Keir Starmer is facing backlash after announcing that the £2 bus fare cap will be raised to £3 at the end of the year during a pre-Budget speech today.
The announcement came as the prime minister delivered a stark speech warning of “unprecedented” economic challenges during a visit to the West Midlands.
His speech comes ahead of Labour’s first Budget since coming into power on 30 October, where chancellor Rachel Reeves will lead one of the most anticipated fiscal events in over two decades.
Tory leadership hopeful Robert Jenrick called the prime minister “clueless”, saying: “Starmer must think people who get the bus aren’t working people.”
The PM spoke as Labour faces a row over reported plans to raise employer national insurance contributions and capital gains, with critics arguing these measures would breach the party’s manifesto commitment to not raise taxes on “working people.”
Addressing the row, Sir Keir said the UK’s working people “know exactly who they are,” repeating the term 24 times throughout his speech in Birmingham.
We’ll be bringing you all the latest updates ahead of the big event here, on The Independent’s liveblog.
Key Points
- When is the Budget and what is the ‘stealth’ tax rise Labour are set to keep?
- 8 things to watch out for in autumn budget 2024
- Sir Keir Starmer confirms that the £2 cap on bus fares will rise
- Sir Keir mentions ‘working people’ 24 times after ministers refuse to say who they are
- Sir Keir: “Nobody wants higher taxes"
Keir Starmer mistakenly announces five new freeports in comms ‘cock-up’
15:51
Albert Toth
Sir Keir Starmer mistakenly announced that Rachel Reeves would unveil five new freeports at Wednesday’s budget, in what officials have reportedly dubbed a “total cock-up”.
The prime minister told reporters that while freeports were a scheme inherited by the new Labour government, it plans to “maximise their potential”, saying they would “have this government’s stamp on them”.
Lower taxes and well-performing public services is “fiction” - Starmer
14:55
Albert Toth
Sir Keir Starmer said today that Labour would not continue the “fiction” that you can have lower taxes and public services that run properly, in a speech ahead of the Budget.
Asked if his priorities were out of step with the public mood after a poll suggested most voters would prefer lower taxes rather than investment in public services, the Prime Minister said: “No. I think for too long, we pretended that you could lower tax and spend more on your public services, but you can’t. And it’s about time we faced up to that.”
He added: “Almost everybody knows the NHS is broken. We’re going to fix it, put it back on his feet, and make it something we can be proud of again.
“That’s the path we’re choosing, and that’s what we’ll deliver for working people.
“But what we’re not going to do is continue the fiction that got us here in the first place, the pretence that you can always have lower taxes and that your public services will run properly.
“Because the last 14 years have shown this is completely and utterly untrue, and people voted for change.”
Lib Dems: Labour’s ‘bus tax' will hit communities
14:30
Albert Toth
Responding to Keir Starmer’s Q&A in which he announced the £2 bus fare cap will be increasing to £3, Liberal Democrat Environment Spokesperson Tim Farron MP said: “Keir Starmer’s hike in the bus fare cap is without a doubt a bus tax.
“While this new Government has been left to make difficult choices, they cannot allow the burden of fixing the Conservatives’ mess to be on people and small businesses across the country.
“The fundamental issue is that neither Labour nor the Conservatives before them seemed to understand is that for rural communities, it doesn’t matter if the cap is £2 or £3 if they don’t have a bus service in the first place.
“Bus routes are the backbone of economic activity in communities across our country - if the Government is serious about growth then it would invest in services which will boost our struggling town centres and high streets.”
Environmental campaigners criticise Labour’s bus cap increase
14:10
Albert Toth
Greenpeace condemned Sir Keir’s decision to hike the bus fare cap, saying it “makes no political, economical or environmental sense whatsoever”.
“This is a ‘tough decision’ the government did not need to make,” senior transport campaigner Paul Morozzo said.
