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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Lifetime of earnings not enough for UK workers to join wealthiest 10%, report says

Research finds it would take average worker saving all their earnings for 52 years to match wealth of richest 10th of society

It would take the average earner in the UK 52 years’ worth of earnings to become as wealthy as the richest 10%, according to new research by the Resolution Foundation.

In a new report, the influential thinktank analyses the Office for National Statistics’ latest wealth and assets survey, which covers the Covid pandemic period of 2020-22.

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Tories demand inquiry into claims Labour’s McSweeney misled elections watchdog

Starmer’s chief of staff used ‘false excuse’ for failing to declare donations to his former thinktank, Tories claim

The Conservatives have called for an investigation into Keir Starmer’s beleaguered chief of staff, Morgan McSweeney, after allegations that he tried to mislead the elections watchdog over donations to a Labour thinktank he ran while in opposition.

The organisation, Labour Together, was fined £14,250 by the Electoral Commission in 2021 over its handling of almost £740,000 of donations. The Tories have claimed that it used a “false excuse” of administrative errors.

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UK advertising watchdog accused of breaking rules in its own ad campaign

Complaint lodged asks ASA to investigate claims made in promotion launched in conjunction with household brands

The UK advertising watchdog has received a complaint about its own high-profile UK-wide campaign, accusing it of breaking the rules it enforces around misleading marketing.

The Advertising Standards Authority (ASA), which investigates whether ads breach UK regulations, is being asked to investigate claims made in its campaign launched in conjunction with household brands including Tesco, Comparethemarket and Lloyds bank.

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Home secretary suspends refugee family reunion applications until new, tighter rules are put in place – as it happened

Yvette Cooper says rules were designed years ago to help families separated by war but are being used in a different way now

And while we are talking about Blair-era Labour aides, Peter Hyman, who wrote speeches for Tony Blair and later worked for Keir Starmer in the run-up to the general election, has launched a new Substack blog. It is called Changing the Story, which tells you quite a lot about what he thinks is going wrong with No 10. Here is an extract from his first post.

Starmer is an ‘opportunity’ prime minister forced to become a ‘security’ one. And that’s why the government’s narrative is seen by some to be elusive.

Let me explain.

I remember well Tim Allan’s leaving drinks at Number 10 in the earlyish Blair era. In his fulsome farewell speech Tony Blair noted only half jokingly “Tim’s even more right wing than me..”

The same Tim Allan who as head of Portland had a contract to polish Vladimir Putin’s reputation?

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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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Starmer declines to rule out election pledge-breaking tax rises in budget after claim Treasury must fill £40bn deficit – as it happened

Prime minister defends government’s handling of economy but will not give assurances over not raising income tax, employee NI or VAT

Ed Davey, the Liberal Democrat leader, has urged Keir Starmer to call Donald Trump to encourage him to use his influence to block Israel’s plans for a “full occupation” of Gaza.

In a statement, Davey said:

[Israeli PM Benjamin] Netanyahu’s latest proposals for the occupation of all of Gaza are utterly horrifying.

If realised, they will only wreak yet more destruction on Gazans - while gravely endangering the lives of the hostages still held in Hamas’ captivity.

I see NIESR is talking today about a £41.2bn hole in the UK public finances

Two things are newsworthy:

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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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Wealthiest English private schools spend below 6% on means-tested bursaries, research finds

Data shows 200 independent schools devote fraction of fee income to support disadvantaged pupils based on family income

England’s wealthiest private schools devote only a fraction of their income towards means-tested bursaries, according to research that undermines claims that adding VAT to school fees would decimate support for poorer pupils.

The Private Education Policy Forum (PEPF), a thinktank campaigning for greater equality and transparency among independent schools, gathered data from more than 200 leading schools and found they spent less than 6% of their total fee income on supporting pupils based on family income.

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UK politics: Unison attacks ‘shambolic’ announcement of NHS England’s abolition – as it happened

Union says staff will have been left reeling after surprise news that body will be scrapped

Starmer is now talking about regulatation, and giving examples of where he thinks it has gone too far.

l give you an example. There’s a office conversion in Bingley, which, as you know, is in Yorkshire. That is an office conversion that will create 139 homes.

But now the future of that is uncertain because the regulator was not properly consulted on the power of cricket balls. That’s 139 homes. Now just think of the people, the families, the individuals who want those homes to buy, those homes to make their life and now they’re held up. Why? You’ll decide whether this is a good reason because I’m going to quote this is the reason ‘because the ball strike assessment doesn’t appear to be undertaken by a specialist, qualified consultant’. So that’s what’s holding up these 139 homes.

When we had those terrible riots … what we saw then, in response, was dynamic. It was strong, it was urgent. It was what I call active government, on the pitch, doing what was needed, acting.

But for many of us, I think the feeling is we don’t really have that everywhere all of the time at the moment.

