The chancellor will announce Labour’s first Budget in 14 years tomorrow, leading one of the most anticipated fiscal events in over two decades.
Ahead of her announcement, the chancellor has announced more details of NHS spending, pledging funding for two million extra appointments.
But health secretary Wes Streeting has warned that the NHS still faces “real problems this winter,” adding that “one Budget can’t undo 14 years of damage.”
The chancellor has also been warned that rumoured plans to increase employers’ national insurance contributions (NICs) could hit 700,000 workers with a £400 tax rise.
This is the number of individuals estimated to be working for ‘umbrella companies’ as contractors or freelancers. Due to a loophole in these workers’ tax status, they will often find themselves covering their employers’ NICs.
Andy Chamberlain, of self-employment body IPSE, said: “It’s difficult to see how this wouldn’t breach Labour’s pledge not to raise taxes for ‘working people’.”
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"
'Freebie loophole’ closed in new MP code
15:00
Albert Toth
The updated ministerial code will close the “Tory freebie loophole”, Cabinet Office minister Nick Thomas-Symonds has said.
Labour MP Kevin Bonavia (Stevenage), asked if the Government will “confirm that we will honour the pledges it made at the election”.
Mr Thomas-Symonds replied: “One of the many things that the Conservative government over 14 years destroyed, trust, I’m afraid was one of them, something this Government is determined to rebuild.”
James Wild, Conservative MP for North West Norfolk, asked: “why has the Prime Minister not yet published an updated version of the ministerial code? Are they still working out whether it is right to accept suits and glasses?”
Mr Thomas-Symonds replied: “We have already said that the Prime Minister will update the ministerial code and publish it shortly, and it’s making sure that it is fit for purpose, dealing with problems like the Tory freebie loophole, and that it meets the high standards the Prime Minister expects.”
Starmer chairs pre-Budget meeting
14:40
Albert Toth
Ahead of the Budget, Sir Keir Starmer chaired a political Cabinet meeting, without civil service officials.
A Labour spokesman said: “This Budget is about investment with Labour versus decline under the Conservatives. The Prime Minister opened the political Cabinet meeting by saying that ‘politics is about choices’ and that the Budget tomorrow will show that ‘we are choosing to fix the NHS, rebuild Britain and protect the payslips of working people’, to deliver on our mandate for change.
The Chancellor told ministers “there would have to be difficult decisions on spending, welfare and tax” to deal with the legacy she inherited.
“She said the Labour Party promised there would be no return to austerity and the Budget tomorrow would deliver on that promise. She said the choices the Government is taking will restore economic stability.
“She said the Budget would fix the foundations of the economy and deliver on the promise of change.”
‘No-one is going to be happy’: Unions brace for Reeves’ Budget
14:00
Kate Devlin
Union leaders are braced for increased taxes and spending cuts in Rachel Reeves’ Budget.
The chancellor has already warned she has had to make “difficult” choices in her first Budget, and the first one ever to be delivered by a female chancellor.
Labour is expected to increase employers’ national insurance contributions, extend the freeze on income tax thresholds, increase in capital gains tax on shares, and close inheritance tax loopholes.
One union leader told the Independent: “The impression we are getting is that no-one is going to be happy”.
Reeves’ first budget is about ‘protecting the payslips of working people’
13:40
Millie Cooke
Rachel Reeves’ first budget is about “protecting the payslips of working people”, the prime minister told a political Cabinet meeting.
It comes amid a growing row over the definition of “working people”, with the party having promised not to raise national insurance, income tax or VAT on those individuals.
Addressing the meeting on Tuesday, Sir Keir said “politics is about choices”, adding that Wednesday’s Budget will show the party is “choosing to fix the NHS, rebuild Britain and protect the payslips of working people”.
The prime minister also said that the “question for the Budget is not whether we must act, it is how we act and what choices we make in the national interest”, a Labour Party spokesperson said.
We will back the OBR says prime minister
13:20
Albert Toth
The Government will back the Office for Budget Responsibility (OBR), not trash it, the Prime Minister’s spokesman has said after Jeremy Hunt complained about the body publishing a review of the last administration’s spending plans on the same day as the Budget.
The former chancellor complained that the body publishing a review into the “black hole” Labour says it inherited on the same day as the Budget is not impartial.
Asked if the Government was using the OBR as a political tool, Sir Keir Starmer’s spokesman said: “No, the Prime Minister is clear that this Government is going to back the independent OBR, not trash it.
“The answer is not to blame the referee, face up to the challenges we faced and be honest about the trade-offs and choices the Government face, not pretend they don’t exist.
“That’s why the Government is strengthening the OBR through the Budget Responsibility Act to ensure that it’s never sidelined again, like we saw during the mini budget.
“The Government has been up front about the black hole of the nation’s finances and it fully backs the OBR and the independent scrutiny it provides.”
