![\"London](\"https:\/\/www.newsbeep.com\/uk\/wp-content\/uploads\/2025\/10\/nl-header_politico_london-playbook.png\")
<\/p>\nWhat\u2019s driving the day in Westminster. Politics and policymaking in the UK capital.<\/p>\n
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Good Tuesday morning. This is Andrew McDonald.<\/p>\n
DRIVING THE DAY<\/p>\n
BREAKING THIS MORNING: Keir Starmer has picked a path on a contentious issue that divides his Cabinet and provokes strong feelings in his parliamentary party \u2014 and this time it has nothing to do with Andy Burnham. In a TikTok (yes, really) posted a few minutes ago<\/a>, Starmer confirmed his government will cap ground rents paid to freeholders at \u00a3250 a year for each property. The move will please his backbenchers and give him something to shout about on the cost of living at his pre-China trip Cabinet meeting at 9.30 a.m. \u2026 though it sets up Labour for a gunfight with professional landlords and investors.\u00a0<\/p>\n Explaining all of this today \u2026 will be Housing Secretary Steve Reed in the morning broadcast studios shortly \u2026 then Housing Minister Matthew Pennycook, tipped for a Commons statement later \u2026 and the draft legislation on leasehold reform should wind up on the internet around the same time Pennycook speaks.\u00a0<\/p>\n Red meat: Leasehold reform \u2014 promised in Labour\u2019s manifesto \u2014 burst into the worried minds of Labour MPs after a draft bill was delayed last year. The issue of a cap on ground rents (whereby owners of leasehold homes pay their freeholders an annual fee) became an obstacle amid a rearguard by a Treasury reportedly concerned about the impact on pension funds that own freeholds. Freeholders were also fighting the idea of losing the money, and had already taken the government to court over reforms introduced by the Tories.\u00a0<\/p>\n In there: We\u2019re waiting for a planned timeline for when this will end up in law, along with other details of Labour\u2019s planned reforms to leasehold. The legislation is expected to include a ban on new leasehold flats in England and Wales except for under some limited circumstances. The Times<\/a> and the FT<\/a> both caught wind of the announcement last night, after Sky\u2019s Sam Coates heard it was coming Monday morning.\u00a0<\/p>\n Not in there: Leasehold reform campaigners\u2019 demand for ground rents to be reduced to \u201cpeppercorn\u201d levels \u2014 i.e., negligible sums. Housing Minister Pennycook said in opposition that his preference was for ground rents to be capped at peppercorn levels.\u00a0<\/p>\n But but but: As rumors swirled last night about an incoming ground rent cap, the Labour MPs who spoke to Playbook were broadly pleased, with one saying it was an \u201chistoric achievement\u201d up there with the Employment Rights Act. Former Deputy Leader Angela Rayner and her allies will be pleased too, after she intervened in a Guardian op-ed<\/a> last week to urge Labour not to give in to pressure by the Treasury and freeholders to water down the reforms.\u00a0<\/p>\n Whisper it, but \u2026 the framing of the decision to go ahead with a cap seemingly against the Treasury\u2019s will marks another win for Rayner, who gifted for auction a signed copy of her other recent win \u2014 the Employment Rights Act \u2014 at a fundraiser for the Labour MP Uma Kumaran last night. You might have noticed the path to becoming the unrivaled soft-left choice for the leadership looks a bit clearer these days. On which note \u2026<\/p>\n SCOOP: Playbook hears Rayner, speaking at last night\u2019s fundraiser, made a rallying cry for the government to do more Labour-y things \u2014 and to be proud of them. \u201cWe\u2019ve done a lot of really good things,\u201d she told a crowd of MPs and Labour types. \u201cBut my diagnosis of what\u2019s gone wrong is that people think we\u2019ve got there through being pushed there, as opposed to people thinking that that\u2019s what we stand for and believe. I think that we need to be unapologetically Labour.