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    Budget 2024 latest: Labour grandee warns Reeves over ‘very worrying’ tax raid which would raise billions

    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, veteran Labour politician Lord Blunkett has warned the chancellor against “very worrying” proposals to raise national insurance on employers’ pension contributions. Writing in The Times, the former Labour work and pensions secretary said: “It is one thing to increase the rate of National Insurance, and quite another to levy this on employer pension contributions.“I sincerely hope the rumours are well wide of the mark.”Yesterday, the chancellor said “taxes will need to rise” in her starkest warning to the public yet. Writing in the Financial Times, the chancellor added that this will come alongside “tough decisions on spending and welfare.”Ms Reeves also strongly hints that she will be revising Labour’s fiscal rule around debt, unlocking a potential £57bn for investment, writing that the rule “will make space for increased investment in the fabric of our economy”.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 1729861077Labour Budget must tackle “black hole” in family finances, charity saysNew research by the Joseph Rowntree Foundation ahead of next week’s Budget shows the ongoing “black hole” in family finances, particularly affecting the poorest families, with many already £700 worse off than they were five years ago.They are calling on the government to act on the findings and take action on hardship at the upcoming event.Katie Schmuecker, Principal Policy Adviser at JRF, says: “The Budget on October 30th is not just a book-balancing exercise, it is a statement of political intent.“The Labour manifesto described the need for emergency food parcels as a moral scar on our society, so it is inconceivable that there will not be a serious plan to protect families from hardship this winter and beyond.“Last year Labour condemned the fact that 1 million children experienced destitution in a single year as a damning indictment of the Conservative government. A Labour government now has the power to take urgent action and people are looking to them to act.”Albert Toth25 October 2024 13:571729859425Budget rumours: Private equity profitsIn a manifesto pledge, Labour said it will announce more details on plans to close the private equity tax loophole in the October Budget.Due to the ‘carried interest’ law, private equity fund managers pay only 28 per cent tax on their income, which is treated as capital gains. This was the result of a successful lobbying campaign in 1987.Labour has vowed to change this, making managers pay the 45 per cent higher rate of income tax. It is estimated the change will raise around £600 million a year with just a few thousand people affected.Albert Toth25 October 2024 13:301729850452Rachel Reeves set to borrow billions for investment after announcing major change to fiscal rulesRachel Reeves has announced a change to the fiscal rules ahead of next week’s budget, allowing her to borrow billions more each year.The chancellor today confirmed her rules will “make space for increased investment in the fabric of our economy”, amid widespread expectation she will change the way debt is measured.Archie Mitchell25 October 2024 11:001729843822Lord Blunkett: Plans to increase NI on pension contributions “very worrying”Veteran Labour politician Lord Blunkett has expressed his concerns over rumoured plans to reform pension tax relief, extending employers’ national insurance contributions.Writing in the times, he said: “The widespread reporting of a possible extension of employers’ national insurance in next week’s budget is very worrying. It is one thing to increase the rate of national insurance, and quite another to levy this on employer pension contributions.“As the former work and pensions secretary who signed off, with Tony Blair and Gordon Brown, pensions auto-enrolment — which recognised the genuine crisis, for generations to come, in maintaining living standards in retirement — I would advise strongly against this.“We need more employers contributing more than the basic 3 per cent and, with it, the corollary of savings and investment, not less. I sincerely hope the rumours are well wide of the mark.”Albert Toth25 October 2024 09:101729836005Rachel Reeves set to borrow billions for investment after announcing major change to fiscal rulesAlexander Butler25 October 2024 07:001729832400Air Passenger Duty may go up in Reeves’s Budget – could the ‘Inverness Immunity’ come to an end?A week from now, the chancellor will be rehearsing for her first Budget. With rises in the most significant taxes – such as income tax and VAT – ruled out, Air Passenger Duty (APD) looks ripe for an increase, writes Simon Calder.Read his expert advice: Simon Calder25 October 2024 06:001729821600How make-or-break Budget has fractured Keir Starmer’s cabinetRachel Reeves’ Budget is a make-or-break moment for Sir Keir Starmer’s government, potentially sparking a decade of national renewal – or sowing the seeds of Labour’s downfall.The prime minister’s poll ratings are at rock bottom after just over 100 days in charge, and the much-hyped “tough choices” to be unveiled on October 30 will likely do little to help boost his appeal.Albert Toth25 October 2024 03:001729818000Rachel Reeves to turn on spending taps with Budget boost for infrastructure and clean energyAlexander Butler25 October 2024 02:001729810860How Labour could push through ‘stealth’ income tax rise at the BudgetLabour is expected to extend an income tax measure that has been described as a “stealth tax” at the upcoming Budget as more people are set to pay higher rates.Officials have said Rachel Reeves is looking to extend the freeze on income tax thresholds, which has dragged millions of earners into paying higher rates of income tax since 2021.Albert Toth25 October 2024 00:011729800044Rachel Reeves set to borrow billions for investment after announcing major change to fiscal rulesRachel Reeves has announced a change to the fiscal rules ahead of next week’s budget, allowing her to borrow billions more each year.The chancellor today confirmed her rules will “make space for increased investment in the fabric of our economy”, amid widespread expectation she will change the way debt is measured.Albert Toth24 October 2024 21:00 More