Public wants ‘positive, proactive’ vision from Budget, poll shows
12:30
Albert Toth
The public wants to hear a “positive, proactive vision” for growing the economy and restoring public services when the Chancellor delivers her Budget on Wednesday, a poll has found.
Polling by Ipsos on the eve of the Budget found 84 per cent of people thought it was important to hear about Labour’s plans for improving public services during Rachel Reeves’s speech while 80 per cent wanted to hear about plans to grow the economy.
Only 69 per cent said they wanted to hear about the financial “black hole” in current spending plans while less than half the public said it was important for Ms Reeves to talk about the role of the previous government in bringing about the current situation.
So far, more people said they had heard negative stories about the problems facing public services and the economy than about Labour’s plans for the future.
Trinh Tu, managing director of Ipsos UK public affairs, said the public was “sending a clear message” to the Government – “we know the problems, now give us solutions”.
She said: “Awareness of the challenges is high, but people are much less clear on Labour’s plans to address them.
Starmer says ‘working people’ shouldn’t fear the Budget – but who are they?
12:00
Albert Toth
As Labour leader Sir Keir Starmer assures the public that “working people” have nothing to fear from Wednesday’s Budget, confusion has arisen over who exactly qualifies as a “working person.”
As Chancellor Rachel Reeves prepares to deliver Labour’s first Budget in 14 years, we want to hear your views. How should “working people” be defined? Should high earners or those with investments be included? And how should this affect decisions in the upcoming Budget?
Share your thoughts here — we’ll highlight the most insightful comments as they come in.
Tories urge rethink on winter fuel payment changes ahead of Budget
11:30
Albert Toth
Conservative MPs have gathered in Westminster to call on the Government to “think again” about means-testing the winter fuel payment.
Later on Tuesday, they will hand in a petition to the Treasury ahead of Rachel Reeves’ first Budget on Wednesday.
Shadow work and pensions secretary Mel Stride told the PA news agency that the petition has collected “over a quarter of a million signatures”.
Mr Stride said that they are “calling upon the Government to think again about means-testing the winter fuel payment”.
He said “many” pensioners are going to “really, really struggle”, adding: “This Government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.”
“I am a working person,” says Wes Streeting
11:00
Albert Toth
Wes Streeting has said he is a working person but that it is “people on low and middle incomes” who the Chancellor has in her mind’s eye when it comes to the Budget.
“I am a working person. Last time I checked I was working very hard,” the Health Secretary told Sky News.
“What I will say is that in our manifesto we were very clear about the steps we were going to take to protect working people, which was ruling out increases in income tax, national insurance and VAT, and despite all the pressures that we are under and the scale of the black hole in the public finances, we will honour every single one of those commitments.
“Just on this ‘working person point’, I think what we mean is when we’re making decisions, especially in the context of a Budget, who do we have in our mind’s eye?”
He told Kay Burley: “With the greatest respect to you and I, and the jobs that we do and the salaries we’re on, and I know you work hard doing your job, I don’t think the Chancellor’s worried about whether you or I are going to get by. She is worried about people on low and middle incomes.”
Private school VAT plans won’t affect special educational needs, Streeting claims
10:30
Albert Toth
Private schools have the means to mitigate against the risk of children with special educational needs being priced out by tax rises, the Health Secretary has said.
In response to concerns about how raising tax on private schools will affect their provision to pupils with special educational needs, Wes Streeting told LBC: “Children with statements of special educational needs and disabilities will be exempt.”
Pushed on how this will work for children who do not have that statement, Mr Streeting said independent schools have the means to deal with those situations.
“Firstly, I’d say the statement is available to children and young people and their parents in that situation.
“I’d also say to independent schools, they have the means. They have hiked up their fees with inflation-busting increases for well over a decade and I’m sure they can take steps to mitigate against children being forced to drop out.”
What won’t be in the Budget? Labour’s less likely options weighed up
10:10
Albert Toth
The country is just days away from hearing Labour’s first Budget since coming into power, as speculation mounts around what measures could be making the cut.
Tax rises have been confirmed by Labour, with Keir Starmer telling reporters he would defend them “all day long.” Both the PM and chancellor Rachel Reeves have reiterated the party’s message that “tough decisions” are needed for economic growth.
Budget leaks necessary, Streeting says
09:42
Albert Toth
Disclosing parts of the Budget ahead of time is necessary to avoid shocking the markets, Health Secretary Wes Streeting has said.
Commons Speaker Lindsay Hoyle had complained that it is “unacceptable to go around the world telling everybody” about “major” new policy announcements rather than giving the information first to MPs.
“Look, I can firstly confirm for the benefit of Mr Speaker, in case he’s listening, certainly, what I’m announcing today is the delivery of Labour’s manifesto, so we are honouring our commitments,” Mr Streeting told Times Radio.
