UK house prices rise in February as chancellor avoids ‘negative speculation’

Rachel Reeves’ upcoming spring forecast has not led to slowdown, as property tax rumours did in November

House prices in the UK increased in February as Rachel Reeves avoided a repeat of the pre-budget “negative speculation” that depressed the market, as she prepares to present the spring forecast on Tuesday.

The average price of a home rose to £273,176 last month, up by 0.3% from the month before, Nationwide said. It matched January’s monthly increase, and was above analysts’ forecasts of a 0.2% gain. The annual growth rate remained steady at 1%, the country’s biggest building society said.

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People deriving income solely from state pension won’t be taxed, says chancellor

Clarification creates prospect of two-tier system for retirees solely on new state pension and those on private schemes

People who rely only on their state pension for their income will not have to pay tax on it, the chancellor, Rachel Reeves, has said, creating the prospect of a two-tier system for those in retirement.

The new state pension is poised to rise to £241.30 a week next April, putting the annual income for someone receiving the standard payment at £12,547 – just below the personal tax allowance of £12,570 a year.

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‘Delays inevitable’: Starmer leadership safe until May elections, say Labour MPs

While some call budget ‘tactical victory’, few MPs believe it is enough for Labour to beat Reform

Labour MPs have said they believe Keir Starmer’s leadership is safe until at least the May elections, after a budget that avoided any major damaging measures but which few MPs believe will revive the party’s fortunes.

More than a dozen previously loyal MPs told the Guardian they did not believe the budget would shift the fundamentals required for the party to beat Reform. “It only delays what is inevitable,” one minister said.

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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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Reeves’s plan to cut cash Isa limit could raise mortgage rates, say finance bosses

Building societies fear consumers will be put off from saving if chancellor’s budget announces a 40% reduction

Rachel Reeves’s plan to slash the annual cash Isa limit by 40% could lead to higher mortgage rates and deter consumers from saving, finance bosses have said.

The chancellor is expected to cut the maximum amount people can put into tax-efficient cash individual savings accounts from £20,000 a year to £12,000 in Wednesday’s budget.

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Rachel Reeves promises to ‘grip the cost of living’ in autumn budget

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.

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Asking prices fall as UK housing market hit by budget speculation, Rightmove says

November drop of 1.8% is biggest for this time of year since 2012, with chancellor’s plans looming

Budget speculation has depressed the UK property market, figures from a leading property website have suggested, with asking prices slipping in the run-up to Rachel Reeves’s much anticipated fiscal set piece on 26 November.

The average new seller asking price fell by 1.8%, or £6,589, month on month in November, the figures collated by the property website Rightmove set out, taking the average price tag on a British home put up for sale to £364,833.

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Rachel Reeves to abandon plans to raise income tax rates in budget

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.

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Lucy Powell says Labour must stand by promise not to raise key taxes

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”.

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NatWest boss warns against higher bank taxes as lender’s profits rise 30%

CEO says fiscal discipline should be balanced with ‘policies that create stability, consistency and support growth’

NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.

Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.

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UK inflation unexpectedly remains at 3.8% for third month in a row

Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

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Rachel Reeves says higher taxes on wealthy ‘part of the story’ for November budget

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.

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UK bank shares tumble after call for windfall tax on lenders in budget

Investor jitters follow report by IPPR, with stock market value of sector cut by almost £8bn in morning trading

UK bank shares tumbled on Friday, cutting the stock market value of the sector by almost £8bn in morning trading, as fresh calls for a windfall tax on large lenders in the autumn budget spooked investors.

Calls for a tax grab, in a paper written by the Institute for Public Policy Research (IPPR) thinktank, took a toll on some of the UK’s biggest high street banks. NatWest Group suffered the biggest drop on Friday morning, registering a decline of as much as 5% in its share price, while Lloyds Banking Group and Barclays followed close behind, falling 4.5% and 3.6% respectively. HSBC dropped more than 1%.

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Pre-budget lift for Rachel Reeves as UK business confidence rises

Despite concerns about economy, poll shows optimism about trading prospects at highest level since 2014

Confidence among UK businesses has grown despite anxiety about the state of the economy, in a rare slice of positive news for the chancellor, Rachel Reeves, in the run-up to her autumn budget.

An August poll of UK companies by Lloyds Bank showed that improved sentiment among manufacturers and retailers helped push overall optimism within UK plc up by two percentage points, with 54% of companies now feeling confident in the current environment.

