Healey’s first budget to include big devolution package to boost growth

Chancellor will build on Burnham’s promise that local leaders in England will no longer have to ‘come cap in hand to Westminster’

Andy Burnham has promised that local leaders in England will no longer have to come “cap in hand to Westminster” ahead of a fresh drive to devolve spending power in next week’s budget.

In his statement on Wednesday, the chancellor, John Healey, will include plans for a new £1.5bn borrowing facility, to be drawn up in collaboration with mayors over the next two years.

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No unions, low taxes: why some of Britain’s top chefs are opening outposts in Gulf states

Leading restaurateur says Gulf countries actively help businesses set up, while east Asia has a better work ethic

Some of London’s top restaurants are opening branches in Dubai because of a “tax tsunami” in the UK and better work ethic abroad, according to a leading restaurateur.

James Robson, a co-owner of Fallow in St James’s Market, regarded as the capital’s hottest restaurant, serving 1,000 people a day, has just signed a deal to open an outpost in the Gulf.

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Is London really the most-taxed city? Banks accused of cherrypicking data

Lobby group’s figures, shared with John Healey, are misleading as they do not include major rival Paris, say campaigners

A banking lobby group has been accused of cherrypicking data and trying to mislead the British government by claiming a tax rise for banks at next week’s budget would leave London less competitive than rival financial hubs.

UK Finance, which represents banks including Lloyds, JP Morgan and Revolut, commissions an annual report tallying up all the taxes shouldered by a large bank, including corporation tax, social security, VAT and bank-specific levies.

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Minister says 32 government services offline due to PHP code flaw – UK politics live

Organisations around the world scrambling to fix a critical security flaw in the programming language PHP used by the majority of websites

The Office for National Statistics has also published a report on the gender pay gap. It says:

The gender pay gap for full-time employees has continued to decline in the UK. It was 6.8% in April 2026, down from 7.2% in April 2025. This compares with 9.4% a decade ago and 16.4% 25 years ago.

Secondly, I asked Healey whether he sees the banks as making excessive profits, which would be the coherent justification for him to increase the surcharge on bank profits – as he is expected to do in the Budget next week.

He said: “You know the banks are the engine of investment in this country. The banks are doing well at the moment and that is good to see.

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Badenoch says Tories would prioritise cutting taxes for businesses over individuals – UK politics live

Conservative leader also called for benefit spending to be cut to fund rise in defence budget

Badenoch says Britain needs tax cuts.

We need to get out of the way of job creators who make our country richer. We need to encourage risk taking, wealth creation, enterprise.

Britain’s tax burden has never been higher. You are taxed on the heating in your home. You’re taxed at the petrol pump filling up your car. You’re taxed when you insure that car. You’re taxed if you take the family away on holiday. You’re taxed if you stay in the UK thanks to Andy Burnham’s tourist tax. You’re taxed to buy a home, taxed to live in a home, taxed to pass on your home. This is clearly not working. Britain does not feel better off.

Andy Burnham wrote in The Times yesterday about the moral outrage of the current benefit system. But as far as I could work out, his answer is to spend even more on benefits.

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UK van drivers face extra £2.5bn in diesel costs this year, figures show

Calls for planned fuel duty rise to be scrapped as analysis finds average fuel bill could hit £1,965, up from £1,294

Millions of British van drivers face a combined £2.5bn cost to cover the rising price of diesel this year, according to figures, fuelling calls for the government to scrap its planned fuel duty rise.

The owners of diesel vans and pickups can expect to collectively spend almost £8.5bn at the pump this year, according to analysis for the Guardian, after diesel prices climbed to record highs due to a global fuel shortage caused by disruption to refineries in the Middle East and Russia.

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‘If voters aren’t better off by the next election, we’re screwed’: Labour insiders voice fears over budget

Some say party risks ‘looking twee’ by focusing on small fixes amid growing nervousness that budget lacks ambition

In the days since Labour’s annual conference, party insiders have been sharing a word cloud produced by the pollsters More in Common, which shows the phrases voters most associate with Andy Burnham.

Such polling is rarely flattering for politicians, and the prime minister’s version had its fair share of negatives. But one of the most prominent words in the cloud – and the one that has caught the imagination of Labour strategists – was “trying”.

