UK

Rachel Reeves has been dealt a blow by the Budget watchdog as it slashes estimates on a key economic indicator for the UK, raising fears the chancellor will need to hike taxes.On the eve of the Labour Party conference in Liverpool, The Independent can reveal that the chancellor has been told the Office for Budget Responsibility (OBR) will substantially reduce its estimates for productivity in the economy – which will lead to even lower economic growth. It means Ms Reeves will need to find even more money to balance the books, just weeks before her crucial Budget in November, putting further strain on the manifesto commitment not to raise one of the three big taxes – income tax, VAT or national insurance contributions from employees.She will also be left with a Budget deficit in 2030 which, economists warn, mean she has to raise taxes even higher than previously thought.Rachel Reeves is under severe pressure to balance the books but not raise taxes for ‘working people’ More

Members of the House of Lords are set to ignore warnings and push to attempt to kill off Kim Leadbeater’s assisted dying bill.Peers opposed to the controversial legislation which narrowly passed in the Commons have been emboldened by a new poll which suggests that 70 per cent think they have the right to vote it down.The move comes despite the Bill’s sponsor in the Lords, Labour peer Lord Falconer, warning it would be wrong for the unelected upper chamber to overrule the will of the democratically elected chamber.In an interview with the BBC, Lord Falconer was asked whether the role of the Lords was to “ultimately uphold something that the directly elected members of the Commons have decided to go ahead with”. He replied “That’s correct”.Kim Leadbeater introduced the assisted dying Bill to the House of Commons (Jonathan Brady/PA) More

Rachel Reeves is pushing for a more ambitious deal to unpick the harm Brexit did to the prospects of young people in the UK.The chancellor has revealed she wants to have “an ambitious youth experience scheme” to allow mobility for under-30s in and out of the UK, a move which she claimed would reduce the need for tax rises in the forthcoming budget. It would mean young people from the UK could go to live and work in the EU on temporary visas while young people from the EU would enjoy the same privilege the other direction.Chancellor of the Exchequer Rachel Reeves (right) speaking at the Global Progress Action Summit at Methodist Central Hall in Westminster (Stefan Rousseau/PA) More

A union leader is warning the government that there is widespread disappointment at Labour’s “failure” to deliver the scale and speed of change it promised at the general election.Matt Wrack, general secretary of the NASUWT teachers’ union, said there was frustration which was rooted in “decades of neglect” of communities hollowed out by deindustrialisation.He said: “The so-called ‘left behind’ communities are often talked about, but little is actually done to meet their hopes and their needs. In this bleak landscape, the far right stokes division — blaming migrants and refugees for the failings of the government and the economy.“Ignoring this wake-up call is currently likely to deliver further major blows to Labour at elections next May. The prospect of Reform in Government in some form is now not an unreasonable one.Matt Wrack More

The government must make sure that homes are built in the “right” parts of England as it looks to meet its ambitious housebuilding targets, a think tank has urged.The Resolution Foundation says the government will need to hit and sustain its target of creating 1.5 million new homes over this parliament and the next to alleviate mounting pressures on the private rental sector and temporary accommodation.The authors argued that the government faces a trade-off on whether to focus efforts on areas that are least affordable or those that have the greatest productivity potential.The think tank said that while some places, such as London, Oxford and Cambridge, “tick both boxes”, areas such as Greater Manchester and Birmingham with “huge productivity potential” hold the key to boosting economic growth.It argued that these areas should be prioritised over “pricier areas with low productivity potential”.The foundation argued: “These major cities may be relatively affordable now, but housing demand and cost pressures will increase as productivity grows if housing stock doesn’t keep pace.”Areas such as Greater Manchester hold the key to boosting economic growth, according to the think tank More

Labour’s new chair has claimed the party’s MPs are frustrated with Andy Burnham’s leadership manoeuvrings ahead of the party’s annual conference this weekend. As she called for unity, Anna Turley said Labour MPs questioned the Greater Manchester mayor’s “motivations” a day after Keir Starmer attacked his economic policies and compared him to Liz Truss. Chancellor Rachel Reeves also hit out at his fiscal policy suggestions late on Friday.The Labour infighting, which has been bubbling for weeks, erupted in public after Mr Burnham said Labour MPs had privately urged him to challenge Sir Keir Starmer for the party leadership. Speculation about Mr Starmer’s future, as his party trails Nigel Farage’s Reform UK in the polls and is expected to have to raise taxes in November’s Budget, is expected to dominate the event in Liverpool. Prime minister Sir Keir Starmer, left, pictured with mayor of Greater Manchester Andy Burnham More

Kemi Badenoch is expected to reveal that the Tories will support withdrawing from the European Convention on Human Rights (ECHR) after a review she commissioned recommended it.The Independent has seen a copy of the draft conclusions to a review by former justice minister Lord Wolfson of Tredegar, which argues that the ECHR has gone “well beyond” the original intent of the convention in treating it as “a living document”.The Tory peer argued the convention has put unacceptable “constraints” on governments and domestic courts, and made anticipating rulings “unpredictable”.Kemi Badenoch is expected to commit the Tories to ditching the ECHR More

Digital identity cards will be mandatory for every worker in the UK under new plans announced by the prime minister on Friday.The card is the Labour government’s latest attempt to crack down on illegal migration, designed to make it harder for people without the right to work to find employment.Sir Keir said the plans will ensure the country’s “borders are more secure,” explaining: “You will not be able to work in the United Kingdom if you do not have digital ID. It’s as simple as that.”The government has confirmed it intends to fully roll out the cards before the end of this Parliament in 2029.It would verify an individual’s work in the UK, similar to the system in use in Estonia, where citizens are given unique identification numbers.A June report from think tank Labour Together mocked up what the Brit card could look like on a smartphone More