London Daily

Focus on the big picture.
Tuesday, Jun 23, 2026

Labour criticises chancellor’s trip to US for ‘chinwag’

Labour criticises chancellor’s trip to US for ‘chinwag’

Nadhim Zahawi to go on fact-finding trip to discuss measures on energy costs in what are likely to be his last days in post
Nadhim Zahawi will spend what are likely to be his final few days as chancellor in the US on a fact-finding trip to discuss measures to tackle soaring energy costs.

Zahawi, who took over as chancellor eight weeks ago and is likely to be replaced if, as widely expected, Liz Truss is unveiled as the next Conservative leader, will also discuss the Ukraine war and cooperation on financial services.

He said he wanted to “work closely with my allies on the common challenges we face to create a fairer and more resilient economy at home and abroad” during the visit to New York and then Washington DC.

However, Zahawi will at most be able to gather ideas for possible future policies to be potentially implemented by a new chancellor, widely tipped to be Kwasi Kwarteng, the business secretary, if Truss takes over from Boris Johnson.

The outcome of the Conservative leadership contest will be announced next Monday, with the winner expected to formally take over as prime minister a day later.

While Johnson has pledged not to take any major decisions that would tie the hands of his successor, the lack of action amid the leadership contest, during which the prime minister has taken two holidays, has led to criticism that ministers have gone missing before an imminent national crisis over energy bills.

Labour argued that Zahawi’s US visit would change little. James Murray, the shadow financial secretary to the Treasury, said: “Families across the country are desperately worried about the massive rise in energy bills that is on the way but we’re stuck with this do-nothing Tory government. Now we discover the chancellor is jetting off to an international chinwag.”

Labour is seeking to put pressure on Truss over what it says is an unclear and often contradictory set of proposals from her camp to tackle energy bills, which are due to rise by 80% in October, with another steep increase expected in January.

Truss has not ruled out direct help for households over energy bills but she has refused to set out what this might include, and has repeatedly stressed that her priority is tax cuts rather than what she has termed “handouts”.

She has committed to suspending green levies on energy bills and reversing the recent rise in national insurance, intended to finance the clearing of the post-Covid NHS backlog and to reform social care.

Over the weekend it was reported that she could also cut VAT by 5% or more as a way to save people money, or even cut income tax.

However, critics have pointed out that income tax or national insurance cuts would disproportionately benefit the better-paid and not assist those relying on pensions or benefits, while essentials such as food are zero-rated for VAT.

Paul Johnson, the director of the Institute for Fiscal Studies, said an approach based on tax cuts was simplistic and risked pushing up the cost of borrowing.

“You clearly can’t do all of this without completely crashing the public finances,” he told the Times. “This simplistic mantra that you cut taxes and the economy grows more, that you cut taxes when you have a big deficit and high inflation, and you don’t do it with any other part of the plan, is quite worrying.”

Pat McFadden, the shadow chief secretary to the Treasury, said the lack of clarity from Truss was causing extra worry for people.

“The more different ideas spill out of the Tory leadership contest, the clearer it becomes that neither candidate has a plan to deal with the cost of living crisis,” he said. “It is energy prices that are driving this crisis. It is energy prices that are driving people to despair as they worry how to make ends meet. This flip-flopping by Liz Truss, floating one policy idea after another, is causing the country unnecessary worry about their bills.”
Newsletter

