Reeves ‘not even sure what the popular path is’ on the budget – UK politics live

12.51pm GMT Friday’s episode of Today in Focus concentrates on the allegations about Nigel Farage’s school days after former pupils at Dulwich College made shocking claims about the Reform leader’s behaviour at school – which he has denied. The Guardian’s Daniel Boffey reports on the story in the podcast linked below: Related: Nazi salutes and racism: the allegations about Nigel Farage’s school days – podcast Updated at 12.51pm GMT 12.36pm GMT Labour MPs urge Reeves to drop private finance plans for NHS buildings Rachel Reeves has been urged by 40 Labour MPs to drop plans to fund NHS buildings with private finance initiatives (PFI) that would saddle the health service with debt. The Labour MPs, including Cat Eccles, Clive Lewis and Rebecca Long-Bailey, pressed the chancellor to commit to investment in the NHS without the use of private capital and warned that a return to the New Labour era of private funding for public projects would be damaging for trust in the government. “We are asking you to learn from the mistakes of the past. We must reject the notion that private finance can be used to build public services in a way that can be to the long-term benefit of the public,” they said in their letter. “We ask you to please drop any plans for new private finance in the NHS from the autumn budget and any future policy.” While it was originally conceived under the Conservatives, Tony Blair’s Labour government made significant use of PFI, a form of public-private partnerships used to build schools, hospitals and other public infrastructure, without adding to the national debt. In their joint letter, the dozens of Labour MPs said using private partnerships was more expensive than publicly funded projects and had contributed to crippling debts in the NHS since 1997, with 80 trusts still paying back a combined £44bn while services are suffering. The MPs said: As I am sure you are aware, using private finance to build new healthcare facilities does not bring in new money to the NHS – it is simply an expensive way of borrowing money which future generations of taxpayers will be required to pay back. Nor is it likely that using private finance will allow you to stay within your current rules on investment and borrowing, even if it is classed as off the public sector’s balance sheet. The Office for Budget Responsibility indicated in 2017 that using ‘off-balance-sheet’ financing for public infrastructure to dodge borrowing rules amounts to a ‘fiscal illusion’ and that it should only be used if there is a clear value for money justification. However, as the National Audit Office found in 2017 there is no evidence that these schemes are value for money, with PFI hospitals being 70% more expensive than the publicly financed option. The UK infrastructure strategy and the 10-year plan for health mention exploring the use of private capital for funding the building of NHS facilities, including neighbourhood health centres (NHCs). Related: Labour MPs urge Reeves to drop private finance plans for NHS buildings 12.20pm GMT Downing Street has defended Keir Starmer’s travel to South Africa for the G20 summit – coming days before the budget is expected to raise taxes and despite the US president’s absence – saying he would use it to shore up support for Ukraine as Washington has been drafting a peace plan with Moscow that would reportedly require Kyiv to give up territory and weapons. Starmer, French president Emmanuel Macron and German chancellor Friedrich Merz are expected to speak to Ukrainian president Volodymyr Zelenskyy about the US-Russia developments later on Friday. Asked about Donald Trump’s absence, Starmer told reporters travelling with him: In terms of attendance, obviously President Trump set out his position. I think it’s really important to be there and to talk to other partners and allies so we can get on with the discussions around global issues that have to be addressed and do have an impact back at home, but also to take the opportunity face to face to further the deals that I want to do for our country. He also said: In the last three years the jobs that have been generated in the UK from countries in the G20 is 200,000 and that focus in the budget will be very much the economy and the cost of living. And I will focus on the deals we can do, the business we can do with our partner countries and make sure that the work we do internationally is impacting directly at home. Russia’s Vladimir Putin and Chinese President Xi Jinping are also among the leaders skipping the multilateral forum, designed to bring together the world’s leading economies. Chinese premier Li Qiang is to take Xi’s place, but Starmer declined to say whether they will meet. 12.08pm GMT The Guardian’s Whitehall editor, Rowena Mason, has written about how yesterday’s Covid report lays bare Boris Johnson’s complacency and lack of leadership. You can read the full piece here: Related: Covid report lays bare Boris Johnson’s complacency and lack of leadership 11.53am GMT Bitter Arctic air has swept across the UK this month, causing winter to arrive early for millions of people, with temperatures in some places plunging below zero. On 1 October the energy price cap rose 2% to £1,755 for a typical annual dual-fuel bill in