Category Archives: Rachel Reeves

Labour MP calls for Starmer’s resignation to end ‘psychodrama’ – UK politics live

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Jonathan Brash says ‘own goals’ are distracting from Labour’s achievements

UK inflation accelerated to 3.3% in March after the Iran war triggered the biggest jump in fuel prices for more than three years, Richard Partington reports.

Today the Liberal Democrats staged a photocall to publicise their line about this being “Trumpflation”. Daisy Cooper, the Lib Dem deputy leader and Treasury spokesperson, said:

People across our country have been struggling for years with a devastating cost-of-living crisis and Donald Trump’s idiotic war in Iran has added to it. The cost of fuel is soaring, mortgage rates are rising and fixed energy deals are already going up by hundreds of pounds.

But what is utterly inexcusable is that there are politicians in this country - Nigel Farage and Kemi Badenoch - who are happy to cheerlead Donald Trump as he hikes people’s bills. All the while this Labour government promised to fix the country but instead we’ve got political Groundhog Day: yet more sleaze and scandal.

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Trump warns US-UK trade deal ‘can always be changed’ with relations in ‘sad state’

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President says he gave Britain ‘better deal than I had to’ but ally was ‘not there when we needed them’ on Iran

Donald Trump has threatened to row back on the trade deal the US signed with the UK last year, in his latest salvo against the British government over sharp differences about the US’s approach to the Middle East.

The US president said the economic deal struck with the UK, which cut some of his tariffs on cars, aluminium and steel, was “better than I had to” and that it could “always be changed”.

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UK government caps student loan interest rates at 6% from September

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Minister says change for plan 2 and 3 loans in England and Wales will ‘protect borrowers’ from impact of global conflict

Millions of graduates will have the interest on their student loans capped at 6% from September as a temporary measure to protect them from the risk of rising inflation driven by war in the Middle East.

Ministers acted after months of criticism over the loans becoming a “debt trap” that often leave graduates in England and Wales paying tens of thousands more than the original loan amount.

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Two-thirds of UK hospitality businesses plan to cut jobs and one in seven will close, survey finds

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Sector cites ‘billions of pounds in additional costs’ from new business rates and increase in minimum wage thresholds

Two-thirds of hospitality businesses are planning to cut jobs as a result of “suffocating” costs imposed by government, as new business rates and higher wage bills come into force.

Many pubs, restaurants and hotel companies will see their costs increase significantly from 1 April after Rachel Reeves’s changes to business rates and an increase in minimum wage thresholds announced at the chancellor’s November budget.

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Reeves says planning for energy bills support under way but hints wealthiest may not be included – UK politics live

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Chancellor says she has the data available to run targeted scheme, unlike the Tory programme used when the Ukraine war started

The live feed from the Lib Dem local elections campaign launch did not last long, and it did not include footage of Ed Davey taking questions from reporters. But this is what the Lib Dems are saying about their five key campaign issues.

-Cut the cost of living: A plan to halve energy bills within a decade, saving households an average of £870 a year

-Fix the NHS and care: Guarantee the right to see a GP within seven days (or 24 hours for urgent cases) and ending 12-hour A&E waits.

-Rescue high streets: Give an emergency cut to VAT for hospitality businesses, to bring prices down and boost struggling high streets.

-Clean up rivers: Ban water companies from dumping raw sewage into local rivers and coastal areas.

-Restore community policing: Ensure visible, effective local policing to reduce crime.

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Rachel Reeves reveals push for fiscal devolution to English regions, says Brexit caused damage, and admits student loan system is ‘broken’ – as it happened

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Chancellor says Brexit may have cost 8% of UK GDP in wide-ranging Mais lecture at Bayes Business School in London which also called for AI push

The number of people in England and Wales falling into insolvency has jumped.

There were 11,609 individual insolvencies registered in England and Wales in February, the Insolvency Service has reported this morning. This was 18% higher than in February 2025 and 6% higher than in January 2026.

The individual insolvencies consisted of 768 bankruptcies, 4,210 debt relief orders (DROs) and 6,631 individual voluntary arrangements (IVAs). The number of DROs in February 2026 was a record high in the monthly time series going back to their introduction in 2009, exceeding the previous high of 4,185 in August 2025.

The number of IVAs was higher than both January 2026 and the 2025 monthly average. Bankruptcies were 25% higher than in February 2025, although numbers were affected by the clearing of a backlog following the Insolvency Service moving to a new case management system.

Average 2-year fix has risen from 4.83% at the start of March to 5.28% today. It’s highest since April 2025.

Average 5-year fix has risen from 4.95% at the start of March to 5.32% today. It’s highest since February 2025.

“War in the Middle East has added almost £800 to a typical annual mortgage bill in just two weeks, which will be unwelcome news for anyone currently seeking a fixed rate deal.