He added: “Not only are buses a critical lifeline to millions of people - particularly those on lower incomes - and the use of them a driver of economic growth, but it’s absolutely critical that we get more people out of polluting cars and onto cleaner public transport if we have any chance of tackling the climate crisis. Raising the fares by 50% will obviously won’t help achieve that.
“A government that was truly prioritising the needs of the poorest in society would rethink this decision at the first opportunity, and provide young people especially the possibility to reach education and employment they would otherwise be shut out from”.
Keir Starmer confirms £2 bus fare cap will be hiked to £3 ahead of ‘tough’ Budget
13:45
Archie Mitchell
The cap on bus fares will rise from £2 to £3 until the end of next year in a bid to ease pressure on the public finances, Sir Keir Starmer has confirmed.
Laying the groundwork for Wednesday’s Budget, the prime minister said the existing cap will be replaced by the higher fare limit.
Comment | It is time to cut interest rates – and give homeowners a break
13:23
Albert Toth
With inflation falling rapidly, the Bank of England is looking to cut interest rates, writes James Moore.
He adds: “There are still reasons to be cautious but mortgage payers can look forward to light at the end of the tunnel.”
Changes to debt rule will not affect interest rates, says Starmer
13:00
Albert Toth
Sir Keir Starmer has said he does not accept that changing the way debt is measured will affect interest rates and make mortgages or debt more expensive.
Asked about planned changes to the debt rule to borrow more for investment into capital expenditure, the Prime Minister said: “I’m not going to pre-empt exactly what the Chancellor will say on Wednesday, but I have been really clear that we have to move to a situation where we invest in the future of this country.
“Where we invest to ensure that we get the better jobs that we need, we have the infrastructure that we need.
“And so part of what we will say on Wednesday is, first, how we’re going to fix the foundations and deal with the problem we’ve inherited, but secondly, how then we rebuild the country.
“And investment is an important part of that story. Precisely how that will take place will be set out in detail on Wednesday. I do not accept the proposition that it will have an impact on interest rates.”
Reeves to announce £240 million for services that help people into work
12:40
Albert Toth
The Chancellor will announce £240 million in funding for services to get people back into work in the Budget, Sir Keir Starmer has said.
The Prime Minister said in a speech: “Rebuilding Britain and delivering growth will take the skills and effort of all of us.
“That’s why this Budget will also get Britain working. It will pave the way for reforms that tackle the root causes for economic inactivity and make sure that those who can work do work.
“As a Labour Government, we will always help those who cannot support themselves, but the UK is the only G7 country for whom inactivity is still higher than it was before Covid.
“And that’s not just bad for our economy, it’s also bad for all those who are locked out of opportunity.
“So the Chancellor will announce £240 million in funding to provide local services that can help people back into work.”
Sir Keir Starmer confirms that the £2 cap on bus fares will rise
12:20
Albert Toth
Speaking today, Sir Keir Starmer confirmed the £2 cap on bus fares would end, but promised a new £3 limit instead.
The Prime Minister said: “On the £2 bus fare, first thing to say is the Tories only funded that until the end of 2024 and therefore that is the end of the funding in relation to a £2 capped fare.
“I do know how much this matters, particularly in rural communities where there’s heavy reliance on buses.
“And that’s why I’m able to say to you this morning that in the Budget we will announce there will be a £3 cap on bus fares to the end of 2025 because I know how important it is.”
We will do the “hard work” in this Budget says Starmer
12:01
Albert Toth
Asked if this will be the end of major tax rises under the current Labour government, the prime minister says he can’t give a “cast iron guarantee” as “we don’t know what will be around the corner.”
“The tough stuff is coming from this Budget,” he says, “but we’re going to resist the temptation to say at no point ever will there be an adjustment to anything else in the future.”
“Every pensioner will be better off” says Starmer
11:57
Albert Toth
Asked if pensioners who are struggling with fuel costs should regret voting Labour, Sir Keir says he understand the concerns, but adds that Labour is “protecting the most vulnerable with pension credit,” and making sure all entitled pensioners are taking it up.
