Category Archives: Rachel Reeves

Rachel Reeves to decide by Wednesday whether to change fiscal rules

Posted on by

Move could unlock up to £57bn in additional spending on infrastructure in October’s budget

Rachel Reeves must decide by Wednesday whether to change the government’s fiscal rules to potentially unlock up to £57bn in additional spending on infrastructure at this month’s budget.

Sources close to the Treasury said the chancellor would need to make a decision before submitting the “major measures” for her tax and spending event on 30 October to the Office for Budget Responsibility (OBR).

Continue reading...

Doubts grow over Labour’s VAT plan for private schools

Posted on by

The Treasury refuses to confirm 1 January start date as unions, tax experts and school leaders say it is unworkable

Government plans to impose VAT on private schools from 1 January next year may have to be delayed because of warnings from unions, tax experts and school leaders that meeting the deadline will cause administrative chaos and teacher job losses, and put pressure on the state sector.

The Treasury on Saturday night refused to confirm that the plan to impose 20% VAT on private school fees would go ahead from 1 January, as confirmed by the chancellor, Rachel Reeves, in July, instead saying it would be introduced “as soon as possible”.

Continue reading...

Cabinet set for split over support for England and Wales assisted dying bill

Posted on by

Some senior ministers expected to vote against measure in free vote, while others are still undecided

MPs backing a new bill to legalise assisted dying in England and Wales hope to secure a Commons vote by Christmas, but cabinet ministers are set for a big split over support for the legislation.

The bill, due to be brought forward by the Labour backbencher Kim Leadbeater this month, is to be a free vote but some senior cabinet ministers are expected to vote against – and several, including the chancellor, Rachel Reeves, and the health and social care secretary, Wes Streeting – remain undecided.

Continue reading...

Labour to commit almost £22bn to fund carbon capture and storage projects

Posted on by

Investment will fund two CCS clusters – but environmental campaigners have criticised plans

Rachel Reeves is paving the way for a multibillion-pound increase in public-sector investment at the budget after the government announced plans to commit almost £22bn over 25 years to fund carbon capture and storage projects.

In what is expected to be one of the biggest green spending promises of the parliament, the chancellor, prime minister and the energy secretary, Ed Miliband, will unveil the details on a visit to the Liverpool city region on Friday declaring a “new era” for clean energy jobs.

Continue reading...

Why official register of MPs’ financial interests is now a must-read

Posted on by

Revelations about gifts of clothes and tickets to sporting events have put MPs’ declarations in the spotlight

Revelations that Keir Starmer and his team have accepted donations of clothes, accommodation and sports tickets have focused attention on the official register of MPs’ interests, usually published every couple of weeks.

Here are some highlights from the latest version, published on Wednesday.

Continue reading...

Winter fuel cut savings will be far less than Reeves expected, new analysis finds

Posted on by

A surge in claims for pension credit will make thousands more people eligible for the payments and other benefits

Rachel Reeves has been warned that her cut to pensioner winter fuel payments risks saving hundreds of millions less than anticipated, in a new blow to her attempts to close the hole in Britain’s finances.

The chancellor and her Treasury team are already re-examining parts of a plan to crack down on non-dom tax status over concerns that it may not raise any money.

Continue reading...

Labour crackdown on non-doms may raise no money, officials fear

Posted on by

Exclusive: Watchdog may conclude that emigration of wealthy individuals could actually cost Treasury revenue

Keir Starmer’s promised tax crackdown on non-doms could yield no extra funds for the Treasury, leaving a £1bn hole in the government’s planned spending for schools and hospitals.

Labour planned to use the money raised from wealthy individuals who are registered overseas for tax purposes to invest in ailing public services.

But the Guardian understands that Treasury officials fear estimates due to be released by the government’s spending watchdog may suggest the policy will fail to raise any money because of the impact of the super-rich non-domiciles leaving the UK.

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...

Cutting winter fuel payments ‘right decision’, says Reeves, as No 10 says no change to council tax discount for single people – Labour conference live

Posted on by

Chancellor says £22bn gap in current spending budget and state pension rise meant she had to make decision on means-testing fuel payments

In interview this morning Rachel Reeves, the chancellor, defended her own decision to accept clothing donations worth £7,500 when she was in opposition.

Speaking on the Today programme, she said:

I can understand why people find it a little bit odd that politicians get support for things like buying clothes.

Now, when I was an opposition MP, when I was shadow chancellor of the exchequer, a friend of mine who I’ve known for years [Juliet Rosenfeld] – she’s a good personal friend – wanted to support me as shadow chancellor and the way she wanted to support me was to finance my office to be able to buy clothes for the campaign trail and for big events and speeches that I made as shadow chancellor.

It’s never something that I planned to do as a government minister, but it did help me in opposition.

It’s rightly the case that we don’t ask taxpayers to fund the bulk of the campaigning work and the research work that politicians do, but that does require, then, donations – from small donations, from party members and supporters, from larger contributions, from people who have been very successful in life and want to give something back.

We appreciate that support. It’s part of the reason why we are in government today, because we were able to do that research work, and we were able to do that campaigning.

Unite and the Communication Workers Union (CWU) have put forward motions which were due to be debated on Monday afternoon, with strong support expected from other unions.

Sources said unions were told late on Sunday that the debate is being moved to Wednesday morning.

Continue reading...

