UK government borrows more than expected in setback before budget

October figures represent final snapshot of public finances before Rachel Reeves’s tax and spending statement

Rachel Reeves was urged to use next week’s budget to create significantly more headroom against her fiscal rules, after official figures showed the UK government borrowed almost £10bn more than forecast in the year to October.

In the final snapshot of the public finances before the chancellor’s crunch budget, the Office for National Statistics (ONS) said borrowing – the difference between public spending and income – was £17.4bn last month.

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Lucy Powell says Labour must stand by promise not to raise key taxes

New deputy leader also calls on government to lift two-child benefit cap urgently and in full

Labour should stand by its manifesto commitment not to raise income tax, national insurance or VAT, its deputy leader, Lucy Powell, has said in a challenge that will put pressure on Rachel Reeves.

With the Treasury examining whether to raise income tax to plug a £30bn fiscal hole, Powell said it was “really important we stand by the promises we were elected on and do what we said we would do”.

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Reeves to lay groundwork for tax rises in ‘candid’ speech about budget

Chancellor to promise ‘fairness and opportunity’ but will not repeat manifesto pledge on tax, after PM’s hint at breach

Rachel Reeves will lay the groundwork for a tax-raising budget that could break Labour’s election promise on income tax, in a major speech in which she will be “candid” about the tough choices ahead.

The chancellor will give the speech as the markets open on Tuesday, when she will promise to make fair choices at this month’s budget but decline to repeat her manifesto pledge of no rise in income tax, VAT or national insurance.

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Farage accused of betraying pensioners after triple lock hint in speech Tories say was rambling and incoherent – UK politics live

Reform leader refuses to commit to keeping mechanism that guarantees how pensions are increased

Farage is speaking now. He says another “depressing budget hoves into view”. It will be a budget that “doesn’t have the guts to cut public spending”.

He says Britain has been living under an illusion.

I think for some years we’ve actually been living under an illusion. We’ve not been prepared to face up to just how much of an economic mess we genuinely in.

As we slipped down the global league tables, we kid ourselves that it’s OK, we’ve got GDP growth.

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Nigel Farage backtracks on Reform UK’s promise to cut £90bn of taxes

Party leader says proposal had been an ‘aspiration’ and accuses Tories and Labour of ‘wrecking the public finances’

Nigel Farage has rowed back from his party’s election promise to cut £90bn of taxes, accusing Labour and the Tories of “wrecking the public finances” and saying Reform UK would need to get public spending under control first.

The Reform leader rejected suggestions he had been forced to break manifesto promises in order to gain economic credibility, suggesting the proposal had only ever been an “aspiration”.

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NatWest boss warns against higher bank taxes as lender’s profits rise 30%

CEO says fiscal discipline should be balanced with ‘policies that create stability, consistency and support growth’

NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.

Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.

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UK inflation unexpectedly remains at 3.8% for third month in a row

Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

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Real living wage to rise by almost 7% in boost for low-paid UK workers

Hourly rate to increase in April by 95p to £14.80 in London and by 85p to £13.45 for the rest of the country

Almost half a million workers are to receive a pay boost after it was announced that the real living wage paid voluntarily by 16,000 UK companies will rise to £13.45 an hour in April.

Distinct from the national living wage, which is a statutory minimum, the real living wage is calculated each year based on the cost of essentials, and is paid by more than half of the companies in the FTSE 100.

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Rachel Reeves says higher taxes on wealthy ‘part of the story’ for November budget

Exclusive: Chancellor hints at rises and calls out past ‘scaremongering’ over VAT on private schools and changes to non-doms

Rachel Reeves has said higher taxes on the UK’s wealthy will form part of next month’s budget, as she shrugged off the “scaremongering” and “bleating” of her critics, and stressed her determination to repair the public finances.

Speaking in Washington, where she is attending the annual meetings of the International Monetary Fund (IMF), the chancellor told the Guardian there “won’t be a return to austerity” and hinted at tax increases for the most well-off.

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Starmer only read China spy witness statements this morning, No 10 says, as Cleverly accuses PM of misquoting him – as it happened

This blog is now closed, you can read more on this story here

Lindsay Hoyle starts by telling MPs that speakers from the parliaments in Fiji and Ukraine are in the gallery. And he says it is four years to the day since David Amess was murdered.