The state employs more people than we’ve employed for decades, and yet look around the country; do you see good value everywhere? Because I don’t.

I actually think it’s weaker than it’s ever been, overstretched, unfocused, trying to do too much, doing it badly, unable to deliver the security that people need.

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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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Fall in overseas students fuels threat to English universities despite rise in fees

Higher tuition costs have already been ‘wiped out’ by government tax hikes, critics claim

A fall in international students applying for visas risks prolonging the existential threat facing some of England’s universities, sources in higher education say, amid warnings that an increase in tuition fees has already been “wiped out” by the government’s tax rises.

Despite the decision by ministers to increase fees for UK students this year to £9,535 – the first rise in eight years – figures across the universities sector said the financial situation remained dire, with further course closures and redundancies being widely considered.

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‘Disrupt or be disrupted’, mainstream parties warned as voters turn to populists

Research shows voters losing faith in traditional centre-left and centre-right to deliver meaningful change

Voters in western democracies are turning away from mainstream political parties and towards populists because they are losing faith in their ability to implement meaningful change, a major report based on surveys of 12,000 voters has found.

The popularity of traditional centre-left and centre-right parties across major democratic countries has plummeted from 73% in 2000 to 51% today, according to research by the Tony Blair Institute.

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Reeves’s growth plans ‘exactly what economy needs’ say UK business groups – as it happened

This live blog is now closed, you can read more on this story here

Reeves says the supply side of the economy has been held back.

Politicians have lacked the courage to confront the factors holding back growth.

They have accepted the status quo. They have been the barrier, not the enablers, of change.

Without economic growth, we cannot improve the living standards of ordinary working people, because growth isn’t simply about lines on a graph. It’s about the pounds in people’s pockets, the vibrancy of our high streets and the thriving businesses that create wealth, jobs and new opportunities for us, for our children and grandchildren.

We will have succeeded in our mission when working people are better off.

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Give working parents help with childcare and commuting costs, UK thinktank says

Child poverty plan must address the 70% of families with at least one parent in work, Resolution Foundation says

Labour must offer extra support to working parents, including with childcare and commuting, if it is to fulfil its promise of cutting child poverty, the Resolution Foundation thinktank has argued.

The government’s manifesto promised an “ambitious strategy” on child poverty, and ministers have said they will publish a 10-year plan in the spring.

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Russia imposes travel ban on cabinet ministers, calling it retaliation for ‘Russophobic’ policies – UK politics live

Kremlin bans UK cabinet ministers including Rachel Reeves, Angela Rayner and Yveette Cooper from entering country

The Federation of Small Businesses applauds the ambition in the government’s Get Britain Working, but says that overcoming the “pervasive poverty of ambition” about employment in the public sector won’t be easy. This is from Tina McKenzie, the FSB’s policy chair.

This is a start – but only a start – in fixing the pervasive poverty of ambition in the Jobcentre, health and other state systems when it comes to getting people back into work. Increasing employment is ultimately the most sure-fire way to drive up living standards and economic growth.

Ministers have a huge job to persuade public institutions that work is good for health and that everyone who needs work should be helped to get a job or start-up in self-employment – not least getting rid of the idea that the only good work is in graduate jobs, the public sector or volunteering.

The ambition behind the 80 per cent employment target is both clear and important ..

To deliver on this policy agenda, government and small businesses must work in partnership to drive real change through the whole employment system and make sure the country is helping those who most need work.

It is right to ensure that young people who are seeking work are helped to find a job or training. Positive early experiences in the jobs market are vital for young people’s future life chances. They must be supported to take part, not faced with self-defeating sanctions.

Success will also depend on ministers making the investment that’s needed in health services and quality training. Jobcentre staff must have a central role in redesigning their services, and devolution must never come at the cost of staff terms and conditions.

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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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Ministers urged to cut ties with P&O Ferries owner over links to Russia

The government is facing calls to cease trading with DP World because of its partnership with Putin’s northern sea route

Ministers are facing calls to review the UK’s financial ties to the multinational logistics company DP World over its business deals in Russia.

The business announced a £1bn expansion of the London Gateway port earlier this month, despite a row over the transport secretary, Louise Haigh, calling its ferry subsidiary, P&O Ferries, a “rogue operator”.

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Millionaire business owners urge Rachel Reeves to raise £14bn from rise in capital gains tax

Group of wealthy investors argue it would have no impact on investment in the UK and would raise vital funds for public services

Rachel Reeves has been urged by a group of millionaire business owners to raise £14bn from an increase in capital gains tax at this month’s budget, arguing it would have no impact on investment in Britain.

Ahead of the chancellor’s set-piece event on 30 October, the group of wealthy investors said increasing the tax rate on asset disposals would help to raise vital funds for public services and would not lead to slower economic growth.

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