But, he adds, Labour is also “fixing the foundations and stabilising the economy,” enabling a commitment to the triple lock to remain in place.
Mike Amesbury footage was ‘shocking’, Keir Starmer says
11:53
Albert Toth
Sir Keir Starmer has said the video of suspended Labour MP Mike Amesbury punching a constituent was “shocking”.
The prime minister said: “Look, I've seen the video footage. It's shocking. We moved very swiftly to suspend him as a member and as a member of parliament.
“There is now a police investigation. In the circumstances, you'll appreciate there's not much more I can say.”
Analysis: Daring his detractors even before the Budget is a bad sign
11:53
David Maddox
The fact that Keir Starmer is already daring his government’s detractors to say what they would do instead is a bad sign about what is coming.
The language of tough decisions, and unprecedented challenges certainly laid the ground for a Budget to deal with a crisis.
Normally politicians dare their critics to say what they would do after a Budget has been delivered. Starmer along with Rachel Reeves are the only ones who know what is coming. He is already predicting an assault on his government in the media and political sphere.
We will get the details on Wednesday from the chancellor but the mood music is already distinctly gloomy.
Sir Keir mentions ‘working people’ 24 times after ministers refuse to say who they are
11:37
Albert Toth
Sir Keir Starmer has mentioned “working people” 24 times in his speech, despite days of confusion from ministers about what the term means.
The prime minister has promised to not raise taxes on so-called “working people”, suggesting they are those whose income is predominantly from work, not assets.
It is unclear whether the term is intended to include those such as small business owners earning relatively little through their ownership of firms.
He has used the term 24 times in his speech in Birmingham, and will undoubtedly face a grilling over it in the media Q&A which follows.
Analysis: Starmer is making promises for ‘working people’ but is actually echoing Rishi Sunak
11:34
David Maddox
Keir Starmer and his ministers have struggled to say who they mean by “working people” in the run up to Wednesday’s Budget.
But that did not stop the prime minister, doubling and tripling down on the term which got him through the election.
If Sir Keir does not know who they are he optimistically noted: “Working people know who they are.”
There was also an announcement of a £240 million fund to get people back into work - so more working people.
In truth though he is now echoing the words of his Tory predecessor Rishi Sunak. Sunak spent the months before the election saying he was making difficult “long term decisions”.
Now Starmer is talking about “tough decisions” not looking at the “short term sticking plasters”.
While though he wants a government for working people, the reality is that he is talking about record tax rises to cover as much as £40 billion in a black hole in his spending plans.
The reality is though that what happens now only matters for him in the way that voters see Labour in five years time. He is banking on pain now and better times later.
Most of all he is banking on economic growth. If he does not deliver then Labour will be facing trouble in 2029.
Sir Keir: “Nobody wants higher taxes"
11:34
Albert Toth
Turning to rumoured tax rises, Sir Keir says “nobody wants higher taxes, just like nobody wants public spending cuts.”
“We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees,” he says.
“And it’s not 2010, where public services were strong, but the public finances were weak. These are unprecedented circumstances.
“We have to deal with both sides of that coin – these are unprecedented circumstances.”
PM praises Rachel Reeves as first woman chancellor
11:30
Archie Mitchell
The prime minister has praised his chancellor Rachel Reeves for preparing to make history as the first woman to deliver a Budget.
Sir Keir Starmer said: “When Rachel Reeves stands up, she will be making history. And I can tell you, young women and girls across the country will be watching. They will look up and they will notice.”
Women in top jobs has been a sore topic for the Labour Party, which has never had a female leader, while the Conservatives have had three female prime ministers.
Starmer makes dig at ‘working people’ row
11:29
Albert Toth
Speaking in Birmingham, the prime minister refers to the recent row about how Labour defines ‘working people,’ saying “I know some people want to have a debate about this.”
“I know there will always be the exception that proves the rule – welcome to the wonders of a diverse country.”
But he adds that the working people of the UK “know exactly who they are.”
“Every single one of our national missions is about delivering for them, and we’re getting on with the job.”
