Will Rachel Reeves's budget maneuvers unsettle the investment community?

This week marks the unveiling of the first Labour budget in over a decade, with Rachel Reeves poised to outline the nation's financial roadmap for the future years.

Economics and Data Editor @EdConwaySky

Tuesday, October 29, 2024, 23:

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Budgets primarily focus on numerical data.

Over the next day, we will be inundated with various statistics related to the economic conditions, the magnitude of the budget shortfall, and the financial regulations that the newly appointed Chancellor intends to implement in the near future.

Ultimately, like many others, this budget primarily hinges on the disparity between two significant figures.

Live Updates: Key Highlights from the 2024 Budget Ann

Aggregate government expenditures and total governmental revenue.

Currently, the United Kingdom's government expends slightly more than £1.2 trillion annually, while generating slightly more than £1.1 trillion through taxes and other revenue.

In essence, the nation is incurring expenses that surpass its tax revenue.

Thus, it must secure the shortfall through borrowing.

The budget shortfall, commonly referred to as the deficit, amounts to approximately £100 billion annually, as you may have deduced from the figures mentioned earlier.

Politicians, such as the chancellor, often devote considerable attention to concerns about the deficit.

Certainly, the primary goal of the diverse fiscal regulations they have adopted over the years was to reduce the disparity between those two significant figures.

Generally, the simplest approach is to reduce aspects of government spending that are less likely to be immediately missed by the public.

Upon assuming office in 2010, George Osborne made significant reductions in various areas of public expenditure, with a particularly deep cut in the funds allocated for public sector investment in buildings, infrastructure, and equipment, known as capital spending.

Jeremy Hunt, who had temporarily increased spending during the pandemic, was projecting a comparable decrease in investment in the upcoming years.

Rachel Reeves has consistently stated before the budget announcement that she intends to significantly increase investment in the upcoming years.

Aiming for such a worthy objective is commendable as it promises to enrich future generations, though it will require significant financial outlay initially.

Maintaining current investment expenditure will amount to an annual cost of about £30 billion by the decade's close.

How does the chancellor reconcile that with her financial regulations?

It appears that part of her strategy includes boosting the income for the Treasury, possibly through increased national insurance rates for insurance companies.

Additionally, she is modifying her financial regulations.

Fiscal Overview 2024: Rachel Reeves Takes on Economic Guidelines

To put it succinctly, it seems probable that Ms. Reeves will opt for fiscal guidelines that disregard spending on investments.

Her revised debt guideline and her existing budget policy both essentially exclude capital expenditures, though they do account for the costs of debt interest, preventing her from borrowing indiscriminately.

Discover more: NHS to receive multi-billion pound budget boost. Supermarket leaders brace for £200 million impact due to National Insurance increase.

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This could seem like financial trickery, and there are concerns among traders that investors may quickly become alarmed by it.

Certainly, there are those who believe this is already the case, highlighting that the UK's borrowing costs for the government, indicated by the benchmark 10-year bond yield, have increased from just below 4% to almost 4.3% within just the last month.

This interpretation somewhat overlooks the broader influences on this market, which is equally shaped by worldwide economic trends and central bank decisions as it is by UK fiscal measures.

Certainly, when analyzing the recent shifts in the UK's lending rates alongside those of Germany and the US, it's evident that yields on UK government bonds are nearly aligned with their typical levels seen before a budget announcement.

They are significantly lower than they were before Liz Truss's mini-budget announcement.

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Nevertheless, one can anticipate a handful of unforeseen revelations and pertinent fresh insights during this financial occasion.

This is, indeed, a budget.

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Andy Burnham announces that Greater Manchester will maintain the £2 limit on individual bus fares

This announcement from the metro mayor occurs as Sir Keir Starmer receives backlash for raising the bus fare cap in England to £3.

Political journalist @Journoamrogers

Tuesday, October 29, 2024, 19:

Andy Burnham has announced that individual bus tickets in Greater Manchester will remain priced at £2 throughout 2025, even though the highest fare allowed elsewhere in England will increase to £3.

The area's chief official stated that the implementation of a £2 cap on individual ticket prices was possible due to measures he implemented to oversee the network and the reacquisition of buses into public control starting the previous year.

In an extensive address, Mr. Burnham announced that starting January 5, "we are moving forward with our initiative to implement a new, more straightforward and uniform fare system centered on a £2 single fare."

He also announced the implementation of a tap-to-pay system that includes daily and weekly price limits, as Greater Manchester progresses towards adopting a pricing model for public transport similar to that of London.

Mr. Burnham mentioned that the £2 cap will undergo an evaluation.

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In London, Transport for London (TfL) operates with its unique fare limits, meaning the new higher cap won't be relevant.

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Since January 1, 2023, bus ticket prices have been limited to £2 on over 4,600 routes across England. However, the government has announced that starting next year, this cap will increase to £3.

Stay informed with the newest updates from the UK and international scenes by tuning into Sky News.

Under the devolution framework, regional governments and metropolitan mayors have the ability to finance their initiatives to maintain lower transit fares, as seen in places like Greater Manchester, London, and West Yorkshire.

On Monday, Sir Keir Starmer revealed during a speech ahead of the budget that there may be impending tax increases to address the £22 billion shortfall in public finances, which, according to the government, was created by the former Conservative administration.

The prime minister is facing growing backlash for his recent decision, which critics are labeling as a "bus tax" and a "tax on working people".

