Politics Live 4 June: Royal Mail sale and spending cuts

Summary

Chancellor George Osborne announces sale of remaining 30% of government stake in Royal Mail
Ed Miliband takes part in Commons debate on economy - his first speech since the election
Culture Secretary John Whittingdale says there could be good case for re-running World Cup bidding
No 10 says David Cameron to write to IPSA urging a rethink on plans for 10% pay rise for MPs
Two MPs make legal challenge to emergency surveillance law
Ex-German foreign minister warns UK not to be too sure of German support in EU reform

Live Reporting

Nick Eardley and Alex Hunt

Hiding the detail?published at 16.06
Chris Leslie, the shadow chancellor, has responded to George Osborne's announcement that the last of Royal Mail will be sold off and departmental spending cut.
Quote Message
Nobody disagrees with sensible efficiencies because spending does need to fall in unprotected areas, but why is the chancellor hiding the detail? George Osborne needs to spell out urgently who is paying the price in this chaotic process. This is a shambolic approach to planning public services, ripping up his own 'long-term plan' set out just weeks ago in the March Budget."
Quote Message
The Tories' botched privatisation of Royal Mail in the last Parliament short-changed taxpayers by hundreds of millions of pounds. The government now needs to explain how it has learned the lessons of last time so that the same mistakes aren't simply repeated."
'Only candidate not from the north or London'published at 16.04
The Daily Politics
Labour MP Ben Bradshaw has been explaining his bid for deputy leadership of his party.
He told Jo Coburn that he had tripled his majority “in the kind of seat that Labour needs to win back if we have any hope of forming a government again”.
The ex-culture secretary said he offered an “open and inclusive politics” and he was the only candidate applying for a job in the top team that was not from London or the north of England.
The Daily Politics aims to talk to the candidates in the deputy leadership contest, but not all seven of those declared so far will get the 34 backers needed to make it to the ballot paper. Watch the interview.
Obedient servant?published at 16.00
Was Andy Burnman lavishing praise on Prince Charles when he signed a reply to the royal with: "I have the honour to remain, sir, your royal highness' most humble and obedient servant"?
The New Stateman thinks the Labour leadership candidate might have just been following protocol, external .
The Treasury's language problempublished at 15.59
Chris Cook
Newsnight Policy Editor
Chancellor George Osborne has announced a further £4.5bn of "savings", this year. Some of this is reductions in spending, some is recognition that some departments are undershooting their spending limits and some comes from asset sales - notably of the government's remaining £1.5bn stake in Royal Mail.
I'd dispute that some of these things really are "savings" - particularly the asset sales, so there has been some slightly tricksy use of language today by the Treasury.
Read the full post on Newsnight Live.
'Government shouldn't be making fast buck'published at 15.52
Labour London mayoral hopeful Sadiq Khan has responded to the chancellor's announcement that the government will sell-off of land around the King's Cross area of central London with the aim of raising more than £345m.
Quote Message
London is facing a chronic housing crisis, with land being bought and sold at a premium. The chancellor and the government should not be making a fast buck out of land they own but handing this over to the people of London so we can build affordable housing to buy and rent for future generations - anything else will be a betrayal of Londoners."
'Worst yet to come'published at 15.30
BBC News Channel
Individuals are paying the price of spending cuts in local government, says the LGA's David Sparks. If you go to care homes, he tell BBC News, people may wait longer, while others will be worrying about whether their local library or leisure centres are going to close. Individuals do pay a price and "the worst is yet to come", he says.
'New war on local government'published at 15.29
BBC News Channel
Local authorities throughout the country have already set their budgets for this year and any cuts they would have to accommodate "totally upsets the financial plans for the efficient running of local government", says David Sparks from the Local Government Association.
Today's announcement "does amount to a new shot in a new war on local government expenditure".
'Ideological obsession'published at 15.22
Scottish finance secretary John Swinney has claimed today's spending announcements will mean a cut of £170m to Scotland's budget.
Quote Message
This cut of around £170m to the Scottish budget this year is completely and utterly unacceptable. The Scottish Parliament has already agreed our budget for this year and that should be respected, not slashed as part of George Osborne and David Cameron’s ideological obsession with austerity."
