UK Politics

Sir Keir Starmer has refused to rule out a freeze on income tax thresholds in next week’s Budget, as Labour struggles to fill a multi-billion-pound black hole in the nation’s finances. As the government scrambles to find the money from other sources, the prime minister did not rule out forcing many to pay more by continuing to freeze the point at which a higher rate kicks in – the so-called fiscal drag. Leading economists warned the move, which could see the government accused of breaking manifesto promises, risked causing more problems as it “may not calm markets”. It comes after the chancellor, Rachel Reeves, last week U-turned on plans for a broader increase in income tax, which spooked the markets. Sir Keir Starmer has refused to rule out hiking income tax for many by freezing the threshold at which workers pay a higher rate More

Sir Keir Starmer is set to face his final Prime Minister’s Questions (PMQs) opposite Kemi Badenoch ahead of Labour’s highly anticipated Budget next week.It comes as inflation fell to 3.6 per cent in October, in a boost to Rachel Reeves.The chancellor has vowed to cut the cost of living before she delivers her autumn Budget on 26 November. “It’s welcome that inflation has fallen… But I recognise that inflation, the cost of living, is still a big burden on families right across the country,” she noted.“And that’s why in the Budget next week, I’ll be taking targeted action to bring down inflation to address the cost of living”, she added.The PM and the chancellor have faced fierce scrutiny ahead of the Budget, with a raft of tax rises expected.Ms Reeves has been urged to tax the rich; she is widely expected to raise taxes to fill a multibillion-pound gap in her spending plans, but is reported to have ruled out a manifesto-busting income tax hike.Opposition politicians, think tanks and campaign groups have urged Ms Reeves to focus her plans on the wealthiest instead of pursuing broad-based tax rises.Green Party leader Zack Polanski said Ms Reeves’ statement “must be a cost-of-living Budget to slash people’s bills and make our country affordable again”.In a letter to the Chancellor, Mr Polanski and other leading Greens called for a wealth tax along with changes to capital gains tax to bring it in line with income tax. More

Labour’s autumn Budget is fast approaching, with dozens of potential measures floated in the build up to the major fiscal event.Chancellor Rachel Reeves may need to identify at least £22bn in new funds at the event as weak growth forecasts limit the government’s financial flexibility the Institute for Fiscal Studies (IFS) recently found.Economists have scrutinised how property is taxed as Ms Reeves considers her options for 26 November, with many pointing to ways more revenue could be raised from people’s homes. Ministers have insisted that any tax rises should be focused on those with the most wealth, as living standards in the UK continue to drop.One of the ways Treasury is understood to be looking to achieve this is through a new levy on high-value properties, which some have called a ‘mansion tax’.Different versions of how the tax could work have been floated, both with the potential to raise considerable sums for the exchequer.Most recently, the chancellor is understood to be considering a major overhaul to the council tax system, which would concentrate on higher-value homes.This would see all 2.4 million properties in the highest tax bands in England undergo revaluation, and an increase to the rate of the 310,000 most expensive properties (valued at over £1.5 million).The plan would raise around £600 million a year, per The Times, and result in a bill of an extra £2,000 a year for high-value home owners.David Fell from the estate agency Hamptons said: “I think the government is saying that the current council tax bandings are going to be used as a guide, but they are not enough on their own to value homes accurately. It sounds like it is looking to revalue about 2.4 million homes, with a new levy imposed on about 300,000 worth £1.5 million or more.”However, a simpler proposal also thought to be under consideration is to introduce a levy on owners of properties worth at least £2 million, with an annual charge of one per cent of the amount over that threshold. This would mean a £10,000 yearly fee for homeowners with a property worth £3 million, for instance.There are around 150,000 homes that fall into this price range, according to data from estate agent Knight Frank, the vast majority falling within London and the South East.Tom Bill, head of UK residential research at Knight Frank, said: “Thirteen years since the Liberal Democrats first proposed a Mansion Tax on properties over £2 million, the Treasury is reportedly considering the same plan.“Even the proposed threshold is identical, which tells you everything you need to know about house price inflation since 2012. Average values in prime central London have fallen by 8 per cent over the period.” More