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Treasury targeting inheritance tax reforms to help plug UK deficit

Exclusive: Chancellor also looking at tweaks to capital gains tax to try to bridge £40bn-plus spending gap before budget

The Treasury is looking at ways to raise more money from inheritance tax amid growing pressure on the country’s finances ahead of the autumn budget, sources have told the Guardian.

Officials have been tasked with examining whether tightening rules on the gifting of money and assets could be one way of addressing a gap between revenue and spending that is estimated to reach more than £40bn.

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Rachel Reeves needs to put up taxes to cover £40bn deficit, thinktank says

NIESR suggests a rise of 5p in the pound on basic and higher rate of income tax would fill the budget gap

Rachel Reeves will need to raise taxes to close a government spending gap that is on course to reach more than £40bn after a slowdown in economic growth and higher-than-expected inflation, according to a leading thinktank.

In a blow to Labour’s hopes of balancing the books without breaking manifesto commitments ruling out personal tax rises, the National Institute of Economic and Social Research (NIESR) said a number of factors would knock off course the chancellor’s plans to stay within Whitehall spending limits.

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HSBC boss says Rachel Reeves putting up bank taxes would harm UK growth

Georges Elhedery’s comments come amid speculation the chancellor could make such a move in autumn budget

The boss of HSBC has joined a growing chorus of bankers cautioning Rachel Reeves against increasing taxes on banks in her autumn budget, warning it risked “eroding” investment and ultimately harming UK growth.

Georges Elhedery, its chief executive, said banks in the UK were already subject to the highest level of taxes on profits compared with other sectors, and paid more than in most other countries. He said placing further financial pressures on lenders could spell trouble for the UK economy.

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Frasers Group sales fall amid ‘challenging’ luxury market and retreat from gaming

Pre-tax profits fall 24% despite rise in Sports Direct sales, driven by closures of House of Fraser and Game stores

A “challenging” luxury market and retreat from gaming have prompted a fall in sales and profits at Mike Ashley’s Frasers.

The group, which is majority owned by the billionaire former Newcastle United owner, said sales fell by 7.4% to £4.7bn and pre-tax profits slid by 24% to £379.5m as it closed some of its House of Fraser department stores and Game video game shops.

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UK asking other countries to host ‘return hubs’ for refused asylum seekers, Starmer confirms – UK politics live

PM on trip to announce increased cooperation against people smugglers alongside Albania’s prime minister, Edi Rama

All Commons Speakers, at least for the past 30 years, have complained about the government making major announcements to the media first, and not to parliament first. But rarely have any of them sounded quite as furious about this as Lindsay Hoyle, who this morning delivered an extended reprimand to the government about this at the start of an urgent question.

The UQ was about plans to limit the use of prison recall – something announced by the justice secretary, Shabana Mahmood, at a press conference yesterday, while the Commons was still sitting. After pointing this out, and reminding MPs that details of the immigration white paper were given to the media extensively, long before the ministerial statement about it was delivered in the Commons on Monday, Hoyle went on to imply that, as well as regularly breaking the ministerial code, ministers were also guilty of hypocrisy. He said:

I note that those who now occupy senior ministerial roles were not slow to complain when the previous government made major policy announcements outside this house.

I will continue to uphold and defend the rights of this house, the rights of backbenchers, to be here, and hear it first, the most important announcements of government policy, and the right of honourable members to question ministers on those announcements in person.

When Parliament is in session, the most important announcements of government policy should be made in the first instance in Parliament.

If the government is not going to take the ministerial code seriously, who will?

I’ve got to say, I don’t like this. I believe I am here to represent all backbenchers and backbenchers have the right to ask questions. I’m not interested in Sky News or the BBC or political programmes. I’m here to defend all of you. I will continue to defend. Please do not take MPs for granted. It is not acceptable.

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Reeves may have to find further cuts and tax hikes amid economic gloom

Rising costs and global uncertainty may force chancellor to turn to pensioners and wealthier taxpayers

Ministers may have to target pensioners and wealthier taxpayers at the autumn budget, as senior government figures voiced fears brutal welfare reforms would still not go far enough to tackle rising costs.

The Institute for Fiscal Studies warned the chancellor may be forced to consider a freeze on tax thresholds, hikes to capital gains and potentially pension taxes.

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