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    Reform unlikely to get multimillion-pound donation from Elon Musk, Farage admits

    Reform UK is unlikely to receive a record-breaking multimillion-pound donation from Elon Musk, Nigel Farage appears to have conceded. The former Ukip leader said the idea of a mega-donation from the X boss and ‘first buddy’ of Donald Trump had been “massively over-exaggerated”. The two men fell out spectacularly earlier this year, with Mr Musk even calling for a new leader for Reform, but now talk and text each other. Asked about the mega-donation, he called Mr Musk a “hero” for buying the social media platform but admitted they took a “different view” in their row over jailed far-right political activist Tommy Robinson.Reform UK leader Nigel Farage (PA) More

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    No evidence Labour welfare cuts will get more people into work, OBR says

    Labour’s plan to support more people into work through cost-cutting welfare reforms has been called into question by the Office for Budget Responsibility’s (OBR) own economic forecast.Released to accompany the party’s spring statement, the spending watchdog’s report said it was not provided with an analysis of how the reforms could boost employment, adding it was also unable to make its own in the limited time available.The revelation follows accusations Rachel Reeves “rushed” welfare reforms in light of pressure from the OBR to secure a larger fiscal headroom.The chancellor laid out more details of Labour’s planned £4.8 billion in welfare cuts on Wednesday as she delivered the new government’s first spring statement in power.Rachel Reeves has been accused by the opposition of rushing welfare reforms More

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    Wealthy and pensioners at risk of new tax raid in autumn Budget, experts warn

    Pensioners and the wealthy could face another shock tax raid by Rachel Reeves in October, leading economists have warned. It comes amid concerns that the chancellor has not left herself enough headroom in the finances to withstand changes in the economy. Ms Reeves is also locked in a row over suggestions that instead of making people £500 better off, the poorest will end up being £500 worse off.Paul Johnson, the director of the highly-respected Institute for Fiscal Studies (IFS) think tank, said in his post-spring statement briefing that the chancellor had left herself exposed to minor forecast changes and warned there was a “good chance” she would need to raise taxes in her autumn Budget. Mr Johnson said he was concerned pensions “look like a juicy place to go for a lot of money”. “That risks months of speculation over what those tax rises might be – a raid on pensions, a wealth tax on the richest, another hike to capital gains tax?” The Chancellor Rachel Reeves (Ben Stansall/PA) More

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    Minister urges ‘cool heads’ as Rachel Reeves begs Trump not to slap tariffs on the UK

    Embattled chancellor Rachel Reeves has begged Donald Trump not to impose crippling tariffs on UK car exports next week.It comes as business secretary Jonathan Reynolds urged colleagues to “keep cool heads” amid growing concerns that a trade war will create a black hole in the UK accounts. The fears come just as the chancellor had imposed eyewatering cuts on benefits to balance the books.Ms Reeves disclosed the government is in emergency talks with the US to stop the levy, which is due to take effect next Wednesday.But the Office of Budget Responsibility (OBR) has warned that the £10bn of headroom she created to give herself some flexibility to deal with unforeseen events will be wiped out if tariffs come in on Wednesday next week.In a stark warning against counter measures, OBR chair Richard Hughes warned that “in a worst case scenario” if the UK were to retaliate the country would lose 1 per cent of GDP.Rachel Reeves says UK not planning retaliatory tariffs on US “at the moment” More

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    UK politics live: Rachel Reeves may raise taxes ‘even further’ in autumn budget, IFS warns