Great Britain. That was on top of existing debt to energy suppliers of £4.4bn in June, according to Ofgem – which should “ring alarm bells” for lawmakers, said a coordinator at the End Fuel Poverty Coalition. Since the cost of living crisis began in 2022, the UK has seen the rise in warm banks as spaces where people could escape freezing homes. Many libraries continued to operate as designated warm spaces in winter 2023 and 2024, and the charity Warm Welcome Spaces says it has a network of almost 6,000 spaces. With the concept set to continue in winter 2024-25, the Guardian community team want to hear from you. If you want to share your experience of visiting, setting up or working at a community warm space in recent years, then fill in the form at the link below: Related: Tell us: have you visited or worked at a UK ‘warm bank’? 11.42am GMT Starmer announces £400m worth of deals for trains, planes and submarines at G20 summit Keir Starmer met business leaders and apprentices at EY’s headquarters in Johannesburg, as he announced deals worth £400m for trains, planes and submarines, reports the PA news agency. The prime minister said the summit was taking place at a “volatile” time both in terms of global security and trade. Starmer will also visit a train depot with Derby-built trains on Friday to announce a deal under which government-owned Crossrail International will advise on driving investment in South Africa’s railways. The UK has also launched a new partnership with Vietnam to support a digital overhaul of its railway system, reports the PA news agency. Other deals include: A new UK-South Africa mutual recognition arrangement that is estimated to increase exports by up to £700m over five years. British Steel has secured a further £35m contract to supply products for Turkey’s high-speed network. UK firm Rolls-Royce will supply new jet engines for 10 Air Algerie aircraft as part of a £370m package of air deals with Algeria. UK defence firm Babcock has won an initial contract to assess the readiness of and help maintain South African navy submarines. The prime minister is expected to meet a series of Indo-Pacific and African leaders during the G20 gathering. South Africa currently holds the rotating G20 presidency, with the US due to take over at the end of the year. Asked whether in striking business deals with African states, he was ignoring their ties to Russia, Starmer said: We’re allies with South Africa and of course I want to get deals with South Africa and other countries over the line. Defending Starmer’s trip so close to the budget, a No 10 spokesperson said that “whenever the prime minister is overseas it is focused on the priorities of people in this country” and stressed it was “important that the prime minister engages with our international allies in order to strengthen that support for Ukraine”. 11.27am GMT If all this budget talk has got you thinking you could do better than Rachel Reeves as chancellor, then have a go at the Guardian’s interactive budget game. Pull the economic levers via the link below: Related: Could you do better than Reeves as chancellor? Play our interactive budget game Updated at 11.27am GMT 11.09am GMT Reeves 'not even sure what the popular path is' on the budget The UK cannot continue to “muddle through” and must take “a different path” on the economy, the chancellor has said. Ahead of her second budget on 26 November, Rachel Reeves told the Times that the country could not continue on its current trajectory. But she admitted she was “not even sure any more what the popular path is” amid calls for a wealth tax from some politicians and heavy tax and spending cuts from others. In the interview published on Friday, Reeves said: I’m not even sure any more what the popular path is. There are lots of people who say cut taxes and the economy will grow, but what spending would they cut? Borrowing is too high, but you can’t cut it overnight. Public services are a mess, but we haven’t got loads of money to throw at them and we have to use what we’ve got well. We can’t just carry on like this and muddle through. We have to make some decisions to get on a different path. Overnight, Keir Starmer said the budget would reflect “Labour values” and be “based on fairness”. The prime minister said it would prioritise protecting public services, particularly the NHS, cutting the national debt and tackling the cost of living. But Reeves faces a difficult challenge to achieve those aims thanks to weak economic growth, persistent inflation and an expected downgrade to official productivity forecasts. Those challenges mean she is widely expected to raise taxes in an effort to bridge a multibillion-pound gap in her spending plans. In the interview, Reeves added that she was “sick of people mansplaining how to be chancellor to me”. Suggesting at least some of the criticism was motivated by sexism from “boys who now write newspaper columns”, she said: I recognise that I’ve got a target on me. You can see that in the media; they’re going for me all the time. It’s exhausting. But I’m not going to let them bring me down by undermining my character or my confidence. I’ve seen off a lot of those boys before and I’ll continue to do so. Related: Rachel Reeves sick of people ‘mansplaining’ how to be chancellor Updated at 12.03pm GMT 10.54am GMT UK