Reeves packs up her troubles until budget day and smiles, smiles, smiles | John Crace

Posted on by

The chancellor beamed her way through a conference speech that offered hope at least but little of substance

Stop all the clocks, cut off the telephone. If you had thought that maybe today was the day when you made that call to Dignitas, then think again. Cancel that flight to Zurich. At least postpone it. Things might not be quite as bad as you had been led to believe. Or rather, they are that bad but there is some small flicker of hope if you can hold on long enough. There will be pain in the short and medium term. There’s no avoiding that. Try to think of it as character building. But possibly, just possibly, you might come through. We happy few. Blinking into the light of the promised land.

This was Rachel Reeves’s day. And she knew everything was going to be just fine the moment she woke up to find that Liz Truss had posted yet another cry for help on X. You can now follow the Trusster’s decline in real time on social media. It’s got so bad that she now films herself in front of a bookcase where everything is arranged by colour. The kindest explanation is that she thinks she’s filming a hostage video and the books are a coded message for “I’m being held against my will”.

Continue reading...

Rachel Reeves orders investigations into £600m of Covid contracts

Posted on by

Chancellor will confirm inquiries in conference speech as Labour tries to move on from donations scandal

Rachel Reeves will announce on Monday that she has ordered investigations into more than £600m worth of Covid contracts awarded under the Conservatives as Labour struggles to get back on the front foot over questions of ethics.

After days of bruising allegations over donations, the chancellor will confirm that she will refer more than half of contracts for material such as masks to the incoming Covid corruption commissioner, after the previous government recommended dropping any attempt to investigate them.

Continue reading...

Angela Rayner hints at major social housing announcement

Posted on by

Deputy prime minister tells Labour conference she expects chancellor to make promise on building at spending review

Angela Rayner has given her strongest hint yet that Labour will announce a major package of social housebuilding in next month’s spending review, saying the party will have abandoned its “moral mission” if it fails to do so.

The deputy prime minister told an event at Labour conference on Sunday she expected the chancellor, Rachel Reeves, to make a promise on social housing next month, with the government under pressure to build hundreds of thousands more social homes.

Continue reading...

Honeymoon over: Keir Starmer now less popular than Rishi Sunak

Posted on by

Opinium poll for the Observer finds a 45-point drop in the prime minister’s approval rating since he won the election

Keir Starmer has suffered a precipitous fall in his personal ratings since winning the election, according to a new poll for the Observer that comes before his first Labour conference as prime minister.

The latest Opinium poll reveals that Starmer’s approval rating has plunged below that of the Tory leader Rishi Sunak, suffering a huge 45-point drop since July. While 24% of voters approve of the job he is doing, 50% disapprove, giving him a net rating of -26%. Sunak’s net rating is one point better.

Continue reading...

Superyacht and private jet tax could raise £2bn a year, say campaigners

Posted on by

Oxfam says ‘commonsense solution’ would reduce emissions and raise urgently needed climate finance

Fair taxes on superyachts and private jets in the UK could have brought in £2bn last year to provide vital funds for communities suffering the worst effects of climate breakdown, campaigners say.

Private jet use in the UK is soaring. It was home to the second highest number of private flights in Europe last year, behind only France, according to figures from the European Business Aviation Association.

Continue reading...

‘We need to hear about hope’: unions greet Keir Starmer TUC speech with mixed emotions

Posted on by

Enthusiasm for public sector pay awards tempered by concern over winter fuel payment cuts and job losses

“We’re hearing an awful lot about tough times: it’s like being in a Dickens novel. What comes after the tough times? We need to hear about hope.”

Onay Kasab, the national lead officer for the Unite trade union, was addressing a leftwing fringe meeting, but similar sentiments reverberated through the bars and coffee shops at this week’s TUC congress in Brighton.

Continue reading...

Surge in larger homes for sale amid capital gains tax fears, Rightmove says

Posted on by

Speculation Rachel Reeves to raise tax in budget thought one reason for some homeowners cashing out

Growing speculation about a capital gains tax (CGT) raid in October’s budget appears to have prompted a surge in the number of larger homes being put up for sale, the UK’s biggest property website says.

Rightmove said in the week ending 9 September there had been “a flurry of activity at the top end” of the market. The number of larger homes – defined as four-bedroom detached houses and all five-bedroom and larger properties – being listed for sale in Great Britain was 15% more than in the same period last year. And in the east and south-west of England, which include some of the UK’s most popular coastal and countryside hotspots, the percentage was over 20%.

Continue reading...

Winter fuel allowance cut: who voted for this? – Politics Weekly UK

Posted on by

The government saw off a rebellion over its plans to cut winter fuel allowance this week. John Harris speaks to Caroline Abrahams from Age UK about what this winter will look like for millions of pensioners losing out. Plus, he talks to columnist Rafael Behr about whether the technocrats (Starmer and Reeves) are taking the Labour party in the wrong direction

Continue reading...

UK economy unexpectedly flatlines for second month in row

Posted on by

Pre-election slowdown continues in July despite economists predicting growth of 0.2%

The anticipated post-election bounceback in the UK economy failed to materialise as activity flatlined in July for a second month, , according to the latest official data.

The Office for National Statistics (ONS) said the pre-election stalling of activity in June was followed by another month in which gross domestic product remained unchanged.

Continue reading...

Chancellor faces down would-be rebels ahead of winter fuel payment vote

Posted on by

Rachel Reeves tells Labour MPs that axing allowance for all but poorest pensioners will help plug £22bn hole in finances

The chancellor has faced down would-be rebels in a private meeting of Labour MPs ahead of the crunch vote on the government’s controversial plan to scrap the winter fuel allowance.

Rachel Reeves told a gathering of the parliamentary Labour party that the move was necessary, despite fears about the impact on millions of less-well-off pensioners, as it would help to plug a £22bn gap in the public finances.

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...