The prime minister justified the decision by stating that the former administration had committed funds to support the £2 fare cap only until the end of 2024, indicating that beyond this point, there would be no further financial backing for this initiative.

Officials have stated that although there will be a rise in the cap, bus fares will remain low over time, potentially allowing passengers to save as much as 80% on certain routes.

The report indicated that ticket prices could increase by up to £13 on a specific journey following the conclusion of the Conservative’s funding deal at the close of 2024.

In a recent announcement, Mr. Burnham stated, "Our consistent objective has been to establish an affordable, well-utilized network akin to the successful model that has enhanced growth and efficiency in London.

Explore further: Major grocery chains could suffer a £200 million impact due to Reeves' increase in National Insurance. Video captures events leading up to MP Mike Amesbury striking a man in Frodsham.

Thanks to the measures we've implemented and the advances we've achieved, Greater Manchester stands apart from other regions in England in terms of bus funding and fare structures.

Greater Manchester initially suggested the £2 limit in March 2022 and implemented it by September of that year, before the nationwide £2 initiative. They plan to maintain this cap for as long as possible.

The Department for Transport (DfT) announced that keeping the £3 fare ceiling until the end of 2025 would incur costs of £151 million. Additionally, the government is allocating £925 million to local authorities and bus operators to enhance services.

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Chancellor Rachel Reeves is set to commit to major investments in the upcoming Labour budget, the first since 2010. She will assure that "working individuals will not see increased taxes on their earnings" following the new budget, though this statement does not rule out potential hikes in other taxes such as inheritance tax, stamp duty, capital gains tax, and duties on fuel, tobacco, and alcohol, among others.

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Wednesday, October 30, 2024 12:28

Chancellor Rachel Reeves is set to pledge significant investment in Labour's initial budget presentation since 2010, emphasizing a strategy of "invest, invest, invest."

Ms. Reeves, scheduled to address the Commons shortly after 12:30 PM today, will also commit to ensuring that "working individuals will not see increased taxes on their paychecks."

She will make it clear that Labour's commitment in their manifesto to maintain the current rate of national insurance only pertains to what employees pay, setting the stage for a potential rise in the tax that employers face.

Alert for 'record-high tax hike budget' – recent developments

Income tax and VAT rates are expected to stay unchanged, according to the chancellor, who noted that people will have "more money to spend."

"Ms. Reeves will assert that her confidence in Britain is stronger than ever, emphasizing the significant opportunities available today."

By committing solely to protect salaries, Ms. Reeves does not rule out the possibility of raising inheritance tax, stamp duty, capital gains tax, fuel duty, tobacco duty, alcohol duty, and various other taxes.

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She plans to modify the financial regulations governing government borrowing and repayment to facilitate increased investment.

Ms. Reeves is set to announce that the government's main focuses will be on reforming the NHS, revitalizing Britain, and safeguarding the earnings of working individuals.

The finance minister is anticipated to declare: "Increased financial means for individuals. A healthcare system that's available when required. An expanding economy that generates prosperity and opportunities for everyone. This is essential for enhancing the quality of life.

"The key to boosting economic growth lies in continuous investment. There are no quick fixes. Achieving this requires us to reestablish economic stability."

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Explore further on the budget: Additional allocations announced for an extra two million NHS consultations. £2 bus ticket price set to rise by 2025. Potential inclusions in the upcoming budget?

Following their electoral victory, the Labour Party has consistently claimed that the Conservatives handed over the reins of government amidst challenging economic circumstances.

They highlighted what they claim to be a £22 billion shortfall in the government's budget.

Sources previously informed Sky News that Ms. Reeves is expected to identify £40 billion in savings in the upcoming budget, though the specific timeframe for this has not been clarified.

Prior to the general election, Jeremy Hunt, the Conservative chancellor, has dismissed the number presented.

The Conservatives attribute the financial difficulties to the salary increases for professions including doctors, nurses, and train drivers, which were implemented by the Labour Party.

The chancellor is set to announce that Labour intends to emulate the transformative approaches of the governments from 1945, 1964, and 1997 in their strategy to rejuvenate the UK.

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Ms. Reeves is expected to announce in the Commons, "The Labour Party has once again been tasked with the rebuilding of Britain."

In 1945, following the devastation of World War II, it was the Labour Party that spearheaded the reconstruction of our nation.

"In 1964, the Labour Party spearheaded the transformation of Britain, harnessing the intense power of technology.

"In 1997, the Labour Party was responsible for the renovation of our schools and hospitals.

"Today, the responsibility rests with our Labour Party, our Labour government, to reconstruct Britain once more."

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Chancellor Rachel Reeves is set to present a budget focused on 'fixing the foundations and change,' though it may be challenging to gain widespread support. She has already revealed a substantial funding boost for the NHS, earmarked for additional appointments and new equipment.

Political editor @BethRigby

Wednesday, October 30, 2024, 07:

The financial plans in the Labour Party's manifesto were always questionable

Keir Starmer pledged that his administration would steer clear of austerity measures. At the same time, he declared that aside from planning to impose an additional £8 billion in taxes targeting private equity firms, oil and gas corporations, private school fees, and non-domiciled residents to fund an increase in teachers and NHS services, he had no intentions to increase taxes further.

