Good morning, opening with the Eurofighter, Fursan Al Emarat and a Chinook at #FIA2026
We fly into the show with Blade, meet Joby's test pilot Buddy, chat to a Black Hawk pilot encouraging girls into STEM, and test Soundcore's ANC earbuds with the very loud air display ✈️🚁
Victoria Derbyshire, "What did we learn about our living standards?"
Ben Chu, "1% growth over 10 years"
"We used to grow 2% every year"
That's one way of illustrating the enormous economic price Britain has paid for Brexit #RejoinEU
The OBR estimates that Brexit will leave the UK economy around 4% smaller in the long run than it would otherwise have been, with both imports and exports taking a substantial hit.
We were promised greater prosperity, more opportunities and a stronger economy outside the EU. Instead, we've added significant trade barriers with our largest trading partner during a period of extraordinary economic stagnation.
Brexit isn't responsible for every economic problem Britain faces, but it has made the challenge of improving living standards considerably harder.
And ordinary households are living with the consequences of that decision.
Krishnan Guru-Murthy on Healey's budget,
"If you think about most people's lives next year, there's not a lot to look forward to, is there. We are going to have less disposable income"
"The amount by which you can make people feel better is very limited, and we're looking at a grim year ahead"
"Your government came in promising hope again at the Labour conference"
"I'm struggling to see a lot of hope"
My view:
This feels like an okay budget, but not an especially exciting one. Yes, there’s a Spending Review next year, and Andy Burnham has pointed to some positives.
But it still feels as if we’re coasting along, taking baby steps when many people were hoping for a bigger, bolder vision.
Even Keir Starmer himself once talked about the need for radical change.
So far with Andy Burnham, it’s hard to see that ambition in the direction of travel, despite some positive positions, especially on addressing homelessness.
Maybe next year’s review will set out something more transformative, but for now the sense is of a government managing the present rather than making a compelling case for the future.
Dr Abdul El-Sayed, "We actively being bullied by the dumbest people in the room. Donald Trump Is an idiot. A nepo baby. Just a fool."
El-Sayed, a medical doctor, is also the Democratic Senate candidate in Michigan.
El-Sayed is arguing that this isn’t just about Trump’s character, but how power is being used.
There’s a reason the bullying charge resonates: Trump has repeatedly called for action against people he considers enemies, and his administration has used federal power against critics and opponents.
When the president turns public institutions into tools for personal retaliation, it’s more than bluster.
I’m grateful El-Sayed is willing to speak plainly about what this looks like: a president attacking people he sees as opponents and using the power of his office against critics.
The midterms give Americans a chance to judge this record for themselves: are they comfortable with this kind of leadership, or do they want a Congress that will push back and take the country in a different direction?
Trump, "Are you a stupid person? Who do you work for?"
Journalist, "ABC News"
Trump, "You're a stupid person"
My view:
When the president of the United States responds to a journalist with a schoolyard insult, he does more than demean her. He diminishes the office he holds and the public’s ability to take it seriously.
The presidency carries authority because it represents more than the person occupying it.
Trump has treated that authority as a weapon for personal grievance: mock, belittle, demand deference, and cast scrutiny as an enemy act.
The spectacle may be designed to look like strength.
But it reveals something smaller: a leader unable to meet a question with an answer, or a critic with an argument.
This is populism eating itself.
It feeds on contempt for institutions, then hollows out the institution it commands.
It claims to speak for ordinary people while making public life meaner, cruder and less capable of honest scrutiny.
The damage reaches beyond one exchange or one presidency.
When the most prestigious political office in the world is reduced to insult and grievance, the standing of the office—and the country it represents—suffers with it.
John Healey’s Budget speech in full
Followed by 18 key points and my views
1. Healey opened by calling it a Budget for working people and businesses. He promised immediate help with living and business costs, support for growth, and action on energy, national security, public services and housing.
My view: This set out the Budget’s overall pitch: short-term help for households alongside longer-term investment. Whether people feel the benefit will depend on how much the measures reduce their costs in practice.
2. He described the economic pressures facing the UK, including the war in Iran, higher energy prices and rising borrowing costs. He said the Government would pay £14bn more in debt interest this year, and paid tribute to his predecessor Rachel Reeves.
My view: Healey framed the economic pressures as limiting what the Government could afford. Higher debt-interest costs leave less money available for public services or new support.
