UK Politics

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseBritons are already paying more inheritance tax as Rachel Reeves looks to squeeze millions more from the levy, official figures show.Payments swelled the Treasury’s coffers by £4.3bn in the six months since April, £400m more than in the same period in the previous financial year and a rise of 10 per cent, new data from HM Revenue and Customs shows. The chancellor Rachel Reeves has been warned that her plan to hike the tax at next week’s Budget risks punishing middle-class homeowners. Ministers are considering how they can get more money from what critics have denounced as the “death tax”, which raises around £7bn for the Treasury each year.The tax is routinely found to be one of voters’ least favourite measures, despite just 4 per cent of people paying it.Rachel Reeves is considering how to raise millions more from inheritance tax More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseFormer Conservative minister Richard Holden is leading a campaign to secure protected status for traditional pie and mash as a celebration of the “original fast food”. Mr Holden and producers have made representations to the Department for Environment, Food and Rural Affairs (Defra) about an application for Traditional Speciality Guaranteed (TSG) status for the dish.The former Tory party chairman, who was parachuted into the Conservative safe seat of Basildon and Billericay in Essex, will lead a parliamentary debate in Westminster Hall on Tuesday to further press the case for the “cracking” products to get the “recognition they deserve”.He was hand-picked by Rishi Sunak to be placed on a shortlist of one at the general election after his North West Durham seat, 300 miles from Essex, ceased to exist following the boundary review.Mr Holden previously declared he was “bloody loyal to the North East”, despite choosing not to stand in any of the local constituencies that would replace his seat. Now, he is fighting to give the traditional Cockney delicacy protected status from the government.TSG is a quality scheme that protects the names of food and agricultural products that are made using traditional methods or ingredients. Bramley Apple pie filling and Cornish pasties are some of the foods protected under the scheme. Traditional pie and mash may be given TSG status if there is agreement between producers on the recipe that would need to be follow to use the name in future, Defra said. The recipe involves a minced beef pie served with mashed potatoes and a parsley sauce known as liquor.The recipe involves a minced beef pie served with mashed potatoes and a parsley sauce known as liquor More

Keir Starmer refuses to rule out raising national insurance contributionsYour support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseRachel 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, the chancellor has welcomed an upgrade to the UK’s economic forecasts from the International Monetary Fund (IMF). The financial agency even said the country’s battle against inflation has “largely been won.”The country’s GDP is now predicted to grow by 1.1 per cent in 2024 – a major uplift from the 0.7 per cent forecast in July.Ms Reeves said the new forecast was “welcome” but that there is “more work to do.” She added: “The Budget next week will be about fixing the foundations to deliver change, so we can protect working people, fix the NHS and rebuild Britain.”New figures from the ONS also show that government borrowing rose to £16.6 billion last month marking the third highest September borrowing since records began, according to the Office for National Statistics (ONS).This has brought borrowing in the year to date to £79.6 billion – £6.7 billion more than forecast by the Office for Budget Responsibility. The ONS says public sector pay rises contributed to the unexpected rise.We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.Show latest update 1729605634Borrowing figures show “scale of public finances challenges” says expertGovernment spending so far this financial year was £11.5 billion more than forecast by the OBR, points out The Resolution Foundation, which tallies with Rachel Reeves’ claim of a £22 billion “black hole” in the public finances.The foundation’s senior economist Cara Pacitti said: “Six months into the financial year, Britain is borrowing £6.7 billion more than expected at the time of the Budget in March.“This reflects central government spending which is £11.5 billion higher than anticipated, largely due to public sector pay rises and higher running costs.