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The business secretary has suggested the government could put up national insurance for employers in the budget without breaking its election pledges.

Jonathan Reynolds told Sunday Morning with Trevor Phillips that Labour’s promise not to increase national insurance “was specifically in the manifesto, a reference to employees”.

National insurance is paid by both employees and employers and it has been unclear whether Labour’s vow not to increase the tax included both levies.

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In Prime Minister Question’s on Wednesday, Sir Keir Starmer refused to rule out increases to the tax.

The business secretary’s comments are the clearest indication yet that such a rise is being considered.

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But coming on the eve of a major investment summit, the suggestion risks a row with companies – who would be hit by such a tax rise – and may prompt questions over the government’s commitment to economic growth.

It also comes on the heels of an argument with the firm DP World over comments made by the transport secretary that caused the company to review a £1bn London port investment.

“You know that pledge was taxes on working people… there’s a lot already in the manifesto, but you have to wait for the detail of a budget… this will be a budget for growth,” said Mr Reynolds.

Shadow work and pensions secretary Mel Stride said increasing employer national insurance would amount to a “tax on jobs” and “what they should be about is growth and increasing productivity”.

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Labour ‘talked the economy down’

With the budget just over a fortnight away, the chancellor has also strongly hinted that she is planning to tweak the rules that dictate how much the government is allowed to borrow for spending on infrastructure investment.

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Writing in The Sunday Times, Rachel Reeves said it was “time that the Treasury moved on from just counting the costs of investments, to recognising the benefits too”.

It has been reported that the Treasury is considering changing how it calculates debt by stripping out the value of assets it holds, such as transport or building infrastructure or the student loan book.

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This would bring down the headline government debt figure and allow the chancellor to borrow more money within her fiscal rule to have debt falling within a five-year forecast.

Crucially, such a move would not affect day-to-day spending so tax rises will likely still be needed to plug the hole in ongoing commitments.

But it would free up space for the Treasury take on more debt to spend on one-off projects – such as green technology, schools or hospitals – which ministers argue are essential to bring about economic growth.

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Supporters of such a change argue that the current approach fails to adequately capture the potential long-term economic benefits of borrowing to invest because of the five-year horizon within which debt must start falling.

Detractors say changing the fiscal rules in this way would amount to fiddling the figures to load the country up with liabilities.

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Diane Abbott suspended from Labour Party

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Diane Abbott suspended from Labour Party

Diane Abbott has been suspended from the Labour Party pending an investigation.

A party spokesperson confirmed the decision to Sky News but did not give a reason why.

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It comes after the veteran MP defended previous comments about racism which sparked an antisemitism row and led to a year-long suspension.

She apologised at the time and was readmitted back into the party before the 2024 general election.

A Labour Party spokesperson said: “Diane Abbott has been administratively suspended from the Labour Party, pending an investigation. We cannot comment further while this investigation is ongoing.”

Sky News understands that the suspension is not related to the four rebels who lost the whip on Wednesday for “repeated breaches” of party discipline, including voting against the government’s welfare cuts.

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The action has been taken because of an interview in which she doubled down on her claim Jewish people experience racism differently to black people, which previously sparked a huge controversy.

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Diane Abbott

In a letter to The Observer in 2023, Ms Abbott argued that people of colour experienced racism “all their lives” and said that was different to the “prejudice” experienced by Jewish people, Irish people and Travellers.

Shortly after it was published, she issued a statement in which she said she wished to “wholly and unreservedly withdraw my remarks and disassociate myself from them”.

However in a new interview with BBC Radio 4’s Reflections programme this week, she said she did not look back on the incident with regret.

Ms Abbott said: “Clearly, there must be a difference between racism which is about colour and other types of racism because you can see a Traveller or a Jewish person walking down the street, you don’t know.

“But if you see a black person walking down the street, you see straight away that they’re black. They are different types of racism.”

She added: “I just think that it’s silly to try and claim that racism which is about skin colour is the same as other types of racism.

“I don’t know why people would say that.”

Commenting on the suspension, Ms Abbott told Sky News: “It’s obvious this Labour leadership wants me out. My comments in the interview with James Naughtie were factually correct, as any fair-minded person would accept.”

The clip of the interview was re-posted by Brian Leishman, one of the MPs suspended on Wednesday, who said: “Diane Abbott has fought against racism her entire life.”

Bell Riberio-Addy, who lost her role as trade envoy in yesterday’s purge, also came to Ms Abbott’s defence, saying: “Before condemning her based on headlines, I would listen to her clip and note she discussed the different forms that racism takes and condemned all forms of racism.”

Former shadow chancellor John McDonnell made similar comments, saying that in the interview his colleague “forthrightly condemns antisemitism & discusses the different forms of racism”.

But Labour MP David Taylor told Sky News he has “long thought Diane Abbott shouldn’t be a member of our party due to her appalling positions on everything from Bosnia to Syria”.

He added: “As the Jewish Labour Movement have said, antisemitism targets Jews regardless of how they look, and many in the community are visibly Jewish and suffer racism for it.”

In the interview, Ms Abbott said she “of course” condemns antisemitic behaviour in the same way she would condemn racist behaviour because of the colour of someone’s skin, adding: “I do get a bit weary of people trying to pin the antisemitic label on me because I spent a lifetime facing racism of all kinds.”

Ms Abbott made history when she was elected as Britain’s first black female MP for Labour in 1987.

She is the longest-serving female MP in the Commons, giving her the title “Mother of the House”.

As an MP on the left of the party she has often clashed with the leadership throughout her career – bar her time serving in Jeremy Corbyn’s shadow cabinet.

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Many MPs rallied in support of Ms Abbott last year when it was not clear if she would be reinstated in time for the general election, or allowed to stand.

She went on to retain her seat of Hackney North and Stoke Newington with a majority of over 15,000.

Deputy Prime Minister Angela Rayner hinted action could be taken against Ms Abbott when she told The Guardian earlier on Thursday that she was “disappointed” in her colleague’s remarks.

“There’s no place for antisemitism in the Labour Party, and obviously the Labour Party has processes for that,” she said.

A source close to the decision to suspend her told Sky News there is a “very slim chance” she will be allowed back in, given she did antisemitism training and apologised last time.

It raises questions about whether Ms Abbott could join the new party being formed by Mr Corbyn and former Labour MP Zarah Sultana.

For the time being, Ms Abbott will sit in the Commons as an independent MP.

Adnan Hussain, who was elected as the independent MP for Blackburn last year, said on X: “We’d be honoured to have a giant like Diane join us, she [should] come to the side that would really appreciate her for the legend she is.”

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SEC Chair Atkins considers innovation exemption to boost tokenization

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SEC Chair Atkins considers innovation exemption to boost tokenization

SEC Chair Atkins considers innovation exemption to boost tokenization

Crypto industry hails GENIUS Act as a win, while Senator Elizabeth Warren criticizes it for consumer protection gaps.

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Former rugby player sentenced for $900K crypto mining Ponzi

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Former rugby player sentenced for 0K crypto mining Ponzi

Former rugby player sentenced for 0K crypto mining Ponzi

Former rugby player Shane Donovan Moore was sentenced to 2.5 years in US federal prison for running a $900,000 crypto mining Ponzi scheme.

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