Starmer says budget did not break manifesto tax pledge – as it happened

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.

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Rachel Reeves targets UK’s wealthiest in £26bn tax-raising budget

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.

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Starmer says welfare concessions are ‘common sense’ but dodges funding question – UK politics live

No 10 has offered significant concessions to the rebels, estimated to cost around £3bn a year, amid fears over Tuesday’s vote

Stephen Kinnock, the care minister, was the government voice on the airwaves this morning. Here are the main points he made about the welfare bill U-turn.

Kinnock rejected claims that the U-turn was a sign of weakness. When it was put to him on the Today programme that this move, coming after the U-turns on winter fuel payments and a national inquiry into grooming gangs, showed that if Keir Starmer was pushed, he would give in, Kinnock replied:

I think if you talk to people out there in the country, they respond very positively to politicians listening, engaging, recognising that you don’t get everything right from day one every time, and making the adjustments and the changes that are needed.

And this prime minister will always put the country first. He puts country before party, and he does the right thing for the country.

He defended having a “staggered” approach to changing benefit rules. Asked about the Tory claim that the government was creating a “two-tier benefits system” (see 8.30am), he replied:

Whenever you bring forward change to a complex system, you always have to decide between do you make the change for everybody that’s in that system, in one big move, or do you do it in a more staggered way? What’s clear from the announcement today is that it’s going to be a more staggered process.

He declined to say how much the U-turn would cost. He told Times Radio:

The full details around what we are laying out, what I’ve summarised really today, is going to be laid out in parliament, and then the chancellor will set out the budget in the autumn the whole of the fiscal position and this will be an important part of that.

He said he was now confident that the UC and Pip bill will pass its second reading on Tuesday.

All of the MPs I’ve spoken to who signed the reasoned amendment – MPs from across the party, not just on the left – are sticking to their position because we understand that we are answerable to our constituents.

If the government doesn’t pull the bill, doesn’t consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.

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Starmer unlikely to fulfil pledge on hospital waiting times, says IFS

Thinktank predicts PM will not realise ambition for 92% of patients in England to wait less than 18 weeks for planned care by 2029

Keir Starmer is unlikely to fulfil his pledge to restore the maximum 18-week wait for planned hospital care before the next election, a leading thinktank has said.

The prime minister has made bringing back the 18-week access standard in England, by ensuring that 92% of patients are seen within that time, one of the six “milestones” he has promised to achieve by 2029.

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Assisted dying bill has lost Commons majority now high court signoff abandoned, says MP – UK politics live

Danny Kruger says those who backed the bill did so under false premise after change to safeguards announced

There will be two urgent questions after 12.30pm: on the Clonoe inquest, which found that the SAS acted unlawfully when they killed four IRA terrorists in an ambush in 1992; and then another on the US steel tariffs.

A Northern Ireland Office minister will respond to the first, and a business minister will respond to the second.

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Reeves’s long-term spending figures almost as unrealistic as Tories’ were, IFS says – UK politics live

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.

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Rachel Reeves may have to find more money to fix public services, says IFS

Institute for Fiscal Studies says budget allows for rise in public service spending this year and next, but not thereafter

Rachel Reeves could be forced to find more money to fix public services after her budget made a start at reversing the “unrealistic” and irresponsible spending plans of the Conservatives, the Institute for Fiscal Studies (IFS) has said.

Britain’s leading experts on the government’s finances said the chancellor’s tax measures on Wednesday had allowed for a substantial short-term increase in public service spending this year and next, but not thereafter.

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Jeremy Hunt claims Labour changing debt definition will ‘punish families with mortgages’ – as it happened

Former chancellor says ‘increasing borrowing means interest rates would be higher for longer’ as Reeves says it will ‘make space for investment’

Nigel Farage, the Reform UK leader, has said that “no one knows” who Robert Jenrick, the Tory leadership contender, is.