    Key takeaways from Rachel Reeves’ spring statementRachel Reeves may have to raise taxes or introduce further spending cuts in her October budget, leading economists have warned.The Institute for Fiscal Studies (IFS), an economics-focused think tank, warned after her spring statement that Ms Reeves had left herself open to six months of “damaging speculation and uncertainty over tax policy”.While the chancellor restored her £9.9 billion headroom of spending power with cuts made in the statement, the IFS warned the buffer is small by historic standards.This risks the need for further cuts, or even tax rises at the autumn budget, if Ms Reeves is to adhere to her self-imposed fiscal rules to not borrow cash to pay for day-to-day public spending.IFS director Paul Johnson said he was concerned pensions “look like a juicy place to go for a lot of money”. “That risks months of speculation over what those tax rises might be – a raid on pensions, a wealth tax on the richest, another hike to capital gains tax?”Ms Reeves has denied there would be further tax rises or spending cuts at the Budget in the autumn but stopped short of ruling them out entirely.Starmer refuses to rule out further tax rises Sir Keir Starmer said the decision not to increase tax at the spring statement “indicates the mindset” of the government when asked if there would be hikes in the autumn.The prime minister declined to explicitly rule out the prospect of tax rises in the budget later this year, but said ministers had “kept good” to manifesto promises not to raise certain taxes.He said: “The first thing to say is we haven’t raised tax in the spring statement, and I think at every press conference I did before yesterday, the challenge to me was, ‘you’re going to have to raise taxes in the spring statement, aren’t you?’“And I said ‘wait ’til the spring statement’, we got the spring statement and we haven’t (raised taxes).“What we’ve done is build on the stability that we need and to go further and faster on security and growth in what is undoubtedly a changed world.“We did have manifesto commitments in relation to tax and what taxes we wouldn’t raise, and we kept good to those promises.“Obviously, I’m not going to write future budgets – every prime minister and chancellor from every government always takes that position.“But if you look at the pattern, if you like, or the intent for both the budget and the spring statement, you’ll see that when it comes to the decisions we’ve had to make, we have not taken the decision to increase tax, and I think that indicates the mindset that we bring to this.”Jabed Ahmed27 March 2025 14:46Starmer says all options ‘on the table’ in response to Trump’s latest tariffs All options remain “on the table” for responding to tariffs, the Prime Minister has said in response to Donald Trump’s announcement of new levies on cars.Sir Keir Starmer told a press conference in Paris: “Tariffs are very concerning, there’s no doubt about that, and I’m very clear in my mind that the sector, the industry doesn’t want a trade war.“And that’s why first and foremost we have got to work with the sector, work with the industry in our response to this.“I think we need to keep, as ever, pragmatic and clear-eyed. We are engaged, as you know, in intense discussions with the US on economic arrangements on a number of fronts, but including to mitigate tariffs, and we will continue in that way because I think that rather than jumping into a trade war it is better pragmatically to come to an agreed way forward on this, if we can, and that’s why we’re intensely engaging in the way that we are.“But look, we always have to put the national interest first and that’s why I’ve also been clear that as we’ve engaged in those negotiations, those discussions, we will keep all options on the table.“The industry doesn’t want a trade war, but it’s important we keep all options on the table.“But I’m working hard with others to make progress on economic arrangements which I hope will better serve our country than a trade war which will not in my view.”Jabed Ahmed27 March 2025 14:42Comment | Labour’s big betrayal: This war on the poor will backfire badly – not least among its own MPsOur chief political commentator John Rentoul writes: Labour’s war on the poor will backfire badly – not least among its MPsWorryingly for Starmer and Reeves, MPs elected last year are starting to go public with their opposition to welfare cuts, writes John Rentoul – and there are growing numbers prepared to vote against the government. Some believe welfare will be a bigger electoral albatross for the party than tuition fees was for the Lib DemsJabed Ahmed27 March 2025 14:39’Russia is filibustering’: Starmer calls for Ukraine peace talks deadlineSir Keir Starmer has accused Vladimir Putin of “filibustering” to delay Donald Trump’s peace talks. He said: “They are playing games, and they’re playing for time. It is a classic from the Putin playbook.”The prime minister said allies in Paris agreed “we should be setting a framework and a deadline of delivering real progress, and that we should hold them to that deadline”. He added: “We’ve agreed that we must go further now to support the peace process, support Ukraine and increase the pressure on Russia to get serious.”Defence secretary John Healey will chair the next Ukraine contact group meeting on 11 April to deliver “more military aid and keep Ukraine in the fight because peace comes through strength”.The prime minister said allies had agreed to increase sanctions and bring Russia to the table “in days and weeks, not months and months”. He warned: “We are in the mood for deadlines.”Sir Keir said the allies discussed a “full or partial ceasefire” leading to a “just and lasting peace”. He added: “That remains our shared goal.”The UK, French and German chiefs of defence will meet in Ukraine to discuss support for Kyiv. Sir Keir said: “The coalition of the willing is stronger and broader than it’s ever been.”He added: “This will require the engagement and support of the United States,” but insisted allies are “more resolute today” than in recent weeks.Follow our coverage of the Ukraine war below: Jabed Ahmed27 March 2025 14:30Labour MP asks if government can ‘find a lost moral compass’ after aid cutsA Labour MP has asked if the government can rediscover its moral compass after aid cuts.Barry Gardiner (Brent West) said he was unhappy aid had been reduced to 0.3% of GDP in order to fund higher defence spending.Mr Gardiner said: “I was proud to serve in this House when Tony Blair and Gordon Brown established the department for international development and when they established the ‘drop the debt’ campaign.“I was proud when the leader and I stood on a manifesto which committed us, promised that we would restore the international aid budget to 0.7% of GNI. So could we have a debate please in Government time on how it may be possible to find a lost moral compass.”Commons leader Lucy Powell said: “We all share the pride that the previous Labour government did in the area of debt reduction and aid for some of the poorest countries across the world. We’re also proud that we have a commitment which remains to returning our aid budget to 0.7% of GDP.”Ms Powell then referred to the statement to the Commons by Sir Keir Starmer announcing the extra defence spending and aid budget cut. She added: “We remain absolutely committed to returning the aid budget to the 0.7% levels we said.”Jabed Ahmed27 March 2025 14:22Downing Street says government has made ‘generous offer’ to British SteelDowning Street said the Government had made a “generous offer” to British Steel.The Prime Minister’s official spokesman said: “We’ve made a generous offer to British Steel designed to deliver a sustainable future for staff, industry and the local community… we’ve got a two and half billion-pound plan to rebuild the sector.“We will continue to work with British Steel and with the company’s owners to secure its future and deliver a good outcome.“But we’ve made that offer and that’s obviously up to the company involved.”For context,British Steel, the second-largest producer in the country, has launched a redundancy consultation on shutting two blast furnaces in Scunthorpe. More than half of the company’s 3,500-strong workforce could potentially be impacted.The full report below: Jabed Ahmed27 March 2025 14:06Downing Street ‘disappointed’ by US car tariffs and vows to protect national interestDowning Street said the UK was “disappointed” by the US decision to impose tariffs on the car industry and would “not hesitate to respond in the national interest”.But Number 10 said Britain was seeking a “pragmatic approach” with ongoing “productive” discussions about a wider economic deal.The prime minister’s official spokesman said: “We are obviously disappointed by the US decision to impose global tariffs on the auto industry, and I think, as we said previously, we’ll keep all options on the table and we’ll always take a position that protects the national interest.“But also as we’ve said we’re taking a pragmatic approach to our discussions with the United States. We continue to have productive discussions on securing a wider economic deal.“These conversations are ongoing and are going to continue.”Asked whether the prime minister was worried the UK looked weak, he said: “We’re going to keep all options on the table and will never hesitate to respond in the national interest, but we’re taking a pragmatic approach.”( More

