Labour needs £25bn a year in tax rises to rebuild public services, warns IFS

Thinktank says tax increases in budget will be necessary even if Rachel Reeves changes fiscal rules

Keir Starmer’s promise to end austerity and rebuild public services will require tax increases of £25bn a year in the coming budget even if debt rules are changed to provide scope for extra investment spending, a leading thinktank has said.

In its preview of the first Labour budget in 14 years, the Institute for Fiscal Studies said Rachel Reeves would need to raise taxes to fresh record levels to meet the government’s policy goals. The chancellor was also warned of the risk of a Liz Truss-style meltdown if the City responded badly to substantially higher borrowing.

Continue reading...

Councils in England draining reserves to stay afloat, leaders say

Survey of 24 city authorities finds two in five plan to sell off assets and reduce services

Local authority leaders say they are having to drain their financial reserves to keep services afloat and avoid effective bankruptcy.

A survey of the mid-tier group of English city councils, which includes Southampton, Hull, Sunderland and Norwich, found that many that had previously avoided financial difficulties during periods of austerity were close to running out of funds.

Continue reading...

Civil service chief backs UK government claim of £22bn shortfall

Simon Case criticises Tory government’s failure to hold regular spending reviews in letter to Jeremy Hunt – who had challenged figure

Simon Case, the head of the civil service, has backed the government’s figures showing that a £22bn shortfall was left by the previous Conservative administration.

The cabinet secretary said the Tories’ failure to hold regular spending reviews had contributed to the financial uncertainty.

Continue reading...

Jack Reacher would not exist without Birmingham’s libraries, says writer

Lee Child says childhood visits to city’s libraries helped him to create protagonist as he laments proposed closures

It is said that heroes are made, not born.

In the case of the fictional ex-military action man Jack Reacher, it has emerged he was made in a library in Birmingham.

Continue reading...

Challenges to deprivation of liberty orders in England soar by a third

Campaigners say vulnerable people receiving care are being deprived of their freedom in order to save money

Growing numbers of vulnerable people receiving care are challenging deprivation of liberty (Dol) orders that can mean they are locked up or kept under restrictive supervision.

Dol orders are meant as a last resort but campaigners say the increase shows that too often people’s freedoms are restricted as a cheaper option.

Continue reading...

Hospital and road projects face cuts to plug £22bn fiscal hole, Reeves says

Social care and winter fuel payments also targeted as chancellor accuses Tories of covering up scale of fiscal shortfall

Rachel Reeves has scrapped the social care cap and curbed winter fuel payments, as well as announcing big cuts to hospital and road projects, as she seeks to plug what she called a £22bn hole in public spending that was “covered up” by the Conservative government.

In a statement to the Commons that mixed detailed economics and partisan politics, the chancellor justified the cuts with the repeated mantra: “If we cannot afford it, we cannot do it.”

Continue reading...

UK spends more financing inequality in favour of rich than rest of Europe, report finds

Inequalities of income, wealth and power cost UK £106.2bn a year compared with average developed OECD country

The UK spends more than anywhere else in Europe subsidising the cost of structural inequality in favour of the rich, according to an analysis of 23 OECD countries.

Inequalities of income, wealth and power cost the UK £106.2bn a year compared with the average developed country in the Organisation for Economic Co-operation and Development (OECD), according to the Equality Trust’s cost of inequality report.

Continue reading...

Councils ‘on their knees’ as they face record £3.5bn funding shortfall

Research finds 114 councils in England, Scotland and Wales facing budget gaps of more than £10m

Councils are facing a record cash shortfall of more than £3.5bn in the coming year with jobs and services facing cuts, according to analysis.

Data compiled by Unison, the trade union, found that there were 114 councils in England, Scotland and Wales – almost a third – facing shortfalls of more than £10m. It said 15 councils were likely to be in the red by more than £40m next year.

Continue reading...

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

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.

Continue reading...

‘Hitlist’ of private schools criticised and businesses and public sector join outcry over Victorian budget

New tax measures and job cuts to help repay state’s Covid debt spark criticism from multiple groups

Victorian private schools are among a chorus of critics of the state’s latest budget, after payroll exemption for schools with “high fees” was cut and landlords and big businesses were hit by new taxes.

To help repair the state’s budget bottom line, the Andrews government on Tuesday revealed more than 100 private schools will no longer be shielded from payroll tax in a budget measure the opposition and independent education sector warns will lead to higher fees for parents.

Sign up for Guardian Australia’s free morning and afternoon email newsletters for your daily news roundup

Continue reading...

Thames Water’s real-time map confirms raw sewage discharges

Effluent in Gloucestershire river pinpointed by digital map as water companies accused of routinely pumping out waste to rivers

The market town of Fairford, nestling in the Cotswold hills, is perhaps best known for its church, which has the only complete set of mediaeval stained glass windows in England.

But thanks to a more modern phenomenon, an interactive digital map produced by Thames Water, the Gloucestershire town, with its traditional honey coloured limestone houses, is becoming better known for its continuous, gushing, raw sewage overflow.

Continue reading...

Is the UK really facing a second winter of discontent?

Comparisons with 1979 are misleading – strikes over pay now are smaller in scale and focus, and stoked by inflation

Britain is facing a winter of strikes, as industrial action on the railways spreads to the health service and other key sectors of the economy. Such is the wave of discontent that more than 1m working days could be lost to disputes in December, the most since 1989, during Margaret Thatcher’s final years in power.

With inflation at the highest rate in 41 years amid the cost of living crisis, it’s not difficult to see why workers are pushing for better pay. Coming after the worst decade for average wage growth since the Napoleonic wars, including deep real-terms pay cuts for many in the public sector, it’s even less surprising still.