It’s PMQs. Here is the list of MPs down to ask a question.

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Tory plan to abolish stamp duty ‘will benefit London and the wealthiest the most’ – as it happened

This blog is now closed, you can read more on this story here

Voting in the Labour deputy leadership election opens today. Lucy Powell, the former Commons leader, is seen as the favourite and, as Jessica Elgot reports, Powell told supporters yesterday that, if she is elected, she will use the post to argue for changes in the way the government is operating. “We can’t sugarcoat the fact that things aren’t going well,” she said.

Powell is no longer a government minister and, if she is elected deputy leader, she will do the job from the backbenches. In an interview on Newsnight last night, Bridget Phillipson, the education secretary standing against Powell, said a Powell victory would be “destabilising” for the party. She said:

[Electing Powell] risks destabilising the party … we best achieve what we need to do together when we have those fierce conversations, including disagreements, behind closed doors.

Members need to understand that there’s a potential challenge around all of that – that if you’re not inside when the big decisions are being made, you’re not at that table, you’re not in those conversations.

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France is in crisis but bond markets leave other governments at risk of meltdown too

Investors rattled by resignation of French PM but country is not alone in trying to grapple with political maths

Sébastien Lecornu’s abrupt resignation as the French prime minister on Monday after less than a month in the role marked the latest clash between France’s stretched public finances and its polarised politics.

Lecornu was the latest prime minister to try and fail to cobble together a package of spending cuts and tax rises that would pass muster in a parliament without a clear majority, and contain mounting bond market pressures.

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‘First job bonus’ worth £5k planned for young people, Stride tells Tory conference – UK politics live

Shadow chancellor sets out spending plans as party conference continues in Manchester

Mel Stride, the shadow chancellor, was doing an interview round for the Conservatives this morning, and Miatta Fahnbulleh, the faith and communities minister, was on the air on behalf of the government. They were both asked about the latest development in the flag phenomenon – the former footballer turned property developer Gary Neville saying that he took down a union flag flying at one of his building sites because he felt it was being used in a “negative fashion”.

Asked if Neville (a Labour supporter) had a point, Fahnbulleh told ITV’s Good Morning Britain:

I think he’s really right, that there are people who are trying to divide us at the moment …

I spent a lot of time going around our communities, talking to people. People are ground down. We’ve had a decade-and-a-half in which living standards haven’t budged and people have seen their communities held down. And you will get people trying to stoke division, trying to blame others, trying to stoke tension.

I think people that put up flags, the vast majority of people that do, do so for perfectly reasonable patriotic reasons. And I think reclaiming our flag as a flag of unity and decency and tolerance, which is the way most people see our flag, is a very positive thing.

So I’m afraid I really cannot agree with the comments that he’s made.

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Tories say people denied benefits in UK can return to home countries

Mel Stride outlines plans to slash £47bn a year from public spending, including £23bn welfare cut

Overseas nationals denied benefits under a Conservative plan to limit social security to UK citizens would have the option to return to their own countries, the shadow chancellor, Mel Stride, has said.

Before his speech to the Conservative conference on Monday, Stride set out Tory proposals to cut £47bn a year from public spending, with the biggest chunk, £23bn coming from reductions in welfare.

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Andy Burnham calls for UK to rejoin EU within his lifetime and rejects claim he is fiscally irresponsible – as it happened

Mayor of Greater Manchester says he would have to be ‘wrenched’ out of city and says he wants UK to rejoin EU. This live blog is closed

In her Today interview Rachel Reeves was asked about a FT report saying she will urge business leaders to highlight the risks of a Reform UK government in her speech later.

The FT say Reeves will tell the Labour conference.

Who is standing up for Britain’s stability. A Labour government that is resolute in cutting interest rates and borrowing or a Reform party that cheered on Liz Truss’ mini-budget?

Who is standing up for Britain’s businesses? A Labour government that is forging a closer relationship with our nearest trading partners or a Reform party that talks Britain down and is hungry to cut us off from the world?