‘Change must be felt’, Sir Keir Starmer says
11:24
Archie Mitchell
Sir Keir Starmer has made a pitch to be judged on the results of his choices - not the message he conveys to the public.In a bid to draw a dividing line between himself and the boosterism of the last government, the prime minister promised he would “never stand here and tell you to feel better if you don’t”.
He added: “I will never ask you to feel grateful for what you should expect as a given.”
And he said that trust in his government must be earned through actions, not words, telling an audience in Birmingham: “Change must be felt, but every decision that we have made, every decision that we will make in the future will be made with working people in our minds.”
Starmer pays tribute to Birmingham’s ‘working people'
11:23
Albert Toth
After his introduction by West Midlands mayor Richard Parker in Birmingham, Sir Keir Starmer says the city is at the heart of Labour’s “plan for growth.”
He says Labour has started the “long difficult but resolute path towards a Britain returned to the service of working people”
The PM reiterates that his government is one “for the working people of this country,” adding that Labour wants to “carry their hopes and aspirations with us.”
Sir Keir adds that “the basic completely reasonable desire to want a better future for your family” is “the driving purpose for this government.”
PM will ‘roll up his sleeves and fix the foundations,’ West Midlands mayor
11:23
Archie Mitchell
Sir Keir Starmer was introduced by West Midlands mayor Richard Parker, who ousted Tory incumbent Andy Street and joked that he “knows a thing or two about inheriting a political mess from the Tories”.
The West Midlands mayor promised Sir Keir will “roll up his sleeves and do whatever is necessary to bring stability to the economy”.
Sir Keir to lay foundations for ‘fixing the foundations’ Budget
11:17
Albert Toth
The prime minister will shortly arrive in a dark room in Birmingham packed with members of the media and public to lay the groundwork for Wednesday’s Budget.
Sir Keir Starmer will set Rachel Reeves’ speech as a moment to “fix the foundations” of the British economy after 14 years of Tory rule.
He will say it is time to “embrace the harsh light of fiscal reality so we can come together behind a credible, long-term plan”.
And he will rail against the “populist chorus of easy answers”, adding that “we are never going back to that”.
After his speech, Sir Keir will take questions from the media.
Budget ‘most honest’ in years, Cabinet minister claims
11:10
Albert Toth
A Cabinet minister has said he thinks this week’s Budget could be the “most honest” in years as the Prime Minister prepares to say that Wednesday’s statement will “embrace the harsh light of fiscal reality”.
Chancellor of the Duchy of Lancaster Pat McFadden said on Monday morning that Rachel Reeves’ first Budget would “end the fiscal fiction of things being announced which had no money set aside for them”.
His comments come ahead of a speech by Sir Keir Starmer today, in which he is expected to warn of “unprecedented” economic challenges.
When is the Budget and what is the ‘stealth’ tax rise Labour are set to keep?
10:37
Albert Toth
Labour is expected to extend an income tax measure that has been described as a “stealth tax” at the upcoming Budget as more people are set to pay higher rates.
Officials have said Rachel Reeves is looking to extend the freeze on income tax thresholds, which has dragged millions of earners into paying higher rates of income tax since 2021.
Budget 2024 preview: What tax rises could Labour’s first statement contain?
09:57
Albert Toth
Rachel Reeves will announce Labour’s first Budget in 15 years on 30 October, as speculation mounts around what measures could be included.
The chancellor faces a difficult task, with the fiscal event set against the backdrop of the £22bn ‘black hole’ in public spending which she announced in late July.
Here’s your guide to some of the tax rises the chancellor could be considering for her first Budget:
Rachel Reeves borrows George Osborne’s mantra in ‘strivers’ Budget
09:30
Kate Devlin
Rachel Reeves has borrowed the language of the former Tory chancellor George Osborne to say her first Budget will be for “strivers” as her party faced a deepening row over the definition of “working people”.
“To these people I say, I’ve got your back.... I will deliver for you. It’s a Budget for the strivers,” she wrote in The Sun on Sunday.