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    Keir Starmer claims those with assets are not working people in biggest tax rise hint

    Keir Starmer claimed those with assets are not working people in his biggest hint at a tax rise in the Budget.During a broadcast interview at a Commonwealth summit in Samoa on Thursday (24 October), Sir Keir told Sky News that he does not consider people who have an income from assets such as shares of property to be working people.“They wouldn’t come within my definition,” he said.Labour’s manifesto said the party would not increase taxes on working people, including VAT, national insurance, and income tax. More

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    Vote-weary Bulgarians face a seventh general election in just over 3 years

    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 Bulgarians will cast ballots on Sunday in the seventh general elections in just over three years as the country faces growing political instability that might further enhance the popularity of pro-Russian and far-right groups.Of the six elections since 2021, only two have produced an elected government, but both coalitions collapsed after trying to introduce reforms, take on graft, and reduce reliance on Russia.There was no clear winner in the latest vote, held in June, and the seven groups elected to the fragmented legislature were unable to put together a viable coalition. Observers suggest that the coming vote will produce more of the same and that chances for an immediate end of the political stalemate are low.Pollsters predict that voter fatigue and disillusionment with the political system will result in low turnout and another fractured parliament where populist and pro-Russian groups could increase their representation. A record low turnout is expected and at the same time a high number of votes which have not been cast freely, said prominent analyst Stoyana Georgieva. These include instances where parties have paid for votes in cash but also where local authorities or corporations have put pressure on voters to cast their ballots in a certain way. Georgieva said it was possible that the main pro-Russia party in Bulgaria, Vazrazhdane, would emerge as the second-largest group in parliament. The far-right, ultra-nationalist and populist party demands that Bulgaria lift sanctions against Russia, stop helping Ukraine, and hold a referendum on its membership in NATO.The Balkan country of 6.7 million has been gripped by political instability since 2020, when nationwide protests erupted against corrupt politicians that had allowed oligarchs to take control of state institutions.Bulgaria is one of the poorest and most corrupt European Union member states. Attempts to fight graft are an uphill battle against an unreformed judiciary widely accused of serving the interests of politicians.Georgieva said she does not expect the next parliament to produce a widely acceptable compromise. “At best, it could be a compromise on the edge of the least evil in Bulgaria. In this turbulent situation in the region — with the war in Ukraine, the war in the Middle East — both conflicts are very close to Bulgaria and Bulgaria is very vulnerable,” she told The Associated Press.According to Georgieva, three main groups of parties will enter the next Parliament. “The first group are the kleptocratic parties led by the until recently ruling GERB, which is also the first political force whose leader and former prime minister is responsible for the implementation of a corrupt model in Bulgaria,” Georgieva said referring to former Prime Minister Boyko Borissov.“The second group … are parties that in some honest way try to defend the causes of justice and liberal democracy; and a third group of parties that are openly pro-Putin.”It is very likely, said Georgieva, that after these elections some kind of government will be formed between the democrats and the kleptocratic parties that still hold pro-European and pro-Ukraine positions.While the successive elections since 2020 have produced broadly similar results, the current election will add some changes to the political landscape. Two of the oldest parties — the Socialists and the Movement for Rights and Freedoms — have been seriously shaken by internal conflicts.The MRF, which traditionally represented the ethnic Turkish vote, recently split into two rival factions, one around party founder Ahmed Dogan, and the other behind U.S.-sanctioned businessman and media tycoon Delyan Peevski. More

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    Lithuania votes in the 2nd round of its parliamentary election, with change uncertain

