Budget 2024 latest: Huge boost for Reeves as IMF growth forecast rises after inflation battle ‘largely won’
Chancellor responds to fresh prediction for the economy ahead of 30 October statement
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Rachel Reeves will announce Labour’s first Budget since coming into power on 30 October, leading one of the most anticipated fiscal events in over two decades.
Ahead of her announcement, the chancellor has welcomed an upgrade to the UK’s economic forecasts from the International Monetary Fund (IMF). The financial agency even said the country’s battle against inflation has “largely been won.”
The country’s GDP is now predicted to grow by 1.1 per cent in 2024 – a major uplift from the 0.7 per cent forecast in July.
Ms Reeves said the new forecast was “welcome” but that there is “more work to do.” She added: “The Budget next week will be about fixing the foundations to deliver change, so we can protect working people, fix the NHS and rebuild Britain.”
New figures from the ONS also show that government borrowing rose to £16.6 billion last month marking the third highest September borrowing since records began, according to the Office for National Statistics (ONS).
This has brought borrowing in the year to date to £79.6 billion – £6.7 billion more than forecast by the Office for Budget Responsibility. The ONS says public sector pay rises contributed to the unexpected rise.
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
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Streeting refuses to rule out income tax threshold freeze
Wes Streeting has refused to rule out that the Government will freeze income tax thresholds in the upcoming Budget.
Mr Streeting had previously voted against the measure in opposition while Rishi Sunak was prime minister.
Speaking on Sunday Morning With Trevor Phillips on Sky News, Mr Streeting said: “I’m not going to speculate on what the Chancellor might do in the Budget.
“If you’re asking me whether I would vote against anything in the Chancellor’s Budget? The answer is no, of course I’m not going to do that.”
He went on to say: “This country is paying a heavy price for Conservative failure, and we’re going to have to make some big and difficult choices in this Budget to make sure we fix the foundations of the economy and we don’t end up back here.”
He later added: “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.”
Full report: Starmer denies election pledges will be broken as Reeves plans stealth taxes
Starmer denies election pledges will be broken as Reeves plans stealth taxes
Rachel Reeves is considering a range of taxes in the Budget to fill a £40 billion black hole in Labour’s spending commitments
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.
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