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More rail strikes to take place in November after pay offer ‘U-turn’, RMT says | Business News

Rail workers’ union RMT has announced more strikes next month following what it said was a pay offer “U-turn” from Network Rail.

Three days of strike action are set to take place on 3, 5 and 7 November.

Negotiations had been under way between the union and the rail operator.

The RMT said there had been an agreement that Network Rail would commit to an improved offer on pay and work towards a negotiated settlement but the company “reneged on their promises of an improved pay offer and sought to impose job cuts, more unsocial hours and detrimental changes to rosters”.

The strikes are taking place as the rail company “attempted to impose drastic changes in working practices”.

The union said Network Rail wrote directly to staff to undermine talks and have tried to rehash a previously rejected deal.

RMT staff will also strike on 3 November in a separate dispute with London Underground and Overground networks (Arriva Rail London).

RMT General Secretary Mick Lynch said: “On the one hand they (Network Rail) were telling our negotiators that they were prepared to do a deal, while planning to torpedo negotiations by imposing unacceptable changes to our members’ terms and conditions.

“Our members are livid with these duplicitous tactics, and they will now respond in kind with sustained strike action.”

The latest announcement follows months of strike action from the union as they seek to halt redundancies and improve pay and conditions.

Network Rail has been contacted for comment.

Pound rebounds in early Asia trading, following Liz Truss U-turn and Jeremy Hunt appointment | Business News

The pound has edged a little higher against the dollar in early Asia trading, following PM Liz Truss’s partial reversal of her initial economic plan.

It had fallen to a record low against the dollar at the end of September, after the short-lived then chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.

Mr Kwarteng, who was sacked on Friday after just 38 days in the job, paid the price for a mini-budget that called into question the government’s economic credibility more widely as the cost of borrowing surged, leading to an unprecedented intervention by the Bank of England (BoE).

However, following the prime minister’s announcement on Friday that corporation tax would rise to 25% from April next year instead of keeping it at 19% as part of the initial mini-budget, sterling gained 0.6% to $1.1245 on Monday in trade in Asia.

Kwasi Kwarteng leaves Downing Street
Image:
Out the door went Kwasi Kwarteng

Mr Kwarteng’s replacement, former foreign and health secretary Jeremy Hunt, has promised to win back the confidence of the financial markets by fully accounting for the government’s tax and spending plans.

New Chancellor of the Exchequer Jeremy Hunt leaves 10 Downing Street
Image:
In came the new Chancellor of the Exchequer Jeremy Hunt

All eyes are now on how the UK government bond market will trade, after the BoE on Friday concluded its emergency gilt market support.

“If we do see a surge in gilt yields, then that would show that markets remain very sceptical about the debt sustainability
in the UK,” said Carol Kong, a currency strategist at Commonwealth Bank of Australia.

“I think sterling is likely to remain very volatile this week,” she added.

Read more:
Pound sinks to record low against the dollar – as PM and chancellor defend mini-budget
Bank of England ‘will not hesitate to change interest rates as necessary’ after pound’s fall

Can Truss remain PM?

The Conservative Party is now on its fifth chancellor in the past three years – Mr Hunt, Mr Kwarteng, Nadhim Zahawi, Rishi Sunak and Sajid Javid.

Mr Hunt is the seventh Tory chancellor in 12 years.

There is now a renewed focus on whether Ms Truss can remain in the job.

A Tory MP told Sky News: “The idea that the prime minister can just scapegoat her chancellor and move on is deluded.

“This is her vision. She signed off on every detail and she defended it.”

Chancellor Kwasi Kwarteng to return to London from Washington early as major mini-budget U-turn expected | UK News

Chancellor Kwasi Kwarteng has cut short his trip to the International Monetary Fund in Washington and is returning to the UK earlier than planned, as another major mini-budget U-turn is expected.

Mr Kwarteng was due to attend a final day of meetings at the IMF’s annual gathering today.

Instead, after a hasty briefing with journalists late on Thursday, he announced he would fly home overnight.

A source close to him dismissed suggestions that this represented a sign of panic.

Truss is out ‘and we have the numbers’, says Tory MP – politics latest

Pressed on why there was a need for a last-minute schedule change, a Treasury official insisted that it was for talks on “the medium-term fiscal plan”.

The chancellor had “a very constructive time, spoke to Janet Yellen (the US Treasury Secretary), spoke to Kristalina Georgieva, the head of the IMF… and it put everything in a global context… a global set of challenges…” according to the treasury official.

The chancellor’s team bristled at comparisons made to the Greek financial crisis of 2011 when the Greek finance minister had to rush home from an international meeting.

“That was completely different. A sovereign debt crisis and on a completely different scale to anything that’s happening in our markets,” a Treasury source said.

Pushing for an explanation for such an unusual change in scheduling, we were told: “Markets have been turbulent and [the chancellor] really really wants to be there engaging with colleagues, engaging with ministers…”

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Pressure builds on Kwarteng

On his return, the chancellor is likely to find a significant section of his mini-budget re-drawn following days of open revolt among Tory MPs and an expectation that another major U-turn is on the cards.

It comes amid speculation in Westminster about the fate of Mr Kwarteng, only a few weeks into the job, if his financial plans are scrapped in the coming days.

However, Mr Kwarteng has insisted that his position is safe, telling broadcasters: “I am not going anywhere.”