\u201d\u00a0\u00a0<\/p>\n A warning? \u201cWe\u2019ve got to make sure that people have a reason to vote Labour and they understand that we\u2019re on the path,\u201d Rayner concluded. \u201cWe need to put rocket boosters up it, and I will be making sure that I make my voice heard in that process.\u201d After a quiet few months following her resignation in September, the former deputy leader\u2019s comeback appears to be on.\u00a0<\/p>\n BATTLE FOR MANCHESTER<\/p>\n GET BY WITH A LITTLE HELP FROM BRAVERMAN: Starmer\u2019s allies reckon they\u2019re on the way to riding out the row over the block on Andy Burnham, after Reform UK\u2019s newest recruit, Suella Braverman, knocked the King of the North off most of the front pages and the top of the BBC News at Ten.\u00a0<\/p>\n And indeed: Just two MPs, both from the Socialist Campaign Group, brought up Burnham at last night\u2019s PLP meeting. Attorney General Richard Hermer got through the gathering relatively unscathed as he told MPs to focus on governing instead of internal fights. One MP told Playbook\u2019s Bethany Dawson that Hermer was \u201cgenuinely excellent\u201d \u2014 though they added \u201cit\u2019s a shame the rest of us don\u2019t share his enthusiasm.\u201d\u00a0The Guardian and other papers have some of Hermer\u2019s words<\/a>.<\/p>\n Also not sharing Hermer\u2019s enthusiasm: The 50 or so Labour MPs who have signed the latest letter objecting to Burnham\u2019s blocking, per the BBC<\/a>, i Paper<\/a> and the Mail\u2019s splash<\/a> (among others). This is one of two letters being passed around by backbenchers \u2026 but they\u2019ll need more signatures before Team Starmer starts to really take them seriously.\u00a0<\/p>\n Try, try again: Those MPs aren\u2019t the only ones still trying to get their man back into parliament, with some choice pro-Burnham briefing on his next steps making it into the papers. The Telegraph\u2019s Ben Riley-Smith and co<\/a>. hear Burnham\u2019s allies are now seeking to recreate the composition of the NEC in the mayor\u2019s image, with 16 of its 39 spots up for election in the summer. The Guardian reports he will try again<\/a>, but that his allies reckon his hopes of fighting this by-election are virtually over with interviews for candidates set to start today.<\/p>\n Waspish: But it\u2019s still hard to see how Burnham could have another go under the current leadership \u2026 and whether the relationship between Burnham and Starmer can be repaired. No. 10 sources tell the impeccably connected Guardian Lobby team<\/a> that relations between the two men are \u201cat a low ebb.\u201d Remember too that another top Labour chronicler, the Times\u2019 Patrick Maguire, had this anecdote from way back in 2021 in his piece on Sunday night<\/a>: \u201cSo enraged was the Labour leader by news of Burnham\u2019s success [in the 2021 Mayoral election] that aides recall him storming from the room \u2018with a face like a man chewing a wasp\u2019 as it was announced.\u201d<\/p>\n For what it\u2019s worth \u2026 the PM said none of that was true as he delivered his latest defense of the decision in a live podcast recording with the comedian Matt Forde last night, watched by our own Bethany. \u201cWhat the NEC decided was we didn\u2019t want to open up another front for a fight we didn\u2019t have to have, which was the mayoralty in Greater Manchester \u2026 it wasn\u2019t actually about the individual at all,\u201d he insisted.\u00a0<\/p>\n Also not sharing Hermer\u2019s enthusiasm II: This \u201csenior government figure\u201d quoted in the Times splash<\/a>, who says \u201crealistically we know that we\u2019re going to lose\u201d in the Gorton and Denton by-election. They said the decision was made because they thought it was a choice between losing the mayoralty or the by-election.