The Independent’s Whitehall editor Kate Devlin reports:
Give us five years, Starmer tells Brits ahead of Budget
08:55
Albert Toth
“Judge us by whether, in five years’ time, you have more money in your pocket,” Sir Keir Starmer writes in a letter for The Mirror today.
The prime minister writes: “The first Labour budget in 14 years. The first budget in British history to be delivered by a female Chancellor of the Exchequer. And the first time in a decade and a half where the concerns and priorities of working people are put first.
“This is the moment that will reject austerity, chaos and decline and choose a clear path of stability, investment and reform.
“It’s no secret that for fourteen years, the Tories didn’t just run a leaky ship – they sailed it carelessly into every storm, smashing it against the rocks, and leaving the British people to pay the price.”
Prime minister to deliver harsh warning ahead of Budget
08:25
Albert Toth
Sir Keir Starmer is set to deliver a harsh pre-Budget warning as he travels to the West Midlands today, outlining the “unprecedented” economic challenges the country faces.
The prime minister will say: “We have to be realistic about where we are as a country. This is not 1997, when the economy was decent but public services were on their knees.
“And it’s not 2010, where public services were strong, but the public finances were weak. These are unprecedented circumstances.
“And that’s before we even get to the long-term challenges ignored for 14 years: an economy riddled with weakness on productivity and investment, a state that needs urgent modernisation to face down the challenge of a volatile world.”
What to watch out for in the Budget? VAT on private schools and boost to school building
07:27
Holly Bancroft
The government has announced plans to remove the exemption which saw private school not have to pay 20 per cent VAT.
The change is due to come in in January. But Ms Reeves is expected to confirm that military families, who often have to move countries and homes, will be protected from the change in her Budget.
Ms Reeves has also said she will earmark £1.4 billion to rebuild crumbling schools as she pledges to prioritise education and childcare in the Budget.
There will also be another £1.8 billion to expand government-funded nursery care. Every child over nine months is to become eligible for 30 ‘free’ hours of childcare next September.
What to watch out for in the Budget? Winter Fuel Payments
06:33
Kate Devlin
Ministers have announced plans to strip the payments from millions of pensioners by means testing the benefit. But the move has prompted a backlash, amid warnings that some very poor pensioners are set to suffer this winter.
Read more about the pensioners affected by the winter fuel payment cuts here:
What to watch out for in the Budget? Inheritance Tax and Fuel Duty
05:20
Holly Bancroft
One of the consistently most unpopular taxes, despite being paid by just 4 per cent of the population. Ministers are thought to be planning to raise money from inheritance tax, possibly by making changes to a series of exemptions.
Ministers are also facing calls not to increase fuel duty, which has not risen in more than a decade.
What to watch out for in the Budget? Borrowing
04:31
Kate Devlin
The chancellor Rachel Reeves has changed her rules around debt, to allow her to invest in major projects. This is expected to give her up to an extra £50bn of borrowing to invest in infrastructure building such as roads, railways and hospitals.
Former Bank of England governor Mervyn King says extra borrowing could have an impact on interest rates. Asked on Sky News’s Sunday Morning With Trevor Phillips programme, he said: “Certainly if you borrow more, it doesn’t matter how you dress it up in terms of a different fiscal rule, people know that higher borrowing means higher borrowing, and financial markets and people who lend to the government will demand a slightly higher interest rate to compensate for the higher amount of debt that they’re being asked to finance.
“It doesn’t have to be dramatic, but it certainly will put some upward pressure on long-term interest rates. I don’t think it necessarily affects what the Bank of England does today or even next year, but it certainly will have some upward pressure.
What to watch out for in the Budget? Tax rises
03:21
Kate Devlin
Rachel Reeves is expected to raise employer national insurance payments. Labour has pledged before the election not to raise NI, but the party insists that applied only to employees, not employers.
But critics have accused ministers of breaking their promises and planning to bring in a ‘tax on jobs’.
