Cost of living payments: Rishi Sunak says Liz Truss’s tax-cut plans would leave ‘millions at risk of destitution’ & More Latest News Here – Up Jobs

Asked where Labour leader Sir Keir Starmer currently is as the cost-of-living crisis continues, shadow business secretary Jonathan Reynolds told LBC: “He is working like he does every day on the job. I honestly cannot fault the man’s work ethic.”

Pressed about whether the opposition leader was on annual leave, Mr Reynolds added: “I think he is spending some time with his family and that is the right thing to do, but I cannot fault the man’s work ethic, he has been relentless since he became leader of the opposition.”

Mr Reynolds also said Labour was “getting the detail” of its plans ready to intervene on rising energy bills, adding it had only had success with calling for a windfall tax because its proposals were detailed and costed.

Commenting on the gross domestic product (GDP) figures that showed a 0.1% contraction in the second quarter of the year, Office for National Statistics director of economic statistics Darren Morgan said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.

“Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.

“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee.”

Chancellor of the Exchequer Nadhim Zahawi said: “Our economy showed incredible resilience following the pandemic and I am confident we can pull through these global challenges again.

“I know that times are tough and people will be concerned about rising prices and slowing growth, and that’s why I’m determined to work with the Bank of England to get inflation under control and grow the economy.

“The Government is providing billions of pounds of help for households with rising costs, including £1,200 for eight million of the most vulnerable households.”

The UK’s economy contracted in the last three months, new data show, further stoking fears that a recession might be around the corner.

Gross domestic product (GDP) fell by 0.1% during the three months to the end of June, the Office for National Statistics (ONS) said.

It is a big step down from the first quarter of the year, when GDP rose 0.8%.

The service sector was particularly badly hit, falling by 0.4% over the quarter, ONS experts said. A large part of this was in health and social work, and came as less money was spent on the fight against Covid-19.

GDP fell 0.6% in June, and the ONS revised its May estimate from growth of 0.5% to just 0.4%.

ONS director of economic statistics Darren Morgan said: “With May’s growth revised down a little and June showing a notable fall, overall the economy shrank slightly in the second quarter.

“Health was the biggest reason the economy contracted as both the test and trace and vaccine programmes were wound down, while many retailers also had a tough quarter.

“These were partially offset by growth in hotels, bars, hairdressers and outdoor events across the quarter, partly as a result of people celebrating the Platinum Jubilee.”

The Bank of England has warned that the UK might enter recession later this year.

This video explains what inflation is and its effect on economies:

Nicola Sturgeon has said Tory leadership frontrunner Liz Truss asked her about how to get into Vogue, writes Neil Pooran.

The first minister said Ms Truss “looked a little bit as if she’d swallowed a wasp” after Ms Sturgeon told her she had been in Vogue twice.

Boris Johnson has said he will continue to press the energy sector to “work on ways” to help ease the cost of living crisis – but announced no new government support after crunch talks.

Resisting pressure to act immediately, the outgoing prime minister said after a meeting with the electricity sector in Downing Street that it will be for his successor in No 10 to make “significant fiscal decisions”.

Tory leadership contender Liz Truss yesterday evening appeared to forget where she was, as she told the audience at Cheltenham hustings that they were in Derbyshire, writes Andrew Woodcock.

There was no response from the Tory members attending the event at the Gloucestershire town’s famous racecourse, and Ms Truss ploughed on with her comments without correcting herself.

A liveblog poll running during yesterday’s Cheltenham hustings hosted by The Telegraph saw Rishi Sunak get more votes than his contender Liz Truss, who is otherwise seen as leading the race.

The poll, only carried out on the website among readers visiting the live feed does not have a varied sample like surveys to represent the mood of the public but with over 70,000 votes, it was enough for supporters of the former chancellor to celebrate that he is still very much in the race.

Mel Stride, chair of the treasury select committee, declared quoting the poll results: “This race is only half way through, wide open and it is @RishiSunak who has the momentum.”

Speaking at the latest hustings in Cheltenham, former chancellor Rishi Sunak revealed the prime minister has been ignoring his calls since he resigned from cabinet.

Mr Sunak sparked Boris Johnson’s downfall by being one of the first ministers to abandon their post in early July, alongside former Health Secretary Sajid Javid.

Read what more the former chancellor said: