Tories may drop autumn statement pledging more tax cuts before election

With public finances in a worse position than expected, chancellor Jeremy Hunt is considering pushing back further pledges

Jeremy Hunt and his team are considering not holding another tax-cutting autumn statement before the next election, amid uncertainty about the public finances.

The chancellor has already hinted that he plans to pledge further tax cuts – including another down payment on Rishi Sunak’s ambition to abolish national insurance – before a general election, which is expected to be held in the autumn. He also remains under pressure from the right of the party to lower taxes.

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Rishi Sunak insists he did not keep green card to move back to US

Prime minister says he held on to his US residency until 2021 only because he had not got around to revoking it

Rishi Sunak has insisted he does not want to move to the US and that he kept his green card for years only because returning it was “not something I got round to”.

The prime minister said he had “acted in accordance with all the rules” when in possession of a US green card, which he gave up only in 2021, while he was chancellor.

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UK government borrowing higher than expected in February

Borrowing of £8.4bn last month could threaten OBR forecast for £114.1bn deficit for 2023-24 as a whole

Jeremy Hunt has been handed disappointing news from the public finances after government borrowing was higher than expected in February, leaving the national debt at the highest levels since the 1960s.

The Office for National Statistics said public sector net borrowing was £8.4bn in February, £3.4bn less than in the same month a year ago. However, it was higher than any economist expected in a Reuters poll that predicted a deficit of £6bn.

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Abbott claims Labour leadership’s ‘real agenda’ is to prevent her getting the whip back – UK politics live

Hackney MP endorsed a post saying it was unlikely she would be allowed to rejoin Labour despite the support of senior figures

A reader asks:

Is there anything other than convention which says elections must be on a Thursday?

The reason for choosing Thursday, it is said, was as follows. On Fridays the voters were paid their wages and if they went for a drink in a public house they would be subject to pressure from the Conservative brewing interests, while on Sundays they would be subject to influence by Free Church ministers who were generally Liberal in persuasion. Therefore choose the day furthest from influence by either publicans or Free Church clergymen, namely Thursday. Although these influences are much less significant today, the trend towards Thursday becoming a universal polling day has continued, because Urban District Councils and Rural District Councils all polled on a Saturday until they were abolished under the 1972 Local Government Act. Their successor District Councils poll on a Thursday and the Parish Council polling day was changed from Saturday to Thursday at the same time.

If it ends up being an autumn election as Sunak has indicated, how does that impact the conference season - do they still go ahead? - and does the summer recess have any affect on when a government can call an election?

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Labour steps up preparations to govern as Reeves attacks ‘unfunded’ Tory tax cuts

Shadow cabinet talk with Whitehall officials after Keir Starmer meets head of civil service

All members of Keir Starmer’s shadow cabinet are to meet top civil servants in Whitehall departments before Easter as Labour steps up preparations to form the next government, according to senior party sources.

The Observer has been told that Starmer recently held a first round of so-called “access talks” with the cabinet secretary Simon Case, the head of the civil service, at a “neutral venue” in London, to kick off an exchange of information between the official opposition and Whitehall in advance of a potential handover of power.

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UK politics: Sunak refuses to say how abolition of national insurance would be funded – as it happened

PM says ‘people trust me on these things’ and refuses to be drawn on whether government would forgo entire £46bn raised from measure

Keir Starmer has accused Jeremy Hunt of repeating the budget mistakes made by Liz Truss during her disastrous premiership.

In comments on the budget during a visit to a building site this morning, Starmer focused on Hunt’s proposal to abolish employees’ national insurance over time, saying that this was a bigger unfunded tax promise than those in Truss’s mini-budget. (See 9.28am.)

How humiliating was that for the government yesterday?

We’ve argued for years that they should get rid of the non-dom tax status, they’ve resisted that. And now, completely out of ideas, the only decent policy they’ve got is the one that they’ve lifted from us.

Nothing that Jeremy Hunt did yesterday, nor anything the OBR said, changes anything very significantly. Which is a shame. Because that means we are still:

-heading for a parliament in which people will on average be worse off at the end than at the start,

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Jeremy Hunt vows to pay more capital gains tax on his properties

Chancellor refuses to disclose number of houses owned but says he will pay higher tax rate on proceeds from sales

Jeremy Hunt has promised to voluntarily pay more capital gains tax on his properties so that he does not benefit from a tax cut he introduced.

The chancellor refused to disclose how many houses he owned but said he would pay a higher tax rate on any proceeds from selling his property.

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Budget 2024: UK taxes head for highest level since 1948 despite Hunt’s NI cut

Borrowing and stealth taxes fund £14bn giveaway, but public spending squeeze looms after election

Britain will go into the next general election with taxes at their highest level since 1948 despite Jeremy Hunt’s 2p budget cut in national insurance contributions – with the threat of a fresh squeeze on public spending to come after polling day.

The chancellor used a combination of higher borrowing and a range of stealth taxes to fund a £14bn giveaway package and said his ambition was to phase out NICs for employees and the self-employed altogether.

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Budget 2024 live: Jeremy Hunt cuts national insurance, abolishes non-dom status and raises child benefit threshold

NI cut of 2p announced, along with new tax on vapes, end of tax relief for holiday lettings and more cash for NHS IT system

Jeremy Hunt is expected to extend the windfall tax on energy companies in the budget to help fund his national insurance cut. Extending the windfall tax is a Labour proposal that the Tories used to dismiss, and, according to a Daily Telegraph story, Douglas Ross, the Scottish Conservative leader, is so angry about the move that colleagues thought he might resign. Ross is MP for Moray, in the north-east of Scotland, and he is worried that the potential impact on the oil and gas industry in Scotland will cost the party votes.

In their story, Nick Gutteridge, Dominic Penna and Simon Johnson say Ross had a row with Rishi Sunak about this at a reception on Sunday night. They report:

The leader of the Scottish Conservatives had doggedly sought out Mr Sunak across the crowded, stifling room, determined to give him a piece of his mind about the Treasury’s plans to extend the windfall tax on North Sea oil and gas giants for an extra year.

What followed was a “heated” discussion between the pair, with Mr Ross warning the move would hammer the Tory vote north of the border and the prime minister countering that it was necessary to deliver a National Insurance cut for millions of workers.

Glen O’Hara, professor of modern history at Oxford Brookes University, points to the gaping trade deficit left for Labour in 1964, when outgoing Tory Chancellor Reginald Maudling infamously left a note for his successor reading: “Good luck, old cock … sorry to leave it in such a mess.”

Conservative Chancellor Norman Lamont’s pre-election budget in 1992 introduced a lower rate of income tax which Labour opposed, allowing the Tories to portray them as a “high-tax party.” The Tories unexpectedly went on to win the subsequent poll.

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UK fuel duty cut is regressive policy that benefits the wealthy, study finds

Chancellor’s 5p freeze will save £60 a year for well-off motorists compared with just £22 for lower earners

Retaining the fuel duty cut in the budget is a regressive policy that benefits the wealthiest in society, who will save £60 a year, while those who earn the least will save just £22, according to analysis.

Jeremy Hunt on Wednesday announced an extension of the 5p cut in fuel duty brought in during 2022, for which he has won plaudits across the rightwing press.

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Budget 2024: Jeremy Hunt announces 2p cut in national insurance

Chancellor also scraps ‘non-dom’ tax breaks and slashes capital gains on property in pre-election gambit

Jeremy Hunt has announced a 2p national insurance cut in his budget as a pre-election gambit to revive flatlining opinion poll ratings and reboot Britain’s economy from recession.

In what could be the last major economic intervention before voters go to the polls, the chancellor said the government was making progress on its economic priorities and could now help hard-pressed families by permanently lowering certain taxes.

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Wales warns Jeremy Hunt’s budget could force redraw of its own

Cardiff’s finance minister says her 2023 budget could be redundant if the chancellor makes radical tax changes

The Welsh government has warned it could be forced to redraw its budget only one day after it is approved by the assembly should Jeremy Hunt make tax and spending policy changes that affect Wales in his budget in March.

Cardiff’s finance minister, Rebecca Evans, said she was concerned that her budget, which was published as a draft in 2023 for discussion and will be completed on 5 March, could become redundant if Hunt adopts radical measures in his budget the following day.

