Sky’s economics and data editor Ed Conway heard there was going to be “a lot of bad news” in the fiscal event as the government continues to remind voters about its financial inheritance from the Tories, with borrowing at levels not seen since the pandemic.
Rachel Reeves’s first budget on 30 October will be “quite miserable”, Conway has said – with spending cuts and tax rises both expected.
The latter is something Ms Reeves herself has admitted will be on the cards, though Sir Keir vowed in its election manifesto that income tax, national insurance, and VAT wouldn’t budge – remaking the pledge in August.
With that in mind, Sky News looks at which ones could be targeted.
Inheritance tax
This is one of the taxes most likely to be changed.
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Inheritance tax is charged at 40% on the value of an estate above £325,000 when someone dies.
The tax rate could be increased, or the value people have to pay inheritance from could be lowered to raise money.
There are currently several exemptions, including on agricultural land and family businesses, but these could be lifted to include them.
The government could also reduce the number of years allowed when giving away assets before someone dies before inheritance tax kicks in.
A leaked recording from March revealed now chief secretary to the Treasury, Darren Jones, saying inheritance tax could be used to “redistribute wealth” and address “intergenerational equality”.
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3:29
Will Labour raise taxes?
Capital gains tax
Capital gains is imposed on the profit from the sale of capital assets, including second homes, shares, business assets and most personal possessions worth £6,000 or more, apart from cars.
Currently, people do not have to pay tax on the first £3,000 of profits, or £1,500 for trusts.
The minimum limit could be removed and the tax could be imposed on assets currently exempt.
Like inheritance tax, it is one of the taxes that is being most talked about to be targeted.
In the leaked recording from Mr Jones, he said he was frustrated by the “out of date” council tax system and hinted homes worth over £1m may have to pay more.
Council tax is currently set in bands that are based on the 1991 value of homes, which has been branded “absurd” by the Institute for Fiscal Studies (IFS) and “incredibly poorly designed” by the Institute for Government “(IfG).
Gemma Tetlow, chief economist at the IfG, said council tax could be reformed “in a very sensible way… rather than having the banded system you could move to something that is much more proportional tax on land revenue”.
She added: “You could do that sensible structural reform and raise some extra money at the same time.”
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1:04
Labour ‘rolling the pitch’ for tax hikes
Business rates
Labour are understood to be consulting on changing business rates, which are charged on most non-domestic properties with relief for some including small businesses, retail, hospitality and leisure properties.
A change could be made so they are related to the value of the land instead of the current rateable value, which is an estimate of how much it would cost to rent that property for a year in April 2021.
Stamp duty
Stamp duty is paid on the cost of a property over £250,000, with more paid for second homes and by non-UK residents, and relief for first-time buyers.
It currently discourages people from moving home and is part of the reason older people are not moving out of expensive, larger properties.
Labour could change the tax so it is focused on annual land value tax instead of on a transaction – but that could be a hard sell with the party.
Keir Starmer will sign a century-long partnership with Ukraine today, as the prime minister makes his first visit to the war-torn country in an effort to shore up support for Kyiv – just days ahead of the arrival of Donald Trump in the White House.
Sir Keir said the 100-year agreement underpinned Britain’s “steadfast support” for Ukraine as he reiterated European unity in the face of Russian aggression. The treaty and political declaration will be laid in parliament in the coming weeks.
“Putin’s ambition to wrench Ukraine away for its closest partners has been a monumental strategic failure. Instead, we are closer than ever and this partnership will take that friendship to the next level,” said the prime minister.
“The power of our long-term friendships cannot be underestimated. Supporting Ukraine to defend itself from Russia’s barbaric invasion and rebuild a prosperous, sovereign future, is vital to the government’s security and Plan for Change.”
The PM’s visit is part of a wider effort on the part of European leaders to shore up support for Kyiv as they ramp up discussions over regional security ahead of the handover of power in Washington. President Volodymyr Zelenskyy met with Prime Minister Donald Tusk of Poland on Wednesday.
