Category Archives: Budget

Delaying budget was ‘miscalculation’, Blairites say as Starmer begins reset following Sue Gray’s departure – UK politics live

Posted on by

Government needs to get better at communicating what it stands for, veterans from New Labour era argue

Sophie Linden, London’s deputy mayor for policing and crime, is stepping down after eight years working with Sadiq Khan to take a job as an adviser to Shabana Mahmood, the justice secretary, Khan has announced. In a statement Linden claimed that policing in the capital was “far more diverse, transparent and accountable” than when she started.

Matt Chorley from Radio 5 Live posted this on social media yesterday to provide some context about the departure of Sue Gray.

Continue reading...

‘Davos on the Mersey’: key conference takeaways as Labour tries to woo business

Posted on by

As the budget looms, where the party stands on investment in the UK economy, workers’ rights and more

For a second year running, corporate Britain descended on Liverpool for Labour’s annual conference, in an event so packed with executives that some insiders joke the socialist gathering has developed into a full-blown “Davos on the Mersey”.

Like last year, the exhibition and conference fringe had sponsored events, lounge areas and advertising from exhibitors including Gatwick, National Grid, Ikea and Specsavers. This year, however, business leaders were looking for clues about how Labour will govern after July’s election landslide.

Continue reading...

Up to 50 Labour MPs could rebel over cut to winter fuel allowance

Posted on by

Dozens said to be considering abstaining from Tuesday’s vote over pensioners’ payments, as PM says dealing with dissent is ‘matter for chief whip’

As many as 50 Labour MPs could refuse to back the government’s controversial plan to cut the winter fuel allowance, despite Keir Starmer urging back benchers to get behind a measure he has conceded is “unpopular”.

While few on the government benches are expected to vote against the policy in Tuesday’s vote, dozens are believed to be considering abstaining or being absent – though rebels say the numbers in their ranks are very hard to predict.

Continue reading...

Labour MP pushes for watchdog to assess PFI costs under budgets bill

Posted on by

Stella Creasy says she wants to put school and hospital debts and impact of trade deals ‘on nation’s books’

A senior Labour backbencher is seeking to have liabilities from schools and hospitals built under private finance initiative (PFI) deals scrutinised under a new budget responsibility bill.

Stella Creasy, who has tabled two amendments to the bill, said this would help highlight the scale of debt incurred. She also wants trade deals such as the post-Brexit arrangement with the EU to fall under its remit, arguing these can have an even greater fiscal impact.

Continue reading...

Expect more economic pain to come, warns senior UK cabinet minister

Posted on by

Starmer and Reeves unlikely to reverse winter fuel and two-child benefit cap decisions, says Pat McFadden

A senior cabinet minister has warned of more economic pain to come as the government prepares to restrict public spending in ways MPs and campaigners say could exacerbate the cost of living crisis.

Pat McFadden, the cabinet office minister, said on Sunday that voters should expect the government to take further difficult decisions, as Keir Starmer prepares to give a speech accusing the Conservatives of leaving the country in “rubble and ruin”.

Continue reading...

Rachel Reeves planning to raise taxes and cut spending in October budget

Posted on by

Chancellor insists she still has large black hole to fill despite stronger-than-expected growth in first half of 2024

Rachel Reeves is planning to raise taxes, cut spending and get tough on benefits in October’s budget amid Treasury alarm that the pickup in the economy has failed to improve the poor state of the public finances.

With the latest official set of borrowing figures out on Wednesday, the chancellor is insisting she will still have a substantial black hole to fill despite stronger than expected growth in the first half of 2024.

Raising more money from inheritance tax and capital gains tax.

Sticking to plans for a 1% increase in public spending even though it would involve cuts for some Whitehall departments.

Rejecting pressure to scrap the two-child benefit cap.

Changing the way debt is measured to exclude the Bank of England.

Continue reading...

