Budget 2024 latest: Local mayors fear bus, train, and tram funding cuts as Reeves ‘plots Amazon tax’
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, local mayors have reportedly launched last-minute lobbying talks with the Treasury to prevent cuts to their transport budgets. The chancellor is reportedly looking to skim funds from the pots to help fill the £22bn public spending shortfall she revealed in July.
The reports come after cabinet ministers are understood to have written to the prime minister, going over Ms Reeves’ head to urge him to reconsider cuts to their departments.
It is thought that complaints came from the transport secretary, Louise Haigh, deputy PM and housing secretary, Angela Rayner, and justice secretary Shabana Mahmood.
Ms Reeves is also reportedly exploring increasing business rates on online tech giants in what has been dubbed an ‘Amazon tax’. The measure would be designed to help ailing high-street stores as online companies continue to dominate the market.
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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Will there be Business Rates reforms in the budget?
In its election manifesto, Labour said it was committed to reforming the current business rates system “so we can raise the same revenue but in a fairer way”.
What this means has not been spelt out by the party, but it said the new system will be designed to “level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship”.
It’s thought this could take the form of an immediate cut to the rates, while also closing loopholes which allow some firms to avoid tax. This will come as welcome news to smaller business owners, but Labour will be careful to ensure their reform maintains a monetary net zero.
Exchequer secretary James Murray MP confirmed this at a Labour conference fringe event hosted by the British Retail Consortium, saying: “It’s within the current envelope. It’s all about raising the same amount of money overall, that’s the commitment.”
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