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The chancellor has confirmed a 2p cut to national insurance and increased child benefit thresholds.

In the budget, Jeremy Hunt said “permanent cuts in taxation” were possible because of the progress made in bringing down inflation – with forecasts suggesting it will fall to the target level of 2% within months.

More parents will be paid child benefit after the £60,000 threshold, beyond which no payment is currently made, will be extended to £80,000 from next month.

Budget live: No rabbit out of the hat on income tax from chancellor

At present if one parent earns £50,000 a year child benefit payments are reduced. Following Mr Hunt’s announcement such payments won’t be tapered off until a parent is paid £60,000 annually.

The policy change will help 170,000 families with children under 16, or under 20 if they are in full-time education or training, Mr Hunt said.

Eligible parents receive £24 a week for their first child and £15.90 for other each of their other children. These sums will rise to £25.60 and £16.95 a week next month.

More on Budget

Also due to change is the way child benefit is assessed.

It will move away from the present system, where just one parent earning £50,000 means the entitlement is tapered off, to whole household eligibility, whereby the income of parents is looked at together.

Read more:
What key budget terms mean – fiscal drag, headroom and tax thresholds
The key announcements of the 2024 Budget

But this new joint assessment is won’t take effect until April 2026.

Average savings of around £1,300 will be made by nearly half a million families next year of the changes, Mr Hunt said.

Mr Hunt indicated plans to completely scrap national insurance contributions, branding it “double taxation”. National insurance brought in around £177bn in the 2022-23 period in tax.

Mr Hunt spoke about cutting taxes to increase growth, and the official Office for Budget Responsibility (OBR) forecast predicted that living standards will grow faster than expected.

But real disposable household income is not expected to recover to pre-pandemic levels until the 2025-26 period, after the next election.

And the tax burden is also set to continue to rise – albeit at a slightly reduced level when compared to last autumn’s forecast.

In total, the government will take £19.7bn more in tax by 2029 than forecasted in March 2021, even when the cuts to national insurance are included, due to fiscal drag.

Scrapping the “non-doms” regime, which allowed certain wealthy individuals to avoid paying tax on their foreign income, is expected to raise £2.7bn a year.

WHAT IS THE NON-DOM TAX STATUS

Removing the non-dom tax regime is a move that could be seen as being straight out of Labour’s playbook, although the chancellor suggested the Opposition got the idea from his predecessor Nigel Lawson in the late 1980s.

Potentially designed to take the wind out of Labour’s sails, it removes a clear dividing line between the parties’ policies.

A non-dom is someone who lives in the UK but whose permanent home is abroad.

The term is short for non-domiciled individual.

Under the UK’s current regime they only pay tax on money earned in the UK, their income and wealth from outside the UK isn’t taxed.

As a result, rich people make considerable savings if they choose to be tax domiciled abroad.

Non-doms can benefit from the tax arrangement for up to 15 years.

But that’s to change.

Labour wanted this to be cut just to four years. And that’s just what Chancellor Jeremy Hunt has done.

For those currently using the non-dom tax system “transitional arrangements” will be made, Mr Hunt said, including a two-year period in which individuals will be encouraged to bring wealth earned overseas to the UK.

This measure will attract an additional £15bn of foreign income and gains and generate more than £1bn of extra tax, he said.

Rishi Sunak was recused from the decision on non-dom tax to avoid any perceived or potential conflicts of interest.

In terms of spending, Mr Hunt earmarked almost £6bn for the NHS – with artificial intelligence set to be used to “cut form-filling for doctors” in a digitisation drive.

A 5p cut to fuel duty will be extended for another 12 months – with the government “backing the Great British pub” by holding the price of beer, wine and spirits steady until February 2025.

Meanwhile, Britons will be able to invest up to £5,000 in UK companies tax-free – in addition to their current ISA allowance – through a new “British ISA”.

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Chancellor cuts national insurance in budget

He also announced:

• The High Income Child Benefit Charge threshold will increase from £50,000 to £60,000

• A new excise duty on vaping, as well as a one-off increase to tobacco duty

• The higher capital gains tax rate on property will fall from 28% to 24%

• The VAT registration threshold will rise from £85,000 to £90,000 from 1 April – the first increase in seven years

• A fund aimed at supporting vulnerable households with the cost of living will be extended by a further six months

• The UK economy is expected to grow by 0.8% this year – and 1.9% in 2025

• Hundreds of millions of pounds to tackle “historic underinvestment in our nations and regions”

The 2p cut to national insurance was widely trailed – and follows a previous 2p cut announced in the autumn statement. Combined, this could save the average worker up to £900 a year.

But the chancellor had faced calls from Tory MPs to cut income tax or unfreeze tax thresholds to prevent Britons from being dragged into higher bands when they get pay rises.

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Awkward wait for chancellor outside No 11

Drab fiscal statement will cool May election rumours

We were promised a tax cutting budget, and we got a tax cutting budget.

