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 moreClose British Treasury chief Rachel Reeves will deliver her first budget in Parliament on Wednesday, a tightrope act that aims to find billions for investment through borrowing and tax hikes without roiling businesses or raising taxes on working people.It’s the first budget by a Labour Party government in almost 15 years, and the first ever delivered by a female finance minister.Reeves pledged that the budget will put “more pounds in people’s pockets” and get the economy growing, but the government has struck a gloomy note about the state of the public finances.Prime Minister Keir Starmer warned that the budget will reflect “the harsh light of fiscal reality.”The center-left Labour Party was elected July 4 after promising to banish years of turmoil and scandal under Conservative governments, get Britain’s economy growing and restore frayed public services, especially the state-funded National Health Service.The center-left government argues that higher taxes and limited public spending increases are needed to “fix the foundations” of an economy that it argues has been undermined by 14 years of Conservative government.The Conservatives say they left an economy that was growing, albeit modestly, with lower levels of debt and a smaller deficit than many other Group of Seven wealthy nations.Pumping money into health, education and housing is a priority of the new government, made harder by a sluggish economy, hobbled by rising public debt and low growth. The government also says there is a 22 billion pound ($29 billion) “black hole” in the public finances left by the Conservative government.That means the budget is certain to include tax increases — though Labour has pledged not to raise the tax burden on “working people,” a term whose definition has been hotly debated in the media for weeks. The Treasury has announced that about 3 million of the lowest-paid workers will get a 6.7% pay increase next year, with he minimum wage rising to 12.21 pounds ($15.90) an hour.Reeves – Britain’s first female chancellor of the exchequer — is widely expected to tweak the government’s debt rules so that she can borrow billions more for investment in the health system, schools, railways and other big infrastructure projects, and to raise money by hiking tax paid by employers, though not employees. 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 pledge to put “more pounds in people’s pockets” when she announces her first Budget on Wednesday.After months of warning the public of the “tough choices” ahead, Ms Reeves is expected to promise to “invest, invest, invest” in order to “fix public services”.Reeves is expected to say in her speech today: “My belief in Britain burns brighter than ever. And the prize on offer to today is immense.“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.“And the only way to drive economic growth is to invest, invest, invest. There are no short cuts. To deliver that investment we must restore economic stability.”The minimum wage will increase to £12.21, the Treasury revealed on Tuesday evening.Ms Reeves has described the 6.7 per cent increase as a “significant step” towards creating a “genuine living wage for working people” – although it falls short of the £12.60 an hour sum recommended by the Living Wage Foundation.Show latest update 1730253600Full report: Rachel Reeves pledges to ‘invest, invest, invest’ as she prepares to unveil historic Labour BudgetIn what is expected to be a Budget of record-breaking tax rises involving “tough choices” to “fix public services”, Ms Reeves will hold out some hope with a rallying cry that she intends to “invest, invest, invest” to turn the country around.The rhetoric appears to deliberately echo Tony Blair’s three priorities of “education, education, education” ahead of the 1997 election as Ms Reeves attempts to grasp the optimism of his New Labour government in what is widely expected to be a gloomy Budget.The Independent’s Political Editor David Maddox reports:David Maddox30 October 2024 02:001730250000‘Serious concern’ among small business owners about Budget tax risesSmall business owners are “seriously concerned” by the possibility of tax rises in the Budget on Wednesday.Some fear they will need to cut their employee headcount, including paraplanning business owner Steve Luke, 56.“I’m seriously concerned that if the Budget is as bad as I’m expecting then we may have to reduce the workforce from nine to seven or eight,” he told PA.Mr Luke says he is concerned the government will not view him as a “working person” in the Budget, as he takes a small salary from the business while also paying himself a dividend due to fluctuating income.Farmer and landlord Richard Payne, 61, who owns around 500 acres of land and rents 150-200 acres for wheat, barley, oilseed rape and canola farming, says he is “extremely nervous”.