    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 Lithuanians will vote Sunday in the second and final round of parliamentary elections, with the conservative governing party still in contention despite first-round gains for the left-leaning opposition.Strict COVID-19 measures during the pandemic, political scandals involving several key members of the Cabinet and an influx of migrants from neighboring Belarus have hurt the popularity of Prime Minister Ingrida Šimonytė’s government, which took office in 2020. The vote in Lithuania, which borders Russia’s Kaliningrad exclave to the west and Belarus to the east, comes at a time when Russia’s war in Ukraine is fueling greater fears about Moscow’s intentions, particularly in the strategically important Baltic region.It will set the political tone for the next four years, but despite a possible shift to the left analysts say there won’t be significant change Lithuania’s foreign policy. The European Union and NATO member is a staunch supporter of Ukraine. On Sunday, voters in dozens of electoral districts will choose between the two leading candidates from the first round and complete the new 141-seat parliament, known as the Seimas.The opposition Social Democrats, led by Vilija Blinkevičiūtė, came out of the first round with an edge two weeks ago, taking 20 of the first 70 seats to be decided. That put them two seats ahead of Šimonytė’s Homeland Union party. Blinkevičiūtė has said that she and the center-left Democratic Union, which took eight seats, would attempt to form a coalition together with a smaller third party. The three parties, which so far have 34 lawmakers in total, have said they would support each other’s candidates in the second round. But the center-left parties could lose their lead, and their ability to form a stable government could depend on a new party that many consider a pariah. The Nemuno Aušra party came in third in the first round, with 15 seats. Its leader Remigijus Žemaitaitis had to resign from parliament earlier this year for making antisemitic statements. A strong showing for Nemuno Aušra could open the way for the prime minister’s party to form a minority government.“Nobody can claim to have an obvious majority after the first round,” said Mažvydas Jastramskis, a political analyst at Vilnius University’s institute of international relations and political science.Šimonytė’s Homeland Union won 18 seats in the first round and its coalition member, the Liberal Union, took eight. Both have several dozen candidates leading in run-offs, but they aren’t in a position to win the 71 seats needed for a majority.Tensions in Lithuania’s neighborhood are on voters’ minds as well as domestic concerns.“I voted for those who would never look east, I do not trust former communists and new populists,” Janina Kvietkauskiene, a retired librarian who cast her ballot in an early voting station in Vilnius, told The Associated Press.Most of the traditional parties said before the elections that they would not team up with Nemuno Aušra. The Social Democrats, for instance, have ruled out any alliance with Žemaitaitis’ party. Still, Nemuno Aušra announced this week that it would support the Social Democrats’ Blinkevičiūtė in her bid to become prime minister.Jastramskis said it’s unlikely that the three center-left parties will emerge with enough seats to form a stable new government alone.“The one more likely option for the stable majority is if Nemuno Aušra joins the already announced three-party coalition,” Jastramskis said. “But it may turn out as a major problem for the cabinet if the unacceptable rhetoric and actions continue”. More

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    New, strengthened Online Safety Act needed to protect children, charity says

    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 moreCloseMinisters should commit to a new version of the Online Safety Bill which strengthens regulation in order to better protect children, a charity has said.The Molly Rose Foundation has warned that the current implementation of the Bill by new online safety regulator Ofcom has been risk averse and unambitious, while also exposing structural weaknesses in the Act which it says need to be fixed.In a report published to mark one year since the Act was passed, the charity said it was concerned that Ofcom’s draft regulatory plans were not robust enough in holding tech firms to account, and did not truly grasp the size and scale of online threats, including suicide and self-harm content.It also suggests placing a new duty of candour on tech firms, which would require them to disclose information to the regulator and be open and proactive when new online harms emerge.The Online Safety Act is due to start coming into effect next year, and places new duties on social media platforms to protect users, particularly children, from harmful content, with large fines for those who fail to abide by the rules.Ofcom is currently drafting new codes of practice across a range of policy areas and content types, which platforms will be required to follow.The Molly Rose Foundation was set-up by the family of Molly Russell, who ended her life at age 14, in November 2017, after viewing harmful content on social media.But Molly’s father Ian, who is the chair of the charity, said the rules still needed more work.“Almost seven years after Molly’s death, we urgently need ministers to finish the job, with a strengthened Online Safety Act that makes clear measurable harm reduction is the North Star of this regime,” he said.“While I firmly believe regulation is the best way to protect children from preventable harm, the reality is that timid regulation will cost lives.“Ofcom has so far failed to grasp the nettle and respond decisively to preventable online harm.”The charity’s chief executive, Andy Burrows, said: “By committing to strengthen the Online Safety Act, ministers can give confidence to parents and the country at large that credible, effective and decisive change is on the way.“The Government should commit to a set of clear, effective changes that can build on the landmark Act and deliver the strong regulatory regime that our young people need and deserve.”Alongside its report, the Foundation has published new research which it says shows parents and adults broadly support strengthening the online safety rules.It said 84% of parents and 80% of parents backed a new version of the Act to bolster the regime, with 89% of adults saying they would like to see it be introduced in the first two years of this Parliament.Since coming to power in July, the Labour Government has already strengthened the Act, with Technology Secretary Peter Kyle announcing in September that the sharing of revenge porn was being upgraded to a priority offence under the Act, so platforms would now have to take proactive steps to remove it.At the time, Mr Kyle said he was also “open-minded” about broadening the powers of the Act, including possibly placing criminal liability on named senior managers at social media firms in the event of severe breaches.“I’m open-minded as to what powers need to evolve into the future and where liability rests,” he said.“But I want it to be proportionate and I want it to be effective – I’m not interested in finger-pointing at people unnecessarily.“What I want to do is drive and incentivise behaviour change among any company that has access to British society, so that it benefits society and that any risks are mitigated as much as possible.“Any company that puts these principles first and foremost in a tangible way will find us a Government that is totally on their side and will partner with them to make sure that every British citizen can benefit from their products, but also the jobs and wealth that is created from them.While we’ve already seen some tech firms taking steps in the right direction, once the new duties start to come into force from December, they’ll have to do far moreOfcom spokesperson“But those that don’t prioritise those principles will find us an ever assertive force when it comes to keeping people safer.”In response to the Molly Rose Foundation report, an Ofcom spokesperson said: “We agree that it’s time for tech firms to take action to protect their users, especially children.“The regulations we will finalise in the coming months, once we have finished seeking the views of children, parents and bereaved families, will be the most comprehensive put forward by any regulator in the world.“And we’re confident they’ll deliver a step change in children’s online safety.“Children must be protected from seeing pornography, suicide and self-harm material including by using highly effective age checks.“Algorithms must not promote harmful content to children.“While we’ve already seen some tech firms taking steps in the right direction, once the new duties start to come into force from December, they’ll have to do far more.“And we won’t hesitate to take enforcement action if they fall short.”In a further statement, Technology Secretary Mr Kyle said: “The Online Safety Act lays the foundations for a safer internet and in the coming months will protect against illegal content and harmful material for children.“This Government will be watching closely to ensure the protections make the difference they promised.“For too long safety has been an afterthought as technology is unleashed on our society; my mission is to turn this tide so safety is baked in from the start.“We are already building on the Act; earlier this week we introduced new data laws that will help researchers gather critical evidence about online harms.“This will be essential to informing our future action in protecting everyone online.” More

