UK budget 2024 live: Rachel Reeves’ expected tax hike will hit workers, says ex-Bank of England governor
Education secretary Bridget Phillipson has vowed no tax rises in payslips for ‘working people’
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Rachel Reeves’ tax-hiking Budget will hit workers however Labour frame it, the former governor of the Bank of England has said.
Lord Mervyn King, who was head of the Bank of England for a decade until 2013, said that the debate around who Labour are classifying as a “working person” is “a terrible illusion”.
Speaking on Sky’s Sunday Morning with Trevor Phillips, Lord King said: “Taxes are paid by people, they’re not paid by companies or institutions, ultimately, they fall on the amount that people can spend, and you only can raise significant amounts of money by raising taxes on most people, however you care to define that, but it’s most people will have to pay higher taxes.”
He added: “Ultimately, the impact of these higher taxes has to be on the consumption of most people, however you care to define that group.”
Ms Reeves has promised a Budget “for the strivers” but admitted tough decisions have been made.
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
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’
How Labour could push through ‘stealth’ income tax rise at the Budget
Labour is expected to extend an income tax measure that has been described as a “stealth tax” at the upcoming Budget as more people are set to pay higher rates.
Officials have said Rachel Reeves is looking to extend the freeze on income tax thresholds, which has dragged millions of earners into paying higher rates of income tax since 2021.
How Labour could push through ‘stealth’ income tax rise at the Budget
Millions could pay more income tax if ‘stealth’ policy is continued
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.
How Reeves might unlock £57 billion at the budget in ‘simple’ fiscal rule change
Experts have urged the chancellor to consider tweaking a Labour manifesto pledge
Rachel Reeves to turn on spending taps with Budget boost for infrastructure and clean energy
Rachel Reeves will turn on the spending taps to upgrade Britain’s creaking infrastructure and invest in the clean energy transition, she will tell world leaders today.
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”.
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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