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Moxy Quiz

UK politics this week has been defined by internal rebellion, economic unease, and the first signs of serious political fragmentation within the Labour movement. Keir Starmer’s government, one year into office, is facing its toughest political and ideological test yet.

The controversy erupted around Labour’s Welfare Reform Bill, which aimed to overhaul Personal Independence Payments (PIP) and tighten eligibility criteria under Universal Credit. The Bill was met with fierce resistance within Labour’s own ranks, with nearly 50 MPs rebelling against the leadership. Starmer was ultimately forced into a last-minute compromise, delaying major changes and promising a formal review before any cuts take effect. While the move allowed the Bill to scrape through Parliament, it revealed deep fractures in party unity and cast serious doubts over Starmer’s authority and leadership style.

At the heart of the rebellion was a growing concern the government is leaning too far into fiscal conservatism at the expense of its social justice mandate. The episode has energised discontented MPs and grassroots members who feel the party has drifted too far from its progressive roots.

Chancellor Rachel Reeves, often seen as the economic backbone of the government, found herself at the centre of the storm. During a heated session in the Commons, Reeves appeared visibly emotional, a moment that drew sympathy from some quarters but also highlighted the immense pressure facing Labour’s economic leadership. Markets responded with unease: sterling dipped and government borrowing costs rose, reflecting investor anxiety over the government’s fiscal credibility and the unclear path forward on tax and spending.

This instability has fuelled wider political dissatisfaction among Labour’s traditional base. Many supporters are beginning to question whether the party, despite securing power, is offering anything substantially different from the Conservatives. A growing chorus of disillusioned voters have expressed frustration over a perceived lack of progress on affordable housing, social care, welfare reform, and a coherent foreign policy, particularly in relation to Gaza.

The situation escalated further with the departure of Coventry MP Zarah Sultana from the Labour Party. In a move that could signal the beginning of a broader left-wing exodus, Sultana announced the formation of a new political party with Jeremy Corbyn and other independent figures. The group positions itself as an alternative to the centrist politics dominating both Labour and the Conservatives, and has already garnered support from disenchanted voters, particularly younger and working-class groups who feel unrepresented by the current system.

This new movement could pose a significant threat to Labour by siphoning off left-wing votes and undermining Starmer’s ability to present a unified alternative to the right. Early polling suggests the party could attract up to 10% of the vote, which, combined with the resurgence of the Greens and the persistent momentum behind Reform UK, could erode Labour’s dominance in key marginal seats.

Meanwhile, pressure is mounting for the government to find new ways to fund public services without worsening economic inequality. Former Labour leader Neil Kinnock has publicly called for a targeted wealth tax on fortunes over £10 million, a policy that could raise over £10 billion annually. While this proposal has significant public support among Labour members, it remains uncertain whether the Treasury will adopt such a measure, given fears over capital flight and investor backlash. 

What’s on in Parliament

Monday 7th July 

House of Commons 

  • Oral Questions: Home Office (Topical Questions) 

  • Legislation: The Pension Schemes Bill: Second Reading 

  • Westminster Hall Debate: E-petition 700024 relating to fossil fuel advertising and sponsorship 
     

House of Lords 

  • Oral Questions: Estimate of unpaid tax each year and steps to address the issue 

  • Oral Questions: Impact of Artificial Intelligence on the sustainability and reliability of the news media 
  • Legislation: Renters’ Rights Bill – report stage (day 2)


Tuesday 8th July

House of Commons 

  • Ten Minute Rule Motion: Special Educational Needs and Disabilities (Training in Schools) 

  • Legislation: The Football Governance Bill [Lords]: Remaining Stages 

  • Westminster Hall Debate: Use of generative artificial intelligence in schools 
     

House of Lords 

  • Oral Questions: Energy and water consumption data centres in the United Kingdom 

  • Legislation: Border Security, Asylum and Immigration Bill – committee stage (day 2) 
     

Wednesday 9th July 
House of Commons 

  • Prime Minister's Question Time 
  • Oral Questions: Scotland
  • Westminster Hall Debate: Role of Sports England in tackling racism in sport 


House of Lords 

  • Legislation: House of Lords (Hereditary Peers) Bill – report stage (day 2) 

  • Oral Questions: Assessment of Fujitsu’s suitability to hold government contracts 

  • Debate: Initial proposed Overarching National Policy Statement for Energy; Initial proposed National Policy Statement for Renewable Energy Infrastructure; Initial proposed National Policy Statement for Electricity Networks Infrastructure 


Thursday 10th July
House of Commons 

  • Business Statement: Business questions to the Leader of the House 

  • Backbench Business: General debate on the attainment and engagement of boys in education 

  • Westminster Hall Debate: London’s contribution to the national economy 


House of Lords 

  • Oral Questions: Steps being taken as part of the UK–EU relationship reset, to secure the removal of tariffs on fisheries exports from the Falkland Islands 

  • Legislation: Border Security, Asylum and Immigration Bill – committee stage (day 3) 
     

Friday 11th July
House of Commons 

  • Private Members' Bills: Educational Institutions (Mental Health Policy) Bill: Second Reading 

  • Private Members' Bills: Access to Telecommunications Networks Bill: Second Reading 

  • Private Members' Bills: Gambling Act 2005 (Monetary Limits for Lotteries) Bill: Adjourned debate on Second Reading [24 January] 


House of Lords 

  • The House of Lords is not sitting. The House will next sit on 14th July.

Consultations

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