Stay updated: Continuous coverage of budget day events

In truth, the victor of the election was confronted with the daunting task of making decisions involving tens of billions of pounds regarding taxes and expenditures. However, rather than being upfront about these challenges, the two primary parties engaged in a "conspiracy of silence" to secure electoral support.

Today, the reality will be revealed in a budget set to shape Sir Keir Starmer's initial term in office in ways his manifesto could not.

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Significant tax increases are on the horizon, alongside amendments to the fiscal regulations that will enable the chancellor to increase borrowing for investments in the deteriorating infrastructure of Britain.

We're set to discover which "working people" Sir Keir Starmer aims to safeguard as both small and large businesses, property owners, and shareholders — potentially including "Middle England" — prepare for potential tax increases, while the government readies itself for the repercussions.

During the Commonwealth Heads of Government meeting in Samoa last week, the prime minister sparked a debate on potential targets for tax increases. In a conversation, he defined "working people" as those who "earn their wages, typically receiving a monthly paycheck," noting that unlike others, they cannot simply "write a check to escape troubles."

He made it clear to me that individuals who were employed and also held assets, like real estate or stocks, were not included in his definition.

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Indeed, business proprietors, real estate holders, and the middle-class populace have legitimate reasons to be concerned.

Recently, the commitment to "not raise national insurance, the basic, higher, or additional rates of income tax, or VAT" has been modified to a vow to "safeguard the earnings of working individuals."

Businesses are anticipating a rise in the national insurance payments they are required to make on salaries – numerous will contend this is a clear violation of an election promise.

In a recent development that poses challenges for employers yet provides relief for low-income workers, the Labour Party has declared a 6.7% hike in the National Living Wage, benefiting over three million workers starting next year. This increase translates to an annual salary raise of approximately £1,400 for a qualified full-time employee.

Has Labour's manifesto been exposed as a fraud? Party insiders say it hasn't, emphasizing the unexpected "£22 billion shortfall" found in this year's budget upon taking office—a deficit that is projected to expand to £40 billion over the parliamentary term—which they now must address.

Politically, they aim to attribute the significant tax increases and borrowing to the economic situation handed down by the Conservatives, seeking to gain some leeway with the electorate.

A high-ranking official explained to me that the economic challenges they've inherited are more substantial than anticipated, creating significant political and economic difficulties early in their term.

Rachel Reeves is set to deliver a significant statement at the despatch box this Wednesday.

However, a public disenchanted with political leaders may perceive it differently as they observe a Labour chancellor, accompanied by a prime minister who had pledged the contrary during the campaign, initiating significant tax increases that just a few months earlier they had been assured were not on the horizon.

Sources admit that the upcoming budget will involve higher taxes and increased spending, surpassing what was initially promised by the Labour Party during their election campaign.

Yet, their ambition extends beyond merely identifying victors and vanquished. Instead, they aim to present this inaugural Labour budget in more than 14 years as a pivotal opportunity to establish a "new settlement" for both the citizens and the nation.

In pursuit of this objective, this will be labeled the “strengthening the base and transformation” budget: “This represents a fresh economic approach from a government ready to invest, specifically through borrowing, marking a significant shift that will demonstrate a roadmap for sustained growth.”

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As we delve into the details of who constitutes a working individual and who will face tax increases in this budget, there's also a significant narrative about massive investments in our nation's energy and transport systems, as well as in housing, hospitals, and schools.

"A leading member clarified, 'If everything goes according to plan, by the night of the budget announcement, we aim to demonstrate that we’ve safeguarded your earnings, are on the path to repairing the NHS, and are investing in the reconstruction of Britain.' They added, 'What else could we do? The concept of choice will be a central theme in the chancellor's address. We’ve made our decisions and we are calling on businesses and the affluent to contribute a little more to expand our economy and shield the workforce.'"

This upcoming agreement, upon its realization, will be substantial. Rachel Reeves plans to modify her borrowing guidelines to permit an additional £53 billion in borrowing for public services and infrastructure investment.

Further reading: Video of Labour MP throwing a punch termed 'shocking' by Starmer. Budget 2024: Expectations and Exclusions?

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Following the meeting at the International Monetary Fund summit in Washington last week, the chancellor announced her decision to adjust policies to seize economic opportunities in sectors ranging from life sciences and carbon capture to clean energy, AI, and technology. Additionally, she mentioned that borrowing would be utilized to address the deteriorating conditions of our schools and hospitals.

The risk for the chancellor lies in the potential backlash from unexpected tax increases not mentioned in the campaign manifesto, or claims of duplicity if the government insists it is defending the working class while possibly prolonging the hold on income tax thresholds past the 2028 deadline previously established. This move could push numerous employees into higher tax brackets, potentially boosting government revenues by up to £7 billion annually.

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How will middle-income and affluent voters react to a tightening of their financial belts? Additionally, how will companies react to the demand for increased tax contributions, especially from a government that has repeatedly claimed to support business interests?

There's no question that it's a tough pitch. However, the administration is betting that enduring some immediate discomfort will result in future benefits, provided Reeves can successfully stimulate economic expansion.

The aspiration is that by the time the next Labour manifesto is released, the commitments regarding the NHS, the economy, improved housing, and employment will have been fulfilled, allowing the public to overlook the tax increases imposed on them to achieve these goals.

Starmer emphasized that this is an election of change, and he believes it will be this budget, rather than his manifesto, that truly demonstrates that.

