Connect with us

Published

on

The budget will increase taxes by £40bn, with the lion’s share coming from a £25bn rise in employers’ national insurance contributions, the chancellor announced at the budget.

Rachel Reeves said the amount businesses will pay on their employees’ national insurance contributions will increase from 13.8% to 15% from April 2025, with the current £9,100 annual threshold lowered to £5,000, in what she called a “difficult choice” to make.

The Office for Budget Responsibility (OBR), which monitors the government’s spending plans and performance, said most of the burden from the increase will be passed on to workers through lower wages, and consumers through higher prices.

It estimated the national insurance hike would reduce the average hours worked by the equivalent of 50,000 hours.

Follow live: All the latest on budget day

The £40bn rise in taxes is thought to be the largest increase at a budget since John Major’s government in 1993 and is set to more than fill the £22bn “black hole” Labour said the Conservative government left them with.

Ms Reeves also announced the current freeze on income tax thresholds will end in 2028/29 and will be uprated in line with inflation after that.

The previous Conservative government froze the thresholds which meant more people paying higher rates of tax as their salary increases and they move into higher tax bands.

The OBR said the tax burden will reach “a historic high of 38% of GDP by 2029/30” and predicted inflation and interest rates will both be higher as a result of the budget.

Ms Reeves said a “line-by-line breakdown” of the black hole will be published, which she said shows there were “hundreds of unfunded pressures on the public finances” under the Conservatives.

The chancellor, who said she was “deeply proud” to be the country’s first female chancellor, insisted the Labour government would “invest, invest, invest” and put “more pounds in people’s pockets”.

Please use Chrome browser for a more accessible video player

‘This budget raises taxes by £40bn’

Some of the other major changes the chancellor also announced include:

• Fuel duty will stay frozen next year and 5p cut to remain

• Capital gains tax lower rate will increase from 10% to 18%, higher rate from 20% to 24%

• Residential property capital gains tax will remain at 18% and 24%

• Two “permanently lower” business tax rates for retail, hospitality and leisure properties

• 40% relief on business rates in 2025-26 up to a £110,000 cap

• Inheritance tax thresholds frozen until 2030

• Higher rate stamp duty for second homes increased to 5% from Thursday

• Alcohol duty rates on non-draught drinks to increase in line with RPI from February

• Draught alcohol duty cut by 1.7% – 1p off a pint

• HS2 will go to Euston in central London

• Every government department must make 2% cuts by next year

• £22.6bn extra for the NHS’ day-to-day health budget, £3.1bn more for the capital budget

• £2.3bn for schools to hire teachers next year, £6.7bn for the schools capital budget

• £2.9bn for Armed Forces next year

• £500m increase in road budgets next year.

Britain's Chancellor of the Exchequer Rachel Reeves poses with the red budget box outside her office on Downing Street in London, Britain October 30, 2024. REUTERS/Mina Kim
Image:
Rachel Reeves and her Treasury team before the budget. Pic: Reuters

The chancellor started her budget speech by saying the country “voted for change” and “responsible leadership” on 4 July at the general election – and went on to attack the “irresponsibility” of the previous Conservative government.

“We must restore economic stability and turn the page on the last 14 years,” she said.

Ms Reeves added: “The party opposite failed our country. Their austerity broke our National Health Service. The British people have inherited their failure.”

“They called an election to avoid making difficult choices,” she continued.

The chancellor outlined her priorities as economic growth and the NHS, and pledged an end to “short-termism”.

Labour promised to keep the triple lock on pensions, where the state pension goes up each year by whichever is higher of 2%, inflation or earnings growth.

She said that means it will be uprated by 4.1% next year so more than 12m pensioners will be up to £470 better off.

She also set aside £11.8bn for compensation for victims of the infected blood scandal, and £1.8bn for victims of the Post Office IT scandal.

Ahead of the first Labour budget since Alistair Darling’s in 2010, Labour committed in its election manifesto to not increase income tax, national insurance or VAT on “working people”, which Ms Reeves said she had kept to.

Various ministers got into a tangle over who exactly qualified as a working person in the weeks before the budget.

Britain's Chancellor of the Exchequer Rachel Reeves poses with the red budget box outside her office on Downing Street in London, Britain October 30, 2024. REUTERS/Isabel Infantes
Image:
Pic: Reuters

A few plans were leaked or announced ahead of the budget, including:

• All private school fees will include VAT from January, business tax relief to be removed from private schools in April

• An increase on employers’ national insurance – but they did not say by how much

• A change to the fiscal rules – the way in which the government borrows and pays back money – in order to allow for greater investment spending

• An increase to the bus fare cap by 50% to £3

• A boost to the national living wage, with the minimum someone aged 21 and over can be paid increasing by 6.7% to £12.21 an hour

• The national minimum wage, for 16 to 20-year-olds, will also increase – by 16.3% to £10 an hour.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow @SkyNews on X or subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

UK

Russia accuses British government of being ‘provocative’ after spy ship nears UK

Published

on

By

Russian spy ship on edge of UK waters, warns defence secretary

Russia has accused the British government of “provocative statements” and an “escalation of militaristic hysteria” after the defence secretary warned a Kremlin spy ship was nearing the UK.