Continue reading...

English councils warn of ‘existential crisis’ caused by funding shortfall

Local Government Association says any attempt to patch up budgets by raising council tax is doomed to fail

Local authorities have warned they face an “existential crisis” caused by massive funding shortfalls and any attempt by ministers to patch up budgets by allowing increased council tax is doomed to failure.

The multibillion “black hole” in England’s municipal finances – which has pushed a number of councils to the brink of bankruptcy – could not be fixed by local ratepayers alone, who would face unrealistic council tax increases of up to 20%, the Local Government Association (LGA) said.

Continue reading...

Liz Truss insists tax cuts will go ahead despite public spending promise

PM suggests borrowing will rise as she surprises MPs by saying she has no plans to cut public spending

Liz Truss has said the Conservatives will push ahead with tax cuts without cutting public spending, instead allowing borrowing to rise over the next few years.

Senior economists had warned on Wednesday that such a strategy, if set out by Kwasi Kwarteng in the chancellor’s fiscal plan at the end of this month, would be likely to spook investors, creating renewed market turmoil.

Continue reading...

Public sector job losses could pass 100,000 if government refuses pay rises, says IFS

Chancellor must top up budgets or face industrial action and further recruitment issues, thinktank warns

More than 100,000 public sector workers would lose their jobs this year if the government refuses to fund higher than expected pay awards for nurses, doctors, teachers and care workers, according to the Institute for Fiscal Studies.

The IFS said the chancellor, Kwasi Kwarteng, faced a choice of either topping up public sector budgets or accepting the likelihood of industrial action, further problems recruiting and retaining staff, and a decline in quality of services already under extreme strain.

Continue reading...

Truss suffers setback as criticism of civil service pay plan brings U-turn

Foreign secretary forced to abandon policy amid widespread criticism from within Conservative party

Liz Truss suffered a humiliating setback in her bid to become the next prime minister on Tuesday, as she was forced into a U-turn on civil service pay after a backlash from within her own party.

The foreign secretary swiftly abandoned the cornerstone of her plan for a “war on Whitehall waste” when it was revealed it could lead to pay cuts for millions of teachers, nurses and police officers.

Continue reading...

Schools and libraries face huge cuts after soaring costs create £1.7bn shortfall

Exclusive: Emergency council cuts feared across England caused by inflation and higher energy costs

School-building projects, swimming pools and libraries have been earmarked for emergency funding cuts because town halls have been hit by an unexpected £1.7bn hole in their budgets, the Guardian can reveal.

Rampant inflation and soaring energy bills mean that council leaders have been forced to rip up financial plans from a few months ago, with higher than anticipated staff pay bills also contributing to their newfound deficits. Without help from Whitehall, it will leave them no option but to cut services and put up council tax next April.

Continue reading...

Local government in England ‘hollowed out’ under Conservatives

Major report finds poorer areas worst affected by deep cuts in government funding

Poorer areas have been hit disproportionally by a combination of cuts to neighbourhood services such as parks, libraries, refuse collection and children’s centres that have left English councils “hollowed out” since 2010, a major report into local government has concluded.

The study by the Institute for Government thinktank found that while some councils coped better than others, and reduced spending did not necessarily mean worse results, a lack of information made it difficult to learn lessons.

Continue reading...

The urinary leash: how the death of public toilets traps and trammels us all

Britain has lost an estimated 50% of its public toilets in the past 10 years. This is a problem for everyone, and for some it is so acute that they are either dehydrating before going out or not leaving home at all

For about an hour and a half before she finishes work and gets the bus home, Jacqui won’t eat or drink anything. Once, while waiting at the bus stop, and suddenly needing the loo, she had to head to the other end of town; the public toilets nearby had closed. She didn’t make it in time. Jacqui, who has multiple sclerosis, which can affect bladder and bowel function, says: “I go everywhere with a spare pair of knickers and a packet of wipes, but it’s not something you want to do if you can help it.”

Jacqui was diagnosed with MS five years ago, and in that time she has noticed a decline in the number of public toilets. Of the ones that are left, one only takes 20p coins, “and in this increasingly cashless society, you have to make sure you always go out with a 20p”. The other block of loos are “up two flights of stairs or the lift, so it’s not the most suitable access”. If she is out for the day, she will research where the loos are, and it has meant missing out on trips with friends, such as to an outdoor festival, where the loos just weren’t accessible enough. The MS Society has given her a card, which she shows in cafes requesting access to their loos when she’s not a customer, and every person she has flashed it to “has been wonderful”. But, she adds: “You use it as a last resort because you don’t really want to burst into a cafe in front of people and say: ‘Excuse me, I need to wee.’”

Continue reading...

Peterborough prepares for byelection that could elect first Brexit party MP

A decade ago it was the UK’s fastest growing city, but hit by cuts and buy-to-let, support for Nigel Farage’s party is high

On Thursday, voters in Peterborough will take part in one of the most intriguing parliamentary byelections in recent memory. The constituency saw a knife-edge duel between Labour and the Conservatives at the 2017 general election and at last month’s European poll, 38% of voters in the city backed the Brexit party. A first seat in the House of Commons for Nigel Farage’s party is a distinct possibility. If that happens, it will send tremors through middle England, of which Peterborough is typical in many ways, not just geographically.

Economically, Peterborough performs averagely amid struggles with productivity. Wages are stagnant and it has been reshaped by migration, with foreigners arriving to work in the surrounding farmlands and distribution depots, contributing to a decade as the UK’s fastest growing city between 2001 and 2011.

Continue reading...