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Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseWatch live as chair of the Office for Budget Responsibility (OBR) Richard Hughes holds a press conference after Labour’s Budget was announced on Wednesday, 30 October.Rachel Reeves, the UK’s first female chancellor, announced tax hikes that will raise an eye-watering £40bn.The chancellor said Labour had inherited a £22bn funding “black hole” from the Tories and would never again “allow a government to play fast and loose with public finances.”Ms Reeves promised to “invest, invest, invest” in order to “fix public services” after months of warning the public of the “tough choices” ahead.She confirmed increases to employers’ national insurance contributions, stamp duty on second homes and a scrapping of VAT exemption on private schools fees, and a new duty on vaping liquids.Ahead of the press conference, the OBR said Ms Reeves’ plan “delivers a large, sustained increase in spending, taxation, and borrowing.” More

Chancellor Reeves confirms fuel duty freeze will continue into 2025Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseRachel Reeves has announced increases in stamp duty rise and capital gains tax as part of tax hikes that will raise an eye-watering £40bn in her historic first Budget.Launching an attack on previous Tory governments, the chancellor said Labour had inherited a £22bn “black hole”, and would never again “allow a government to play fast and loose with public finances.After months spent warning the public of “tough choices” ahead, Ms Reeves promised to “invest, invest, invest” in order to “fix public services”.Increases to employers’ national insurance contributions, stamp duty on second homes and a scrapping of VAT exemption on private schools fees were all confirmed by the chancellor, as well as a new duty on vaping liquids.However, there were surprise announcements that the freeze on income tax thresholds, often described as a “stealth tax”, would not be extended past 2028, while Ms Reeves has also decided against a hike in fuel duty.Responding to the Budget, Rishi Sunak accused Ms Reeves of “fiddling the figures” and criticised the government for embarking on an “enormous borrowing spree”.Show latest update 1730300035Watch live: Office for Budget Responsibility responds to Rachel Reeves’ £40bn tax hikesAndy Gregory30 October 2024 14:531730299894Budget averts 36% fall in net public investment, IPPR analyst saysRachel Reeves’ Budget will keep investment in the public sector roughly stable over the course of this parliament, according to Carsten Jung, head of macroeconomics at the IPPR think-tank.The new plans contrast with a 36 per cent fall under the previous Tory government’s plans, Mr Jung said.Andy Gregory30 October 2024 14:511730299549What impact will Budget have on rail travel costs?Regulated train fares in England will increase by up to 4.6 per cent next year and the price of most railcards – excluding the discount mechanism for disabled passengers – will rise by £5, Rachel Reeves announced in her Budget.The increase in fares is one percentage point above July’s Retail Prices Index (RPI) measure of inflation, which until 2023 was used by Westminster governments to set the cap on annual rises in regulated fares.But a Budget document published by the Treasury stated that the 4.6 per cent rise will be “the lowest absolute increase in three years”, with fare changes to come into force in March.Andy Gregory30 October 2024 14:451730299292Pound strengthens slightly after Budget, but FTSE remains in the redThe pound has strengthened following Rachel Reeves’ Budget – although the FTSE 100 Index remained in the red.Sterling, which was down 0.4 per cent against both the US dollar and euro prior to the Budget – later stood 0.2 per cent higher at $1.303 dollars and 0.1 per cent lower at €1.201.However, London’s FTSE 100 Index fell 0.6 per cent.Andy Gregory30 October 2024 14:411730299172Budget sets Britain ‘on path towards national renewal’, says TUCThe Trades Union Congress has hailed Rachel Reeves’ first Budget as a “vital first step towards repairing and rebuilding Britain”, but warned that “there is still a lot more work to do to clean up 14 years of Tory mess and economic decline.TUC chief Paul Nowak said: “The chancellor was dealt a terrible hand by the last Conservative government – a toxic legacy of economic chaos, falling living standards and broken public services. But with today’s budget the Chancellor has acted decisively to deliver an economy that works for working people.“The government’s investment plans are a vital first step towards repairing and rebuilding Britain – securing the stronger growth, higher wages and decent public services that the country desperately needs.“Tax rises will ensure much-needed funds for our NHS, schools and the rest of our crumbling public services, with those who have the broadest shoulders paying a fairer share. The chancellor was right to prioritise hospitals and classrooms over private jets.