The chancellor is also thought to be planning to extend a freeze on the point at which people start paying income tax, or have to pay higher rates. Freezing the level means that over time inflation drives more and more people into paying higher rates.
Four people arrested during pro-Tommy Robinson and anti-racism marches
02:35
Holly Bancroft
Four people were arrested on Saturday during far right and anti-racism counter-protests as organiser Tommy Robinson missed his own event after being remanded in custody.
Two arrests took place at the far-right protest organised by Mr Robinson, 41, real name Stephen Yaxley-Lennon, where demonstrators displayed anti-immigration placards.
Around midday, thousands of Mr Robinson’s supporters gathered in central London, marching from Victoria Station to Parliament Square.
Among the messages were signs reading “Two tier Keir fuelled the riots”, alongside calls to “Bring back Rwanda” and “Stop the Boats”. Some demonstrators were seen holding cans and glasses of alcohol.
The Metropolitan Police reported that two individuals from Mr Robinson’s protest were detained on suspicion of breaching Public Order Act conditions and another on a racially aggravated public order charge. Meanwhile, a counter-protest organised by Stand Up to Racism, encouraged by calls for a “massive anti-fascist demonstration”, saw thousands rallying in the capital.
Read the full story here:
Labour donor says rich Brits opposing higher taxes should ‘f*** off’
01:31
Holly Bancroft
A prominent Labour donor has told wealthy Britons threatening to leave the country over potential tax hikes to “f*** off,” claiming they contribute little to the UK if they are only here for low taxes.
Dale Vince, the green energy tycoon who has previously donated £5 million to Labour, has dismissed arguments that higher taxes will harm UK entrepreneurship, describing this view as “profoundly stupid.” Instead, Mr Vince suggests Britain would be better off without those who are prepared to leave if, as expected, Shadow Chancellor Rachel Reeves raises taxes in the upcoming Budget.
“If people only live here because they pay less tax, they should f--- off,” said Mr Vince, The Telegraph reported. “This is a brilliant country. There’s no way people won’t live here because of a fairer tax system.”
Recap: Reform MP says party’s migrant plan would lead to ‘friendly stand-off’ between UK and France
00:29
Holly Bancroft
Richard Tice, the deputy leader of Reform UK, has admitted his party’s policy of picking up and taking migrants back to France could result in a “friendly stand-off” between the countries in the English Channel.
Speaking to Sky News’s Sunday Morning With Trevor Phillips programme, he said: “It’s very simple. The government’s policy of smashing the gangs is clearly not working, and sadly people are literally dying... The only way to stop the boats is a variant of what Australia did.
“We’ve talked about it before. I will repeat it again: You’ve got to safely pick up and take back to France, which we are legally entitled to do under the 1982 UN Convention of the Law of Sea.
“And by the way France has a legal obligation to do the same, which they are in breach of. So we are legally entitled to do this.
“If the French coastguards say ‘you’re not coming in’ they’re in breach of international law.”
When pressed on what would happen if French authorities refused, Mr Tice said: “Well then we’ve got a stand-off... I’m not saying go to war but you can have a friendly stand-off with friends. It’s the only way you’re going to stop the deaths. Ours is the kind and compassionate policy.”
What is reportedly in this week’s Budget?
Sunday 27 October 2024 23:32
Holly Bancroft
On top of what has been confirmed, here are a number of measures that are reportedly going to be in Labour’s first Budget this week:
National insurance hike for employers
The amount employers will pay in national insurance is reportedly set to rise in the Budget.
Reports have suggested it could be increased to up to two percentage points. It has been reported that the raise would be used in part to fund the NHS.
Ms Reeves will also make a cut to the earnings threshold at which employers start making national insurance contributions, The Times has reported. Both measures are expected to raise £20bn.
Continued freeze on income tax thresholds
A continued freeze on income tax thresholds beyond 2028 has been floated ahead of the Budget. Government sources have insisted it would not be a breach of Labour’s election promise to not tax working people.
