Category Archives: Rachel Reeves

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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Rachel Reeves promises to ‘grip the cost of living’ in autumn budget

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Chancellor admits economy ‘feels stuck’ for many as she signals intention to freeze income tax thresholds

Rachel Reeves has promised to “grip the cost of living” in the budget as she prepares to scrap the two-child welfare limit and freeze rail fares, while putting forward a multibillion-pound tax-raising package.

The chancellor is preparing to give her second budget on Wednesday after weeks of uncertainty about the scale of the tax rises she will need to impose to plug a financial hole of about £20bn.

Freezing income tax thresholds for an extra two years to 2030, bringing more people into higher tax bands as wages rise.

Making salary sacrifice schemes less generous, including those for pension contributions.

Bringing in higher tax on the most expensive properties, including a surcharge on the highest-value houses.

A pay-per-mile scheme on electric cars to help fill the tax gap from petrol duty as more people opt for green vehicles.

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Asking prices fall as UK housing market hit by budget speculation, Rightmove says

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November drop of 1.8% is biggest for this time of year since 2012, with chancellor’s plans looming

Budget speculation has depressed the UK property market, figures from a leading property website have suggested, with asking prices slipping in the run-up to Rachel Reeves’s much anticipated fiscal set piece on 26 November.

The average new seller asking price fell by 1.8%, or £6,589, month on month in November, the figures collated by the property website Rightmove set out, taking the average price tag on a British home put up for sale to £364,833.

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Treasury won’t cut threshold for higher rate income tax, say sources – UK politics live

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Fallout continues over budget income tax U-turn, with Treasury saying expected fiscal gap has dropped to £20bn

This is from Helen Miller, director of the Institute for Fiscal Studies thinktank, on the market reaction to the chancellor’s reported budget U-turn.

Investors will have 2 broad concerns about news that Chancellor won’t increase income tax rates

1. Does it signal less willingness to do politically difficult things

Britain’s long-term borrowing costs were sent soaring as reports suggested the latest U-turn would leave Rachel Reeves scrambling to fill a gaping black hole in the nation’s finances just two weeks before the 26 November budget.

Yields on 30-year UK government bonds, also known as gilts, jumped as much as 14 basis points in early trading, and the yield on 10-year gilts also shot up 12 basis points – rising the most since July.

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Lucy Powell says Labour must stand by promise not to raise key taxes

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New deputy leader also calls on government to lift two-child benefit cap urgently and in full

Labour should stand by its manifesto commitment not to raise income tax, national insurance or VAT, its deputy leader, Lucy Powell, has said in a challenge that will put pressure on Rachel Reeves.

With the Treasury examining whether to raise income tax to plug a £30bn fiscal hole, Powell said it was “really important we stand by the promises we were elected on and do what we said we would do”.

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Reeves to lay groundwork for tax rises in ‘candid’ speech about budget

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Chancellor to promise ‘fairness and opportunity’ but will not repeat manifesto pledge on tax, after PM’s hint at breach

Rachel Reeves will lay the groundwork for a tax-raising budget that could break Labour’s election promise on income tax, in a major speech in which she will be “candid” about the tough choices ahead.

The chancellor will give the speech as the markets open on Tuesday, when she will promise to make fair choices at this month’s budget but decline to repeat her manifesto pledge of no rise in income tax, VAT or national insurance.

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UK politics: Worries about immigration are ‘manufactured panic’ says charity as poll shows issue not a local concern – as it happened

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YouGov poll say only 26% of people say immigration is an issue locally but more than half believe it to be a national issue

There were six council byelections yesterday. Here are the results, from Election Maps UK.

Reform gained two seats, from Labour and from an independent group.

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Lettings agency takes blame in Rachel Reeves licence row

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Agency says staff member offered to apply for licence to allow chancellor to rent out family home, but failed to do so

Keir Starmer appears to have escaped the huge political damage of potentially losing his chancellor weeks before the budget, after 24 hours of intense scrutiny over whether Rachel Reeves broke the law when she rented out her family home.

The Conservatives said Reeves must be sacked if she committed an offence by not obtaining a council licence before letting out her four-bedroom house in south London when the family moved into 11 Downing Street. No 10 was initially unable to explain why Starmer believed an apology from the chancellor was sufficient.

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Starmer feels the effects of setting high standards for his party in opposition

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Despite pledges to run a squeaky clean administration the prime minister and some in his cabinet have been caught out

There is a theory in British politics, often attributed to Tony Blair, that you need to be careful about throwing a boomerang in opposition, because when you make it to power it could come back and hit you in the face.

As opposition leader, Keir Starmer became adept at landing blows on the Conservatives. Over the Partygate scandal in particular, he called for Boris Johnson to quit over his rule-breaking. “You cannot be a lawmaker and a lawbreaker and it’s time to pack his bags,” he said.

