Chancellor Rachel Reeves will deliver her first budget at the end of October, providing the first chance for her to change the fiscal rules.
Upon entering government in July, the government said the Conservatives left it with a £22bn black hole, so the chancellor is expected to use the 30 October budget to raise some of that.
Ms Reeves said in November, when asked if she would consider changing the debt target, she was “not going to fiddle the figures or make something to get different results”.
However, she is being urged to alter the rules to let the government access £57bn, according to the Institute for Public Policy Research (IPPR) thinktank.
And during Prime Minister’s Questions on 9 October, Sir Keir Starmer refused to answer if he agreed with the chancellor’s November statement, prompting some to speculate the government may change the fiscal rules.
Sky News looks at what a fiscal rule is, what the Labour government’s rules are and how they could change.
More on Budget 2024
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Image: Sir Keir Starmer and Rachel Reeves at the Labour conference. Pic: PA
What are fiscal rules?
A fiscal rule is a limit or restriction governments put in place to constrain how much they can borrow to fund public spending.
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They can be set by an independent body but since 1997 UK governments have set their own constraints.
Rules apply to the fiscal deficit – the gap between public expenditure and tax revenues in a year – the public debt – the total amount borrowed to finance past deficits – or public spending relative to GDP.
In 2010, the Office for Budget Responsibility (OBR) was set up to remove the Treasury’s ultimate control over the forecasts that underpin fiscal policy.
The Economics Observatory said the OBR’s creation means fiscal rules should be seen as an “expression of a government’s objectives, not something that dictates those objectives”.
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The Labour Party’s manifesto laid out the new government’s fiscal rules, describing them as “non-negotiable”. They are:
1) The current budget must move into balance so day-to-day costs are met by revenues
2) Debt must be falling as a percentage of GDP by the fifth year of the forecast – this was carried over from the Conservative government.
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Will Rachel Reeves U-turn on her budget promise?
How could the fiscal rules change?
The rules themselves are not expected to change.
However, the chancellor could change how debt is calculated, which could in turn change how much debt the UK officially has and give Ms Reeves room to borrow more.
Ms Reeves told the Labour conference “borrowing for investment” is the only plausible solution to the UK’s productivity crisis.
By changing her definition of debt, she could find up to £50bn in additional headroom.
However, the Institute for Fiscal Studies (IFS) has warned against borrowing that much money.
Paul Johnson, director of the IFS, said Labour’s pledge not to increase income tax, national insurance or VAT, coupled with a promise to balance the current budget, means she will not be able to free up additional resources for day-to-day spending.
Image: Bank of England governor Andrew Bailey introduced quantitative tightening in 2022
Quantitative Easing
An idea the chancellor is said to be weighing up is excluding the £20bn to £50bn annual losses being incurred by the Bank of England winding down its quantitative easing (QE) bond-buying programme.
Since the 2008 financial crisis, the Bank of England has repeatedly used QE to stimulate the economy and meet the 2% inflation target – creating £875bn of new money in 13 years.
During QE, the Bank buys bonds (debt security issued by the government) to push up their prices and bring down long-term interest rates on savings and loans.
Since November 2022, the Bank has been carrying out quantitative tightening, where it does not buy other bonds when bonds it holds mature, or by actively selling bonds to investors, or a combination of the two.
The aim is not to affect interest rates or inflation but to ensure it is possible QE can happen again in the future, if needed.
In February, the cross-party Treasury committee raised concerns quantitative tightening could have losses of between £50bn and £130bn and said it could have “huge implications” for public spending over the next decade.
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2:41
What will the budget include?
Exclude new institutions
There are suggestions the chancellor could move GB Energy and the National Wealth Fund, both created by Labour, off the government’s books.
Andy King, a former senior official at the OBR, estimates that could unlock a further £15bn for borrowing.
Exclude projects
Another option would be to exclude certain projects from the debt calculation.
Government officials have said they are working on a plan to publish estimates for how much new capital projects could stimulate growth and how much money they would generate directly for the Treasury.
Police are investigating an alleged attack on a prison officer by Southport triple killer Axel Rudakubana on Thursday, Sky News understands.
A Prison Service spokesperson said: “Police are investigating an attack on a prison officer at HMP Belmarsh yesterday.
“Violence in prison will not be tolerated and we will always push for the strongest possible punishment for attacks on our hardworking staff.”
Rudakubana is serving life in jail for murdering Alice da Silva Aguiar, nine, Bebe King, six, and Elsie Dot Stancombe, seven, at a Taylor Swift-themed dance class last year.
According to The Sun, Rudakubana poured boiling water over the prison officer, who was taken to hospital as a precaution but only suffered minor injuries.