A threshold freeze would allow Ms Reeves to raise an estimated £7bn by bringing more people into the tax system.
Capital gains tax on shares
Rachel Reeves will reportedly use her Budget to increase capital gains tax on the sale of shares.
However the rates will not change for selling second homes, The Times reported.
Capital gains on profits from the sale of shares, which is currently levied at a higher rate of 20 per cent, is reportedly going to rise by several percentage points.
What is expected in this week’s Budget?
Sunday 27 October 2024 22:22
Holly Bancroft
What has been trailed so far from Wednesday’s Budget:
Slash Right to Buy discount
Rachel Reeves is to slash Right to Buy discount given to those purchasing their council house. The move is designed to protect existing stock so thousands more homes remain for rent.
£500m boost for social homes
An extra £500m for the current Affordable Homes Programme will see thousands more houses built. There will also me hundreds of millions of pounds invested in housing projects in Liverpool.
£1.4bn for schools and more childcare
£1.4bn will be set aside in the Budget to rebuild crumbling schools.
£1.8bn will also be allocated for the expansion of government-funded childcare, with a further £15m of capital funding for school-based nurseries.
Ms Reeves has also said she would triple investment in free breakfast clubs to £30m in 2025-26.
Kemi Badenoch: ‘I’m pretty tough. I’m not scared'
Sunday 27 October 2024 21:32
Holly Bancroft
In case you missed it, Tory leadership front runner Kemi Badenoch sat down for an interview with The Independent’s Political Editor David Maddox:
Defiant Kemi Badenoch has vowed she will not give up her hard-hitting style, saying: “This is what always happens to strong women. If you don’t play ball, then they will come after you.”
The favourite to become Tory leader next month was responding to claims by Tory critics that she had been “too abrasive” and also to Doctor Who actor David Tennant, who said he wished she would “shut up”.
In a candid interview with Independent TV, she said: “People know that I’m pretty tough. I’m not scared. I will always do the right thing, and I won’t be quiet when it is time to speak up.”
You can read more from her interview here:
Government’s welfare adviser admits Britain is a ‘sick nation'
Sunday 27 October 2024 20:31
Holly Bancroft
The government’s new welfare adviser Paul Gregg has said that Britain is a “sick nation” and that the increased number of young people on sickness benefits is “very scary”.
Mr Gregg, a professor of economic and social policy, was appointed by work and pensions secretary Liz Kendall to chair a new advisory board.
His role will look at ways to reduce inactivity among working-age people, The Sunday Times reported.
Speaking at a lecture in London recently, Mr Gregg said: “We are a sick nation, we have far higher rates of mental health problems and we have far higher rates of obesity and diabetes than other countries. This has come together...to form this surge in economic inactivity.”
He said that the UK was unique in its failure to recover from the pandemic in these areas. He added: “There’s something going wrong and I can’t tell you exactly what it is, but there’s something about our childhood, perhaps later childhood, teenage years, which has gone wrong.”
Historic churches could be forced to close if tax relief scrapped
Sunday 27 October 2024 19:27
Holly Bancroft
Historic churches could be forced to close if Rachel Reeves decides to scrap tax relief for repairs in this week’s Budget.
According to The Telegraph, 36 Tory MPs, church leaders and charities have written to the Chancellor calling on her to maintain a scheme which exempts places of worship from paying VAT at 20 per cent on restoration work.
They fear the measure could be scrapped as Ms Reeves looks for ways to fill the £22bn “black hole” that she says she inherited from the Conservatives.
The current commitment to fund the scheme ends in March next year, which means the Treasury has to decide whether to end it.
Scotland secretary: Labour Budget will ‘herald an era of growth for Scotland'
Sunday 27 October 2024 18:34
Holly Bancroft
The first Labour Budget for over a decade will “herald an era of growth for Scotland”, Ian Murray has insisted – with the Scottish Secretary saying SNP ministers at Holyrood must ensure any additional cash they receive goes towards frontline services.