Of the two candidates left in the contest, Jenrick is the one who is doing most to appeal to Tories who defected to Reform UK, because he is saying Britain should leave the European convention on human rights.

I know the fella. Is he the chap that one day was on the very much on the left of the Conservative party and is now on the right of the Conservative Party?... No one knows who he is.

I’m sure government can agree that support and providing opportunities for young people should be central to the policy of any government. We are glad to see the government working to build closer economic and cultural ties with Europe. We want to forge a new partnership with our European neighbours, built on cooperation, not confrontation and move to a new comprehensive agreement.

We must build rebuild confidence through seeking to agree partnerships or associations helping to restore prosperity and opportunities for British people.

We are not going to give a running commentary on the negotiations. We will obviously look at EU proposals on a range of issues, but we are clear that we will not return to freedom of movement.

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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.

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Scottish government announces spending cuts worth £500m – as it happened

Shona Robison, Scottish finance secretary, says current financial situation facing Scottish government is ‘not sustainable’

Tom Tugendhat, the former security minister, is launching his campaign for the Tory leadership. There is a live feed here.

Tugendhat started by saying that he did not actually want the job, because he does not want to be leader of the opposition. He wants to be prime minister, he said.

Politics is not a game, and we all know the cost when government isn’t sober and serious. We saw it in the lives lost in Afghanistan and then in that wasted chaos of that withdrawal. We saw it during Covid, not just in the lost years of education that cost so many or the opportunities missed, or even in the grief for lost loved ones or those left to cope alone, but through the disrespect.

That’s why I’m standing before you today, because this country can change. We must change, and Britain deserves better, and we need a different government.

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Former Sunak adviser urges Labour to introduce wealth tax on housing

The economist behind the Covid furlough scheme has called for ‘unfair’ council tax and stamp duty to be axed

Council tax and stamp duty are “unfair and unpopular” taxes that should be abolished, says the economist who devised the Covid furlough scheme.

Tim Leunig, who has advised a series of cabinet ministers, including Rishi Sunak during his prime ministership, said it was time for a new and radical approach that would axe the two taxes and replace them with proportional levies.

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UK recovery ‘will accelerate and force Bank to keep interest rates higher for longer’

Niesr forecasts raise doubts over chance of further cuts by Bank of England before end of year

The UK’s economic recovery will accelerate over the next year, forcing the Bank of England to keep interest rates higher for longer, according to the National Institute of Economic and Social Research (Niesr).

Signalling that bets on further interest rate cuts before the end of the year could be misplaced, the thinktank said a modest economic recovery and the threat from persistent inflationary trends should make the central bank more cautious about reducing the cost of borrowing.

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Labour facing moment of truth over tax pledges, economists warn

Experts say 5.5% pay increase for public sector not ‘consistent’ with spending plans that rule out tax rises

Labour is fast approaching a moment of truth over its election pledges on tax and spending, experts have warned, after Rachel Reeves indicated the government could agree above-inflation pay rises for public sector staff.

The chancellor promised a full statement on pay board recommendations that teachers and NHS workers should receive 5.5% pay awards, ahead of an autumn budget that is set to be one of the most difficult economic balancing acts in years.

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Sunak defends decision not to take immediate action against Tories in betting scandal – as it happened

Prime minister faces claim Tories are ‘stealing the candlesticks’ on the way out of government

After a passage in his speech attack Labour on familiar grounds, Rishi Sunak also hit out at Reform UK.

[Reform UK] are not on the side of who you think they are.

Reform are standing candidates here in Scotland that are pro independence and anti monarchy.

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Next government faces hard choices on English universities, say experts

Ministers left with unpalatable options of raising tuition fees, making grants or capping student numbers, says IFS

The next government faces “unpalatable” choices between raising tuition fees, making direct grants or capping student numbers to rescue universities in England from their financial black hole, the Institute for Fiscal Studies has warned.