\u00a0<\/p>\n Which, if nothing else \u2026 illustrates the electoral hole Labour is in if its senior figures genuinely believe it had no chance of winning a mayoral election where Burnham romped home by more than 50 percent just two years ago.\u00a0<\/p>\n WHO WILL DELIVER THE BURN? It\u2019s with that context in mind that both Reform and the Greens decamp to Manchester today \u2014 with senior figures in the pair of populist parties now firmly reckoning Labour have left the pitch clear for a two-horse race. First up, Reform will unveil its candidate for the seat at 2 p.m. in Denton. A \u201cbig-name\u201d candidate is expected, and the Mail\u2019s Claire Ellicot reports<\/a> policy chief Zia Yusuf could be in the frame.<\/p>\n And as for the lefties \u2026 Greens Leader Zack Polanski is due in the constituency this evening to lead a rally from 7 p.m. He won\u2019t be unveiling the party\u2019s candidate in the seat, who is set to be announced by the end of the week. Joint Deputy Leader Mothin Ali told the Times<\/a> he was \u201cseriously considering\u201d running for it.\u00a0<\/p>\n OFF TO THE FAR EAST<\/p>\n STEADY AS XI GOES: A year of planning (and teeth-clenching) in No. 10 reaches a climax tonight as Keir Starmer jets off with a planeload of CEOs to China, my colleague Dan Bloom writes while taking a break from some last-minute packing for Beijing\u2019s grim January weather<\/a>. Just don\u2019t expect Starmer to do a Mark Carney and declare the old world order dead, Dan writes in his big preview piece<\/a>. Allies of Starmer tell him the PM will keep pursuing his \u201cthree-body problem\u201d of the U.S., EU and China \u2014 and try not to trigger Donald Trump.<\/p>\n Great minds! Starmer said pretty much the same thing last night in a warm-up interview with Bloomberg<\/a>. \u201cI\u2019m often invited to simply choose between countries,\u201d the PM told Alex Wickham. \u201cI don\u2019t do that.\u201d<\/p>\n And again: Starmer laid out his diplomatic philosophy in even clearer terms in his podcast interview with Matt Forde. \u201cIf you\u2019re a leader on the international stage, you are dealing with whoever is the leader in another country. I mean, it\u2019s that simple,\u201d he said. Wonder which other world leader that could apply to.<\/p>\n But even so \u2026 Starmer can\u2019t just have it both ways in his search for economic growth, not least due to China\u2019s threat\/epoch-defining challenge<\/a> (delete as appropriate) to national security.\u00a0<\/p>\n On which note: The Telegraph splashes on reporting<\/a> from Rozina Sabur and Gordon Rayner suggesting that China hacked the mobile phones of senior Downing Street officials for several years. They say state-sponsored hackers targeted the phones of some of the closest aides to former Tory PMs Boris Johnson, Liz Truss and Rishi Sunak, particularly those in the latter\u2019s team. <\/p>\n So, unsurprisingly: Officials and execs are bringing secure devices and will have been briefed on the risk of honey traps and hacks (not of the nice journo variety). Dan\u2019s piece includes an eye-popping anecdote about one member of Theresa May\u2019s 2018 delegation who opened the car door \u2026 only to find several people with headsets and keyboards, like in a spy film.\u00a0<\/p>\n To show just how low-key it all is: Chancellor Rachel Reeves met her Chinese counterpart in Davos last week \u2026 but the Treasury didn\u2019t publicize it at the time beyond this little-noticed photo on its Flickr account<\/a>.\u00a0<\/p>\n Look out for \u2026 whether Britain gets long-awaited approval for plans to renovate its embassy in Beijing. Officials say it is \u201cfalling down,\u201d with cracked walls and damp patches, but it isn\u2019t clear yet if a decision is imminent \u2014 and it looks as if the approval of China\u2019s London embassy will be hauled through the courts. One person with knowledge said China held off formally confirming Starmer\u2019s visit until the London embassy decision was finalized.