Bank of England interest rate cut joy for mortgage holders as Reeves blames mini-Budget for inflation - live

The Bank of England has decided to cut interest rates for the first time in more than four years

Rachel Reeves admits taxes will rise in first Budget

The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.

Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points.

Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.

The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent.

Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini-budget”.

Key Points

• BoE cuts interest rates in major boost for mortgage holders
• Major banks reduce mortgages after Bank of England interest rate cuts
• Reeves welcomes interest rates cuts but warns families still struggling
• GPs take industrial action over budget dispute
• Braverman: Tories have ‘no chance of winning’ election

[31 July 2024 11:21 · Salma Ouaguira]

Angela Rayner fell asleep on her Red Box

Angela Rayner has revealed she fell asleep on her ministerial Red Box as her busy life of “eat, sleep, work, repeat” in government takes a toll on her.

The deputy prime minister told ITV’s This Morning programme: “I did fall asleep on the Red Box the other night, that’s a rite of passage.

“It’s just eat, sleep, work, repeat at the moment.”

(EPA)

[31 July 2024 11:18 · Salma Ouaguira]

Rayner: ‘People are not like nimby for nimby reasons'

Angela Rayner has said improving infrastructure such as roads and access to GP appointments is “critical” for the government meeting housing targets as she said people are not “nimby (not in my back yard) for nimby reasons”.

The deputy prime minister told ITV’s This Morning: “I think the first thing is that the reason why I’ve said local plans have to be for every local authority, and at the moment, we’ve only got about 30 that have got up to date local plans, means they have to consult.

“They have to identify what the housing need is under our formula, and then they have to consult with local people and then when you’ve got the plans, it’s about making sure that infrastructure is there, so the planning is the crucial bit of getting the infrastructure.”

She added: “There isn’t a family that hasn’t got a housing need that isn’t met in the UK at the moment so people are not like nimby for nimby reasons.

“They’re saying ‘well hang on a minute our roads are already congested, we can’t get a GP appointment and now you want to build more houses here?’ so infrastructure is critical.

“And that’s why our rules will make sure that we get that infrastructure as well, because I’ve heard what people have said on that ‘we need these homes, but we need the infrastructure in place’.”

(ITV)

[31 July 2024 11:09 · Salma Ouaguira]

Poll: Six in 10 convinced Labour will hike inheritance tax and capital gains

Six in 10 voters are convinced the Labour government will put up capital gains tax and inheritance tax, according to a new poll.

Political research director at Savanta Chris Hopkins said it was clear that “much of the public don’t necessarily think they will be personally paying more taxes” under the new government.

“They think it’s more likely that capital gains and inheritance tax will be going up - comparatively narrow taxes that few people pay, next to VAT and National Insurance,” he said.