Increase to £17.8bn is well above City forecasts and is highest December figure for four years
UK government borrowing jumped unexpectedly to £17.8bn last month, piling pressure on Rachel Reeves to plan budget cuts before a spending review in the summer.
The figure was about a quarter higher than the City had forecast and was up by £10.1bn more than in the same month a year earlier, making it the highest December borrowing for four years.
Continue reading...Home secretary also says inquiry into the attack will cover wider threat posed by youth violence
Starmer says nothing will be off the table in the inquiry.
There are also questions about the accountability of the Whitehall and Westminster system – a system that is far too often driven by circling the institutional wagons, that does not react until justice is either hard won by campaigners, or until appalling tragedies like this [take place].
Time and again we see this pattern, and people are right to be angry about it. I’m angry about it.
There are also bigger questions, questions such as how we protect our children from the tidal wave of violence freely available online.
Because you can’t tell me that the material this individual viewed before committing these murders should be accessible on mainstream social media platforms, but with just a few clicks, people can watch video after horrific video – videos that, in some cases, are never taken down,
Continue reading...Exclusive: Restoration fund in England could be ‘siphoned off’ to be used for general government spending, not repairing rivers
Rachel Reeves’s Treasury is looking to keep millions of pounds levied on polluting water companies in fines that were meant to be earmarked for sewage cleanup, the Guardian has learned.
The £11m water restoration fund was announced before the election last year, with projects bidding for the cash to improve waterways and repair damage done by sewage pollution in areas where fines have been imposed.
Continue reading...Scottish Labour, Greens and Lib Dem MSPs accuse first minister of ‘creating false narrative’
John Swinney, Scotland’s first minister, will warn opposition parties that they will fuel populist forces if they prevent his budget from being passed this month.
In a keynote speech in Edinburgh on Monday to mark the new year, Swinney will say Scottish voters would be astonished and public services damaged if MSPs fail to allow the budget to go through.
Continue reading...Government accuses Tories and rightwing media of being ‘out of touch’, as VAT policy due to come into force
The government has accused critics of its plan to put VAT on private school fees of being detached from the real world after polling showed the policy, which will come into force on 1 January, is strongly backed by the public.
The poll, commissioned by the Private Education Policy Forum (PEPF) thinktank, found that 54% of people backed the idea, with 22% opposing it. This is an even greater margin of support than seen in similar polls carried out before the election.
Continue reading...PM expected to set target to carry out 92% of routine operations and appointments within 18 weeks
NHS bosses are said to be privately concerned about Keir Starmer’s ambitious targets to cut waiting lists for routine operations, set to be announced later this week, which will also include specific targets on living standards and housebuilding.
The prime minister is expected on Thursday to set a target for 92% of routine operations and appointments to be carried out within 18 weeks, one that has not been achieved in almost a decade, the Times has reported.
Continue reading...Groups providing vital services say impact of tax and minimum wage rises will lead to cutbacks
Charities have warned of “life-changing consequences” for a million vulnerable children and adults as a result of cuts to state-funded disability services driven by tax changes and wage rises announced in the budget.
The Voluntary Organisations Disability Group (VODG), which represents 100 charities in England, said Rachel Reeves’s decision to raise employers’ national insurance contributions (NICs) had been “ill thought through” and would put many local charity services at risk.
Continue reading...Care providers, GPs and pharmacists warn increased costs will cause cuts and job losses
Services that support some of England’s most vulnerable people have warned that tax increases in the budget will lead to cuts and closures that could devastate the charity sector.
Although the NHS and councils are protected from the impact of the rise in employers’ national insurance contributions (NICs) announced in Wednesday’s budget, charities that provide services say the increase means they will face “existential” financial pressures.
Continue reading...Warning from comes after Rachel Reeves’s record tax-raising budget sent tremors through financial markets
Rachel Reeves has been warned an extra £9bn of tax rises may be required to avoid a fresh austerity drive in key public services as her record tax-raising budget sent tremors through the financial markets.
Threatening to undermine the chancellor’s claim that her budget would restore economic stability to Britain, government borrowing costs rose sharply in the City on Thursday as traders turned on Reeves’s tax and spending measures.
Continue reading...Labour said it would bring taxation of performance-related pay in the industry in line with others – but the chancellor had a change of heart
It has been almost two decades since Nicholas Ferguson, a grand figure in the private equity business, caused a storm by talking out loud about his industry’s dirty little secret. It could not be right, he said, that highly remunerated private equity executives could pay less tax than a cleaner or other low-paid workers.
