UK Politics

The UK is “sliding into an avoidable crisis” on work, the author of a major review has warned, with one in five adults now out of the labour force. Overall, 2.8 million working age people are now economically inactive due to health conditions, according to the Keep Britain Working review released on Wednesday.Among 16-34 year-olds, the number of people out of work due to long-term sickness and with a mental health condition increased by 76 per cent between 2019 and 2024. Ex-John Lewis boss Sir Charlie Mayfield was commissioned by the government to lead the report that would look at how officials and businesses could work together to get people who are disabled or long-term sick into jobs.His report found that poor workplace health costs UK employers around £85 billion a year.It also warned that Britons being unable to work due to ill health is costing the country around 7% of GDP (gross domestic product).Sir Charlie said there is “broad recognition that Britain is facing a quiet but urgent crisis”, with ill health now one of the biggest drivers of economic inactivity in the UK.His review told of a culture of fear among workers around ill health, a lack of an effective or consistent support system for employers and employees in managing health, and structural challenges for disabled people.Among the figures detailed in the document, Sir Charlie said that 800,000 more people are out of work than were in 2019 due to health problems, with projections that this could climb by a further 600,000 by 2030. He said that “young adults are being hit hard” and added: the growth in 16-34 year-olds with a mental health condition who are economically inactive due to long-term sickness is particularly concerning, having risen by 190,000 (76%) between 2019 and 2024”. Publishing the document, the ex-retail boss said: “Britain is sliding into an avoidable crisis. Ill-health has become one of the biggest brakes on growth and opportunity. But this is not inevitable. “Employers are uniquely placed to make a difference, preventing health issues where possible, supporting people when they arise, and helping them return to work. If we keep Britain working, everyone wins – people, employers, and the state.”He has proposed a new approach where responsibility for health at work is shared between employers, employees and health services rather than being left to the worker and the NHS.Work and Pensions Secretary Pat McFadden during a visit to the Opportunity Hub in Neath More

Prime Minister Keir Starmer has affirmed his commitment to climate action ahead of his journey to Brazil for the UN Cop30 summit.Speaking to sixth form students at Downing Street on Monday, Starmer, joined by Energy Secretary Ed Miliband, reiterated the government’s dedication to clean energy goals and the UK’s role as a global climate leader.He conceded that Cop30 would present a “challenge” because of the sluggish worldwide progress in cutting emissions and the escalating geopolitical rifts surrounding climate initiatives.“I’ve thought climate change has been our biggest challenge as a species for a very long number of years now,” he said.“I haven’t changed my mind because some other people have changed their minds.“It’s very important we go and we show that leadership. So that’s what we’ll be going for.”Asked about how large countries have failed to stick by previous international agreements and what makes him confident Cop30 will be a success, Sir Keir said: “It’s a challenge. There’s no doubt about it.“You’re trying to get a whole bunch of countries to act in a similar way. That’s not easy. They’ve all got their own political pressures in their own country.“But I genuinely believe that only by coming together and committing and coming back and looking at the commitments we made in the past, and making the argument is really important.“And I think one of the main reasons for going is to continue to make that case.”Starmer conceded that Cop30 would present a “challenge,” becuase of the sluggish worldwide progress in cutting emissions More

