logo
Renationalised rail is just one sign of Britain's slide back to the 1970s

Renationalised rail is just one sign of Britain's slide back to the 1970s

Telegraph25-05-2025

SIR – The gradual renationalisation of Britain's railways (report, May 24) will simply result in more taxpayers' money being wasted.
Last time round, British Rail lost vast sums of money every day. It will be no different now. We can also look forward to more industrial action.
Tim Sayer
Bristol
SIR – We are going back to the bad old days.
Take the 'Great' out of the Government's Great British Railways, and we are simply left with what we had before. It will not work.
Jeremy Clarkson (Magazine, May 24) is right to say that this country has 'fallen off a cliff'.
Jack Marriott
Churt, Surrey
SIR – Northern Rail was nationalised on March 1 2020. It has continued to offer a very poor service to the public. Together with St Helens Council, it started a project to improve the town's Lea Green station. This was supposed to have been completed in 2023, yet some of the new facilities are still not open.
Does anyone really believe that nationalisation is going to improve our railways?
Chris Lewis
Widnes, Cheshire
SIR – It is strange that Sir Keir Starmer, famously the son of a toolmaker who made it to the top of the legal profession, so despises aspiration in others.
Nik Perfitt
Bristol
SIR – Angela Rayner's declaration that she has 'no desire' to lead the Labour Party (telegraph.co.uk, May 25) surely marks the beginning of her leadership bid.
As Sir Keir Starmer becomes increasingly unpopular and detached from the electorate, Ms Rayner will build a hard-Left coalition financed by the trade unions. Sir Keir can expect a brutal coup worthy of the Borgias.
Mike Tickner
Winterbourne Earls, Wiltshire
SIR – Michael Miller (Letters, May 24), addressing the prospect of further tax rises, asserts that they are the 'membership fee to live in a civilised society'. I want my money back.
Jane Moth
Stone, Staffordshire
SIR – I do not think taxing the rich is considered an 'evil', as Michael Miller suggests.
Over-taxing them, however, is simply foolish, because they will leave the country, taking their money with them.
In any case, Britain's wealthy already pay a substantial share of tax revenues. Making the 'pips squeak' is counterproductive.
Rosanne Greaves
Oakham, Rutland

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Full list of requirements to be eligible for Warm Homes Discount
Full list of requirements to be eligible for Warm Homes Discount

Daily Mirror

time2 hours ago

  • Daily Mirror

Full list of requirements to be eligible for Warm Homes Discount

6 million households are due to receive the £150 discount this winter This winter, millions more individuals will be eligible for the Warm Home Discount, a £150 reduction on their electricity bills. This is due to new eligibility criteria released this month, although the benefit is only set to start being distributed around October. Eligibility for the benefit falls into one of two categories. Previously, these were:. ‌ People receiving the Guarantee element of Pension Credit - Core Group 1. People with low income and high energy costs - Core Group 2. People in Scotland identified by their supplier as at risk of fuel poverty - Broader Group. ‌ However, the recent update has made it so that people in core group 2 no longer need to have high energy costs to qualify. Simply claiming one of the qualifying benefits will be enough to receive the discount this winter. The current full list of qualifying benefits includes: Housing Benefit. Income-related Employment and Support Allowance (ESA). Income-based Jobseeker's Allowance (JSA). Income Support. The 'Savings Credit' part of Pension Credit. Universal Credit. If you receive Child Tax Credit or Working Tax Credit, you may also be eligible, provided your household income falls below a certain threshold. ‌ To qualify, the person receiving the qualifying benefit must be named on the energy bill. The money is not paid to you like cash in hand; instead, it is applied to your bill by your electricity supplier. If you're on a prepayment meter, you might find a voucher arriving via post or email instead. Those residing in Scotland are encouraged to get in touch with their energy supplier if they think they may qualify under the core or broader groups. Official statistics suggest that over 6 million households will benefit from the scheme this year, marking an increase of 2.7 million. Among these, 900,000 are families with children and 1.8 million are homes experiencing fuel poverty. ‌ Prime Minister Keir Starmer commented: "I know families are still struggling with the cost of living, and I know the fear that comes with not being able to afford your next bill. "Providing security and peace of mind for working people is deeply personal to me as Prime Minister and foundational for the Plan for Change. "I have no doubt that, like rolling out free school meals, breakfast clubs and childcare support, extending this £150 energy bills support to millions more families will make a real difference." While this is a major update for the seasonal benefit. A bigger announcement is expected later this year as the scheme in its current form expires in March 2026, although it has been extended in the past.