This breaking news story is being updated and more details will be published shortly.
Schoolchildren are asking teachers how to strangle a partner during sex safely, a charity says, while official figures show an alarming rise in the crime related to domestic abuse cases.
Warning: This article contains references to strangulation, domestic abuse and distressing images.
It comes as a woman whose former partner almost strangled her to death in a rage has advised anyone in an abusive relationship to seek help.
Bernie Ryan, chief executive of the Institute for Addressing Strangulation, has been running the charity since its inception in 2022 after non-fatal strangulation became a standalone offence.
“It’s the ultimate form of control,” she says.
She says perpetrators and victims are getting younger, while the reason is unclear, but strangulation has seeped into popular culture and social media.
“We hear lots of sex education providers, teachers saying that they’re hearing it in schools.
“We know teachers have been asked, ‘how do I teach somebody to strangle safely?’
“Our message is there is no safe way to strangle – the anatomy is the anatomy. Reduction in oxygen to the brain or blood flow will result in the same medical consequences, regardless of context.”
Image: Bernie Ryan, CEO of the Institute for Addressing Strangulation
A recent review by Conservative peer Baroness Gabby Bertin recommended banning “degrading, violent and misogynistic content” online.
Violent pornography showing women being choked during sex she found was “rife on mainstream platforms”.
Ms Ryan says she “wants to make sure that young people don’t have access to activities that demonstrate that this is normal behaviour”.
Strangulation is a violent act that is often committed in abusive relationships.
It is the second most common method used by men to kill women, the first is stabbing.
According to statistics shared by the Crown Prosecution Service, in 2024 there was an almost 50% rise in incidents of non-fatal strangulation and suffocation – compared to the year before.
Image: Kerry Allan pleads for other victims of abuse to seek help
Domestic abuse victim Kerry Allan has a message for anyone who is in an abusive relationship.
Kerry met Michael Cosgrove in September 2022. While she said “at the beginning it was really good”, within months he became physically abusive.
In August last year her friends found his profile on a dating app.
“I confronted him and he denied it. I knew we were going to get into a big argument and I couldn’t face it, so I said I was going to my mum’s for a few days and take myself away from the situation.
“I came back a few days later and stupidly I agreed we could try again and everything escalated from that.”
Image: Injuries to Kerry’s chest. Pic: CPS
In the early hours of 25 August the pair had come in from a night out at a concert and got into an argument.
“He was having a go at me, accusing me of flirting with other people, and I was angry. I told him he had a nerve after what he’d done to me in the week and how he humiliated me.
“I told him that I wanted to leave, that we were done and that I wanted to go to my mum’s and that’s when it got bad.
“He pinned me to the bed and that’s when he first strangled me.”
Image: Kerry’s neck injury. Pic: CPS
Kerry says this was the first time she’d ever been violently assaulted. Cosgrove was eerily silent as he eventually let go and Kerry gasped for air.
“I remember trying to get my breath back, I was crying and hyperventilating… I was sick on the bedroom floor and I was asking him to go.”
Cosgrove strangled her for a second time before letting go again.
“He was saying I wasn’t getting out of this bedroom alive. I was dead tonight, he hoped that I knew that. Just kept saying how I’d ruined his life.”
Image: Injury to Kerry’s eye. Pic: CPS
“I remember feeling a sort of shock thinking at this point, I’m not going to get out of this bedroom, he’s actually going to kill me.”
Kerry began screaming and shouting for help as loud as she could.
Her neighbours heard the commotion and called the police. While they were en route, Kerry was once again being assaulted.
Image: Bleeding in Kerry’s eye
“I ran over to the bedroom window and tried to jump out, he grabbed me as I went to open the window, and we struggled. And then I was back in the same position, he was on top of me on the bed, and his hands were round the throat again. But this time it didn’t stop.
“I remember trying to struggle and trying to kick out and hit him and I just kept thinking that I definitely was going to die, because at this point, it wasn’t stopping.”
The next memory Kerry has is opening her eyes to see police and paramedics in the bedroom.
Image: Michael Cosgrove. Pic: CPS
Cosgrove had heard the sirens, jumped out of the bedroom window and went to hide in Kerry’s car.
Kerry remembers opening her eyes to paramedics caring for her: “I remember thinking, I’m alive. I couldn’t believe it. I couldn’t believe that I was alive and I wasn’t dead. My last memory is him being on top of me with his hands on my throat.”
Image: Kerry met Michael Cosgrove in September 2022
She gives this advice to anyone who is in an abusive relationship: “Please speak to somebody, whether it’s friends, family, a work colleague, whether it’s somebody online, whether it’s a charity that you’re directed to, any sort of abuse is not okay.
