UK Politics

Rachel Reeves’s former boss has suggested the government does not have a “coherent” tax strategy, amid reports the chancellor is considering a mansion tax in next month’s Budget.Mervyn King, former governor of the Bank of England, told Sky News that problems within the system cannot be solved by “just adding another wealth tax to it”.It has been reported that the chancellor is considering a tax on high-value properties in next month’s Budget. Lord King ran the Bank of England – where Reeves spent an early part of her career – for 10 years from 2003 to 2013. Speaking to Sky News on Sunday, he said that there is “plenty of scope for reforming the tax system”. Pointing to the reports around a mansion tax, he went on: “Property taxes are [an] interaction between stamp duty, council tax, capital gains tax, inheritance tax. You don’t solve that problem by just adding another wealth tax to it.” He said that he would advise the chancellor to “set up a group of people who, in 12 months, look deeply at all aspects of the tax treatment – not just on property, but all kinds of other sorts of savings and wealth – to come up with a coherent view as to what it should look like. “And that doesn’t seem to happen. What happens is the [Office for Budget Responsibility] produces just before the Budget a number … and then they look round for what idea is almost written on the back of a fag packet about how you can raise an extra few billion here or few billion there. The chancellor is reportedly considering a tax on high-value properties More

Tax rises are on the table ahead of next month’s Budget, Rachel Reeves has indicated, amid mounting speculation about how the chancellor will fill a black hole of up to £50bn. Sending a strong signal that some form of tax hike could be on the table, the chancellor suggested that the government needs to ensure there is “sufficient headroom” above its spending plans, and that its fiscal rules are met.The chancellor has previously insisted that Labour’s manifesto commitment not to raise income tax, national insurance or VAT still “stands”, when questioned about how she will bridge the fiscal black hole in November.But asked just last week about claims that the Treasury was considering an income tax hike, Ms Reeves reportedly said she would “continue to support working people by keeping their taxes as low as possible”, but that she was still “going through the process” of putting together the Budget.Rachel Reeves is leading a UK delegation to Saudi Arabia in her pursuit of economic growth More

Health bosses are calling for an additional £3bn for the NHS to cover redundancy costs and strike impacts, and have warned that cost pressures are threatening the government’s plan to bring down waiting lists. The chief executives of the NHS Confederation and NHS Providers are asking for the cash ahead of next month’s Budget, and say that without the extra funding, progress on waiting time targets could be at risk.They say that there are three main costs that were not accounted for in the NHS budget for this financial year: redundancy costs, pressures due to strike action, and higher drug prices following interventions from Donald Trump. NHS bosses say cost pressures are hindering plans to cut waiting lists More

Rachel Reeves will head to Saudi Arabia on Monday as she looks to strengthen the UK’s economic relationship with the country, briefly leaving behind the growing speculation at home on the upcoming Autumn Budget.The chancellor will use the visit to Riyadh to try to make progress on a trade deal with the Gulf Co-operation Council (GCC), meeting senior Saudi royals, US administration figures and global business chiefs.The Treasury hope an agreement struck with the GCC, which also includes United Arab Emirates, Qatar, Oman, Kuwait and Bahrain, could add £1.6 billion to the UK economy and contribute an additional £600 million to UK workers’ annual wages in the long term.It comes less than a month before Ms Reeves will announce her potentially difficult Budget, with the chancellor thought to be under pressure to break a pre-election Labour pledged not to increase income tax or National Insurance. On the eve of her trip to Saudi Arabia, Ms Reeves said: “I am taking Britain’s offer of stability, regulatory agility and world-class expertise directly to one of the world’s most important trade and investment hubs, making that case in our national interest.“After our landmark deals with the US, EU and India, we’re determined to build on that momentum by going further and faster on partnerships that create good jobs, boost business and bring investment into communities across the UK – from the North East to the Oxford-Cambridge corridor.”The chancellor will use the visit to Riyadh to try to make progress on a trade deal with the Gulf Co-operation Council (GCC). More

Keir Starmer is being urged to stand up to the left of his party as a furious battle rages within the government over whether to impose a mansion tax in next month’s Budget – which some fear could severely impact the housing market.Rachel Reeves is understood to be seriously considering the proposal for her 26 November budget as she attempts to not only fill a £40 billion black hole in her finances but find more than £10bn of headroom to deal with future shocks.But she and the prime minister are being warned that with the flight of millionaires from the UK already hitting the economy, the move would have disastrous effects.Ministers want Sir Keir to step in with one source saying: “It is patriotism versus prejudice. What is good for the country versus a hatred of success and wealth.”Keir Starmer is being urged by ministers not to agree to a mansion tax More

