‘I’m not going to write a budget here’: Rachel Reeves refuses to rule out further tax rises if Labour finds black hole in public finances post-election

Published

4 months ago

May 28, 2024

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Rachel Reeves has refused to rule out tax rises beyond income tax, national insurance and corporation tax if Labour finds a black hole in the public finances once it enters government.

In an interview with Sky News, the shadow chancellor swerved questions on whether the government books might be worse than anticipated if Labour wins the election, and how the party would raise the money to deal with pressing issues.

The shadow chancellor said her plans were fully funded, but existing tax rises were there only to fund commitments already made, and insisted: “We have no plans for increased taxes.”

But pressed on whether she would raise other taxes if there was a black hole on entering government, she said: “I’m not going to write a budget here.”

General election latest: Sunak laughs off idea for extra bank holiday

The shadow chancellor draws a distinction between income tax, national insurance and corporation tax , saying her party had “already ruled out” rises for the parliament.

But Ms Reeves declined to engage with the question of what would happen if she finds a black hole on entering government – with some Labour figures expecting immediate cost pressures from the creaking prison service, bust local councils and the need to fund vast compensation schemes including infected blood at the next budget.

“There are no further increases in tax that we are planning or that we need to fill any black holes,” she said.

Analysts point out that Labour has not made any commitment not to raise VAT, and is already extending that tax to private schools.

“We don’t need to increase VAT because we don’t need to increase any taxes because all of our plans, unlike the Conservatives’, are fully costed and fully funded and people can have confidence in that – there will be nothing that we put forward that we can’t explain where the money’s going to come from.”

Ms Reeves spoke to Sky News on the same day that she delivered a campaign speech from Derby, in which she declared Labour to be the “natural party of British business” – and that included paying bosses large salaries.

In her first major speech of the election campaign, the shadow chancellor sought to persuade voters Labour is now pro-business and pro-workers.

She also said the party would bring the UK closer to the European Union, something Labour has previously announced, and “bring investment back to Britain”.

Ms Reeves also criticised the Conservatives for promising to cut taxes for pensioners by creating a new “age-related” tax-free allowance – dubbed the “triple lock plus”.

Currently, people can receive £12,570 a year of their pensions before they start paying income tax on them – the same figure as the personal allowance for those who work.

But if the party wins the next election, a pensioner’s allowance would rise in line with either average earnings, inflation or by 2.5% – whichever is higher – from next April, echoing the rules on annual state pension increases.

The shadow chancellor accused Rishi Sunak of “desperately adding more baubles to a Christmas tree”.

“The truth is, unless you can be really clear about where the money’s going to come from, then these sums just don’t add up and therefore they’re not deliverable.

“And that’s the question people have to ask at this election. Do they want another five years of chaos and decline under the Conservatives, or a changed Labour Party offering stability? And frankly, after what we’ve had these last few years, stability is change.”

UK

Mohamed al Fayed: Former royal security head says he warned Royal Family before Diana went on holiday with businessman

Published

5 hours ago

September 21, 2024

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Mohamed al Fayed: Former royal security head says he warned Royal Family before Diana went on holiday with businessman

The former head of royal protection says he warned the Royal Family about Mohamed al Fayed’s reputation before Princess Diana took her sons on holiday with him.

The former Harrods owner, who died last year at the age of 94, was described as a “monster” earlier this week by lawyers representing 37 alleged sexual abuse victims.

The women say he raped and sexually assaulted them while they worked at the luxury department store, prowling the shop floor and “cherry-picking” women to be brought to his executive suite.

Now, Mr Davies says people were aware of the Egyptian businessman’s reputation as far back as the 1990s, and that he raised concerns about him to the Royal Family.

“This was a man who I would be concerned [about] if a relative of mine was going on holiday with him, let alone the future king and his brother and their mother, Princess Diana,” Dai Davies told Sky News.

In July 1997, a month before she died, Princess Diana went on holiday with Fayed and his wife to their residence in St Tropez.

She took the two young princes with her – a holiday Prince Harry described as “heaven” in his 2023 memoir Spare.

“I was horrified because I was aware of some of the allegations even then that were going around,” said Mr Davies.

“I was aware that he had tried very hard to ingratiate himself with the Royal Family and obviously knowing, as I did, the reputation he was alleged [to have] then, I was concerned, and I took the opportunity to inform the Royal Family.”

Mr Davies says he was told: “Her Majesty is aware.”

“The rest is history,” he said.

Buckingham Palace told Sky News it had no comment on the allegations.

Fulham ‘deeply disturbed’ by allegations

Fulham FC, a football club that was owned by Fayed between 1997 and 2013, has said it is “deeply troubled” by the dozens of “disturbing” sexual abuse allegations against the businessman.

