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UK politics live: Rachel Reeves playing ‘same silly games’ as Tories on tax and spend, IFS warns

Chancellor has admitted her £40bn tax-raising Budget could impact wage growth for workers

Joe Middleton,Archie Mitchell
Thursday 31 October 2024 13:15
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Rachel Reeves admits autumn Budget likely to hit pay for workers

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In a damning assessment of the chancellor’s spending plans, the Institute for Fiscal Studies (IFS) has warned that Rachel Reeves is playing “the same silly games as the last lot” on tax and spending.

IFS director Paul Johnson said that Ms Reeves’ current plans mean a 4.3 per cent jump in spending next year, 2.6 per cent the year after and then 1.3 per cent in each of the following years.

Mr Johnson said: “I’m afraid this looks like the same silly games playing as we got used to with the last lot. Pencil in implausibly low spending increases for the future in order to make the fiscal arithmetic balance.”

It comes as Ms Reeves has admitted that her £40bn tax-raising Budget could impact wage growth for workers.

Asked about the consequences of increasing national insurance contributions for employers she told BBC Breakfast: “It will mean that businesses will have to absorb some of this through profits and it is likely to mean that wage increases might be slightly less than they otherwise would have been.”

However, the IMF endorsed the investment and spending on public services in the chancellor’s Budget, as well as sustainable tax rises.

1730380534

Keir Starmer creates new ‘Europe Hub’ as PM eyes closer ties with EU post-Brexit

The Home Office is creating a new “Europe Hub” as part of Sir Keir Starmer’s drive for closer ties with the European Union.

The new unit, which will sit within the International Strategy, Engagement and Devolution Directorate, will reportedly be led by Dan Hobbs, director general of the Migration and Borders Group.

Civil servants have been told the department will have responsibility for “ensuring that our strategic approach to this work is coherent, working collaboratively across the department”.

Keir Starmer creates new ‘Europe Hub’ as PM eyes closer ties with EU post-Brexit

Home Office officials reportedly stressed the importance of a ‘strong UK-EU alliance’

Joe Middleton31 October 2024 13:15
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Watch: Rachel Reeves appears to say Kemi Badneoch already Tory leader

Rachel Reeves appears to say Kemi Badneoch already Tory leader
Joe Middleton31 October 2024 13:00
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GB News fined £100,000 by Ofcom for breaking impartiality rules over Rishi Sunak interview

GB News has been fined £100,000 by Ofcom after it was found to have broken impartiality rules in an interview with Rishi Sunak earlier this year.

The media watchdog concluded that the channel had given the then prime minister a “mostly uncontested platform” to promote the policies and performance of his government as he answered questions put to him by a studio audience and a presenter.

Ofcom began the investigation into GB News three days after the airing of a programme on February 12, titled People’s Forum: The Prime Minister.

GB News fined £100,000 for breaking impartiality rules over Rishi Sunak interview

Ofcom says broadcaster gave Rishi Sunak a ‘mostly uncontested platform’ in February interview

Joe Middleton31 October 2024 12:45
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NHS workload likely to go up not down, says Starmer

The NHS’ workload is “likely to go up, not down”, Sir Keir Starmer said, as he hinted at reforms the government might make to assist healthcare staff.

At a Q&A in the West Midlands, the PM said: “I also want to be honest with you, we are going to be asking more of you. There’s no point me standing here and saying your workload will go down.

“The whole point is people are living longer. They’ve got more conditions, what the NHS is facing now is different to what it was facing in the post-war period, your workload is likely to go up, not down.”

The Prime Minister signalled administrative change was among the reforms he was planning, including “making sure that AI and technology is your friend” to prevent duplication of records.

Rachel Reeves, meanwhile, criticised the previous government for “always raiding the capital budgets” and taking funding away from investment.

The chancellor said: “We have got to make those longer-term investments to drive those productivity and efficiency reforms as well.”

Joe Middleton31 October 2024 12:20
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PM and chancellor talking to staff at University Hospitals Coventry and Warwickshire

The prime minister and chancellor are talking to staff at University Hospitals Coventry and Warwickshire.