“Today’s data highlights the scale of the public finances challenges facing the Chancellor as she grapples with overspending today, the need to avoid austerity in the future, and having to fund extra public service spending through tax rises.”Albert Toth22 October 2024 15:001729602309GDP due to grow in 2024 in major uplift, says IMFThe IMF has said UK gross domestic product (GDP) is due to grow by 1.1 per cent in 2024 – a major uplift from the 0.7 per cent growth forecast from July.The UK economy is then expected to grow by 1.5 per cent in 2025, with the IMF maintaining its prediction from earlier in the year.The IMF report also found that UK inflation for 2024 is set to be slightly higher than expected at 2.6 per cent, having previously pointed towards a 2.5 per cent reading.It likewise slightly increased its inflation projection for 2025 to 2.1per cent from 2per cent in its previous outlook.Unemployment is also set to be slightly worse than previously expected by the IMF, according to the latest report.It said the UK unemployment rate is set to have been 4.3per cent for 2024 as a whole, compared with a previous 4.2per cent estimate.Archie Mitchell22 October 2024 14:051729601709Rachel Reeves boost as battle against inflation has “been won”Rachel Reeves has welcomed an upgrade to the UK’s economic growth forecasts from the International Monetary Fund (IMF) as it said Britain’s battle against inflation has “largely been won”.The chancellor stressed that there is “more work to do”, but added “it is welcome that the IMF have upgraded our growth forecast for this year”.Ahead of her first financial statement as chancellor on Wednesday, Ms Reeves said: “The Budget next week will be about fixing the foundations to deliver change, so we can protect working people, fix the NHS and rebuild Britain.”Archie Mitchell22 October 2024 13:551729598434Could capital gains tax be reformed at the Budget?Capital Gains Tax (CGT) is paid on the profit made when an asset which has increased in value is sold. It is applied to things like the sale of personal possessions worth more than £6,000 (apart from a car), property that’s not the seller’s main home, shares and business assets.It is charged at 10 or 18 percent for basic rate taxpayers, and 20 or 24 for higher or additional rate earners. There is a tax-free allowance of £3,000.There are several ways CGT could be changed. In the run-up to the election, the Lib Dems and Greens both said they would rethink the tax bands to be more similar to income tax, raising an estimated £5.2bn a year.Albert Toth22 October 2024 13:001729594834Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black holeSir Keir Starmer’s government was hit by another day of Budget confusion after Labour was bounced into conceding that individuals earning above £100,000 are still “working people”.On a day when the prime minister had hoped to get a grip on the political agenda with the launch of a major consultation over the future of the NHS, Sir Keir faced another series of rows and speculation over whether Rachel Reeves was planning further taxes on the rich.David Maddox22 October 2024 12:001729590053Borrowing figures prove need for “tough decisions” says Treasury officialTreasury Chief Secretary Darren Jones said the state of the public finances meant there would be “difficult decisions” in the October 30 Budget.He said: “We have inherited a £22 billion black hole in the country’s public finances, including no plan to fund pay deals for millions of public sector workers.“Strikes cost at least £3 billion last year, so it was the right thing to do to end those damaging disputes.“Resolving this black hole at the Budget next week will require difficult decisions to fix the foundations of our economy and begin delivering on the promise of change.”Albert Toth22 October 2024 10:401729580400Could the government tax pension savings?Pension tax relief is a reduction of the amount of tax paid on private pensions. It helps workers save for retirement by boosting their pension pots.The amount of tax relief a person is granted is based on their income tax. It will effectively cancel out tax on pension contributions up to a maximum of £60,000.After this, contributions will be taxed at either 20, 40, or 45 per cent, depending on which income tax rate the worker falls into.However, the chancellor is thought to be considering a flat 30 per cent pension tax relief rate. This would mean that higher earners would effectively pay 10 per cent in tax, while those on the additional rate would pay 15.The measure would raise around £3 billion a year, with 7 million earners paying more tax. But it would be better news for basic rate earners, who would actually begin to receive a 10 per cent boost to their pension contributions.Evaluating the idea last year, the IFS said it would “redistribute the burden of taxation from the bottom 80 per cent to the top 20 per cent of earners.”Jabed Ahmed22 October 2024 08:001729573200Calls for budget to fund Iron Dome-style missile defence system in UKThe UK needs its own version of Israel’s Iron Dome missile defence system to protect it from Russian aggression, former ministers have said.Former defence secretary Penny Mordaunt told The I: “This is a significant UK capability gap we must plug at the earliest opportunity. The forthcoming Budget must enable early work to be done on the alliance’s key needs and let the US and other partners know we mean business.”Jabed Ahmed22 October 2024 06:001729566000Fact check: Would raising employer national insurance be a ‘tax on working