly after taking office. She will deliver the complete report to Parliament on Monday.
Those findings led the new government to accuse the Conservatives of making significant funding commitments for this financial year “without knowing where the money would come from.’’
It argued that the military had been “hollowed out’’ at a time of increasing global threats and the National Health Service was “broken,’’ with some 7.6 million people waiting for care.
And despite billions spent to house migrants and combat the criminal gangs ferrying migrants across the English Channel on dangerous inflatable boats, the number of people making the crossing is still rising, Starmer’s office said. Some 15,832 people have crossed the Channel on small boats already this year, 9 percent more than during the same period in 2023.
“The assessment will show that Britain is broke and broken — revealing the mess that populist politics has made of the economy and public services,” Downing Street said in a statement.
The quandary the government finds itself in should be no surprise, said Paul Johnson, the director of the Institute for Fiscal Studies, an independent think tank focused on Britain’s economic policies.
At the start of the election campaign, the institute said that the UK was in a “parlous fiscal position” and the new government would have to either raise taxes, cut spending or relax the rules on public borrowing.
“For a party to enter office and then declare that things are ‘worse than expected’ would be fundamentally dishonest,” the IFS said on May 25. “The next government does not need to enter office to ‘open the books.’ Those books are transparently published and available for all to inspect.”


Iran FM arrives in Kabul in first visit after Taliban’s takeover

Iran FM arrives in Kabul in first visit after Taliban’s takeover
Updated 58 min 38 sec ago
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Iran FM arrives in Kabul in first visit after Taliban’s takeover

Iran FM arrives in Kabul in first visit after Taliban’s takeover
  • One-day visit is part of an effort to bolster relations between the two countries and ‘pursue mutual interests’
  • Discussions will revolve around border security, strengthening political ties and expanding economic relations

KABUL: Iran’s Foreign Minister Abbas Araghchi arrived in Kabul Sunday on the highest-level visit by an Iranian official to the Afghan capital since the Taliban’s takeover in 2021.
The one-day visit is part of an effort to bolster relations between the two countries and “pursue mutual interests,” according to foreign ministry spokesman Esmaeil Baqaei.
Upon his arrival, Araghchi met with his Afghani counterpart Amir Khan Muttaqi, and he is scheduled to sit down later with the deputy prime minister for economic affairs, Abdul Ghani Baradar, state TV reported.
Discussions will revolve around border security, strengthening political ties and expanding economic relations, it added.
Tensions between Iran and Afghanistan have intensified in recent years over water rights and the construction of dams on the Helmand and Harirud rivers.
Iran shares more than 900 kilometers (560 miles) of border with Afghanistan, and the Islamic republic hosts one of the largest refugee populations in the world, mostly Afghans who fled their country over two decades of war.
The flow of Afghan immigrants has increased since the Taliban took over in August 2021 after US forces withdrew.
In September, local media in Iran announced the building of a wall along more than 10 kilometers of the eastern border with Afghanistan, the main entry point for immigrants.
Officials said at the time that additional methods to fortify the border including barbed wire and water-filled ditches to counter the “smuggling of fuel and goods, especially drugs,” and to prevent “illegal immigration.”
In December, Iran’s ambassador to the United Nations, Amir Saeid Iravani, said “over six million Afghans have sought refuge in Iran.”
Iran has had an active diplomatic presence in Afghanistan for many years, but it has yet to officially recognize the Taliban government since the takeover.
Several Iranian delegations have visited Afghanistan over the years, including a parliamentary delegation in August 2023 to discuss water rights.