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    Child poverty hits record high in UK with nearly 4.5 million in low income households

    The number of children living in poverty across the UK has reached a new record high, according to figures from the Department for Work and Pensions.Some 4.45m children were estimated to be in households in relative low income, after housing costs, in the year to March 2024.This is up from the previous record of 4.33m in the 12 months to March 2023. It is the highest figure since comparable records for the UK began in 2002-2003.A household is considered to be in relative poverty if it is below 60 per cent of the median income after housing costs.Anti-poverty campaigner Alison Garnham said the data was a “stark warning” that government action is needed, adding that record high numbers of children in poverty “isn’t the change people voted for”.115,000 more children are living in poverty compared to 2023, according to government figures More

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    Watch live: Starmer speaks after key Ukraine talks with ‘coalition of the willing’

    Watch live as Sir Keir Starmer holds a press conference in Paris on Thursday, 27 March, after a summit of Ukraine’s allies, to accuse Vladimir Putin of making “hollow promises” in ceasefire talks.The Prime Minister has met with the so-called coalition of the willing after French president Emmanuel Macron suggested a European peacekeeping force could “respond” if attacked by Russia.Sir Keir also held one-to-one talks with Nato chief Mark Rutte at the gathering.It comes as officials and defence chiefs have been holding talks at London’s Northwood military headquarters, drawing up a strategy to support Kyiv and deter future aggression from Moscow.Ukraine’s president Volodymyr Zelensky is also in Paris, where he held talks with Mr Macron on Wednesday. More

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    Voices: Independent readers react to Rachel Reeves’ spring statement – from ‘out of touch’ to ‘genuine poverty’