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Robert Jenrick has revealed that the entire Conservative cabinet was aware that the Rwanda Bill was flawed. During his appearance on Politics Hub With Sophy Ridge, Jenrick avoided specifying which cabinet members doubted the bill's effectiveness. Additionally, he faced questions about his directive to cover up a Mickey Mouse mural and about his competitors in the leadership race.

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Wednesday, October 30, 2024, 11:

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Conservative leadership contender Robert Jenrick stated that all cabinet members were aware that the Rwanda deportation legislation was unfeasible.

During an interview on the Politics Hub With Sophy Ridge, the ex-Home Office minister suggested that all top officials from the previous government doubted the effectiveness of the proposal to relocate asylum seekers to Kigali.

At the close of 2023, Mr. Jenrick stepped down from his position in Rishi Sunak's administration, stating that he felt the proposed policies were not sufficiently comprehensive.

Political update: Final moments before budget announcement approach

In an interview with Sky News, Mr. Jenrick disclosed the reasons behind his departure from the government, stating, "At that juncture, I was faced with two options: either to champion a bill in parliament that I was aware was flawed—a sentiment shared by the entire cabinet; or to resign from my position and argue against it in parliament, staying true to my own principles and transparent with the public."

When questioned whether he believed that all members of the cabinet, comprising the prime minister, home secretary, and other top ministers, were aware that the Rwanda Bill was doomed to fail, he responded, "I believe that everyone engaged in making that decision was fully aware that the policy would not be successful, yet they chose to ignore it."

"I refused to serve as that kind of minister."

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Mr. Jenrick refrained from naming specific cabinet members, other than himself, who doubted the effectiveness of the plans.

He has expressed his desire for a legally mandated limit on immigration and to withdraw from the European Convention on Human Rights.

Discover further details on the Conservative Party leadership race. Badenoch proposes roles for all competitors. Final duo caught in verbal clash. Exploring who Robert Jenrick is. Getting to know Kemi Badenoch.

Mural of Mickey Mouse

Sophy Ridge questioned Mr. Jenrick regarding one of the more contentious incidents during his tenure at the Home Office – his decision to have a Mickey Mouse mural at a reception facility for young asylum seekers covered up.

Throughout the campaign, he has stated he wouldn't repeat his previous actions, yet he has consistently declined to offer an apology.

"He emphasized his commitment to always acting with compassion towards children."

"During my tenure as the minister in charge of immigration, I made significant efforts to improve the care of unaccompanied minors."

"When I took office, we found them placed in basic hotel accommodations in coastal cities. We shut those facilities and moved the youth into foster homes and better-suited living arrangements."

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Mr. Jenrick expressed alarm over numerous adults entering the UK under the guise of being minors, which he said puts genuine children at significant risk.

Employment opportunities for seasoned competitors

During the interview, the discussion also covered if Mr. Jenrick would consider appointing fellow MPs aspiring for leadership roles to positions in his shadow cabinet, should he emerge victorious.

"Mr. Jenrick expressed his intention to have the top players on the field."

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He also mentioned that Kemi Badenoch, the other finalist, "deserves a prominent role where she can be fully involved in revitalizing and reforming the Conservative Party."

James Cleverly, who secured third place, is invited to serve as the deputy to Mr. Jenrick if he chooses, since he is considered "a unifying presence."

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Fiscal Overview '24: Key Points to Understand

Wednesday, October 30, 2024, 07:37, UK

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Sky News' assistant political chief Sam Coates and Politico's Jack Blanchard present a daily overview of upcoming political events, all in less than 20 minutes.

Today marks the presentation of the first Labour budget in over a decade by Chancellor Rachel Reeves. She aims to address a £40 billion deficit, with further information on the role of tax increases in this effort.

Despite government assurances that there are no surprises in store, Jack and Sam advise keeping an eye on her investment declarations and market responses.

The debate surrounding the limitation on bus ticket prices reveals the difficulties that the Labour party is encountering in the initial stages of their governance.

To reach Jack and Sam, message them on WhatsApp at 07511 867 633, or send an email to jackandsam@sky.uk.

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Starmer faces criticism for 'bus tax' after fare cap increase to £3

The prime minister has offered a preview of the upcoming budget set to be presented by Chancellor Rachel Reeve on Wednesday.

Political journalist @fayebrownSky

Monday, October 28, 2024, 2:

Labour Party leader Sir Keir Starmer has announced that the upcoming budget will include tax increases to avoid a severe resurgence of austerity measures and to restore public services.

During a presentation in Birmingham, the Prime Minister revealed that the current £2 bus fare cap will increase to £3, and an additional £240 million will be allocated to initiatives aimed at boosting employment.

Politics Live: Prime Minister denounces 'appalling' video of Labour MP

After weeks of rumors regarding the government's strategy to boost economic growth and address a £40 billion deficit in the country’s budget, it is set to present its initial financial plan this Wednesday.

Previewing his future plans, Sir Keir remarked, "We must accept the stark truth of our financial situation."

"Maintaining stability to avoid disorder. Leveraging loans to fuel sustained expansion. Increasing taxes to avert cutbacks and restore government programs."

Sir Keir did not detail which taxes might increase, however, it is generally anticipated that employer national insurance contributions could rise, with potential hikes in capital gains and inheritance taxes also being considered.

Government officials have been consistently challenged to clarify what they mean by "working people" following the Labour Party's commitment in their election manifesto to not raise taxes on this group, specifically promising no increases in VAT, national insurance, or income tax.

