Robert Peston Profile picture
Feb 22 4 tweets 1 min read
One of the PM’s answers at #PMQs made my jaw drop. It was his response to the DUP leader @J_Donaldson_MP - who said he wanted a change to the Brexit treaty to take Northern Ireland out of the EU’s single market for goods. Rather than confront the DUP leader with the facts,…
which is that there is zero chance of that, Sunak implied he agreed with Donaldson and said reforms to address the “democratic deficit” in Northern Ireland was at the heart of what he and his colleagues are negotiating with Brussels. Really? Surely the PM…
knows that Brussels negotiators have been given no mandate by EU leaders to rip up the NI Protocol. It just isn’t going to happen. So why not just deliver the unwelcome news to the DUP and Tory ERG Brexiters straightaway, and at least look like a determined PM…
on a mission, rather than pretending that irreconcilable positions are capable of being reconciled?

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More from @Peston

Feb 21
Johnson’s Northern Ireland Protocol Bill may be what blows up Sunak’s attempt to reform the NI Protocol. On the one hand, the EU won’t do a deal with him if he doesn’t scrap it. On the other, Johnson, Braverman and other Tory Brexiters are saying he must permanently…
keep it as a reserve power with which to pummel the EU. In the end Sunak will have to choose between the Johnson-led Tory faction that loathes him, but which he can ill-afford to provoke, and an EU that looked to him to be a welcome break from that anti-EU faction. If…
he isn’t strong enough to choose, which conceivably he isn’t, these Protocol negotiations will go back into the slowest of all slow lanes, and there’ll be no resumption of devolved government in NI any time soon (and the UK’s trade relations with the EU will remain…
Read 4 tweets
Feb 21
Public sector borrowing in the 10 months to the end of January was £30.6bn less than the Chancellor expected, based on OBR forecasts, just in November. This will ratchet up pressure on him from Tory MPs to cut taxes in the March budget and from public sector unions to…
agree more generous pay settlements. Jeremy Hunt is trying to fend off the pressure! He says “with debt at the highest level since the 1960s, it is vital we stick to our plan to reduce debt over the medium-term…It is crucial to reduce the amount spent on debt interest”.
Central government debt interest was £6.7bn in January, the highest since records began in 1997. But with inflation and the debt stock so high, that should not be a surprise. More intriguing was the record haul from self-assessment tax of £21.9bn, the highest January figure…
Read 5 tweets
Feb 14
Matt Hancock was paid £400,000 before tax by ITV for his appearance on “I’m a Celebrity”, although his entry in the register of MPs’ interests say he was paid £320,000. 🧵1/4
I asked Matt Hancock to explain the discrepancy. He said he received £320,000, and gave no further information. 2/4
It is possible the missing £80,000 went to an agent, though Matt Hancock has not said that to me. 3/4
Read 8 tweets
Feb 7
The expected changes to configuration of the economic side of government will be announced mid morning. Four departments will emerge where there are three. There’ll be a new energy dept to focus on UK energy security and a new science and technology dept, which Sunak has…
signalled for some time as a priority. The business dept loses energy and re-gains trade (the DTI reborn). DCMS loses “digital” to the science and tech dept and returns to being simply Culture, Media and Sport. So there’s a new addition of one to the Secretaries of...
State. In terms of who gets what, if @KemiBadenoch is appointed to Energy that would prove contentious, after she mooted she could favour a delay to the 2050 net zero target during her leadership campaign. George Freeman would be seen by some as…
Read 4 tweets
Feb 6
One of Liz Truss’s big lessons from the economic disaster of her short time as PM is that there should be “more opportunity for the government itself to be creating the [economic] forecasts”. That is she wanted to be able to mark her own homework rather than be subject…
to the deficit forecasts of the @OBR_UK. This is a slightly curious argument especially since she and Kwarteng refused to let the OBR generate forecasts about the impact on the deficit of their unfunded tax cuts. But more importantly she is suggesting - which…
history would suggest is just not right - that there would be an economic benefit to the UK of limiting the independence of the official forecaster. In fact, constraining that independence would probably lead to a permanent increase in the cost…
Read 4 tweets
Feb 5
Liz Truss is completely right about one thing. It is astonishing that the Bank of England, the Pension Regulator and HM Treasury were so wrong footed by pension funds’ fire sale of government bonds and other assets as a result of their massive over-use of LDI hedging…
strategies. This was the most serious regulatory failure since the 2007/8 banking crisis. As Truss says, it contributed to the very real danger that the UK government would be unable to service its debts after investors reacted badly to her mini budget. This does not mean…
her unfunded tax cuts would have been economically sustainable in the absence of the LDI fault line, but it does represent seeming incompetence over many years by regulators, incompetence that has imposed economic costs on all of us. It is odd that…
Read 4 tweets

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