3. He said the Government would meet its fiscal rules: day-to-day spending covered by tax receipts, and public debt falling as a share of GDP. He reported £15bn of headroom in 2029–30 and said the Budget would put the public finances on track to eliminate the deficit within three years.
My view: The rules are intended to reassure lenders and keep borrowing under control. The £15bn headroom is a buffer, but it could shrink if growth disappoints or costs rise.
4. The OBR forecast growth of 1.2% this year, 1% next year, 1.6% in 2028, 1.8% in 2029, 1.7% in 2030 and 1.6% in 2031. Healey argued the UK had outperformed expectations and could do so again.
My view: The forecasts point to steady, modest growth rather than a rapid recovery. The Budget’s success partly depends on whether its investment and business measures help growth come in stronger than forecast.
5. On energy, he said clean-energy policy costs would be taken off household bills. He confirmed gas standing charges would be scrapped for around 23 million homes, with estimated average savings of £45 a year for two-thirds of households.
My view: Removing the fixed charge could particularly help households that use less gas. The costs do not disappear, though; shifting them away from bills means they will need to be covered another way.
6. He extended the cut to VAT on electricity bills through the winter and spring to July, saying this would take about £50 off the annual price cap.
My view: This offers temporary help with electricity costs. It gives households some relief over the coming months, but it is not a permanent reduction in energy prices.
7. Around 20 million households in council tax bands A to D will receive a £100 energy payment, paid directly into bank accounts to help with bills through to spring.
My view: The payment is targeted at lower and middle council-tax bands and gives eligible households direct support. It is a one-off contribution, so it may ease bills without covering the full increase in energy costs.
8. He extended the 5p fuel-duty cut through the winter and spring. He also increased the tax-free mileage rate for people who use their cars for work.
My view: Extending the fuel-duty cut helps motorists and businesses that rely on road transport, but it also delays the return of revenue to the Treasury. The mileage change is aimed at workers who use their own cars, though its value depends on how much they drive for work.
9. Import tariffs will be removed from more than 100 products, including baked beans, chocolate and gherkins, with the aim of reducing prices. The changes are also intended to cut costs for farmers and some households.
My view: Removing tariffs can lower import costs, but the final saving depends on whether retailers pass it on to customers. It may also reduce costs for businesses that use imported ingredients or materials.
10. Self-employed fathers will be eligible for paternity pay. Healey also set out changes intended to stop unpaid carers losing support just because their earnings go slightly over the Carer’s Allowance limit.
My view: These changes aim to make support available to people whose work arrangements have often excluded them. For carers, reducing the risk of losing the whole allowance after a small earnings increase could make taking on extra work less financially risky.
11. Small-business rate relief will be widened by raising the threshold from £12,000 to £18,000, which the Government says will benefit around 70,000 firms. Some gambling-machine businesses will pay higher duty, while adult gaming centres and vape shops will not qualify for business-rates relief.
My view: The relief is intended to reduce pressure on smaller firms, especially shops and hospitality businesses. The benefit will vary with each business’s property costs, while the higher duties and exclusions shift some of the tax burden to specific sectors.
12. He said online marketplaces would face action to prevent sellers avoiding VAT. HMRC will also get more resources to improve tax compliance and stronger powers to collect overdue tax.
My view: The Government is seeking revenue by enforcing existing tax rules more effectively. The impact will depend on how well HMRC can identify non-compliance and collect the money owed.
13. Healey said there would be no change to tax on wages or dividends. He reversed the planned cut to the annual cash ISA allowance, keeping it at £20,000 rather than reducing it to £12,000.
My view: Keeping the ISA allowance unchanged preserves savers’ flexibility and avoids a planned restriction on tax-free cash savings. Holding off on tax rises to wages and dividends also means the Budget relies on other sources of revenue.
14. Banks will pay an additional 3 percentage points on the bank surcharge for 15 months from January. Healey said the measure would help fund support for households, including energy-bill measures.
My view: The increase is temporary and aimed at raising revenue from banks. Banks may absorb some of the cost, but the wider effects could depend on how they respond through savings rates, fees or lending.
15. The Government will put an extra £20.4bn into the National Wealth Fund and British Business Bank to support investment in growing companies. It will support Rolls-Royce’s development of next-generation passenger-jet engines and spend another £500m on AI safety and security.