Explore further: What can we expect from the upcoming budget? Prime Minister refutes claims of targeting middle-class Britain

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Confronting detractors, the prime minister stated that reverting to austerity measures would be "catastrophic" and "harmful".

"Unlike 1997, when the economy was relatively stable but public services were struggling, today's circumstances are different."

"Unlike the situation in 2010, when public services were robust despite frail public finances, today's circumstances differ."

"We must address both aspects of this situation. The circumstances are unlike anything we've encountered before."

Sir Keir announced that the upcoming budget, presented by Chancellor Rachel Reeves, will allocate resources to community services aimed at boosting employment.

He stated that the UK remains the sole G7 nation where the level of economic inactivity surpasses pre-COVID figures.

"He emphasized that this is detrimental not only to our economy but also to everyone who is denied opportunities."

"The chancellor is set to declare a £240 million investment aimed at supporting local programs designed to assist individuals in returning to employment."

Strongest signal so far that tax increases are on the horizon

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The prime minister's language has never been more blunt ahead of the critical budget announcement set for Wednesday.

He reiterated the theme of "difficult decisions," indicating that the reduction in winter fuel subsidies was merely the start of more challenges to come.

In the most explicit statement yet, it's apparent that tax increases are on the horizon, as Sir Keir Starmer has deemed them essential to avoid austerity measures.

It was evident that his definition of "working people" referred to individuals who are barely making ends meet, and he was committed to prioritizing their needs.

The stance was firm and unwavering, yet as the budget draws near, it introduces a political hazard. Individuals outside of the specific group targeted – including entrepreneurs, retirees, and more – are left questioning the extent of the financial impact they will face.

In the subsequent question-and-answer session, he verified that the £2 bus fare cap is set to increase by 50%.

He mentioned that the prior administration had allocated funds for the existing cap only until the end of 2024, "which marks the conclusion of financial support for the £2 fare limit."

"He emphasized the significance, especially in rural areas that depend heavily on bus services."

"That's the reason I can confidently tell you today that our upcoming budget will include a measure to cap bus fares at £3 until the end of 2025, as I understand its significance."

The Liberal Democrats have criticized the change, calling it "a bus tax" and have highlighted bus services as "essential to economic life in communities nationwide."

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Rachel Reeves pledges additional funding for an extra two million NHS appointments annually. Health Secretary Wes Streeting cautions that the new funds might not halt preventable deaths this winter.

Political journalist @Journoamrogers

Tuesday, October 29, 2024, 7:

The government has announced that the budget will allocate billions of pounds in additional funds to the NHS, enabling the health service to offer two million more appointments annually.

Chancellor Rachel Reeves is set to announce the allocation of £1.5 billion for new surgical centers and scanning equipment, as well as an additional £70 million for radiotherapy devices.

Since July, a further £1.8 billion has been allocated to support elective appointments.

Ms. Reeves and Health Secretary Wes Streeting acknowledged that their measures won't fully address the issues facing the NHS. Speaking to Sky News, Mr. Streeting admitted, "This winter, there will still be people waiting on trolleys in corridors. I can't fix everything quickly."

In her remarks before Wednesday's budget announcement, Ms. Reeves referred to the NHS as "Britain's lifeline" and committed to addressing the "neglect and underfunding" it has experienced over the last ten years.

Politics Live: Prime Minister Criticizes 'Appalling' Video Involving Labour MP

She cautioned that her budget, expected to include tax increases to address a rumored £40 billion deficit in public finances, would probably not "reverse 14 years of deterioration."

During a press briefing at St George's Hospital in Tooting, south London, on Monday, Ms. Reeves stated, "I believe it's unrealistic to expect that a single budget could reverse 14 years of harm."

"In this budget, we are allocating the required funds to fulfill our pledge of adding 40,000 more appointments each week. This will help tackle the significant backlog. Additionally, we are increasing the capital budget to its highest point since 2010, which will allow for investment in new scanners and radiography equipment."

Stay informed with the most recent updates from the UK and globally by tuning into Sky News.

During a shared outing with Ms. Reeves, Mr. Streeting acknowledged that the additional funds may not avert preventable fatalities or another crisis this winter.

"He admitted that there might be individuals on trolleys and in hallways this winter," he stated.

"People already occupy that role today."

He stated: "It's unrealistic to expect that we can simply use a Labour magic wand to solve all these issues this winter.

"This winter will continue to present genuine challenges, but we acknowledge the extent of these issues. We are actively assisting system leaders, especially in areas that typically face greater difficulties during the winter months, in efforts to reduce risks this season."

The chancellor pointed out that the hospital staff were still utilizing equipment procured during the previous Labour government's term, which was due for replacement.

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"She emphasized that outdated tools not only undermine the productivity and efficiency of highly qualified staff, but also their effectiveness. Therefore, she argued, alongside financial investment, there is a critical need for modern equipment and reforms within the health service to fully utilize the capabilities of the workforce in 2024," she stated.

Earlier today, Sir Keir Starmer announced that the upcoming budget will include tax increases to avoid what he described as a "devastating return to austerity" and to restore public services.

The prime minister did not detail which taxes would be raised, however, it is generally anticipated that employer national insurance contributions will increase, along with potential hikes in capital gains and inheritance taxes.

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Discover further: Video of Labour MP being punched termed 'shocking' by Starmer. Budget 2024: Expected inclusions and exclusions.

