Budget 2024 latest: ‘Big and difficult choices’ warns health secretary as tax threshold freeze not ruled out

Speculation is mounting ahead of 30 October

Starmer refuses to rule out national insurance rise at PMQs

The health secretary has declined to rule out extending the freeze on income tax thresholds as speculation about possible tax increases in the Budget continued to mount.

Wes Streeting said he would not guess measures that the Chancellor might introduce in the Budget, but told broadcasters on Sunday morning that he had already agreed health spending with Rachel Reeves.

Mr Streeting told Sky News: What we’re not going to do is duck the difficult decisions, have Government by gimmick, short-term sticking plasters, because that is exactly how we ended up in this situation.”

He went on to say: “There are a whole load of choices that we will have to make that we would have preferred not to. But if we don’t make the choices now, we will end up paying a much heavier price for failure.

“We’re not prepared to do that. We’re going to make the right long term decisions.”

We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.

Key Points

• Streeting refuses to rule out income tax threshold freeze
• When is the 2024 Budget and what might be in it?
• Government will keep manifesto pledges, says Starmer
• Ministers plead with PM to soften Reeves’ spending cuts
• Proposed national insurance hike sparks row

[18 October 2024 11:30 · Albert Toth]

Inheritance tax to rise in Budget as Reeves plans to hit well-off

The Treasury is reportedly considering plans to raise Inheritance Tax at the Budget, as part of an attempt to raise £40bn and plug a hole in the public finances.

According to the BBC, the chancellor is considering multiple changes to the tax, which is charged at 40 per cent on the property, possessions and money of somebody who has died above a £325,000 threshold.

[18 October 2024 10:30 · Albert Toth]

Independent readers name their priorities for Labour Budget

With a new Labour government in power and the first autumn statement on the horizon, we wanted to hear your economic priorities.

When we asked what you thought should be included in the budget, responses from Independent readers varied widely.

Here’s a closer look:

[18 October 2024 09:28 · Albert Toth]

Reeves considers raising tax on vaping in Budget

Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.

The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.

Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.

[18 October 2024 09:07 · Albert Toth]

Reeves’ capital gains tax plans will sidestep homeowners, reports say

Experts have long anticipated that Labour will put capital gains tax up in the Budget on 30 October. This is the levy is paid on the profit made when an asset which has increased in value is sold. This includes houses, assets and shares, all paid between 20 and 28 per cent.

The latest reports indicate that Ms Reeves will respond to calls to raise capital gains tax in line with income tax bands – meaning rates of 20 to 40 per cent – but will exempt property from the new rates.

[18 October 2024 08:57 · Millie Cooke]

Rachel Reeves to push forward with £3bn sickness benefits cut in Budget

Rachel Reeves is understood to be considering about £3bn of cuts to the welfare bill over the next four years by restricting access to sickness benefits, as the chancellor embarks on a brutal cost-cutting mission to fill a so-called £22 billion black hole left by the Tories.

The chancellor is expected to save the £3bn sum by committing to the previous government’s plans to reform work capability rules.

[18 October 2024 07:00 · Albert Toth]

Independent readers name their priorities for Rachel Reeves’ looming Labour budget

When we asked what you thought should be included in the budget, responses from Independent readers varied widely.

Many called for a fairer tax system and more direct contributions for public services, while others petitioned for fewer regulations and ‘red tape’ to improve productivity.

[18 October 2024 07:00 · Archie Mitchell]

ICYMI: Angela Rayner leads Cabinet revolt against Reeves’ ‘huge’ Budget cuts

Sir Keir Starmer is facing a backlash from Angela Rayner and his cabinet over “huge” cuts to departmental spending to be unveiled in Rachel Reeves’ Budget.

The prime minister has received letters from senior ministers raising concerns about the spending cuts after a number spoke out against the measures at Tuesday’s cabinet meeting.

[18 October 2024 04:00 · Albert Toth]

Budget rumours: Capital Gains reform

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.

[18 October 2024 01:00 · Archie Mitchell]

Analysis: How make-or-break Budget has fractured Keir Starmer’s cabinet

Rachel Reeves’ Budget is a make-or-break moment for Sir Keir Starmer’s government, potentially sparking a decade of national renewal – or sowing the seeds of Labour’s downfall.

The prime minister’s poll ratings are at rock bottom after just over 100 days in charge, and the much-hyped “tough choices” to be unveiled on October 30 will likely do little to help boost his appeal.