government borrows more than expected in setback before budget The UK government borrowed more than expected in October, official figures show, in the final snapshot of the public finances before Rachel Reeves’s crunch budget. The Office for National Statistics said borrowing – the difference between public spending and income – was £17.4bn last month. That was lower than the same month last year, but still the third highest October deficit on record. It was also above the £15bn City economists had forecast. In the fiscal year so far, borrowing is running at £116.8bn – 8.4% higher than the equivalent period in 2024, the ONS added, underlining the challenge facing Reeves in balancing the books. This year-to-date deficit is £9.9bn more than the independent Office for Budget Responsibility (OBR) expected the government would be borrowing at this point. It will publish new forecasts alongside the budget next week. Martin Beck, the chief economist at the consultancy WPI Strategy, said: As things stand, total borrowing in 2025-26 could overshoot the OBR’s full-year forecast by around £10bn, pushing the deficit close to 5% of GDP. Combined with policy U-turns, market movements, and a deteriorating productivity outlook, the chancellor’s headroom against her fiscal rules has almost certainly vanished. The ONS said central government spending was £3.7bn higher in October than a year ago – pointing to rising benefits payments because of higher than expected inflation, and pay increases for public servants. Reeves will deliver her second budget on Wednesday against a difficult political background, after the Treasury floated and then ditched plans to raise income tax. She is expected to raise taxes significantly, in response to a downgrade in economic forecasts from the OBR, and in order to increase the £10bn headroom against her fiscal rules. Related: UK government borrows more than expected in setback before budget 10.31am GMT At next week’s budget, Rachel Reeves is widely expected to announce an increase in the duties that bookies and casinos pay to the Treasury, ending months of speculation and frenzied lobbying designed to sway the government. The tax rise could cost the industry anything between about £1bn and £3bn, depending on how far Reeves turns the screw. To some, that would be fair recompense for an out-of-control industry grown fat on misery. To others, it would be an anti-growth tax that will backfire, costing thousands of jobs and fuelling the illicit market. The devil is in the detail, writes my colleague Rob Davies in this helpful explainer: Related: How could Reeves hit gambling firms – and are they fearmongering over impact? 10.14am GMT Prime minister Keir Starmer had a bilateral meeting with South African president Cyril Ramaphosa on the sidelines of the G20 summit on Friday. The two leaders discussed the 11-hour flight from London to Johannesburg in brief remarks in front of reporters, according to the PA news agency. “I wanted to be here,” Starmer told Ramaphosa. The South African president appeared in good spirits, joking that he would have to jump over the table to bypass waiting photographers and reach his seat. Updated at 10.15am GMT 10.07am GMT Commenting on the latest energy price cap, Liberal Democrat energy spokesperson Pippa Heylings said that “it is time” for the government to “live up to their word” on bringing down energy bills. Heylings said: Energy bills are still far higher than five years ago, on top of sky-high mortgages and rents and prices in the shops.The government has pledged time and time again to bring down energy bills – it is time for them to live up to their word and stop tinkering, committing to a real long term plan.Liberal Democrats have a plan: we would slash energy bills in half by removing the renewables levy from bills, creating new energy loans for homeowners to insulate their homes and boosting renewables – the cheapest, cleanest and most popular form of energy. 9.52am GMT Lib Dems to force vote on creating new customs union with EU The Liberal Democrats are forcing a vote in parliament on creating a new customs union to put pressure on Labour MPs to take a more pro-EU stance. Ed Davey’s party is writing to all Labour MPs urging them to back a new bill in favour of a customs union with the EU, believing this is the best way to boost growth and raise revenue, rather than tax rises. The bill, tabled by Al Pinkerton, the Lib Dem spokesperson on Europe, will be voted on by MPs in early December, two weeks after the budget. It is largely symbolic and not likely to pass because it does not have government support. However, the Lib Dems are hoping to demonstrate support among pro-EU MPs for the idea of a new customs union. The letter highlights recent analysis from the National Bureau of Economic Research which found that Brexit has reduced UK GDP by 6-8%. Separate analysis by the House of Commons Library commissioned by the Lib Dems has found that the boost to growth from a more ambitious trade deal with the EU could generate at least £25bn a year for the public finances. The Lib Dems said they were calling for the UK to negotiate a new customs union with the EU, covering most goods but not agriculture, and in which the UK would be consulted during negotiations on new EU trade deals with third countries. Davey said: The chancellor