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Latest news, sport, business, comment, analysis and reviews from the Guardian, the world's leading liberal voice
Carillion crisis: Theresa May rules out bailout as Labour accuses ministers of collusion - live updates

Prime minister tells cabinet that it wasn’t possible to rescue Carillion, but insists taxpayers won’t face a huge bill

Carillion’s collapse means the company’s workers and pensioners will soon be in the hands of the UK’s pension’s lifeboat.

The Pension Protection Fund is widely expected to take on Carillion’s pensions deficit, of around £580m. Those already taking pensions will be protected, but those members below retirement age will face cuts of 10-20%.

The former pensions minister Steve Webb told the Guardian that “Carillion would be the biggest-ever hit on the PPF” but that the lifeboat would be able to “comfortably absorb” the Carillion scheme.

Nigel Green, the chief executive of deVere Group, one of Britain’s biggest independent financial adviser firms, said: “UK final salary pension schemes have an enormous deficit black hole, which raises the inevitable question: how many more big hits can the PPF take?”

Related: After Carillion how many firms can the pensions lifeboat rescue?

Labour MP Rachel Reeves is also piling pressure on the government tonight.

She’s calling on ministers to urgently tighten Britain’s corporate governance rules to prevent another Carillion crisis.

In the end, the people who lose out when money is siphoned off is suppliers, workers, and when government contract are involved it’s ultimately the British tax payer.

It’s not acceptable that those risks can be transferred to the taxpayers and employees, while the executives get the bonuses and the dividends.

As workers, suppliers and taxpayers pay the price for Carillion's collapse, the Chief Executive who was sacked last year for his part in the company's downfall is still being paid £660,000 a year. Govt must act to prevent companies siphoning off millions at taxpayers' expense. pic.twitter.com/vYSJbCQrgg

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Tue, 16 Jan 2018 18:44:43 GMT
Steve Bannon subpoenaed to testify in Mueller's Russia investigation – report

The House intelligence committee will on Tuesday question Steve Bannon, the one-time confidant to Donald Trump. The New York Times reported, meanwhile, that Bannon has been subpoenaed by the special counsel, Robert Mueller, as part of his investigation into Russian meddling in the 2016 election.

Related: 'It's all explosive': Michael Wolff on Donald Trump

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Tue, 16 Jan 2018 17:25:05 GMT
Labour centrists express fury about Momentum's Christine Shawcroft taking over key party post - Politics live

Rolling coverage of the day’s political developments as they happen

It’s not surprising that the unions, members of the shadow cabinet and three Momentum backed NEC reps chose Christine Shawcroft over Ann Black - as many ordinary members are deeply frustrated with her. In 2016 Ann voted to to exclude 130,000 new Labour members from the leadership election, forcing them to pay another £25 to participate. When you deny members the right to choose the leader of their own party, it does tend to create a certain amount of resentment.

I hope that the other place will make an enormous number of changes to this bill. The idea that the bill with all these Henry VIII clauses is going to have an untroubled passage through the House of Lords is an illusion. The House of Lords, I hope, will throw back some of the bizarre extensions of the Henry VIII principle in this bill but also some of the European things ...

This is a pathetic parliament so far in the way in which it’s handled this extraordinary measure before it.

House of Commons votes 319 to 296 to reject Amendment 57 to the #EUWithdrawalBill. pic.twitter.com/Pew2RKr1Tr

House of Commons rejects Amendment 4 to the #EUWithdrawalBill by 317 votes to 299.
The Amendment would have retained the Charter Rights in UK law and afford them the same level as protection as the rights in the Human Rights Act. pic.twitter.com/dKWZHnFqqG

Commons votes 320 to 297 against #EUWithdrawalBill New Clause 7 relating to #animalsentience. pic.twitter.com/lvWO4Fyw6X

The Department for Environment, Food and Rural Affairs has said Guy Verhofstadt, the European parliament’s lead Brexit spokesman, was wrong when he said this morning that the UK’s plastic bag crackdown was an EU initiative. (See 9.51am.) A Defra spokesperson said:

It is not true to claim that our plastic bag charge is a result of EU regulation. We set out our plans before the EU and we have gone further than EU regulations require.

The 5p levy on plastic bags in England was announced in September 2013 and introduced in October 2015. EU plans requiring member states to reduce plastic bag use were set out in November 2013.

