Politics latest: Sir Keir Starmer heads to Scotland to meet with devolved leaders - but Sue Gray will not attend despite new role (2024)

Baroness Ruth Davidson, a Conservative peer, has told the Electoral Dysfunction podcast she felt there could be another Tory leadership race in the next few years.

This would mean the party going through two leaders between general elections.

While this might seem outlandish, there is precedent in the recent past.

In 2001 Sir Iain Duncan Smith became leader of the Conservatives after Sir Tony Blair romped home to his second massive majority.

The Tories had floundered for five years under Lord William Hague, who stepped aside.

But Sir Iain's tenure was not a happy one, and during this time he had to deal with rebellious backbenchers and plotting against him.

And it soon became fatal - by 2003 the disquiet with Sir Iain reached fever pitch and a vote of no confidence was called.

Tory MPs voted by 90 votes to 75 to oust the Chingford MP, and he was replaced with Lord Michael Howard.

It would be another two years before the 2005 election - which Labour won as well.

This lesson shows that, whoever takes over from Rishi Sunak, will be in a precarious position if they do not turn the party's fortunes around.

By Paul Kelso, business correspondent

A return to growth of 0.2% in August after two months of flatlining is modest and confirms the anticipated slowdown in the second half of this year, but is welcome nonetheless largely by virtue of its timing.

The chancellor and prime minister are preparing to welcome several hundred international investors to an Investment Summit in London on Monday, an event that will bring together CEOs from private companies, investment houses and sovereign wealth funds for 48 hours of hard-sell on the virtues of the UK, lubricated by receptions and royalty.

The event is seen as vital because, if the new government is going to deliver on its promises to accelerate growth through an overhaul of the national infrastructure, the UK cannot do it alone. Foreign capital investment is crucial, so evidence there is life in the torpid economy is helpful, even if only at the margins.

Rachel Reeves acknowledged as much in her immediate response to the figures, notably welcoming growth without, as previously since entering Number 11, stressing the parlous state of the public finances she inherited.

Were gallows humour permitted at the Treasury, she might also argue that three weeks out her first Budget is already driving growth, thanks to attempts to avoid its consequences. The Office for National Statistics reports today that professional services, including accountancy, rose 4.3% in August.

On 30 October, Rachel Reeves will deliver the first Labour budget in more than a decade.

Kate Forbes, the deputy first minister of Scotland, has been speaking to Sky News about the position her government is taking - and their hopes for the fiscal event.

This comes as Sir Keir Starmer meets with the leaders of the devolved administrations today.

Ms Forbes points out that the UK government "abides within certain fiscal rules" - and that they were "set by the Conservatives".

There has been speculation Ms Reeves may change the rules in which she operates to allow for more borrowing to invest.

Ms Forbes says her party wants to "see if there's a way of prioritising the right kind of spend - which will accelerate growth in this country".

She says it will also help increase capacity in public services.

Asked if today's meeting with the prime minister is a gimmick, the senior SNP minister said they were "not characterising it as that".

But she says it "remains to be seen whether it will deliver change".

We've been hearing from Pat McFadden, the chancellor of the Duchy of Lancaster, this morning.

He was asked about the recent backroom reshuffle of Downing Street - with Sue Gray leaving her job as chief of staff to the prime minister.

Since being moved out of this role last Sunday, Ms Gray has been out of the limelight - and she is not in Scotland today for a meeting of devolved leaders, despite this falling within the purview of her new job.

It is not clear when she will take up the role of special envoy to for the nations and regions.

Mr McFadden tells Sky News: "Look Sue's been through quite a lot in the last few weeks.

"I worked with her, she's a great colleague, she's taking a short break now - and I think we should allow her the time and privacy to do that."

The UK's economy grew by 0.2% in August, according to official figures.

The slight rise in gross domestic product - which is intended as a measurement of a country's total output - comes after two successive months of stagnation.

The figures from the Office for National Statistics (ONS) were in line with the forecasts of economists polled by the Reuters news agency, who predicted growth would be 0.2%.

Liz McKeown, from the ONS, said: "All main sectors of the economy grew in August, but the broader picture is one of slowing growth in recent months, compared to the first half of the year."

Rachel Reeves, the chancellor, who is preparing to deliver her first budget at the end of the month, said: "It's welcome news that growth has returned to the economy. Growing the economy is the number one priority of this government so we can fix the NHS, rebuild Britain, and make working people better off.

