Category Archives: Budget 2025

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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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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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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Mayors in England to get power to impose tourism tax on overnight visitors at ‘modest’ rate – UK politics live

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Government announces overnight levy ahead of tomorrow’s budget

John McFall is standing down early as Lord Speaker in the House of Lords so that he can care for his wife, Joan, who has was Parkinson’s. According to Sam Blewett and Bethany Dawson in their London Playbook briefing for Politico, the main candidates to replace him are Michael Forsyth, a rightwing Scottish secretary in the final two years of the John Major government, and Deborah Bull, a crossbencher and former Royal Opera House creative director. They reports:

Labour isn’t expected to put forward a candidate as McFall’s previous political affiliation means it’s seen as another party’s turn to rule the roost, Noah [Keate] writes in to say. Forsyth has garnered support from some Labour grandees who like his traditional approach and aversion to modernization while Bull has being promoted by some female peers keen for a woman to take charge. One Tory peer described Forsyth as a “political animal” who may struggle to encourage a consensus across the chamber. A list of candidates’ register of interests and election addresses (up to 300 words) will be emailed to all peers on Dec. 1. Watch your inboxes!

Transport secretary Heidi Alexander rejected a rival proposal from Arora Group, saying Heathrow’s own plans were “the most credible and deliverable option”.

The Heathrow proposals involve building a 3,500-metre runway and require a new M25 tunnel and bridges to be built 130 metres west of the existing motorway.

Following a comparative assessment of the remaining proposals for Heathrow expansion, the government’s view is that the Northwest runway scheme brought forward by Heathrow Airport Limited offers the most credible and deliverable option, principally due to the relative maturity of its proposal, the comparative level of confidence in the feasibility and resilience of its surface access plans, and the stronger comfort it provides in relation to the efficient, resilient and sustainable operations of the airport over the long-term.

The HAL scheme is considered comparatively more mature in its approach to road infrastructure. While the HAL scheme requires major works to the M25, assessment indicates that the HWL scheme would also have a considerable impact on the M25.

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Rachel Reeves expected to scrap £300m in tax breaks for Motability scheme

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Plan to remove relief from scheme that helps provide cars for disabled people likely to concern some Labour MPs

Rachel Reeves is expected to press ahead with scrapping about £300m in tax breaks for the Motability scheme that helps provide cars for disabled people, in a move likely to spark concerns among some Labour MPs.

The Treasury was reported to have been considering axing tax breaks up to £1bn but savings will not be as high as that figure, with concerns among ministers that some policy options could have led to Motability’s collapse.

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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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UK to extend sugar tax to cover bottled milkshakes and pre-packaged lattes

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Levy will also apply to more fizzy drinks as health secretary says government ‘will not look away as children get unhealthier’

Sweet-toothed consumers face paying more for bottled milkshakes and some fizzy drinks after the government confirmed plans for a tougher sugar tax.

Designed to tackle obesity, the levy currently applies to drinks with a sugar content of 5g per 100ml. However, after a public consultation this is being cut to 4.5g per 100ml, meaning it could cover hundreds more products.

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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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Reeves ‘not even sure what the popular path is’ on the budget – UK politics live

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Chancellor says ‘We can’t just carry on like this and muddle through. We have to make some decisions to get on a different path’

Prime minister Keir Starmer had a bilateral meeting with South African president Cyril Ramaphosa on the sidelines of the G20 summit on Friday.

The two leaders discussed the 11-hour flight from London to Johannesburg in brief remarks in front of reporters, according to the PA news agency.

Energy bills are still far higher than five years ago, on top of sky-high mortgages and rents and prices in the shops.

The government has pledged time and time again to bring down energy bills – it is time for them to live up to their word and stop tinkering, committing to a real long term plan.

Liberal Democrats have a plan: we would slash energy bills in half by removing the renewables levy from bills, creating new energy loans for homeowners to insulate their homes and boosting renewables – the cheapest, cleanest and most popular form of energy.

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Shabana Mahmood tells MPs asylum system is ‘out of control and unfair’ amid Labour backlash over proposals – UK politics live

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Labour MP calls government’s asylum plans ‘dystopian’ as home secretary announces measures in Commons

Momentum, the leftwing Labour group, has also denounced the government’s asylum plans. In a statement it says:

The home secretary’s new immigration plans are divisive and xenophobic.

Scapegoating migrants will not fix our public services or end austerity.

Draconian, unworkable and potentially illegal anti-asylum policies only feed Reform’s support.

The government has learnt nothing from the period since the general election.

Some of the legal changes being proposed are truly frightening:

Abolishing the right to a family life would ultimately affect many more people than asylum-seekers.

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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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Rachel Reeves to abandon plans to raise income tax rates in budget

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Labour had laid the ground to break a manifesto pledge on taxes for working people but has now made a U-turn

Rachel Reeves is set to abandon a plan to raise income tax in her budget with the chancellor reportedly “ripping up” the main measures in the wake of turmoil in the party.

A source told the Guardian that plans to break the manifesto pledge on income tax had been ditched by the prime minister, Keir Starmer, and the chancellor.

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Starmer says any attack on his cabinet is ‘completely unacceptable’ and adds Streeting is doing a great job – UK politics live

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Kemi Badenoch probes Starmer over ‘toxic culture’ at Downing Street as PM denies authorising briefings against potential challengers

The No 10 briefing row is not the only story around this morning. Amy Sedghi is writing a live blog about the ongoing turmoil at the BBC and she has details of Donald Trump saying he has an “obligation” to sue the BBC.

In a related development, Reform UK has pulled out of a BBC documentary about the party amid a row over the broadcaster’s editing of the Trump speech. Robyn Vintner has the story.

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