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Briefings and speculation are rife over what will be included in the chancellor’s budget on Wednesday, particularly the scale of tax rises.

The biggest expected revenue raiser, set to generate as much as £20bn for public services, is a hike in employers’ national insurance.

Government sources have given strong indications of the chancellor’s thinking, prompting questions about whether this breaks Labour’s manifesto commitment not to hike the three main taxes – income tax, national insurance and VAT for “working people”.

Hikes in capital gains tax and inheritance tax have been touted as ways the Labour government could find money to balance the books and fix public services.

The budget’s contents will be only be official when Rachel Reeves sets it out on Wednesday, but these are some measures Sky News expects – and doesn’t expect – to be included.

No rises to income tax, national insurance or VAT

Labour ruled out increasing income tax, national insurance and VAT in its manifesto before getting elected, promising to protect “working people” – though who they define as a “working person” has come into question of late.

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The chancellor is also expected to prolong the freeze on income tax thresholds by two years to 2030 after the previous Conservative government froze them until 2028.

The Budget - a special programme on Sky News

Employers’ national insurance hike expected

The amount employers pay in national insurance is set to rise by up to two percentage points, and the money will – in part – be used to help inject £10bn into cutting NHS waiting lists.

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.”

Housing

The government has confirmed that a large boost in affordable housing will be in the upcoming budget.

It says there will be £500m in new funding to help build up to 5,000 social homes and bring total investment in housing supply to £5bn as part of the government’s Affordable Homes Programme.

£1.4bn for crumbling schools

The chancellor has promised her budget will include £1.4bn to rebuild crumbling schools.

She said children “should not suffer” due to the UK’s depleted public purse, while economists said the funding would generally ensure existing plans keep going, rather than pay for many new initiatives. Teachers said much more cash was needed.

The Treasury said the £1.4bn would “ensure the delivery” of the school rebuilding programme, which was announced in 2020 under then prime minister Boris Johnson.

Funding for nurseries, breakfast clubs and childcare

The Treasury has also confirmed £1.8bn would be allocated for the expansion of government-funded childcare, with a further £15m of capital funding for school-based nurseries.

The Treasury said the first stage of the plan would pay for 300 new or expanded nurseries across England.

Ms Reeves also said she would “triple” investment in free breakfast clubs to £30m in 2025-26, after she announced at Labour’s party conference in September a £7m trial across up to 750 schools starting in April.

VAT exemption for private schools to be scrapped

Labour have long made clear their plans to scrap the VAT exemption and business rates relief for private schools in a bid to fund 6,500 new teachers in state schools.

Details of the government’s assessment of the expected impacts of these policy changes will be published when the budget comes out on 30 October.

This is only two months before the policy is due to come into effect on 1 January 2025, and will likely include details of whether schools will be forced to increase their fees.

It is now expected that military families, a number of whom send their children to private boarding schools because they could be posted abroad at short notice, will be exempt from paying increased fees.

Changes to the £2 bus fare cap

Bus fares have been capped at £2 on more than 4,600 routes in England since 1 January 2023.

Hundreds of operators outside of London have been part of the scheme, which has cost around £500m.

Introducing the scheme in 2023, former transport secretary Mark Harper said it was aimed at helping passengers afford bus travel for both their sakes and the sake of the environment.

But the scheme, which is currently meant to run until at least 31 December, is set to be changed as it is reportedly not generating economic benefit. It is unclear if the cap will be raised or removed entirely.

Read more:
As budget nears, faith in government ‘on a knife edge’

Reeves has left herself with very few political levers to pull for cash
Starmer denies waging ‘war against middle Britain’ with budget

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Billions to be allocated to NHS

The government will be putting aside up to £10bn for the NHS, largely to help it tackle ballooning waiting lists after COVID, currently at a record high of 7.6 million, and to deliver on their promise of another 40,000 hospital appointments per week.

Health Secretary Wes Streeting last week said he has agreed on a plan for NHS funding with the chancellor – but noted the funds won’t actually be available until six months’ time.

“Investment in the budget, that comes in the new fiscal year in April, so that’s spring,” he said.

Labour are facing “difficult and big choices”, Mr Streeting warned, as he said the government “can’t fix 14 years in one budget”.

Carer’s Allowance expansion

Ms Reeves is expected to raise the limit people can earn before being ineligible for the Carers Allowance from £151 a week to £181.