Angela Rayner accused of waging 'class war' over her plans to cut funding for wealthier Southern areas so more can be spent in the North
Angela Rayner accused of waging 'class war' over her plans to cut funding for wealthier Southern areas so more can be spent in the North

Daily Mail​

time4 hours ago

  • Daily Mail​

Angela Rayner accused of waging 'class war' over her plans to cut funding for wealthier Southern areas so more can be spent in the North

Labour was yesterday accused of declaring 'class war' over plans to cut funding for town halls in the South and splurge it in its northern heartlands. Under Angela Rayner 's shake-up, wealthier southern households face a raft of raids to help pay for the giveaway in Labour's traditional working-class areas. These include hikes in council tax bills and fees, such as parking, planning and licensing charges. Town halls in the South also face having to cut existing services because of the raid on their coffers. Under the plans, unveiled yesterday, town halls with 'stronger council tax bases', which tend to be in wealthier parts of London and the Home Counties, will get less Government cash. Those with 'weaker bases', often in the North, will get more under the 'progressive' redistribution model. The Deputy Prime Minister Ms Rayner, who is also the local government secretary, has long argued that an overhaul of council funding is needed. Ms Rayner, the MP for Ashton-under-Lyne, has pointed to people living in the North who pay hundreds of pounds more in council tax than those in wealthier southern areas, calling it 'unfair'. But the plans, which affect councils in England and would begin for three years from next April, sparked a furious backlash. Greg Smith, the Tory MP for Mid Buckinghamshire, said: 'We're already massively over-taxed and council tax has already blown out of all proportion across the country. 'Anything that takes from the South to pay for the North is class war.' And Kevin Hollinrake, the Tories' local government spokesman, said: 'In reality, Labour's appetite for tax hikes knows no bounds. These new backdoor rises in fees and charges are nothing more than stealth taxes – punishing the very councils that have kept taxes low and responsible.' The new proposed formula for allocating money would take into account local needs, based on population, poverty and age data. This will lead to more cash going to deprived areas. And Government grants, which account for about half of councils' income, will now be based on calculations of what local authorities could raise if all areas charged the same rates of council tax based on their housing mix. This will mean steep falls in grant income for wealthier councils. Vikki Slade, the Lib Dems' local government spokesman, said: 'It would be a big mistake for the Government to force councils into unfair council tax rises. 'At a time when councils desperately need support, it beggars belief that Angela Rayner is considering reducing funding entitlements for many, including councils which already receive very little grant funding.' But ministers insist councils won't go bust as it would be phased in over three years, removing a potential 'cliff edge' if the redistribution happened in one go. They also say it will not lead to huge council tax hikes because these are already capped at 5 per cent, and most councils already raise it by this amount every year. However, they could apply to Ms Rayner, who is from Stockport, for special permission to raise it by more than this given the unprecedented pressure their finances could come under. They are also likely to look at cutting back on existing services and hiking other fees to help balance the books. It raises the prospect of councils being handed more powers to raise revenues by hiking such fees. Yesterday's new consultation, which will run until August 15, said ministers will now 'review all fees previously identified and consider where there is the strongest case for reform'. Kate Ogden, a senior research economist at the Institute for Fiscal Studies, said councils in 'leafier suburban and rural areas' in the South will be among the biggest losers. Local government minister Jim McMahon said: 'There's broad agreement across council leaders, experts, and parliamentarians that the current funding model is broken and unfair. 'This Government is stepping up to deliver the fairer system promised in the 2017 Fair Funding Review but never delivered.'

What war in the Middle East means for your money
What war in the Middle East means for your money

