Politics latest: Chancellor admits growth figures are 'disappointing' - but defends economic handling

Ministers 'hope' growth will return 'in the months ahead', chancellor says

The chancellor has spoken to broadcasters this morning to give her reaction to the news that from the Office for National Statistics (ONS) that the UK economy contracted in October for the second month in a row.

Rachel Reeves admitted the figures are "disappointing", but pivoted to attacking the Tories, saying: "It's not possible to turn around more than a decade of poor economic growth and stagnant living standards in just a few months."

Nonetheless, she argued that the government's recent announcements on energy and planning reforms, pensions reforms, and the creation of a National Wealth Fund, show that they are "getting on with the job of improving economic growth and driving up living standards".

Asked when we can expect the economy to start growing again, the chancellor replied: "Growth is the number one mission of this government – economic growth that results in families feeling better off with more money in their pockets – and we're driving that economic growth.

"And we hope that those numbers will start to improve because of the policies that we’re pursuing in the months ahead."

Miliband: 'I need to persuade Kemi Badenoch of the delights of a bacon sandwich'

Sandwichgate (yes, we have decided it's a 'gate') continues this morning, with Ed Miliband having to recall some painful memories on Sky News.

In case you missed this yesterday - Tory leader Kemi Badenoch sparked controversy by declaring that "lunch is for wimps", and sandwiches are "not real food". The PM then got involved, declaring sandwiches a "great British institution", and the pair traded barbs (more here).

Well, you may recall that, back in 2014, Mr Miliband, who was then Labour leader, "famously battled with a bacon sandwich", as put by Sky's Anna Jones - and so we had to get his view on the latest sandwich controversy.

He joyously told us that he is "here for the sandwich content".

He added: "I wish I could have a cross-party consensus here with Kemi Badenoch, but I can't.

"You know, I think I need to persuade her of the delights of a bacon sandwich."

Miliband insists clean power by 2030 will reduce bills and is 'absolutely deliverable'

The government is today unveiling plans to reform the UK's energy system in a bid to bring down bills and deliver their goal of clean power by 2030.

As we were speaking to Energy Secretary Ed Miliband a short while ago, the proportion of energy coming from fossil fuels was over 75%, so we asked if reducing that below 5% by 2030 is really doable.

He replied: "Absolutely, it's a big challenge. And you know what, the British people voted for big change at the election, and we're going to deliver it. And it is absolutely deliverable."

The senior minister went on to say that as we are currently getting so much of our power from fossil fuels, we are vulnerable to shocks in the energy market. He also said we are at the mercy of decisions made about supply by "dictators like Putin".

And so he argues that "we are going to need to change things".

"We do need big, bold reform to make this happen," he said. "Big reform of our planning system, big reform of the way that we give projects a priority in what's called the grid queue, so connecting to the national grid.

"That's all part of our plan, but it's absolutely the right thing for our country, for a whole host of reasons. And it's absolutely doable."

During the election, he said energy bills would come down by £300 per year by 2030, and we asked if he stands by that.

Mr Miliband replied: "Yes, absolutely. We can bring bills down by up to £300."

Clean energy is cheaper than fossil fuels, he said, so it is "the foundation of lower bills".

The energy secretary also said infrastructure is going to need to be built in order to modernise the energy grid, and while "local people get to have a say", he said we are "going to need this infrastructure".

More details on precise plans to compensate affected communities will be unveiled "in teh coming weeks", but Mr Miliband added that "local communities that host clean energy infrastructure should benefit from it".

Avanti train strikes around Christmas suspended

A planned strike for three days through the Christmas period by workers for Avanti West Coast has been suspended, the Rail and Maritime Union (RMT) has announced.

Train managers for the company were due to strike on 22, 23, and 29 December, but the action has been called off after a revised offer was made.

Staff will now vote on the offer in a referendum, which will close on 17 December.

The union said it remains in dispute with Avanti while the vote takes place, meaning industrial action remains on the table should their members reject the offer.

I don't regret voting against military action in Syria as Labour leader

When the now energy secretary Ed Miliband was Labour leader back in 2013, he and his party voted against then-PM David Cameron's plans for military action in Syria in response to President Assad's chemical weapons attacks on his own people.

We asked if he regretted that decision in hindsight, and he replied: "No, I don't … I welcome the fall of president Assad.

"Back in 2013 we were confronted with whether we should have a one-off, potential one-off bombing of Syria.

“But there was no plan for what this British involvement would mean, where it would lead, and what the consequences would be.

“And I believe that in the light of the Iraq war, we could never send British troops back into combat unless we were absolutely clear about what a plan was, including what an exit strategy was."

Turning to those who argue that the Assad regime would have collapsed in 2013 had those airstrikes taken place, Mr Miliband said: "That's obviously wrong, because president Trump bombed president Assad in 2017 and 2018, so he didn't fall.

"So I welcome the fall of a brutal dictator, but I think the view that some people seem to be expressing about history is just wrong."

GDP contraction is 'one month's figures', Miliband says

We've just been speaking with the energy secretary, Ed Miliband, and we asked for his reaction to the news from the Office for National Statistics (ONS) that the UK economy contracted by 0.1% in October.

He told us that these are "one month's figures", and went on to say that the energy system reforms that he is unveiling today are "absolutely part of that mission for growth".

He was speaking to us from a wind turbine factory in Hull that employs 1,300 people, and he said "the future of our energy system, the future of our a growing economy" there.

"We're talking about an age of clean electricity, which can give us energy security, lower bills, good jobs and growth, and tackle the climate crisis," Mr Miliband said.

"So we're not just talking about it. We've got a plan to make it happen."

Lib Dems demand ministers reverse national insurance hike after economy shrank

We've just had some reaction from the Liberal Democrats to the latest GDP figures, which show the economy contracted by 0.1% in October.

The party's Treasury spokesperson, Daisy Cooper, said in a statement: "This unexpected fall in GDP shows why it's so disappointing that the budget missed so many opportunities and made so many self-defeating decisions.

"Small businesses are the engine of our economy and drive growth. Yet this government has decided to burden them with more costs."

She called on the government to "realise their mistake" and reverse the hike in employers' national insurance for small businesses.

Tories blame chancellor for economic contraction

We've just had some reaction from the Conservative Party to the news from the Office for National Statistics (ONS) that the UK economy contracted by 0.1% in October.

Shadow chancellor Mel Stride said in a statement: "It is no wonder businesses are sounding the alarm.

"This fall in growth shows the stark impact of the chancellor's decisions and continually talking down the economy."

He went on to say that Labour was left "the fastest growing economy in the G7", adding: "Because of their decisions, growth is now under serious pressure.

"The impact will be felt by families through higher taxes, fewer jobs, higher prices and higher interest rates."

Chancellor: Latest GDP figures 'disappointing'

We've just had some reaction from the chancellor to the news from the Office for National Statistics (ONS) that the UK economy contracted by 0.1% in October (see previous post).

Rachel Reeves acknowledged in a statement moments ago that the figures are "disappointing", but insists the government has "put in place policies to deliver long term economic growth".

She said: "We have put public finances back on a stable footing, capped the rate of corporation tax at the lowest level in the G7, established a £70bn National Wealth Fund to drive growth in our towns and cities, launched a 10-year infrastructure strategy and are creating pension mega funds to boost investment in British businesses, infrastructure and clean energy."

She added: "We are determined to deliver economic growth as higher growth means increased living standards for everyone, everywhere."

-SKY NEWS