Category Archives: Politics

Hard to overstate challenges Kemi Badenoch faces as leader of the opposition

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There are questions over whether new Tory leader can hold splintered party together, or even piece together a worthy shadow cabinet

Kemi Badenoch might have avoided the cursed 52%-48% ratio which has riven the Conservative party before, but the close-run nature of her 56.5% winning margin in the Tory members’ vote shows the scale of the task before her.

It is hard to overstate the challenges Rishi Sunak’s replacement faces, even setting aside the much-cited fact that the last new UK leader to take a party directly from an election defeat to government was Margaret Thatcher in 1979.

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Services for most-vulnerable people at risk after NICs rise, charities say

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Care providers, GPs and pharmacists warn increased costs will cause cuts and job losses

Services that support some of England’s most vulnerable people have warned that tax increases in the budget will lead to cuts and closures that could devastate the charity sector.

Although the NHS and councils are protected from the impact of the rise in employers’ national insurance contributions (NICs) announced in Wednesday’s budget, charities that provide services say the increase means they will face “existential” financial pressures.

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Reeves told she will have to raise further £9bn to avoid UK public service cuts

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Warning from comes after Rachel Reeves’s record tax-raising budget sent tremors through financial markets

Rachel Reeves has been warned an extra £9bn of tax rises may be required to avoid a fresh austerity drive in key public services as her record tax-raising budget sent tremors through the financial markets.

Threatening to undermine the chancellor’s claim that her budget would restore economic stability to Britain, government borrowing costs rose sharply in the City on Thursday as traders turned on Reeves’s tax and spending measures.

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Rachel Reeves’s most irritating manifesto fudge: private equity’s tax loophole | Nils Pratley

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Labour said it would bring taxation of performance-related pay in the industry in line with others – but the chancellor had a change of heart

It has been almost two decades since Nicholas Ferguson, a grand figure in the private equity business, caused a storm by talking out loud about his industry’s dirty little secret. It could not be right, he said, that highly remunerated private equity executives could pay less tax than a cleaner or other low-paid workers.

Things have moved on a bit since 2007. So-called “carried interest”, or carry – the portion of an investment profit that the private equity managers retain as a bonus for success – is now taxed at 28% under the capital gains regime; in the old days, rates in effect as low as 10% could be secured thanks to various exceptions.

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Private schools to take legal action against planned VAT on fees

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Independent Schools Council says its focus is on children and it is concerned about impact on specialist schools

The Independent Schools Council (ISC) has said it will launch legal action against the government’s decision to impose VAT on independent school fees.

The council, which represents more than 1,400 private schools in the UK and abroad, reached its decision after a board meeting held on Thursday.

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EU citizen who applied for pre-settled status is to be deported from Scotland

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Greek Cypriot Costa Koushiappis to be removed from UK even though his application is pending with Home Office

An EU citizen caught up in a Home Office backlog of applications for post-Brexit residency status is to be deported by Border Force officials in Scotland.

Costa Koushiappis, 39, who is Greek Cypriot, has been told to show up at Edinburgh airport at 7am on Friday to be forcibly put on a flight to Amsterdam just weeks after he received an email from the Home Office to say it could take a further 24 months to process his application for status.

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Housing, social care and universities: who lost out in the UK budget?

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Rachel Reeves made funding the NHS a priority but people working in other areas said they were disappointed

Rachel Reeves’s first budget emphasised raising taxes to help the NHS, as the health service tries to cope with huge waiting lists and an ageing population. Funding the NHS was a top priority but people in other sectors – from universities to social care – feel the budget was a missed opportunity to tackle impending crises or introduce desperately needed reforms in their areas.

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Ofcom fines GB News £100,000 for breach of impartiality rules over Sunak interview

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GB News to challenge decision and watchdog will not enforce sanction until proceedings are concluded

Ofcom has fined the rightwing broadcaster GB News £100,000 for “breaking due impartiality rules” after an interview with the former prime minister Rishi Sunak earlier this year.

The media regulator said it chose to impose a fine over the programme titled People’s Forum: The Prime Minister because it considered the breach serious, and because of GB News’s track record of breaking impartiality rules.

