Budget 2024 live: Rachel Reeves appears with red box ahead of announcing £35bn of tax rises
Chancellor emerges on steps of Downing Street before laying out plans to grow the economy
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Rachel Reeves has appeared on the steps of Downing Street with the traditional red box ahead of her first Budget - and the UK’s first to be presented by a female chancellor.
After months of warning the public of the “tough choices” ahead, Ms Reeves is expected to promise to “invest, invest, invest” in order to “fix public services” in Wednesday’s Budget.
The FTSE 100 was down by 0.5 per cent and the midcap FTSE 250 fell by 0.2 per cent, just hours before the first Labour Budget in 14 years.
Reeves is expected to say in her speech at 12.30pm: “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.
“And the only way to drive economic growth is to invest, invest, invest. There are no short cuts. To deliver that investment we must restore economic stability.”
The minimum wage will increase to £12.21, the Treasury revealed on Tuesday evening.
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.
Analysis: Reeves’ buzz phrases for the bingo card
For those looking out for buzz phrases which Rachel Reeves will be trotting out in her Budget speech, there are plenty to fill a bingo card.
Top will be “working people” a phrase Labour has struggled to explain but one they hope resonates with voters.
Also look out for: Tory inheritance, £22 billion black hole, fixing the foundations, mission driven, and economic growth, pounds in people’s pockets, economic stability, no austerity, rebuild Britain, first Labour budget in 15 years, first female chancellor, and Liz Truss.
National insurance, capital gains, fuel duty: The tax rises which could affect you in today’s Budget
Rachel Reeves will announce Labour’s first Budget in 15 years today, 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.
Prime minister Sir Keir Starmer has likewise warned the fiscal event is going to be “painful” but that there is “no other choice given the situation that we’re in”.
Here’s your guide to some of the tax rises the chancellor could be considering for her first Budget:
Budget 2024: Tax rises which could affect you for a long time
Many experts expect tax rises to be on the cards
Top research institute says UK at ‘critical juncture’ and urges Reeves to ensure long-term financial stability
The National Institute of Economic and Social Research has said that the UK is at a “critical juncture” and said it hoped that Rachel Reeves was able to create the space needed to drive investment.
Monica George Michail, NIESR associate economist said: “The UK is at a critical juncture: after years of sluggish growth and deteriorating public infrastructure, a sustained rise in government investment is vital to promote long-term growth and boost living standards.
“Growing demands for defence and green infrastructure further add urgency for decisive action to secure the UK’s economic future.
“We look forward to the Chancellor’s budget announcement today and hope the new fiscal rules will strike a balance between creating fiscal space and ensuring long-term financial stability.”
Autumn budget 2024: 8 predictions to watch out for – from winter fuel to inheritance tax
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.
Paul Johnson, the director of the high-respected Institute for Fiscal Studies (IFS) think tank has already said it could be the “biggest tax-raising budget” ever and yet it still could leave “a lot of public services still feeling squeezed”.
Here we take a look at some of the key measures expected:
8 key things to watch out for in the autumn 2024 budget
Speculation is rife on what will come in Rachel Reeves’ Budget - here we take a look at some of the measures expected
Analysis: Rishi Sunak’s curtain call
One of the less discussed stories of today’s events is the Rishi Sunak will be making his final appearance as Tory leader.
By Saturday either Kemi Badenoch or Robert Jenrick will be elected to replace him and a new era in Conservative politics will begin.
Sunak today will be very much attempting to defend his legacy as chancellor and prime minister amid claims from Rachel Reeves that he left a terrible inheritance.
But the questions going forward will be what he does next. Will he sit on the backbenches and stay an MP? Will he set up his own foundation Tony Blair style? Or is his future in California working for someone like Elon Musk?
It could be that his replacement may be fighting a by-election sooner rather than later.
FTSE 100 slumps ahead of Budget
The FTSE 100 has dropped in early trading as investors brace themselves for Rachel Reeves Budget in just a few hours.
UK stocks fell as the chancellor is expected to announce up to £35bn in tax rises and also a number of spending cuts.
At 8.50pm the FTSE 100 was down by 0.5 per cent and the midcap FTSE 250 fell by 0.2 per cent.
Rachel Reeves is Britain’s first ever female chancellor – there’s ‘peril’ in that
Britain has had three female prime ministers but Rachel Reeves is the first woman to head up the Treasury. Cathy Newman looks at why that matters and hears from the chancellor about her pride at being the one to break the glass ceiling, but how breaking up the urinal in her private office was a whole different matter…
Rachel Reeves is Britain’s first ever female chancellor – and there’s ‘peril’ in that
Britain has had three female prime ministers but Rachel Reeves is the first woman to head up the Treasury. Cathy Newman looks at why that matters and hears from the chancellor about her pride at being the one to break the glass ceiling, but how breaking up the urinal in her private office was a whole different matter…
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