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Rachel Reeves pledges a library in every primary school in England

Exclusive: Chancellor also set to unveil plans to get young people back into work in party conference speech

Rachel Reeves will deliver a library in every primary school in England as part of Labour’s plans to give all children the best start in life regardless of their background.

The scheme, which will create libraries in the 1,700 primaries currently without them, will be funded from £132.5m of dormant assets that will be unlocked to give young people access to cultural opportunities.

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Taxpayers lose £400m as result of investment fund set up by Rishi Sunak

Report shows 334 companies backed by Future Fund, set up in May 2020 by then chancellor, have since gone under

UK taxpayers have lost £400m following the collapse of hundreds of startups backed by a heavily criticised Covid-era investment fund launched by Rishi Sunak when he was chancellor.

The Future Fund spent £1.14bn backing 1,190 companies, some of them of types not usually associated with government portfolios such as the sex party organiser Killing Kittens and the now defunct festival tickets business Pollen.

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Netanyahu’s ‘super-Sparta’ vision braces Israel for isolated economic future

Israeli PM’s outline of partial autarky and more militarised society stirs up backlash and concern over pariah status

Hours before unleashing a ground offensive against Gaza City on Tuesday, Benjamin Netanyahu braced his country for a future of mounting economic isolation, urging it to become a “super Sparta” of the Middle East.

The future the prime minister laid out for Israel, of a more militarised society, a partial autarky – or economically self-sufficient country – with limited trade options and relying increasingly on homemade production, has stirred up a backlash among Israelis who are ever more uneasy at the prospect of following him down the path to a pariah state.

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Business rates rise would put hundreds of big shops at risk, say UK retailers

Concern for ‘anchor tenants’ as trade body warns that stores could put up prices or cut jobs to protect profits

Up to 400 large shops are at risk of closure with as many as 100,000 jobs at risk if the government goes ahead with plans to hit stores with higher business rates, retailers have warned.

Some of the UK’s largest retail premises, including supermarkets and department stores, would face higher property tax charges under new rules being considered by the government before November’s budget.

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New home secretary Shabana Mahmood says she will not run for deputy leader after Labour accused of ‘stitch-up’ over contest – UK politics live

The MP said police should be focusing on people who are members of the group, not those who ‘recklessly express support’ for it

Paul Nowak, the TUC general secretary, used his speech to conference this morning to say that the TUC expected the government to deliver its workers’ rights bill “in full”. He said employment rights were “overwhelmingly popular with voters across the political spectrum”.

And he condemned Reform UK for its stance on employment rights. After saying that Nigel Farage claimed to represent working class people, he went on:

Here’s the truth – there is a world of difference between what Nigel says and what Nigel does.

Every single Reform MP, including Mr Farage, voted against outlawing fire and rehire, against banning zero hours contracts and against day one rights for millions of workers.

Ask yourself this fundamental question. Do you believe in your gut that that Nigel Farage really cares about the people of Clacton when he’s off collecting his speaker’s fees in the United States?

Do you believe that Richard Tice really worries about the people of Skegness while he’s living it up at home in Dubai, or are they just rightwing conmen lining their own pockets?

I just have to say this. No amount of TikToks, or ozempic, or expensive haircuts, will ever hide the eager inner ugliness of Robert Jenrick.

The man who ordered murals painted over in a reception centre for children seeking asylum is indeed a xenophobe, an opportunistic xenophobe hoping to create a political climate that ends up with far right folks laying siege to hotels and black and Asian people being threatened and harassed on our streets.

If we look at the powerful geopolitical push factors, they’re things like regime change. We think Afghanistan, war, civil conflict. And when we look at people crossing in small boats, where do they come from? Well, the top nationalities: Afghan, Eritrea, Iranian, Syrian, Sudanese – just those five nationalities account for almost two thirds of all small boat arrivals, and these individuals are from some of the most chaotic parts of the world.

But there are also some pull factors, and the question is, why not claim asylum in France, why come to the UK? A number of reasons recur there when we speak with asylum seekers. It’s the presence of family members, the English language.

In those circumstances, typically, flagged upon the system, the UK government would be able to issue a speedy refuse refusal and try and effect removal.

As it is, people arrive, we don’t have that record, so we don’t know who they are.

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