My view: These measures are designed to encourage investment in UK businesses and emerging technology. The economic return will take time and depends on whether public funding draws in additional private investment and creates lasting jobs or productivity gains.
16. A new data-centre agreement will require investment in local areas and protections for water supplies, while allowing faster grid connections and on-site electricity generation. Entrepreneurs will also get new tax breaks, including a higher tax-free allowance for new ventures and a new 10% rate on up to £10m of qualifying founders’ gains.
My view: The data-centre rules try to balance faster development with local concerns about resources and infrastructure. The entrepreneur tax breaks are intended to reward business creation, though their effect will depend on how many founders qualify and whether the incentives change investment decisions. - I would like to see location of data centres also away from residential areas.
17. Healey announced local projects and plans to give mayors and councils more control over revenue, including a share of business rates and income-tax receipts. He said the defence investment plan would be fully funded, repeated the 3% of GDP defence-spending goal for 2030, and announced work on civil-service savings, NHS productivity and apprenticeships. He also said the Government would seek to reduce the welfare bill.
My view: Devolution could give local leaders more control over investment, but regions may benefit differently depending on their tax base and economic growth. On defence, welfare and public services, Healey set out broad goals; several details are due in later reviews and spending decisions.
18. On housing, he announced £430m to provide places to sleep for people experiencing rough sleeping, cheaper borrowing for councils and a new first-time buyer ISA. He closed by saying the Budget would give families “breathing space now” and “fresh hope for the future”.
My view: The measures combine immediate support for people sleeping rough with longer-term help for housing supply and first-time buyers. Their effect will depend on how quickly homes and support become available, and whether the new savings scheme helps people overcome the wider costs of buying.
In summary, the main weakness is that much of the immediate help is temporary, while the difficult choices on public services, welfare and defence funding are still to come.
Not a bad budget, also not one I want to sing about. It almost feels as if the temporary support is a sticky plaster trying to cover the cracks of a system broken by years of underinvestment and fewer opportunities for young people, particularly in an era that will unleash the potential and scope of AI, affecting all of our lives.
It was more stable and responsible than Liz Truss’s disastrous mini-budget, but stability is only a starting point.
And it was delivered much better than Rachel Reeves's budgets which put far too much focus on doom and gloom, and not enough on direction and hope for the future.
There’s still a lot more room for detail—and for hope—especially on how public services will be protected, how defence will be funded and what opportunities young people will have in an AI-shaped future.
My biggest disappointment, no commitment to renationalising water. Which after recent years of decline, was a bit of a let down.
Left: Danny Kruger calls for more oil and gas
Right: Six years ago Danny Kruger supported net zero saying,
"Climate change is one of the greatest challenges we face, and I can assure you that I recognise the importance and urgency of action on this issue."
"Indeed, the threat of global warming has never been more apparent, as highlighted by the sobering conclusions of the Intergovernmental Panel on Climate Change’s special report on global warming of 1.5C."
My view:
A striking change in emphasis: Danny Kruger once spoke of climate action as urgent. Now he’s calling for more oil and gas exploration.
His own words show how much his position has shifted.
Yvette Cooper looking a bit miserable in parliament
I wonder if she's reflecting on the more than 3,600 people arrested for non violent protest after she rolled out a policy which Baron Hain said was "intellectually bankrupt, politically unprincipled and morally wrong" - much like her.
A rockstar in opposition. A let down in office.
Ed Davey calls on Labour to join the EU Single Market and the Customs Union before the next election.
Andy Burnham says he's sticking with Labour's red lines for the duration of this parliament.
This should be an important reminder to anyone saying Andy Burnham opening the conversation of rejoining the EU is breaking Labour's red lines; it's not.
Having a conversation with the EU, scoping our alternatives, including a full rejoin EU, is what any sensible government should be doing, especially given the economic impact on our country.
That some are so ideologically opposed to exploring how to improve trade and co-operation with the biggest economic bloc which is on our doorstep, should be a stark warning that they are less interested in what is better for the country and more interested in a particularly ideology, whose outcome keeps the country worse off than it needs to be.