Things have moved on a bit since 2007. So-called “carried interest”, or carry – the portion of an investment profit that the private equity managers retain as a bonus for success – is now taxed at 28% under the capital gains regime; in the old days, rates in effect as low as 10% could be secured thanks to various exceptions.
Continue reading...Independent Schools Council says its focus is on children and it is concerned about impact on specialist schools
The Independent Schools Council (ISC) has said it will launch legal action against the government’s decision to impose VAT on independent school fees.
The council, which represents more than 1,400 private schools in the UK and abroad, reached its decision after a board meeting held on Thursday.
Continue reading...Institute for Fiscal Studies says budget ‘looks like the same silly games’ as seen under the Conservatives
Rachel Reeves is now being interview on ITV’s Good Morning Britain.
She is being interviewed by Ed Balls, the former Labour shadow chancellor who is now a TV presenter. He asks her to confirm that workers will end up losing out because of the employers’ national insurance contributions (NICs) increase.
Continue reading...Chancellor also criticised for letting the very rich off the hook with a lower than expected rise in capital gains tax
Tax rises aimed at inherited wealth are at risk of backfiring, after the chancellor was accused of betraying small family businesses while letting private equity bosses off the hook.
Labour’s first budget in 14 years included measures to close inheritance tax (IHT) loopholes and press ahead with scrapping the controversial non-dom tax status, as well as levying higher taxes on private jet flights.
Continue reading...Forecaster says extra spending revealed by Rachel Reeves will give only a short-term lift to economy
Labour has embarked on a “large, sustained increase in spending, tax and borrowing”, according to the government’s economic forecaster, as it judged that Labour’s first budget for 15 years is unlikely to increase economic growth over the next five years.
Assessing Rachel Reeves’s policies, the Office for Budget Responsibility (OBR) said the economy would expand at the same rate as predicted in March by the end of the parliament, despite a £70bn-a-year rise in spending.
Continue reading...The government knows cynical voters will need to see tangible change in public services and to feel better off
At the final political cabinet before Rachel Reeves delivered her first budget this week, ministers were presented with internal party research on what the public was expecting.
In the months since the general election, they had been fed a regular diet of gloomy warnings about the state of the economic inheritance and, more recently, high levels of pre-budget news coverage, so it was firmly on their horizon.
Continue reading...UHY Hacker Young says 92 companies have delisted and only 10 floated on junior stock market in past year
The UK’s Alternative Investment Market (Aim) has shrunk to its smallest size in 23 years as business owners and investors anticipate an abolition of inheritance tax relief in the budget this week.
The accountancy group UHY Hacker Young calculated that 92 companies have delisted from Aim, London’s junior stock market, in the past year, reducing the total number of companies on Aim to 695.
Continue reading...The chancellor says she will invest to reverse Tory decline, but stands accused of breaking party manifesto promises
Labour will launch a new era of public and private investment in hospitals, schools, transport and energy as momentous as any in the party’s history in this week’s budget, the chancellor, Rachel Reeves, has said.
In an interview with the Observer before the first budget by a female chancellor, Reeves draws comparisons with Labour’s historic reform programmes begun in 1945 by Clement Attlee, in 1964 under Harold Wilson and in 1997 under Tony Blair.
Continue reading...Chancellor said to be planning measures including raising employer NI contributions and capital gains tax rates. We consider the likelihood of each and the potential for a row
During the general election campaign, Paul Johnson of the Institute for Fiscal studies repeatedly accused both main parties of indulging in a “conspiracy of silence” over their economic policies. Neither Labour nor the Tories would admit, he complained, that if they won they would have to announce huge tax rises or spending cuts to restore the public finances to anything resembling good health.
On Wednesday, 118 days after Labour won the election, Rachel Reeves will prove Johnson right. In her first budget she will spell out plans to raise an eye-watering sum of about £40bn from tax rises and spending reductions to wipe the slate clean and to pump funds into public services. She will also confirm changes to debt rules that will release up to £50bn more to borrow for long-term investment in new national infrastructure.
Continue reading...Chancellor pledges to spend, but says there will be no Truss-style splurge when she changes fiscal rules in budget
Rachel Reeves will pledge to reverse huge cuts in public investment in her budget next week after she confirmed that rules limiting her spending power will be overhauled to enable the government to release as much as £50bn for infrastructure spending.
The chancellor said she would revise how the Treasury calculated shortfalls in the government budget over the rest of the parliament to free up funds to invest in public infrastructure.
Continue reading...Bank expects ‘constructive, pro-growth agenda’ by chancellor next week and seeks to be part of it
Lloyds Banking Group has backed the Labour government’s forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a “constructive, pro-growth agenda”.
The chief financial officer of the UK’s biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in key areas such as energy, infrastructure and housing.
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