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Reeves’s long-term spending figures almost as unrealistic as Tories’ were, IFS says – UK politics live

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Institute for Fiscal Studies says budget ‘looks like the same silly games’ as seen under the Conservatives

Rachel Reeves is now being interview on ITV’s Good Morning Britain.

She is being interviewed by Ed Balls, the former Labour shadow chancellor who is now a TV presenter. He asks her to confirm that workers will end up losing out because of the employers’ national insurance contributions (NICs) increase.

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Rachel Reeves may have to find more money to fix public services, says IFS

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Institute for Fiscal Studies says budget allows for rise in public service spending this year and next, but not thereafter

Rachel Reeves could be forced to find more money to fix public services after her budget made a start at reversing the “unrealistic” and irresponsible spending plans of the Conservatives, the Institute for Fiscal Studies (IFS) has said.

Britain’s leading experts on the government’s finances said the chancellor’s tax measures on Wednesday had allowed for a substantial short-term increase in public service spending this year and next, but not thereafter.

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Ed Davey: care sector will be ‘pushed to brink’ by national insurance hike and should be exempt

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Lib Dem leader says rise in employer’s contribution risks worsening NHS crisis

The Liberal Democrats have called on the government to exempt the social care sector from the increase in national insurance in Labour’s budget, as an organisation representing many smaller care providers warned that the impact would be substantial.

In the biggest fiscal measures of Wednesday’s budget, raising an additional £25bn a year by the end of the parliament, Rachel Reeves announced an increase of 1.2 percentage points on the national insurance paid by employers, with the salary threshold at which this begins falling from £9,100 a year to £5,000.

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Budget 2024: what the UK papers said about Rachel Reeves’ statement

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Headlines featured numerous ‘nightmare’ allusions for budget delivered the day before Halloween

After Rachel Reeves‘ first budget as chancellor, which included £40bn in tax rises, newspaper headlines in the UK featured “nightmare” and “horror show” allusions as it came a day before Halloween.

The Financial Times’ front page featured a picture of smiling Reeves headlined “Reeves unveils £40bn budget tax rise”. The paper reported the chancellor’s aims of fixing public services, and the “broken” finances, saying businesses and the wealthy would “bear bulk” of the “heaviest fiscal burden” in a generation.

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The budget: Labour returns to tax and spend – Politics Weekly UK

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Rachel Reeves has finally laid out Labour’s spending plans in the party’s first budget in almost 15 years. The Guardian’s John Harris is joined by political editor Pippa Crerar and political correspondent Kiran Stacey to discuss the fallout

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Reeves accused of betraying small family firms with inheritance tax rises

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Chancellor also criticised for letting the very rich off the hook with a lower than expected rise in capital gains tax

Tax rises aimed at inherited wealth are at risk of backfiring, after the chancellor was accused of betraying small family businesses while letting private equity bosses off the hook.

Labour’s first budget in 14 years included measures to close inheritance tax (IHT) loopholes and press ahead with scrapping the controversial non-dom tax status, as well as levying higher taxes on private jet flights.

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OBR says budget unlikely to lift economic growth over next five years

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Forecaster says extra spending revealed by Rachel Reeves will give only a short-term lift to economy

Labour has embarked on a “large, sustained increase in spending, tax and borrowing”, according to the government’s economic forecaster, as it judged that Labour’s first budget for 15 years is unlikely to increase economic growth over the next five years.

Assessing Rachel Reeves’s policies, the Office for Budget Responsibility (OBR) said the economy would expand at the same rate as predicted in March by the end of the parliament, despite a £70bn-a-year rise in spending.

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Labour wants to reverse decline – but with a big budget comes a big risk

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The government knows cynical voters will need to see tangible change in public services and to feel better off

At the final political cabinet before Rachel Reeves delivered her first budget this week, ministers were presented with internal party research on what the public was expecting.

In the months since the general election, they had been fed a regular diet of gloomy warnings about the state of the economic inheritance and, more recently, high levels of pre-budget news coverage, so it was firmly on their horizon.

