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    Six big changes to expect from Reeves’ Budget and how they’ll impact your finances

    Chancellor Rachel Reeves has set the scene for tax rises in her autumn Budget on 26 November and everyone from homeowners to pension savers could be in her sights.High inflation and an estimated £30bn fiscal shortfall are putting pressure on the government and ultimately the nation’s finances.Reeves said in a speech in Downing Street earlier this month that “each of us must do our bit for the security of our country and the brightness of its future”.This has been seen as a sign of tax rises to come, especially as the chancellor suggested that she had to “deal with the world as I find it, not the world as I might wish it to be”.The rumour mill has been running for months and with just two weeks to go until the latest fiscal update, here are the key policy changes expected in the Budget and how they might impact your finances.Income tax riseLabour’s main manifesto pledge when it came to power last year was that it wouldn’t raise national insurance (NI), income tax or VAT.Reeves already raised employer NI contributions in her 2024 Budget and it is now expected that an income tax hike is coming.There are rumours that the Treasury is considering an idea from the Resolution Foundation to increase income tax by 2p and reduce employees’ NI by the same amount, which the think tank says could raise £6bn and hit higher earners more than what Labour describes as “working people”.But Sarah Coles, head of personal finance for Hargreaves Lansdown, said it would also hit self-employed people who pay income tax, but not employee NI.Get a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTGet a free fractional share worth up to £100.Capital at risk.Terms and conditions apply.Go to websiteADVERTISEMENTShe said: “They do pay NI, but a different class at a different rate, so they pay 6 per cent on profits over £12,570 up to £50,270 and 2 per cent on profits over £50,270. By only cutting NI for employed people, the system would put more of a burden on the self-employed.”Commentators have also speculated that the chancellor could instead add 1p to the basic rate of tax, increasing it from 20 per cent to 21 per cent.There are rumours that the Treasury is considering a 2p income tax increase More

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    UK Cabinet minister denies plotting to oust embattled leader Starmer

    A senior member of the British government on Wednesday denied he’s plotting to oust Prime Minister Keir Starmer, in a sign of deep anxiety in the Labour Party over its dire poll ratings less than 18 months after a landslide election victory.Health Secretary Wes Streeting said talk of a leadership challenge by Labour officials and lawmakers is “self-defeating and self-destructive.” He spoke after aides to the prime minister preemptively told British media outlets that Starmer would fight any leadership challenge.“It’s totally self-defeating briefing, not least because it’s not true,” he told Sky News. He said “whoever’s been briefing this has been watching too much ‘Celebrity Traitors’,” referring to the hit reality TV show that pits faithful members of a group against conniving enemies within.The 42-year-old health secretary is one of the government’s most effective communicators and is widely tipped as a future party leader.A challenge this early in a government’s five-year term would be highly unusual. But Labour lawmakers are gloomy about opinion polls that consistently put Labour well behind the hard-right Reform UK party led by Nigel Farage – though ahead of the main opposition Conservative Party, which faces crises of its own.They are nervous about the annual budget statement on Nov. 26, which is expected to include income tax hikes, breaking an election promise.Since being elected in July 2024, Starmer’s government has struggled to deliver on its pledges to get the economy growing, repair tattered public services and ease the cost of living. Inflation remains stubbornly high, unemployment has risen and the economic outlook subdued. Latest figures released Tuesday showed that the jobless rate has gone up to 5% in the three months to September from 4.8% in the previous three months — the highest since 2016 once the COVID-19 pandemic years were factored out.Under Labour Party rules, a lawmaker can mount a leadership challenge if they have the support of 20% of their colleagues, a threshold that currently stands at 81 members of Parliament.Britain’s parliamentary political system allows a governing party to change prime minister without the need for an early election, though unelected prime ministers face pressure to demonstrate their legitimacy by going to voters.The U.K. had three Conservative prime ministers – Boris Johnson, Liz Truss and Rishi Sunak – between the last two elections in December 2019 and July 2024. More

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    Millionaires group urge Reeves to introduce wealth tax to ‘lift kids of out poverty’

