Credit can be used to offset future bills as full-year losses at UK division widen to £41.3m and it adds 92 stores
Starbucks’s UK retail arm received a £13.7m corporation tax credit last year, even as its sales increased 6% and it added more than 90 stores.
The credit, which can be used to offset future tax bills, comes after losses widened to £41.3m in the 12 months to the end of September – almost matching the £40m it paid in royalty and licence fees to its parent company.
Continue reading...Levy on inherited farms and family businesses worth £2.5m or more comes into force 6 April
A new inheritance tax regime for UK farms and family businesses comes into force on Monday and will present “significant challenges” for those affected, according to accountants.
In October 2024 the government announced plans to levy inheritance tax on farms – prompting an outcry in many quarters.
Continue reading...The Green party leader said Ofsted is a ‘failed institution’ and that teaching should move ‘toward a genuinely collaborative model’
Starmer complained about other parties whipping up division, and he specifically criticised Nick Timothy, the shadow justice secretary, for “complaining about Muslims praying in public”.
Labour, by contrast, values bringing people together, he said.
Continue reading...Chancellor urged to reform Office for Budget Responsibility to open way to more public investment
Rachel Reeves must reform the Office for Budget Responsibility (OBR) to open the way to more public investment, an alliance of thinktanks has argued ahead of the chancellor’s spring forecast on Tuesday.
With Keir Starmer’s government under intense pressure after Labour’s defeat by the Greens in Thursday’s Gorton and Denton byelection, the thinktanks called on Reeves to review the watchdog’s remit.
Continue reading...Labour MPs may clamour for bolder spending, but – like their Tory and Reform counterparts – they ask for the unaffordable
Too many Labour MPs want it all, and no amount of pleading from the top of government about the depleted public finances seems to make a difference.
The mainly leftist MPs want all the wrongs of the last 15 years put right and quickly. Their next opportunity to demand more cash arrives when Rachel Reeves delivers her spring statement on 3 March.
Continue reading...PM says: ‘We kept to our manifesto in terms of what we’ve promised. But I accept the challenge that we’ve asked everybody to contribute’
The Conservative party is attacking the budget on the grounds that Rachel Reeves is putting up taxes supposedly to fund more spending on benefit claimants. Even though the rationale for this claim is questionable, the Tories were making it before the budget was announced, and Kemi Badenoch firmed it up last night, claiming it was a “Benefits Street budget”.
On LBC this morning, asked if the budget meant “alarm clock Britain paying for Benefits Street”, Reeves said she did not accept that. She said 60% of the families that would benefit from the removal of the two-child benefit cap (the most expensive welfare announcement in the budget) were in work.
I don’t think children should be punished by this pernicious policy any longer. And the cost to society of this is huge, the cost for councils of temporary accommodation, when people can no longer afford the rent, putting families in B&Bs, kids having to move to school all the time because parents have moved from B&B to another lot of temporary accommodation, and there’s costs for years to come, because all the evidence shows that kids that are growing up poor are less likely to get into work and more reliant on the welfare state in the future for them.
So this is a good investment in those kids, to give them the chances that I want for my kids, and everyone wants for their kids. It also saves money for taxpayers on that accommodation, on those additional health costs, and ensuring that those kids grow up to be productive adults.
Continue reading...Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds
Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.
On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.
Continue reading...By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online
Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.
The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.
Continue reading...By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online
Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.
The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.
Continue reading...Parliamentary group urges government to clamp down on overseas territories before flagship anti-corruption summit
The UK government has been accused of caving-in to pressure from the British Virgin Islands by allowing it to limit access to a register of company share ownership to only those deemed to have a legitimate interest.
The restriction, to be discussed at talks starting on Tuesday between Foreign Office ministers and leaders of the British overseas territories (BOTs) in London, is in defiance of legislation passed by the UK government as long ago as 2008 that would make the register available to all.
Continue reading...Levy will also apply to more fizzy drinks as health secretary says government ‘will not look away as children get unhealthier’
Sweet-toothed consumers face paying more for bottled milkshakes and some fizzy drinks after the government confirmed plans for a tougher sugar tax.
Designed to tackle obesity, the levy currently applies to drinks with a sugar content of 5g per 100ml. However, after a public consultation this is being cut to 4.5g per 100ml, meaning it could cover hundreds more products.
Continue reading...Chancellor admits economy ‘feels stuck’ for many as she signals intention to freeze income tax thresholds
Rachel Reeves has promised to “grip the cost of living” in the budget as she prepares to scrap the two-child welfare limit and freeze rail fares, while putting forward a multibillion-pound tax-raising package.
The chancellor is preparing to give her second budget on Wednesday after weeks of uncertainty about the scale of the tax rises she will need to impose to plug a financial hole of about £20bn.
Freezing income tax thresholds for an extra two years to 2030, bringing more people into higher tax bands as wages rise.
Making salary sacrifice schemes less generous, including those for pension contributions.
Bringing in higher tax on the most expensive properties, including a surcharge on the highest-value houses.
A pay-per-mile scheme on electric cars to help fill the tax gap from petrol duty as more people opt for green vehicles.
Continue reading...Fallout continues over budget income tax U-turn, with Treasury saying expected fiscal gap has dropped to £20bn
This is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.
Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates
1. Does it signal less willingness to do politically difficult things
Britain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.
Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July.
Continue reading...Labour had laid the ground to break a manifesto pledge on taxes for working people but has now made a U-turn
Rachel Reeves is set to abandon a plan to raise income tax in her budget with the chancellor reportedly “ripping up” the main measures in the wake of turmoil in the party.
A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the prime minister, Keir Starmer, and the chancellor.
Continue reading...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”.
Continue reading...Lammy, standing in for Keir Starmer, avoided answering questions on the mistaken release during PMQs
David Lammy starts by saying the PM is in Brazil.
He says the thoughts of all MPs are still with the victims of the appalling attacks in Huntingdon and Peterborough, where, he says, he was at school for seven years.
Continue reading...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.
Continue reading...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.
Continue reading...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”.
Continue reading...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.
Continue reading...