UK Politics

A lawyer for Jimmy Savile’s victims has condemned the use of the sexual predator’s name in political debates over the Online Safety Act. Labour ministers have accused Nigel Farage and Reform UK of being “on the side of predators like Savile”, due to their commitment to ditch the law and its regulations, should they come into power. The new rules, which came into effect on 25 July, include introducing age verification for adult websites, removal of material that promotes suicide, eating disorders and self-harm, and preventing strangers from messaging children directly. Alan Collins, the head of the abuse team at Hugh James Solicitors, who has represented many of the disgraced BBC presenter’s victims, said it was “disturbing” to see Jess Philips, the safeguarding minister, “play the Savile name”. Jess Phillips said Mr Farage’s opposition to online safety laws would enable ‘modern-day Jimmy Saviles’ More

Rachel Reeves has been warned by top economists that she faces an “impossible trilemma” ahead of the autumn budget and must raise taxes or tear up her flagship borrowing rules to fill a £41bn black hole left by Labour U-turns, higher borrowing and sluggish economic growth. The National Institute of Economic and Social Research (NIESR) – a leading economic think tank – said the chancellor could also look at spending cuts as a way to raise the money needed by 2029-30 to remedy a £41.2bn shortfall on her “stability rule”. But ministers have already squeezed significant savings out of their departments in cuts that were unveiled at last month’s spending review, meaning there is now a mounting expectation that the chancellor will be forced to raise taxes instead. In the wake of the warnings, there are growing questions over how the government will raise the money to fill the gap in the public finances, given Labour’s manifesto pledge not to raise taxes on “working people” leaves the chancellor with a limited number of workable options. Here, The Independent takes a look at a number of tax rises that the government could rely on to raise funds and balance the books. Tax threshold freezes The Treasury’s most likely move would be to extend the freeze on income tax thresholds. This means that as wages rise with inflation, over the years workers are dragged into higher tax bands and end up paying more. A freeze on the threshold at which the higher 45 per cent tax rate is paid was one of the options suggested by Ms Rayner in her leaked memo. But there is growing speculation the government could extend the freeze across all tax brackets. Sir Keir has left the door open for such a move, refusing to rule it out when pressed on it at PMQs last month. While he gave an unequivocal answer ruling out increasing VAT, income tax or national insurance, he refused to do so when it came to tax threshold freezes. It’s a stealth tax, the impacts of which are not felt immediately, meaning it is normally better received among the general public compared with a direct hit to businesses or pay slips. But, if the freeze were extended to the end of the parliament, it could also bring in billions for the Treasury as earnings rise. The freeze, which is already planned to last until 2028, is expected to drag around two million workers into higher tax bands.Wealth tax There have been calls from Labour MPs on the left of the party to introduce a wealth tax, calls which have only grown in the wake of the government’s £5bn welfare U-turn. Rachael Maskell, the architect of the rebellion which forced the government into shelving key pillars of the bill, demanded the government increase taxes on the very richest to pay for the climbdown. Piling even more pressure on the Treasury last month, former Labour shadow chancellor Anneliese Dodds also urged the Treasury should consider such a tax. Former shadow chancellor Anneliese Dodds is among those who have urged the government to consider a wealth tax More

There is growing confusion over whether the UK’s migrant returns deal with France leaves open a loophole which would allow for human rights claims to hold up deportations. The “one-in, one out” deal coming into effect on Wednesday will see migrants ineligible to stay in the UK sent back across the Channel, in exchange for taking those who have links to Britain.But the terms of the treaty indicated that migrants who had arrived in the UK via small boat could frustrate attempts to deport them to France, as the agreement contains a clause that says in order for people to be returned to France the UK must confirm they do not have an “outstanding human rights claim”.People thought to be migrants scramble to board a small boat near Wimereux in France in July More

Rachel Reeves must raise taxes or tear up her flagship borrowing rules to fill a £41bn black hole left by Labour U-turns, higher borrowing and sluggish economic growth, top economists have warned.The National Institute of Economic and Social Research (NIESR) – a leading economic think tank – said the chancellor could also look at spending cuts in the autumn Budget as a way to raise the money needed by 2029-30 to remedy a £41.2bn shortfall on her “stability rule”.Its report said the chancellor has been left with an “impossible trilemma” of trying to meet her fiscal rules while fulfilling spending commitments and upholding a manifesto pledge not to raise taxes on working people.Rachel Reeves is facing pressure to introduce a wealth tax on the rich More