EU directive 2015/720 (amending Directive 94/62/EC) was passed 29 April 2015. Govt’s Single Use Carrier Bags Charges (England) Order 2015 No. 776 (a statutory instrument) came into force 5 Oct 2015. #KeepUp #FactChecked #NailedIt https://t.co/1aPCWUl3qY

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Tue, 16 Jan 2018 17:52:39 GMT
Obesity surgery 'halves risk of death' compared to lifestyle changes alone

Latest study of long-term impact of bariatric surgery lends support to experts who say more operations should be carried out in UK

Obese patients undergoing stomach-shrinking surgery have half the risk of death in the years that follow compared with those tackling their weight through diet and behaviour alone, new research suggests.

Experts say obesity surgery is cost-effective, leads to substantial weight loss and can help tackle type 2 diabetes. But surgeons say not enough of the stomach-shrinking surgeries are carried out in the UK, with figures currently lagging behind other European countries, including France and Belgium – despite the latter having a smaller population.

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Tue, 16 Jan 2018 16:00:28 GMT
Attack by Turkish forces on US-backed Kurds in Syria thought imminent

Operation targeting ‘terror nests’ would risk inflaming tensions between Trump administration and Ankara

Turkish troops and tanks near the Syrian border are making final plans to attack the US military’s Kurdish partners inside northern Syria as tensions between Ankara and Washington near unprecedented levels.

Ahead of a widely expected incursion, the Turkish president, Recep Tayyip Erdoğan, threatened to “destroy all terror nests”, a reference to Kurdish forces that the US has used as proxies in the fight against Islamic State (Isis) and Turkey views as a subversive threat.

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Tue, 16 Jan 2018 18:22:06 GMT
Pope Francis expresses 'pain and shame' for clergy's sexual abuse of children
  • ‘We commit ourselves to ensuring such things do not happen again’
  • Pontiff’s Chile visit overshadowed by firebombing of nine churches

Pope Francis has admitted his “pain and shame” over the sexual abuse of children by Catholic clergy on a visit to Chile which has been overshadowed by the firebombing of nine churches – allegedly by activists claiming a high-level cover-up.

Speaking in Santiago in the presence of the Chilean president, Michelle Bachelet, legislators, diplomats and other officials, Francis asked for forgiveness.

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Tue, 16 Jan 2018 17:18:56 GMT
EU declares war on plastic waste

Brussels targets single-use plastics in an urgent clean-up plan that aims to make all packaging reusable or recyclable by 2030

The EU is waging war against plastic waste as part of an urgent plan to clean up Europe’s act and ensure that every piece of packaging on the continent is reusable or recyclable by 2030.

Following China’s decision to ban imports of foreign recyclable material, Brussels on Tuesday launched a plastics strategy designed to change minds in Europe, potentially tax damaging behaviour, and modernise plastics production and collection by investing €350m (£310m) in research.

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Tue, 16 Jan 2018 15:50:22 GMT
Alec Baldwin criticizes stars renouncing Woody Allen: 'Unfair and sad'

The actor has launched a defense of the film-maker on Twitter, calling it one of the ‘privileges of his career’ to work with him

Alec Baldwin has defended Woody Allen on Twitter while calling other actors “unfair and sad” for voicing their regrets over working with him.

The star, who worked with Allen on Blue Jasmine and To Rome With Love, is the latest actor to speak publicly about the film-maker following on from Greta Gerwig, Mira Sorvino, Rebecca Hall and Timothée Chalamet.

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Tue, 16 Jan 2018 16:47:53 GMT
Kanye West and Kim Kardashian announce birth of third child

The celebrity couple have said they are ‘incredibly grateful’ to their surrogate after the birth of a healthy baby girl

Kanye West and Kim Kardashian have announced the birth of a third child via a surrogate mother.

Related: Yes, I love Keeping Up With the Kardashians. Don’t dare try to shame me | Fay Schopen

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Tue, 16 Jan 2018 17:45:56 GMT
Teach five-year-olds about dangers of knife crime, says police chief

Exclusive: Met’s head of knife crime says children increasingly exposed to violence on social media

Children as young as five should be taught about the dangers of knife crime, a police chief has said, as figures revealed the death toll among under-25s in London had almost doubled year-on-year.

DCS Sean Yates, Scotland Yard’s head of knife crime, said waiting until children were older risked leaving their initial exposure to scenes of violence to social media.

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Tue, 16 Jan 2018 12:12:51 GMT




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