Budget 2024 live: Rachel Reeves reveals £40bn in tax hikes and more borrowing in historic speech
Chancellor promises to ‘invest, invest, invest’ after months of bleak warnings over economy
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Rachel Reeves has announced tax hikes that will raise an eye-watering £40bn in her historic first Budget.
The chancellor blamed previous Conservative governments for the measures. She accused them of blowing a hole in the public finances and failing to fund compensations schemes, such as the one for those affected by the infected blood scandal.
After months of warning the public of the “tough choices” ahead, Ms Reeves promised to “invest, invest, invest” in order to “fix public services”.
Delivering the first Labour budget since Alistair Darling in 2010, she said: “My belief in Britain burns brighter than ever. And the prize on offer today is immense.
“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.
“There are no short cuts. To deliver that investment we must restore economic stability.”
Ms Reeves added she was “deeply proud” to be the first female chancellor and it showed young girls there should be “no ceiling on your ambitions”.
Analysis: Rishi Sunak gives the PM an easy ride at his final PMQs
Rishi Sunak has given Sir Keir Starmer an easy ride at his final appearance at PMQs from the despatch box.
The friendly back-and-forth had a distinctly “end of term” feeling to it, as the two leaders paid tribute to one another and shared jokes from either side of the house.
Opening what is typically a combative exchange, the Labour leader commended Mr Sunak for his “hard work, for his commitment and for his decency in everything that he has done”.
Preparing for his return to the backbenches, the former prime minister told the Commons that he will “now be spending more time in the greatest place on earth”. “If anyone needs me I will be in Yorkshire,” he said.
Mr Sunak avoided the heavy topics, questioning Sir Keir on initiatives to get more state schools playing cricket, as well as calling for him to “find his inner tech bro” and make the UK the “home of AI growth and innovation”.
What is expected to be announced in todays budget?
Rachel Reeves is just 10 minutes away from delivering the first Labour budget in 14 years. Here is a look at what could be announced:
- A 6.7% increase in the national living wage will see it rise to £12.21 an hour next year.
- There could be an increase to employer’s national insurance contributions or an extension on the freeze on the thresholds for the personal taxes.
- £3 billion boost to the armed forces - although this will largely be used to cover pay rises.
– More funding for the NHS, including £1.5 billion for new surgical hubs and scanners and £70 million for radiotherapy machines.
– £240 million in funding for local services will be spent on helping people get back to work.
– The £2 cap on bus fares across most of England will rise to £3.
- Changes to inheritance tax.
- The freeze on fuel duty could be scrapped - which could see prices increase at the pump.
- Capital Gains Tax - which is paid on the profit made when an asset which has increased in value is sold - could be hiked.
Starmer acknowledges Sunak’s last PMQs appearance
Sir Keir Starmer and Rishi Sunak have engaged in a jovial exchange ahead of the conclusion of the Tory leadership competition later this week.
Today marks Sunak’s final week of leading the opposition during prime minister’s questions.
Both the speaker and the prime minister had some kind words to say about Sunak, who confirmed he would be spending more time in his constituency in North Yorkshire as he steps down as the Conservative Party leader.
PMQs begin ahead of Budget
Prime minister’s questions have begun in the House of Commons.
Sir Keir Starmer is taking his usual weekly questions, ahead of Rachel Reeves delivering Labour’s first budget at 12:30pm.
Watch live: Keir Starmer grilled before Rachel Reeves presents Budget promising ‘more pounds in pockets’
Watch live as Sir Keir Starmer is grilled during Prime Minister’s Questions before Rachel Reeves presents Labour’s first Budget in 14 years today.
In her speech, the chancellor is expected to say the “prize on offer” is “immense”, and she will lay out new funding to cut hospital waiting lists, build more affordable homes and rebuild crumbling schools.
Watch live here:
Watch live: Starmer grilled before Reeves presents Budget
Watch the Budget announcement live as Rachel Reeves details Labour’s economic policies
Analysis: Labour MPs braced for fallout from tough Budget
Labour MPs are braced for a tough Budget from the chancellor.
Hundreds were elected in July as part of a landslide victory for Labour at the general election.
But since then there has been very little for them to boast about.
Many are already getting it in the neck from older constituents concerned about the decision to strip winter fuel payments from millions of pensioners.
MPs are usually braced for Budget day – in the hope their pet project might get a shout out from the chancellor.
But this time around many Labour MPs will be nervously eyeing Rachel Reeves to see how tough her Budget actually turns out to be.
Starmer leaves Downing Street for PMQs
Sir Keir Starmer has left Downing Street and will face off against Rishi Sunak at PMQs at noon before Rachel Reeves deliver her first Budget at 12.30pm.
What won’t be in the Budget? Labour’s less likely options weighed up
The UK will today hear 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.
Experts predict these will come in the form of increases to taxes like capital gains, employer national insurance, and freezing income tax.
But there are several other tax-raising measures that some are hoping for, but know are unlikely to come.
What won’t happen in today’s Budget? Labour’s less likely options weighed up
From taxes on wealth to unhealthy foods – here are the unlikely options open to Labour at the Budget
Reeves to be grilled on Budget by new Treasury committee
The Commons Treasury committee has announced a series of evidence sessions which will scrutinise the Autumn Budget.
The first session will see questions put to the Office for Budget Responsibility (OBR) on its economic and fiscal forecast, taking place on Tuesday 5 November. MPs will then gather the views of leading economists.
The following day, the Treasury committee will question Rachel Reeves, on her Budget on Wednesday 6 November.
The committee’s scrutiny is likely to examine whether the Chancellor’s new fiscal rules are right for the health of the UK economy and changes to spending, taxation and debt.
Pictured: Reeves departs No 11 with red box
Rachel Reeves has been photographed leaving No 11 this morning. In just over an hour Ms Reeves will deliver the first Labour Budget in 14 years.
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