US has not stopped military aid to Ukraine, Zelensky says

US has not stopped military aid to Ukraine, Zelensky says
Updated 26 January 2025
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US has not stopped military aid to Ukraine, Zelensky says

US has not stopped military aid to Ukraine, Zelensky says
  • Trump had previously said Ukraine's President Zelensky should have made a deal with Putin to avoid the conflict
  • But he recently threatened to impose stiff tariffs and sanctions on Russia if an agreement isn’t reached to end the fighting in Ukraine

KYIV: Ukrainian President Volodymyr Zelensky said Saturday the US has not stopped military aid to Ukraine after newly sworn in US Secretary of State Marco Rubio announced he would pause foreign aid grants for 90 days.
Zelensky did not clarify whether humanitarian aid had been paused. Ukraine relies on the US for 40 percent of its military needs. “I am focused on military aid; it has not been stopped, thank God,” he said at a press conference with Moldovan President Maia Sandu.
The two leaders met in Kyiv on Saturday to discuss the energy needs of Moldova’s Russian-occupied Transnistria region, which saw its natural gas supplies halted on Jan. 1 due to Ukraine’s decision to stop Russian gas transit. Ukraine has said it can offer coal to the Transnistrian authorities to make up for the shortfall.
The future of US aid to Ukraine remains uncertain as President Donald Trump begins his second term in office. The American leader has repeatedly said he wouldn’t have allowed Russia’s invasion of Ukraine to start if he had been in office, although he was president as fighting grew in the east of the country between Kyiv’s forces and separatists aligned with Moscow, ahead of Putin sending in tens of thousands of troops in 2022.
On Thursday, Trump told Fox News that Zelensky should have made a deal with Putin to avoid the conflict. A day earlier, Trump also threatened to impose stiff tariffs and sanctions on Russia if an agreement isn’t reached to end the fighting in Ukraine.
Speaking in Kyiv on Saturday, Zelensky said he had enjoyed “good meetings and conversations with President Trump” and that he believed the US leader would succeed in his desire to end the war.
“This can only be done with Ukraine, and otherwise it simply will not work because Russia does not want to end the war, and Ukraine does,” Zelensky said.
Grinding eastern offensive
With Trump stressing the need to quickly broker a peace deal, both Moscow and Kyiv are seeking battlefield successes to strengthen their negotiating positions ahead of any prospective talks.

Opinion

This section contains relevant reference points, placed in (Opinion field)

For the past year, Russian forces have been waging an intense campaign to punch holes in Ukraine’s defenses in the Donetsk region and weaken Kyiv’s grip on the eastern parts of the country. The sustained and costly offensive has compelled Kyiv to give up a series of towns, villages and hamlets.
Russia’s Defense Ministry claimed Friday that Russian troops had fought their way into the center of the strategically important eastern of Velyka Novosilka, although it was not possible to independently confirm the claim.
Elsewhere, three civilians were killed Saturday in shelling in the Russian-occupied area of Ukraine’s Kherson region, Moscow-installed Gov. Vladimir Saldo said.
He urged the residents of Oleshky, which sits close to the frontline in southern Ukraine, to stay in their homes or in bomb shelters.
Russia also attacked Ukraine with two missiles and 61 Shahed drones overnight Saturday. Ukrainian air defenses shot down both missiles and 46 drones, a statement from the air force said. Another 15 drones failed to reach targets due to Ukrainian countermeasures.
The downed drones caused damage in the Kyiv, Cherkasy and Khmelnytskyi regions, with Ukrainian emergency services saying that five people had to be from a 9-story apartment block in the Ukrainian capital.
Russia also struck Ukraine’s eastern Kharkiv region with drones causing casualties and damage, local authorities said Saturday.
Drones targeted the city’s Shevchenkivskyi, Kyivskyi and Kholodnohirskyi districts, said Mayor Ihor Terekhov.
Russia used a Molniya drone – an inexpensive weapon that has been developed and recently deployed by Russia – in the Shevchenkivskyi district, sparking a fire. The attacks disrupted the city’s water and electricity supplies, the mayor said.
Terekhov said the number of victims was still being determined, while Kharkiv’s governor, Oleh Syniehubov, said three people, two women and a man, were injured in the strikes.
 


