The health secretary has declined to rule out extending the freeze on income tax thresholds as speculation about possible tax increases in the Budget continued to mount.
Wes Streeting said he would not guess measures that the Chancellor might introduce in the Budget, but told broadcasters on Sunday morning that he had already agreed health spending with Rachel Reeves.
Mr Streeting told Sky News: What we’re not going to do is duck the difficult decisions, have Government by gimmick, short-term sticking plasters, because that is exactly how we ended up in this situation.”
He went on to say: “There are a whole load of choices that we will have to make that we would have preferred not to. But if we don’t make the choices now, we will end up paying a much heavier price for failure.
“We’re not prepared to do that. We’re going to make the right long term decisions.”
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
Key Points
- Streeting refuses to rule out income tax threshold freeze
- When is the 2024 Budget and what might be in it?
- Government will keep manifesto pledges, says Starmer
- Ministers plead with PM to soften Reeves’ spending cuts
- Proposed national insurance hike sparks row
Lib Dems will oppose national insurance increases
15:30
Jabed Ahmed
Liberal Democrats deputy leader Daisy Cooper said the party will oppose the increase of national insurance contributions for employers, if the rumoured policy is in the Government’s Budget later this month.
The party’s Treasury spokeswoman said she was worried about the impact on care providers, which could send some from a state of “crisis to collapse”.
Speaking to Trevor Phillips on Sky News, Ms Cooper said: “I think we are deeply uncomfortable about that proposal.
“One of our concerns in particular is that there are many very small care homes and small care providers around the country, and they… are on the cliff edge as it stands.
“If the Government were to put up employer contributions, particularly for these small businesses, for these small care homes, I think we might see many of them go from a state of crisis to a state of collapse with no choice but to close their doors.”
She went on to say: “The rumour as it stands is that the Government intend to raise the national insurance contributions on all companies, irrespective of whether they’re small or large… I think we probably end up having to vote no against that.”
UK faces ‘make or break moment’ in Budget, says Swinney
14:30
Jabed Ahmed
Scotland’s First Minister will use a speech on Monday to urge the Chancellor to increase spending, as he said the Budget presents a “make or break moment” for the UK.
First Minister John Swinney is expected to make his most outspoken intervention on the budget and push the Chancellor to invest in public services.
Speaking at an event in Edinburgh on Monday in front of academics, think tanks and representatives of the private, public and voluntary sector, the First Minister is expected to describe the past seven years – which has seen Brexit, the pandemic, the war in Ukraine and the subsequent energy price and inflation hikes – as a “long, dark economic winter”.
He will add: “What is needed now is a collective commitment to public investment for economic renewal, investment that will allow us to move into an economic spring, with new growth, new opportunities and new hope.”
Budget 2024: Inheritance tax set to rise – here’s what it means for you
13:30
Jabed Ahmed
Streeting says he cannot fix 14 years of NHS issues with one budget
12:30
Jabed Ahmed
Wes Streeting said he had reached a deal on NHS funding with the Chancellor, but could not fix the problems of the last 14 years in one Budget.
Asked about potential funding increases at the Budget, the Health Secretary told Sunday Morning With Trevor Phillips: “I’m not going to get into specific figures.
“I’ve settled with the Chancellor, but we are not going to fix 14 years in one Budget.”
He also stressed the need for reform as well as investment in the NHS, saying he was “conscious” that money spent on health was money that could not be spent in other areas.
He added: “There isn’t a single part of Government and the public sector where there aren’t real crises.”
Streeting refuses to rule out income tax threshold freeze
11:49
Jabed Ahmed
Wes Streeting has refused to rule out that the Government will freeze income tax thresholds in the upcoming Budget.
Mr Streeting had previously voted against the measure in opposition while Rishi Sunak was prime minister.
Speaking on Sunday Morning With Trevor Phillips on Sky News, Mr Streeting said: “I’m not going to speculate on what the Chancellor might do in the Budget.
“If you’re asking me whether I would vote against anything in the Chancellor’s Budget? The answer is no, of course I’m not going to do that.”
He went on to say: “This country is paying a heavy price for Conservative failure, and we’re going to have to make some big and difficult choices in this Budget to make sure we fix the foundations of the economy and we don’t end up back here.”