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Cutting cash Isa limit will not boost stock market, MPs warn Rachel Reeves

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Treasury committee says move in November budget could push up mortgage rates instead

Cutting the annual cash Isa allowance will not encourage many savers to switch to shares but could push up mortgage costs, MPs have warned the chancellor.

Adults can put up to £20,000 a year in a tax-free Isa and spread the money between cash and stock market investments as they choose. In the 2023-24 tax year, 66% of all contributions went into cash savings.

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NatWest boss warns against higher bank taxes as lender’s profits rise 30%

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CEO says fiscal discipline should be balanced with ‘policies that create stability, consistency and support growth’

NatWest Group’s chief executive has warned the government against increasing taxes on banks in the autumn budget as the high street lender reported a 30% jump in profits.

Paul Thwaite said he understood the “difficult choices” that the chancellor, Rachel Reeves, had to make in order to help close a potential £30bn shortfall in the public finances but argued she needed to “balance fiscal discipline” with “policies that create stability, consistency and support growth”.

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UK inflation unexpectedly remains at 3.8% for third month in a row

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Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

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MPs lodge parliamentary motion to strip Prince Andrew of dukedom

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Ministers face growing pressure to act amid fresh allegations over prince’s relationship with Jeffrey Epstein

MPs have moved to lodge a parliamentary motion to strip Prince Andrew of his dukedom, in a rarely permitted move in the Commons.

The government is facing mounting pressure over the prince’s residence in the 30-room Royal Lodge in Windsor, where it was revealed that he has not paid rent for more than two decades.

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Ministers plan high-level visits to China despite espionage trial outcry

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National security adviser, education secretary and science minister to visit before end of year as part of policy to reset relations

Ministers are pushing ahead with their reset of relations with China, including several planned high-level visits before the end of the year, despite the furore triggered by the collapse of a high-profile espionage trial.

Plans have been drawn up for Jonathan Powell, the national security adviser, to travel to Beijing in November for talks before an anticipated trip by Keir Starmer next year.

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Rachel Reeves says higher taxes on wealthy ‘part of the story’ for November budget

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Exclusive: Chancellor hints at rises and calls out past ‘scaremongering’ over VAT on private schools and changes to non-doms

Rachel Reeves has said higher taxes on the UK’s wealthy will form part of next month’s budget, as she shrugged off the “scaremongering” and “bleating” of her critics, and stressed her determination to repair the public finances.

Speaking in Washington, where she is attending the annual meetings of the International Monetary Fund (IMF), the chancellor told the Guardian there “won’t be a return to austerity” and hinted at tax increases for the most well-off.

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Starmer only read China spy witness statements this morning, No 10 says, as Cleverly accuses PM of misquoting him – as it happened

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

Lindsay Hoyle starts by telling MPs that speakers from the parliaments in Fiji and Ukraine are in the gallery. And he says it is four years to the day since David Amess was murdered.

It’s PMQs. Here is the list of MPs down to ask a question.

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France is in crisis but bond markets leave other governments at risk of meltdown too

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Investors rattled by resignation of French PM but country is not alone in trying to grapple with political maths

Sébastien Lecornu’s abrupt resignation as the French prime minister on Monday after less than a month in the role marked the latest clash between France’s stretched public finances and its polarised politics.

Lecornu was the latest prime minister to try and fail to cobble together a package of spending cuts and tax rises that would pass muster in a parliament without a clear majority, and contain mounting bond market pressures.

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Andy Burnham calls for UK to rejoin EU within his lifetime and rejects claim he is fiscally irresponsible – as it happened

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Mayor of Greater Manchester says he would have to be ‘wrenched’ out of city and says he wants UK to rejoin EU. This live blog is closed

In her Today interview Rachel Reeves was asked about a FT report saying she will urge business leaders to highlight the risks of a Reform UK government in her speech later.

The FT say Reeves will tell the Labour conference.

Who is standing up for Britain’s stability. A Labour government that is resolute in cutting interest rates and borrowing or a Reform party that cheered on Liz Truss’ mini-budget?

Who is standing up for Britain’s businesses? A Labour government that is forging a closer relationship with our nearest trading partners or a Reform party that talks Britain down and is hungry to cut us off from the world?

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Rachel Reeves pledges a library in every primary school in England

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Exclusive: Chancellor also set to unveil plans to get young people back into work in party conference speech

Rachel Reeves will deliver a library in every primary school in England as part of Labour’s plans to give all children the best start in life regardless of their background.

The scheme, which will create libraries in the 1,700 primaries currently without them, will be funded from £132.5m of dormant assets that will be unlocked to give young people access to cultural opportunities.

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