“The average two-year fixed rate has jumped from 4.83% at the start of March to 5.28% today – its highest level since April 2025. The average five-year fix has risen from 4.95% to 5.32%, now at its highest since February 2025. For a borrower with a £250,000 mortgage over 25 years, that equates to paying £788 more per year on a two-year fix, or £651 more on a five-year deal compared to just a fortnight ago.

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

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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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Most senior council officers in England say building work hit by delays

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Funding uncertainty is main concern, despite Labour’s pledge to revitalise construction, survey shows

Almost two-thirds of senior council officers have said they are seeing construction projects delayed, despite the key role of local authorities in creating the wave of new housing and infrastructure promised by Labour.

Before Rachel Reeves’s spring forecast on Tuesday, a survey of senior council officers showed that 40% do not think the local authority they work for is well placed to follow through on its construction plans.

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OBR a backseat driver with out-of-date maps, thinktanks tell Rachel Reeves

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Chancellor urged to reform Office for Budget Responsibility to open way to more public investment

Rachel Reeves must reform the Office for Budget Responsibility (OBR) to open the way to more public investment, an alliance of thinktanks has argued ahead of the chancellor’s spring forecast on Tuesday.

With Keir Starmer’s government under intense pressure after Labour’s defeat by the Greens in Thursday’s Gorton and Denton byelection, the thinktanks called on Reeves to review the watchdog’s remit.

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Household energy bills in Great Britain forecast to fall by £117 a year

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Consultancy’s prediction comes after Rachel Reeves said green subsidy costs would be removed from domestic bills

Household energy costs in Great Britain are expected to tumble by an average of £117 a year from April after Rachel Reeves announced in November’s budget that the cost of green subsidies would be removed from domestic bills.

The government’s quarterly cap on energy bills is forecast to fall after the chancellor’s decision to shift the levies used to support renewable energy projects into general taxation, and scrap a bill payer-funded energy efficiency scheme, according to Cornwall Insight, a leading energy consultancy.

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OBR says its inadvertent release of budget report is ‘worst failure’ in its 15-year history – UK politics live

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Office for Budget Responsibility says Rachel Reeves ‘had every right to expect that the [report] would not be publicly available until she sat down at the end of her budget speech’

Q: Yesterday you said Rachel Reeves was lying. Today you are saying she gave out false information. Are you still accusing her of being a liar?

Badenoch replies: “Yes.”

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OBR says inadvertent budget leak is ‘worst failure’ in its 15-year history

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Investigation finds organisation’s leadership over many years was to blame for error, and similar breach happened earlier this year

Britain’s budget watchdog has said the early leak of its budget documents before Rachel Reeves made her speech was the “worst failure” in its 15-year history as it emerged a similar breach had occurred earlier this year.

The Office for Budget Responsibility (OBR) said an investigation had found that the leadership of the organisation, over many years, was to blame for the early release of its Economic and Fiscal Outlook (EFO) document online nearly an hour before Reeves’s address last Wednesday.

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Vote for collective leadership shows Your Party are ‘doing politics differently’ – UK politics live

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Spokesperson says move – seen as a victory for Zarah Sultana – shows organisation is ‘a truly member-led party’

Kemi Badenoch has reiterated her calls for the chancellor to resign on the BBC’s Sunday with Laura Kuenssberg programme, after accusing Rachel Reeves of breaking promises not to raise taxes.

In this year’s budget, Reeves froze tax thresholds for three years longer than previously planned, meaning that as wages rise more people will have to start paying income tax.

The chancellor called an emergency press conference telling everyone about how terrible the state of the finances were and now we have seen that the OBR had told her the complete opposite. She was raising taxes to pay for welfare.

The only thing that was unfunded was the welfare payments which she has made and she’s doing it on the backs of a lot of people out there who are working very hard and getting poorer. And because of that, I believe she should resign.

The shadow chancellor, Mel Stride, has written to the FCA (the Financial Conduct Authority). Hopefully there will be an investigation, because it looks like what she was doing was trying to pitch-roll her budget – tell everyone how awful it would be and then they wouldn’t be as upset when she finally announced it – and still sneak in those tax rises to pay for welfare. That’s not how we should be running this process.

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

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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

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

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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

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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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How Rachel Reeves’s budget was leaked 40 minutes early

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By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online

Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.

The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.

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How Rachel Reeves’s budget was leaked 40 minutes early

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By the time the chancellor reached the dispatch box, the OBR had accidentally published its verdict in full online

Shortly before midday on Wednesday, a series of headlines about Rachel Reeves’s budget began appearing on the Reuters newswire, sending instant ripples though financial markets.

The details were jaw-dropping: they appeared to spell out the key policies of the chancellor’s budget more than 40 minutes before she was due to deliver them to a crowded Commons chamber.

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

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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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