has admitted the damage Brexit has done to our economy, including burying British businesses in mountains of red tape, yet the government is refusing to take the steps needed to fix it. A customs union with the EU is the single biggest lever this government could pull to turbocharge the UK economy. We will work with MPs across parliament who want a closer trading relationship with Europe – to cut red tape, boost growth, and properly fund our public services. Related: Lib Dems to force vote on creating new customs union with EU 9.38am GMT Treasury chief secretary James Murray said next week’s budget would set out how Rachel Reeves intends to “cut debt”. He said: Currently we spend £1 in every £10 of taxpayer money on the interest of our national debt. That money should be going to our schools, hospitals, police and armed forces. That is why we are set to deliver the largest primary deficit reduction in both the G7 and G20 over the next five years – to get borrowing costs down. At the budget next week, the chancellor will set out how we will take the fair choices to deliver on the public’s priorities to cut NHS waiting lists, cut debt and cut the cost of living. His comments came as official figures, released on Friday, showed that UK government borrowing stood at a higher-than-expected £17.4bn last month, marking the third highest level for October since records began. The Office for National Statistics (ONS) said borrowing was £1.8bn less than in October last year. The figure was more than the £15bn expected by most economists and higher than the £14.4bn forecast by the UK’s independent fiscal watchdog, the Office for Budget Responsibility (OBR). Borrowing for the financial year to date was £116.8bn, which was £9bn higher than the same period a year ago. Shadow chancellor Mel Stride said: Borrowing so far this year has been the highest on record outside the pandemic. If Labour had any backbone, they would control spending to avoid tax rises next week. He said the Tories had a “clear plan to control spending, live within our means, and reduce taxes”. Responding to the latest ONS government borrowing statistics, Liberal Democrat Treasury spokesperson Daisy Cooper said: This is just the latest reminder that the government is failing to turn things around – they lack any clear vision for our economy. At the budget we need a proper plan to kickstart growth, starting with a new UK-EU customs union. 9.21am GMT Starmer calls Farage ‘spineless’ over tackling racism in Reform party Keir Starmer has accused Nigel Farage of being “spineless” when it comes to tackling racism in his party after the Guardian revealed allegations he made xenophobic and antisemitic comments while he was at school. The prime minister said the Reform UK leader had “questions to answer” about the comments and chants alleged, which included songs about the Holocaust and accusations of bullying towards ethnic minority schoolboys. He added Farage had a “track record” when it came to racism, pointing to his failure to discipline his fellow Reform MP Sarah Pochin after she complained about the number of black and brown people she saw in adverts. Speaking to reporters on the way to the G20 summit in Johannesburg, Starmer said: He needs to explain the comments, or alleged comments that were made, and he needs to do that as soon as possible. He hasn’t got a good track record in relation to this because Sarah Pochin, his MP, made some clearly racist comments and Nigel Farage has done absolutely nothing about it. He added: The man is spineless. If that had been someone in my party, I’d have dealt with it straight away. He needs to explain the latest allegations, and whilst he’s at it, he needs to explain why he’s too spineless to take action in relation to what is obvious racism in the comments of his fellow MP. So far he’s said absolutely nothing about it. He’s got plenty to say on lots of things, apart from showing some leadership when it comes to racism. The prime minister’s words mark his strongest condemnation yet of the Reform leader since the Guardian revealed earlier this week multiple allegations of racist language and behaviour while at Dulwich College, the elite south London school he attended. Farage has denied the accusations, saying his school colleagues had misremembered events from 45 years ago. He added on Thursday night: For the weakest prime minister in living memory to call me spineless is utterly ludicrous. In response to Pochin’s conduct, Farage has called the comments “ugly” but not racist and has failed to take any disciplinary action against her. Related: Starmer calls Farage ‘spineless’ over tackling racism in Reform party 9.12am GMT On the topic of energy bills, energy consumers minister Martin McCluskey said today: We know that energy bills remain too high. That is why we are taking immediate action, with millions more families receiving £150 off their bills through the expanded warm home discount scheme this winter. We are taking the long-term action needed to bring down bills for good with the government’s clean power mission. We are also delivering our new golden age of nuclear, with cheaper, clean electricity to power millions of homes, kickstart economic growth and create thousands of jobs. However, shadow energy secretary Claire Coutinho disagreed. According to the PA