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    Planned ban on smoking in pub gardens ‘set to be ditched by No 10’ after hospitality rebellion

    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 set to drop a proposed ban on smoking in pub and restaurant gardens, it’s been reported.Smokers will still be barred from lighting up outside hospitals and schools, under plans first outlined in the summer. But the government will axe the idea of including pubs and racecourses in the outdoors smoking ban, according to The Sun.It’s thought ministers reconsidered their plans in the light of outrage from pub landlords and hospitality chiefs, who warned customers would be deterred and their futures threatened.In late August, when the idea first emerged, the prime minister said action was needed to reduce the burden of smoking-related disease on the NHS and the taxpayer.“My starting point on this is to remind everybody that over 80,000 people lose their lives every year because of smoking,” Sir Keir said.And last month, health secretary Wes Streeting called for a “national debate” about the idea of banning smoking outside pubs.“We have got to do two things – reform the health service, but also reform public health, because we might be living longer, but we’re becoming sicker sooner and there is a heavy price being paid for that in our economy, our public finances and in our own health.”Sir Keir Starmer said action was needed to reduce the burden on the NHS More

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    Keir Starmer sparks Labour storm over slavery reparations

    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 has sparked a row at the heart of the Labour Party after senior figures urged him to rethink his decision to rule out reparations for Britain’s role in the slave trade.The prime minister flew into a diplomatic storm with Caribbean leaders over the issue at a summit in Samoa – and drew condemnation from his own MPs back in Britain.Commonwealth leaders are preparing to defy the UK and agree to examine plans for “reparative justice”, which could leave the UK owing billions of pounds in reparations.Sir Keir had urged the group to look to the future at the Commonwealth Heads of Government Meeting (Chogm), which begins on Friday.But Labour grandee Harriet Harman warned that strategy would fail. “[Starmer] needs to be in this conversation rather than be ruling it out,” she said.Starmer has urged the group to look to the future More

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    Keir Starmer rules out post-Brexit youth mobility scheme with EU amid ongoing ‘reset’ with Brussels

    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 has ruled out a free movement deal for young people with the EU in a major setback for his post-Brexit reset with the block.The prime minister’s official spokesman said the UK “will not be considering” a youth mobility scheme, which would allow under-30s to study, work and travel across the European Union for up to two years.It came despite Sir Keir’s Europe minister Nick Thomas-Symonds telling MPs the government would “look at EU proposals on a range of issues” after being asked about the scheme.Sir Keir Starmer has ruled out a youth mobility scheme with the EU More