\u00a0<\/p>\n There\u2019s this, too: The FT\u2019s Lucy Fisher scoops<\/a> that the government plans to tighten scrutiny of Chinese activity within its Foreign Influence Registration Scheme (FIRS) but without placing China in the same bracket as Russia or Iran. She hears those plans which are being drawn up will be unveiled later this year, but that the hope is they can protect economic links with China AND better protect the U.K. from security threats. <\/p>\n Then there are human rights: And ominously, the sentencing of Hong Kong pro-democracy publisher (and British citizen) Jimmy Lai is imminent. Some had even expected it this week \u2026 though one campaigner said last night that they reckon it may have been pushed back. Probably for the best if so. Read the full preview here<\/a>.\u00a0<\/p>\n TODAY IN WESTMINSTER<\/p>\n PUB GRUB: Rachel Reeves\u2019 relief package for pubs could come as soon as today, the FT<\/a>, Times<\/a> and Telegraph<\/a> reported last night. Playbook hears the package was still being finalized last night, but that it was likely to come today.<\/p>\n What\u2019s in it, and what\u2019s not: Millions in support for the pub sector seemed to be settled, with the FT and Tel both hearing it will be worth around \u00a3100 million a year. But it isn\u2019t clear how long any tax relief will last, or how many pubs will benefit. The chancellor is still said to have resisted calls for wider support for the hospitality industry, to the chagrin of many Labour MPs.<\/p>\n Including \u2026 a group of 47 Labour MPs who signed a letter last week calling for Reeves to look again at the impact of raising business rates on music venues. The letter, seen by Playbook, urged her to pause implementing the new rates on music spaces.\u00a0<\/p>\n HOTLINE DON: Donald Trump regularly rings Keir Starmer on his mobile, the PM revealed in last night\u2019s podcast interview with Forde (which is due to go online later today). \u201cOnce I was in the flat with the kids cleaning pasta off the table after their dinner, and the phone goes and it\u2019s Donald on the phone,\u201d Starmer said. \u201cAnother time, I\u2019d say most inconvenient, we\u2019re halfway through the Arsenal-PSG game.\u201d<\/p>\n Oh, and: Starmer donned a pair of sunglasses to mock Emmanuel Macron. TikTok here<\/a>.<\/p>\n COURT IS (PERMANENTLY) IN SESSION: Four former court buildings being used as temporary \u201cNightingale Courts\u201d opened during the pandemic will become permanent, Courts Minister Sarah Sackman has announced<\/a>. <\/p>\n BATTLE SCARS: Reform Deputy Leader Richard Tice told the FT<\/a> that local government officers are trying to \u201cbully\u201d his party by threatening not to sign off on annual budgets if Reform-led councils drastically cut employer pension contributions. He\u2019s described the situation as a \u201cferocious battle.\u201d<\/p>\n RIGHT ON TIME: Danish MP Rasmus Jarlov joins the Polar Regions APPG for a briefing on Greenland at 3 p.m. <\/p>\n KICKING OFF: Nearly 1,000 community projects across the U.K. are getting funding for new all-weather pitches, floodlighting and modern changing facilities through the Multi-Sport Grassroots Facilities Programme.<\/p>\n TOUGH NUMBERS: The level of people living in very deep poverty in the U.K. has hit its highest level on record, with 6.8 million people living in the deepest form of poverty, according to the Joseph Rowntree Foundation. The Guardian has a write-up<\/a>.<\/p>\n STATS DROP: The results of an NHS England health survey<\/a> drops at 9.30 a.m.<\/p>\n SW1 EVENTS: Reform\u2019s Danny Kruger addresses the Civitas think tank on Whitehall reform from 2 p.m. \u2026 Labour MP Barry Gardiner hosts a Superb-Owl reception with RSPB and ICCF UK at 6.30 p.m.