news agency, she said: Ed Miliband promised to cut everyone’s energy bills by £300 but more and more experts are sounding the alarm that his plans will lock us into paying higher bills for decades. Despite gas prices falling, independent experts, energy suppliers and academics say it’s the extra costs of Ed’s net zero targets that are putting upward pressure on bills. This week we had a report that green levies on bills will soar by another £260 by 2030. We simply cannot afford this – cheap energy has to come first. Tim Jarvis, director general of markets for Ofgem, said: While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets. The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy. While wholesale energy costs are stabilising, they still make up the largest portion of our bills which leaves us open to volatile prices. 9.01am GMT Households in Great Britain face surprise rise in energy bills from January Energy bills will rise for millions of households in Great Britain from January, after the industry regulator announced a surprise increase in gas and electricity costs. The energy regulator, Ofgem, said on Friday that the quarterly price cap covering January to March will rise by 0.2% for the average annual dual fuel energy bill to £1,758, from £1,755 in the current quarter. Ofgem said, when adjusting for inflation, the cap is 2%, or £37, lower than the same period in 2025. The change in the cap – which dictates the maximum that suppliers can charge their 29 million household customers for each unit of gas and electricity – amounts to an increase of 28p a month for an average household. Tim Jarvis, the director general for markets at Ofgem, said: While energy prices have fallen in real terms over the past two years, we know people may not be feeling it in their pockets. The price cap helps protect households from overpaying for energy. But it’s only a safety net and there are practical ways that customers can pay less for their energy. Bills for this winter are expected to remain about 50% higher than they were before the invasion of Ukraine triggered a rise in energy market prices that spurred the cost of living crisis. The unexpected increase comes after experts at Cornwall Insight had said they expected prices to fall by 1% because of lower wholesale energy prices. Ofgem said wholesale prices were currently stable and had fallen by 4% over the past three months, but that conditions remained “volatile”. It said that the cap had risen after a change in its calculations for an average bill based on customer usage, and “temporary” increases to costs linked to the warm home discount scheme. Related: Households in Great Britain face surprise rise in energy bills from January 8.45am GMT Starmer says he will 'robustly' protect UK's national insterests amid China trip rumours Keir Starmer insisted he would “robustly” protect the UK’s national interests in response to speculation he will visit China early next year and the country’s controversial embassy in London will be approved, reports the PA news agency. The prime minister said that no visit to China had yet been confirmed, while officials refused to comment on speculation about the planned embassy. But Starmer defended his approach to dealing with Xi Jinping’s country, which was to “cooperate where we can and challenge where we must, particularly on national security”. The decision on the embassy is due next month. But as the Guardian reported yesterday, MI5 officers told the House of Commons speaker at a private meeting that they can tackle the risks of a proposed Chinese super-embassy in London, opening the door to its approval. The Guardian understands that in a meeting held with Lindsay Hoyle in the summer, senior figures from the Security Service indicated they were “very relaxed” about the prospect of a 20,000 sq metre embassy being constructed at Royal Mint Court near Tower Bridge. It is considered that the espionage risks stemming from the large outpost can be managed. Starmer is at the G20 summit in South Africa, where China will be represented by premier Li Qiang. Asked if he would meet the Chinese premier during the summit, Starmer said: The meetings I’m having at the G20 aren’t confirmed yet. Nor is any visit confirmed yet. Our approach is the same approach as we’ve always taken, which is cooperate where we can and challenge where we must, particularly on national security. You saw that this week, in relation to espionage, we had a statement in the house setting out the action the government is taking along with MI5 because we will always robustly protect our interests. Critics of China fear the proposed new embassy, on a huge site close to the City of London and crucial data cables, will be used as a base for espionage. A decision on whether to approve it will be made by Steve Reed’s Ministry of Housing, Communities and Local Government after a quasi-judicial process expected to end on 10 December. Approval of the embassy would remove one of the diplomatic barriers ahead of the long-expected visit by Starmer to China as he seeks to build business ties with the world’s second-largest economy. Updated at 10.00am GMT 8.29am GMT Agenda of the day Here is the agenda for the day, according to the PA news agency: Friday: Keir Starmer has arrived in Johannesburg for the G20 summit in South Africa. The pime minister is expected to have bilats at 9.20am before meeting business leaders and visiting a train depot at 11.55am. 10am: The third reading of the animal welfare (import of dogs, cats and ferrets) bill will take place in the House of Lords. It is also the second day of the committee stage in the chamber for the assisted dying bill. 3.30pm: Starmer will co-host the Global Fund Summit with South Africa president Cyril Ramaphosa. Liz Kendall is on morning media round for the government, while shadow chancellor of the duchy of Lancaster Alex Burghart is on for the Conservatives. 