The thinktank said universities that relied on teaching UK students for the bulk of their income were most vulnerable, calculating that undergraduate tuition fees would now be £12,000 if they had kept pace with inflation, rather than the £9,250 rate frozen since 2016.

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Tory government ‘worst in postwar era’, claims expert study – as it happened

Sir Anthony Seldon leads analysis that concludes that equality, growth and the UK’s standing in the world have all declined since 2010

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And here are some of the best pictures from yesterday’s campaigning. As more voting people than ever appear poised to turn away from the Tories, Sunak appeared in several photographs with sheep and lobsters as he visited North Devon, held by the Tories since 2015. The Guardian’s Archie bland named the sheep the “Dubious photo opportunity of the day”, after the sheep ran away:

Starmer, meanwhile, appeared on LBC where he clarified that Premier League Football Clubs would not be subject to a 10% transfer tax to fund clubs lower down the pyramid. “Let me just kill it dead, we’re not looking at that,” Starmer said. He also visited a tennis club and a pub in Reading West and mid Berkshire.

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‘Glacial’ progress on levelling up in UK means more resources needed, says thinktank

Institute for Fiscal Studies praised Conservatives’ ambition but said by some measures gap had widened

Progress towards a series of levelling up goals set by the UK government has been “glacial”, and achieving them by the target date of 2030 will require a big increase in resources for struggling areas, a leading thinktank has said.

The Institute for Fiscal Studies (IFS) said that, on many measures, regional inequality had widened and the UK had gone into reverse.

The share of pupils in England meeting expected standards at the end of primary school dropped from 65% in 2018–19 to 60% in June 2023, against a target of 90% by 2030. In only 10 English local authorities – all in London – did at least 70% of 11-year-olds meet this target.

The total number of further education and skills courses completed in England fell by 14% between 2018–19 and 2022–23. In the lowest skilled areas, the decline was almost 20%. The goal for 2030 is to have 200,000 more people successfully completing high-quality skills training annually, driven by 80,000 more people completing courses in the lowest skilled areas.

A 21-percentage-point gap in the average employment rate between the best and worst-performing local authority areas in the UK – the widest it has been since at least 2005. The aim is to have rising pay, employment and productivity in every area of the UK, and a smaller gap between the top performing areas and others.

The Conservatives’ aim is for local transport connectivity across England to be significantly closer to the standards of London, but the gap between the use of public transport in London (39% of journeys) and in the rest of the country (7%) during 2022-23 was at its second-widest level since 2002–03, as passenger numbers failed to recover to pre-pandemic levels.

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Starmer faces further calls for Labour to axe two-child benefit cap

IFS research shows 670,000 more children will be hit by policy by end of next parliament if limit stays in place

Keir Starmer is facing renewed pressure to scrap the two-child benefit limit, as research reveals that 250,000 more children will be hit by the policy over the next year alone.

Labour’s manifesto for government, published last week, included the promise of an “ambitious strategy to reduce child poverty”, but no mention of the two-child limit.

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General election live: Green party defends ‘ambitious’ spending plans at manifesto launch

The Greens’ spending commitments include £50bn for the NHS and £29bn to insulate homes

In an interview with ITV due to be broadcast on Wednesday evening, Rishi Sunak says he went without “lots of things” as a child, including Sky TV.

Sunak was pressed in the interview by the ITV journalist Paul Brand to give examples of things he didn’t have a child to which he replied: “There’ll be all sorts of things that I would’ve wanted as a kid that I couldn’t have. Famously, Sky TV, so that was something that we never had growing up actually.”

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Harder to own your first home under the Tories, Rishi Sunak admits – UK politics as it happened

PM acknowledges in BBC Panorama interview to air tonight that it is a challenge for people to buy their first home

Davey sums up the Lib Dems’ plans on health and social care

And he says he wants to mention one other policy he is particularly proud of – the proposal to give proper bereavement support to parents whose partners have died.

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