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Chancellor announces £22.6bn cash injection for NHS in England

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Rachel Reeves hails biggest increase ‘outside of Covid’ since 2010 but health experts say patients may not feel impact

The NHS in England is to receive a £22.6bn cash injection over two years, the chancellor has announced, in what she called the biggest spending increase outside Covid since 2010. But health experts said patients may not feel the impact as much of the increase would be absorbed by pay rises and higher care costs.

Announcing the “down payment” on the government’s 10-year plan for the NHS, due in spring 2025, Rachel Reeves said the NHS was the nation’s “most cherished public service” and that the extra funding would help the government cut waiting lists.

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Wednesday briefing: Five key messages that will define the budget

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In today’s newsletter: Labour has told two stories about Rachel Reeves’ budget. Will it be an end to austerity – or an acceptance of “the harsh light of fiscal reality”?

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Good morning. There will be no triumphalism, no big giveaways and certainly no rabbits out of hats: this, Keir Starmer and Rachel Reeves have been at pains to tell us, is going to be a very grownup budget. And even though Reeves will promise today that “the prize on offer is immense”, we might also therefore expect it to be a painful one. Since the entire thing appears to have been briefed out in advance over the last few weeks, nobody can say they haven’t been warned.

In a way, it feels like two budgets: the optimism and ambition of a minimum wage rise, a major boost for the NHS, and significant new investment in infrastructure; and a bleaker story about misleading pledges, limited ambitions, and the biggest set of tax increases in budget history.

UK news | The suspect charged with the murder of three girls in Southport is to be separately prosecuted on suspicion of possessing terrorist material and producing ricin, a powerful poison, police have said. Axel Rudakubana is due to appear in court on Wednesday.

US election | Kamala Harris urged American voters to elect a “new generation of leadership” in a speech at the same place Donald Trump spoke on January 6 almost four years ago. Likening her opponent to a “petty tyrant”, Harris told the crowd: “Donald Trump would walk into that office with an enemies list … I will walk in with a to-do list.”

Middle East | Israel is not addressing the “catastrophic humanitarian crisis” in Gaza, the US envoy to the UN has said, ahead of a deadline for the Israelis to improve the situation or face potential restrictions on US military aid. The warning came as Gaza’s civil defence agency said 93 people had been killed in an airstrike on a crowded block of flats.

Conservatives | Britain’s former colonies should be thankful for the legacy of empire, Conservative leadership candidate Robert Jenrick has said. Jenrick’s comments, which follow an agreement among Commonwealth leaders that “the time has come” to discuss reparations, were condemned as “an obnoxious distortion of history”.

Mexico | A team of researchers have stumbled on a lost Maya city of temple pyramids, enclosed plazas and a reservoir, all hidden for centuries by the Mexican jungle. The discovery was made possible by the use of laser mapping techniques in an area previously ignored by archaeologists.

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‘Waiting to die’: Layla Moran raises plight of NHS surgeon who fears for parents in Gaza

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Exclusive: Surgeon who treated Lib Dem MP has worked for NHS for 20 years and grew up in the Jabaliya camp

In April, Layla Moran was admitted into hospital for sepsis. For a while, doctors thought antibiotics would clear the infection but it soon became clear she needed surgery. While recovering, a surgeon told her he had removed her appendix. “He told me his name and I was like, ‘Hold on, where are you from?’”

Like Moran, Mohammad is Palestinian. The NHS surgeon grew up in the Jabalia refugee camp in Gaza and has worked for the health service for 20 years. Moran, the Lib Dem MP for Oxford West and Abingdon, had to remain in hospital for an extra week. During that time, the pair got to know each other.

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Reeves to promise ‘wealth and opportunity for all’ in major tax-raising budget

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Having announced minimum wage boost, chancellor to say she can spare working people from tax rises

The UK’s national minimum wage is to rise by a higher than expected 6.7% next year, Rachel Reeves has announced before a multi-billion pound tax-raising budget designed to act as the springboard for a decade of national renewal.

Insisting that the increase to £12.21 in the pay floor marks a significant step in Labour’s plan to support the low paid, the chancellor will also say she can spare working people from the tax increases intended to plug the hole in the public finances and avoid a fresh wave of found of public spending cuts.

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