People will not face higher taxes on their payslips after budget, education secretary says
People will not face higher taxes on their payslips after the budget, a cabinet minister said, as she refused to be drawn on what measures could be in the £40bn revenue raiser.
Education Secretary Bridget Phillipson repeatedly said she could not speculate on how Chancellor Rachel Reeves intends to fill the black hole in the nation’s finances, which is understood to be more than double it was previously thought.
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Labour said in its manifesto that it will not raise national insurance, income tax or VAT on “working people” – but it is not clear exactly who that means.
Ms Phillipson told Sky News it is someone “whose main income arises from the fact that they go out to work every day”.
However, she refused to say whether it meant someone who does this and also has savings, telling Sunday Morning With Trevor Phillips: “You’re once again asking me to speculate on matters that are for the chancellor.”
She added: “We set out in our manifesto that we would not be increasing VAT, national insurance or income tax on working people. We will hold to that. And in the payslips that they see after the budget, they will not face higher taxes.”
Government sources were later forced to clarify that the promise was valid right up to the next election, after the education secretary appeared to fumble her lines on the matter.
There was further confusion over remarks she gave to the BBC’s Sunday With Laura Kuenssberg programme, when she declined to say whether a small business owner with an average net profit of around £13,000 is considered a “working person” by the government.
She acknowledged it is “frustrating” she can’t talk about the budget, but said “that’s not my job – that’s for the chancellor”.
While ministers have remained tight-lipped about the fiscal event next week, it is thought capital gains tax, fuel duty and inheritance tax are some of the levers Ms Reeves could pull.
In recent weeks, ministers have said their commitment not to raise national insurance only applied to the worker element, fuelling speculation that the employer part of this levy could also go up.
It has emerged the government is looking to fill a £40bn shortfall, more than double the £22bn black hole they had previously warned about and used to justify the cut to winter fuel payments.
Paul Johnson, director of the Institute for Fiscal Studies, told Sky News if that is the case Wednesday’s fiscal event will be “certainly one of the biggest tax rising budgets in history”.
The Conservatives have accused Labour of misleading the public during the election campaign with their economic plans.
Gareth Davies, the shadow exchequer secretary, said: “Labour are not keeping their word. They’re attempting to pull the wool over the public’s eyes – but it won’t work.”
He accused Labour of breaking their manifesto promises not only by raising taxes but also by “fiddling the figures to whack up borrowing” despite vowing not to change their fiscal rules.
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UK’s black hole is ‘genuinely big’
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It comes after Ms Reeves confirmed that she will change her definition of debt to allow her to borrow more to invest.
Speaking to Sky News earlier this week, she said the self-imposed fiscal rule under which borrowing must be falling by the fifth year of economic forecasts will be redefined from the current measure of public sector net debt.
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Former Bank of England governor looks ahead to budget
Former Bank of England governor Mervyn King warned the move could lead to people’s grandchildren shouldering the burden of national debt in the years to come, and Ms Reeves should “demonstrate how that higher borrowing in the short term is going to be constrained in the future”, such as through higher taxes.
He advised Ms Reeves to be “open and honest” about what the higher borrowing will deliver because “it’s the merits of the spending that will determine whether or not people are willing to accept higher taxes in order to see the benefits”.
Specialist search teams, police dogs and divers have been dispatched to find two sisters who vanished in Aberdeen three days ago.
Eliza and Henrietta Huszti, both 32, were last seen on CCTV in the city’s Market Street at Victoria Bridge at about 2.12am on Tuesday.
The siblings were captured crossing the bridge and turning right onto a footpath next to the River Dee in the direction of Aberdeen Boat Club.
Henrietta Huszti. Pic: Police Scotland
Eliza Huszti. Pic: Police Scotland
Police Scotland has launched a major search and said it is carrying out “extensive inquires” in an effort to find the women.
Chief Inspector Darren Bruce said: “Local officers, led by specialist search advisors, are being assisted by resources including police dogs and our marine unit.”
Aberdeenshire Drone Services told Sky News it has offered to help in the search and is waiting to hear back from Police Scotland.
CCTV of the sisters. Pic: Police Scotland
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The sisters, from Aberdeen city centre, are described as slim with long brown hair.
Police said the Torry side of Victoria Bridge where the sisters were last seen contains many commercial and industrial units, with searches taking place in the vicinity.
The force urged businesses in and around the South Esplanade and Menzies Road area to review CCTV footage recorded in the early hours of Tuesday in case it captured anything of significance.
Drivers with relevant dashcam footage are also urged to come forward.
CI Bruce added: “We are continuing to speak to people who know Eliza and Henrietta and we urge anyone who has seen them or who has any information regarding their whereabouts to please contact 101.”
Glasgow has been a city crying out for solutions to a devastating drugs epidemic that is ravaging people hooked on deadly narcotics.
We have spent time with vulnerable addicts in recent months and witnessed first-hand the dirty, dangerous street corners and back alleys where they would inject their £10 heroin hit, not knowing – or, in many cases, not caring – whether that would be the moment they die.
“Dying would be better than this life,” one man told me.
It was a grim insight into the daily reality of life in the capital of Europe’s drug death crisis.
Scotland has a stubborn addiction to substances spanning generations. Politicians of all persuasions have failed to properly get a grip of the emergency.
But there is a new concept in town.
From Monday, a taxpayer-funded unit is allowing addicts to bring their own heroin and cocaine and inject it while NHS medical teams supervise.
A dirty needle thrown less than 100 metres from the new injection centre
It may be a UK-first but it is a regular feature in some other major European cities that have claimed high success rates in saving lives.
Glasgow has looked on with envy at these other models.
One supermarket car park less than a hundred metres from this new facility is a perfect illustration of the problem. An area littered with dirty needles and paraphernalia. A minefield where one wrong step risks contracting a nasty disease.
Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility
It is estimated hundreds of users inject heroin in public places in Glasgow every week. HIV has been rife.
The new building, which will be open from 9am until 9pm 365 days a year, includes bays where clean needles are provided as part of a persuasive tactic to lure addicts indoors in a controlled environment.
There is a welcome area where people will check in before being invited into one of eight bays. The room is clinical, covered in mirrors, with a row of small medical bins.
Clean needles are provided to lure addicts to inject in a controlled environment
There are eight bays users can inject in
We were shown the aftercare area where users will relax after their hit in the company of housing and social workers.
The idea is controversial and not cheap – £2.3m has been ring-fenced every year.
The aftercare area
Read more: ‘Dying would be better than my £1,000 a month heroin addiction’
Authorities in the city first floated a ‘safer drug consumption room’ in 2016. It failed to get off the ground as the UK Home Office under the Conservatives said they would not allow people to break the law to feed habits.
The usual wrangle between Edinburgh and London continued for years with Downing Street suggesting Scotland could, if it wanted, use its discretion to allow these injecting rooms to go ahead.
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The stalemate ended when Scotland’s most senior prosecutor issued a landmark decision that it would not be in the public interest to arrest those using such a facility.
One expert has told me this new concept is unlikely to lead to an overall reduction in deaths across Scotland. Another described it as an expensive vanity project. Supporters clearly disagree.
The question is what does success look like?
The big test will be if there is a spike in crime around the building and how it will work alongside law enforcement given drug dealers know exactly where to find their clients now.
It is not disputed this is a radical approach – and other cities across Britain will be watching closely.
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