19 January 2017
Week in Brief: UK
NHS: There are reports that 10 Downing Street has been critical, in private, about the head of NHS England who has been described as not enthusiastic and not sufficiently responsive to the problems within the NHS. He has rejected the criticism.
Theresa May has insisted that GPs’ surgeries stay open 7 days a week. She has said that early closing of surgeries has led to an increase in patients attending A&E sections in hospitals.
LABOUR: There has been confusion over the recent statements of policy by Jeremy Corbyn. He has proposed that companies with Government contracts should limit the pay of their directors and that income tax should be increased for higher earners. Later, he suggested that it was probably better to introduce a pay ratio instead, which would be voluntary. His change of mind seems to have been the result of criticisms made by senior Labour MPs and economists.
Tristram Hunt has reigned as the Labour MP for Stoke-on-Trent Central, to take up a post as head of the Victoria and Albert Museum. His resignation will lead to a by-election.
Jeremy Corbyn has dropped his opposition to nuclear power, perhaps because the Sellafield nuclear power station is in the constituency. In the past he has insisted that all nuclear power stations should be decommissioned. He has said recently that the number of such stations could expand.
BREXIT: Theresa May will insist on immigration controls in her discussions with EU negotiators. She has said that the UK will not stay in the single market (but the UK may stay in the customs union, which allows goods to move freely without customs checks). She said that the UK would be seeking a free trade deal with the EU, but would be prepared for a ‘hard’ Brexit if none was forthcoming, confirming that no deal would better than a bad deal. She also confirmed that both Houses of Parliament would have a vote on the final deal.
Philip Hammond, the Chancellor of the Exchequer, has warned the EU that if it refused the UK access to the single market, then the UK would be prepared to respond with a trade and tax war.
Donald Trump has indicated that he will offer the UK a free-trade deal so that the decision to leave the EU will become “a great thing”. He has said that he is looking forward to meeting Theresa May.
The IMF has raised its forecast about growth in the UK economy this year. It expects the economy to grow by 1.5% in 2017.
LIMITED PARTNERSHIPS: Scotland is reviewing the status of limited partnerships after evidence emerged that some of those registered may have been involved in fraud, tax evasion and money laundering. The concept of limited liability partnerships has been a feature of Scotland’s business life for over 100 years: the benefits include secrecy and lower tax liabilities.
STORMONT: Martin McGuiness, the Sinn Fein deputy first minister in the Stormont power-sharing government, has resigned. The result is that there will be an election in the province on 2 March. Mr. McGuiness resigned in protest about the involvement of the first minister Arlene Foster in a renewable heat incentive scheme (when she was a minister) which went wrong and is likely to cost the tax payer millions of pounds. The resignation of Mr. McGuiness means that the power-sharing arrangement automatically terminates and Arlene Foster loses her role as first minister.
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