US teacher put on leave after allegedly calling Palestinian child an extremist

US teacher put on leave after allegedly calling Palestinian child an extremist
Updated 26 January 2025
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US teacher put on leave after allegedly calling Palestinian child an extremist

US teacher put on leave after allegedly calling Palestinian child an extremist
  • “I do not negotiate with terrorists,” the teacher reportedly remarked when a Palestinian American student asked for a seat change
  • Recent incidents involving Palestinian American children include an attempt to drown a 3-year-old girl in Texas and the fatal stabbing of a 6-year-old boy in Illinois

WASHINGTON: A public teacher in Pennsylvania was put on leave after allegedly calling a Palestinian American middle school student an extremist, the school district and a Muslim advocacy group said.

Why It’s Important
Human rights advocates say there has been a rise in anti-Muslim, anti-Palestinian and antisemitic hate in the US since the start of Israel’s war in Gaza following an Oct. 7, 2023, attack by the Palestinian militant group Hamas.

Key Quotes
The Central Dauphin School District said on Saturday it had learned about the allegations that the teacher made the derogatory comment last week in an after-school program.
“The teacher involved in the alleged incident is on administrative leave pending our investigation,” the district said in a statement, adding it had no tolerance for racist speech.
The Council on American Islamic Relations said the allegation was that the teacher had remarked, “I do not negotiate with terrorists,” when the Palestinian American student asked for a seat change.
The district and CAIR did not name the teacher or the student. CAIR said it was in touch with the child’s parents.

Context
Recent US incidents involving children include the attempted drowning of a 3-year-old Palestinian American girl in Texas and the fatal stabbing of a 6-year-old Palestinian American boy in Illinois.
Other incidents include the stabbing of a Palestinian American man in Texas, the beating of a Muslim man in New York, a violent mob attack on pro-Palestinian protesters in California and the shooting of three Palestinian American students in Vermont.
Incidents raising alarm over antisemitism include threats of violence against Jews at Cornell University that led to a conviction and sentencing, an unsuccessful plot to attack a New York City Jewish center and physical assaults against a Jewish man in Michigan, a rabbi in Maryland and two Jewish students at a Chicago university.
 


Rubio threatens bounties on Taliban leaders over detained Americans

Rubio threatens bounties on Taliban leaders over detained Americans
Updated 26 January 2025
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Rubio threatens bounties on Taliban leaders over detained Americans

Rubio threatens bounties on Taliban leaders over detained Americans
  • The new top US diplomat issued the harsh warning via social media, days after the Afghan Taliban government and the US swapped prisoners in one of the final acts of former president Joe Biden

WASHINGTON: US Secretary of State Marco Rubio on Saturday threatened bounties on the heads of Afghanistan’s Taliban leaders, sharply escalating the tone as he said more Americans may be detained in the country than previously thought.
The threat comes days after the Afghan Taliban government and the United States swapped prisoners in one of the final acts of former president Joe Biden.
The new top US diplomat issued the harsh warning via social media, in a rhetorical style strikingly similar to his boss, President Donald Trump.
“Just hearing the Taliban is holding more American hostages than has been reported,” Rubio wrote on X.
“If this is true, we will have to immediately place a VERY BIG bounty on their top leaders, maybe even bigger than the one we had on bin Laden,” he said, referring to the Al-Qaeda leader killed by US forces in 2011.
Rubio did not describe who the other Americans may be, but there have long been accounts of missing Americans whose cases were not formally taken up by the US government as wrongful detentions.
In the deal with the Biden administration, the Taliban freed the best-known American detained in Afghanistan, Ryan Corbett, who had been living with his family in the country and was seized in August 2022.
Also freed was William McKenty, an American about whom little information has been released.
The United States in turn freed Khan Mohammed, who was serving a life sentence in a California prison.
Mohammed was convicted of trafficking heroin and opium into the United States and was accused of seeking rockets to kill US troops in Afghanistan.
The United States offered a bounty of $25 million for information leading to the capture or killing of Osama bin Laden shortly after the September 11, 2001 terror attacks, with Congress later authorizing the secretary of state to offer up to $50 million.
No one is believed to have collected the bounty for bin Laden, who was killed in a US raid in Pakistan.

