Budget 2024 live: Reeves promises billions in extra NHS funding as 700,000 ‘working people’ face tax rise
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 moreCloseThe chancellor will announce Labour’s first Budget in 14 years tomorrow, leading one of the most anticipated fiscal events in over two decades.Ahead of her announcement, the chancellor has announced more details of NHS spending, pledging funding for two million extra appointments. But health secretary Wes Streeting has warned that the NHS still faces “real problems this winter,” adding that “one Budget can’t undo 14 years of damage.”The chancellor has also been warned that rumoured plans to increase employers’ national insurance contributions (NICs) could hit 700,000 workers with a £400 tax rise.This is the number of individuals estimated to be working for ‘umbrella companies’ as contractors or freelancers. Due to a loophole in these workers’ tax status, they will often find themselves covering their employers’ NICs.Andy Chamberlain, of self-employment body IPSE, said: “It’s difficult to see how this wouldn’t breach Labour’s pledge not to raise taxes for ‘working people’.”We’ll be bringing you all the latest updates ahead of the big event here, on The Independent’s liveblog. Show latest update 1730212849Starmer chairs pre-Budget meetingAhead of the Budget, Sir Keir Starmer chaired a political Cabinet meeting, without civil service officials.A Labour spokesman said: “This Budget is about investment with Labour versus decline under the Conservatives. The Prime Minister opened the political Cabinet meeting by saying that ‘politics is about choices’ and that the Budget tomorrow will show that ‘we are choosing to fix the NHS, rebuild Britain and protect the payslips of working people’, to deliver on our mandate for change.The Chancellor told ministers “there would have to be difficult decisions on spending, welfare and tax” to deal with the legacy she inherited.“She said the Labour Party promised there would be no return to austerity and the Budget tomorrow would deliver on that promise. She said the choices the Government is taking will restore economic stability.“She said the Budget would fix the foundations of the economy and deliver on the promise of change.”Albert Toth29 October 2024 14:401730210449‘No-one is going to be happy’: Unions brace for Reeves’ BudgetUnion leaders are braced for increased taxes and spending cuts in Rachel Reeves’ Budget.The chancellor has already warned she has had to make “difficult” choices in her first Budget, and the first one ever to be delivered by a female chancellor.Labour is expected to increase employers’ national insurance contributions, extend the freeze on income tax thresholds, increase in capital gains tax on shares, and close inheritance tax loopholes.One union leader told the Independent: “The impression we are getting is that no-one is going to be happy”.Kate Devlin29 October 2024 14:001730209249Reeves’ first budget is about ‘protecting the payslips of working people’Rachel Reeves’ first budget is about “protecting the payslips of working people”, the prime minister told a political Cabinet meeting.It comes amid a growing row over the definition of “working people”, with the party having promised not to raise national insurance, income tax or VAT on those individuals.Addressing the meeting on Tuesday, Sir Keir said “politics is about choices”, adding that Wednesday’s Budget will show the party is “choosing to fix the NHS, rebuild Britain and protect the payslips of working people”.The prime minister also said that the “question for the Budget is not whether we must act, it is how we act and what choices we make in the national interest”, a Labour Party spokesperson said.Millie Cooke29 October 2024 13:401730208049We will back the OBR says prime ministerThe Government will back the Office for Budget Responsibility (OBR), not trash it, the Prime Minister’s spokesman has said after Jeremy Hunt complained about the body publishing a review of the last administration’s spending plans on the same day as the Budget.The former chancellor complained that the body publishing a review into the “black hole” Labour says it inherited on the same day as the Budget is not impartial.Asked if the Government was using the OBR as a political tool, Sir Keir Starmer’s spokesman said: “No, the Prime Minister is clear that this Government is going to back the independent OBR, not trash it.“The answer is not to blame the referee, face up to the challenges we faced and be honest about the trade-offs and choices the Government face, not pretend they don’t exist.“That’s why the Government is strengthening the OBR through the Budget Responsibility Act to ensure that it’s never sidelined again, like we saw during the mini budget.“The Government has been up front about the black hole of the nation’s finances and it fully backs the OBR and the independent scrutiny it provides.”Albert Toth29 October 2024 13:201730205049Public wants ‘positive, proactive’ vision from Budget, poll showsThe public wants to hear a “positive, proactive vision” for growing the economy and restoring public services when the Chancellor delivers her Budget on Wednesday, a poll has found.Polling by Ipsos on the eve of the Budget found 84 per cent of people thought it was important to hear about Labour’s plans for improving public services during Rachel Reeves’s speech while 80 per cent wanted to hear about plans to grow the economy.Only 69 per cent said they wanted to hear about the financial “black hole” in current spending plans while less than half the public said it was important for Ms Reeves to talk about the role of the previous government in bringing about the current situation.So far, more people said they had heard negative stories about the problems facing public services and the economy than about Labour’s plans for the future.Trinh Tu, managing director of Ipsos UK public affairs, said the public was “sending a clear message” to the Government – “we know the problems, now give us solutions”.She said: “Awareness of the challenges is high, but people are much less clear on Labour’s plans to address them.Albert Toth29 October 2024 12:301730203249Starmer says ‘working people’ shouldn’t fear the Budget – but who are they?As Chancellor Rachel Reeves prepares to deliver Labour’s first Budget in 14 years, we want to hear your views. How should “working people” be defined? Should high earners or those with investments be included? And how should this affect decisions in the upcoming Budget?Share your thoughts here — we’ll highlight the most insightful comments as they come in.Albert Toth29 October 2024 12:001730201449Tories urge rethink on winter fuel payment changes ahead of BudgetConservative MPs have gathered in Westminster to call on the Government to “think again” about means-testing the winter fuel payment.Later on Tuesday, they will hand in a petition to the Treasury ahead of Rachel Reeves’ first Budget on Wednesday.Shadow work and pensions secretary Mel Stride told the PA news agency that the petition has collected “over a quarter of a million signatures”.Mr Stride said that they are “calling upon the Government to think again about means-testing the winter fuel payment”.He said “many” pensioners are going to “really, really struggle”, adding: “This Government chose to give well above inflationary pay rises to trade union paymasters when it came to wage settlements and chose to take this money away from some of the most vulnerable people in the country. We don’t believe that’s right.”Conservative MPs present petition against planned cuts to winter fuel payment More