He later added: “What we’re not going to do is duck the difficult decisions, have Government by gimmick, short-term sticking plasters, because that is exactly how we ended up in this situation.”
Full report: Starmer denies election pledges will be broken as Reeves plans stealth taxes
10:17
Jabed Ahmed
Reeves considers raising tax on vaping in Budget
09:03
Jabed Ahmed
Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.
The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.
Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.
When is the 2024 Budget and what might be in it?
07:01
Jabed Ahmed
Chancellor Rachel Reeves will deliver Labour’s first Budget on Wednesday 30 October.
Each year, the chancellor of the exchequer - who is in charge of the government’s finances - makes a Budget statement to MPs. .
The speech outlines the government’s plans for spending and taxes.
The Budget speech usually starts around 12:30pm and lasts about an hour. The Independent will be bringing you all the latest updates on the big day.
Ms Reeves may be considering pushing the freeze beyond its current expiry date of 2028 in a move that could raise £7 billion, according to the Financial Times.
Other measures reported to be under consideration include increasing employers’ national insurance contributions, raising fuel duty for the first time since 2010, changes to rules on inheritance tax and stamp duty, and a levy on e-cigarettes, according to reports across the media.
The Treasury has so far declined to comment on Budget speculation.
Government will keep manifesto pledges, says Starmer
05:00
Jabed Ahmed
Prime Minister Sir Keir Starmer has said that the government will keep to manifesto pledges ahead of the Budget.
Asked about whether reported tax changes under consideration would keep to their promise of not increasing taxes for working people, Sir Keir told a press conference in Berlin: “We are going to keep our manifesto pledges.”
He added: “I’m not going to pre-empt the individual measures that will be outlined by the Chancellor in due course.
“This is going to be a Budget that will fix the foundations and rebuild our country.”
When asked further about potential tax rises, the Prime Minister said that “you’ll just have to wait until the Chancellor lays that out in full, but the structure if you like, the framework, is going to be to fix the foundations and to rebuild our country.”
Comment: Labour were right to break their promise on taxes – we should all be paying more
03:00
Jabed Ahmed
UK faces ‘make or break moment’ in Budget as Swinney calls for spending
01:01
Jabed Ahmed
Scotland’s First Minister will use a speech on Monday to urge the Chancellor to increase spending, as he said the Budget presents a “mark or break moment” for the UK.
On Monday, First Minister John Swinney is expected to make his most outspoken intervention on the budget and push the Chancellor to invest in public services.
Speaking at an event in Edinburgh on Monday in front of academics, think tanks and representatives of the private, public and voluntary sector, the First Minister is expected to describe the past seven years – which has seen Brexit, the pandemic, the war in Ukraine and the subsequent energy price and inflation hikes – as a “long, dark economic winter”.
He will add: “What is needed now is a collective commitment to public investment for economic renewal, investment that will allow us to move into an economic spring, with new growth, new opportunities and new hope.
“In this century, defined by global crises, we must invest boldly to improve living standards, increase equality, and protect the planet.
“We cannot simply sit back and wait for economic conditions to improve after nearly two decades of volatility.”
Wider economic gains being ignored in two-child limit debate, says think tank
Sunday 20 October 2024 00:05
Jabed Ahmed
The wider benefits of scrapping the two-child limit such as the future earnings potential of young people who avoid poverty as a result are being ignored, a think tank has said.
Prime minister Sir Keir Starmer has faced pressure, including from some of his own Labour MPs, since being elected in July to scrap the controversial Conservative policy but has insisted he cannot do so in the current economic climate.
The New Economics Foundation (NEF) said its UK-wide analysis suggests that retaining both the two-child limit and the benefit cap – which a number of campaigners have said should also be axed – could see almost half (49.4%) of families with three or more children living in relative poverty after housing costs by the end of this Parliament five years from now.
Scrapping both from April 2025 could cost the Government £2.5 billion a year, rising to £3.5 billion by 2029/30, the organisation said.
Much of these costs are taken up by the two-child limit at £1.9 billion and £2.6 billion respectively, the NEF said, but it argued this would be “significantly offset by short, medium and longer-term economic gains”.
What other steps could be taken to tackle the UK’s economic challenges?