The flurry of diplomatic activity comes as the conflict between Ukraine and Russia has intensified ahead of the inauguration of president-elect Trump, with Vladimir Putin trying to take as much territory as possible ahead of expected peace talks.
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On Wednesday, Ukraine’s state energy company was forced into emergency cuts after a massive Russian military attack.
Russia controls around a fifth of Ukraine after nearly three years of war and says any deal to end the conflict must take that into account.
In September 2022, it proclaimed four regions that it only partly controls as part of its own territory, which was condemned by the United Nations General Assembly (UNGA) as an “attempted illegal annexation”.
While President Joe Biden was steadfast in the US’s continuing support of Ukraine’s military effort, Trump has made it clear he wants to end the conflict quickly, hastening discussions about what a settlement might look like between Kyiv and Moscow.
In November, President Zelenskyy said for the first time in an interview with Sky News that Ukraine was prepared to temporarily cede territory to Russia to end the war if the conflict was frozen along current lines.
He added after a ceasefire was agreed, Kyiv could negotiate for the return of seized territory.
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3:52
Volodymyr Zelenskyy spoke to Sky’s Stuart Ramsay in Kyiv back in November about how a ceasefire could work.
Sir Keir has also changed his tone, from insisting allies must “double down” on support for Ukraine for “as long as it takes” at the November G20 summit, to saying British policy was now “to put Ukraine in the strongest possible position for negotiations”.
The prime minister will want to reiterate to President Zelenskyy that nothing is off the table, as the duo discuss the ongoing conflict, the impending Trump presidency and what a settlement could look like.
As part of the partnership deal, the UK will bolster military collaboration on maritime security through a new framework to strengthen the Baltic, Black and Azov seas.
President Zelenskyy has reportedly told journalists the two leaders will discuss the possibility of British troops joining a post-war peacekeeping force, as other European leaders such as French President Emmanuel Macron – who visited the PM at his Chequers country residence last week – and Tusk have similar conversations.
Ukraine relies on US support to continue the conflict, given it provides the bulk of military aid. But Trump has made it clear he is reluctant to keep funding the war, saying during the election campaign he would end it “within 24 hours” of taking office.
He has subsequently acknowledged that ending the conflict will be more difficult, but his administration is keen to press ahead: Trump has said he will arrange a call with Putin soon after his inauguration on 20 January, while the new US envoy to Ukraine, retired lieutenant General Keith Kellogg, said last week he wanted a solution to the war in the first 100 days of office.
The discussion around peacekeeping forces is part of a wider conversation among European allies about what security guarantees should be put in place for Ukraine, including buffer zones and the threat of more weapons for Ukraine in the absence of NATO membership.
President Zelenskyy has said any guarantees must be backed up by the US as the prospect of a NATO membership invitation fades from view.
Ukraine becoming a member of NATO is a clear red line for Moscow, with Putin describing Kyiv joining the security alliance as “an unacceptable threat”.
Last week, Trump acknowledged Moscow’s longstanding opposition to Ukraine’s ambition to join NATO, given it would mean “Russia has somebody right on their doorstep, and I can understand their feeling about that”.
European leaders are concerned Trump will force Ukraine into an unjust peace deal, and they will be shut out of the negotiations which will shape the security of the continent for many years.
NATO chief Mark Rutte last month cautioned Trump over his plans for a peace deal, warning it would lead to the West’s enemies “high fiving” and would only serve to embolden China, North Korea and Iran.
The PM has come under criticism from Conservative rivals for not visiting Ukraine sooner, with former defence secretary Grant Shapps saying he was “astonished” is has taken the PM six months in power to visit the country.
However, Sir Keir has met the Ukrainian leader six times, as well as hosting him twice at Number 10 since taking office in July.
The securities regulator wants an appeals court to rule that XRP tokens sold to retail investors were unregistered securities, the latest in its years-long case against Ripple Labs.