Rachel Reeves paves way for cuts and tax rises to fill shortfall left by Tories

Posted on by

Chancellor will announce pause in work on a number of infrastructure projects, saying Conservatives ‘covered up’ true state of finances

Rachel Reeves will lay the ground for cuts to public spending, tax rises and delays to some major infrastructure projects on Monday as she sets out the toxic inheritance the Labour government inherited from the Tories.

She is expected to pause work on a string of infrastructure projects, including Boris Johnson’s flagship plan to build 40 new hospitals and the proposed two-mile road tunnel bypassing Stonehenge.

Continue reading...

Tories ‘deliberately covered up’ true state of public finances, says minister

Posted on by

Steve Reed hits out at Conservatives’ handling of public services as chancellor prepares to detail ‘£20bn black hole’

The last Conservative government “deliberately covered up” the true state of public finances, a cabinet minister has said, as the chancellor prepares to detail a “£20bn black hole” in the public finances.

The environment secretary, Steve Reed, said his cabinet colleagues “always knew” the inheritance from the Tories was “going to be bad”, but that since coming to office they had found “additional pressures” that had not been disclosed by the Tories.

Continue reading...

Rachel Reeves expected to reveal £20bn shortfall in public finances

Posted on by

Chancellor may raise some taxes in the autumn due to what Labour describes as its ‘shocking inheritance’ from Tories

Rachel Reeves is expected to reveal a £20bn hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget.

Labour sources said the blame lay with the Tory government, describing it as a “shocking inheritance” and accusing the former chancellor of “presiding over a black hole and still campaigning for tax cuts”.

Continue reading...

Sunak warned unfunded axing of national insurance would harm services

Posted on by

Economists say making the policy an election pledge could cost £40bn, which is badly needed for health, education and elsewhere

Rishi Sunak has been warned against fighting an election on an unfunded plan to abolish employee national insurance amid projections the move could blow a £40bn hole in the public finances.

As the pre-election battle on the economy between the Conservatives and Labour intensified, the prime minister was on Thursday under mounting pressure to explain how the measure could be afforded while public services were crumbling.

Continue reading...

Treasury disbanded non-dom tax policy unit weeks before budget, sources say

Posted on by

Exclusive: Officials fear government is ill-prepared for lobbying from wealth advisory industry after taxation overhaul

The Treasury disbanded a unit tasked with offshore and non-dom tax policy weeks before announcing significant changes in the budget to the way foreign residents are taxed, sources have said.

The unit, which comprised technical experts on offshore tax issues, included specialists on non-dom policy. These officials would, according. to the sources, have been expected to help manage the implementation of a replacement for non-dom status as outlined by the chancellor this week.

Continue reading...

UK fuel duty cut is regressive policy that benefits the wealthy, study finds

Posted on by

Chancellor’s 5p freeze will save £60 a year for well-off motorists compared with just £22 for lower earners

Retaining the fuel duty cut in the budget is a regressive policy that benefits the wealthiest in society, who will save £60 a year, while those who earn the least will save just £22, according to analysis.

Jeremy Hunt on Wednesday announced an extension of the 5p cut in fuel duty brought in during 2022, for which he has won plaudits across the rightwing press.

Continue reading...

Wales warns Jeremy Hunt’s budget could force redraw of its own

Posted on by

Cardiff’s finance minister says her 2023 budget could be redundant if the chancellor makes radical tax changes

The Welsh government has warned it could be forced to redraw its budget only one day after it is approved by the assembly should Jeremy Hunt make tax and spending policy changes that affect Wales in his budget in March.

Cardiff’s finance minister, Rebecca Evans, said she was concerned that her budget, which was published as a draft in 2023 for discussion and will be completed on 5 March, could become redundant if Hunt adopts radical measures in his budget the following day.

Continue reading...

Jeremy Hunt’s budget giveaway ‘will act as sweet filling in tax sandwich’

Posted on by

Thinktank says juicy cuts this year follow far bigger increases in 2023 and precede planned ‘chunky rises’

Jeremy Hunt’s expected pre-election giveaway budget will be sandwiched between £20bn of tax increases already implemented and a further £17bn of hikes pencilled in for after polling day, a thinktank has said.