    Rachel Reeves is facing mounting criticism following her spring statement, which many fear will deepen the UK’s economic and social woes. When we asked for your views, many were concerned about the chancellor’s £14bn package and accused Reeves of balancing the books “on the backs of the chronic sick and disabled” while protecting wealthier interests. Improving living standards topped readers’ priorities in a poll, with 35 per cent saying Reeves should have focused on this in her spring statement, followed by tax reform (19 per cent) and driving economic growth and job creation (15 per cent).These results were echoed in the comments, with the decision to cut welfare spending, despite claims it would push people into work rather than poverty, being labelled by readers as a re-run of failed Tory austerity.Many argued that benefits like Universal Credit and housing support primarily prop up low wages and the rental market, benefiting businesses and landlords more than claimants. Several called for structural reforms such as taxing capital gains like income, introducing rent controls, and restoring social housing, rather than targeting the poorest.Frustration was also directed at Reeves personally, with criticism of her acceptance of concert freebies and the growing view that she is “out of touch.” Amid warnings from economists about a likely “blockbuster” autumn budget, many readers expressed anger and disappointment, fearing that Labour is adopting the same short-sighted economic orthodoxy they had hoped to reject.Here’s what you had to say:Resignation callI want to see the resignation of Reeves and Starmer so that the real Labour Party can get on with the job of rebuilding the UK. Meanwhile, instead of dishing out money on building houses, buy up empty ones and deal with the ludicrous rental market. This lot have no idea about the economy and what is wrong with it at all.mindfulFix the housing crisisSimples… tax capital gains at the same rate as income tax. Charge pensioners 2 per cent national insurance (NI) to cover NHS costs.Remove the NI hike from employers, and introduce local council-led rent controls.All of this would raise more money, whilst reducing costs to businesses and stopping councils from using council tax to subsidise private landlords.chrispykremeUC top-up is not a benefit for poor peopleThe UC top-up for working people is not a benefit for poor people, it’s a benefit for business owners that allows them to pay wages that people can’t survive on. Increase the minimum wage to a genuinely liveable amount and this will reduce UC spending.Similarly, the housing benefit/the UC housing element is not for the benefit of the claimant, they’re a benefit for landlords. Stop selling off council housing, replace the stock that was sold off by building or by claiming empty homes/commercial buildings, and you’ll also reduce UC spending.To sustainably reduce sickness/disability benefits, the NHS and social care need to be properly funded. We have more disabled people because we’re not caring for sick people properly, and we’re not providing the care that those who are already disabled need to live healthier and more independent lives.If we’re going to be entirely mercenary about this and only value a person based on the benefit they provide to society and whether they’re “economically active”, we also need to recognise that paid work isn’t the only way people contribute. Activities like childcare, caring for adults, and volunteering reduce the need for government funding and we need to recognise that people who are too unwell or elderly for regular paid work are doing a lot of this kind of work instead. You’re not saving money if you now have to pay someone to do what they were doing for free.Cutting everything without any care for the knock-on effects is just Tory austerity all over again. It didn’t create a sustainable system the first time, it made people sicker and poorer and left us in the situation we’re in now. We need genuine change, not the same short-sighted demonising nonsense all over again.I Like ArmadillosIf a job can’t pay enough, is it really a job? If there is a job that a benefit claimant can do and it’s available, they must accept that role or lose the benefit.Rent claimants should only receive the equivalent to local council house rental values, and landlords should not be allowed to charge more.The sale of any council housing property should be abolished. It is just not viable to sell them privately and maintain enough social housing. Why is there a discount given to buy council property? It just does not make sense.Any job should be paid enough to cover the cost without any form of subsidy, otherwise, it’s not really a job, is it? If a job doesn’t warrant enough money, what is the point of the job?MartynBalancing the booksReeves is balancing the books of her disastrous November budget on the backs of the chronically sick and disabled while she accepts free tickets to be seen with those who are so much more well-off. What goes around, comes around.KernowJust because they call themselves the Labour Party…Look, I don’t understand why poor old Rachel is getting so much stick. It’s been obvious for some time that getting old, being disabled, and having a terminal illness are all lifestyle choices. Why should the well-off have to subsidise people who have chosen to live like that? Also, just because they call themselves the Labour Party, you shouldn’t automatically assume they have anything in common or affiliation with a party that traditionally cared about ordinary people….BillyHuntGenuine povertyFailure to address genuine poverty and the growing differential in income while failing to maintain and upgrade infrastructure and public sector service delivery will never create the environment for growth, while the UK suffers low productivity and reliance on imports from low-wage, low-environmental-standards and poor working conditions.The West has relied on imports of high-human-input products from its ex-Empire while selling its technologies and machinery to developing nations, each in turn destroying the West’s ability to grow or prosper. Trump’s tariffs will not solve that — they’ll simply create domestic inflation and increased poverty. Without redistribution of wealth and an end to the ‘greed is good’ mindset, the West will decline — seemingly the UK government policy.Topsham1Fixed it for you, RachelPerformative cruelty on the poorest and most vulnerable in our society, hidden behind a made-up fiscal rule as justification. Solution: Reduce interest rates to 3 per cent in line with inflation and the ECB interest rate — saves the public money on mortgages and limits rent increases, and saves the government tens of billions in interest payments on the BoE reserve account balance (circa £800 billion). Tier the interest payable on the BoE reserve account in line with other central banks such as the ECB and Bank of Japan, e.g., full three per cent on the first £200 billion, then reduced interest rates on the remaining £600 billion. Junk the fiscal rules fiasco and absorb the OBR corner of the Treasury back into the Treasury. These three actions would raise enough money per annum to avoid punishing the poor, invest in defence, the NHS, public services, and provide investment capital to grow the economy. The only losers would be the banks by not being able to siphon off quite so much from the Treasury. There, fixed it for you, Rachel.InspectorSome of the comments have been edited for this article for brevity and clarity. You can read the full discussion in the comments section of the original article here.The conversation isn’t over. To join in, all you need to do is register your details, then you can take part in the discussion. You can also sign up by clicking ‘log in’ on the top right-hand corner of the screen.Make sure you adhere to our community guidelines, which can be found here. For a full guide on how to comment click here. More