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The amount employers pay in national insurance is set to rise in next week’s budget to raise money for public services, Sky News understands.

Reports have suggested it could be increased by up to two percentage points and will – in part – be used to help fund the NHS.

A government source told Sky News: “There is a universal consensus that the NHS needs more money.

“That means asking businesses to help out.

“The choice is investment versus decline. She [Rachel Reeves] is choosing not to ask working people to pay the price for their [Conservatives’] failures.”

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According to The Times newspaper, Chancellor Rachel Reeves is also expected to make a ­significant cut to the earnings ­thresholds at which employers start making national insurance contributions.

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The combined measures are expected to raise about £20bn and will represent the ­biggest tax rise in the budget.

The burden will reportedly fall entirely on the private sector, with public sector ­employers such as government departments and the NHS being reimbursed by the Treasury to avoid cuts.

On Friday, much of the budget chat focused on Labour’s definition of a “working person”.

The party’s manifesto said it would not increase taxes on working people, including VAT, national insurance, and income tax.

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This has prompted repeated questions about who the government considers to fall under that umbrella and therefore would not impose tax rises on.

During a broadcast interview at a Commonwealth summit in Samoa, Sir Keir Starmer told Sky News he does not consider people who have an income from assets such as shares of property to be working people.

“They wouldn’t come within my definition,” he said.

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Reacting to questions from journalists, Ms Reeves said the prime minister is a “working person”.

Speaking to LBC, she said: “The prime minister gets his income from going out to work and working for our country.

“He’s a working person. He goes out to work.”

Treasury minister James Murray told Sky News that “a working person is someone who goes out to work and who gets their income from work”.

Pushed further on whether a working person could also get income from shares or property, Mr Murray added: “We’re talking about where people get their money from, and so working people get their money from going out to work.

“And it’s that money that we’re talking about in terms of those commitments we made around income tax, around national insurance.

“That’s what’s important to focus on, where people are getting their money from, getting their money from going out to work.”

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PM backs call for MP investigation into Prince Andrew’s housing arrangement

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PM backs call for MP investigation into Prince Andrew's housing arrangement

Sir Keir Starmer has backed a call for a Commons investigation into Prince Andrew’s housing arrangement.

The King’s brother is still living in the Royal Lodge, a 30-room Windsor mansion owned by the Crown Estate, despite relinquishing his Duke of York title last week.

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It has emerged he only pays a “peppercorn rent” on the property – a legal term used in leases to show that rent technically exists, so the lease is valid, but it’s nominal – often £1 a year or even nothing at all.

Liberal Democrat leader Sir Ed Davey has called for a select committee inquiry into the Crown Estate, in which Prince Andrew would be called to give evidence.

Speaking in Prime Minister’s Questions, Sir Ed said: “Given the revelations about Royal Lodge, does the prime minister agree that this House needs to properly scrutinise the Crown Estate to ensure taxpayers’ interests are protected.

“The chancellor herself has said that the current arrangements are wrong.

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“So will the prime minister support a select committee inquiry, so all those involved can be called for evidence, including the current occupant?”

Responding, Prime Minister Sir Keir Starmer said: “It’s important in relation to all Crown properties that there is proper scrutiny, and I certainly support that.”

A document from the Crown Estate, which oversees the Royal Family’s land and property holdings, shows Andrew signed a 75-year lease on the Royal Lodge in 2003.

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Prince Andrew faces renewed scrutiny over his royal title and taxpayer-funded residence at Royal Lodge.

It reveals he paid £1m for the lease and that since then he has paid “one peppercorn” of rent “if demanded” per year.

Andrew was also required to pay a further £7.5m for refurbishments completed in 2005, according to a report by the National Audit Office.

The agreement also contains a clause that states the Crown Estate would have to pay Andrew around £558,000 if he gave up the lease.

The royal is under pressure to do just that amid continued scrutiny over his relationship with paedophile financier Jeffrey Epstein.

There has also been fresh focus on his sex accuser Virginia Giuffre’s allegations, which Andrew denies, after the publication of her posthumous memoirs.

