Tories say they are ready to take action to oust John Bercow

Commons Speaker could face no confidence motion over bullying allegations, which may win support of some Labour MPs

The Speaker, John Bercow, is expected to face a motion of no confidence in the Commons on Monday in the wake of allegations that he bullied a member of parliamentary staff.

The Conservative MP Andrew Bridgen, a longtime critic of Bercow, said that either he or another MP would put down an early day motion (EDM) expressing no confidence in the speaker. While an EDM is a formal motion for debate, very few are actually discussed. However, MPs can put their names to them as a way of expressing support for a particular cause.

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Diane Abbott calls for fairer immigration system for families

Diane Abbott, the shadow home secretary, is to announce a Labour policy pledge on Wednesday to end “family break-up through the immigration system”.

Abbott is due to use her speech to outline the “fair and reasonable values” upon which Labour will base its immigration policy, a day before the quarterly publication of the net migration figures.

The migration data are expected to show growing evidence of a “Brexodus” with fewer European Union nationals coming to live in Britain and more leaving the country.

Abbott will renew Labour’s commitment at the last general election to scrap the government’s “false and unworkable net migration target” of bringing levels down to below 100,000 a year.

She is to highlight the fact that Theresa May’s target, and the hostile environment measures put in place that have so far failed to achieve it, are “leading to the scandalous situation where we are turning away doctors, even though there is a severe shortage of trained personnel in the NHS”.

The new commitment to ending family break-up in the immigration system will be explained, Abbott saying: “We will allow the carers or parents of admitted child refugees to come here. We will also end the practice of deporting the children, currently without entitlement to be here, once they turn 18, even when their parents are entitled to be here.”

It is “neither fair nor reasonable to break up families” in this way, according to Abbott. She is also to promise to use the speech to identify a large number of other current policies that do not comply with Labour’s “fair and reasonable values” and which will be altered or discontinued.

In recent weeks Abbott has been arguing that the immigration system is broken, not because it is not “tough” enough but because it lacks humanity and is based on meaningless targets rather than the priorities of jobs, growth and prosperity.

She has also sharply criticised the use of immigration detention without a time limit, promising that Labour will deal with all cases promptly and efficiently, and allow those who are entitled to stay to do so, and to deport those who are not.

Abbott’s intervention comes after the home secretary, Amber Rudd, confirmed that the long delayed government white paper on post-Brexit immigration had been postponed again and would be unlikely to appear before the autumn.

Private water payouts are a public scandal, says Labour

John McDonnell promises renationalisation of water, energy and rail under Labour

John McDonnell






John McDonnell has called the shareholder payouts of water companies a ‘scandal’.
Photograph: James McCauley/Rex/Shutterstock

Labour launched a full-frontal attack on the privatised water industry last night, accusing companies of paying out the “scandalous” sum of £13.5bn in dividends to shareholders since 2010, while claiming huge tax breaks and forcing up prices for millions of customers.

The assault by shadow chancellor John McDonnell came as he pledged total, “permanent” and cost-free renationalisation of water, energy and rail if Labour won power at the next election. The three privatisations in the 1980s and 1990s became hallmarks of the Tory governments of Margaret Thatcher and John Major.

The dramatic intervention – which stunned the companies involved – was the strongest denunciation yet by Jeremy Corbyn’s Labour of the privatisation programme that has become part of the British political landscape of the last 40 years.

The Conservative party and the Confederation of British Industry both condemned McDonnell’s comments. The CBI said Labour’s renationalisation agenda would “wind the clock back on our economy” while chief secretary to the Treasury Liz Truss warned that placing politicians in charge of public utilities “didn’t work last time and won’t work this time”.

McDonnell told the Observer that water companies could not even claim to offer choice to customers but instead operated regional monopolies, and were therefore able to increase prices without the risk of losing out to competitors, as well as “load up debt” while paying out huge dividends to shareholders.

“It is a national scandal that since 2010 these companies have paid billions to their shareholders, almost all their profits, whilst receiving more in tax credits than they paid in tax,” he said. “These companies operate regional monopolies which have profited at the expense of consumers who have no choice in who supplies their water.

“The next Labour government will call an end to the privatisation of our public sector, and call time on the water companies, who have a stranglehold over working households. Instead, Labour will replace this dysfunctional system with a network of regional, publicly owned water companies.”

Citing figures from the National Audit Office, the shadow chancellor said water bills had risen by 40% in real terms since privatisation of the industry in 1989. In 2016-17, the forecast average for water bills was £389 per household. McDonnell claimed that in 2017, privatised water companies paid out a total £1.6bn to their shareholders. Since 2010, the total was £13.5bn.

Michael Roberts, the chief executive of Water UK, which represents private water companies, said McDonnell was completely mistaken: “It’s wrong for Labour to suggest that our water system is broken. Water companies secure capital provided by lenders and shareholders, who need water companies to make a return in order to finance significant improvements to the industry.