It would mean tens of thousands of carers who aren’t currently eligible would get an extra £81.90 a week under the scheme.

The budget is set to take place at 12.30pm on Wednesday 30 October.

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Gregg Wallace: Over half of allegations against MasterChef presenter upheld, including one of unwanted physical contact

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Gregg Wallace: Over half of allegations against MasterChef presenter upheld, including one of unwanted physical contact

An investigation into Gregg Wallace’s “inappropriate behaviour” on MasterChef has found more than half of the allegations against him have been substantiated, including one of “unwanted physical contact”.

MasterChef’s production company Banijay UK shared a summary of its report into historical allegations of misconduct against the 60-year-old presenter, carried out by independent law firm Lewis Silkin over seven months.

The report said the number of sustained allegations made Wallace’s return to MasterChef “untenable”.

Last week it emerged Wallace had been sacked as MasterChef presenter, with reports of more than 50 fresh allegations against him.

The investigation heard evidence from 78 witnesses, including 41 complainants. The investigations team spoke to Wallace three times for the report, conducting 14 hours of interviews with him.

There were 83 allegations against Wallace, and 45 of them were upheld. All were related to MasterChef.

The upheld allegations were:

• Twelve claims he made inappropriate jokes and innuendo;

• Sixteen reports he made sexually explicit comments;

• Two allegations that he made sexualised comments to or about someone;

• Four complaints that he made culturally insensitive or racist comments;

• Three claims that he was in a state of undress;

• Seven allegations of bullying;

• One allegation of unwanted touching.

Nearly all the allegations against Wallace were related to behaviour which is said to have occurred between 2005 and 2018, with just one substantiated allegation taking place after 2018.

Wallace and Anne-Marie Sterpini in 2014
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Wallace and Anne-Marie Sterpini in 2014

Ahead of the publication of the summary, Wallace had said he had been “cleared of the most serious and sensational accusations” made against him.

He also said his neurodiversity had “now formally (been) diagnosed as autism”, saying in the social media post that it was “suspected and discussed by colleagues across countless seasons of MasterChef”.

BBC held no ‘central’ information over Wallace concerns

Additionally, the report summary found there were 10 standalone allegations about other people between 2012 and 2018/2019, two of which were substantiated. These were unrelated to Wallace, and those people were not named in the summary.

The investigation found that complaints had previously been raised with the production company between 2005 and 2024.

Gregg Wallace on MasterChef. Pic: BBC/ Shine TV 2024
Image:
Gregg Wallace on MasterChef. Pic: BBC/ Shine TV 2024

While the report flagged inadequate reporting procedures before 2016, when Endemol merged with Shine ahead of Banijay acquiring Endemol Shine in 2020, it said there were significant improvements to HR processes and training after 2016.

The investigation said some formal action was taken by the BBC in 2017, but it also noted the corporation held no information regarding concerns raised over Wallace centrally, resulting in issues being addressed as a first offence.

Sky News has tried to contact Gregg Wallace today.

Gregg Wallace after being made a Member of the Order of the British Empire (MBE) by the Princess Royal in an investiture ceremony at Windsor Castle. Picture date: Tuesday February 28, 2023.
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Picture by: Andrew Matthews/PA Archive/PA Images
Date taken: 28-Feb-2023
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Gregg Wallace after being made a Member of the Order of the British Empire (MBE) by the Princess Royal in an investiture ceremony at Windsor Castle. Picture date: Tuesday February 28, 2023.
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Picture by: Andrew Matthews/PA Archive/PA Images


Responding to the findings of the report, the BBC said the corporation had “no plans to work with [Wallace] in future”, saying his behaviour “falls below the values of the BBC”.

The BBC said “opportunities were missed” to address Wallace’s behaviour, adding, “We accept more could and should have been done sooner”.

Concerning the allegations against other individuals flagged in the report, the BBC said they had asked Banijay UK to take action to address these issues, and said it would “be completed as a priority”.

The corporation has yet to decide if the unseen MasterChef series that was filmed with Wallace last year will still be aired.

Production staff deserve ‘much, much better’

Banijay UK chief executive Patrick Holland called the report “uncomfortable reading”, but said its findings provided “valuable insight” for production teams moving forward.

In a nod to Wallace’s recent autism spectrum disorder diagnosis, Mr Holland said Wallace’s neurodiversity was “relevant to certain behaviours identified in the report”, admitting “the production could have done more to identify, manage and communicate patterns of inappropriate behaviour”.