At a news conference in Downing Street on Wednesday, John Healey said the Yantar was on the edge of British waters north of Scotland, having entered wider UK waters over the last few weeks.

He said it was the second time this year the ship had been deployed off the UK coast and he claimed it was “designed for gathering intelligence and mapping our undersea cables”.

Russian spy ship the Yantar. Pic: Ministry of Defence
Image:
Russian spy ship the Yantar. Pic: Ministry of Defence

Politics latest: ‘Budget leaks are not acceptable,’ says Reeves

Mr Healey said the ship had “directed lasers” at pilots of surveillance aircraft monitoring its activities – a Russian action he called “deeply dangerous”.

The defence secretary explained: “We deployed a Royal Navy frigate and RAF planes to monitor and track this vessel’s every move, during which the Yantar directed lasers at our pilots.”

He said his message to Moscow and President Vladimir Putin was “we see you, we know what you’re doing, and if the Yantar travels south this week, we are ready”.

More on Defence

Mr Healey also stated the UK government has “military options ready” if the ship sails closer to British shores.

Russia’s response

Responding to Mr Healey’s comments, the Russian embassy to the UK said on social media it noted his “latest provocative statements” and insisted the ship was an “oceanographic research vessel… in international waters”.

The embassy said the British accusations “raise a smile” and Russia’s actions were “not aimed at undermining” the UK’s security.

It hit out at the UK government’s “Russophobic course and the escalation of militaristic hysteria”, which it warned creates “prerequisites for new dangerous situations”, as it urged London to “refrain from destructive steps”.

Read more:
Analysis: A Bond-villain ship prowling our waters

Russian spy ship the Yantar. Pic: MoD/PA
Image:
Russian spy ship the Yantar. Pic: MoD/PA

The defence secretary’s remarks come after a report from MPs warned the UK lacks a plan to defend itself from a military attack, despite the government promising to boost readiness with new arms factories.

At least 13 sites across the UK have been identified for new factories to make munitions and military explosives, with Mr Healey expecting the arms industry to break ground at the first plant next year.

The report, by the Commons Defence Committee, said the UK “lacks a plan for defending the homeland and overseas territories” as it urged the government to launch a “co-ordinated effort to communicate with the public on the level of threat we face”.

‘Assertive retaliation’

Now the government has been cautioned it may need to be “more muscular” in standing up to Russia.

The chair of the Joint Committee on National Security Strategy, Matt Western, said Wednesday’s development “demonstrates once again that Russia presents a genuine and immediate threat to the UK’s security”.

He added that “the UK needed to be more muscular in tackling Russian aggression” and “there is more we can do”.

“More assertive retaliation may be required,” he concluded.

Mr Healey acknowledged the dangers facing the UK, saying the country was in a “new era of threat” that “demands a new era for defence”.

Giving more details on the vessel, he said it was “part of a Russian fleet designed to put and hold our undersea infrastructure and those of our allies at risk”.

Read more from Sky News:
Briton who volunteered as spy for Russia jailed

Rail line blast ‘initiated by Russian secret services’

He said the Yantar wasn’t just part of a naval operation but part of a Russian programme driven by Moscow’s Main Directorate of Deep-Sea Research, or GUGI, which is “designed to have capabilities which can undertake surveillance in peacetime and sabotage in conflict”.

“That is why we’ve been determined, whenever the Yantar comes into British wider waters, we track it, we deter it and we say to Putin we are ready, and we do that alongside allies,” he added.

Asked by Sky News’ political correspondent Rob Powell whether this was the first time that lasers had been used by a Russian vessel against pilots, Mr Healey replied: “This is the first time we’ve had this action from Yantar directed against the British RAF.

“We take it extremely seriously. I’ve changed the Navy’s rules of engagement so that we can follow more closely, monitor more closely, the activities of the Yantar when it’s in our wider waters. We have military options ready.”

Mr Healey added that the last time the Yantar was in UK waters, the British military surfaced a nuclear-powered attack submarine close to the ship “that they did not know was there”.

Continue Reading

UK

Robert Best death: Women in court after man’s body found in Inverclyde field

Published

on

By

Robert Best death: Women in court after man's body found in Inverclyde field

Two women have appeared in court charged with attempting to defeat the ends of justice after a man was found dead in a field in Inverclyde.

The body of Robert Best, 50, was discovered near High Mathernock Farm, Kilmacolm, on the morning of 11 November.

He had been reported missing from Greenock the same day.

Surrounding fields in the area Robert Best's body was discovered
Image:
Surrounding fields in the area Robert Best’s body was discovered

Dorothy Shields, 64, and Nicola Brisland, also known as Nicola Campbell, 41, were arrested and charged in connection with Mr Best’s death.