Related Articles

0:00
0:00
Close
Taxpayer Support Grows for Higher Digital Levies on Multinational Tech Companies
Bank of England Signals Caution Over Inflation Despite Easing Energy Prices
Lloyds Banking Group Expands Artificial Intelligence Hiring Amid Sector-Wide Automation Shift
Film Producer Corporate Collapse Leaves Creditors Facing Unrecoverable Losses
UK Ten-Year Brexit Anniversary Highlights Ongoing Political and Economic Uncertainty
Nottingham Maternity Scandal Inquiry Reveals Systemic Failings in NHS Care
Met Office Heatwave Prompts Public Health Warnings Across United Kingdom
Concerns Rise Over Fiscal Stability as Political Uncertainty Weighs on UK Borrowing Costs
UK Taxpayers Back Higher Digital Taxes on Global Technology Firms, Survey Shows
Bank of England Holds Interest Rates Steady Amid Persistent Services Inflation
Reform UK and Opposition Leaders Call for General Election Following Starmer’s Departure
Ten Years After Brexit Referendum, UK Faces Ongoing Political Fragmentation and Economic Debate
Nottingham University Hospitals Maternity Inquiry Exposes Severe NHS Failures
Met Office Issues Heat Health Alerts as United Kingdom Faces Record-Breaking Temperatures
Andy Burnham Emerges as Front-Runner for Labour Leadership After Starmer’s Resignation
Keir Starmer Resigns as UK Enters New Phase of Political Leadership Transition
UK Expands Alcohol Ban Enforcement Using Tagging Technology Ahead of World Cup
UK Invests £50 Million in Critical Minerals Supply Chain Security
UK Appoints Special Envoy on Preventing Sexual Violence in Conflict
UK Introduces Fines for Landlords of Unsafe Rental Properties
Reform UK Leads Opinion Polls as Immigration Debate Reshapes UK Politics
Police Investigate Edinburgh Attacks as Potential Hate Crimes
King Charles to Publish Personal Tax and Royal Household Financial Records
Nottingham University Hospitals Maternity Inquiry Report Set for Publication
Heat-Health Alerts Issued Across London and Southern England Amid Rising Temperatures
UK Economy Shows Pressure From Middle East Conflict Despite Modest Growth
Brexit Anniversary Reignites Debate Over UK Economic and Political Direction
UK Parliament Continues Legislative Work Amid Leadership Transition
Financial Markets Hold Steady After UK Leadership Shake-Up
Andy Burnham Enters Labour Leadership Race With Strong Parliamentary Backing
Keir Starmer Resigns as UK Prime Minister After Two Years in Office
Reform UK MP Lee Anderson to Raise Pension Concerns Over British Coal Staff Superannuation Scheme
UK Parliament to Debate Newborn Screening for Spinal Muscular Atrophy Following Public Petition
Met Office Warns of Water Safety Risks During Heatwave as Temperatures Peak in England
Treasury Increases Mileage Allowance Payments for 2026–27 Tax Year to 55 Pence Per Mile
UK Government Raises Electricity Generator Levy to 55 Percent in New Revenue Measure
House of Lords Moves Financial Services and Markets Bill to Committee Stage Amid Regulatory Scrutiny
Westminster Hall to Debate Petition on Pro-Israel Influence in UK Politics
UK Parliament Prepares for Estimates Days Debates as Backbench Business Schedule Approved
Armed Forces Bill Nears Final Stages in UK House of Commons With Military Justice Reforms
Donald Trump Comments on UK Political Situation, Citing Immigration and Energy Policy Concerns
Andy Burnham By-Election Victory Fuels Speculation Over Potential Labour Leadership Contest
UK Economy Shows Resilience but Faces Headwinds from Middle East Tensions, UK Finance Says
UK Parliament Opens Week of Debates on Net Zero, Security and Armed Forces Reform
Met Office Issues Amber Extreme Heat Warning as Temperatures Expected to Reach 35C Across England and Wales
Prime Minister Keir Starmer Faces Mounting Leadership Pressure After Makerfield By-Election Defeat
London Hotel Wins World’s Best Afternoon Tea Award at International Hospitality Guide La Liste
Court of Appeal Rules in Favour of Competition and Markets Authority in Phenytoin Drug Case
Chichester Waste Site Suspended After Environment Agency Finds Serious Fire and Pollution Risks
UK Appoints Chris Elmore as Special Envoy on Preventing Sexual Violence in Conflict
×