Saturday 19 October 2024 22:31
Jabed Ahmed
There have been rumours Labour could tweak the fiscal rules the Government uses to constrain its own spending and tax decisions.
Chief among those under consideration for change is the period over which the Government aims to see national debt falling as a percentage of the UK’s overall economic output.
Relaxing this rule to a longer period than the current five-year target, or removing spending by certain public organisations from the total, could allow the Chancellor to borrow more cash to invest in major infrastructure projects such as railways, roads, hospitals and new prisons.
What has the Government already said about how it plans to manage the public finances?
Saturday 19 October 2024 21:30
Jabed Ahmed
Labour has vowed there will be no return to austerity while it is in government.
The party also made a manifesto promise not to raise the major taxes on “working people”: national insurance, income tax and VAT.
Instead, it has committed to specific tax rises, such as the decision to start charging VAT on private schools, in order to fund their agenda.
However, there are hints further tax rises could come, and also that the Chancellor may make changes to the way the Government calculates its debt reduction targets.
What are the problems Labour faces as it sets out its spending plans?
Saturday 19 October 2024 20:31
Jabed Ahmed
Public services including the NHS and local councils are struggling across the UK, as they grapple with an ageing population, backlogs caused by the pandemic, and the aftermath of the coalition-era austerity programme.
Labour has brokered a pay deal for a swathe of public servants after several years of industrial action, a spending commitment worth £9 billion by some estimates.
Ms Reeves has also claimed the previous Conservative government did not account for the costs of some of its promises, which now need to be met or scaled back.
These commitments, alongside keeping the Government’s ongoing costs “standing still”, made up the so-called £22 billion “black hole” in the public finances which Labour said it needs to fill.
However, Ms Reeves is said to have since identified a far larger £40 billion funding gap which she will seek to plug to protect key departments from real-terms cuts and put the economy on a firmer footing.
Ending private school tax breaks quickly is ‘right’ decision, says minister
Saturday 19 October 2024 19:30
Jabed Ahmed
An education minister has said it is “right” to end tax breaks for private schools as soon as possible in order to raise funding for the state sector.
Baroness Smith of Malvern defended the speed at which the policy was being introduced, arguing it had been Labour’s plan in opposition and was included in the party’s election manifesto.
From January, the Government plans to remove the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.
Currently, independent schools do not have to charge 20% VAT on their fees because there is an exemption for the supply of education.
One of the criticisms levelled by opponents is the short timescale involved.
Tory peer Lord Lexden, who is president of the Independent Schools Association, criticised the “great haste” at which the Government was introducing the measure during a debate in Parliament.
‘Listen to voters’ and block Chancellor’s Budget cuts, Flynn tells Starmer
Saturday 19 October 2024 18:29
Jabed Ahmed
Sir Keir Starmer has been told to “listen to voters” and block his Chancellor’s plans to impose deep cuts in this year’s Budget.
Rachel Reeves is looking to raise up to £40 billion through tax hikes and spending in her 2024 autumn Budget at the end of the month.
But she has faced backlash from within her own party with some ministers unhappy at being asked to reduce spending by as much as 20%.
Stephen Flynn, the SNP’s leader at Westminster, has written to the Prime Minister urging him to intervene and stop the cuts.
He said that Sir Keir must “listen to voters and your own cabinet colleagues: intervene now, overrule the Chancellor and stop the cuts, or people in Scotland will never forgive the Labour Party”.
Claiming the Chancellor’s Budget was “descending into total chaos” he urged the Prime Minister to “immediately intervene and block the Chancellor’s plans for devastating austerity cuts”.
Rachel Reeves planning £3bn welfare cuts in Budget
Saturday 19 October 2024 17:30
Jabed Ahmed
Rachel Reeves will seek to make around £3 billion of cuts to welfare over the next four years by restricting access to sickness benefits, it is understood.
The Chancellor is expected to commit to the previous Tory government’s plans to save the sum by reforming work capability rules, as first reported by The Telegraph.
Under Conservative proposals, welfare eligibility would have been tightened so that around 400,000 more people who are signed off long-term would be assessed as needing to prepare for employment by 2028/29, reducing the benefits bill by an estimated £3 billion.
It is understood that Ms Reeves will commit to the plan to save £3 billion over four years, but Work and Pensions Secretary Liz Kendall will decide how the system will be changed in order to achieve this.
