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IMF warns against state handouts as Budget looms

  Urgent need to cut borrowing means help with cost of living pressures must be ‘sparing’, fund says Daoly Telegraph 13/10/26 The International Monetary Fund (IMF) has warned against unfunded giveaways to ease cost of living pressures before John Healey’s maiden Budget. A fortnight before the Chancellor’s first major tax-and-spending event, the IMF downgraded its outlook for UK growth and warned of further price rises and job losses. While the fund did not issue a direct warning to Britain, it said an “urgent” need to bring down borrowing meant help with cost of living pressures should be used “sparingly” in all countries. It also called for any measures to be “well funded” to maintain credibility. In his first week as Prime Minister, Andy Burnham removed VAT from electricity bills at a cost of £850m and capped bus fares at £2. The Chancellor has said he will use the Budget to provide more “breathing space” to households and businesses. The Treasury is working on a targeted, tempo...
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ADHD surge fuelled by benefits, report warns

  Demand rising for medical labels seen as ‘the single reliable key to support’, review finds Daily Telegraph 09/10/26 Soaring demand for ADHD and autism diagnoses is being fuelled by Britain’s welfare system, a review has warned. A government-commissioned report says medical labels have become a gateway to benefits, school support and other help, creating financial incentives that risk driving overdiagnosis. The review finds evidence of a substantial rise in mental distress, estimating that about four million children and young people – one in five – are now experiencing high levels of psychological strain. However, it warned that unnecessary diagnoses could harm a generation by “closing doors”, lowering ambitions and defining children by what they cannot do. Advertisement The 607-page review, led by Prof Peter Fonagy, a clinical psychologist at University College London, questions how demand for diagnoses has been generated by making them “the single reliable key to support”. “...

Kemi Badenoch’s new strategy plays into Reform’s hands

  The Conservative leader’s focus on inheritance tax cuts and childcare for higher earners assumes Nigel Farage’s party is finished Daily Telegraph 08/10/26 At their party conference in Birmingham, the Tories unveiled their “Southern Posh” strategy. This marks the biggest shift in political strategy in a decade and carries enormous risks. Given a general election in the spring remains a possibility, we’ll know soon whether it’s a success. The conference carried an unambiguous message: “We’re here for the better off.” Allowing families to pass down homes and £1m without inheritance tax , and extending free childcare to higher earners, are top of the wish lists of middle-class, urban professionals. The party also pledged to reverse Labour’s “mansion tax” and, in time, to tackle other taxes on higher earners. To be sure, these policies mostly poll well with other voters too (particularly cuts in IHT), but collectively they’ll especially please the posh. While the party quietly presse...

Labour defeats Polanski in Holborn and St Pancras by-election

  In a boost for Andy Burnham, Sagal Abdi-Wali will succeed Sir Keir Starmer in the north London seat Daily Telegraph 09/10/26 The Labour Party has held onto Holborn and St Pancras in a by-election boost for Andy Burnham’s premiership. Sagal Abdi-Wali, the Labour candidate, beat Zack Polanski, the Green Party leader, by 3,364 votes in Sir Keir Starmer’s former constituency. After the defeat , Mr Polanski insisted he would not resign as leader, saying the contest had been “an opportunity to present Green Party values”. He is under mounting internal pressure over his leadership after the Greens lost ground in the polls and activists backed a motion at the annual party conference declaring “Zionism is racism”. Ms Abdi-Wali won with 45 per cent of the vote compared with the Green Party leader’s 32.7 per cent. Turnout was 38.8 per cent, down from 54.1 per cent at the 2024 general election. The Conservatives were a distant third on 1,922 votes with Reform UK fourth on 1,612. Ms Abdi-W...