<\/p>\n REPORTS OUT TODAY: The government will not rule out future interventions if the level of venture-capital investment in female entrepreneurs does not improve, ministers have told the Women and Equalities committee<\/a> \u2026 Moving new public sector employees onto defined contribution pension schemes could save taxpayers \u00a337 billion a year in the long run, according to Policy Exchange<\/a> \u2026 Seven in 10 school-wear retailers say the schools they\u2019re working with oppose the government\u2019s cap on branded uniform items, according to the Schoolwear Association, covered by the Express<\/a> \u2026 Energy infrastructure generates the strongest GDP boost across all sectors, according to BCG research<\/a>.<\/p>\n HOUSE OF COMMONS: Sits from 11.30 a.m. with Treasury questions \u2026 Labour MP Julie Minns\u2019 10-minute rule motion on electrically assisted pedal cycles \u2026 an allocation of time motion and all stages of the Medical Training (Prioritisation) Bill. Conservative MP Richard Fuller has the adjournment debate on the impact of East Park Energy on his North Bedfordshire constituency.\u00a0<\/p>\n On committee corridor: The Defence Committee grills Defence Secretary John Healey on his work (2 p.m.).\u00a0<\/p>\n HOUSE OF LORDS: Sits from 2.30 p.m. with the introduction of Labour peers Tracey Paul and Michael Barber \u2026 oral questions on the impact of the 2025 budget on grassroots music venues, the U.K.\u2019s implementation of ILO Convention 190, and plans to regulate the development of superintelligent AI \u2026 and a debate on Holocaust Memorial Day.<\/p>\n BEYOND THE M25<\/p>\n NORTH SEA BATTLES: The government\u2019s refusal to grant new oil and gas licenses is pushing the U.K.\u2019s energy capital Aberdeen toward a \u201ccoal-miner\u201d style collapse, according to the Jobs Foundation<\/a>.\u00a0<\/p>\n DIFF\u2019RENT STROKES: Scottish Labour Leader Anas Sarwar holds an 11 a.m. press conference to mark 100 days until the Holyrood election. He\u2019s going to warn there are only 100 days to \u201csave the NHS\u201d \u2014\u00a0but the Q&A afterwards will probably compel him to give a view on Andy Burnham. Down south, SNP Westminster Leader Stephen Flynn is doing a photo call and interviews to unveil the SNP election offer to \u201cvote SNP to sack Starmer.\u201d<\/p>\n ORDER UP: European Council President Ant\u00f3nio Costa and European Commission President Ursula von der Leyen are in New Delhi for the EU-India summit, hosted by Indian Prime Minister Narendra Modi. They will, among other things, talk about their shared \u201cresponsibility to protect the rules-based international order.\u201d<\/p>\n MIDDLE EAST LATEST: The U.S. suggested it could take military action to force Hamas to disarm or allow Israel to do so before it moves forward with rebuilding the Gaza Strip. A U.S. official told reporters that if Hamas members \u201cdecide to play games, then obviously President Trump will take other actions.\u201d My Stateside colleagues have the story<\/a>.\u00a0<\/p>\n ON THE GROUND IN MINNESOTA: A Republican candidate for Minnesota governor, Chris Madel, has withdrawn from the race. In a social-media video, Madel said the ICE operation in the state has \u201cexpanded far beyond its stated focus on true public safety threats,\u201d and he cannot support the national Republicans\u2019 approach of \u201cstate retribution on the citizens of our state.\u201d Read more on AP<\/a>.\u00a0<\/p>\n Elsewhere in the U.S. \u2026 Donald Trump is delivering a speech in Iowa around 8 p.m. U.K. time. He is meant to focus on energy and the economy, but who knows with this guy.\u00a0<\/p>\n MEDIA ROUND<\/p>\n Housing Secretary Steve Reed broadcast round: Times Radio (7.05 a.m.) \u2026 Sky News (7.15 a.m.) \u2026 BBC Breakfast (7.30 a.m.) \u2026 GB News (8.20 a.m.) \u2026 GMB (8.30 a.m.).<\/p>\n Shadow Business Secretary Andrew Griffith broadcast round: Times Radio (7.45 a.m.) \u2026 GB News (8 a.m.) \u2026 Talk (8.50 a.m.) \u2026 Sky News (9.15 a.m.).\u00a0<\/p>\n Also on BBC 5 Live: Home Secretary Shabana Mahmood (2.10 p.m.).\u00a0<\/p>\n Also on Nick Ferrari at Breakfast: Conservative peer Daniel Finkelstein (7.15 a.m.) \u2026 phone-in with Shabana Mahmood (8 a.m.) \u2026 former Conservative West Midlands Mayor Andy Street (9.20 a.m.).