Trump is known for brandishing threats in his speeches and on social media. But he is also a critic of US military interventions overseas and in his second inaugural address Monday said he aspired to be a “peacemaker.”
In his first term, the Trump administration broke a then-taboo and negotiated directly with the Taliban — with Trump even proposing a summit with the then-insurgents at the Camp David presidential retreat — as he brokered a deal to pull US troops and end America’s longest war.
Biden carried out the agreement, with the Western-backed government swiftly collapsing and the Taliban retaking power in August 2021 just after US troops left.
The scenes of chaos in Kabul brought strong criticism of Biden, especially when 13 American troops and scores of Afghans died in a suicide bombing at the city’s airport.
The Biden administration had low-level contacts with Taliban government representatives but made little headway.
Some members of Trump’s Republican Party criticized even the limited US engagements with the Taliban government and especially the humanitarian assistance authorized by the Biden administration, which insisted the money was for urgent needs in the impoverished country and never routed through the Taliban.
Rubio on Friday froze nearly all US aid around the world.
No country has officially recognized the Taliban government, which has imposed severe restrictions on women and girls under its ultra-conservative interpretation of Islam.
The International Criminal Court’s chief prosecutor on Thursday said he was seeking arrest warrants for senior Taliban leaders over the persecution of women.
 


China tells Trump’s top diplomat to behave himself in veiled warning

China tells Trump’s top diplomat to behave himself in veiled warning
Updated 26 January 2025
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China tells Trump’s top diplomat to behave himself in veiled warning

China tells Trump’s top diplomat to behave himself in veiled warning
  • A China Foreign Ministry statement said FM Wang Yi issued the veiled warning in a phone call with US Secretary of State Marco Rubio
  • Rubio, a long-time vocal critic of China, earlier expressed “serious concern over China’s coercive actions against Taiwan and in the South China Sea”

BEIJING: China’s veteran foreign minister has issued a veiled warning to America’s new secretary of state: Behave yourself.
Foreign Minister Wang Yi conveyed the message in a phone call Friday, their first conversation since Marco Rubio’s confirmation as President Donald Trump’s top diplomat four days earlier.
“I hope you will act accordingly,” Wang told Rubio, according to a Foreign Ministry statement, employing a Chinese phrase typically used by a teacher or a boss warning a student or employee to behave and be responsible for their actions.
The short phrase seemed aimed at Rubio’s vocal criticism of China and its human rights record when he was a US senator, which prompted the Chinese government to put sanctions on him twice in 2020.
It can be translated in various ways — in the past, the Foreign Ministry has used “make the right choice” and “be very prudent about what they say or do” rather than “act accordingly.”
The vagueness allows the phrase to express an expectation and deliver a veiled warning, while also maintaining the courtesy necessary for further diplomatic engagement, said Zichen Wang, a research fellow at the Center for China and Globalization, a Chinese think tank.
“What could appear to be confusing is thus an intended effect originating from Chinese traditional wisdom and classic practice of speech,” said Wang, who is currently in a mid-career master’s program at Princeton University.
Rubio, during his confirmation hearing, cited the importance of referring to the original Chinese to understand the words of China’s leader Xi Jinping.
“Don’t read the English translation that they put out because the English translation is never right,” he said.
A US statement on the phone call didn’t mention the phrase. It said Rubio told Wang that the Trump administration would advance US interests in its relationship with China and expressed “serious concern over China’s coercive actions against Taiwan and in the South China Sea.”
Wang was foreign minister in 2020 when China slapped sanctions on Rubio in July and August, first in response to US sanctions on Chinese officials for a crackdown on the Uyghur minority in the Xinjiang region and then over what it regarded as outside interference in Hong Kong.
The sanctions include a ban on travel to China, and while the Chinese government has indicated it will engage with Rubio as secretary of state, it has not explicitly said whether it would allow him to visit the country for talks.