"While change will not happen overnight, we are not wasting any time on delivering on the promise of change. Next week hundreds of the world's biggest businesses will come to Britain as we deliver on our promise to bring investment, growth, and jobs back to every part of the country."

Conservative peer Ruth Davidson has said she thinks there is a "good chance" there will be another Tory leadership election in two years - despite the fact one is currently under way.

Baroness Davidson told Beth Rigby on the Electoral Dysfunction podcast that the recent Conservative Party conference showed that both Kemi Badenoch and Robert Jenrick, who have made the final two, can "make mistakes".

The former leader of the Scottish Tories also revealed she voted for James Cleverly, the former home secretary and foreign secretary who was knocked out of the race on Wednesday amid accusations of vote lending.

Baroness Davidson said she thought it was likely that Mr Cleverly would receive a job in the shadow cabinet.

Listen to the full podcast at the top of the page

By Alexandra Rogers, political reporter

When Morgan McSweeney met special advisers on Tuesday evening, he is said to have made a "pitch perfect" speech that rallied the troops after a bruising few weeks.

A source in a government department said the chatter after the meeting was all "about Morgan's appearance".

"He acknowledged that being a spad has been more like a nightmare than a dream job. It seemed to go down well but of course they want action, not just words."

The unhappiness in Labour ranks among special advisers - political appointees who support ministers - over their pay was just one of the rows that culminated in the downfall of Sue Gray, the former partygate investigator whom Sir Keir invested so much personal stock in hiring.

She now finds herself as Sir Keir's special envoy for the nations and regions, where she is not only expected to lose the £170,000 pay packet she was on - and which was leaked to the media in a successful attempt to damage her politically - but the unparalleled access she enjoyed to the prime minister.

For some, Mr McSweeney's reappointment as chief of staff is the precise rescue remedy the party needed after its first 100 days in power were marred by the row over freebies and donations, sending Sir Keir's personal ratings plummeting.

Welcome to another day in Westminster.

It's Friday, and there's limited political action in the capital this morning.

Sir Keir Starmer is out and about, so let's round up what's going on.

• The prime minister is in Scotland for a meeting of the council of nations;
• This consists of the leaders of the devolved nations in the United Kingdom;
• They will discuss spending plans and growth in the UK;
• Despite being newly appointed - although some say demoted - to a liaison role with the nations, Sir Keir's ex-chief of staff Sue Gray is not in attendance;
  
• The Chancellor of the Duchy of Lancaster Pat McFadden is speaking to us just after 7am.

• Back in Westminster, Ms Gray's successor and supposed rival Morgan McSweeney is finishing up his first week running Number 10's back office;
• Sky political reporter Alex Rogers has spoken to those behind the scenes about the new-look operation in Downing Street.

• The Tory leadership race is still rumbling on in the background;
• But there is speculation that whoever wins - Robert Jenrick or Kemi Badenoch - might not be long for the role;
• Baroness Ruth Davidson, a Tory peer, told the Electoral Dysfunction podcast there's a "good chance" there'll be another race within two years;
• This is down to the final two both being prone to "make mistakes".

Thank you for joining us in the Politics Hub for live coverage of today's events in Westminster.

For all the key news of today, see our bulletin just above.

Join us again from 6am for the very latest political news.

The day is drawing to a close, and darkness has descended on Westminster (no Northern Lights visible from the Sky News office, sadly).

Nonetheless, here is what you need to know about the day before you head to bed:

• Sir Keir Starmer and Volodymyr Zelenskyy met in Downing Street, where they discussed the Ukrainian president's "plan for victory";
• Joining Sir Keir and Mr Zelenskyy this morning was NATO secretary general Mark Rutte, who said the war was not just about defending Ukraine, but "defence of the West".
  

• Labour's Employment Rights Bill was introduced to parliament, seeking to strengthen workers rights without harming growth;
• But the major reforms will not become law for at least two years, as the government seeks to find a compromise between businesses and unions.

• The chancellor has been warned she may need to find another £25bn in tax revenues in this month's budget if she wants to keep up public spending;
• The Institute for Fiscal Studies said the £9bn so far outlined wouldn't be enough to meet the pressures on public services.

• In other news, a group of centrist Tories have refused to endorse either Robert Jenrick or Kemi Badenoch for leader;
• And on a lighter note, parliament has revealed its 2024 Christmas jumper, and our chief political correspondent Jon Craig has the lowdown.