UK

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

Individuals with a history of violence or domestic abuse will now be barred from owning firearms under stringent new regulations introduced this week. The guidance, issued on Tuesday, directly addresses concerns from coroners and campaigners following recent fatal shootings in Woodmancote, Sussex, and Keyham, near Plymouth.Under the updated directives, police officers will be mandated to interview partners or other household members of firearms licence applicants. This aims to uncover signs of domestic abuse or other factors making an individual unsuitable to possess a weapon. Forces must also conduct rigorous checks to ensure those with a documented record of violence are prevented from holding a firearms licence.This policy shift comes two years after an inquest highlighted “catastrophic failures” within the licensing system, which allowed Keyham gunman Jake Davison to legally own a shotgun despite his violent history. Davison, then 22, killed his mother and four others, including a three-year-old girl, in an eight-minute shooting spree in August 2021 before taking his own life.Kelly Fitzgibbons, four-year-old Ava Needham and two-year-old Lexi Needham were killed by Robert Needham in Woodmancote in 2020 More

Yvette Cooper has said she has seen some “disturbing information” relating to the future plans of proscribed terror group Palestine Action, urging people not to protest in support of the organisation.Speaking ahead of a major demonstration to protest the decision to ban the group, the home secretary warned the public that “this is not a non-violent organisation”, adding that more information about the group is likely to be revealed in future court cases.It comes after Downing Street on Monday warned: “Those who seek to support this group may yet not know the true nature of this organisation”. Yvette Cooper said she had seen ‘some disturbing information referring to future planning’ by Palestine Action More

The UK’s one-in-one out returns deal with France is reportedly set to begin in a matter of weeks, as pressure piles on the government to take further action to stop people from making the dangerous journey across the Channel. The agreement, announced by the prime minister in a joint press conference with Emmanuel Macron last month, means that for each small boat migrant sent back across the English Channel, an asylum seeker will be allowed to enter the UK from France under a legal route.Sir Keir Starmer said it was a “breakthrough moment” which would “turn the tables” on the people smugglers who bring them here.Labour is seeking to deter smuggling gangs in a bid to bring down small boat crossings (Gareth Fuller/PA) More

A Reform UK council leader risks being found in contempt of court after making a statement during a press conference in London about the alleged rape of a 12-year-old girl.It comes after Ahmad Mulakhil, 23, was charged with the rape of a girl in Nuneaton last week. Meanwhile, Mohammad Kabir, also 23, was charged with kidnap and strangulation in the same investigation. Warwickshire Police have not released the immigration status of the two suspects.George Finch – the 19-year-old Warwickshire County Council leader – risks having broken the law with a comment he made about the case. Contempt of court refers to behaviour that interferes with the administration of justice or undermines the authority of the court. The Independent is not able to repeat a number of claims Mr Finch made in the press conference without risking contempt of court.At one point during the press conference, Mr Finch acknowledged the risks attached to talking about a live legal case, saying: “I was told if I released this, I’d be in contempt of court.” The youngest council leader in the country claimed there has been a “cover-up” of details about the case. It came as Nigel Farage suggested police forces should release information, including immigration status, about people who are charged with crimes. The Reform UK leader said that he “absolutely” believes that information should be made available by police forces.In a statement, Warwickshire Police said that once someone is charged with an offence, they follow national guidance, which “does not include sharing ethnicity or immigration status”.Mr Finch told Monday’s press conference that he was “begging” for information about the two to be released in the wake of the charges.He said he had emailed the council’s chief executive to say that he wished to speak to the police force and urge them to release information about the men’s immigration status.Mr Finch added that he had later written a letter to home secretary Yvette Cooper and the chief constable of Warwickshire Police, Alex Franklin-Smith, calling for the immediate release of the immigration status of the two men.Mr Finch also claimed that Reform UK needs to “change things” and is “the last line of defence against the blob, the cover-ups”.Reform UK has been contacted for comment. The attorney general, Lord Hermer, has been approached for comment. More