Minimum wage set to increase nearly 7% – as chancellor finalizes budget with tax increases

The government plans to raise the minimum wage for young workers as part of an effort to standardize pay for all adults at the same level. Apprentices and those under 18 will see their wages rise by 18%.

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Tuesday, October 29, 2024, 7:

The hourly minimum wage for individuals 21 and older is set to increase by 6.7%, reaching £12.21, while workers aged 18 to 20 will see their wages rise by 16.3% to £10 per hour.

Chancellor Rachel Reeves has announced the upcoming hikes, which are set to be implemented starting April 2025, ahead of the budget presentation this Wednesday.

According to the government, employees aged 21 and over who work full-time will receive an additional £1,400 annually due to the rise in the national living wage.

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Rise in Minimum Wage

Workers earning the minimum wage, specifically those aged 18 to 20, will see a more significant wage boost. This change is part of a broader government initiative aimed at establishing a uniform minimum wage rate for all adults, moving away from the existing multi-level system.

The government states that with the increase in hourly wage from £8.60 to £10, a full-time employee will earn an additional £2,500 annually.

Ms. Reeves stated, "The administration pledged a true living wage for the workforce. This increase in salary for countless employees marks a notable advancement in fulfilling that commitment."

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Deputy Prime Minister Angela Rayner stated, "A fair day's work should be met with fair day's pay."

"Our adjustments will result in a salary increase that will assist countless low-income workers in affording basic needs, while also offering unprecedented pay raises for 18-year-olds."

The government has declared upcoming pay raises, following guidance from the Low Pay Commission, just before a budget release that promises to shield employees from additional tax deductions on their earnings.

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.

The Low Pay Commission operates independently to provide guidance to the government, but its scope of work is defined by the current government.

Explore further details on the budget: Additional allocations announced for an extra two million NHS consultations. £2 bus ticket price set to rise by 2025. Budget to confront the 'stark realities of economic conditions', says Starmer. What can we expect from the upcoming budget?

The recent rise in baseline salaries and the anticipated hike in employers' national insurance contributions, as outlined in the budget, have sparked worries about the potential strain these changes will place on business payroll expenses.

Numerous people anticipate that the increase in national insurance will lead to reduced net salaries for employees.

John Foster, who holds the position of chief policy and campaigns officer at the Confederation of British Industries, expressed that the escalating minimum wage rates are likely to complicate matters for companies as they struggle to allocate resources for investing in technology and innovation. Such investments are crucial for enhancing productivity and achieving long-term wage growth.

The rise in the national living wage this year is less than what it was in the previous two years, where individuals aged 21 and older experienced an annual wage increase of over 9%.

Yet, the rise is significantly higher for the younger segment of the workforce.

Apprentices and individuals younger than 18 will receive an 18% raise, with their hourly wage rising from £6.40 to £7.55.

Business Secretary Jonathan Reynolds stated, "Ensuring fair compensation and quality jobs benefits not only British workers but also the business sector in the UK."

"This administration is transforming citizens' lives positively as we understand that investing in our workforce enhances productivity, resilience, and ultimately fortifies our economy, setting it on a path for growth."

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According to the government, 3.5 million individuals are set to receive a salary increase in the coming year.

Baroness Philippa Stroud, who leads the Low Pay Commission, stated, "The government has explicitly expressed its goals regarding the national minimum wage and its significance in aiding the living standards of workers.

Employers are grappling with a more than 20% increase in the adult wage rate over two years, compounding their financial pressures with additional strains on their cost structures.

"Our responsibility involves striking a balance, ensuring that the National Living Wage offers a reasonable income for those with the lowest salaries, while also considering economic conditions."

"The new rates ensure an actual increase in pay for those earning the least. Younger employees will experience significant raises at their minimum wage level, gradually closing the gap with the adult rate that has developed over the years."

Paul Nowak, the chief of the Trades Union Congress, stated: "The government is fulfilling its pledge to increase the rewards of working.

"This raise will significantly impact those earning the least in the nation, especially during a period when housing costs, utility bills, and mortgage rates are elevated."

He also mentioned that "young employees should receive proper wages for their work."

"He stated that an enormous pay disparity is affecting countless young employees due to an antiquated and biased system."

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Budget 2024: Small enterprises urge the government to 'substantially boost' aid to avoid shutdowns

In the upcoming budget announcement by the chancellor on Wednesday, the government plans to hike the minimum wage by 6.7% and likely raise the national insurance contributions for employers.

Political correspondent @alixculbertson

Wednesday, October 30, 2024, 7:

Small enterprises are urging the government to substantially raise the employment allowance to help them avoid closure in the wake of the budget announcement.