Philippa Childs, head of creative industries union Bectu, said the report findings made it clear that “inappropriate behaviour has gone unchecked for far too long,” adding: “This is a real failure by Banijay to take these issues seriously and act accordingly”.

Ms Childs said the report highlighted the precarious position of production staff, the majority of whom are freelance workers, who she said deserve “much, much better”.

Wallace was the original presenter of the BBC show Saturday Kitchen in 2002 and has also featured on Eat Well For Less?, Inside The Factory, Turn Back Time, Harvest and Supermarket Secrets.

He was best known, however, for presenting MasterChef, MasterChef: The Professionals, and Celebrity MasterChef.

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Postman who murdered and beheaded girlfriend jailed for at least 23 years

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Postman who murdered and beheaded girlfriend jailed for at least 23 years

Warning: This article contains details readers may find distressing.

An “evil” postman who moaned about being lonely hours before he severed his girlfriend’s head and tried to dismember her body has been jailed for a minimum of 23 years.

Ewan Methven murdered 21-year-old Phoenix Spencer-Horn in the flat they shared in East Kilbride, South Lanarkshire, in November last year.

The High Court in Glasgow heard the killer dumped his partner’s body parts in their hallway and failed to call emergency services for two days.

Phoenix Spencer-Horn
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Phoenix Spencer-Horn was murdered in November

The 27-year-old then bought drugs, watched pornography and sent sickening texts to Phoenix’s worried mum pretending she was still alive.

Phoenix was stabbed 20 times – including 10 times in the face – using three knives in an attack that unfolded after she returned from her waitressing job in Lanarkshire.

The 21-year-old had described Methven as her “soulmate” on social media, saying in one TikTok video: “Life is so much more beautiful and full of colour with you.”

A few months later she was murdered by the same man she had been in a relationship with for two years.

Ewan Methven.
Pic Police Scotland/PA
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Ewan Methven was jailed on Monday. Pic: Police Scotland

Methven received a life sentence with at least 23 years behind bars when he retuned to the dock on Monday.

The judge, Lord Matthews, described it as a “dreadful crime”.

He told Methven: “You were a trusted member of her family, but you betrayed that trust and robbed her of life in the cruellest way.

“Not content with what you had done to her, you robbed her of all dignity in death by decapitating her and trying to dismember her in an attempt to defeat the ends of justice.”

The pair had been in a relationship for two years.
Image:
The pair had been in a relationship for two years

Lord Matthews highlighted victim impact statements supplied by Phoenix’s family and said he had “rarely read such outpourings of grief”.

The judge said: “The way you treated this innocent young woman after her death meant that her family did not even have the comfort of saying goodbye to her.”

He added: “I have this morning seen a letter written by you, but it answers none of the questions which must be plaguing the family. You blame the effect of substances but that is no excuse.”

‘Personification of evil’

Sky News has interviewed the couple’s neighbour who lives directly next door.

Toni Brown, 25, described the horror of discovering what happened.

She said: “I think I stayed out of the house for about a week after that. I couldn’t even sit.

“It’s horrific. It gives me shivers thinking about it. It is crazy to think I stayed next door to a monster like that.

“What scares me the most is knowing she was lay there and I was in here oblivious.”

Toni Brown
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Neighbour Toni Brown spoke to Sky News

Asked whether she heard any noises or violence around the time of the murder, Ms Brown said: “There was a bad smell in my house in the early hours of the morning she was found.

“There was a bad smell in my kitchen basically where the walls join together.”

Methven’s own defence lawyer told the court that society will see the killer as the “personification of evil”.

When he eventually called 999, he claimed to have suffered a drug-induced blackout during the violent killing.

Phoenix Spencer-Horn was murdered by the man she once called her "soulmate"
Image:
Ms Spencer-Horn was murdered by the man she once called her ‘soulmate’

Another life lost to gender-based violence

The case has raised questions once again about the growing prevalence of gender-based violence.

Fiona Drouet’s daughter Emily was 18 when she took her own life at university in Aberdeen in 2016, days after being choked and slapped by her ex-boyfriend.

Angus Milligan was later convicted of physical and psychological abuse.

Fiona Drouet
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Fiona Drouet’s daughter was a victim of physical abuse from an ex-boyfriend

Ms Drouet, who now campaigns on violence against women across the UK and Ireland, has set up a charity called Emily’s Test in her daughter’s name.