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PM’s key pledge could be next casualty

Meanwhile, mounting pressure has been placed on Prime Minister Liz Truss to reassure the UK’s financial markets and rescue her administration, with her key pledge to scrap the planned increase in corporation tax from 19% to 25% widely seen as a likely casualty.

Former home secretary Priti Patel became the latest senior Tory to suggest the government could be forced into another U-turn, telling Sky News “market forces” could make a reversal on corporation tax cuts unavoidable.

Downing Street has not denied the policy could be reversed, despite it being one of Ms Truss’s landmark promises.

Liz Truss extends poll lead over Rishi Sunak after public sector pay plan U-turn | Politics News

Liz Truss has extended her lead over Rishi Sunak among Tory members, according to a new poll, after the foreign secretary U-turned on a plan to link public sector pay to regional living costs.

On Monday night, the leadership race frontrunner said she would save £8.8bn by introducing regional pay boards instead of national ones to set salaries for civil servants, reflecting where they lived.

But experts warned that to reach the sum, the plan would have to branch out further than government departments, with the likes of teachers, nurses, and police officers also receiving lower pay than workers in the South.

It led to outrage from Conservative MPs, and by lunchtime today – less than 24 hours later – Ms Truss’ team had released a statement saying the policy would not be taken forward.

Politics Hub: Sunak allies attack Truss public sector pay plan

A statement insisted “current levels of public sector pay will absolutely be maintained”, adding: “Our hard-working frontline staff are the bedrock of society and there will be no proposal taken forward on regional pay boards for civil servants or public sector workers.”

Team Truss also claimed there had been a “wilful misrepresentation” of the policy, but former Tory whip Mark Harper said they should “stop blaming journalists” for reporting on the details in her own press release.

A Team Sunak source pointed to comparisons made between Ms Truss and former PM Margaret Thatcher, twisting her famous phrase for today’s events: “The lady is for turning.”

While the influential Tory mayor of the Tees Valley, Ben Houchen, told reporters the policy would be “a sure-fire way to lose the next general election”.

The first major error from Ms Truss’s campaign came as Mr Sunak battles to make up ground during what is a key week in the contest for the keys to No 10.

But the day ended on a high for Ms Truss following the publication of the latest YouGov poll of Conservative members, which shows she has extended her lead over Mr Sunak to 34 points in the Tory leadership race.

The survey, carried out for The Times, finds that 60% of party members are now saying they will vote for the foreign secretary to succeed Boris Johnson as prime minister.

This is compared to just 26% for former chancellor Mr Sunak.

Analysis: Sunak supporters will fear the game is up

Jon Craig - Chief political correspondent

Jon Craig

Chief political correspondent

@joncraig

After a day in which Liz Truss’ Tory leadership campaign took a battering over her regional pay blunder, suddenly it’s Rishi Sunak who’s on the ropes, according to a shock new poll.

What’s surprising is not just the massive lead the YouGov poll suggests Ms Truss now has over Mr Sunak, but the claim that almost nine in 10 Tory members have already made up their mind.

At 26%, the level of support for the former chancellor is dismal, and the 60% predicted to back the foreign secretary will calm nerves in her camp after her embarrassing public sector pay U-turn.

Although it’s only one poll and opinion polls are just a snapshot, YouGov’s findings suggest Ms Truss could be heading for a victory as decisive as Boris Johnson’s over Jeremy Hunt in 2019.

Then Mr Johnson polled 66.4% of the votes of party members and Mr Hunt 33.6%, a winning margin of nearly 33%, similar to the 34-point lead YouGov now gives Ms Truss over Mr Sunak.

The YouGov poll also suggests only 14% of party members are undecided or say they won’t vote, and it fiercely contradicts an earlier private poll suggesting the gap had narrowed to just five points.

YouGov’s last poll before this one was carried after the five rounds of voting by MPs, when Penny Mordaunt was eliminated, and suggested a 24-point lead for Ms Truss over Mr Sunak, by 62%-38%.

The apparent widening of the gap, in the week party members receive their ballot papers, will delight Truss supporters – and, no doubt, those of the ousted Mr Johnson who want to see Mr Sunak crushed.

But it is likely to plunge the Sunak camp into gloom, panic and despair and spread fears in his team that the game is up for the former chancellor, even before most Tory members cast their vote.

The poll, carried out over the last five days, shows that Ms Truss is now ahead of Mr Sunak among all age groups, across different parts of the country and with men and women.

The only category where he beats Ms Truss is among Tory Remain supporters.

The YouGov survey published today also found that almost nine in 10 Conservative members have now made up their minds how they will vote ahead of ballot papers going out this week.

But it will concern both potential next leaders that more than 50% of party members believed that whoever was elected to succeed Mr Johnson would lose the party its majority at the next election.

Just 19% of members thought Mr Sunak could lead the Tories to victory, while 39% thought Ms Truss could see off a challenge from Labour.

As the leadership race continues to heat up, candidates Mr Sunak and Ms Truss will once again face the cameras this week on Sky News.

Taking place on Thursday 4 August at 8pm at Sky Studios in west London, The Battle for Number 10, will see the candidates take part in back-to-back questioning from the live studio audience made up of Conservative Party members who remain largely undecided on who to vote for.

This will then be followed by an in-depth interview with Kay Burley.

The programme will be broadcast live for 90 minutes and for free on Sky News channel 501, on Freeview 233, on Sky Showcase channel 106, and across Sky News’ digital channels.