Chancellor Rachel Reeves plans to increase national insurance payments made by employers, even though she had pledged not to hike taxes for working individuals, as a measure to address a £40 billion deficit in the upcoming Labour government's budget announcement this Wednesday.

The administration has declared that starting in April, the national living wage, which is the lowest wage that can be legally paid to individuals aged 21 and older, will rise by 6.7% to £12.21 per hour. Meanwhile, workers aged 16-20 will see their minimum wage increase to £10 per hour, marking a 16.3% hike.

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Entrepreneurs have informed Sky News that the recent surge in operational costs, along with increases in both the minimum wage and employer national insurance contributions, will significantly impact many businesses.

Michelle Ovens, who established Small Business Britain to support the 5.1 million small businesses across the UK, cautioned that an increasing number of these enterprises might collapse if they keep encountering such challenges without governmental assistance.

She stated that the hospitality sector is likely to be one of the most severely affected industries. Meanwhile, a hair salon owner nearly broke down while explaining that these alterations might represent a devastating blow to his business.

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Ms. Ovens and Tina McKenzie, who is the policy chair at the Federation of Small Businesses, urged the government to raise the employment allowance as a measure to alleviate stress and safeguard businesses.

Under the employment allowance program, businesses that have an annual national insurance expense under £100,000 are eligible for an exemption on the first £5,000 of employers' national insurance contributions.

They suggested that raising the threshold for national insurance exemptions for small business owners could mitigate the impact.

"We've reached our limit"

Ms. McKenzie believes that prolonging the reduction in business rates would benefit small enterprises. Since 2020, the hospitality sector has enjoyed a 75% reduction in business rates, though this is set to expire in April of the following year.

Toby Vickers, who established the Salon Employers Association and oversees The Chapel Salons in London and the South East, expressed that the persistent rise in VAT, employers' national insurance, and the minimum wage has rendered his sector "unsustainable." He believes the most recent adjustments might just be "the final nail in the coffin."

Choking back tears, Mr. Vickers spoke to Sky News' Business Live, saying, "This could lead to people losing their homes, their apprenticeships, and their chances for advancement because the government has ignored [our pleas]."

"We're overwhelmed with feelings; we've reached our limit."

Learn more: Major grocery chains could suffer a £200 million impact from the chancellor's increase in National Insurance. How the budget might further complicate matters for many.

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"Small enterprises serve as the essential lifeline"

Sanjay Aggarwall, who runs the Spice Kitchen in Liverpool—a business specializing in spice tin gift sets—expressed to Sky News his worries over the recent bus fare hike to £3, a 50% rise. He noted that this increase is troubling not just for potential customers' spending power but also because his warehouse staff depend on public transportation for their commute.

He planned to inform the chancellor, "Small and medium-sized enterprises are the backbone of this nation, employing 61% of the workforce. It's crucial that they are a priority in decision-making processes."

Ms. Ovens, representing Small Business Britain, informed Sky News, "Small businesses have experienced steep cost increases universally in recent years, so another hike in the minimum wage will significantly impact many, but not all, businesses."

Approximately 16% of employees in small businesses earn the minimum wage, with a significant concentration in sectors like hospitality. These industries will face additional challenges due to the increase in national insurance contributions.

"To sustain the vital pillars of our main streets and neighborhoods, it's crucial to increase the employment allowance and extend the relief on business rates. Continuously burdening small businesses will only perpetuate the increasing trend of business closures.

"We anticipate further provisions in the budget to acknowledge the critical contribution of small businesses to economic development and expansion."

Ms. McKenzie, representing the Federation of Small Businesses, commented, "The simultaneous increase in employer national insurance contributions and the higher national living wage demands significant government action to boost the employment allowance. Lowering the taxes that employers pay on wages is the key to achieving sustainable wage increases that employees will truly notice."

Sky News has reached out to the Treasury seeking a statement.

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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.

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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.

Stay informed on the newest developments both domestically and internationally by tuning into Sky News.

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.”

Ed Conway Analysis: Could Budget Maneuvering Spook Investors?

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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

👉 Tune into the Politics At Jack And Sam's podcast on your favorite podcast platform👈

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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Budget 2024: Key Highlights

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

👉 Tune into the 'Politics At Jack And Sam's' podcast on your favorite podcast platform! 👈

Sky News' assistant political editor Sam Coates and Politico's Jack Blanchard deliver 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 bridge a £40 billion funding shortfall, with further information on how increases in taxes will contribute to this effort.

Amid government claims of no surprises in store, Jack and Sam advise keeping an eye on her investment declarations and monitoring market responses.

The debate over limiting bus fares reveals much about the difficulties Labour is encountering during their initial time in office.

Reach out to Jack and Sam via WhatsApp at 07511 867 633 or shoot them an email at 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

Political reporter

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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