people’?Speculation has mounted in the subsequent months, with an increase in employer NICs now looking likely. The measure has caused strong political debate, focused on whether it would break Labour’s manifesto pledge to not raise taxes on “working people.”Ministers and Treasury officials have indicated the government’s position is that the measure would not break their manifesto pledge. Labour has not confirmed that an employer NIC hike will be included in the Budget, but has refused to rule the measure out.Meanwhile, Institute for Fiscal Studies director Paul Johnson has argued it would be a “straightforward breach.”The tax expert adds that in the extreme case that an increase of one pence per pound in employer NICs was passed on to employees in the form of lower wages, the measure would only net £4.5 billion a year. He adds that the end figure would probably be a little higher than this, but much less than a previous HMRC estimate of £8.5 billion.Jabed Ahmed22 October 2024 04:001729558800Martin Lewis sends warning over Buy Now Pay Later crackdownMartin Lewis has issued a warning over a new crackdown on buy now, pay later products.The money expert has cautioned consumers it is a case of buy now, get protected later.Ministers have announced that millions of shoppers are to be protected by new rules for BNPL, as they are known.Mr Lewis welcomed the change saying: “Buy Now, Pay Later is now ubiquitous at online checkouts, so the fact it’s never been regulated is a travesty I and others have long campaigned on.“The last chancellor promised to regulate, then the tumbleweed rolled as he went silent, so I am delighted the new government has quickly restarted the process.”Jabed Ahmed22 October 2024 02:00 More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseLow-level criminals could serve their sentences under house arrest as part of plans to free up prison space and ease overcrowing. A government review, launched on Tuesday, will explore tougher punishments outside of prison while making sure there is space to incarcerate the most dangerous offenders.It comes on the same day that around 1,100 inmates are due to be freed as part of the government’s policy to free up prison space.The review will look at using technology to place criminals in a “prison outside prison” and forcing offenders to do work in the community to give back to society.Punishments outside prison could involve using wristwatches or apps that “nudge” offenders to ask if they have complied with licence conditions, in addition to sobriety tags or home detention curfews.Shabana Mahmood (Jordan Pettitt/PA) More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseSir Keir Starmer is facing pressure to rethink the UK’s position on reparations for its role in the slave trade, as the government is set to face a showdown next year with a delegation of Caribbean nations over the issue. It comes as the prime minister travels to Samoa for a major Commonwealth summit. The biennial gathering of heads of government for the 56 nations, will see leaders elect the new Commonwealth secretary general. All three candidates seeking the top job have called for reparations to countries that were affected by slavery and colonialism.The 15 member states of the Caribbean Community (Caricom), who have previously set out formal demands for reparations in a 10-point plan, are planning a delegation to the UK in 2025 with an updated list of demands.Downing Street has rejected demands, saying the issue is “not on the agenda” for the event and “we won’t be offering an apology”.Pressure is also building on Sir Keir from within his party, with Bell Ribeiro-Addy, MP for Clapham and Brixton Hill, saying No 10’s position was “disappointing” and likening it to old “colonial attitudes”.The prime minister will travel to Samoa for a major Commonwealth summit More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseFormer Conservative minister Richard Holden is leading a campaign to secure protected status for traditional pie and mash as a celebration of the “original fast food”. Mr Holden and producers have made representations to the Department for Environment, Food and Rural Affairs (Defra) about an application for Traditional Speciality Guaranteed (TSG) status for the dish.TSG is a quality scheme that protects the names of food and agricultural products that are made using traditional methods or ingredients. Bramley Apple pie filling and Cornish pasties are some of the foods protected under the scheme. Mr Holden, the MP for Basildon and Billericay, will lead a parliamentary debate in Westminster Hall on Tuesday to further press the case for the “cracking” products to get the “recognition they deserve”.Traditional pie and mash may be given TSG status if there is agreement between producers on the recipe that would need to be follow to use the name in future, Defra said. The recipe involves a minced beef pie served with mashed potatoes and a parsley sauce known as liquor.The recipe involves a minced beef pie served with mashed potatoes and a parsley sauce known as liquor More