    A group of wealthy Britons are calling for increased taxes on the rich, claiming that such measures could “lift kids out of poverty” and significantly contribute to rebuilding public services. The campaign group, Patriotic Millionaires, believes Chancellor Rachel Reeves could generate up to £36 billion annually through reforms to capital gains tax and the introduction of a new wealth tax. This appeal comes ahead of Ms Reeves’s upcoming Budget announcement in Westminster later this month.Group member Phil White said: “It’s time for the wealthiest – people like us – to pay a fairer share, so we can help lift these kids out of poverty and begin rebuilding our public services and communities right across the UK.”Speaking as Patriotic Millionaires began a tour to take its message to key cities across the UK, Mr White added: “We all want to live in a society where everyone has a decent shot at life – but at the moment that just isn’t the case.“The gap between the super-rich and everyone else grows by the day.“In Scotland, around one in five children live in poverty, while the country’s five richest families own a combined £19.3 billion – more wealth than a quarter of the population put together.”Patriotic Millionaires, believes Chancellor Rachel Reeves could generate up to £36 billion annually through reforms to capital gains tax and the introduction of a new wealth tax More

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    Downing Street warns plotting ministers that Starmer will fight attempted coup

    Downing Street is preparing to defend the prime minister from any attempt to remove him in a coup, with a number of ministers being proposed as a possible successor.Sir Keir Starmer has been subject to months of rumours that he could be replaced as Labour continue to tank in the polls under his leadership. Several reports on Tuesday evening suggested the prime minister’s position could be challenged after the Budget later this month or next year’s local elections in May.Sources claimed health secretary Wes Streeting has made moves to replace Sir Keir and loyalists within No 10 are said to fear his job could be under threat.Mr Streeting, who is due to appear on the morning media round for the government on Wednesday, has denied the claims, but other names are also said to be in the frame.One senior figure told The Independent that the highly respected defence secretary John Healey is being put forward as “a continuity candidate” and “safe pair of hands”.Meanwhile, home secretary Shabana Mahmood is another name in contention, while the left of the party is looking for former deputy prime minister Angela Rayner to make a comeback or energy secretary Ed Miliband to have a second go as leader.Under pressure: Starmer with the chancellor Rachel Reeves More

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    Name and shame ‘shrinkflation’ culprits, Reeves urged ahead of Budget

    The chancellor has been urged to introduce measures to “shame” companies that are increasing the price of their products while decreasing their size at the upcoming Budget.This phenomenon – known as ‘shrinkflation’ – has become pronounced during the ongoing cost of living crisis, with food prices remain high for many despite inflation recently slowing.Supermarkets should be empowered to put labels on offending products, the Institute For Public Policy Research (IPPR) has said, forcing greater transparency on food prices.It forms a suite of recommendations made by the think tank ahead of the fiscal event on 26 November. Its researchers have called on the chancellor to declare a “war on bills”, making the cost of living central to her economic agenda.Other measures put forward include forcing smaller convenience supermarkets to stock cheaper non-brand items, and ensure the same deals are available in these locations as in larger stores. Supermarkets should be empowered to put labels on ‘shrinkflated’ products, the IPPR says More

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    Over 100 groups call for Labour to fully scrap two child benefit cap: ‘Do the right thing’

    More than one hundred organisations have called on Labour to scrap the two-child benefit cap in full, as ministers reportedly consider ways to tweak – rather than fully remove – the controversial policy.Writing to Sir Keir Starmer and Rachel Reeves, groups including the Child Poverty Action Group (CPAG), Citizens Advice and the British Medical Association (BMA), say it is “not the time for half-measures” in response to the reports.“Now is the moment for the prime minister and chancellor to hear the voices of the UK’s children and take this vital opportunity to do the right thing,” they said in a joint letter.“Abolishing the two-child limit in full will set millions of children’s lives on a path to a brighter future, and help to rebuild a stronger, fairer country and economy”.The two-child benefit cap prevents parents from claiming universal credit or tax credit for their third child. It was introduced by the Conservatives and came into place in April 2017. It only applies to children who were born after 6 April 2017.The chancellor has hinted she will act on the two-child benefit cap (Justin Tallis/PA) More

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    We must fight for our journalism, defiant BBC boss says after Trump legal threat