Rachel Reeves refuses to rule out hiking income tax, VAT or National Insurance in BudgetRachel Reeves has “no regrets” over potential breaches of Labour’s manifesto pledge not to raise certain taxes in the upcoming Budget, her spokesperson said.It comes as the pound has fallen to a six-month low after Ms Reeves refused to rule out hiking taxes to plug a hole in the public finances in the pre-Budget address on Tuesday morning.Sterling fell 0.3 per cent to $1.3064 – its weakest since April. The FTSE 100 Index meanwhile fell deeper into the red after the speech, down 1 per cent or 92.5 points lower at 9608.9.The chancellor refused to rule out breaking Labour’s manifesto pledge not to raise income tax, VAT or National Insurance – saying “each of us must do our bit” as she paved the way for tax rises in her Budget later this month.A leading think tank has warned that tax rises are “inevitable”, but said there was a way to implement them that “boosts confidence in the economy and the public finances, while also reducing child poverty and the cost of living”.Following the speech, Sir Keir Starmer’s spokesperson backed Ms Reeves and pointed to “fresh challenges”, including tariffs deterring business investment and dampening growth, high inflation and the increasing cost of borrowing.Scottish Labour leader says he will cut income tax if electedThe leader of Labour in Scotland has refused to say whether Rachel Reeves will break the party’s manifesto commitment not to raise taxes – but added he would cut it in Scotland if elected.Anas Sarwar said taxpayers will have to “wait and see” what is in the Chancellor’s Budget on November 26.Asked if he can guarantee Labour will not break its manifesto pledges, Mr Sarwar told the PA news agency: “Let’s wait and see what’s in the Budget in a few weeks’ time.“She is the UK Chancellor that’s responsible for income tax in England and Wales.“Income tax in Scotland is the responsibility of the Scottish Government, and actually the only person that’s been campaigning loudly for the last two years for a rise in income tax in England and Wales is John Swinney, and he’s the very same man negotiating the fiscal framework.”Income tax in Scotland is currently higher for middle and higher earners compared to those living in England.Mr Sarwar said taxes are “too high” in Scotland and he is “clear” Scottish Labour will bring down the tax burden if the party wins next year’s Scottish election.Scottish Labour leader Anas Sarwar (Lesley Martine/PA) More

Research has placed the UK’s state pension at the bottom of the pile against other G7 nations, with British pensioners getting only 22 per cent of their pre-retirement income on average from the state pension.That stacks up poorly when directly contrasted to the 76 per cent of Italy or up to 58 per cent in France, data from wealth management firm Fidelity International shows.But the research also shows a wide variance in how retirement incomes are funded, what other services are paid for by pensioners and how retirement income is calculated for individuals across each of those nations, meaning a direct comparison is not always entirely clear-cut.“It’s important to be cautious when drawing direct parallels – every system has its own rules and funding mechanisms,” said Fidelity’s personal finance expert Marianna Hunt. “In the UK, for example, today’s state pension is largely funded through National Insurance contributions, whereas in Italy employees contribute around 9–11 per cent of their salary towards social security, which also covers pensions and other benefits.”The variance is also visible by the fact the state pension in the UK is a set amount depending on the number of years worked and so on, while in France, for example, the 25 highest-earning years of a person’s working life are used to give an average, from which the retirement amount is then derived – up to half of that figure, with with minimum and maximum amounts along with other criteria.Here in the UK, the state pension acts as a foundational chunk of income to which it is hoped people can add additional monthly money through private or workplace pensions, or other assets such as investments or property. Elsewhere, it may be the main or full amount of retirement income.Making workplace pensions an opt-out policy has been successful in getting British people saving additionally for the future, yet it is still estimated that many people will fall short in having the money to maintain a comfortable lifestyle in retirement.Additional recent data from Standard Life suggested people believe they’ll have to retire at least four years later than they ideally wanted to, due to finance pressures, while more than half (53 per cent) of respondents to a survey said they were worried they weren’t saving enough for retirement.The new research Fidelity shows the state pension age as being younger in the UK than in Italy or the USA, though the average expected number of years for a person to receive the state pension – at 19.8 – was notably fewer than for Canada, France, Italy or Japan.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 websiteADVERTISEMENTUK government spending on state pensions as a percentage of GDP stands at 4.7 per cent according to the Fidelity data – the joint-lowest in the G7, with Italy (12.8 per cent) being the highest. Despite that, there have been concerns that with the state pension due to rise significantly from April, the amount spent on it will be rendered “completely unaffordable” without a rise in pension age to 80.Additionally, having the NHS means the UK has a health service – an important service for pensioners in particular – which is almost entirely free to use at point of contact, in stark contrast to the US or Canada, and even to European members of the G7. More