“Whilst I’m probably not going to be clobbered hard on national insurance contributions, because we don’t employ a huge number of people… I’m more worried about taxation on profit, if we make any, and also, in my case, losing agricultural property leave or business property relief on our assets,” he said.Joy Francis, 76, the owner of two nurseries and employer of 22 people, fears the increase on employer’s national insurance contributions.“(The Government) just doesn’t seem to grasp the concept of small businesses being the backbone of the economy and we’re not all money-grabbing people with shareholders to pay.”Alex Croft30 October 2024 01:001730246520Chancellor must fund Scotland “immediately and significantly”, John Swinney saysFunding for Scotland must increase “immediately and significantly” in Wednesday’s budget, first minister John Swinney has said.At a reception for business leaders on Tuesday, Mr Swinney said: “The Office for Budget Responsibility highlighted recently the potential for public investment to deliver permanent improvements in the economy.“It is welcome that my calls for the Chancellor to amend her fiscal rules have been heard, with indications last week that there will be scope for greater investment.“The Chancellor has the chance to choose to deliver a UK Budget that invests in our public services and supports the entrepreneurial spirit displayed in Scotland’s business sector.“With these new rules in place, the Chancellor must use the fiscal headroom they create to deliver a Budget that immediately and significantly enhances Scotland’s resource and capital funding, enabling us to invest more in our public services and take forward the vital infrastructure projects that support economic growth, net zero, and action to tackle child poverty.”The Scottish government recently made more than £500 million of in-year cuts, with Scotland’s finances in significant difficulty.Mr Swinney has also called for an Acorn carbon capture and storage facility in the north east of Scotland to be funded after it was overlooked twice by successive UK governments.Chancellor Rachel Reeves, left, with first minister John Swinney, right 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 moreCloseRachel Reeves will unveil her historic Budget – the first by a Labour chancellor in 14 years – with a message of hope for the UK as she pledges to deliver economic growth and put money back in people’s pockets with a rise in the national minimum wage.In what is expected to be a Budget of record-breaking tax rises involving “tough choices” to “fix public services”, Ms Reeves will hold out some hope with a rallying cry that she intends to “invest, invest, invest” to turn the country around.The rhetoric appears to deliberately echo Tony Blair’s three priorities of “education, education, education” ahead of the 1997 election as Ms Reeves attempts to grasp the optimism of his New Labour government in what is widely expected to be a gloomy Budget.The first female chancellor in the position’s 803-year history will tell the country her “belief in Britain burns brighter than ever” and while she will be making some difficult decisions “the prize on offer to today is immense”.Reeves prepares for the autumn Budget 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 moreCloseThe Labour mayor of Greater Manchester Andy Burnham has broken ranks with Sir Keir Starmer to reject controversial plans to raise the bus fare cap by 50 per cent.The cost of a bus journey in the city will still be capped at £2, Mr Burnham has announced.Sir Keir announced in a speech in Birmingham on Monday the maximum bus fare will rise to £3 in England until the end of 2025, in a bid to ease pressure on the public finances.The hike will be announced at Rachel Reeves’ Budget on Wednesday as the government tries to plug a £22bn hole in the public finances.But Mr Burnham said on Tuesday that Manchester would “proceed with our plan to introduce a new simpler, flatter fare structure based around a £2 single fare” at the start of January.Andy Burnham said bus fares will still be capped at £2 in Manchester 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 moreCloseMillions of workers will be handed inflation-busting pay increases as Rachel Reeves hikes up the minimum wage by 6.7 per cent.The chancellor will increase the measure, also known as the national living wage, from £11.44 per hour to £12.21 in April next year.The change amounts to a £1,400 annual pay rise for a full-time worker on the national living wage. The government will also increase the minimum wage for 18- to 20-year-olds by £1.40 per hour as part of a plan to end the disparity between younger and older adult workers. In total, the change means 3.5m people workers on the minimum wage will receive a pay boost.Rachel Reeves will deliver her first Budget on Wednesday More