Record number of UK firms facing serious financial strain, report finds
Saturday 19 October 2024 16:29
Jabed Ahmed
A record number of UK businesses are facing a serious financial strain, as post-Covid debts squeeze all corners of the economy, a report has found.
The warning comes after a series of businesses have been on the brink of collapse or faced insolvency this year, including retailers Ted Baker and Carpetright, restaurant group TGI Fridays and construction firm ISG.
There were 632,756 firms flagged as being in “significant” financial distress between July and September.
Ric Traynor, the executive chairman of Begbies, said the decline in the level of firms heading toward collapse was a “welcome surprise after a challenging year”.
“That said, it is too early to say if this is a trend that will continue into the autumn – traditionally a busy period for corporate insolvencies,” he added.
“While there are tentative signs of a recovery, uncertainty continues to loom over UK businesses.
“In response, many business leaders are holding their breath as they await clarity over what the forthcoming Budget will bring.”
Many business leaders “expect companies and investors to bear the brunt of changes to the tax regime”, he said, with an increase to employer national insurance among the measures which the Government has not ruled out.
What should I do with my savings ahead of the Budget?
Saturday 19 October 2024 15:30
Jabed Ahmed
Workers set for income tax hike as Rachel Reeves ‘to extend freeze on thresholds’
Saturday 19 October 2024 14:31
Jabed Ahmed
Reeves’ capital gains tax plans will sidestep homeowners, reports say
Saturday 19 October 2024 13:28
Jabed Ahmed
Experts have long anticipated that Labour will put capital gains tax up in the Budget on 30 October. This is the levy is paid on the profit made when an asset which has increased in value is sold. This includes houses, assets and shares, all paid between 20 and 28 per cent.
The latest reports indicate that Ms Reeves will respond to calls to raise capital gains tax in line with income tax bands – meaning rates of 20 to 40 per cent – but will exempt property from the new rates.
Reeves considers raising tax on vaping in Budget
Saturday 19 October 2024 12:29
Jabed Ahmed
Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.
The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.
Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.
Stamp duty threshold to drop as Reeves denies extension
Saturday 19 October 2024 11:31
Jabed Ahmed
The chancellor is reportedly planning to confirm that the heightened stamp duty threshold will drop back to previous levels in March, costing housebuyers up to £2,500 more.
In 2022, the Conservatives under Liz Truss increased the ‘nil rate’ threshold – when stamp duty starts being paid – from £125,000 to £250,000. For first-time buyers, it rose from £300,000 to £425,000.
The approach is expected to raise £1.8 billion a year by 2029-30, but experts have warned the news will cause “chaos” in the property market as buyers rush deals to save money.
Property expert Kirstie Allsopp told Times Radio: “It’s become so complicated that I can no longer tell anyone what they would be paying in stamp duty.”
“It won’t claw back any money. Stamp duty is a dead tax.”
Government will keep manifesto pledges, says Starmer
Saturday 19 October 2024 10:29
Jabed Ahmed
Prime Minister Sir Keir Starmer has said that the government will keep to manifesto pledges ahead of the Budget.
Asked about whether reported tax changes under consideration would keep to their promise of not increasing taxes for working people, Sir Keir told a press conference in Berlin: “We are going to keep our manifesto pledges.”
He added: “I’m not going to pre-empt the individual measures that will be outlined by the Chancellor in due course.
“This is going to be a Budget that will fix the foundations and rebuild our country.”
When asked further about potential tax rises, the Prime Minister said that “you’ll just have to wait until the Chancellor lays that out in full, but the structure if you like, the framework, is going to be to fix the foundations and to rebuild our country.”
When is the 2024 Budget and what might be in it?
Saturday 19 October 2024 09:43
Jabed Ahmed
Chancellor Rachel Reeves will deliver Labour’s first Budget on Wednesday 30 October.
Each year, the chancellor of the exchequer - who is in charge of the government's finances - makes a Budget statement to MPs in the House of Commons.
The speech outlines the government's plans for spending and taxes.
The Budget speech usually starts around 12:30pm and lasts about an hour. The Independent will be bringing you all the latest updates on the big day.
Ms Reeves may be considering pushing the freeze beyond its current expiry date of 2028 in a move that could raise £7 billion, according to the Financial Times.