“So, you know, I hope I don’t find myself on the wrong side of the Speaker and, look, there’s a serious point here, which is it was important for the Chancellor when she was in Washington last week to explain the context in which she’s making some big reforms to our economy and the way that she handles investment in our national infrastructure.
“That was important to make sure that this Budget lands in the right context with the financial markets.
“We saw what happened with Liz Truss and Kwasi Kwarteng when they ignored the Office for Budget Responsibility and sidelined them, when they took the markets by surprise, they ended up tanking the economy, and we are still paying the price for it.
“But we do take the speaker seriously. We take Parliament seriously. We are members of Parliament first and foremost, and we’ve all heard very, very clearly and plainly what Mr Speaker said yesterday, and we will certainly be taking that into account in terms of our conduct in the coming days, weeks and months.”
Boost for low-paid as minimum wage set to rise by 6% in Budget
08:27
Archie Mitchell
Rachel Reeves will raise the minimum wage by 6 per cent at Wednesday’s Budget, handing a pay rise to more than a million workers on low incomes.
The chancellor is due to announce the inflation-busting hike when she delivers her first financial statement, with the increase higher than predicted in September.
NHS facing ‘real problems this winter’ and Budget cash will not prevent avoidable deaths, Streeting warns
07:00
Rebecca Thomas
The NHS faces “real problems this winter”, the health secretary has admitted as he refused to rule out the prospect of people waiting on trolleys and in corridors over the coming months.
Speaking on a joint visit to St George’s Hospital with chancellor Rachel Reeves, Wes Streeting said the extra money the health service is set to receive in Wednesday’s Budget might not prevent avoidable deaths and another winter crisis over the coming months.
The chancellor is expected to pump billions of pounds into the health service, including £1.5bn for new surgical hubs and scanners and £70m for radiotherapy machines.
Recap: Starmer is making promises for ‘working people’ but is actually echoing Rishi Sunak
06:00
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.
Reeves warns that Budget pain will just be the beginning with more difficult choices to come
05:00
David Maddox, Rebecca Thomas
Rachel Reeves has warned that tomorrow’s Budget will just be the beginning of painful measures to fix “14 years of Tory damage”.
The chancellor joined health secretary Wes Streeting for a hospital visit to highlight NHS funding ahead of her first major financial statement since becoming chancellor in July.
But with the prime minister also warning of “tough choices” ahead, Ms Reeves suggested that the expected tax rises this week will not be the end of difficult decisions to fix the country.
She has promised to produce economic growth but also pledged to her party that there will be “no new austerity”.
What should I do with my savings ahead of the Budget?
04:00
Albert Toth
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.
Private schools warn sector could ‘fall apart’ if hit by national insurance and VAT tax blow
03:00
Tara Cobham
Private school parents could face a further fee hike if a national insurance increase is announced in the Budget in what has been called an “extra tax” on top of the government’s controversial new VAT policy.
With one warning that “there is only so far that the system can be squeezed before it starts to fall apart”, independent school leaders fear the sector will be hit twice – first, by Labour’s removal of private schools’ 20 per cent VAT exemption, which will start in January, and now, by a potential rise in employers’ national insurance contributions, which the chancellor has not ruled out ahead of her first Budget on 30 October.
Hunt accuses Budget watchdog of political bias
02:00
Albert Toth
Former chancellor Jeremy Hunt has accused the Office for Budget Responsibility (OBR) of shielding the Labour Party from scrutiny as it prepares to announce tax hikes.
In a letter to OBR chair Richard Hughes, Mr Hunt criticises the organisation for preparing to release a report timed with his successor Rachel Reeves’s first Budget, which addresses a £22bn financial gap attributed to Tory policies. The report is likely to be critical of the last government.
Embattled transport secretary’s Budget victory prevented bus fare rises of up to 650%
01:00
David Maddox
Transport secretary Louise Haigh is being hailed for winning a personal victory in negotiations with the Treasury in preventing eyewatering bus fare hikes by as much as 650 per cent, it is understood.
The embattled minister has had a difficult month after being briefed against by Downing Street in the P&O workers’ rights row which saw the ferry company’s owner DP World initially withdraw £1 billion of investment from the UK.
But despite speculation that she could be an early ministerial casualty in Sir Keir Starmer’s government, Ms Haigh is thought to have emerged victorious in a fight with the Treasury over continuing with a cap on bus fares.
Budget rumours: Pension tax relief reform
00:01
Albert Toth
Pension tax relief is a reduction of the amount of tax paid on private pensions. It helps workers save for retirement by boosting their pension pots.
The amount of tax relief a person is granted is based on their income tax. It will effectively cancel out tax on pension contributions up to a maximum of £60,000.
