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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Civil service to be told to slash more than £2bn a year from budget by 2030

Departments will be asked next week to reduce spending by 10% by 2028-29, says Cabinet Office source

The civil service will be told to slash more than £2bn a year from its budget by the end of the decade as part of the government’s spending review, with unions warning of significant job losses, the Guardian understands.

The Cabinet Office will tell departments to cut their administrative budgets by 15%, which is expected to save £2.2bn a year by 2029-30.

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UK drops down list of affluent nations after decade of stagnation, NIESR finds

Districts in Birmingham now ranked below poorest areas of France, Malta and Slovenia as institute urges rethink on planned welfare cuts

The UK has tumbled down the league of affluent nations after almost a decade of welfare cuts and stagnant incomes, according to a report that found the poorest districts in Britain now rank below the lowest-income areas of Malta and Slovenia.

In a warning for ministers to protect welfare spending before Rachel Reeves’s spring statement later this month, the National Institute of Economic and Social Research (NIESR) said the UK’s reputation for high living standards was under threat.

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Rachel Reeves standing firm against U-turn on inheritance tax for farmers

Chancellor understood to be determined to keep policy despite Treasury analysing ways to soften impact

Rachel Reeves is holding firm against a U-turn on inheritance tax for farmers, despite the Treasury analysing ways of softening the impact.

The chancellor is understood to be determined not to drop the policy even though some Labour MPs – and even ministers – are worrying about the political fallout that has led to farmers protesting in Westminster this week.

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UK environment secretary vows to ensure farmers are paid fairly for produce

Steve Reed says he may not agree on inheritance tax changes but government will listen to rural Britain

The UK environment secretary has promised to reform the food system to ensure farmers are paid fairly for the food they produce, after many filled the streets of Westminster to campaign against inheritance tax changes.

Speaking at the Country Land and Business Association (CLA) conference, Steve Reed said: “I heard the anguish of the countryside on the streets of London earlier this week. We may not agree over the inheritance tax changes, but this government is determined to listen to rural Britain and end its long decline.”

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Keir Starmer denies budget to blame for rise in mortgage rates

PM says budget stabilised the economy, while mortgage rates are ‘individual decisions for the banks’

Keir Starmer has conceded he was disappointed in the UK growth figures last week, but denied that his government’s budget was responsible for a recent rise in mortgage rates.

The prime minister told journalists travelling to the G20 summit in Rio: “What we have done with the budget is to stabilise the economy and that, in my view, was the essential first step.

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UK disability charities say NICs rise will cause ‘life-changing’ cuts

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.

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Boost UK defence spending to win Trump’s support, former navy chief urges Starmer

Lord West says Republican victory is chance to show Britain is willing to prioritise military by allocating 3% of GDP

Keir Starmer is being urged to consider an emergency cash injection into defence and to accelerate Britain’s planned review of its military capabilities before Donald Trump’s return to the White House.

Senior defence figures are now assessing how Trump’s victory will shape a strategic defence review (SDR) that was already under way in Whitehall, whose findings are due to be reported in the spring. The SDR comes alongside a crucial review of public spending.

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Tax unhealthy foods to tackle obesity, say campaigners

Health and children’s groups urge UK ministers to impose levies on products containing too much salt or sugar

Dozens of health and children’s groups have urged ministers to tackle obesity by imposing taxes on foods containing too much salt or sugar.

New levies based on the sugar tax on soft drinks would make it easier for consumers to eat more healthily by forcing food manufacturers to reformulate their products, they claim.

74% think food firms are not honest about the health impact of their products.

61% worry about the amount of sugar and saturated fat in what they eat.

Only 13% believe producers will make their food more nutritious without government intervention.

72% worry about high levels of processing used in food production.

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Starmer and Badenoch congratulate Trump on ‘historic election victory’ – UK politics live

Both PM and leader of the opposition offer congratulations with more full-throated support from Tory rightwingers such as Truss and Braverman

Another Labour politician who has criticised Donald Trump strongly in the past is Emily Thornberry, shadow foreign secretary when Jeremy Corbyn was Labour leader and now chair of the Commons foreign affairs committee. In an interview on the Today programme this morning she said Trump’s victory (or apparent victory – he still has not officially hit 270 electoral college votes) was “disappointing”, and that it made the world “unpredictable”.

When it was put to her that she described him as a “racist, sexual predator” when he visited the UK during his first term as president, she replied:

Well, he is. But he is the president of the United States, and we need to work with him.

I know that many Londoners will be anxious about the outcome of the US presidential election. Many will be fearful about what it will mean for democracy and for women’s rights, or how the result impacts the situation in the Middle East or the fate of Ukraine. Others will be worried about the future of NATO or tackling the climate crisis …

The lesson of today is that progress is not inevitable. But asserting our progressive values is more important than ever - re-committing to building a world where racism and hatred is rejected, the fundamental rights of women and girls are upheld, and where we continue to tackle the crisis of climate change head on.

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Trump tariffs would halve UK growth and push up prices, says thinktank

NIESR warns British economy would be one of the worst affected by protectionist policies

UK growth is likely to be halved by Donald Trump’s victory in the US presidential race if goes on to impose the swingeing new tariffs he has threatened, a leading thinktank has warned.

The National Institute of Economic and Social Research (NIESR) said the protectionist measures planned by the Republican challenger for the White House would result in weaker activity, rising inflation and higher interest rates from the Bank of England.

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Rachel Reeves ‘missed opportunity’ to raise £900m from online casinos

Labour’s links to gambling industry questioned again after decision not to raise tax rate for online gaming

Rachel Reeves has been criticised over a “missed opportunity” to raise £900m from online casinos in her first budget as chancellor, amid concerns about the Labour party’s ties to the £11bn-a-year gambling sector.

Both the Liberal Democrats and Derek Webb – one of Labour’s largest donors – questioned the chancellor’s rejection of proposals to double remote gaming duty (RGD), levied on online games of chance, from 21% to 42%.

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Rachel Reeves’s most irritating manifesto fudge: private equity’s tax loophole | Nils Pratley

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.

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Housing, social care and universities: who lost out in the UK budget?

Rachel Reeves made funding the NHS a priority but people working in other areas said they were disappointed

Rachel Reeves’s first budget emphasised raising taxes to help the NHS, as the health service tries to cope with huge waiting lists and an ageing population. Funding the NHS was a top priority but people in other sectors – from universities to social care – feel the budget was a missed opportunity to tackle impending crises or introduce desperately needed reforms in their areas.

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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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Budget 2024: what the UK papers said about Rachel Reeves’ statement

Headlines featured numerous ‘nightmare’ allusions for budget delivered the day before Halloween

After Rachel Reeves‘ first budget as chancellor, which included £40bn in tax rises, newspaper headlines in the UK featured “nightmare” and “horror show” allusions as it came a day before Halloween.

The Financial Times’ front page featured a picture of smiling Reeves headlined “Reeves unveils £40bn budget tax rise”. The paper reported the chancellor’s aims of fixing public services, and the “broken” finances, saying businesses and the wealthy would “bear bulk” of the “heaviest fiscal burden” in a generation.

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The budget: Labour returns to tax and spend – Politics Weekly UK

Rachel Reeves has finally laid out Labour’s spending plans in the party’s first budget in almost 15 years. The Guardian’s John Harris is joined by political editor Pippa Crerar and political correspondent Kiran Stacey to discuss the fallout

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