8.18am GMT National security 'will always come first', says cabinet minister amid reports government could approve new Chinese embassy Good morning and welcome to Friday’s UK politics blog. National security “will always come first”, science secretary Liz Kendall said this morning amid reports the government could approve a new Chinese embassy in London. Kendall declined to comment directly on the reports, saying decisions on the embassy “will be taken through the proper process”. But she told Sky News: We are clear-eyed about our relationship with China and national security will always come first. That is absolutely non-negotiable. But where we can safely work with China, whether that’s on the economy or areas like research, that’s what we’ll do, because we want to get the best outcome for the British public. Asked about reports that Keir Starmer could visit China next year, she said: I don’t know about the prime minister’s diary plans for the new year, but what I do know is that he takes all of those issues extremely seriously. In other news, the UK government borrowed more than expected in October, official figures show, in the final snapshot of the public finances before Rachel Reeves’s crunch budget. The Office for National Statistics said the government borrowed £17.4bn last month. That was lower than the same month last year, but still marked the third highest October deficit in the public finances on record. It is also higher than the £15bn City economists had forecast. Speaking on the morning media round, Treasury chief secretary James Murray said next week’s budget would set out how Reeves intends to “cut debt”, saying that money spent on national debt should instead be going to “our schools, hospitals, police and armed forces”. Meanwhile, household energy bills are to rise by 0.2% from 1 January after Ofgem increased its next price cap. The regulator said energy bills will rise by about 28p a month for the average dual-fuel household in England, Scotland and Wales. Responding to the news, shadow energy secretary Claire Coutinho criticised Ed Miliband, claiming that “his plans will lock us into paying higher bills for decades”. Coutinho said: Ed Miliband promised to cut everyone’s energy bills by £300 but more and more experts are sounding the alarm that his plans will lock us into paying higher bills for decades. Despite gas prices falling, independent experts, energy suppliers and academics say it’s the extra costs of Ed’s net zero targets that are putting upward pressure on bills. This week we had a report that green levies on bills will soar by another £260 by 2030. We simply cannot afford this – cheap energy has to come first. I’ll bring you updates on all of the above and more as they come in. But first, here are some other developments: Keir Starmer has defended his decision to travel to South Africa for the G20 summit days before the budget and despite the planned absence of Donald Trump. The prime minister arrived in South Africa on Friday morning for two days of summit discussions and bilateral talks on topics including sustainability and economic growth. Starmer has accused Nigel Farage of being “spineless” when it comes to tackling racism in his party after the Guardian revealed allegations he made xenophobic and antisemitic comments while he was at school. The prime minister said the Reform UK leader had “questions to answer” about the comments and chants alleged, which included songs about the Holocaust and accusations of bullying towards ethnic minority schoolboys. The UK’s response to Covid was “too little, too late”, a damning official report into the handling of the pandemic has concluded, saying the introduction of a lockdown even a week earlier than happened could have saved more than 20,000 lives. In a written parliamentary statement, Starmer addressed the failings identified in the report of the previous government. Rachel Reeves has been urged by 40 Labour MPs to drop plans to fund NHS buildings with private finance initiatives (PFI) that would saddle the health service with debt. The Labour MPs, including Cat Eccles, Clive Lewis and Rebecca Long-Bailey, pressed the chancellor to commit to investment in the NHS without the use of private capital and warned that a return to the New Labour era of private funding for public projects would be damaging for trust in the government. The Liberal Democrats are forcing a vote in parliament on creating a new customs union to put pressure on Labour MPs to take a more pro-EU stance. Ed Davey’s party is writing to all Labour MPs urging them to back a new bill in favour of a customs union with the EU, believing this is the best way to boost growth and raise revenue, rather than tax rises. Updated at 8.30am GMT