The Resolution Foundation said it expected Hunt to freeze fuel duty and cut income tax on 6 March but warned the chancellor’s “tax sandwich” was based on the “fiscal fiction” of £30bn of spending cuts in the next parliament.

Continue reading...

Chancellor considers further national insurance cut to take heat off Rishi Sunak

Posted on by

Jeremy Hunt targets further reduction in ‘jobs tax’ in March budget

The government is considering handing workers another tax cut with a further reduction in national insurance, amid desperate attempts to move on from a campaign to destabilise Rishi Sunak by the Tory right.

With frustration within the cabinet that the Conservative party has been unable to free itself from internal warring over Sunak’s immigration plans and leadership, the prime minister and his chancellor, Jeremy Hunt, are focusing on the tax cuts that will frame their election pitch.

Continue reading...

Jeremy Hunt fuels election speculation as 6 March spring budget announced

Posted on by

Chancellor has asked the OBR to prepare forecasts for the economy and public finances to be presented to parliament

Jeremy Hunt has announced that a spring budget expected to feature a host of tax cuts will be held on 6 March, fuelling speculation over an early general election.

While government sources insisted nothing should be read into the date, it is the earliest the set-piece fiscal event has been held in 13 years of Conservative government – apart from 2021 when the Treasury was trying to kickstart the economy after Covid.

Continue reading...

How a spring UK budget could fire the starting gun for an early election

Posted on by

UK economic prospects are bleak but an agenda-setting fiscal event such as sweeping tax cuts in March offers another roll of the dice

To grasp the nettle, or wait in the hope that things somehow miraculously improve. This is the choice Rishi Sunak will be weighing for the next general election, as the Conservatives limp towards the finishing line of another challenging year.

After Jeremy Hunt announced the government would hold an earlier than anticipated budget, with a date set for 6 March, the possibility of a poll in May, in the afterglow of some electioneering tax cuts, is clearly being given considerable thought.

Continue reading...

Jeremy Hunt faces red wall revolt if he delivers ‘a budget for the rich’

Posted on by

The chancellor’s potential inheritance tax cut in Wednesday’s budget would aid millionaires amid a cost of living crisis

Jeremy Hunt faces a backlash from “red wall” Tory MPs if he uses a fiscal windfall of up to £20bn to deliver tax cuts for the rich rather than to help ordinary families with the cost of living, the Observer has been told.

The chancellor and Rishi Sunak are this weekend finalising an autumn statement on Wednesday that could include a major reduction in inheritance tax – four-fifths of which would benefit those with more than £1m at their death, according to a new report from the Institute for Fiscal Studies (IFS). Each person with more than £1m would receive an average tax cut of £180,000, the IFS states.

Continue reading...

Hunt urged to invest £30bn a year in infrastructure or risk ‘decade in doldrums’

Posted on by

Thinktank says stronger than expected tax revenues have given chancellor scope for bold package in autumn statement

Jeremy Hunt risks condemning Britain to a decade in the doldrums unless he uses this month’s autumn statement to announce a £30bn-a-year investment plan to upgrade public infrastructure, a leading thinktank has warned.

The National Institute for Economic and Social Research (NIESR) said the chancellor should ignore calls by Tory MPs for pre-election tax cuts and instead focus on measures to boost growth through improvements to transport, digital networks, skills and housing.

Continue reading...

Liz Truss to claim her economic plan would have saved government £35bn

Posted on by

Former PM set to give speech defending her time in charge and explaining spending decisions

Liz Truss will claim that Rishi Sunak’s government has spent £35bn more than she would have as prime minister, in a speech on Monday.

The short-lived prime minister will use a speech at the Institute for Government to defend and explain her time in charge, nearly a year on from the ill-fated mini-budget that helped end her premiership.

Continue reading...