UK

After warning that “easy answers” to Britain’s economic problems would be “irresponsible”, Rachel Reeves has refused to rule out raising income tax, VAT or National Insurance in her upcoming Budget.In a speech at Downing Street, the chancellor said politicians had become “addicted to short-term sticking plaster solutions” and hinted that “painful decisions” may be needed later this month to repair the public finances.Economists say tax rises are now “inevitable” if Labour is to balance the books. The Institute for Fiscal Studies has warned that avoiding income tax increases by targeting smaller levies could do “unnecessary economic damage”. But some economists and campaigners argue Labour should focus on fairer ways to raise funds – such as reforming wealth and property taxes or closing loopholes used by higher earners.Supporters of tax rises say honesty is the only route to stability, and that Reeves should prioritise long-term growth, investment and fairness – even if it means breaking manifesto pledges. Critics warn that hitting working people with higher bills would risk stalling recovery and betraying those already struggling with the cost of living.So, what should Rachel Reeves do in the upcoming Budget? Should she raise income tax to repair the public finances – or find alternative ways to plug the gap without burdening households further?We want to hear from you. Share your thoughts in the comments – we’ll feature the most compelling responses in the coming days. More

Rachel Reeves appeared to pave the way for significant tax increases in a major pre-Budget speech, as she said “easy answers” were off the table.It is the starkest warning yet from the chancellor, who has been signalling over the past few months that hard choices will have to be made.Many economists predict that substantial tax rises can be expected at the crunch fiscal event, as Ms Reeves looks to counteract the country’s ailing economic performance.Researchers from the Institute for Fiscal Studies (IFS) have found that the chancellor will need to find at least £22bn to make up a shortfall in the government’s finances, as rising borrowing costs and weak growth forecasts drastically reduce her room for manoeuvre.The pound fell further after the chancellor’s speech More

A former Conservative minister has accused Benjamin Netanyahu’s government of “murdering” a young Palestinian nurse – known as the ‘angel of mercy’ – in an extraordinary U-turn, having previously refused to criticise Israel over the death.Alistair Burt also accused Israel of conducting bogus inquiries into her death and that of other Palestinians involving the Israeli Defence Force (IDF) as a means of “covering up killings”.Mr Burt, who served as the Middle East minister in Theresa May’s Conservative administration, says he and her government were wrong not to “call out” Israel over the death of paramedic Razan al-Najjar, 21, in Palestinian protests on Gaza’s border with Israel in 2018.She was fatally shot going to the aid of a wounded demonstrator, prompting international outrage and posthumous fame for charismatic Najjar.A United Nations investigation found ‘reasonable grounds’ to believe she was shot deliberately by the Israeli Defence Force (IDF).When the incident occurred Mr Burt, then the Foreign Office Minister responsible for the Middle East, refused to criticise Israel, merely urging them to investigate the matter.Relatives of the volunteer paramedic mourn at the family house during her funeral in the town of Khan Younis, southern Gaza Strip More

Watch as Rachel Reeves set out her economic priorities in a pre-Budget speech on Tuesday (4 November).The Chancellor refused to rule out hiking income tax, VAT or National Insurance to plug a hole in the public finances as she was asked to address speculation that she will break Labour’s manifesto commitments on tax rises.During the speech in Downing Street, Ms Reeves hinted she will take painful decisions later this month as she said “easy answers” to fix economic issues would be “irresponsible”.When asked whether she would raise taxes for working people, Ms Reeves said: “I will set out the individual policies of the budget until the 26th of November. That’s not what today is about. Today is about setting the context up for that budget.”Speculation has mounted about the possibility that the chancellor will break one of Labour’s main manifesto pledges on tax.In their 2024 manifesto, the party promised not to raise any of the main taxes.It vowed not to “increase taxes on working people”, meaning they would not raise National Insurance, the basic, higher, or additional rates of Income Tax, or VAT.On Monday (3 November), Sir Keir Starmer said it would be a “Labour budget based on Labour values”, though he added that there would be “tough but fair decisions”.Speaking at a party meeting in Westminster, he told Labour MPs that the long-term impact of Conservative austerity and a botched Brexit deal “is worse than even we feared”. More