The budget this year was a bit more straightforward than usual – with big announcements pre-briefed ahead of time, and no big standout measures held back to surprise voters with.

The chancellor cut national insurance by the expected two percentage points in a move that impacts 27 million people, worth £450 per year for the average person.

Capital gains tax will also be reduced, but the slightly more flamboyant move was stealing Labour’s proposals to scrap the non-dom tax status loophole and replace it with a new residency based system.

It means that an extra £2.7 billion a year will be used to fund tax breaks elsewhere in the budget.

There was a lot of pressure riding on Jeremy Hunt today among swirling chatter in Westminster of a May election, but this rather drab fiscal statement may have cooled those rumours.

But both parties could still be accused of electioneering today.

Mr Hunt thanked a list of Conservative MPs for their lobbying and campaigning as he announced certain measures, and even sometimes name checked the constituencies they represent.

Labour were much louder in their disagreement than usual, heckling the chancellor barely two minutes in.

The chancellor even started his speech at the despatch box with a bizarre, unrelated reference to Israel and Gaza, in a striking example of just how much the conflict has impacted UK politics since 7 October.

In terms of the immediate offerings, Jeremy Hunt confirmed the 5p fuel duty cut will continue, after it was due to expire at the end of March and confirmed a continuation of the alcohol duty freeze.

The Household Support Fund has also been extended for another six months.

There were elements in there for savers too, a new British ISA was announced allowing another £5,000 on top of existing ISA offerings and further tax relief for creative industries.

There was also a noticeable pivot back to more traditional Conservatism.

With the Conservatives 20 points behind in the polls, the chancellor must have been hoping that his budget can turn around Tory fortunes.

But today showed that for him this mission is clearly more of a marathon, not a sprint.

Mr Hunt is already facing anger from Scottish Conservatives, after he announced an extension of the windfall tax on profits made by energy companies in the North Sea.

The leader of the Scottish Tories, Douglas Ross, said he would not vote with the legislation – implying he would either oppose or abstain on the motion to introduce the measure.

Andrew Bowie, a Tory minister, said the will be “working with” Mr Ross to “resolve” the matter.

Labour leader Sir Keir Starmer said the budget was “bereft of ideas”.

This budget is set to be the last before the election – with Mr Hunt under pressure to revive economic growth and the government’s prospects at the ballot box.

The UK economy slipped into a technical recession at the end of last year, and the Tories are about 20 points behind in the opinion polls.

Money blog: What budget means for you

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Why don’t we know when the UK election is?

Before the budget was announced, shadow chancellor Rachel Reeves said: “The Conservatives promised to fix the nation’s roof, but instead they have smashed the windows, kicked the door in and are now burning the house down.

“Taxes are rising, prices are still going up in the shops and we have been hit by recession. Nothing the chancellor says or does can undo the economic vandalism of the Conservatives over the past decade.”

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Why many victims will welcome a national inquiry into grooming gangs

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Why many victims will welcome a national inquiry into grooming gangs

In 2019, nine men were jailed for raping and abusing two teenage girls living in a children’s home in Bradford.

One of the victims, Fiona Goddard, says more than 50 men raped her.

When the government began to talk about offering councils money for local inquiries, Fiona hoped Bradford would be one of the first to take up the offer. But there didn’t seem to be much enthusiasm.

The council was quick to point out that there had already been an independent case review into Fiona’s case, along with four other victims.

This, then, was Fiona’s first reasoning for wanting a national inquiry: The council felt it had done all that needed to be done. Fiona didn’t.

The Independent review, published in July 2021, found that while in the children’s home, Fiona “went missing almost on a daily basis”. The police attitude was that she could look after herself – she was “street-wise”.

There was “agreement by all agencies that Fiona was either at risk of Child Sexual Exploitation (CSE) or actively being sexually abused and exploited”. But “this was not addressed by any single agency”.

And “when Fiona became pregnant at the age of 15, there was little curiosity or enquiry who the father was”.

So, obvious failings were discovered.

The predictable response was that lessons had been learned and new processes put in place. But no one seemed to be held accountable.

Grooming gangs timeline: What happened, what inquiries there were and how Starmer was involved

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Grooming gangs: What happened?

Ms Goddard told Sky News: “In my serious case review she [Jane Booth, the independent chair] found seven incidences at least, in them records that she found, of them not reporting sexual abuse or rape or assault, from as young as eight years old, and one of the incidences I literally turned up covered in blood and they didn’t report it.

“That is not just misunderstanding a crime, that is making intentional decisions not to report the sexual abuse of a child.”

She adds: “Let’s not forget, these people still work within social services and the police force.”

Not only did this Independent review not satisfy Fiona, but it also didn’t begin to reflect the levels and scale of abuse Fiona had experienced outside of Bradford.

Fiona Goddard, who says more than 50 men raped her in Bradford
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‘I literally turned up covered in blood and they didn’t report it,’ Fiona says

Asked where she was trafficked to, Fiona rattles off a list of cities.

