Budget latest: Rachel Reeves set to make three key pledges as tax hikes expected
Chancellor has reiterated that tough decisions have been made ahead of next week
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Rachel Reeves has promised a Budget ‘for the strivers’ but admitted tough decisions have been made in a new article.
Ahead of Labour’s long-anticipated Budget on October 30, the Chancellor said: “I have had to make tough decisions in this Budget. Not everything is going to be easy. But let me be clear - I am doing this for hardworking families up and down the country who have been crying out for change”.
Labour had promised at the general election not to increase taxes on “working people” - but have been struggling to define who these people are ahead of its tax-raising Budget.
The chancellor will also make three key pledges in the Budget. The Sunday Times has reported that Ms Reeves will promise to “do everything in my power to protect working people”, “fix the NHS” and “rebuild Britain”.
Ms Reeves has also compared her mission in this week’s Budget to that of the reforming agendas of Clement Attlee and Harold Wilson.
We’ll be bringing you all the latest updates ahead of the big event here, on The Independent’s liveblog.
Keir Starmer denies misleading public over tax rises in the Budget
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£1.4 billion to fix ‘crumbling’ schools as Reeves pledges to prioritise education and free childcare in Budget
Rachel Reeves might just get away with breaking her promise – here’s how
Police probe reports of an assault involving Labour MP
A former Labour shadow minister says he has spoken to police after a video emerged of him appearing to tell a member of the public “you won’t ever threaten me again, will you?”
Officers are investigating reports of an alleged assault involving the backbencher.
In footage shared on social media, Mike Amesbury, the MP for Runcorn and Helsby, is seen apparently repeatedly pointing at the man, who is on the ground.
At one point, when he is identified as a local MP, he appears to say: “Yes, I am, and you won’t threaten the MP ever again, will you?”
Cheshire Police said they were called to reports of an assault in Frodsham in the early hours of Saturday.
Asked whether the Labour Party was investigating, Ms Phillipson told Sky News’s Sunday Morning With Trevor Phillips programme: “Mike Amesbury, who’s the MP in question, has gone forward to the police.
“He is co-operating with any investigation they would want to take forward. It is a matter for the police and we want to allow them to do that work.”
Police probe reports of an assault involving Labour MP
Mike Amesbury, the MP for Runcorn and Helsby, says on Facebook he has reported the incident to police as video appears to show argument with man on street
Budget will aim to slash government waste - reports
Wednesday’s Budget is expected to slash government waste, such as cutting £550 million from spending on private consultants, according to a report in The Sunday Times.
Ms Reeves will also announce a sale of £1bn of government property by 2030, the newspaper reported.
Some redundancies are also expected in Defra’s arms-length bodies.
Military families set to be exempt from Labour’s controversial VAT on private school fees
Military families are set to be protected from Labour’s decision to impose VAT on private school fees.
Critics of the plan have warned it is unfair to those in the Armed Forces who have to move countries and homes frequently and put their children in boarding schools.
There have even been warnings some could leave the services altogether as a result of fee increases which could come as a result of the changes due to come in in January.
Working people will not see higher taxes on their payslip, education secretary promises
Working people will not see higher taxes on their payslip, a minister said as she acknowledged “frustrations” over the government’s refusal to spell out who will be hit by greater levies ahead of the Budget.
Education Secretary Bridget Phillipson repeated warnings that Wednesday’s financial statement will include “tough choices”, but she insisted it is a choice between investment or decline for the UK.
Facing broadcasters on Sunday morning, the Cabinet minister was repeatedly pressed to define the Labour Government’s use of the term “working people” – who it has promised to protect from tax hikes in the Budget.
“You are inviting me to speculate about the nature of the question that you’re asking,” she told the BBC’s Sunday With Laura Kuenssberg show.
“What I’m saying is that when people look at their payslips, they will not see higher taxes.”
Explainer: What should I do with my savings ahead of the Budget?
Ahead of the Budget on 30 October, there has been fevered speculation about changes to pension savers’ tax allowances and other perks.
Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement.
Other speculation focused on tax breaks for workers planning to retire, spurring them to do the opposite, and pack more cash into their pensions in case their own tax incentives are slashed.
Read more about what you should do with your savings from Howard Mustoe here:
What should I do with my savings ahead of the Budget?
Reports that pensioners could have tax breaks cut or axed have led to savers withdrawing chunks of their retirement pots ahead of the chancellor’s announcement
Chief of Staff and Deputy Prime Minister in ‘battle for influence’ - reports
Sir Keir Starmer’s chief of staff Morgan McSweeny and deputy prime minister Angela Rayner are battling for influence in No10, according to a report in The Telegraph.
The friction is reportedly over the government’s plans for devolving power across the regions and nations. While Ms Rayner is meant to be overseeing the plans, The Telegraph has reported that the most important meetings are happening behind her back.
Mr McSweeney is reportedly holding monthly calls with the mayors, while Ms Rayner is not invited.
Chancellor’s three key Budget pledges
Rachel Reeves is expected to make three key pledges in her Budget on Wednesday.
According to a report in The Sunday Times, the chancellor will promise to “do everything in my power to protect working people”, “fix the NHS” and “rebuild Britain”.
Ms Reeves will emphasis the terrible public spending situation she inherited from the Conservatives, and the Office of Budget Responsibility (OBR) will publish a document providing a detailed breakdown of the £22bn ‘black hole’ that Labour has said it has inherited, the Sunday paper reports.
Ms Reeves will also reportedly announce an end to big changes in the Spring statement, pledging that the Budget will be the only time big economic plans are set out.
Keir Starmer denies misleading public over tax rises in the Budget
Keir Starmer has denied misleading the public over tax rises in the Budget after he suggested “working people” did not make money from property or shares.
The prime minister also rejected claims he had waged a “war on middle Britain”.
Labour made manifesto pledges to not hike taxes on what it described as “working people,” explicitly ruling out increases to VAT, national insurance, and income tax.
Read more from our Whitehall Editor Kate Devlin here:
Keir Starmer denies misleading public over tax rises in the Budget
The prime minister also rejected claims he was waging ‘war on middle Britain’ after he suggested shareholders and landlords were not ‘working people’ on trip to Commonwealth summit in Samoa
Extra help for foster and kinship carers announced
The Education Secretary said she would “love to go faster” on improving family support services and bolstering protections for vulnerable children but it will “take time”.
Bridget Phillipson said the government’s commitment to extra help for foster and kinship carers - with £44 million in support announced on Sunday - “cannot be the extent of” its measures to help with safeguarding.
“This cannot be the extent of it... the children’s social care system just isn’t working,” she told the BBC’s Sunday With Laura Kuenssberg programme.
Ms Phillipson said the government would legislate for a register of children not in school in order to know “where children are” and whether they are safe.
Asked whether she believed social services should be more proactive in stepping in when there are concerns about a child, following a series of high-profile cases of children being abused and killed by their parents such as Arthur Labinjo-Hughes, she said: “What I do think needs to happen though, alongside that - and there will always be cases where the state has to step in - we need to do a lot more when our children are younger, and we need to put in much put in much more support around families.
“Because sometimes problems do escalate and the situation does get worse, and we have seen the steady erosion of family support services.”
Watch: Education secretary gives latest definition of 'working people'
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