“There is still a lot more work to do to clean up 14 years of Tory mess and economic decline – including better supporting and strengthening our social security system. But this budget sets us on an urgently needed path towards national renewal.”Andy Gregory30 October 2024 14:391730298913Watch: Rachel Reeves mocks Rishi Sunak with private jet announcementBudget: Rachel Reeves mocks Rishi Sunak with private jet announcementAndy Gregory30 October 2024 14:351730298764Sunak accuses Reeves of ‘tidal wave of anti-business regulations’Rishi Sunak has accused the chancellor of “delivering a tidal wave of anti-business regulations” and claimed the Labour Party is led by people “who have no experience of business”.The former prime minister told the Commons: “Today, the OBR has forecast growth is going to be lower under this government than it was forecast to be under the Conservatives, that’s the change they have brought.“This is what happens when the Labour Party is led by people who have no experience of business. Relentlessly talking down our economy, delivering a tidal wave of anti-business regulations, destroying our flexible labour market, and raising taxes to the highest level in our country’s history.“It’s a classic Labour agenda – higher taxes, higher borrowing, no plan for growth and working people paying the price.”Andy Gregory30 October 2024 14:321730298078Watch: Rachel Reeves pledges unprecedented NHS funding boost to transform healthcareRachel Reeves pledges unprecedented NHS funding boost to transform healthcareJoe Middleton30 October 2024 14:211730297604Sunak claims pensioners have been ‘squeezed’ in BudgetRishi Sunak has warned that Britain’s poorest pensioners have been “squeezed” in the Budget.He told the Commons: “Britain’s poorest pensioners squeezed, welfare spending out of control and a streak of tax rises they promised the working people of this country they would not do.The former prime minister said: “National insurance, up. Capital gains tax, up. Inheritance tax, up. Energy taxes, up. Business rates, up. First-time buyer stamp duty, up. Pensions tax, up. They have fiddled the figures.”Joe Middleton30 October 2024 14:131730297257How will the employer National Insurance rise affect you?Rachel Reeves has confirmed that employer national insurance contributions (NICs) will rise following an announcement at Labour’s first Budget.The measure has caused strong political debate, focused on whether it would break Labour’s manifesto pledge to not raise taxes on “working people.”Ministers and Treasury officials have indicated the government’s position is that the measure would not break their manifesto pledge. Meanwhile, Institute for Fiscal Studies director Paul Johnson has argued it would be a “straightforward breach.”Here are the facts about the debate and how the measure could affect you:Joe Middleton30 October 2024 14:07 More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseWatch as Rachel Reeves presented Labour’s first Budget in 14 years on Wednesday, 30 October.The chancellor promised: “More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.”Ms Reeves announced tax hikes that will raise an eye-watering £40bn.The chancellor said Labour had inherited a £22bn funding “black hole” from the Tories and would never again “allow a government to play fast and loose with public finances.”She pledged to “invest, invest, invest” in order to “fix public services” after months of warning the public of the “tough choices” ahead.Ms Reeves confirmed increases to employers’ national insurance contributions, stamp duty on second homes and a scrapping of VAT exemption on private schools fees, and a new duty on vaping liquids.The Treasury already announced that the minimum wage will increase to £12.21.It falls short of the £12.60 an hour sum recommended by the Living Wage Foundation, but Ms Reeves described the 6.7 per cent increase as a “significant step” towards creating a “genuine living wage for working people.”Labour vowed not to raise taxes on “working people” in the days before the Budget announcement.Their pre-election manifesto promised not to increase income tax, national insurance, or VAT as part of their commitment to keep taxes low for these “working people.” More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseRachel Reeves said it would be the “wrong choice” to increase fuel duty next year, saying she would continue the freeze and maintain the temporary 5p cut for another year.She told MPs during The Budget she has to “take some very difficult decisions” on tax, and noted to retain the 5p cut and freeze fuel duty again would cost more than £3 billion next year.This means the 5p per litre cut in fuel duty introduced by the Conservative government in March 2022 will continue.Until the 5p cut, fuel duty had been frozen at 57.95p per litre since March 2011.VAT is charged at 20% on top of the total price of fuel.Ms Reeves said: “To retain the 5p cut and to freeze fuel duty again would cost over £3 billion next year.“At a time when the fiscal position is so difficult, I have to be frank with the House that this is a substantial commitment to make.