    The departing boss of the BBC has warned staff against the “weaponisation” of criticisms of the corporation as it faces a $1bn (£760m) legal threat from Donald Trump.Tim Davie admitted the organisation had “made some mistakes that have cost us”, but hit out at the BBC’s “enemies” and urged colleagues “to fight for our journalism” as he addressed staff for the first time since resigning over the way a speech by the US president was edited in an episode of Panorama.His comments came amid growing pressure on the team behind the programme, with two former culture secretaries calling for sanctions against more senior staffers days after Mr Davie and Deborah Turness, the chief executive of BBC News, revealed they would be standing down.Deborah Turness speaks to the media outside BBC Broadcasting House in London on Monday after her resignation More

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    Voices: The UK used to proudly lead the world on international aid – now we don’t save lives that we should

    The decision to cut the UK’s contribution to the Global Fund to Fight Aids, Tuberculosis and Malaria is a mistake. Hundreds of thousands of deaths that were preventable are now to be expected. Our support to the Global Fund represents the best of Britain, working with other countries to deliver value-for-money impact. With our funding, the Global Fund made extraordinary progress in the fight against the most prevalent preventable diseases. Millions of lives have been saved, with health systems strengthened across the poorest countries. We are closer than ever to eliminating Aids. Yet at this pivotal moment, the UK has become the first host country ever to cut its contribution. It is tempting, at times, to be sceptical about the UN and multilateral funds. They can be remote, overly bureaucratic and detached from local realities that make aid truly effective. But the Global Fund has proven itself to be what we all want from the aid sector. Since its founding in 2002, it has saved 70 million lives and delivered extraordinary value for money. This isn’t charity; it’s partnership. My time working on the ground in Kenya made one thing clear: programmes succeed when they’re designed with communities as partners, not recipients. The Global Fund combines global scale with local knowledge. It works because disease eradication requires both. This disappointing cut follows the UK’s 20 per cent reduction to Gavi, the Vaccine Alliance, earlier this year. A pattern is emerging: our retreat from the programmes that have delivered the greatest results. Cuts to multilateral programmes don’t just shrink spreadsheets in New York and Geneva. They cascade downwards, landing hardest on the programmes and people who can least afford it. It is women and girls who will pay the highest price. They already face a disproportionate burden of these diseases, particularly HIV. Discrimination, unequal access to education, healthcare, water and sanitation, and gender-based violence drive up infections and create barriers to treatment. At a time when women’s rights are under assault globally, Britain should be standing against that tide. We have watched this happen before. In 2021, when the Conservative government slashed aid recklessly, women and girls were the first to be abandoned. Clinics shuttered. Reproductive health programmes vanished. School initiatives stopped abruptly. The most vulnerable left behind, not because their needs had changed, but simply because there was no plan. Now, that same uncertainty has returned. The development budget has been cut again, and we are still waiting for a clear strategy to emerge. Last year, the former development minister, Anneliese Dodds, had laid out her vision for Britain’s future in a well-received speech to Chatham House. Much has changed since then, but the need for strategic thinking hasn’t. As the new foreign secretary, Yvette Cooper, considers how to deliver the temporary aid cut announced by the prime minister, one question remains: where will the axe fall? Without a plan, we’re poised to repeat the mistakes of 2021. The upcoming Budget is a chance to change course. Britain needs what we’ve lacked for years: a long-term plan. A clear timetable back to investing 0.7 per cent of national income in international development. An end to the use of overseas aid to fund refugee accommodation in Britain. Properly directed, this investment serves our national interest, preventing the spread of conflict and disease to keep Britain safe. Britain once proudly led the world in international development because we embraced a first principle: that cooperation and compassion are expressions of strength. Our strength and purpose must extend beyond our borders. Co-hosting the Global Fund’s 8th Replenishment alongside South Africa on 21 November sends a strong signal. But leadership isn’t measured by the conferences we host. It’s measured in the lives we save, and those that we don’t when we could. Fleur Anderson is a member of parliament’s foreign affairs select committee, a former Northern Ireland Minister (2024-5) and Labour MP for PutneyThis article has been produced as part of The Independent’s Rethinking Global Aid project More