UK Politics

Rachel Reeves is reportedly expected to introduce a ‘milkshake tax’ in next week’s Budget as she tries to plug the gap in the public finances. The chancellor had been expected to breach a Labour’s manifesto promise by increasing income tax. But The Financial Times last week reported she has abandoned those plans over fears they could anger voters and Labour MPs.Now, the chancellor could be expected to change a number of smaller taxes in an attempt to balance the books.Among them could be a tax on milkshakes, as The Telegraph reports that Ms Reeves is preparing to end an exemption that milk-based drinks have from the levy on soft drinks.The Soft Drinks Industry Levy currently applies to soft drinks with added sugar and it means that the producers pay at least 18p per litre on soft drinks containing 5g or more of sugar per 100ml.The levy does not currently apply to dairy-based drinks, but Ms Reeves is planning to end that exemption, as well as reducing the threshold to 4g of sugar per 100ml, according to the Telegraph.Conservative shadow chancellor Mel Stride criticised the reported move, saying: “If these reports are true, Labour’s new milkshake tax moves the goalposts yet again for an industry that’s already cut sugar and made changes responsibly.“It will see businesses that played by the rules punished, with products suddenly dragged into the tax net – all to save Rachel Reeves’s skin.”The Independent approached the Treasury for comment. A spokesperson declined to comment on Budget speculation.It comes as speculation mounts regarding the forthcoming budget. The rumours are partly to blame for weaker-than-expected economic growth figures, according to the former top economist at the Bank of England.Andy Haldane, who was chief economist at the Bank until 2021, told Sky News’s Mornings With Ridge And Frost that the build-up to the Budget has been a “circus” and called for the process to be overhauled to prevent leaks that can damage the economy.It follows official figures last week that revealed economic growth slowed to 0.1 per cent in the third quarter, down from 0.3 per cent in the previous three months and worse than most economists predicted.Ms Reeves blamed the weaker performance on the Jaguar Land Rover production shutdown in the wake of its cyber attack, with gross domestic product (GDP) declining by 0.1 per cent during September after the fallout hit activity in the manufacturing sector.But Mr Haldane said the Budget rumours had “without any shadow of a doubt” had a direct impact on growth.He told Sky News the upcoming Budget has been a “real circus that’s been in town for months and months now”.He said: “It’s caused businesses and consumers to hunker down.“One of the reasons we had a very weak growth number last week is because there’s that Budget speculation… (it’s) dampened people’s willingness to spend.“And first and foremost, we need to stop that speculation.” More

Tommy Robinson has welcomed the government’s sweeping reforms to the asylum system, sparking concern from Labour backbenchers. Shabana Mahmood is set to rewrite how Britain grants refuge to those fleeing conflict and upheaval with a statement in the House of Commons on Monday – an overhaul she insisted is needed because the “pace and scale of change destabilised communities”.The Home Office has billed the reforms, inspired by a strict approach taken by Denmark, as being the “biggest changes to the asylum system in modern times”. Welcoming the proposals, the far-right activist posted to social media: “The Overton window has been obliterated, well done patriots.”Tommy Robinson welcomed the government’s asylum reforms More

Jewellery and valuables belonging to refugees could be confiscated in order to pay for accommodation and other costs as part of sweeping reforms to the asylum system, a Home Office minister has said.Alex Norris said it is “right that if people have money in the bank, if people have assets… they should be contributing”, but he insisted that the government would not be taking “family heirlooms” off people arriving in Britain. Shabana Mahmood is set to rewrite how Britain grants refuge to those fleeing conflict and upheaval with a statement in the House of Commons on Monday – an overhaul she insisted is needed because the “pace and scale of change destabilised communities”.The government is about to unveil sweeping changes to the asylum system More

BBC chairman Samir Shah has said the broadcaster is “determined to fight” Donald Trump after the US president said he would sue the corporation for between $1bn and $5bn over the editing of a 2021 speech broadcast by Panorama.It had been reported that Sir Keir Starmer was planning to call Mr Trump over the weekend where he would tell the president that the BBC must get its house in order, as well as defending the broadcaster as a British institution – but it is understood the call did not take place. In an email to staff, Mr Shah said there is “no basis for a defamation case”. “There is a lot being written, said and speculated upon about the possibility of legal action, including potential costs or settlements”, he said. Trump said ‘this is beyond fake, this is corrupt’ when asked about the BBC edit More