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Tory tax break for banks has cost UK public purse £6bn, says TUC

Exclusive: Chancellor urged to reverse Rishi Sunak’s tax surcharge cuts to claw back billions in lost revenue

Tax cuts for big banks have deprived the UK government of £6bn in revenues, according to campaigners, who are calling on the chancellor, John Healey, to increase taxes and force lenders to pay their “fair share” in the budget.

Calculations by the Trades Union Congress (TUC), which represents unions with more than 5.3 million members across England and Wales, shows that the public purse is billions of pounds worse off as a result of tax cuts introduced under the Tory chancellor Rishi Sunak in 2023.

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Tories accused of prioritising rich voters as Badenoch lays out inheritance tax cut plan

Party hopes to win over affluent middle-class voters as leader rejects calls to ‘unite the right’ in conference speech

Kemi Badenoch has announced that the Conservatives would abolish inheritance tax on family homes if elected, prompting criticism that she is prioritising cutting taxes for the rich.

The Tory leader also said couples would be able to leave an additional tax-free sum of £1m to their families, as the party attempts to shore up its traditional base in southern England.

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Badenoch disowns Tory claims that air defence plan amounts to ‘British Iron Dome’ – UK politics live

Tory leader says ‘Britannia Shield’ will not be a similar scheme to that protecting Israel after repeated questions from broadcasters

Asked if she will propose tax cuts in her speech tomorrow, Badenoch tells McCann that she will have to wait until her speech tomorrow at 11.15am.

(This is getting confusing. On BBC Breakdfast, Badenoch told Jon Kay the speech was at 12pm.)

It’s not going to be exactly like the Iron Dome. We haven’t called it an Iron Dome.

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Tory plan to cut energy efficiency rule for builders will cost new home owners £1,000 a year, says thinktank – as it happened

A researcher at a climate change think tank says the Conservative policy would be a ‘disaster for first time buyers’

Yesterday, as a gimmick, the Tories were handing out “Bottler Burnham” bottles of water (“0% strength”) to make a point about Burnham supposedly cancelling plans for an early election under pressure from the Tories. It is a version of a stunt they pulled in 2008 when they gave journalists bottles of a “Bottler Brown” beer. (Gordon Brown did pull plans for an early election at the last minute; this time the jibe is unfair, because there were no Burnham plans for an early election.)

The new bottles feature the image of Burnham produced by the Manchester artist Stan Chow.

The SNP’s effective ban on new nuclear energy in Scotland flies in the face of common-sense.

No part of Great Britain should be missing out on plans for new nuclear renewal.

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‘I can deliver’: Burnham pledges radical change on eve of Labour conference

Exclusive: UK prime minister says delivering fiscal stability would be ‘crucial’ to be able to fix bigger problems

Andy Burnham has said he can deliver on his promise of radical change for the country despite severe economic headwinds, telling the Guardian: “There’s always things you can do; it’s just whether you’re prepared to do them.”

The prime minister acknowledged public finances were “challenging” ahead of next month’s budget but said delivering fiscal stability would be “crucial”, because only then would the government be able to focus on fixing bigger problems.

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Critics of UK government’s economic forecaster are ‘shooting the messenger’, say MPs

Treasury committee rejects calls for fundamental reform of independent watchdog the Office for Budget Responsibility

Attacks on the government’s independent economic forecaster from left and right of the political spectrum are akin to “shooting the messenger”, according to an influential group of MPs.

The Treasury committee rejected “siren calls to fundamentally reform” the Office for Budget Responsibility (OBR) and said it should not be blamed when policymakers had to make tough decisions because of tight public finances.

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Thinktank linked to Reform UK calls for abolition of state pension

‘Radical’ report likely to influence party’s platform also proposes abolishing inheritance and capital gains taxes

A thinktank linked to Reform UK has called for the abolition of the state pension and £75bn worth of sweeping tax cuts in a “radical” report likely to influence the party’s platform for the next election.

The Centre for a Better Britain’s (CFABB) report – which also calls for weaker rules for UK banks and Trump-style investment accounts offering £1,000 to newborns – will be formally launched at a private event with City executives on Wednesday.