Reacting to the death of Ms Spencer-Horn, Ms Drouet told Sky News: “There is another mother and father that have just been plunged into utter hell.

“Somebody once said to me that if God came to you and said, ‘I am going to give you this beautiful daughter, but you’ll only have her for 18 years and then we need to take her back, would you still want her?’ and I would take those 18 years and go through the pain rather than have nothing.

“Although just now that probably offers no words of comfort for Phoenix’s parents, maybe one day it can.”

If you suspect you are being abused and need to speak to someone, there are people who can help you, including The National Domestic Violence Helpline on 0808 2000 247 or Women’s Aid online.

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UK among 19 nations taking part in Australia’s largest war exercise – as China expected to watch

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UK among 19 nations taking part in Australia's largest war exercise - as China expected to watch

A military exercise bringing together more than 35,000 personnel across 19 different nations, including the UK, is under way in Australia – with Chinese spy ships expected to watch.

The drill – the largest-ever war fighting exercise to take place in Australia – officially started on Sunday with a ceremony in Sydney.

The biennial drill, known as Exercise Talisman Sabre, started in 2005 as a joint exercise between the US and Australia.

This year, personnel from Canada, Fiji, France, Germany, India, Indonesia, Japan, the Netherlands, New Zealand, Norway, Papua New Guinea, the Philippines, South Korea, Singapore, Thailand, Tonga, and the United Kingdom have joined.

The Ministry of Defence said the UK Carrier Strike Group, including HMS Prince of Wales and HMS Richmond, would be training with forces from New Zealand, among others, ahead of the exercise.

The UK's Carrier Strike Group taking part in Exercise Talisman Sabre. Pic: X/@COMUKCSG
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The UK’s Carrier Strike Group taking part in Exercise Talisman Sabre. Pic: X/@COMUKCSG

“F-35B jets and Merlin helicopters, part of a wider multinational force, are ready to defend and deepen ties across the Indo-Pacific under Operation Highmast,” said a post on the MoD’s X account.

This morning, the Carrier Strike Group (CSG) said on its own X account: “Exercise #TalismanSabre25 begins! UK #CSG25 is excited to join with 18 partner nations and over 35,000 military personnel for the largest iteration of the exercise in its history.”

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An Australian Airforce F35 fighter jet participates in Exercise Talisman Sabre 2025 .
PIc: AP
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An Australian Airforce F35 fighter jet participates in Exercise Talisman Sabre 2025. Pic: AP

The 19 countries will take part in the exercise over three weeks, Australia’s defence department said on Sunday, with China expected to monitor activities.

The drills will also take place in neighbouring Papua New Guinea, making it the first time Talisman Sabre activities have been held outside Australia.

Chinese ships have monitored naval exercises off the Australian coast during the last four Talisman Sabre exercises and were expected to carry out surveillance on the current exercise, Australian defence industry minister Pat Conroy said.

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Rockets are launched from a High Mobility Artillery Rocket System during Exercise Talisman Sabre 2025, Australia's largest-ever war fighting drills at Shoalwater Bay Training Area, near Rockhampton, Australia, Monday, July 14, 2025. (AP Photo/Rick Rycroft)
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Rockets are launched from a High Mobility Artillery Rocket System during Talisman Sabre 2025. Pic: AP

“The Chinese military have observed these exercises since 2017. It’d be very unusual for them not to observe it,” Mr Conroy told the Australian Broadcasting Corp.

“We’ll adjust accordingly. We’ll obviously observe their activities and monitor their presence around Australia, but we’ll also adjust how we conduct those exercises,” he added.

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Mr Conroy said the Chinese were not yet shadowing ships as of Sunday.

The drill started a day after Australian Prime Minister Anthony Albanese began a six-day visit to China, where he is expected to hold his fourth face-to-face meeting with Chinese President Xi Jinping in Beijing on Tuesday.

HIMARS rockets are fired by Australian, U.S. and Singapore defence forces.
Pic: Reuters
Image:
HIMARS rockets are fired by Australian, US and Singapore defence forces. Pic: Reuters

Mr Albanese said Chinese surveillance of Talisman Sabre would not be an issue raised with Mr Xi.

“That would be nothing unusual. That has happened in the past and I’ll continue to assert Australia’s national interest, as I do,” Mr Albanese said in Shanghai on Monday.

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