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Clare Lombardelli named deputy governor of Bank of England

Ex-Treasury official and adviser to David Cameron will replace Ben Broadbent, making MPC majority female for first time

The Bank of England’s interest-rate-setting committee is set to become majority female for the first time, after the appointment of a former key adviser to David Cameron and George Osborne as one of its deputy governors.

Clare Lombardelli, the chief economist at the Organisation for Economic Co-operation and Development (OECD), will sit on the nine-member monetary policy committee (MPC) when she joins as the Bank’s next deputy governor for monetary policy.

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Hunt scrambles to raise revenue as OBR slashes scope for tax cuts in budget

Chancellor considers unexpected tax rises such as abolishing non-dom status after latest forecast

Jeremy Hunt’s scope to make tax cuts in next week’s budget has been reduced further this week, according to Treasury insiders, leaving the chancellor considering emergency measures to raise revenue.

Recent forecasts from the Office for Budget Responsibility (OBR) are said to have given the chancellor less fiscal headroom than hoped, pushing him to consider unexpected tax rises such as abolishing the non-dom tax status.

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Jeremy Hunt ‘could adopt Labour tax-raising plans’ – as it happened

Chancellor reportedly considering energy windfall levy as well as scrapping the non-dom status

The Conservative peer and former MP Stewart Jackson has also made the point about Rishi Sunak’s comments yesterday echoing what Suella Braverman has been saying. (See 9.25am.) He suggests Sunak is a weathercock, “buffeted by events”.

Rishi Sunak is now saying what #SuellaBraverman rightly said four months ago, and for which she was sacked. Tony Benn astutely divided politicians as between signposts and weathercocks. One can think ahead, the other is buffeted by events. We know which one is which, don’t we?

We commend the prime minister on his powerful speech at the CST dinner last night, pledging more funding to protect the Jewish community, outlining a new protocol to safeguard our elected representatives and effectively police protests, and drawing a clear line between democratic dissent and mob intimidation.

The last few months have seen an extreme rise in antisemitic hate in the UK, which has had a significant effect on British Jews. The prime minister’s announcement has made it clear - those bringing chaos to our streets and academic institutions will no longer be allowed to act with impunity.

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Jeremy Hunt’s budget giveaway ‘will act as sweet filling in tax sandwich’

Thinktank says juicy cuts this year follow far bigger increases in 2023 and precede planned ‘chunky rises’

Jeremy Hunt’s expected pre-election giveaway budget will be sandwiched between £20bn of tax increases already implemented and a further £17bn of hikes pencilled in for after polling day, a thinktank has said.

The Resolution Foundation said it expected Hunt to freeze fuel duty and cut income tax on 6 March but warned the chancellor’s “tax sandwich” was based on the “fiscal fiction” of £30bn of spending cuts in the next parliament.

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Sunak is warned spending squeeze could lead to Conservative party wipeout at election

As fresh party infighting erupts after two byelection losses, the right are targeting public service funding to pay for tax cuts while others urge restraint

Rishi Sunak is being warned he risks taking his party further towards disaster by sanctioning a new public spending squeeze in a desperate pursuit of pre-election tax cuts, as more Tories said they feared an election wipeout.

With more infighting erupting this weekend after two huge byelection losses in former safe seats, Treasury officials are examining cuts to public spending should they be needed to fund tax cuts, demanded most vociferously by the right of the party.

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Jeremy Hunt ‘considering spending cuts’ to fund pre-election tax giveaway

Treasury looking at reducing projected rise in public spending from 2025, FT reports citing insiders

Jeremy Hunt is considering making billions of pounds of spending cuts to fund pre-election tax cuts in the next budget, according to a report.

The chancellor is looking at “further spending restraint” after 2025 if official economic forecasts suggest he does not have enough headroom to pay for “smart tax cuts”, the Financial Times reported, citing Treasury insiders.

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Even a technical recession is a headache for Rishi Sunak

Governments try to generate a feelgood factor before an election. The UK has the opposite: a feel-bad factor

In the end it wasn’t really that close. The UK economy is now technically in recession after contracting by 0.3% in the final three months of 2023.

The official data brings to an end a miserable year for the UK. Growth in 2023 as a whole was just 0.1% – the weakest performance outside the Covid pandemic year of 2020 since 2009.

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