Category Archives: Tax and spending

Scotland ‘let down on every front’ by Hunt’s statement, says SNP government

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Questions in Scotland, Wales and Northern Ireland about funding for devolved governments

The Scottish government has accused the chancellor of “letting Scotland down on every count” after he unveiled a modest £545m increase in Treasury funding, and extra funds for Wales and Northern Ireland.

Jeremy Hunt announced an overall boost of £1bn for the UK’s three devolved governments, with Wales in line to receive an extra £305m and Northern Ireland £185m over the next two financial years, alongside £545m for Scotland.

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Autumn statement live: Jeremy Hunt cuts national insurance as OBR downgrades UK growth forecast

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Chancellor cuts employee national insurance to 10% while abolishing class 2 national insurance

Keir Starmer has said that a pause in hostilities between Israel and Hamas must be used to tackle the “urgent and unacceptable humanitarian catastrophe” in Gaza.

Welcoming the deal, which is expected to involve the release of 50 hostages being held by Hamas and a number of women and teenagers from Israeli jails, the Labour leader said his party had been calling for “a substantial humanitarian pause”. He said:

There must be immediate access to aid, food, water, fuel and medicine to ensure hospitals function and lives are saved. Aid and fuel need to not just get in but be distributed widely and safely.

We must also use the space this pause creates to take more steps on a path towards a full cessation of hostilities rather than an escalation of violence.

The real function of the projected spending squeeze is as a trap for Labour. If the opposition rejects the Tory trajectory, it will be accused of planning a profligate spree with public money. And if it pledges adherence to impossible targets, it will enter government with its hands bound too tight to deliver prompt satisfaction to the people who voted for it.

Keir Starmer and Rachel Reeves have so far operated a sensible policy of not walking into traps of this kind. That approach restored swing voters’ trust in Labour as stewards of the economy. But it tests the patience of an activist base that sees reversal of austerity as a moral imperative and can smell the incipient disappointment in promises of fiscal discipline.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

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Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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Boris Johnson ‘bamboozled’ by science and Matt Hancock had habit of saying things that were untrue, UK Covid inquiry hears – live

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Former chief scientific adviser Patrick Vallance revealed there was ‘complete lack of leadership’ at times in crisis

Vallance says that some of what he was doing during Covid would have been done by anyone else in the post of government chief scientific adviser (GCSA).

But he says because of his medical training, and his knowledge of vaccines (he had worked for GlaxoSmithKline before taking the GCSA job), he was probably more involved than another GCSA might have been.

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Sunak says he will cut taxes ‘over time’ as he reveals new economic priorities

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PM signals that business tax cuts more likely than personal ones as he sets out ‘next phase’ of government’s economic plan

Rishi Sunak has hinted at business tax cuts to boost economic growth as he promised to reduce the tax burden “carefully and sustainably” and “over time”.

In a speech on Monday the prime minister declined to give any specifics before the autumn statement, but stressed the focus was “very much the supply side” of the economy in a signal that business tax cuts are more likely than personal ones.

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Tax corporate polluters and rich to help tackle climate crisis, Jeremy Hunt told

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In letter to Guardian, campaigners say billions could be raised to help finance decarbonisation

Jeremy Hunt has been warned that combating the climate emergency will require higher taxes on wealth and big corporate polluters at the autumn statement rather than a package of giveaways for the rich.

In the run-up to the chancellor’s speech to the Commons on Wednesday, a group of 19 leading charities and campaigners – including Greenpeace, Christian Aid and Patriotic Millionaires UK – said billions of pounds could be raised to help finance decarbonisation.

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Hunt urged to invest £30bn a year in infrastructure or risk ‘decade in doldrums’

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Thinktank says stronger than expected tax revenues have given chancellor scope for bold package in autumn statement

Jeremy Hunt risks condemning Britain to a decade in the doldrums unless he uses this month’s autumn statement to announce a £30bn-a-year investment plan to upgrade public infrastructure, a leading thinktank has warned.

The National Institute for Economic and Social Research (NIESR) said the chancellor should ignore calls by Tory MPs for pre-election tax cuts and instead focus on measures to boost growth through improvements to transport, digital networks, skills and housing.

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Rishi Sunak considers tax cut for top earners after byelection defeats

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Tories may also reduce stamp duty in bid to win back voters and reduce pressure on PM, reports say

Rishi Sunak is considering a tax cut for the 5 million highest earners and reducing stamp duty in an attempt to ease the pressure on his leadership after two historic byelection defeats, it has been reported.

The Conservatives may raise the 40% income tax threshold after Labour’s victory in Mid Bedfordshire, Nadine Dorries’ former seat. It was the largest majority to be overturned at a byelection.

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‘Securonomics’: five key business messages from Labour conference

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With company chiefs in attendance and an endorsement from Mark Carney, shadow chancellor sought to demonstrate economic competence

At every turn in Labour’s annual conference in Liverpool, there are signs of big business on manoeuvres. Exhibition stands for Google, Ineos and Specsavers; slick videos for Amazon and Uber, fringe events sponsored by Deliveroo and Goldman Sachs, while even the parliamentary lounge – a retreat for MPs from the throng of 16,000 delegates – was sponsored by Lloyds Banking Group.

Labour was keen to demonstrate economic credibility by basking in the presence of company bosses. For business leaders, it was a chance to check out a potential government in waiting, with many commenting on the marked contrast with the Conservative conference in Manchester.