After this, contributions will be taxed at either 20, 40, or 45 per cent, depending on which income tax rate the worker falls into.
However, the chancellor is thought to be considering a flat 30 per cent pension tax relief rate. This would mean that higher earners would effectively pay 10 per cent in tax, while those on the additional rate would pay 15.
The measure would raise around £3 billion a year, with 7 million earners paying more tax. But it would be better news for basic rate earners, who would actually begin to receive a 10 per cent boost to their pension contributions.
Evaluating the idea last year, the IFS said it would “redistribute the burden of taxation from the bottom 80 per cent to the top 20 per cent of earners.”
How Rachel Reeves might unlock £57 billion at the budget with a ‘simple’ fiscal rule change
Monday 28 October 2024 22:00
Albert Toth
Rachel Reeves will reportedly unveil a major change to Labour’s fiscal rules at the budget on 30 October by borrowing billions for infrastructure investment.
Following weeks of speculation, the chancellor will reveal her plans to change Britain’s debt rules at the International Monetary Fund’s (IMF) annual meeting in Washington on 24 October.
Recap: Starmer defends upcoming tax rises
Monday 28 October 2024 21:00
Albert Toth
Sir Keir Starmer defended the looming tax rises in Wednesday’s Budget.
He said “better days are ahead” and “everyone can wake up on Thursday and see that a new future is being built, a better future”.
The Prime Minister said: “Borrowing will drive long-term growth. Tax rises will prevent austerity and rebuild public services. We choose to protect working people. We choose to get the NHS back on its feet. We choose to fix the foundations, reject decline and rebuild our country with investment.”
He added: “The time is long overdue for politicians in this country to level with you honestly about the trade-offs this country faces, to stop insulting your intelligence with the chicanery of easy answers.
“Working people know that hard choices are necessary. They lived through the Liz Truss episode. They lived through the cost-of-living crisis.
“So they know that the things they want from us – protecting their living standards, building our nation, fixing our public services – they know that this can only be achieved alongside economic stability.
“There are no short cuts.”
Budget rumors: Capital Gains reform
Monday 28 October 2024 20:00
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.
Recap: Starmer says Budget will be for “working people”
Monday 28 October 2024 19:00
Albert Toth
Sir Keir Starmer set out his approach to a Budget for “working people” in a speech before Wednesday’s financial statement.
The Prime Minister told an audience in Birmingham: “Trust in my project to return Britain to the service of working people can only be earned through actions, not words.
“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 mind’s eye, people who have been working harder and harder for years just to stand still.
“People doing the right thing, maybe still finding a little bit of money to put away, paying their way, even in the cost-of-living crisis.
“But who feel that this country no longer gives them or all their children, a fair chance.
“People stuck on an NHS waiting list, whose town centre is blighted by antisocial behaviour, who can’t afford to buy a place that they can call home, or can’t afford the home they have because of the mortgage bombshell.”
Inheritance tax set to rise – here’s what it means for you
Monday 28 October 2024 18:00
Salma Ouaguira
Chancellor Rachel Reeves is reportedly planning changes to inheritance tax (IHT) 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.
Here’s everything you need to know about the potential changes and what they could mean for your family:
8 predictions to watch out for in Rachel Reeves’ autumn 2024 budget, from winter fuel to inheritance tax
Monday 28 October 2024 17:30
Albert Toth
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 leaving a £22bn black hole in the public finances.
Recap: Starmer intervenes in ‘working people’ Budget row with grim warning
Monday 28 October 2024 17:00
Albert Toth
Keir Starmer has issued a grim warning on a Budget later this week that is expected to feature record-breaking tax rises.
The prime minister used a major speech in Birmingham on Monday to pave the way for “tough decisions” on Wednesday when Rachel Reeves delivers her first Budget.
Speaker criticises Reeves for for briefing media before MPs
Monday 28 October 2024 16:30
Albert Toth
Sir Lindsay Hoyle has rebuked chancellor Rachel Reeves for not telling the Commons first about her intention to change the Government’s fiscal rules.
Commons Speaker Sir Lindsay said: “Honourable members may be wondering how they’ll get a seat on Wednesday (for the Budget) – to be quite honest, the way it’s going you won’t need to, we’ll have all have heard it. It’s not acceptable, I don’t want it to continue and I want to treat this House with the respect it deserves.”
Sir Lindsay added: “It’s totally unacceptable to go around the world telling everybody rather than these Members. They were elected by the constituents of this country and they deserve to be treated better.
“Isn’t it funny that when it was the previous party, it was the opposite side that was complaining to me. Get your acts together, all sides, treat Members with respect.”
Keir Starmer mistakenly announces five new freeports in comms ‘cock-up’
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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
Monday 28 October 2024 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"
Monday 28 October 2024 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
Monday 28 October 2024 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 w