“Whether it starts off emotional, they often start off that way, and they escalate, and they can escalate badly.
“Take what happened to me as a huge warning sign, because I wouldn’t want anyone else to be in the position I’ve been in the last eight months.”
Cosgrove was found guilty of attempting to murder Kerry and intentional strangulation.
He will be sentenced in July.
If you suspect you are being abused and need to speak to someone, there are people who can help you.
Two men have been found guilty of cutting down the famous Sycamore Gap tree that stood for more than 150 years.
Daniel Graham and Adam Carruthers were convicted of causing more than £620,000 worth of damage to the tree and more than £1,000 worth of damage to Hadrian’s Wall in Northumberland.
On 27 September 2023, the pair drove 30 miles through a storm to Northumberland from Cumbria, where they both lived, before felling the tree overnight in a matter of minutes.
Image: The Sycamore Gap tree before it was cut down. Pic: CPS
The pair each denied two counts of criminal damage to the sycamore and to Hadrian’s Wall, which was damaged when the tree fell on it, but were convicted by a jury at Newcastle Crown Court on Friday.
The Sycamore Gap tree sat in a dip in the landscape and held a place in pop culture, featuring in the 1991 Kevin Costner film Robin Hood: Prince of Thieves.
It also formed part of people’s personal lives, as the scene of wedding proposals, ashes being scattered and countless photographs.
Image: Adam Carruthers. Pic: Northumbria Police/PA
In the clip, the sound of a chainsaw can be heard, and the silhouette of a person can be seen, before the trunk eventually tumbled.
The footage was shot on Graham’s iPhone 13, with the metadata providing the coordinates of the tree.
Part of tree kept as ‘trophy’
Over the course of the trial, the pair blamed one another, but the prosecution argued they were both responsible for what the court heard was a “mindless act of vandalism”.
As well as the video footage of the felling, an image of a piece of wood and a chainsaw was found on Graham’s phone.
Image: Adam Carruthers (R) and Daniel Graham (L) worked together felling trees. Pic: CPS/PA
Image: An image of a piece of wood and a chainsaw was found on Graham’s phone. Pic: PA
Richard Wright KC, prosecuting, told the court: “This was perhaps a trophy taken from the scene to remind them of their actions, actions that they appear to have been revelling in.”
Voice notes played in court
The jury was also played voice notes the pair had sent one another, commenting on the media coverage the incident was receiving.
In one of them, Graham, 39, said to 32-year-old Carruthers: “Someone there has tagged like ITV News, BBC News, Sky News, like News News News”, before adding: “I think it’s going to go wild.”
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Sycamore Gap seeds saved
Another piece of evidence was a photo of the defendants felling a different tree, about a month before the Sycamore Gap was cut down.
The prosecution said Graham, who owned a groundworks company and Carruthers, who worked in property management and mechanics, were “friends with knowledge and experience in chainsaws and tree felling”.
From the beginning, much of the trial focused on the significance of the tree, with Judge Mrs Justice Lambert telling the jury to put their “emotion to one side” before proceedings began.
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Voicenotes from Sycamore Gap tree trial
‘Mindless acts of violence’
Northumberland Superintendent Kevin Waring, of Northumbria Police, said: “We often hear references made to mindless acts of vandalism – but that term has never been more relevant than today in describing the actions of those individuals”.
Graham and Carruthers gave no explanation for why they targeted the tree, he said, “and there never could be a justifiable one”.
Northumbria Police and Crime Commissioner, Susan Dungworth, called the felling of the tree “unfathomable” and said, although “there was no remorse [from the defendants], there was compelling evidence, and now there will be justice”.
Gale Gilchrist, chief crown prosecutor for CPS North East, said Graham and Carruthers took “under three minutes” to bring down the “iconic landmark” in a “deliberate and mindless act of destruction”.
She said she hoped the community “can take some measure of comfort in seeing those responsible convicted”.
‘Enormity of the loss’
Reflecting on the verdict and the actions of the pair, Tony Gates, chief executive of Northumberland National Parks Authority, said: “It just took a few days to sink in – I think because of the enormity of the loss.
“We knew how important that location was for many people at an emotional level, almost at a spiritual level in terms of people’s connection to this case.”
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The tree’s stump still sits by Hadrian’s Wall, where new shoots have been emerging.
Its largest remaining section will go on display at the National Landscape Discovery Centre in the Northumberland National Park later this year.
The effort to preserve the tree’s legacy also goes beyond the region where it stood.
Forty-nine saplings taken from the tree have been conserved by the National Trust. They will be planted in accessible public spaces across the country as “trees of hope”, which will allow parts of the Sycamore Gap to live on.
The defendants, who didn’t react when the verdicts were delivered, will be sentenced in July.