Ed Davey supports the abolition of the cliff-edge for carers allowance but rightly observes,
"The gov will claw back £1 for every extra pound a carer earns, a 100% tax rate for working carers. That can't be right"
My view:
Ed Davey is right to support ending the Carer’s Allowance cliff edge. But clawing back £1 for every extra £1 a carer earns means a 100% effective withdrawal rate: they’re no better off for earning more.
The top rate of income tax is 45% in most of the UK, and 48% in Scotland. Why design a system that takes all the extra earnings from carers? These plans need much more thought.
Andy Burnham repeats his commitment to end rough sleeping in the UK Christmas 👏
When every other Prime Minister before him refused to do this is a stain on British decency, and any party that doesn't support this initiative really ought to be ashamed of themselves.
Andy Burnham, "Can I tell her who supports what we are doing?"
"The CBI, the Federation of Small Business, the British Retail Consortium, Asda, Morrisons, M&S, Salmon Scotland"
"They all support what we're trying to do"
"Why doesn't she join with us and send a strong message that Britain is calling for a better Brexit deal so we can get growth going again"
My view;
The Conservatives once built their reputation on being the party that understood business.
Now they’re defending a system that leaves businesses buried in friction and paperwork, while the people who actually represent employers are asking for a better arrangement.
That’s quite a fall: from championing enterprise to becoming the party of red tape.
Kemi Badenoch criticises Andy Burnham for not being there during the chaos of the Brexit debates in parliament
The PM responds saying that's exactly why Labour are going to fix things,
"The country was paralysed by the Conservatives: low growth, insufficient control on migration"
"I am focused on getting a better deal for Britain"
"For farmers and food producers, less red tape on our exporters, more support for steel and car industries, more control of migration"
"Where is the Tory party of old that used to stand up for those things"
My veiw:
Badenoch wanted to make Andy Burnham’s absence from the Brexit debates the story. Instead, the exchange exposed how much the Conservative Party has changed.
The old Tory instinct was to talk about British industry, backing producers and making the country’s rules work in Britain’s interests. Labour is now making that case.
Today’s Conservatives seem to have traded that ground for a race to sound more like the far right.
You can argue over whether Labour will deliver.
But it’s striking to watch the party that once claimed ownership of these ideas attack them from the sidelines.
Andy Burnham, "She said it was a mistake for the Conservative party to leave the European Union before we had a plan for growth outside the EU"
"She may as well have said that it was a mistake to leave the EU without a plan in place to control migration"
"Because that is what led to the Boris wave, in the government she was in"
"Where migration in this country changed, away from revolving door migration (with the EU), towards long term settlement"
"Let's have humility from the Conservative benches who left low growth and migration our of control"
Kemi Badenoch, "I stand by my words. Where we make mistakes I own up to them"
Badenoch then claims that Burnham doesn't respect Labours own Brexit red lines, even though he's already said that he isn't changing them during this parliament.
Burnham then picks up on her claim where she says she admits to making mistakes observing that twice on BBC London she was asked whether Brexit was good or bad for the economy, and she refused to answer.
Badenoch then says yes, to Brexit being good for the economy.
The Conservatives spent years promising Brexit would boost the economy. Now, when asked if it actually did, their leader needed a shove to say yes.
They left the country with weaker growth and a mess of their own making. The lectures can wait.
Andy Burnham repeats that Labour's red lines will not change during this parliament.
Then goes on to say that we need to improve our relationship with the EU which the Conservatives negotiated, is bad for business, including food, steel, cars, and will allow a better approach to migration.
Kemi Badenoch says Labour are using the Conservative Brexit deal to lower VAT on energy bills
As it so happens, the Conservatives and Labour both managed to lower VAT on energy bills while still staying in the EU in 1994 and 1997
Badenoch asking Burnham to thank him for doing what we could already do when inside the EU, is peak Conservative.
Time for the UK to rejoin the EU and be part of our European family again ☺️
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Embassy of Spain UK@EmbSpainUK
40 years ago Spain joined the EU. Four decades of freedom and progress that have made us better in so many ways.
🇪🇺 Did you know that over the past 40 years, more than one million Spaniards have taken part in the Erasmus programme? 🎓🇪🇸
40 years ago Spain joined the EU. Four decades of freedom and progress that have made us better in so many ways.
🇪🇺 Did you know that over the past 40 years, more than one million Spaniards have taken part in the Erasmus programme? 🎓🇪🇸