He was speaking as Rachel Reeves prepares to deliver what will be the first Budget from a Labour Chancellor since 2009 on Wednesday.
While Ms Reeves has made clear the economic situation left by the Conservatives will mean difficult choices, she has said her Budget will “begin to fix the NHS and start to rebuild our economy”.
Her cabinet colleague Mr Murray has warned: “No-one should be in any doubt about the scale of the challenge the Labour Government inherited when it comes to the public finances.
“The Tories left us a £22 billion black hole, emptying the reserves meant for disasters and emergencies three times over.”
£1.4 billion to fix ‘crumbling’ schools as Reeves pledges to prioritise education and free childcare in Budget
Sunday 27 October 2024 18:02
Kate Devlin
Rachel Reeves has announced she will earmark £1.4 billion to rebuild crumbling schools as she pledges to prioritise education and childcare in the Budget.
Investment in free breakfast clubs for pupils will also be tripled, while there will be another £1.8 billion to expand government-funded nursery care.
The Chancellor said children “should not suffer for” because of a £22 billion ‘black hole’ Labour says it was left by the last Tory government.
However, experts cautioned that most of the funding would simply be enough to maintain existing programmes.
More than 400 schools which are part of a flagship government rebuilding scheme, set up under the Tories, still don’t have any builders.
Analysis: Rachel Reeves might just get away with breaking her promise – here’s how
Sunday 27 October 2024 17:04
Holly Bancroft
Chief political commentator John Rentoul has spelled out how Rachel Reeves could get away with raising taxes on working people in his latest column:
“When George HW Bush said, “Read my lips: no new taxes” as he accepted the Republican nomination for president in 1988, he thought he was on safe ground. And he would have gotten away with it if it hadn’t been for those meddling kids in Congress, where a Democratic majority forced him to put up taxes in a 1990 budget.
Bush insisted that he hadn’t imposed any “new taxes” – he had only increased existing ones. And, surprisingly, American voters seemed to accept this sophistry. He seemed so popular that the Democrats struggled to find a candidate to put up against him in the 1992 election.
But then the economy went into recession and a little-known governor of a small southern state ran against Bush as a New Democrat. Bill Clinton made Bush pay a heavy price for his tax pledge in the end; Bush’s broken promise was played like a broken record in the election campaign.
The other case study for Rachel Reeves as she prepared Wednesday’s Budget was Nick Clegg’s promise in the 2010 election to oppose a rise in university tuition fees. It was followed not just by a breach of the promise, but by the appointment of fellow Liberal Democrat Vince Cable as the cabinet minister who would sponsor the legislation to triple fees.”
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Recap: Education Secretary open to ban on smacking children
Sunday 27 October 2024 16:31
Holly Bancroft
The Education Secretary has said she is “open-minded” to a ban on smacking children, but she added there are no imminent plans to change the law.
Bridget Phillipson said she would like to hear more from experts on how such legislation could work - a change in tone from the previous Tory government which said it was up to parents to discipline their children.
It comes after Children’s Commissioner Rachel de Souza said a ban is a necessary safeguarding step and suggested similar measures already in place in Scotland and Wales should be adopted in England.
Asked whether she supports that proposal, Ms Phillipson told the BBC’s Sunday With Laura Kuenssberg show: “We are considering it, but this is not an area where we intend to bring forward legislation any time soon.
“I’d be keen to hear from the Children’s Commissioner and from others about how this would work. I’m open-minded on it. It’s not something we intend to legislate on, but I think we do need to look at how we keep children safe.”
She said measures set out in the Children’s Wellbeing Bill, which will be brought forward “by the end of the year”, will address many of issues relating to children’s social care and safeguarding.
Analysis: 8 things to watch out for in autumn budget 2024
Sunday 27 October 2024 16:05
Kate Devlin
Rachel Reeves is set to unveil Labour’s first Budget in a generation on Wednesday – and the first ever written by a female chancellor.
She has warned that it will involve “difficult decisions” – as she blamed the last Tory government for Related News & Content