“I have concluded that in these difficult circumstances – while the cost of living remains high and with a backdrop of global uncertainty – increasing fuel duty next year would be the wrong choice for working people.“It would mean fuel duty rising by 7p per litre. So, I have today decided to freeze fuel duty next year and I will maintain the existing 5p cut for another year, too.“There will be no higher taxes at the petrol pumps next year.”Chancellor of the Exchequer Rachel Reeves poses outside 11 Downing Street More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreCloseWatch as Rachel Reeves and other Labour ministers departed Downing Street on Wednesday, 30 October, ahead of the party’s first Budget in 14 years.The chancellor held the red box outside Number 11 before she, Sir Keir Starmer, and their colleagues filed into the House of Commons.In her speech later today, she is expected to say the “prize on offer” is “immense”, and she will lay out new funding to cut hospital waiting lists, build more affordable homes and rebuild crumbling schools.“More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards,” she will add.The Treasury has already announced that the minimum wage will increase to £12.21.It falls short of the £12.60 an hour sum recommended by the Living Wage Foundation, but Ms Reeves described the 6.7 per cent increase as a “significant step” towards creating a “genuine living wage for working people.”Labour has vowed not to raise taxes on “working people” in the days before the Budget announcement.Their pre-election manifesto promised not to increase income tax, national insurance, or VAT as part of their commitment to keep taxes low for these “working people.”However, other rumoured tax rises led critics to question who falls under Labour’s definition of “working.”The prime minister said the UK’s working people “know exactly who they are.”“I know some people want to have a debate about this”, he said, “and I know there will always be the exception that proves the rule.”Asked whether he considered people who get additional income from assets such as shares or property, he replied they “wouldn’t come within my definition.” More

Your support helps us to tell the storyThis election is still a dead heat, according to most polls. In a fight with such wafer-thin margins, we need reporters on the ground talking to the people Trump and Harris are courting. Your support allows us to keep sending journalists to the story.The Independent is trusted by 27 million Americans from across the entire political spectrum every month. Unlike many other quality news outlets, we choose not to lock you out of our reporting and analysis with paywalls. But quality journalism must still be paid for.Help us keep bring these critical stories to light. Your support makes all the difference.CloseRead moreClose British Treasury chief Rachel Reeves will deliver her first budget in Parliament on Wednesday, a tightrope act that aims to find billions for investment through borrowing and tax hikes without roiling businesses or raising taxes on working people.It’s the first budget by a Labour Party government in almost 15 years, and the first ever delivered by a female finance minister.Reeves pledged that the budget will put “more pounds in people’s pockets” and get the economy growing, but the government has struck a gloomy note about the state of the public finances.Prime Minister Keir Starmer warned that the budget will reflect “the harsh light of fiscal reality.”The center-left Labour Party was elected July 4 after promising to banish years of turmoil and scandal under Conservative governments, get Britain’s economy growing and restore frayed public services, especially the state-funded National Health Service.The center-left government argues that higher taxes and limited public spending increases are needed to “fix the foundations” of an economy that it argues has been undermined by 14 years of Conservative government.The Conservatives say they left an economy that was growing, albeit modestly, with lower levels of debt and a smaller deficit than many other Group of Seven wealthy nations.Pumping money into health, education and housing is a priority of the new government, made harder by a sluggish economy, hobbled by rising public debt and low growth. The government also says there is a 22 billion pound ($29 billion) “black hole” in the public finances left by the Conservative government.That means the budget is certain to include tax increases — though Labour has pledged not to raise the tax burden on “working people,” a term whose definition has been hotly debated in the media for weeks. The Treasury has announced that about 3 million of the lowest-paid workers will get a 6.7% pay increase next year, with he minimum wage rising to 12.21 pounds ($15.90) an hour.Reeves – Britain’s first female chancellor of the exchequer — is widely expected to tweak the government’s debt rules so that she can borrow billions more for investment in the health system, schools, railways and other big infrastructure projects, and to raise money by hiking tax paid by employers, though not employees. More