UK

Ending the two-child benefit cap with “half measures” will still see child poverty rise, Rachel Reeves has been warned in a hard-hitting report from the UK’s leading left-wing think tank.The findings from the Resolution Foundation, whose former director Torsten Bell is now one of Ms Reeves’s Treasury ministers, come amid speculation that the chancellor will lift the cap to a maximum of three children in a bid to appease angry backbenchers.The think tank warned: “Fully scrapping the two-child limit on benefits is an essential step towards achieving lower child poverty rates in 2029/30 than in 2024/25. No partial repeal of the policy is sufficient to keep child poverty rates from rising.”But the cost of lifting the cap altogether is believed to be £3.5bn a year, at a time when Ms Reeves has to fill a budget black hole estimated at £40bn and is also seeking more headroom flexibility to deal with economic shocks.Rachel Reeves is being asked for an extra £3.5bn a year to end the child benefit cap More

Kemi Badenoch is set to urge Keir Starmer to sack Rachel Reeves if she increases taxes at next month’s Budget.The Tory leader will demand that the chancellor “get the axe if she puts up tax”.Ms Reeves is widely expected to increase taxes next month as she attempts to bridge a gap in her spending plans thought to amount to more than £20 billion.On Wednesday, the prime minister declined to repeat his commitment to Labour’s manifesto pledge not to raise income tax, national insurance or VAT.Kemi Badenoch will apply pressure on the chancellor ahead of her upcoming Budget More

With Labour’s autumn Budget less than a month away, the Treasury is reportedly considering ways to shake up property tax in the UK, including a controversial new levy on high-value properties.Chancellor Rachel Reeves may need to find at least £22bn at the upcoming fiscal event, researchers from the Institute for Fiscal Studies (IFS) recently warned, as weak growth forecasts continue to reduce room for manoeuvre.Adding further to the government’s woes are reports that the Office for Budget Responsibility (OBR) is set to downgrade the UK’s performance on productivity, which could add another £20bn gap in public spending.Ministers have insisted that any tax rises should be focused on those with the most wealth, as living standards in the UK continue to drop. It is understood that the chancellor is currently considering a so-called ‘mansion tax’ that would see owners of high-value properties hit with a new charge.Different versions of how the tax could work have been floated, both with the potential to raise considerable sums for the exchequer.Chancellor Rachel Reeves may need to find at least £22bn at the upcoming fiscal event, researchers from the Institute for Fiscal Studies (IFS) recently warned More

A migrant sex offender who was mistakenly released from prison in a major blunder was paid £500 to leave the UK, it has emerged.Home secretary Shabana Mahmood said she shared the public’s anger over Hadush Kebatu’s bungled release and had “pulled every lever” to remove him from British soil – but revelations about the cash payment are likely to spark further outrage. Kebatu, who was forcibly sent back to Ethiopia on Tuesday night with a team of five escorts on the flight, was given a £500 payment after threatening to disrupt his deportation flight. Downing Street said on Wednesday that the payment had been an “operational decision” and came after officials rejected an application from Kebatu for a scheme that has offered up to £1,500 in resettlement grants in the past. The government said the alternative was a “slower and more expensive process”, which could have included further detention, a new flight potentially costing thousands of pounds and fighting subsequent legal claims, they said. Hadush Kebatu was wrongly freed from HMP Chelmsford on Friday More

David Lammy has insisted that despite experiencing horrendous prejudice while growing up, he does not believe Britain is a racist country and hit out at those who “would have us believe that we are more divided than we really are”.Writing exclusively for The Independent to mark Black History Month, the justice secretary described how he was spat at as a young boy for being Black, and said he was “terrified” of the skinheads who “patrolled our neighbourhoods, spreading their hate”.But he insisted his experiences of efforts to combat division have shown him Britain is not a racist country and is instead a nation of people “determined to play their part in putting it right”.Arguing that most people want to live in a “tolerant society”, Mr Lammy lashed out at Reform, warning the party’s worldview is counter to Britain’s true spirit. He highlighted comments made last weekend by Reform’s Runcorn MP Sarah Pochin, who told Talk TV that seeing Black and Asian people in adverts made her angry, warning that such remarks were becoming “normalised” and marked a return to “flagrant racism”. While Ms Pochin has since apologised, Labour ministers have said she was only sorry “for saying the quiet bit out loud”.Deputy prime minister David Lammy More

The World Travel and Tourism Council (WTTC) has become the latest major international institution to announce plans to close its headquarters in the UK because of Brexit.The group, which represents the global private sector in travel and tourism and has been based in the UK since it was founded, is set to relocate to mainland Europe to benefit from “lower operational costs and EU single market access”, its chairman has said. Manfredi Lefebvre added: “Brexit is one of the main factors in our decision to potentially move our headquarters beyond the UK. The benefits of a European head office include lower operational costs, EU single market access and recruitment flexibility of a multilingual talent pool.“The high standard of research services our members, governments and the stakeholders around the world receive will continue to be at the forefront of our work and we are confident we will attract high-quality talent in the wider European market, for all of our services to members globally.”The decision comes after the board of the WTTC endorsed a plan to move, with Switzerland, Italy and Spain among the likely destinations.The move comes after chancellor Rachel Reeves blamed the country’s latest economic woes on the ongoing impact of the decision to leave the EU.The Office for Budget Responsibility (OBR) has already calculated that Brexit will have a long-term reduction in GDP by 4 per cent to the UK.WTTC chairman Manfredi Lefebvre More

Sir Keir Starmer has declined to say whether he will stick to his manifesto promise not to raise taxes, fuelling speculation that the government will row back on the pledge at next month’s Budget.Conservative leader Kemi Badenoch asked the prime minister on Wednesday whether he stuck by his pledge not to raise income tax, national insurance or VAT. Chancellor Rachel Reeves is facing the prospect of tax rises or spending cuts as she looks to balance the books at the November Budget. Answering Ms Badenoch during Prime Minister’s Questions, the PM pointed to some economic figures, before saying that “the Budget is on 26 November and we will lay out our plans”. He added: “But I can tell the House now that we will build a stronger economy, we will cut NHS waiting lists and deliver a better future for our country.”Kemi Badenoch during PMQs on Wednesday More