Other measures reported to be under consideration include increasing employers’ national insurance contributions, raising fuel duty for the first time since 2010, changes to rules on inheritance tax and stamp duty, and a levy on e-cigarettes, according to reports across the media.
The Treasury has so far declined to comment on Budget speculation.
What should I do with my savings ahead of the Budget?
Saturday 19 October 2024 03:00
Howard Mustoe
Ahead of the Budget on 30 October, there has been fevered speculation about changes to pension savers’ tax allowances and other perks.
Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement.
The real problem facing Rachel Reeves over the death tax...
Saturday 19 October 2024 01:00
James Moore
... is that not only is it deeply unpopular, cautions James Moore – but it’s only a drop in the ocean when it comes to plugging the UK’s vast fiscal black hole
Tax-free cash withdrawals ‘surge while pension contributions plummet’ as savers panic over Budget rumours
Friday 18 October 2024 23:00
Howard Mustoe
Retirees are rushing to withdraw cash from their pensions ahead of feared cuts to tax-free benefits in the Budget, the boss of one of Britain’s top investment platforms has said.
Savers can typically take 25 per cent of their pension as a lump sum, up to a limit of £268,275, allowing them to avoid paying income tax, but Chancellor Rachel Reeves is reportedly considering a cut to the amount savers can withdraw without triggering a payment to HM Revenue & Customs.
Workers set for income tax hike as Rachel Reeves ‘to extend freeze on thresholds’
Friday 18 October 2024 22:11
Tom Watling
ICYMI: How make-or-break Budget has fractured Keir Starmer’s cabinet
Friday 18 October 2024 20:05
Archie Mitchell
Rachel Reeves’ Budget is a make-or-break moment for Sir Keir Starmer’s government, potentially sparking a decade of national renewal – or sowing the seeds of Labour’s downfall.
The prime minister’s poll ratings are at rock bottom after just over 100 days in charge, and the much-hyped “tough choices” to be unveiled on October 30 will likely do little to help boost his appeal.
Keir Starmer’s cabinet is rebelling – what took them so long?
Friday 18 October 2024 19:00
John Rentoul
Led by Angela Rayner, several cabinet ministers have broken ranks on the chancellor’s demand for swingeing budget cuts – and the only winner from this early breakdown of party discipline will be the prime minister, says John Rentoul
Keir Starmer’s warning to ministers after cabinet Budget row erupts
Friday 18 October 2024 18:00
Albert Toth
Sir Keir Starmer has warned his senior ministers they will have to live with swingeing spending cuts after a cabinet row over the Budget erupted in public.
The prime minister is facing a backlash from Angela Rayner and other members of his top team over cuts to government departments set to be unveiled by the chancellor, Rachel Reeves.
Inheritance tax to rise in Budget as Reeves plans to hit well-off
Friday 18 October 2024 17:05
Millie Cooke
The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances.According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.
Budget 2024: Inheritance tax set to rise – here’s what it means for you
Friday 18 October 2024 16:00
Salma Ouaguira
Chancellor Rachel Reeves is reportedly planning changes to inheritance tax at the Budget as she looks to raise up to £40bn from tax hikes and spending cuts.
While specifics remain unclear, any changes could significantly affect how much families pay on inherited properties and their financial futures.
Stamp duty threshold to drop as Reeves denies extension
Friday 18 October 2024 15:16
Albert Toth
The chancellor is reportedly planning to confirm that the heightened stamp duty threshold will drop back to previous levels in March, costing housebuyers up to £2,500 more.
In 2022, the Conservatives under Liz Truss increased the ‘nil rate’ threshold – when stamp duty starts being paid – from £125,000 to £250,000. For first-time buyers, it rose from £300,000 to £425,000.
The approach is expected to raise £1.8 billion a year by 2029-30, but experts have warned the news will cause “chaos” in the property market as buyers rush deals to save money.
Property expert Kirstie Allsopp told Times Radio: “It’s become so complicated that I can no longer tell anyone what they would be paying in stamp duty.”
“It won’t claw back any money. Stamp duty is a dead tax.”