Times

time6 hours ago

  • Times

What war in the Middle East means for your money

The conflict between Israel and Iran is the latest geopolitical shock set to hamper the outlook for the UK economy — and, ultimately, your bank balance. Since the attacks began on June 12, the price of oil has risen to a six-month high. Hopes for interest rate cuts have been dashed, fears of rising inflation have been amplified, and any respite from stock market turmoil appears to have been short-lived. • Read more money advice and tips on investing from our experts This week the prime minister, Sir Keir Starmer, said: 'I'm always concerned about the effect of international issues on people back at home. You saw with Ukraine the direct impact it had on energy bills. Equally, with this conflict, you can see the effect it's having on the economy, particularly on the price of energy.' From petrol prices to pension pots, here's what you need to know: Iran is the third-largest oil producer among the 12 members of the Organisation of the Petroleum Exporting Countries (Opec), and there are worries about how a wider regional war could affect the transport of oil through the Strait of Hormuz, which accounts for about 25 per cent of seaborne crude oil transportation, according to the consultancy Capital Economics. The price of a barrel of Brent crude hit a six-month high of about $78 after Israeli attacks on Iran began, up from about $65 at the start of this month. That is bound to have a knock-on effect on motorists, said David Oxley from Capital Economics: 'A rough rule of thumb is that a $10 rise in the oil price will add about 7p to the price at the pump.' It normally takes about two weeks for oil prices to feed into pump prices, Oxley said. Motorists have, however, had some recent respite from the cost of living crisis as petrol and diesel prices hit their lowest in almost four years. Petrol cost an average of 132p a litre last month, the lowest since July 2021, while diesel was at 138p, the lowest since September 2021, according to the motoring organisation the RAC. While prices are likely to rise, they are not expected to reach the high of March 2022, when Russia's invasion of Ukraine caused the oil price to reach $127 per barrel. The price in sterling peaked in July of that year at more than £100 with pump prices hitting 192p per litre for petrol and 199p per litre for diesel. More than a million homeowners whose fixed deals come to an end this year may have their hopes of further interest rate cuts dashed. The lowest two-year fix was 3.72 per cent last month, but rates are starting to tick up again, according to the property portal Rightmove. The lowest two-year deal is now 3.82 per cent from Lloyds Bank for those with a Club Lloyds account. The lowest five-year fixed rate has gone from 3.78 per cent to 3.88 per cent, also from Lloyds. Lenders had been cutting mortgage rates to compete for business, but changed tack after inflation went from 2.6 per cent for the year to March to 3.5 per cent in April. This makes cuts to the Bank of England base rate less likely — the Bank generally keeps the rate high when inflation is above its target of 2 per cent. The Consumer Prices Index inflation figure for the year to May, released this week, was 3.4 per cent. Uncertainty around President Trump's trade tariffs and conflict in the Middle East has also dampened hopes of further base rate cuts. The Bank held rates at 4.25 per cent this week, which, although a lot higher than the sub 2 per cent rates many mortgage holders will have fixed at three or five years ago, is down from the peak of 5.25 per cent in August last year. Fixed mortgage rates are based on swap rates (the rates at which banks lend to each other, which are in turn based on forecasts of where Bank rate is expected to be in the future), which have edged up over the past week or so, suggesting that mortgage rates could follow. Homeowners who want certainty can lock in a new deal up to six months before theirs ends yet still swap if a cheaper deal comes along. Rising oil prices could also cause other expenses to creep up, particularly if the Iran conflict continues or escalates. Lotanna Emediegwu, an economics lecturer at Manchester Metropolitan University, said that prolonged conflict could drive up energy bills. The price cap that limits how much suppliers can charge customers on standard variable tariffs will work out at an average bill of £1,720 a year for gas and electricity from July 1 (down 7 per cent from today's cap). At the moment analysts expect the cap to go up 2 to 3 per cent in October, but this could change dramatically. He said: 'Until recently, fuel prices had been rising less than other things, so actually mitigating some inflationary pressures. The recent conflict is expected to reverse this trend. 'The financial repercussions extend beyond immediate energy costs into transportation and logistics. Transport expenses are particularly vulnerable to fluctuations in fuel prices. This affects everything from airline fares to shipping costs for products, ultimately hitting consumer prices.' Before June 12, when Israel launched strikes on Iran, inflation had been expected to rise to 3.5 per cent by the autumn — now it could go further. A sustained $10 per barrel rise in the oil price typically pushes up annual inflation by 0.1 to 0.2 percentage points, according to The Economist, meaning that it could be closer to 3.7 per cent by September. Emediegwu said a prolonged blockade of the Strait of Hormuz shipping route could add a further 0.5 to 1 percentage points, which could take it close to 5 per cent. So far the stock market has been fairly resilient to the conflict in the Middle East. The UK's FTSE 100 is down about 0.77 per cent since the turmoil started, while the US's S&P 500 is down about 1.06 per cent. If a sustained conflict leads to an increase in the price of oil, stock valuations may fall — this is because higher oil prices lead to higher inflation, which means interest rates are likely to stay higher for longer, which makes it more expensive for companies to borrow money to grow and often curbs investors' risk appetite. Losers are likely to include airline and travel stocks, as well as so-called growth stocks, which include technology and healthcare companies. Many investors will have exposure to the US 'Magnificent Seven' tech stocks of Microsoft, Apple, Alphabet, Tesla, Amazon, Meta and Nvidia. These companies are often valued on their future earnings potential, which means their stock price can be volatile if company results or wider economic conditions point towards a slowdown of earnings. The good news is that Iran and Israel are a very limited part of the global stock market, so direct exposure for most UK investors will be immaterial. However, Michael Field from the research firm Morningstar said that the risk is that wider markets get jittery about the potential for the conflict to escalate further. Investors should avoid making any kneejerk changes to their portfolio. Ultimately, while geopolitical tensions may create short-term turmoil, historically markets have been resilient in the long term. Jacob Falkencrone from the investment bank Saxo said: 'As an investor, your greatest tool is a disciplined approach — staying informed, remaining calm and focusing on your long-term investment goals rather than reacting impulsively to temporary shocks.'

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store