Category Archives: Rachel Reeves

State-backed loans to go to firms importing critical minerals into UK

Posted on by

Rachel Reeves to encourage import of raw materials from Commonwealth countries to counter China’s grip on market

Businesses that import critical minerals to the UK will be given access to state-backed loans in a move to counter China’s dominance in the market.

The chancellor, Rachel Reeves, is expected to announce extra government support to encourage the import of critical minerals such as lithium, graphite and cobalt in her budget next week. Companies that bring supplies of critical minerals into the UK will be able to access state-backed loans under the UK export finance mechanism.

Continue reading...

Budget will reverse huge cuts in UK’s public investment, Reeves confirms

Posted on by

Chancellor pledges to spend, but says there will be no Truss-style splurge when she changes fiscal rules in budget

Rachel Reeves will pledge to reverse huge cuts in public investment in her budget next week after she confirmed that rules limiting her spending power will be overhauled to enable the government to release as much as £50bn for infrastructure spending.

The chancellor said she would revise how the Treasury calculated shortfalls in the government budget over the rest of the parliament to free up funds to invest in public infrastructure.

Continue reading...

Jeremy Hunt claims Labour changing debt definition will ‘punish families with mortgages’ – as it happened

Posted on by

Former chancellor says ‘increasing borrowing means interest rates would be higher for longer’ as Reeves says it will ‘make space for investment’

Nigel Farage, the Reform UK leader, has said that “no one knows” who Robert Jenrick, the Tory leadership contender, is.

Of the two candidates left in the contest, Jenrick is the one who is doing most to appeal to Tories who defected to Reform UK, because he is saying Britain should leave the European convention on human rights.

I know the fella. Is he the chap that one day was on the very much on the left of the Conservative party and is now on the right of the Conservative Party?... No one knows who he is.

I’m sure government can agree that support and providing opportunities for young people should be central to the policy of any government. We are glad to see the government working to build closer economic and cultural ties with Europe. We want to forge a new partnership with our European neighbours, built on cooperation, not confrontation and move to a new comprehensive agreement.

We must build rebuild confidence through seeking to agree partnerships or associations helping to restore prosperity and opportunities for British people.

We are not going to give a running commentary on the negotiations. We will obviously look at EU proposals on a range of issues, but we are clear that we will not return to freedom of movement.

Continue reading...

Reeves to announce major change to fiscal rules releasing £50bn for spending

Posted on by

After weeks of speculation, chancellor will tell IMF in Washington that UK’s debt measure will be redefined to permit borrowing for investment

Rachel Reeves will announce at the International Monetary Fund a plan to change Britain’s debt rules that will open the door for the government to spend up to £50bn extra on infrastructure projects.

After weeks of speculation, the chancellor will confirm at the fund’s annual meetings in Washington on Thursday that next week’s budget will include a new method for assessing the UK’s debt position – a move that will permit the Treasury to borrow more for long-term capital investment.

Continue reading...

Lloyds backs Reeves budget plans despite mooted tax increases

Posted on by

Bank expects ‘constructive, pro-growth agenda’ by chancellor next week and seeks to be part of it

Lloyds Banking Group has backed the Labour government’s forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a “constructive, pro-growth agenda”.

The chief financial officer of the UK’s biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in key areas such as energy, infrastructure and housing.

Continue reading...

IMF warns Trump trade tariffs could dent global economy as it upgrades UK outlook

Posted on by

New report upgrades outlook for UK economy with growth now forecast at 1.1% rather than 0.7%

The International Monetary Fund has warned the trade tariffs favoured by US presidential candidate Donald Trump could hurt global growth, as it upgraded its forecast for the UK economy.

The Washington-based organisation said tariffs trigger tit-for-tat trade wars that impoverish the economies involved in the dispute and the wider global economy.

Continue reading...

Cross-party MPs urge Reeves to impose 2% tax on wealth above £10m

Posted on by

Move could raise £24bn a year say signatories including Jeremy Corbyn as polls suggest public support

A cross-party group of 30 MPs has urged Rachel Reeves to impose a wealth tax on Britain’s rich in next week’s budget rather than announce spending cuts that would hit the most poor hardest.

In a letter to the chancellor, the MPs – including the former Labour leader Jeremy Corbyn and his then shadow chancellor, John McDonnell – say she could raise £24bn a year from a 2% tax on wealth above £10m and lay the foundations for a fairer, more sustainable economy.

Continue reading...

UK to lend Ukraine an additional £2.26bn for weapons to fight Russia

Posted on by

Loans will be repaid using interest generated by $300bn of frozen Russian assets held in the west

Britain is to lend Ukraine an additional £2.26bn and allow Kyiv to spend the money on weapons to fight off the Russian invasion as part of a wider $50bn (£38.5bn) loan programme expected to be confirmed by G7 members later this week.

The loans will be repaid using interest generated by the $300bn of frozen Russian assets held in the west, with the extra funds promised as the US heads towards a presidential election where support for Ukraine is a divisive issue.

Continue reading...

Rachel Reeves will tax businesses to plug £9bn black hole in NHS

Posted on by

The chancellor is set to announce a revenue-raising budget designed to reset Britain’s public finances

Rachel Reeves is set to use one of the most pivotal budgets of recent times to call on businesses to pay more tax to help restore the NHS, amid warnings that the health service has been left with a £9bn hole in its finances.

The chancellor is expected to stake her reputation on a tax-­raising budget designed as a reset of the public finances. She has already had to deal with cabinet skirmishes over funding unveiled alongside the statement. However, Reeves is understood to believe that the public will accept a multibillion-pound hike in business taxes if it is linked to repairing the health system’s finances.

Continue reading...