It’s a tough message Shabana Mahmood will hope will reach the disgruntled voter, the criminal gangs smuggling people on small boats, and even the would-be migrants on the northern shoreline of Pas-de-Calais 100 miles from Westminster.On Monday afternoon, the home secretary will reveal sweeping reforms to the asylum system in an unprecedented bid to make it easier to remove migrants fleeing conflict and hardship and make the UK a less attractive destination.Over a troubled first 16 months in power for Sir Keir Starmer’s Labour government, illegal immigration has been a hot button topic, with claims ministers have failed to control the country’s borders. In the year to June, the UK received the highest number of asylum applications since 2011, while the number of people arriving via small boat crossings hit almost 20,000 in the same period.Now, after attempts by Sir Keir to stem the flow – the targeting of people-smuggling gangs and then the “one in, one out” deal with France – Ms Mahmood, appointed home secretary in September, will introduce her own sweeping reforms.People thought to be migrants attempt to board a small boat in Gravelines, France – where many wait the opportunity to travel across the English Channel to the UK More

The UK’s historic Brexit vote may have been almost a decade ago, but the fall out has rumbled on interminably – now, EU rules on oat production are the latest flashpoint threatening to undermine government efforts to work with the bloc.Ministers are said to be engaged in a battle to save the humble oatcake, as Keir Starmer’s government seeks to reset relations with the EU.UK efforts to realign agricultural policy with Brussels means that British oats could fall foul of regulations for being too mouldy – containing too high a level of mycotoxins – which proliferate in crops like oats when they are grown in damper coastal climates like Britain’s.Farming groups raised concerns last year following the introduction by the European Commission of restrictions on mycotoxin levels in foods sold in the EU. Consumed at high levels, mycotoxins can be damaging to human health. As well as cereal crops, they can be found in nuts and dried fruits, and eaten in large quantities can lead to various adverse health effects, including kidney and liver damage, immune suppression, and have been linked to cancer. The concern for British farmers is that during damp, warm seasons, much of Britain’s oat harvest risks being condemned as unfit for human consumption under these EU rules, rendering the crop unsellable. The EU has turned up the heat on UK oats, angering farmers More

Speculation over the upcoming Budget is partly to blame for weaker-than-expected economic growth figures as worries over tax hikes hit business and consumer spending, the former top economist at the Bank of England has warned.Andy Haldane, who was chief economist at the Bank until 2021, told Sky News’s Mornings With Ridge And Frost that the build-up ahead of the Budget has been a “circus” and called for the process to be overhauled to prevent leaks that can damage the economy.It follows official figures last week that revealed economic growth slowed to 0.1 per cent in the third quarter, down from 0.3 per cent in the previous three months and worse than most economists predicted.Chancellor Rachel Reeves blamed the weaker performance on the Jaguar Land Rover production shutdown in the wake of its cyber attack, with gross domestic product (GDP) declining by 0.1 per cent during September after the fallout hit activity in the manufacturing sector.But Mr Haldane said the Budget rumours had “without any shadow of a doubt” had a direct impact on growth.Staff got back to work at the Jaguar Land Rover Wolverhampton factory after production was halted for five weeks More

Home secretary Shabana Mahmood has warned that “dark forces are stirring up anger” over immigration as she prepares to set out sweeping reform of the asylum system. It comes amid growing concern among senior party figures over the reforms, which the Home Office has billed as being the “biggest changes to the asylum system in modern times” and have been inspired by a strict approach taken by Denmark.Ms Mahmood is set to rewrite how Britain grants refuge to those fleeing conflict and upheaval with a statement in the House of Commons on Monday – an overhaul she insisted is needed because the “pace and scale of change destabilised communities”.Shabana Mahmood will give a statement to the Commons on Monday afternoon More