Officials have continually been asked to clarify what they mean by "working people" following the Labour Party's commitment in its election manifesto to not raise taxes on this group. This pledge specifically excludes any increases in VAT, national insurance, and income tax.

At the upcoming Wednesday event, it is expected to be announced that the current £2 bus fare cap will increase to £3, and an additional £240 million will be allocated to initiatives aimed at boosting employment.

The decision has faced strong backlash from critics, with Conservative leadership contender Robert Jenrick labeling it as "clueless".

A spokesperson for the Conservative Party stated: "We have provided unprecedented funding, significantly improved productivity, and introduced the inaugural NHS Long Term Workforce Plan to aid the health service in its recovery from the pandemic and to address the challenges of an increasing and aging population.

"If the Labour Party truly intends for the NHS to effectively serve its patients, they need to persist with the reform rather than initiating additional consultations. The Health Secretary vowed that there would be no more funding without changes — so what has happened to that pledge?"

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Kemi Badenoch indicates that she might include all six Conservative leadership contenders in her potential shadow cabinet lineup. Speaking on the Politics Hub with Sophy Ridge, the shadow housing secretary asserted that she is assertive in her political role and aims to steer the nation toward more conservative values.

Political journalist @Journoamrogers

Tuesday, October 29, 2024, 11:

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Kemi Badenoch has proposed appointing all six of her fellow contenders for the Conservative leadership to positions in her shadow cabinet, should she win the leadership contest.

The Conservative Party leadership candidate, vying with Robert Jenrick for the party's top position, stated she "did not know" whether they would appreciate the positions she plans to assign and confirmed that no offers have been made yet.

The present opposition housing secretary, previously the business secretary under the Conservative government, avoided answering inquiries about her aspirations for the prime ministership. Instead, she stated that her primary goal was to "increase Conservative influence across the nation" in order to achieve "improved economic growth" and a "better quality of life" for all citizens.

She expressed to Sophy Ridge on Politics Hub, "I believe it's not about aspiring to be the prime minister.

Latest in Politics: Speaker Sternly Reprimands Chancellor Ahead of Budget Announcement

"I believe it's not a prize or a contest victory. It's truly a demanding role that calls for significant dedication."

Recognizing the negative aspects of the position, such as its impact on her personal and family life, Ms. Badenoch stated that becoming prime minister "alters your life permanently. It affects your family's life as well. Therefore, I am extremely cautious about declaring, 'I want to be prime minister'."

She continued, "I fully understand that life can take a turn for the worse under various conditions. However, my greater concern lies with the future of our nation and the outcomes if we don't manage to change course."

Ms. Badenoch is commonly regarded as the leading contender to replace Rishi Sunak as the Conservative leader after the party's unprecedented poor performance in the general election last July.

Stay informed about the most recent developments in the UK and globally by tuning into Sky News.

The contest between her and Mr. Jenrick, who previously oversaw immigration, has grown more bitter following his statement that the party would perish if she were to lead.

The statement followed Ms. Badenoch's criticism of Mr. Jenrick's "integrity," where she claimed she was more suitable for the leadership position because she had not been dismissed due to any hint of misconduct.

The remarks given to The Telegraph newspaper seemed to criticize Mr. Jenrick's role in a planning disagreement during his tenure as housing secretary in 2020, a job from which he was subsequently dismissed by Boris Johnson.

Ms. Badenoch faced questions regarding her credibility following her confession that in 2008, she had infiltrated Baroness Harman's website and uploaded a photo of ex-Prime Minister Boris Johnson.

Ms. Badenoch replied to Ridge by admitting she had committed a minor infraction similar to a speeding violation, adding, "I do enjoy playing pranks… I have a sense of humor."

The ex-minister acknowledged that although she found it quite humorous before becoming an MP, her perspective changed upon entering parliament, where she witnessed the significant challenges MPs face.

Ms. Badenoch shared insights into her personality, stating she is not a "wallflower." She characterized herself as "straightforward," "direct," and "self-assured."

She also responded to some of the negative stereotypes directed at her, including being labeled as "aggressive" and "lazy."

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She expressed a desire to steer clear of leveling charges of racism and misogyny, preferring to "assume the best in everyone."

As we approach this week's budget discussions, which are expected to focus heavily on the nation's public services, Ms. Badenoch expressed her view that the UK does not generate sufficient revenue to support the level of public services desired by its citizens.

"At the moment, our expenditures on debt interest exceed what we allocate for defense," she stated.

"Our income is insufficient to meet our expenses, and we must overhaul both the state and the system to fulfill public demands."

Concerning the financing of the NHS, she mentioned that "all options should be considered for discussion."

She also criticized certain new proposals from the Labour government, such as prohibiting smoking in pub gardens and the introduction of a football regulator, noting that the prior Conservative government had initiated plans for the latter.

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Discover more: Badenoch responds to Tory MP Jenrick's shift from center to right-wing positions

"She expressed her belief that the state overly simplifies many issues."

"Is it necessary to prohibit smoking in the outdoor areas of pubs? Should there be a regulatory body for football?

"Each of these actions might seem small individually, but when you consider all that the government is undertaking, the overall effect seems overwhelming."

"Much of this doesn't involve public services. We continue to add layers of bureaucracy and increase regulations. Despite this, there's no noticeable enhancement in public services."

She added, "I believe that's an area where we, as a party, made a mistake – us Conservatives adhered to this approach.

