UK politics latest: Rachel Reeves declares her Budget is for the strivers 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.
Ms Reeves has also compared her mission in this week’s Budget to that of the reforming agendas of Clement Attlee and Harold Wilson. In an interview with The Observer, she promised “we can do great things as a country again” as she outlined a new era of public and private sector investment in hospitals, schools, transport and infrastructure.
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
Reeves announces funding for crumbling schools and childcare ahead of Budget
£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
Rachel Reeves: Budget is ‘not going to be easy'
Chancellor Rachel Reeves has said next week’s Budget is “not going to be easy” but promised it will be a “Budget for the strivers”.
She admitted in an opinion article for The Sun on Sunday: “I will take the tough - but fair - decisions on tax”.
She added: “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.”
Keir Starmer has denied misleading the public over tax rises
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”.
At a press conference at the end of the Commonwealth heads of government meeting (Chogm) in Samoa on Saturday, the prime minister was asked whether he was “plotting a war on middle Britain”.
“No. Let me clear about that,” he said. “What we’re doing is two things in the Budget.
“The first is fixing the foundations, which is dealing with the inheritance that we’ve got, including the £22 billion black hole. We have to deal with that. In the past leaders have walked past those problems, created fictions, and I’m not prepared to do that.”
Asked whether he had misled the public in the Labour manifesto, he added: “No, we were very clear about the tax rises that we would necessarily have to make, whatever the circumstances, and you’ve listed them there, and I listed them, I don’t know how many times in the campaign.
“We were equally clear in the manifesto and in the campaign that we wouldn’t be increasing taxes on working people, and spelt out what we meant by that in terms of income tax, in terms of NICs [National Insurance contributions] and in terms of VAT and we intend to keep the promises that we made in our manifesto.”
Labour Budget must tackle “black hole” in family finances, charity says
New research by the Joseph Rowntree Foundation ahead of next week’s Budget shows the ongoing “black hole” in family finances, particularly affecting the poorest families, with many already £700 worse off than they were five years ago.
They are calling on the government to act on the findings and take action on hardship at the upcoming event.
Katie Schmuecker, Principal Policy Adviser at JRF, says: “The Budget on October 30th is not just a book-balancing exercise, it is a statement of political intent.
“The Labour manifesto described the need for emergency food parcels as a moral scar on our society, so it is inconceivable that there will not be a serious plan to protect families from hardship this winter and beyond.
“Last year Labour condemned the fact that 1 million children experienced destitution in a single year as a damning indictment of the Conservative government. A Labour government now has the power to take urgent action and people are looking to them to act.”
Budget rumours: Private equity profits
In a manifesto pledge, Labour said it will announce more details on plans to close the private equity tax loophole in the October Budget.
Due to the ‘carried interest’ law, private equity fund managers pay only 28 per cent tax on their income, which is treated as capital gains. This was the result of a successful lobbying campaign in 1987.
Labour has vowed to change this, making managers pay the 45 per cent higher rate of income tax. It is estimated the change will raise around £600 million a year with just a few thousand people affected.
Rachel Reeves set to borrow billions for investment after announcing major change to fiscal rules
Rachel Reeves has announced a change to the fiscal rules ahead of next week’s budget, allowing her to borrow billions more each year.
The chancellor today confirmed her rules will “make space for increased investment in the fabric of our economy”, amid widespread expectation she will change the way debt is measured.
Reeves set to borrow billions for investment after announcing change to fiscal rules
Ex-Tory chancellor Jeremy Hunt warns he was advised by the Treasury that ‘increasing borrowing meant interest rates would be higher for longer – and punish families with mortgages.’
Lord Blunkett: Plans to increase NI on pension contributions “very worrying”
Veteran Labour politician Lord Blunkett has expressed his concerns over rumoured plans to reform pension tax relief, extending employers’ national insurance contributions.
Writing in the times, he said: “The widespread reporting of a possible extension of employers’ national insurance in next week’s budget is very worrying. It is one thing to increase the rate of national insurance, and quite another to levy this on employer pension contributions.
“As the former work and pensions secretary who signed off, with Tony Blair and Gordon Brown, pensions auto-enrolment — which recognised the genuine crisis, for generations to come, in maintaining living standards in retirement — I would advise strongly against this.
“We need more employers contributing more than the basic 3 per cent and, with it, the corollary of savings and investment, not less. I sincerely hope the rumours are well wide of the mark.”
Rachel Reeves set to borrow billions for investment after announcing major change to fiscal rules
Reeves set to borrow billions for investment after announcing change to fiscal rules
Ex-Tory chancellor Jeremy Hunt warns he was advised by the Treasury that ‘increasing borrowing meant interest rates would be higher for longer – and punish families with mortgages.’
Air Passenger Duty may go up in Reeves’s Budget – could the ‘Inverness Immunity’ come to an end?
A week from now, the chancellor will be rehearsing for her first Budget. With rises in the most significant taxes – such as income tax and VAT – ruled out, Air Passenger Duty (APD) looks ripe for an increase, writes Simon Calder.
Read his expert advice:
Air Passenger Duty may rise in Reeves’s Budget – could the ‘Inverness Immunity’ end?
Plane Talk: Why it’s not always a good idea to tax the traveller until the pips squeak
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.
How make-or-break Budget has fractured Keir Starmer’s cabinet
With the prime minister’s poll ratings at rock bottom, Sir Keir Starmer is grappling with cabinet unity ahead of Rachel Reeves’ Budget, writes Political Correspondent Archie Mitchell
Rachel Reeves to turn on spending taps with Budget boost for infrastructure and clean energy
Rachel Reeves to turn on spending taps with Budget boost for infrastructure
The chancellor is planning to change the government’s fiscal rules to free up billions of pounds of borrowing, which she will promise to spend laying ‘the foundations of future growth’
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