Senior Tory Robert Jenrick said it was “about time Prince Andrew took himself off to live in private” as “the public are sick of him”.

Asked about his living arrangement on Tuesday, Chancellor Rachel Reeves told the BBC: “I do think people should pay their way and pay their fair share.”

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‘Man deported under ‘one in, one out’ scheme returns to UK in small boat

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'Man deported under 'one in, one out' scheme returns to UK in small boat

A migrant who was deported back to France under the government’s flagship “one in, one out” scheme has returned to the UK on a small boat.

The Iranian national was initially detained when he entered the UK on a small boat on 6 August. He was removed under the government’s deal with France on 19 September, and he returned on 18 October.

He has been detained once again, and Sky News understands that the government is set to expedite his removal back to France.

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The news comes as Sky News learns that more migrants have crossed the Channel on a small boat in 2025 so far than the entirety of 2024.

The “one in, one out” treaty with France allows the UK to return anyone who arrives in the UK on a small boat back to France, in exchange for France sending to the UK the same number of people who have never previously tried to enter illegally.

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What is the UK-France migrant returns deal?

The man told The Guardian newspaper that he had been a victim of modern slavery at the hands of people smugglers in northern France.

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“If I had felt that France was safe for me I would never have returned to the UK,” he claimed.

“When we were returned to France we were taken to a shelter in Paris. I didn’t dare to go out because I was afraid for my life. The smugglers are very dangerous. They always carry weapons and knives. I fell into the trap of a human trafficking network in the forests of France before I crossed to the UK from France the first time.

“They took me like a worthless object, forced me to work, abused me, and threatened me with a gun and told me I would be killed if I made the slightest protest. Every day and every night, I was filled with terror and stress. Every day I live in fear and anxiety, every loud noise, every shadow, every strange face scares me.

“When I reached UK the first time and Home Office asked what had happened to me I was crying and couldn’t speak about this because of shame.”

The UK government’s position is that France is a safe country.

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PM and Macron agree migrant deal

‘Rwanda is further than France’

The aim of the agreement with France is to create a disincentive for migrants to make the dangerous crossing across the Channel. But Downing Street repeatedly refused to describe the scheme as a “deterrent” this afternoon, insisting that the scheme is among a number of measures the government is taking to stop small boat crossings.

A Home Office spokesperson said in a statement: “We will not accept any abuse of our borders, and we will do everything in our power to remove those without the legal right to be here.

“Individuals who are returned under the pilot and subsequently attempt to re-enter the UK illegally will be removed.”

Former Tory home secretary James Cleverly quipped on social media that “Rwanda is a lot further away than France”, arguing that had their embattled scheme got off the ground, it would have been harder for migrants to make the return journey.

The prime minister is hosting Western Balkans leaders on Wednesday as the government tries to crack down on people smuggling and illegal migration.

But despite various government efforts, Sky News understands that more migrants have crossed the English Channel in small boats so far this year than in the whole of 2024, Sky News understands

While the exact number of people who have made the crossing today is not set to be published until tomorrow, Home Office sources have confirmed that more than 36,816 people – the total for 2024 – have now crossed the Channel so far in 2025.

Home Secretary Shabana Mahmood said in a statement: “The previous government left our borders in crisis, and we are still living with the consequences. These figures are shameful – the British people deserve better.

“This government is taking action. We have detained and removed more than 35,000 who were here illegally. Our historic deal with the French means those who arrive on small boats are now being sent back.

“But it is clear we must go further and faster – removing more of those here illegally, and stopping migrants from making small boat crossings in the first place.

“And I have been clear: I will do whatever it takes to restore order to our border.”

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UK cracks down: Hundreds of crypto exchanges hit with FCA warnings in Oct.

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UK cracks down: Hundreds of crypto exchanges hit with FCA warnings in Oct.

UK cracks down: Hundreds of crypto exchanges hit with FCA warnings in Oct.

The Financial Conduct Authority renewed its warnings advising residents of the United Kingdom not to use unregistered crypto exchanges.

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