Reeves defends Labour’s £40bn tax rise as businesses prepare for NICs hike

Chancellor says autumn budget enabled £25bn of extra investment into NHS and shorter waiting lists

Rachel Reeves has defended the £40bn in tax increases in autumn’s budget as businesses brace for their impact, saying NHS waiting lists would now be higher if she had not taken action.

Employers are set for a £25bn increase in national insurance contributions (NICs), which comes into force on 6 April, at the same time as consumers are being hit by a slew of increases in bills for everything from utilities to car tax.

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Keir Starmer urged to get tough with Trump as US tariff threat looms

PM told to be as robust as Canada with the US president as the UK stages last-ditch talks to strike trade deal

Keir Starmer should fight back strongly against Donald Trump if he imposes punitive tariffs on British exports, senior UK and EU diplomats said on Saturday night, amid heightened fears that the US president could trigger a global trade war with devastating effects on the UK economy.

British government officials in London and Washington are working frantically this weekend to try to persuade Trump not to slap duties on more key UK industries on what he is calling “liberation day” on Wednesday. The US president has already announced plans for 25% levies on imports of cars, steel and aluminium to the US.

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From more tax to rewriting budget rules: six alternative ways Rachel Reeves could raise money

The chancellor has been slated by politicians, the public and campaigners for pushing ahead with brutal welfare cuts – but there were other options

There is growing criticism of Rachel Reeves for her orthodox approach to managing the public finances. While it is clear that modest reductions in spending put forward in the spring statement cannot be described as a return to austerity, they are expected to deliver considerable harm to vulnerable people at a time when wealth inequality continues to rise.

Critics also believe the chancellor’s policies to improve living standards are flawed, and more radical reforms of the way Britain’s economy operates need to be supported by the government. Here we look at some of the options open to the chancellor.

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250,000 more people will face relative poverty after Rachel Reeves’ benefits cuts, DWP says – spring statement live

Department for Work and Pensions says thousands, including children, will be hit by chancellor’s announcement, as OBR forecasts UK growth to halve in 2025

Rachel Reeves will not be raising taxes in the spring statement today, even though there are many people on the left who would prefer taxes to rise as an alternative to public spending being cut. Reeves came into office promising only one budget-type event a year, and that is one reason why she is not hiking taxes today. But mainly it’s because she thinks Britons are relatively highly taxed already, because Labour was elected on a manifesto ruling out most of the obvious possible tax rises and because she’s not convinced a sweeping wealth tax would work.

But that has not stopped campaigners calling for a wealth tax, and yesterday about 300 people attended a ‘Tax the Super-Rich’ rally outside the Treasury. It was organised by charities and social justice campaign groups, but one of the speakers was Carla Denyer, co-leader of the Green party, which is in favour of a wealth tax.

Across the country, inequality is soaring and people are being left behind, struggling to make ends meet and dealing with broken public services, all while the very richest get richer. Choosing to make cut after cut to the poorest and most marginalised, while leaving the vast resource of the extreme wealth of the super rich untouched, is immoral, harmful, and will not deliver for our communities or the economy.

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Reeves to put £2bn into affordable housing to ‘sweeten the pill’ of cuts

Chancellor will announce plans to fund 18,000 social homes before fraught spring statement on Wednesday

Rachel Reeves will plough £2bn into affordable housing in a bid to “sweeten the pill” of the spending cuts being announced at this week’s spring statement.

The chancellor made the surprise announcement of the new cash – a down payment on the June spending review – as the Treasury bids to demonstrate that it remains focused on investment, rather than cuts. It will fund 18,000 affordable and social homes, part of the target to build 1.5m homes over the course of the parliament.

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Starmer confirms he wants to ‘take some money out of government’ as part of efficiency drive – UK politics live

PM also claims government is spending record amount on pothole repairs amid criticism of spring statement plans

Well, that did not really get us very far. Apologies to anyone who feels misled by “grilling” in the headline. We learned very little. After the interview was over, Rachel Burden, the Radio 5 Live presenter, read out some listener reaction, including a message from someone who said: “The country is literally falling apart and Sir Keir is fixated on potholes. I give up.”

But in the interview Keir Starmer did not challenge the claim that some government departments will have to reduce spending. This is what he said when it was put to him that unprotected deparments would face cuts.

We’re looking across the board. We made a budget last year, we made some record investments, and we’re not going to undo that.

So, for example, we’ve got a record amount into the NHS. That’s just delivered five months’ worth of waiting lists coming down – five months in a row during the winter, that’s really good. So we’re not going to alter the basics.

I do think this is something that we have to take seriously. We have to address. We can’t shrug our shoulders at it.

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Starmer is warned against ‘appeasing’ Trump with tax cut for US tech firms

Labour MP and Lib Dem leader express concern social media companies could be let off hook just as benefits are cut

Keir Starmer has been warned against “appeasing” Donald Trump as he considers reducing a major tax for US tech companies while cutting disability benefits and public sector jobs.

His chancellor, Rachel Reeves, confirmed on Sunday that there were “ongoing” discussions about the UK’s £1bn-a-year digital services tax that affects companies including Meta and Amazon.

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All UK families ‘to be worse off by 2030’ as poor bear the brunt, new data warns

Keir Starmer has been dealt a fresh blow to his living standards pledge in advance of the spring statement

Living standards for all UK families are set to fall by 2030, with those on the lowest incomes declining twice as fast as middle and high earners, according to new data that raises serious questions about Keir Starmer’s pledge to make working people better off.

The grim economic analysis, produced by the respected Joseph Rowntree Foundation (JRF), comes before the chancellor, Rachel Reeves, makes her spring statement on Wednesday in which she will announce new cuts to public spending rather than increase borrowing or raise taxes, so as to keep within the government’s “iron clad” fiscal rules.

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Reeves to raise spectre of Liz Truss to persuade Labour MPs to accept cuts

Chancellor to tell party she is making steep cuts to avoid similar fallout to that which followed 2022 mini-budget

Rachel Reeves will raise the spectre of Liz Truss’s disastrous mini-budget in the lead-up to next week’s spring statement as she tries to persuade her Labour colleagues to accept the steepest departmental cuts since austerity.

The chancellor will tell her fractious party she has decided to cut public spending rather than increasing borrowing because of the risk of a similar fallout to that which followed the then prime minister’s disastrous fiscal statement in 2022.

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Former Bank of England deputy warns Rachel Reeves against kneejerk cuts

Charlie Bean says OBR forecasts are ‘flaky’ and cautions against trying to hit targets five years away

The former Bank of England deputy governor Charlie Bean has warned the chancellor against making kneejerk cuts in next week’s spring statement to try to hit fiscal targets that are five years away.

Rachel Reeves is preparing to slash spending, including on disability benefits, in response to weaker forecasts from the independent Office for Budget Responsibility (OBR) – prompting a backlash from within her own party.

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