The pair appeared before Greenock Sheriff Court on Wednesday, where they made no plea to the charge of attempting to defeat the ends of justice.

The suspects, both of Port Glasgow, were granted bail ahead of their next court appearance, which is yet to be confirmed.

Andrew Brodie, 51, and Stephen Shields, 44, have already appeared in court in connection with the case.

More on Scotland

The pair have each been charged with murder and attempting to defeat the ends of justice.

The suspects, both of Greenock, made no plea to the two separate charges last week and were remanded in custody ahead of their next court appearance.

A 45-year-old man previously arrested in connection with assault and a 41-year-old man arrested at the same time as the two women have both been released pending further enquiries.

Read more from Sky News:
Police probe ‘unexplained’ death of 11-year-old girl
Ex-Met officer guilty of more sexual offences

Police Scotland previously said officers investigating Mr Best’s death were carrying out enquiries into a report of a disturbance in Lansbury Street, Greenock, which took place between 11pm on 10 November and 3am on 11 November.

A force spokesperson said: “Enquiries are ongoing.”

Continue Reading

UK

Illegal mountain of waste next to river ‘utterly appalling’, says PM

Published

on

By

Illegal mountain of waste next to river 'utterly appalling', says PM

Sir Keir Starmer has called the pile of fly-tipped illegal waste next to a river in Oxfordshire “utterly appalling” and said “all available powers” will be used to make those responsible cover the cost of the clean-up.

Liberal Democrat leader Sir Ed Davey said the pile of rubbish in a field beside the River Cherwell in Kidlington is now 150m long and up to 12m high, adding that water is “now lapping against the waste and carrying it into the river”.

Speaking at PMQs, Sir Ed said it is just one of many sites where organised criminal gangs are “illegally dumping their waste onto our countryside and getting away with it”.

“This is a shocking environmental emergency. So will he instruct the Environment Agency to clean it up now?” Sir Ed added.

Sir Keir responded in the House of Commons on Wednesday, calling the scenes “utterly appalling”.

The prime minister said: “A criminal investigation, as he knows, is under way. Specialist officers are tracking down those responsible.

“The Environmental Agency, in answer to this question, will use all available powers to make sure that the perpetrators cover the cost of the clean-up, which must now follow.”

Pic: Sky News
Image:
Pic: Sky News

Please use Chrome browser for a more accessible video player

UK’s ‘biggest ecological disaster’

Sir Keir added: “We have boosted the Environment Agency’s budget for tackling waste crime by 50%, giving councils new powers to seize and crush fly-tippers, vehicles and lawbreakers can now face up to five years in jail.”

Earlier this week, Calum Miller, Liberal Democrat MP for Bicester and Woodstock, said recent heavy rainfall brought by Storm Claudia at the weekend had made the situation more urgent, and meant the rubbish was slowly floating towards the river, which eventually flows through Oxford and feeds the Thames.

Calum Miller, Liberal Democrat MP for Bicester and Woodstock
Image:
Calum Miller, Liberal Democrat MP for Bicester and Woodstock

Pic: Sky News
Image:
Pic: Sky News

Mr Miller also told Sky News on Sunday it was the first time he had seen anything on this scale, questioning whether the Environmental Agency had the resources to deal with it.

The cost of removing the waste is estimated to be more than the entire annual budget of the local council, which is about £25m.

Read more from Sky News:
Weather warnings for snow and ice updated
What is the mysterious Yantar ‘spy ship’?

With the site on a floodplain, Mr Miller listed what he saw as the three major environmental risks – waste being washed into the waterways, rain seeping through the waste and carrying toxins into the water and the danger of decomposing chemicals presenting a fire risk.

The site is adjacent to the A34, a busy road running through cities including Oxford and Birmingham.

He said the police had used a helicopter with a heat-seeking camera, and could see that some of the waste was beginning to decompose.

Please use Chrome browser for a more accessible video player

‘Mountain’ of waste dumped

Mr Miller said he believed the Environment Agency was first made aware of the issue back in July.

He said he believed it was the work of “organised criminal gangs” and raised a “bigger systemic problem around the country”, with “dumps are cropping up in more and more places”.

He added: “My concern is the Environmental Agency lacks the resources to deal with criminal activity on this scale. I’m calling on the government to take action and ensure those who are dealing with such incidents have the powers they need to tackle it at source.”

Anna Burns, the Environment Agency’s director for the Thames area, said on Wednesday: “Most of the tipping happened before we were aware of it. As soon as we were aware, we acted quickly and decisively.”

Ms Burns said: “We are pursuing this as a criminal investigation and currently following a number of leads, and we are laser focused on pursing that investigation.

“And we are working with partners to understand the risks associated with the site.”

She said the agency will pursue the perpetrators to make them pay for the “blight on the landscape” they had caused.

Continue Reading

Trending