“Blackburn, Rotherham, Rochdale, Birmingham, Edinburgh, Oldham – never Telford, I’d never even heard of Telford until it all came out if I’m honest – Nottingham, Oxford.”

Then she remembers she didn’t go to Oxford – men from Oxford came to her – but the point is made.

Local enquiries can’t possibly begin to explore the networks of men who traffic women, often down routes of drug trafficking being done by the same gangs.

Bradford Council told Sky News it contributed to the national Independent Inquiry into Child Sexual Abuse (IICSA) and published more than 70 reports where child sexual exploitation was discussed and has implemented findings from the independent local review which included Fiona’s case.

Fiona believes there are numerous connections leading back to Bradford – but victims from each city often believe their abusers are at the centre of it.

We’ve spoken to grooming victims across the country, and in 2022, a case was reopened in Humberside after a Sky News investigation, where we found diary entries, texts, photos, and school reports all indicating that teenage victims had been abused.

Read more on this story:
Telford child abuse victims speak out

What we know about grooming gangs, from the data
The women who blew whistle on Rotherham

One of them was “Anna”, who also wants a national inquiry. She believes there is a national pattern of police forces not believing victims or even criminalising them instead.

Obtaining her own police records using a Subject Access Request (SAR), Anna found officers’ attitudes towards her were similar to what we heard with Fiona in Bradford, blaming her abuse and injuries on “lifestyle choices of her own”.

Anna said: “Every time I look at my Subject Access Request, I still think it’s shocking.

“It was the same sort of terminology – lifestyle choices, liar, attention seeker, and the majority of it was negative.

“It was really rare that I’d come across something where they were actually listening or they were concerned.”

Humberside Police told us: “As the investigation is active, it is imperative we protect its integrity; as such are unable to comment on aspects of the investigation as this could impact or jeopardise any criminal or judicial proceedings.”

But it is years now since Anna first reported her abuse, and she believes the police have left it too late to gather evidence.

She told Sky News: “I think it’s either happening everywhere, or young people have been taken everywhere.

“I think the attitudes of the professionals, the police, social services, from what I’ve heard and seen, they seem very similar in every area.”

The government-commissioned rapid review by Baroness Casey is due to be published next week and is expected to call for a national inquiry into grooming gangs.

Like Anna and Fiona, many victims will welcome Sir Keir Starmer’s early response accepting the recommendation.

They will want the inquiry to probe into the operations of the perpetrators – who they are and how they are connected.

But they will also want clear accountability of the people and organisations who failed to act when they reported their abuse – and an understanding of why, so often, authorities fail to protect these vulnerable girls.

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

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Woman, 23, dies after falling in water at beauty spot in Scottish Highlands

A woman has died after falling into the water at a popular beauty spot in the Scottish Highlands.

The 23-year-old had fallen into the water in the Rogie Falls area of Wester Ross.

Police Scotland confirmed emergency services attended the scene after being called at 1.45pm on Saturday.

“However, [she] was pronounced dead at the scene,” a spokesperson said.

“There are no suspicious circumstances and a report will be submitted to the Procurator Fiscal.”

Rogie Falls are a series of waterfalls on the Black Water, a river in Ross-shire in the Highlands of Scotland. They are a popular attraction for tourists on Scotland’s North Coast 500 road trip.

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‘Happy Father’s Day, Papa’: Royal children share ‘before and after’ photos with Prince William

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'Happy Father's Day, Papa': Royal children share 'before and after' photos with Prince William

Prince George, Princess Charlotte and Prince Louis have wished their “Papa”, Prince William, a happy Father’s Day.

The post on the Prince and Princess of Wales‘s official social media pages features two photos – captioned “before and after”.

The children are seen hugging their father – and then piling on top of him.

The post reads: “Happy Father’s Day, Papa (before and after!) We love you! G, C & L.”

The two photographs of the family – one colour and one black and white – were taken earlier this year in Norfolk by photographer Josh Shinner, who also took Prince Louis’s birthday portraits earlier this year.

The post follows yesterday’s Trooping the Colour, celebrating King Charles‘s official birthday, after which the family shared a rare posed photo taken on the day of the event.

The first photo shows the Prince of Wales wearing a green woollen jumper and jeans, with his arms around George, 11, and Charlotte, 10, with Louis, seven, standing in front of him.

The second picture shows everyone in a bundle, lying on grass and daffodils, with Prince William at the centre.

The Royal family traditionally shares public wishes for Father’s Day and Mother’s Day.

Last year, the Prince of Wales shared a photo of himself playing football with the King, taken in the gardens of Kensington Palace in June 1984, just ahead of his second birthday.

This year, Buckingham Palace posted a black and white photo of Prince Philip pushing a young King Charles and Princess Anne on a swing.

A second photo showed the Queen and her father, Major Bruce Shand, taken on the day of her wedding to Charles in 2005.

The message read: “To all Dads everywhere, we wish you a happy Father’s Day today.”

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