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Keir Starmer to promise new powers for all of England’s towns and cities

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Exclusive: Labour leader to pledge biggest expansion of devolution since party was last in power

A new Labour government would give all towns and cities in England new powers and funding to boost local economies, deliver thousands of new homes and create high-quality jobs, Keir Starmer will announce.

In the biggest expansion of devolution since Labour was last in power, he will pledge that councils and combined authorities would get more control over housing and planning, skills, energy and transport of the kind currently held by London, the West Midlands and Greater Manchester.

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Rishi Sunak ‘responsible for biggest income tax rise in at least 50 years’

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Resolution Foundation analysis claims stealth move of freezing tax thresholds will raise £40bn a year

Rishi Sunak’s government is responsible for the biggest income tax rise for decades in a stealth move that will raise £40bn a year, according to new analysis.

Taxpayers in the higher bracket will be handing over £3,700 a year more in tax as a result of a six-year freeze to income tax thresholds by 2027-28, the Resolution Foundation calculated.

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Rishi Sunak claims putting reducing inflation ahead of tax cuts Thatcherite and ‘deeply Conservative’ – UK politics live

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Prime minister says ‘the best tax cut we can give is to cut inflation’ after Michael Gove says taxes should be cut before general election

The BBC’s Sunday with Laura Kuenssberg is starting. As well as Rishi Sunak, Wes Streeting, the shadow health secretary, is also being interviewed.

Q: Do you still think we’ve had enough of experts?

Economic forecasting was invented to make astrology look respectable.

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UK outspends rest of Europe on housing asylum seekers by at least 40% a person

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Exclusive: Report by aid campaign One finds costs now take up nearly a third of the official aid budget

The UK is spending 40% a person more than any other European country on housing asylum seekers with the costs taking up nearly a third of the official aid budget, which forced a 16.4% cut in the amount of aid spent overseas in 2022.

The findings come in a report by One, the aid campaign, which argues the proportion of the aid budget being spent on housing refugees in the UK is totally out of sync with its neighbours and is making the British aid budget both unpredictable and unmanageable

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Scrapping inheritance tax would cost £15bn a year by 2032, says IFS

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Thinktank carried out analysis as calls mount among Tory MPs for the tax to be abolished

Scrapping inheritance tax would cost the government almost £15bn a year in lost revenue by 2032, according to analysis by the Institute for Fiscal Studies that follows calls from Tory MPs for the main tax on inherited wealth to be abolished.

The thinktank said the latest figures from HMRC showed fewer than 4% of estates paid inheritance tax (IHT) in 2020–21, but the rapid growth in wealth among older individuals meant this number was set to rise to more than 7% over the next decade.

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Liz Truss to claim her economic plan would have saved government £35bn

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Former PM set to give speech defending her time in charge and explaining spending decisions

Liz Truss will claim that Rishi Sunak’s government has spent £35bn more than she would have as prime minister, in a speech on Monday.

The short-lived prime minister will use a speech at the Institute for Government to defend and explain her time in charge, nearly a year on from the ill-fated mini-budget that helped end her premiership.

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Scottish public spending deficit falls as oil revenues hit record high

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Both sides of constitutional debate use Gers data to argue case for and against independence

Scotland’s public spending deficit has fallen from a record peak last year, as oil and gas revenues reached their highest-ever level after a global rise in oil prices.

The government expenditure and revenue Scotland (Gers) report calculated a per-person deficit – the gap between the amount raised through all tax and spending on all public services – as £1,521 in the 2022-23 financial year, down from £2,184 the previous year.

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Tax cuts would put ‘scary’ UK finances in greater danger, warns top economist

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Paul Johnson, of the Institute for Fiscal Studies, issues plea for honesty from Labour and the Conservatives about tax and spending choices ahead of election

Unveiling significant tax cuts before next year’s general election would put Britain’s “scary” public finances in further peril and risk the nightmare scenario of even higher interest rates, one of the country’s most influential economists has said.

Paul Johnson, director of the Institute for Fiscal Studies, also made a plea for honesty from both main parties over the profound tax and spending choices they would face should they win power.

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Jeremy Hunt oversaw signing of San Marino low-tax treaty backed by Tory donor

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Exclusive: Maurizio Bragagni, who has given over £700k to Tories and £30k to chancellor, attended event

Jeremy Hunt oversaw the signing of a low-tax treaty with San Marino championed by a leading Tory donor, who with his companies has given more than £700,000 to the party and £30,000 to the chancellor.

Maurizio Bragagni, a prominent businessman and diplomat for San Marino, was present in No 11 when a “double taxation” treaty between the UK and San Marino was signed in May.

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Tax relief system needs overhaul to prevent abuse, say MPs

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Treasury committee report says tax system is too complicated and finds two-thirds of relief policies are uncosted

Almost £200bn of tax reliefs handed to businesses and individuals each year should come under greater government scrutiny to prevent fraud and abuse, according to an all-party group of MPs.

The Treasury committee said in a report published on Wednesday that “a systematic review” into more than 1,000 tax reliefs was needed after MPs found HM Revenue and Customs did not have the resources to monitor how tax breaks and deductions were used.

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Rural bus services hit new low after losing out on post-Covid funding

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More than a quarter of routes in English county and rural areas have been lost over 10 years

Endangered rural bus services have dwindled to a new low after losing out on funding after the pandemic, analysis for councils has shown.

More than a quarter of routes in county and rural areas of England have been lost in the past decade, with passenger numbers falling sharply.

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