A Labour MP has helped to create an AI politician – encouraging his constituents to “embrace” an artificial intelligence version of himself. Mark Sewards, the Labour MP for Leeds South West and Morley, said it was “the UK’s first virtual MP”. In a message urging local residents to “give AI Mark a try”, the MP, who was elected for the first time last year, said the “AI revolution is happening and we must embrace it or be left behind.”Mr Sewards said he worked with the company Neural Voice, based in his constituency, on the AI MP. Neural Voice stood a candidate, AI Steve, at the last general election, suggesting he could put trust back into politics, with constituents proposing and voting on what AI Steve should do as a local MP, with the chair of the firm Steve Endacott appearing in parliament to enact what they decided.AI Mark More

Sir Keir Starmer and Yvette Cooper have piled pressure on the police to reveal more details relating to suspects amid a growing row over an alleged lack of transparency around investigations. The prime minister and home secretary said all authorities should be “as transparent as possible” about those who have been charged with crimes such as rape and sexual assault, in comments that will be seen at odds with the stance of many police forces. It comes after Reform UK leader Nigel Farage said police forces should release information including immigration status about people who are charged with crimes, claiming Warwickshire Police have been part of a “cover-up” oover details of an alleged rape of a 12-year-old girl in Nuneaton in July. Asked about the demands on Monday, the prime minister’s official spokesperson said: “All authorities, from the police to central government, should be as transparent as possible for handling these cases”. The PM’s spokesperson said the police should be ‘as transparent as possible’ More

Michael Gove has given a withering assessment of Nigel Farage’s election chances, saying the Reform leader is not ready to be prime minister and – still won’t be in four years’ time. The senior Tory, a cabinet minister for many years during the Conservative government, praised the former Ukip leader, saying he admired “his skills as a communicator”. But he said: “I don’t believe that he is a plausible prime minister”. He added: “Because if at this stage you’re saying that Reform should be the government – I know we’re four years away – he doesn’t have the team, or the policies or programme that would make me believe that he would govern effectively.” Reform UK leader Nigel Farage (Stefan Rousseau/PA) More

Around 300,000 more savers will have to pay tax on their savings interest than five years ago, stark new figures reveal. The number has jumped from 3.06 million in 2020–21 to 3.35 million this year, according to new information obtained under Freedom of Information laws.Harriet Guevara, from the Nottingham Building Society, which obtained the statistics, said they highlighted “a growing and often hidden tax burden on ordinary savers”. Savers are being hit, experts warn (Lucy North/PA)The increase was largely driven by fiscal drag – when frozen thresholds pull more people into higher tax bands because of inflation.Government rules allow most people to earn some interest from their savings without paying tax. They allow savers to use their tax-free personal allowance to earn interest without paying tax, if they have not already used this on their wages, a pension or other income.There is also a “savers’ allowance” which can allow up to £5,000-worth of interest before tax is paid. But experts warn that the system is complicated, which is why the ability to save in tax-efficient structures such as Individual Savings Accounts (ISAs) is valuable. Ms Guevara said the government should be doing more to reward and protect savers.She said: “We support the government’s ambition to encourage investment and grow the economy, but limiting savers’ access to savings vehicles like the cash ISA is the wrong way to do it. Reform should focus on simplifying and strengthening it, not introducing new barriers or caps.“At Nottingham Building Society, we’re seeing this shift play out in real time. More than half of our fixed-rate ISA customers used the full £20,000 allowance last year, rising to 65% among our branch savers. These are not high-net-worth investors, but everyday people saving for a deposit, building a retirement fund, or creating a financial safety net.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 websiteADVERTISEMENT“Nottingham Building Society is calling for the government’s upcoming consultation on cash ISAs to consider the long-term impact on household finances and savings culture, and to ensure the system continues to provide meaningful protection for basic-rate savers, many of whom now find themselves unexpectedly dragged into paying tax on their interest income.”A Treasury spokesperson said: “We are protecting the £20,000 tax-free yearly ISA savings limit, meaning the vast majority of people will continue to pay no tax on their savings. “In addition, we are protecting payslips for working people by keeping our promise to not raise the basic, higher or additional rates of Income Tax, employee National Insurance or VAT. “ More