Tax rises are “inevitable”, a leading think tank has warned hours before Rachel Reeves sets out her Budget priorities.The chancellor will use a speech today to pave the way for sweeping tax rises expected to be announced at the end of the month,pledging to make “important choices that will shape our economy for years to come”. In a major pre-Budget address, she will set out her three priorities for the fiscal event – cutting hospital waiting lists, the national debt and the cost of living. The Resolution Foundation has said that there was a way to implement the “inevitable” tax rises that “boosts confidence in the economy and the public finances, while also reducing child poverty and the cost of living”.Ms Reeves is expected to promise a Budget “led by this government’s values, of fairness and opportunity and focused squarely on the priorities of the British people”. Acknowledging growing speculation over possible tax rises, she will argue that it is important the public understands the circumstances facing the country. In its pre-Budget review, the Resolution Foundation have said the chancellor should aim to double her fiscal headroom in her statement to the Commons on 26 November. This would result in the buffer against unexpected changes in economic headwinds increasing to £20bn, but the think tank acknowledged that an increase of £15bn was “perhaps” more realistic.“This would send a clear message to markets that she is serious about fixing the public finances, which in turn should reduce medium-term borrowing costs and make future fiscal events less fraught,” the report said.Tax-raising measures could include freezing personal thresholds, potentially raising £7.5bn if done for two years, according to the foundation, alongside “pro-growth” reforms to the tax system, targeting wealth, motoring and property taxes.“So, although tax rises are inevitable, there is a way to do them which boosts confidence in the economy and the public finances, while also reducing child poverty and the cost of living.” Alongside this, it said that ministers should also consider new targeted policy measures to help with the cost-of-living crisis, such as help with energy bills. The chancellor’s address is set to come after weeks of expectation management and growing reports of planned tax rises as she scrambles to fill a black hole of up to £50bn in the public finances to balance the books and keep to her golden rule of funding day-to-day spending with tax receipts.( More

Sir Keir Starmer had been briefed on details of Peter Mandelson’s relationship with paedophile financier Jeffrey Epstein before making him US ambassador, a select committee heard.The Prime Minister was said to have received a Cabinet Office report referencing the “reputational risks” of appointing Lord Mandelson, which “included his previous resignations as a minister” and “his prior relationships with Jeffrey Epstein”.“This section included direct extracts from media reporting and notes of a general reputational risk,” Cabinet Secretary Sir Chris Wormald told the Foreign Affairs Committee on Monday.Sir Chris indicated that the judgment about whether to make the appointment rested with the Prime Minister.The committee heard that Sir Keir Starmer (right) was made aware of the issues around Lord Mandelson’s (left) appointment More

Almost 700 health workers and LGBT+ rights campaigners from 40 countries have written to Sir Keir Starmer, asking him to protect the UK’s contribution to the global fight against HIV. The government is currently deciding how much money to allocate to HIV prevention efforts around the world, amid deep cuts to overseas aid. The letter’s signatories are asking the prime minister to “fill the gaps left by the US retreat”, as Donald Trump axed the vast majority of the country’s contributions to global health when he took office for the second time. The US president’s emergency plan for Aids relief (Pepfar) was the world’s largest funder of HIV programmes – and while it has been partially protected, it still faces major restrictions.“The recent proposal by the US Congress to reinstate some funding for global HIV is welcome, but this money – if it is confirmed – will not make its way to many groups at higher risk from the virus, thanks to a discriminatory and unscientific ban on so-called DEI [diversity, equity and inclusion] programmes,” the letter said.The US continues to fund preventative medicines and support for pregnant and breastfeeding women, but not for other vulnerable groups, including gay men and transgender communities. “This will create a two-tier response to the pandemic where only those deemed worthy by the US government will receive US-funded medicines to protect themselves,” the letter said. It was signed by 686 people from global South countries representing public health and LGBT+ activist organisations. While more than 300 signed their names, another half endorsed the letter anonymously because of safety concerns due to harsh and discriminatory anti-LGBT+ laws in their countries. The world’s other largest funder of HIV care, the Global Fund to Fight Aids, Tuberculosis and Malaria, which pays for a quarter of all international programmes, is currently raising funds for the next three years. The UK is co-hosting its fundraising event on 21 November this year in South Africa, and has always been one of the fund’s biggest donors. But it is nevertheless widely expected to cut its contribution by as much as £150m – risking an estimated 255,000 lives. “When Aids erupted in your country, some elements in the media and politics tried to separate people who had acquired the virus into those ‘deserving’ or ‘undeserving’ of compassion and care,” the letter read. “Activists worked hard, and still do, to fight that terrible narrative, which not only stigmatises and shames people living with HIV, but undermines efforts to drive down transmissions.“In addition, the UK has an extra duty to protect the rights of LGBTQ+ people globally, given your historic role in creating the anti-homosexuality laws that still exist in many countries around the world, and which make it hard – often impossible – for the LGBTQ+ community to access lifesaving services, unless they are provided by international donors.”This article was produced as part of The Independent’s Rethinking Global Aid project More