The Premier League club also said it is “in the process of establishing whether anyone at the club is or has been affected” by this alleged behaviour.

However, Gaute Haugenes, who managed the club’s women’s team between 2001 and 2003, told the BBC extra precautions were taken to protect female players from Fayed.

“We were aware he liked young, blonde girls. So we just made sure that situations couldn’t occur. We protected the players.”

‘The door was locked behind me’

A former Harrods employee told Sky News she was summoned to Fayed’s apartment when she began working for the department store at 19 years old.

She was told the meeting was a “job review” before “the door was locked behind me”.

“I saw his bedroom door partially open – there were sex toys on view,” she said.

“I felt petrified. I perched myself at the very end of the sofa and then… my boss, the person I worked for, pushed himself onto me.”

Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.

The department store has also set up a page on its website inviting former employees to come forward if they have allegations.

The legal team involved in a civil claim against Harrods for allegedly failing to provide a safe system of work for its employees said they aimed to seek justice for the victims of a “vast web of abuse”.

UK

Lily Allen says she had her children for ‘all the wrong reasons’

Published

5 hours ago

September 21, 2024

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Lily Allen says she had her children “for all the wrong reasons,” at a “high pressure” point in her career when she felt “overwhelmed”.

The singer and actress had her two daughters, Marnie, 12 and Ethel, 11, with her ex-husband Sam Cooper when she was in her mid-20s.

By the time she became a mum, she’d already had hit singles including Smile and The Fear, released two studio albums and received a Brit Award for best British female solo artist.

Speaking about motherhood on the BBC podcast Miss Me?, which Allen hosts with her long-time friend Miquita Oliver, she said: “I think I had children for all the wrong reasons, really.

“Because I was yearning for unconditional love, which I haven’t felt in my life since I was a child.”

The now 39-year-old star added: “And also, my career was at such high speed, high pressure, and I felt like very overwhelmed by what was happening. I just didn’t get much respite you know?

“And I felt like the only way to stop people hassling me was to say, ‘It’s not about me, actually this is about this other person that’s inside me’.

When asked by Oliver if it worked, Allen says: “Yeah, they did leave me alone. I don’t think I really understood what was happening, what I got myself into.”

The daughter of actor Keith Allen and film producer Alison Owen, she went on to discuss her own childhood.

“My mum, bless her, had children really early as well, and she really struggled. But she doesn’t really talk about the struggle. And so… She inadvertently gaslit me into thinking it was, you know, easy.

“You just sort of throw the kid over your shoulder and you get on with it.

“Her job was very static, and in one place and went to an office and mine wasn’t like that at all. It wasn’t easy. It just wasn’t easy.”

The ‘nasty scars’ caused by absent parents

Allen previously told the Radio Times podcast that while she loves her children, having them “ruined her career”.

She said her decision to prioritise them over her pop career was a decision she made so as not to inflict the “nasty scars” of being an “absent” parent onto them.

She also said the myth of having it all “really annoyed” as it simply was not true.

Allen, whose younger brother is Game Of Thrones actor Alfie Allen, married Stranger Things star David Harbour in 2020.

Away from her music career, Allen has branched out into acting over the last few years, starring in two plays in London’s West End, and winning a role in Sky drama Dreamland last year.

UK

Investigation launched into ‘Jail Starmer’ graffiti at MP’s office

Published

5 hours ago

September 21, 2024

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Investigation launched into 'Jail Starmer' graffiti at MP's office

An investigation has been launched after “Jail Starmer” graffiti was daubed on the window of an MP’s office.

The Met Police received an allegation of criminal damage on Saturday in relation to the incident at Clive Efford’s office in Eltham & Chislehurst, South London.

This is a new seat which was won by Labour at the general election, though in 2019 it was notionally Conservative.

On Friday night the window was painted with white graffiti which says “Jail Starmer”.

Sources told Sky News’ political editor Beth Rigby that an image of the vandalism has been circulating among Labour MPs’ WhatsApp groups this morning. However, Mr Efford has downplayed the incident.

There have been growing concerns about the safety of politicians in recent years, following the murders of Jo Cox and Sir David Amess.

MPs have described working in an increasingly hostile environment, with experiences ranging from death threats and abuse to attacks on their constituency offices and protests at their homes.

Ahead of the general election, Tory MP Mike Freer stepped down over concerns for his personal safety, saying an arson attack on his constituency office was the final straw.

The latest incident comes as the Labour Party Conference is about to kick off in Liverpool.

It is the first time in 15 years the event has been held while the party is in government.

In a statement, the Met Police said: “On Saturday 21, September, police received an allegation of criminal damage to an office building in Westmount Road SE9.

“Graffiti had been daubed on the premises the previous day.

“An investigation has been launched and enquiries are ongoing.

“Anyone with information is asked to call 101 quoting CAD 2672/21Sep.”