The pound has dropped to a six-month low after Rachel Reeves gave her strongest hint yet that taxes will rise at the Budget in a major speech on Tuesday morning.The pound, which was already lower ahead of the speech, fell further after the comments to stand 0.3 per cent lower at 1.31 US dollars and 0.3 per cent weaker at 1.14 euros, not far off last week’s over two-year low against the single currency.Sterling has been under pressure in recent days amid worries over the UK economy and ahead of the Bank of England’s interest rate decision on Thursday, with another cut seen as being increasingly likely.Experts appear split on whether that cut will come in November or December, but the chances of a further reduction from 4 per cent currently have increased as inflation is thought to have peaked now at 3.8 per cent while the jobs market outlook looks more shaky.Meanwhile Britain’s long-term borrowing costs edged lower after the chancellor reiterated an “ironclad” commitment to her fiscal rules.Rachel Reeves refused to be drawn when asked if the government would break the manifesto pledge not to raise income tax, national insurance or VAT More

After warning that “easy answers” to Britain’s economic problems would be “irresponsible”, Rachel Reeves has refused to rule out raising income tax, VAT or National Insurance in her upcoming Budget.In a speech at Downing Street, the chancellor said politicians had become “addicted to short-term sticking plaster solutions” and hinted that “painful decisions” may be needed later this month to repair the public finances.Economists say tax rises are now “inevitable” if Labour is to balance the books. The Institute for Fiscal Studies has warned that avoiding income tax increases by targeting smaller levies could do “unnecessary economic damage”. But some economists and campaigners argue Labour should focus on fairer ways to raise funds – such as reforming wealth and property taxes or closing loopholes used by higher earners.Supporters of tax rises say honesty is the only route to stability, and that Reeves should prioritise long-term growth, investment and fairness – even if it means breaking manifesto pledges. Critics warn that hitting working people with higher bills would risk stalling recovery and betraying those already struggling with the cost of living.So, what should Rachel Reeves do in the upcoming Budget? Should she raise income tax to repair the public finances – or find alternative ways to plug the gap without burdening households further?We want to hear from you. Share your thoughts in the comments – we’ll feature the most compelling responses in the coming days. More

Rachel Reeves appeared to pave the way for significant tax increases in a major pre-Budget speech, as she said “easy answers” were off the table.It is the starkest warning yet from the chancellor, who has been signalling over the past few months that hard choices will have to be made.Many economists predict that substantial tax rises can be expected at the crunch fiscal event, as Ms Reeves looks to counteract the country’s ailing economic performance.Researchers from the Institute for Fiscal Studies (IFS) have found that the chancellor will need to find at least £22bn to make up a shortfall in the government’s finances, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.The pound fell further after the chancellor’s speech More

A former Conservative minister has accused Benjamin Netanyahu’s government of “murdering” a young Palestinian nurse – known as the ‘angel of mercy’ – in an extraordinary U-turn, having previously refused to criticise Israel over the death.Alistair Burt also accused Israel of conducting bogus inquiries into her death and that of other Palestinians involving the Israeli Defence Force (IDF) as a means of “covering up killings”.Mr Burt, who served as the Middle East minister in Theresa May’s Conservative administration, says he and her government were wrong not to “call out” Israel over the death of paramedic Razan al-Najjar, 21, in Palestinian protests on Gaza’s border with Israel in 2018.She was fatally shot going to the aid of a wounded demonstrator, prompting international outrage and posthumous fame for charismatic Najjar.A United Nations investigation found ‘reasonable grounds’ to believe she was shot deliberately by the Israeli Defence Force (IDF).When the incident occurred Mr Burt, then the Foreign Office Minister responsible for the Middle East, refused to criticise Israel, merely urging them to investigate the matter.Relatives of the volunteer paramedic mourn at the family house during her funeral in the town of Khan Younis, southern Gaza Strip More