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Khan addresses Polanski in Urdu at London assembly, mocking Green leader’s byelection video – UK politics live

It comes after the Green leader, who is standing as a candidate in the Holborn and St Pancras byelection, recorded a campaign video in Urdu

Andrew Griffith has delivered his speech, and he is now taking questions.

Q: You want the government to pause the making tax digital programme. Is that an admission that the last government got this wrong when it introduced it?

It is an admission that despite [good] intentions, the execution of that has left a lot to be desired.

In fact, coming to parliament from business, I can confess the law that we pass the most often is the law of unintended consequences. And I think making tax digital is a good example of that.

The truth is that Burnham and Miliband ignored the advice they were given – which was that if they were determined to sanction Israel, they should not do so before the Israeli election on 27 October.

It may not be surprising that this was the message from the Israeli foreign minister, Gideon Sa’ar, when Miliband called him on 11 August to warn sanctions were imminent. ‘He said postpone it until after the elections,’ a diplomatic source confirms. It was also the message the Israeli embassy in London – and its new chargé d’affaires Chris Cantor – was relaying to the Foreign Office. ‘Their message was clear: why do it now? Wait until after the elections, because something might change,’ a senior Labour figure says.

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Much of Europe already levies a tourist tax – a nice little earner for Italian hotspots

While England makes its first foray into unfamiliar territory, it’s proved a boon for Italy’s cash-strapped municipalities

A nightly tourist tax may be unfamiliar territory in the UK, but countries in continental Europe have been cashing in on these kinds of levies for decades.

Tourists usually need to pay the tax on the day they check out of a hotel or holiday let, and are often surprised by an extra fee on top of their accommodation costs.

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UK chancellor urged to remove £100k childcare ‘cliff edge’ prompting parents to cut work hours

Critics say threshold pushes higher-paid staff to cut back on work and often mothers to stop working to avoid losing entitlement

John Healey has been urged to fix the £100,000 childcare “cliff edge”, that means some higher-paid employees cut back on work to avoid losing their entitlement.

Since the latest expansion of taxpayer-funded childcare in 2024, families with young children in which both parents earn less than £100,000 a year can be entitled to 30 hours a week of care - or none at all, if one of them cross that threshold.

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Camden Green councillor says he will fight Polanski to run in Starmer’s seat – UK politics live

Hamza Chowdhury says he will challenge party leader and has received nominations from other Green councillors

Healey says Andy Burnham set out in his statement to MPs last week what he thought had gone wrong

The fundamentals of our economy [were] hollowed out through a series of past policy decisions, political power was centralised, weakening the relationships between the people, the businesses and the institutions who can make things happen beyond Whitehall. The economic enablers were privatised and outsourced, leaving accountability to a thicket of arm’s length bodies and regulators, too often without the predictability or the pace that underpins a thriving market economy. And our country was deindustrialised as the cost to make anything, to build anything here soared, and our dependence on unreliable sources grew, including in areas critical to our national security and sovereignty.

Let me be clear, I recognise that the costs of business, its energy bills, regulation, burdens, planning constraints, labour costs, have grown since Covid and I want to draw the line.

And whether it is the cost of business or the cost of living, the only way we deal with these in the long term is growth.

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Labour condemns Reform’s plan for £100bn in cuts as ‘half-baked’ and ‘incredibly reckless’ – UK politics live

Labour chair says uch cuts ‘could mean vital public services like hospitals, schools and law enforcement are put at risk’

The Electoral Commission has released political donation figures for the second quarter of 2026. They show that Reform UK continues to rake in far more than other parties. Nigel Farage’’s party had declared donations worth £5.3m. Labour got £3.6m, and the Conservatives £2.8m.

Most of Reform UK’s money came from Ben Delo, who gave £4m. As Rowena Mason reported earlier this year, Delo is a British billionaire convicted in the US for failing to implement adequate anti-money-laundering controls in his cryptocurrency business.

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Fund defence spending from tax rise on middle earners, thinktank tells Healey

Resolution Foundation argues that UK’s internationally low ‘tax wedge’ must rise to pay for defence ambitions

The chancellor, John Healey, must be prepared to raise taxes for middle earners if he wants to fund significantly higher defence spending, the Resolution Foundation thinktank has said.

Healey resigned from Keir Starmer’s government in June, protesting against what he argued was the then prime minister’s failure to adequately fund defence.

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