Sir Keir was thanked for the extra NHS funding by Dr Amy Burridge, a consultant in acute medicine, but she asked how that income could deal with staffing gaps and burnout

Sir Keir said the first thing his government would provide was a “mindset change” from the Tories, who he said “blamed” NHS staff for problems in the service.

He said the Government would “really go much much faster on the technology that you need to take some of the weight off”.

The PM added: “Look, I’m not going to pretend that by next week it will all be fixed, because too many politicians have done that.

“It is going to take time, but what we did in the Budget yesterday is the first step, the down payment if you like, down that road, to make sure that you can do your jobs better and we can have the NHS that we need.”

(Sky News)
Joe Middleton31 October 2024 12:04
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Pictured: Rachel Reeves visits NHS staff at UCL Hospital in London

Chancellor Rachel Reeves watches an endoscopic surgery simulation during a visit to UCL Hospital in London
Chancellor Rachel Reeves watches an endoscopic surgery simulation during a visit to UCL Hospital in London (Kirsty O'Connor / Treasury)
Rachel Reeves speaks to staff at UCL Hospital in London
Rachel Reeves speaks to staff at UCL Hospital in London (Kirsty O'Connor / Treasury)
Joe Middleton31 October 2024 11:55
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Jeremy Hunt to step down as shadow chancellor with end of Tory leadership race in sight

Jeremy Hunt has confirmed he is stepping down from the Conservative frontbench, calling for his party to be “humble” following July’s election defeat.

The decision comes just hours before the Tory leadership race comes to an end, with polls closing at 5pm on Thursday.

On Saturday morning, either Robert Jenrick or Kemi Badenoch will be crowned the new party leader.

Mr Hunt, who served as chancellor under Rishi Sunak’s Conservative government and is currently the shadow chancellor, confirmed he will be stepping back from the role following Wednesday’s budget.

Millie Cooke reports

Hunt to step down as shadow chancellor with end of Tory leadership race in sight

The shadow chancellor, who narrowly retained his seat in the election, says he’s unlikely to return to the frontbenches for ‘the next few years, at least’

Joe Middleton31 October 2024 11:47
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Kirstie Allsopp accuses Rachel Reeves of breaking up farms and estates after Budget

TV presenter Kirstie Allsopp has accused the chancellor of ushering in the break-up of farms and estates by imposing a new 20 per cent inheritance tax on such assets over £1m.

Farming and landowner organisations also warned the change, announced in Wednesday’s Budget, would lead to the “death of the family farm” because owners would sell up to pay the tax.

Rachel Reeves said from April 2026, the first £1m of combined business and agricultural assets would continue to attract no inheritance tax, but for assets over that sum inheritance tax would apply.

Kirstie Allsopp accuses Rachel Reeves of breaking up farms and estates after Budget

TV presenter says inheritance tax of 20% over £1m announced in Budget will stop farmers passing on businesses to children

Joe Middleton31 October 2024 11:36
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UK firms face higher employment costs, say National Institute of Economic and Social Research

The National Institute of Economic and Social Research has warned that businesses face higher employment costs due to Rachel Reeves Budget.

The NIESR said the rise in national minimum wage and higher employer contributions through National Insurance contributions will have a negative impact on employment in growth.

It added this would especially impact low-paid sectors such as hospitality.

Joe Middleton31 October 2024 11:34
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John Curtice: Voters are backing Reeves now – but she needs her gamble to pay off before the next election

The nation is more concerned about the state of the public services than they are about taxes and debt – for now. But polling expert John Curtice warns that Reeves’s – and Labour’s – future hangs on delivering what they’ve promised

Voters are backing Reeves now – but she needs her gamble to pay off

The nation is more concerned about the state of the public services than they are about taxes and debt – for now. But polling expert John Curtice warns that Reeves’s – and Labour’s – future hangs on delivering what they’ve promised

Joe Middleton31 October 2024 11:20

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