UK Politics

Workers’ pensions could shrink by tens of thousands of pounds if the chancellor introduces national insurance on salary sacrifice schemes in next week’s Budget, a survey suggests.Research by the Confederation of British Industry (CBI) suggests businesses would mostly not be able to absorb the costs if tax liabilities are changed in the Autumn Budget.Salary sacrifice schemes allow workers to give up a portion of their pay for a different benefit, like pension contributions. The chancellor is said to be preparing to cap the amount of someone’s salary that can be sacrificed to £2,000 a year. After that, national insurance contributions would be incurred.But nearly three-quarters of UK firms agreed they would not increase their employer contributions to offset the new liability if such a measure came in. Just 13 per cent of respondents said they would.Pensions UK and the Federation of Small Businesses (FSB) have sent a joint letter to Chancellor Rachel Reeves, urging her not to curb salary sacrifice schemes or wider pensions tax relief More

A poll of Labour members has confirmed that there is an appetite to replace Sir Keir Starmer, with Andy Burnham as the favourite choice to succeed him.According to a poll of 1,013 Labour members by Survation for LabourList, Mr Burnham would be favoured over Sir Keir by 58 per cent to 32 per cent.Norwich South MP Clive Lewis last week offered to give up his seat so Mr Burnham could run for parliament to allow him to become leader.Former deputy prime minister Angela Rayner also has a strong lead of 19 points over the PM by 52 per cent to 33 per cent despite being forced to resign over a failure to pay £40,000 of stamp duty.Energy secretary Ed Miliband, who lost the 2015 election as Labour leader, is also preferred to Sir Keir by four points with 44 per cent to 40 per cent.And health secretary Wes Streeting, who was at the centre of accusations recently from Downing Street that he was plotting to overthrow the PM, would win by 33 per cent to 31 per cent.Andy Burnham is the favoured replacement for Keir Starmer by Labour members More

A freeze in rail fares will top a series of measures in next week’s Budget to tackle the cost of living as Rachel Reeves seeks to offer some hope amid the economic gloom.The chancellor hopes that a series of measures to help out “working people” will offset any backlash from a number of tax rises she is believed to be planning.The announcement on rail fares will save an estimated £300 next year for commuters who use the most expensive routes and follows Labour’s decision to renationalise the railway network.The moves come amid speculation about tax rises on property, banks and gambling and concerns that the chancellor will need to fill a black hole in the government finances of at least £20bn.The rail freeze also comes amid concerns that fuel duty could rise for the first time in 15 years, with FairFuel campaigners set to deliver a 152,000-signature petition to No 10 and No 11 on Tuesday.Rail fares are set to freeze More

Families of the Covid bereaved have lashed out at Boris Johnson for being “beyond contempt” after he used his column in a national newspaper to lampoon those “still wrangling on” about the deaths in the pandemic.The disgraced former prime minister has refused to apologise for extra Covid deaths he has been accused of causing by delaying taking action, but instead launched a blistering attack on the pandemic inquiry itself.Mr Johnson and other senior Tory ministers at the time were damned in the Covid inquiry report chaired by former Appeal Court judge Baroness Heather Hallett for the “toxic and chaotic” culture in Downing Street during the pandemic.She concluded that unnecessary delays in locking down caused an extra 23,000 deaths, and families of those who died have said they are considering taking legal action against Mr Johnson.Boris Johnson has attacked the inquiry he himself set up More

A row has broken out over an attempt by peers to push through what is being described as a “wrecking amendment” to legislation decriminalising late abortions.A cross party group of peers have laid an amendment to ban sex selective abortions for the first time in UK history and ensure that they remain illegal. The issue is due to come up when peers continue the committee stage of the Crime and Policing Bill which is set to resume this week.Supporters of the original amendment to the bill brought by Gower Labour MP Tonia Antoniazzi believe the proposal to change it in the Lords is an attempt to wreck decriminalisation which was overwhelmingly backed by MPs in the Commons.Currently abortions are allowed up to 24 weeks in England and Wales but women having later terminations can be prosecuted. Ms Antoniazzi’s amendment would prevent legal action but critics claim it is a back door way of allowing abortions up to a full term.Campaigners supporting decriminalisation of abortions More

As Rachel Reeves prepares for her crunch Autumn Budget, speculation over where she might turn for new revenue has reached fever pitch.The chancellor has warned there will be no “easy choices” on 26 November, after the Institute for Fiscal Studies (IFS) estimated she needs to find at least £22bn to stabilise the public finances.Reluctance from No 10 in recent weeks to re-commit to Labour’s manifesto promise not to raise taxes on “working people” has only deepened uncertainty.With the three largest revenue sources understood to be off the table, it has been widely speculated that the chancellor could opt for a series of smaller adjustments – to pensions, inheritance, and particularly property – a potential source of billions in untapped tax revenue.Several leading economists have warned that this piecemeal approach could also prevent the overhaul many believe is needed in the UK’s “complex” tax system. Tax expert Dan Neidle, giving evidence to the Treasury committee, urged Ms Reeves not to pick from a “Scrabble bag” of small-scale tax tweaks.Speculation that the Chancellor could remove the 5% VAT on energy bills in her Budget statement next week has been mounting (Leon Neal/PA) More

Senior Labour MPs have demanded Rachel Reeves’ U-turn on her controversial foreign aid cuts by providing a roadmap to restoring the budget to save millions from humanitarian crises. Key figures, including international development committee chair Sarah Champion and business committee chair Liam Byrne, are calling for Ms Reeves to commit billions more to the budget she slashed to pay for more defence spending last year.In a letter to the chancellor, who is to unveil her make-or-break Budget on Wednesday, they insist she must chart a path back to restoring the foreign aid budget from 0.3 per cent of gross national income (GNI)– the lowest level in 25 years – to 0.7 per cent to ensure the UK meets its international obligations.It comes amid concerns that Ms Reeves may try to further cut spending as she struggles to balance the country’s finances and fill a £20bn black hole.International development committee chairwoman Sarah Champion is among those calling for a U-turn on foreign aid cuts More

The Defence Secretary John Healey has admitted he did not pay enough council tax on his London home. Mr Healey underpaid around £1,500 in tax that was due under the second home council tax surcharge introduced in April, The Telegraph reported.He should have paid around £3,000 a year to Westminster City Council for a home that he rents but only paid half this amount and rectified the mistake after being approached about it on Thursday, according to the newspaper.He put this down to an “administrative error” by the local authority, which has since acknowledged it had issued an incorrect tax notice and apologised for the oversight.A spokesperson for the Defence Secretary said the error lay with the local authority and that Mr Healey had “fulfilled all his obligations” by declaring the flat a second home on the relevant paperwork when he moved in.The council tax owed, including the second homes surcharge, has now been paid in full.MPs representing constituencies outside London can claim for the cost of renting a second home, including council tax and other related expenses.A spokesperson for the Defence Secretary said the error lay with the local authority, which has since apologised More