\u00a0<\/p>\n Also on Good Morning Britain: Holocaust Memorial Day Trust CEO Olivia Marks-Woldman (8.15 a.m.).\u00a0<\/p>\n Also on Times Radio Breakfast: Reform MP Danny Kruger (7.45 a.m.) \u2026 former Conservative frontbencher Jacob Rees-Mogg (8.20 a.m.) \u2026 Holocaust Memorial Day Trust Chair and former Chancellor Sajid Javid (8.45 a.m.).<\/p>\n Also on Sky News Mornings: Sajid Javid (8.15 a.m.) \u2026 former U.K. Ambassador to the U.S. Kim Darroch (8.30 a.m.).\u00a0<\/p>\n Politics Live (BBC Two 12.15 p.m.): Labour MP Chris Curtis \u2026 Conservative MP Wendy Morton \u2026 environmentalist Dale Vince.<\/p>\n TODAY\u2019S FRONT PAGES<\/p>\n POLITICO UK<\/a>: Starmer finally goes to China \u2014 and tries not to trigger Trump.<\/p>\n Daily Express<\/a>: Now stop the hate.<\/p>\n Daily Mail<\/a>: Burnham rebellion growing.<\/p>\n Daily Mirror<\/a>: Reform\u2019s latest con.<\/p>\n Daily Star<\/a>: \u2018You are my everything.\u2019<\/p>\n Financial Times<\/a>: Dollar slumps to four-month low and yen rises as gold breaks $5,100 barrier.<\/p>\n Metro<\/a>: More January transfer deals!<\/p>\n The Daily Telegraph<\/a>: China hacked phones in No. 10.<\/p>\n The Guardian<\/a>: Tories face backlash after \u2018mental health\u2019 jibe over Braverman\u2019s exit.<\/p>\n The i Paper<\/a>: Tories weaponise \u2018mental health\u2019 claim on defector Braverman \u2014 as exodus grows.<\/p>\n The Independent<\/a>: Mahmood\u2019s AI boost to fix broken police.<\/p>\n The Sun<\/a>: Clan United.<\/p>\n The Times<\/a>: Labour fears stumbling to third in by-election.<\/p>\n LONDON CALLING<\/p>\n WESTMINSTER WEATHER: Chucking it down. High 10C, low 5C.\u00a0<\/p>\n SPOTTED \u2026 at ASI\u2019s \u201cBack to School\u201d Party at College Green Group, munching on salmon and wine: Shadow Work and Pensions Secretary Helen Whately \u2026 Shadow Business Secretary Andrew Griffith \u2026 Conservative MPs Jack Rankin and Joe Robertson \u2026 Growth Commission Director and Liz Truss spox Jonathan Isaby \u2026 Conservative peers Matthew Elliott, Daniel Moylan and Peter Lilley \u2026 former MEP Lance Forman \u2026 CCHQ\u2019s Sheridan Westlake and Victoria Hewson \u2026 LOTO\u2019s Sonia Zvedeniuk \u2026 ASI\u2019s James Lawson, Jasper Ostle, Mitchell Palmer and Joanna Marchong \u2026 College Green Group\u2019s Thomas Borwick \u2026 GB News Political Editor Christopher Hope \u2026 and Speccy hacks James Heale and Michael Simmons.<\/p>\n NEW GIG: Georgia Faye Henderson has joined Deputy Prime Minister David Lammy\u2019s team as a special adviser.<\/p>\n ONE FOR THE SHELF: Former NFU President Minette Batters\u2019 book \u201cHarvest<\/a>,\u201d will be published on May 28.\u00a0<\/p>\n MEA CULPA: Jon Pearce is no longer the parliamentary chair of Labour Friends of Israel.<\/p>\n WRITING PLAYBOOK PM: Emilio Casalicchio.<\/p>\n WRITING PLAYBOOK WEDNESDAY MORNING: Andrew McDonald.<\/p>\n HAPPY BIRTHDAY TO: Tory peer Patricia Rawlings \u2026 British Chambers of Commerce Director General Shevaun Haviland \u2026 New World editor-at-large Matthew D\u2019Ancona \u2026 Guardian columnist George Monbiot \u2026 former U.K. Ambassador to China Christopher Hum \u2026 former Scottish Conservatives Leader Douglas Ross \u2026 former Erewash MP Maggie Throup \u2026 former Sittingbourne and Sheppey MP Gordon Henderson \u2026 former Health Secretary Alan Milburn.\u00a0<\/p>\n PLAYBOOK\u00a0COULDN\u2019T HAPPEN WITHOUT:\u00a0My editors Alex Spence and James Panichi, diary reporter Bethany Dawson and producer\u00a0Hugh Kapernaros.<\/p>\n SUBSCRIBE to the POLITICO newsletter family: Brussels Playbook<\/a> | London Playbook<\/a> | London Playbook PM<\/a> | Playbook Paris<\/a> | Berlin Playbook<\/a> | POLITICO Confidential<\/a> | Sunday Crunch<\/a> | EU Influence<\/a> | London Influence<\/a> | Berlin Bulletin<\/a> | D.C. 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