'Lessons learned'?published at 15:20 British Summer Time 4 June 2015
Shadow business secretary tweets...
'Humble and obedient servant'published at 15:15 British Summer Time 4 June 2015
From Prince Charles' letters to ministers...
Grayling letter on MPs' paypublished at 15.12
Downing Street has published the text of a letter sent to IPSA - the independent watchdog that sets MPs' salaries - by Chris Grayling, leader of the Commons.
Quote Message
A comprehensive response to your original consultation on the issue of MPs' pay was submitted by the coalition government during the last Parliament. The government opposed the suggestion that there should be a pay rise of this nature at that time, and the view of the government remains that a pay rise of this nature at this time is not appropriate."
Defending spendingpublished at 15:10 British Summer Time 4 June 2015
BBC correspondent tweets...
MPs' paypublished at 14:55
BBC News Channel
John Mann says the only option available to MPs who do not agree with their recommended pay rise is to give the money to charity, predicting more and more will announce that is their plan.
He says members of parliament should get the same pay rises as public service workers: "Whatever's good enough for everybody else, no more, no less, should be good enough for MPs".
'Give up pay rise', Church tells MPspublished at 14:53
Image source, PA
Singer Charlotte Church has waded in to the debate over MPs' pay. She said the planned 10% rise was "ridiculous" and "one rule for them, another rule for us".
The celebrity said MPs should give it up: "Put it back in guys, you'll be alright."
'Royal Mail name will have to go'published at 14:50
BBC News Channel
Labour MP John Mann says the Royal Mail brand will have to be ditched once the government sells its remaining stake.You can't have royal endorsement of a privately owned service, he tells BBC News.
There are many things the government could sell off, starting with some of the big buildings in Whitehall, to raise funds, he adds.
Prince Charles letters publishedpublished at 14:48
Image source, Getty Images
A further batch of correspondence from Prince Charles to government ministers has been published, external. Trawling through the contents of the letters, BBC correspondent Nick Higham says they relate to 2007 and 2008. He says the prince does some "fairly gentle lobbying" and pushes things "dear to his heart", such as the environment, architecture and housing.
Most of the letters are "fairy low key and not especially disturbing", but "what disturbs many people is he should be engaged in this kind of correspondence generally", our correspondent adds.
'Another war on local government'published at 14:44
The World at One
BBC Radio 4
The chairman of the Local Government Association, David Sparks, has said the new spending cuts announced by George Osborne amounted to "an opening shot in another war on local government". He warned it would hit local services, such as initiatives to ease pressure on the NHS by keeping people out of hospitals.
"The announcement in Parliament of a 5% cut, when it is translated into the real world of local government, is a 7% cut in real terms. And it is also in addition to the 40% cut we have had over the last five years," he told BBC Radio 4's World at One programme earlier.
£3bn cuts 'useful downpayment'published at 14:30
Institute for Fiscal Studies director Paul Johnson says £3bn worth of in-year cuts announced by George Osborne are a "useful downpayment" but "big difficult decisions" are still required.
The chancellor has outlined plans to cut Whitehall spending through efficiency savings, underspending and selling off assets. He also plans to raise £1.5bn by selling off the government's remaining stake in Royal Mail.
Timing of share sell-offpublished at 14:13
There's no clear date on when the remaining 30% of shares will be sold. The Treasury said it could be later this year but sources left plenty of wriggle room, saying they would be completed before the next election, with the timing depending on market conditions and the "appetite" for shares.
Royal Mail savingspublished at 14:11
Norman Smith
Assistant political editor
Treasury sources say the £3 billion Whitehall savings unveiled by the Chancellor today will not be used to reduce planned benefit cuts. It's understood Mr Osborne will still seek £12bn of welfare cuts over the next two years.
There has been growing uncertainty over how such a level of cuts will be achieved - after the Prime Minister ruled out cuts to Child Benefit. However Treasury sources insist Mr Osborne will not use the money re-couped from Government's departments to offset the level of benefit cuts.
They say the £3bn forms part of the £13bn of Whitehall savings being sought by the Chancellor.