French police will use large nets to stop small boats crossing the English Channel – despite warnings that such tactics could lead to deaths.France has been under mounting pressure from the UK to intercept migrant vessels at sea amid growing public anger over illegal migration, as Labour ramps up its efforts to deter people from making the crossings in a fresh crackdown.Emmanuel Macron’s government announced in July that it would change its maritime laws to allow for interceptions, but the plans have been delayed amid concerns that it could put lives at risk.However, it has now emerged that several French law enforcement officers have been equipped with so-called “arresting nets” up to 30m wide since the spring. A source familiar with the matter said they can be used in the “fight against illegal immigration”, as well as for tackling drug trafficking.Two sources from the French Ministry of the Interior told investigative newsroom Lighthouse and French newspaper Le Monde that nets will be used to carry out interceptions of small boats. One explained that five or six teams would patrol the coastline to intercept the boats, each with a maritime gendarmerie vessel to undertake the manoeuvres, and a French Navy vessel in case assistance is needed.A training manual from a company that supplied these nets, seen by Lighthouse Reports and Le Monde, states they allow one or more boats to be “neutralised simultaneously” by blocking their propellers.A view of small boats and outboard motors used by people thought to be migrants to cross the Channel from France at a warehouse facility in Dover, Kent More

Tony Blair’s think tank has upped its challenge over the Labour government’s energy policy after a new report warned that bills need to come down by £300.The Tony Blair Institute (TBI) has been critical of Ed Miliband’s push for net-zero policies after concerns were raised in a report by the Energy Crisis Commission.The commission, which brings together representatives from Energy UK, the Confederation of British Industry (CBI), Citizens Advice and National Energy Action, warned that the government must tackle high electricity prices and boost insulation in the upcoming Budget.The group said the switch to electrification will stall without meaningful action on lowering bills for both households and businesses.Electricity prices in the UK remain some of the highest in Europe after Russia’s invasion of Ukraine in 2022 sparked the energy crisis.Chancellor Rachel Reeves is facing pressure to reduce energy bills in her Budget More

Plans to reform the NHS have “chilling echoes” of the failures around HS2, MPs have said as they warn Labour is at “serious risk” of not meeting its pledge to cut waiting lists. The public accounts committee (PAC) warned that “poor practices” seen in the troubled project to build the high-speed rail link were being replicated in the health service and could lead to “wasted effort” to overhaul the NHS. HS2 has been described by politicians as an “appalling mess” after billions of pounds of taxpayers’ money were wasted amid years-long delays. The criticism came as MPs warned that initiatives to reduce waiting times for pre-planned care in England have not met their goals under “extremely variable” management of programmes.MPs on the cross-party committee highlighted how billions have been spent to transform diagnostics and surgical services, yet the pace of change is still “too slow”.The report also highlights plans to axe NHS England and absorb its functions into the Department of Health and Social Care, while reducing local health management teams, with the health department set to take responsibility for managing the initiatives to cut waiting lists. “Unless it gets a grip on the programmes, there is a serious risk that it will not meet its target for 92 per cent of the waiting list to be treated within 18 weeks by 2029,” MPs wrote. The public accounts committee is warning that billions have been spent on the NHS without a focus on making sure the investment pays off More

A Labour peer who fled from the Nazis as a child refugee has accused home secretary Shabana Mahmood of using “children as a weapon” under her plans to make Britain less attractive to asylum seekers. Less than 24 hours after Labour MPs described the proposals as “performative cruelty” and “immoral”, Lord Alf Dubs slammed the government’s proposals as “shabby”. Under sweeping measures unveiled on Monday, the home secretary said Britain could deport families, including those with children, if they refuse monetary incentives to leave. The Home Office has also claimed that children are being sent to the UK on small boats so their families can “exploit” laws by putting down roots, thereby blocking removal.Asked about this suggestion, Lord Dubs told BBC Radio 4’s Today programme: “I think that’s a theoretical statement – I just don’t accept that.” Home secretary Shabana Mahmood made a statement to the House of Commons on the asylum system More

The number of asylum claims in the UK has hit a record level, latest official data shows, as Shabana Mahmood plots a sweeping overhaul of the system to make the country less attractive to refugees.The home secretary’s radical package of measures, which would see the deportation of failed asylum seekers fast-tracked, has triggered a Labour rebellion with MPs accusing the minister of “ripping up the rights and protections” of people fleeing conflict.Other proposals would see people granted refugee status returned home if their country is deemed safe. They would also have to wait 20 years to apply to settle permanently in the UK, unlike the current five years.Families with children could also be forced to leave under measures to remove those with no right to be in the UK, while visas would no longer be granted for family reunion.In her statement to the Commons, Ms Mahmood said the asylum system was “out of control and unfair”, adding: “These measures are designed to tackle the pull factors that draw people to this country.”Migrants wade into the water in an attempt to board a small boat on the shoreline in northern France. Unveiling her asylum system reform, Shabana Mahmood said the UK’s generosity was a factor that draws people to the UK More