Ireland’s president for the next seven years is an independent lawmaker who has long spoken in support of Palestinians and has been vocal about her distrust of European Union policies.Left-wing independent Catherine Connolly, 68, secured 63% of votes in a landslide election victory on Saturday, comfortably defeating her center-right rival, former Cabinet minister Heather Humphreys.The politician won after Ireland’s left-leaning opposition parties, including Sinn Féin, united to back her, and she is expected to be a voice unafraid to challenge Ireland’s center-right government.While Irish presidents hold a largely ceremonial role and do not have executive powers like shaping laws, they represent Ireland on the world stage and are often seen as a unifying voice on major issues. Connolly will succeed Michael D. Higgins, a popular president who has been vocal about the war in Gaza and NATO spending, among other things.Connolly vowed Saturday to be “an inclusive president” who would champion diversity and be “a voice for peace.”A look at Connolly’s background and views: From independent lawmaker to president Connolly, a mother to two sons, has served three terms as an independent lawmaker for Galway West since she was elected to Parliament in 2016. In 2020 she became the first woman to be the deputy speaker of Parliament’s lower house. She grew up in social housing in a suburb of Galway in western Ireland as one of 14 children. Her mother died when she was nine years old, and her father worked at a local shipyard. As a student, she volunteered with a Catholic organization to help older people and took on other community roles.She has degrees in clinical psychology and law, and was a lawyer before she entered politics. Connolly began her political career when she was elected as a Labour Party member of Galway City Council in 1999. Five years later, she was elected mayor of the city of Galway. She left Labour in 2007. Outspoken views against Israel and the EU Connolly has not shied from criticizing Israel over the war in Gaza. In September she drew fire for calling Hamas “part of the fabric of the Palestinian people.” Prime Minister Micheál Martin criticized her for appearing reluctant to condemn the militant group’s actions in the Oct. 7, 2023, attack on Israel that ignited the two-year Israel-Hamas war in Gaza. She later maintained that she “utterly condemned” Hamas’ actions, while also criticizing Israel for carrying out what she called a genocide in Gaza.On Europe, she has repeatedly criticized the European Union for its growing “militarization” following Russia’s full-scale invasion of Ukraine, drawn comparisons with Nazi-era armament in the 1930s, and questioned NATO expansion in the east. Critics have said those comments, along with others critical of the U.S. and U.K., risk alienating Ireland’s allies. Connolly has also stressed she wants to defend Ireland’s tradition of military neutrality, in the face of calls for the country to contribute more to European defense. During her campaign, she said there should be a referendum on a government plan to remove the “triple lock” — the conditions for the deployment of Irish soldiers on international missions.Connolly’s outspoken style and message of social equality and inclusivity have appealed to many, especially younger voters. In televised presidential debates, she has said she will respect the limits of the office — though she also said in her acceptance speech that she would speak “when it’s necessary” as president.“Together, we can shape a new republic that values everybody, that values and champions diversity and that takes confidence in our own identity, our Irish language, our English language, and new people who have come to our country,” she said Saturday at Dublin Castle. More

Wes Streeting has claimed Nigel Farage’s “deafening silence” over the “racist” remarks made by his fellow Reform MP Sarah Pochin “says it all”.The health secretary went on a furious attack in the wake of Ms Pochin telling Talk TV that it “drives me mad seeing adverts full of black and Asian people”.Ms Pochin has since apologised, but Mr Streeting said: “She’s only sorry that she’s been called out and she said the quiet bit out loud.” He added: “The only way we are going to defeat this racism is to call it out and confront it for what it is.”The Tories’ shadow home secretary Chris Philp refused to describe Ms Pochin as racist three times when pressed on the issue on the BBC. This follows controversial remarks made by his colleague Katie Lam, suggesting legal migrants should be deported.Sarah Pochin complained about adverts full of black and Asian people More

Wes Streeting appeared to put further pressure on Keir Starmer’s leadership after Labour’s defeat in the Caerphilly by-election last Thursday.The health secretary told the Sunday Times that the defeat in the Welsh Senedd election was the prime minister’s “Hartlepool [by-election] moment” in a significant parallel to a defeat which almost saw Sir Keir quit as Labour leader.Although he insisted that the prime minister can bounce back, Mr Streeting’s comparison has added fire to speculation over Sir Keir’s leadership to some in the party.With Labour now polling below 20 per cent in a number of different polls, discussions about ousting him among MPs and ministers are heating up.It comes as Labour members elected Lucy Powell, who Sir Keir sacked just a few weeks ago as a minister, to be his deputy leader after rejecting his preferred choice, education secretary Bridget Phillipson.Health Secretary Wes Streeting (Danny Lawson/PA) More