"This approach is what I refer to as the Blairite third way strategy. It might have been effective back in 1997, but today, it's no longer functional."

The voting by party members will conclude at 5pm on Thursday, October 31, and the announcement of the winner will take place on Saturday, November 2.

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Kemi Badenoch hints at potential cabinet positions for all six Conservative leadership contenders

The Shadow Housing Secretary, speaking on Politics Hub with Sophy Ridge, emphasized that she is not a "wallflower" and that her primary goal is to enhance the country's "Conservative" values.

Political journalist @Journoamrogers

Tuesday, October 29, 2024, 11:

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Kemi Badenoch has indicated that she plans to include all six contenders from the Conservative leadership contest in her shadow cabinet should she win the leadership position.

The Conservative Party leadership contender, vying with Robert Jenrick for the position, stated she was unsure if they would appreciate the assignments she planned to give and confirmed that no formal offers had been made yet.

The present shadow housing secretary, formerly the business secretary under the Conservative government, evaded inquiries about her aspirations for the prime ministership. Instead, she stated that her primary goal was to further "Conservatize" the nation, aiming to achieve "enhanced growth" and an improved quality of life for all citizens.

She expressed to Sophy Ridge on Politics Hub, "I believe it's not about aspiring to be prime minister.

Latest in Politics: Speaker Sternly Reprimands Chancellor Ahead of Budget Announcement

"I believe it's more than just receiving a prize; it's not akin to coming out on top in a contest. It truly involves a significant commitment and numerous sacrifices."

Recognizing the negative aspects of the position, such as the impact it could have on her personal life, Ms. Badenoch noted that becoming prime minister "alters your life permanently. It also alters your family's life. Therefore, I am quite cautious about declaring, 'I want to be prime minister'."

She stated, "I fully understand that life can take a turn for the worse under various conditions. However, my greater concern lies with the future of our nation and the consequences if we don't manage to change our course."

Ms. Badenoch is generally considered the leading candidate to replace Rishi Sunak as the Conservative leader after the party's unprecedented poor performance in the July general election.

Stay informed on the most recent developments from the UK and globally by tuning into Sky News.

The competition between her and Mr. Jenrick, who previously served as an immigration minister, has grown more bitter following his statement that the party would perish if she were to lead it.

The statement followed Ms. Badenoch's criticism of Mr. Jenrick's character, as she implied she was more suitable for the leading position because she had not been dismissed over any hint of misconduct.

The remarks, given to The Telegraph, seemed to critique Mr. Jenrick's role in a planning controversy during his tenure as housing secretary in 2020, a role from which he was eventually dismissed by Boris Johnson.

Ms. Badenoch faced questions regarding her integrity following her confession that in 2008, she had breached the security of Baroness Harman's website, inserting an image of then-prime minister Boris Johnson.

Ms. Badenoch replied to Ridge by admitting she had made a minor legal mistake, comparable to a traffic violation, and added, "I enjoy pulling pranks… I have a sense of humor."

The ex-minister acknowledged that although she found it humorous before becoming an MP, now that she is in parliament, she understands the difficulties MPs face.

Delving into her personality, Ms. Badenoch revealed that she is not a "wallflower" and characterized herself as "direct," "outspoken," and "self-assured."

She also responded to certain negative stereotypes directed at her, including claims that she was "aggressive" and "lazy".

For optimal video playback, it is recommended to use the Chrome browser.

She expressed a desire to refrain from leveling charges of racism and misogyny, citing her inclination to "think the best of everyone."

As the budget for this week approaches, with a focus on the nation's public services, Ms. Badenoch expressed her view that the UK does not generate sufficient revenue to meet the public's demand for services.

"Currently, our expenditure on debt interest surpasses our defense spending," she stated.

"Our income is insufficient to meet our expenses, and we must overhaul both the state and the system to fulfill the public's demands."

She stated that when it comes to NHS funding, "no options should be excluded from consideration."

She also criticized several new proposals introduced by the Labour government, such as prohibiting smoking in pub gardens and the idea of establishing a football regulator, noting that the earlier Conservative government had initiated plans for the latter.

Stay ahead with the latest Breaking News

Download the Sky News application at no cost

Discover further: Badenoch responds to Tory MP Jenrick's shift from center to right

"She believes that the government oversimplifies many issues," she stated.

"Is it essential to prohibit smoking in pub gardens? Is it necessary to have a regulator for football?"

"Individually, these elements might seem minor, but taken together, the overall effect of the state's actions appears to be overwhelming."

"Many of these elements aren't public services. We continue to add layers of bureaucracy and increase regulations. Despite this, there's no noticeable improvement in public services."

She added, "One area where we, as Conservatives, missed the mark is in our adherence to this particular approach."

"I refer to it as the Blairite third way approach. Perhaps it was effective back in 1997, but today, it's no longer applicable."

The voting process for party members will conclude on Thursday, October 31 at 5 p.m., with the announcement of the winner scheduled for Saturday, November 2.

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Footage captures events leading up to MP Mike Amesbury striking a man in Frodsham

Mike Amesbury reported himself to Cheshire Police regarding the incident on Saturday, leading to his suspension from the Labour Party while an investigation is underway.

Monday, October 28, 2024 8:20

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Footage has been released depicting the events leading up to Labour MP Mike Amesbury striking a man outdoors.