Reeves warned inheritance tax hike would punish middle classes as Budget backlash intensifies
Friday 18 October 2024 14:30
Albert Toth
Chancellor Rachel Reeves has been warned that her plan to hike inheritance tax risks punishing middle-class homeowners as the backlash against her Budget intensified.
Ms Reeves is considering an increase on the “death tax”, which raises about £7bn for the Treasury each year, despite the fact it is routinely found to be one of voters’ least favourite measures.
How DWP rules for disability benefit assessment could change as Reeves’ Budget approaches
Friday 18 October 2024 13:39
Albert Toth
Changes to disability benefit assessments are set to come into force soon as Rachel Reeves reportedly pushes ahead with plans to shave £3 billion from the welfare bill ahead of Labour’s upcoming Budget.
Read all about the proposed plans here:
Inheritance tax to rise in Budget as Reeves plans to hit well-off
Friday 18 October 2024 11:30
Albert Toth
The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances.
According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.
Independent readers name their priorities for Labour Budget
Friday 18 October 2024 10:30
Albert Toth
With a new Labour government in power and the first autumn statement on the horizon, we wanted to hear your economic priorities.
When we asked what you thought should be included in the budget, responses from Independent readers varied widely.
Here’s a closer look:
Reeves considers raising tax on vaping in Budget
Friday 18 October 2024 09:28
Albert Toth
Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.
The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.
Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.
Reeves’ capital gains tax plans will sidestep homeowners, reports say
Friday 18 October 2024 09:07
Albert Toth
Experts have long anticipated that Labour will put capital gains tax up in the Budget on 30 October. This is the levy is paid on the profit made when an asset which has increased in value is sold. This includes houses, assets and shares, all paid between 20 and 28 per cent.
The latest reports indicate that Ms Reeves will respond to calls to raise capital gains tax in line with income tax bands – meaning rates of 20 to 40 per cent – but will exempt property from the new rates.
Rachel Reeves to push forward with £3bn sickness benefits cut in Budget
Friday 18 October 2024 08:57
Millie Cooke
Rachel Reeves is understood to be considering about £3bn of cuts to the welfare bill over the next four years by restricting access to sickness benefits, as the chancellor embarks on a brutal cost-cutting mission to fill a so-called £22 billion black hole left by the Tories.
The chancellor is expected to save the £3bn sum by committing to the previous government’s plans to reform work capability rules.
Independent readers name their priorities for Rachel Reeves’ looming Labour budget
Friday 18 October 2024 15:59
Albert Toth
When we asked what you thought should be included in the budget, responses from Independent readers varied widely.
Many called for a fairer tax system and more direct contributions for public services, while others petitioned for fewer regulations and ‘red tape’ to improve productivity.
Read more:
ICYMI: Angela Rayner leads Cabinet revolt against Reeves’ ‘huge’ Budget cuts
Friday 18 October 2024 07:00
Archie Mitchell
Sir Keir Starmer is facing a backlash from Angela Rayner and his cabinet over “huge” cuts to departmental spending to be unveiled in Rachel Reeves’ Budget.
The prime minister has received letters from senior ministers raising concerns about the spending cuts after a number spoke out against the measures at Tuesday’s cabinet meeting.
Budget rumours: Capital Gains reform
Friday 18 October 2024 04:00
Albert Toth
Capital Gains Tax (CGT) is paid on the profit made when an asset which has increased in value is sold. It is applied to things like the sale of personal possessions worth more than £6,000 (apart from a car), property that’s not the seller’s main home, shares and business assets.
It is charged at 10 or 18 percent for basic rate taxpayers, and 20 or 24 for higher or additional rate earners. There is a tax-free allowance of £3,000.
There are several ways CGT could be changed. In the run-up to the election, the Lib Dems and Greens both said they would rethink the tax bands to be more similar to income tax, raising an estimated £5.2bn a year.
Analysis: How make-or-break Budget has fractured Keir Starmer’s cabinet
Friday 18 October 2024 01:00
Archie Mitchell
Rachel Reeves’ Budget is a make-or-break moment for Sir Keir Starmer’s government, potentially sparking a decade of national renewal – or sowing the seeds of Labour’s downfall.
The prime minister’s poll ratings are at rock bottom after just over 100 days in charge, and the much-hyped “tough choices” to be unveiled on October 30 will likely do little to help boost his appeal.