“Under public ownership, the water sector in England was starved of cash and standards were poor. Private companies have instead invested heavily to reduce leakage, improve drinking water quality, and protect the environment – and they continue to invest £8 billion each year in even better services. In real terms, bills are roughly where they were 20 years ago and will be falling over the next few years.”

Meanwhile, at a conference on alternative models of ownership in London, Corbyn backed the nationalisation of Britain’s energy system as a way to tackle climate change. He said that “the challenge of climate change and the threat of climate catastrophe requires us to be at least as radical” as the 1945 Labour government that created the National Health Service. Corbyn said that Labour would back a “great wave of change across the world in favour of public, democratic ownership and control of our services and utilities.

“We can put Britain at the forefront of the wave of change across the world in favour of public, democratic ownership and control of our services and utilities,” he said.

“From India to Canada, countries across the world are waking up to the fact that privatisation has failed, and taking back control of their public services,” he added.

The water industry was privatised in 1989, transferring the assets and personnel of the 10 water authorities into limited companies. Capital was raised by floating the companies on the stock exchange, accompanied by a one-off injection of public capital, the write-off of government debt and the provision of capital tax allowances.

Corbyn convenes ‘away day’ to discuss Brexit policy shift

Labour leader under pressure to back permanent membership of customs union

Jeremy Corbyn has called senior figures to an ‘away day’ to discuss a possible change of direction on Brexit.






Jeremy Corbyn has called senior figures to an ‘away day’ to discuss a possible change of direction on Brexit.
Photograph: Facundo Arrizabalaga/EPA

Jeremy Corbyn has called key members of his shadow cabinet to an “away day” to re-examine the party’s policy and strategy on Brexit amid growing frustration in Labour ranks that it is failing to exploit mounting Tory turmoil over Europe.

Party sources confirmed to the Observer that the meeting, scheduled for early February, would look at adapting and developing Labour’s approach during “phase two” of the Brexit process.

The gathering – which will be seen as a response to unrest and the threat of rebellions by dozens of Labour MPs – will be held at a location “away from Westminster”, and will involve senior shadow cabinet members in policy areas most affected by the UK’s departure from the EU.

The news suggests Labour may soon announce a major shift in policy that would see it back permanent membership of some form of customs union with the EU after Brexit – opening a potentially decisive dividing line with Theresa’s May’s increasingly fractured government.

A senior figure aware of the meeting said: “There are several among those who will attend who want the party to move on the single market and customs union. But Jeremy is a lifelong eurosceptic and there is still opposition to doing so.

“The greatest pressure for change is from those who insist we must back permanent membership of a customs union with the EU after Brexit, not just a fudge position of backing it during a transition and leaving open what happens after, which we have at present.”

Those who have been asked to attend are understood to include members of the shadow cabinet Brexit subcommittee. They include the shadow chancellor John McDonnell, shadow Brexit secretary Keir Starmer, the shadow home secretary Emily Thornberry, and shadow home secretary Diane Abbott. Shadow ministers responsible for Northern Ireland, Scotland and Wales will also attend.

With Theresa May’s government increasingly split over Brexit, and the EU withdrawal bill heading into the House of Lords on Tuesday, where it is expected to be savaged by pro-Remain peers of all parties as well as crossbenchers, a growing number of Labour MPs and peers are pressing the leadership to open up clearer dividing lines with the Tories.

Trouble is also brewing for the Labour leadership on other Brexit bills, including one covering trade, when legislation returns to the Commons next month. Several amendments backing customs union and single membership are expected to secure the backing of at least 60 Labour MPs. Pro-Remain Labour MP Chris Leslie said: “There is lot of pressure. The time for a fudged approach is over. Unless we change in the next few weeks we will find it is too late. We will end up with a hard Brexit of the kind Jacob Rees-Mogg is demanding.”

An Opinium poll for the Observer last weekend found that potential Labour supporters now back permanent membership of the single market and customs union by a margin of more than four to one.

Labour, Tory and Liberal Democrat peers, as well some crossbenchers, believe that the government could be defeated on a series of amendments that will be tabled by pro-Remain peers on the customs union and single market if Labour changes position to back permanent membership.

While a move to back permanent membership of some form of customs union now looks the most likely shift, Labour campaigners for Corbyn to endorse UK inclusion in the single market believe he remains opposed.

Last summer Labour announced it would support the UK staying a full member of both the single market and customs union during a post-Brexit transition deal of two to four years. This would mean continuing to accept EU rules on free movement of people and workers, being subject to European court of justice rulings, and paying into the EU budget during the transition.

After the transition was over Labour said it would try to negotiate as close an economic and trading relationship as possible with the EU that would deliver the “exact same benefits” as the UK currently enjoys. Permanent membership of the single market and a customs union was not ruled out.

Theresa May then moved Tory policy in a similar direction in her Florence speech in September when she effectively conceded that the UK would remain inside the EU’s economic union, accepting EU rules including free movement in return, during a two-year transition. As result the Tory and Labour positions have become closely aligned.