The video captures a tense standoff lasting around 30 seconds, where they are seen a short distance from each other, both with hands in their pockets, until Mr. Amesbury abruptly strikes the other individual in the face.

The specifics of their conversation remain unknown, however, the politician alleges that he was "confronted and threatened on the street after spending the evening with friends."

Prime Minister Sir Keir Starmer characterized the video of the event as "shocking." The Labour MP has been temporarily removed from the party while an investigation is underway.

Cheshire Police reported that a 55-year-old man was interviewed voluntarily under caution and has been "released pending further inquiries."

The event occurred early Saturday morning on Main Street in Frodsham.

Previously disclosed video from a different perspective captures Mr. Amesbury striking the individual multiple times after he had knocked him to the ground, while bystanders step in.

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In a different segment, he is heard yelling, "You'll never threaten me again."

Mr. Amesbury gestures towards the individual and states, "Yes, I am the MP, I am, and you're not going to threaten the MP ever again, are you?"

For further details, visit Sky News: Tommy Robinson imprisoned for contempt of court confession; 'Cult' followers imprisoned over plot to kidnap coroner.

Stay informed about the most recent developments in the UK and globally by tuning into Sky News.

In a statement, the MP revealed that he personally reached out to the Cheshire Police to report the events of the incident.

He stated that he wouldn't be commenting any more on the matter, but he would assist the police if necessary.

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In July of the previous year, a man aged 56 was found guilty of harassing Mr. Amesbury at his local office.

Authorities noted that he was observed peering through the glass and inquiring with guards about the robustness of their security measures.

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Labour is positioning itself to outdo the Conservatives on tax issues, but will it be able to persuade the electorate? Sir Keir Starmer is starting to argue that Labour intends to increase taxes significantly and borrow more in order to fund public services.

Assistant Political Editor @SamCoatesSky

Tuesday, October 29, 2024, 7:

Keir Starmer and Rachel Reeves are gearing up for a significant battle following Wednesday's budget announcement—a confrontation they believe could define their strategy leading up to the next election.

They are also eager to sidestep any scenario that might jeopardize their administration and cause the next hundred days to mirror the initial ones more closely than they would prefer.

By week's end, it will be evident which option has taken the lead.

Latest in Politics: Badenoch Expresses Concerns Over Potential Negative Impact on Personal Life if Elected Prime Minister

The Prime Minister is keen to make the budget the focal point of a revitalized political strategy, aiming to intensify and refocus criticism on their primary rival, the Tories.

Decimating the Labour Party in 2010 paved the way for a Conservative victory in 2015; today, Labour aims to retaliate with similar tactics.

Central to the budget debate is a contention that the prime minister and chancellor avoided during the election—namely, that the Labour Party plans to significantly increase taxes and borrowing to fund public services throughout this parliamentary term.

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Former Conservative MP Aaron Bell was found to have engaged in bold and intoxicated sexual misconduct at a parliament bar, according to a watchdog report.

Kemi Badenoch indicates that she might appoint all six Conservative leadership contenders to positions within her prospective shadow cabinet.

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Now securely established with a significant majority, they feel they possess the political leeway to present their argument, and can leverage it beneficially in a manner previously unattempted before July 4.

Sir Keir eagerly initiated a confrontation with the Conservatives by heading to Birmingham today, where he clearly distinguished his stance from the opposition on the most contentious aspects of the budget.

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He is advocating for increased investment rather than cutbacks (to support further borrowing), higher taxes or reduced spending (to prepare for £35 billion in additional taxes), and transparency rather than financial unrealities (to acknowledge the immediate difficulties in certain areas of Whitehall).

Labour is confident in their ability to prevail in these debates. Conversely, the Conservatives are skeptical that their rivals will succeed. The outcome will become clear after Wednesday.

Yet, a potentially more damaging scenario for Labour following this budget is the possibility that its primary conflict may arise internally rather than with its political adversaries. Alarmingly, some within the party and throughout Whitehall are concerned that this could indeed happen.

Initially, concerns about unkept commitments loom large. Several Labour MPs remain skeptical that Sir Keir and Ms Reeves can successfully persuade the electorate that increasing employer national insurance does not violate their campaign pledges.

However, the greater concern is the extent of unforeseen issues in the budget that could provoke a strong negative reaction.

Stay informed with the most recent updates from the UK and international developments by tuning into Sky News.

Ms. Reeves has informed her cabinet peers that a goal of 2% in budget cuts across government departments must be achieved, resulting in savings amounting to billions.

Insiders indicate that these reductions will become apparent to the public, although it may take several months for the effects to be fully realized due to the intricacies of the governmental budgeting procedure.

Discover further: Anticipations for Budget 2024: What can we expect, and what's off the table? Keir Starmer describes video of Labour MP involved in an altercation as 'shocking'.

Today brought to light a single instance: the increase in bus fares that was initially resisted by the Department for Transport.

The jump from £2 to £3, marking a 50% rise, serves as a potential indicator for voters, particularly backers of the Labour Party, to assess the impact on the working class. This move contradicts the Prime Minister's pledge to safeguard the interests of those he professes to prioritize in his actions.

Sources indicate that there are additional risky zones yet to be revealed, and further hardship is anticipated.

Ms. Reeves and Sir Keir have reached an apex of influence during this budget period, possessing unprecedented flexibility that they may not experience again.

Will this lead to the debate they are hoping for following Wednesday?

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