NHS set to receive 4% budget rise but health chiefs say it may not be enough

Posted on by

Whitehall source says it would only allow NHS to ‘stand still’ on waiting lists rather than reduce them

The NHS is set to get an inflation-busting 4% rise in its budget next year but health chiefs have said it may not allow them to cut waiting lists for another 18 months, the Guardian has learned.

The health service is on course to be one of the big winners in Rachel Reeves’s spending review on 30 October if it gets a proposed 4% real-terms uplift from the Treasury.

Continue reading...

Rachel Reeves expected to extend ‘stealth’ freeze on income tax thresholds

Posted on by

Policy known as ‘fiscal drag’ could bring in as much as £7bn a year after 2028, while dragging workers into paying more tax

Rachel Reeves is expected to extend a “stealth” freeze on income tax thresholds beyond the 2028 deadline set by the previous Conservative government to raise billions of pounds in the budget.

The chancellor is contemplating the move, first reported by the Financial Times, as she seeks tax-raising measures to plug a £40bn shortfall in the public finances that Labour claims was left by the Conservatives.

Continue reading...

Infrastructure taskforce to help chancellor avoid financial sector turmoil

Posted on by

Rachel Reeves is to seek advice from City experts to ensure big projects’ value for money and reassure markets

Rachel Reeves, the chancellor, is taking action to ensure her budget plan for a multibillion-pound increase in government borrowing to fund infrastructure projects avoids a Liz Truss-style meltdown in financial markets.

Ahead of her tax and spending event on 30 October, the chancellor is convening on Friday the first meeting of a taskforce of leading City figures to advise on infrastructure projects. The government will also launch a watchdog to oversee public works and ensure value for money for the taxpayer.

Continue reading...

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

Posted on by

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.

Continue reading...

Great British Energy can become a major power generator, says its chair

Posted on by

Jürgen Maier’s vision for company includes the potential to borrow its own money in order to rival multinationals

Britain’s new national energy company will eventually become a major power generator, running its own windfarms, tidal power and carbon capture schemes and potentially borrowing its own money, according to its new chair.

Jürgen Maier, the chair of Great British Energy (GBE), told the Guardian in an interview that his vision for the company far outstrips its current scope and would put it on a par with multinational firms such as Denmark’s Ørsted or Sweden’s Vattenfall.

Continue reading...

Cabinet ministers contest chancellor’s planned cuts to their departments

Posted on by

Rachel Reeves aims to find £40bn in budget but several ministers have written to Keir Starmer about spending cuts

Cabinet ministers have pushed back against planned cuts to their departments in the upcoming budget, with several writing to Keir Starmer to contest them.

Several are understood to have shared their concerns at the likelihood of deep cuts to unprotected departments such as housing and transport.

Continue reading...

PMQs live: Keir Starmer faces Rishi Sunak in the Commons

Posted on by

Latest PMQs comes as sources say chancellor is briefing ministers that £40bn will need to be found in the budget

Robert Jenrick has finished his speech, and he is now taking questions.

Q: Kemi Badenoch says she is Labour’s worst nightmare. Is she right?

I think that our party faces an existential challenge right now. Our party has no divine right to exist. That’s why we need to get the choice right in this leadership election, and that’s why I stand for ending the drama, ending the excuses, and actually delivering for the British people.

Continue reading...

UK inflation falls below 2% for first time since 2021 in boost to Rachel Reeves

Posted on by

Surprise annual drop to 1.7% in September raises chance of interest rate cuts, increasing budget leeway

Inflation in the UK has fallen to its lowest level in three and a half years, giving a pre-budget boost to Rachel Reeves as expectations grow for the Bank of England to cut interest rates.

Figures from the Office for National Statistics show the consumer prices index dropped sharply to 1.7%, down from 2.2% in August, in a bigger fall than anticipated in financial markets, driven by lower air fares and petrol prices.

Continue reading...

Rachel Reeves tells cabinet UK still faces £100bn black hole over next five years

Posted on by

Chancellor’s words will be interpreted as signal she will not give in to ministers over cuts she imposes in budget

Rachel Reeves has told the cabinet that the UK still faces a £100bn black hole in the public finances over the next five years amid concerns that ministers are yet to grasp the full scale of the fiscal deficit ahead.

At a meeting of the political cabinet, the chancellor said the £22bn gap this year – which the government has blamed on their poor economic inheritance from the Tories – would be a recurring cost each year of this parliament.

Continue reading...

Starmer steps into cabinet row over P&O to rescue global summit in London

Posted on by

The PM has backed transport secretary Louise Haigh after she called ferry firm a ‘rogue operator’, threatening investment summit

Keir Starmer expressed his full confidence on Saturday in the transport secretary, Louise Haigh, after an explosive cabinet row cast fresh doubt over his Downing Street operation and threatened to overshadow a key international investment summit in London.

Government sources said the prime minister and Haigh had spoken and made up on Saturday after Starmer appeared to rebuke her on Friday for branding P&O Ferries a “rogue operator” in a statement and then calling for customers to boycott the company in a subsequent media interview.

Continue reading...

Private equity barons lean on Rachel Reeves to water down proposals for higher taxes

Posted on by

With the budget and Starmer’s investment summit approaching, the industry’s lobbyists are in full cry over ‘carried interest’

When the future deputy prime minister Angela Rayner walked the floor of a bespoke kitchen outfitter’s warehouse in October 2022, she was doing more than gladhanding local workers in her Greater Manchester constituency.

The real reason Rayner had been invited to tour Goyt Kitchen Fabrications in Ashton-under-Lyne was not to see how the firm had fared through the Covid pandemic, but to be sold the benefits of private equity. Goyt’s bosses had taken a £200,000 investment from Welsh-government-backed FW Capital.

Continue reading...