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Chancellor Rachel Reeves has finally unveiled the budget for 2024. Here are the key points:

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Taxes

• The budget raises taxes by £40bn.

National Insurance contributions for employers (not employees) will increase by 1.2 percentage points to 15% from April 2025.

The point at which employers start paying NI will fall from £9,100 a year to £5,000 a year. This will raise £25bn per year.

• The lower rate of capital gains tax (CGT) on the sale of assets will increase from 10% to 18%. The higher rate will go from 18% to 24%. CGT on the sale of residential property will also increase from 18% to 24%.

Tax thresholds will rise, meaning the point at which people pay higher taxes will be increased. These tax bands had been frozen. But this freeze will end in 2028 and the bands will increase at the rate of inflation.

• The freeze on inheritance tax will continue for a further two years until 2030. This means the first £325,000 can be inherited tax-free, rising to £500,000 if the estate is passed to direct descendants, and £1m if it’s passed to a surviving spouse or civil partner.

• From tomorrow the stamp duty surcharge for second homes, or ‘higher rate for additional dwellings’, will increase by two percentage points to 5%.

Benefits

• Health and employment services for people who are disabled and long-term sick will get £240m in funding.

• The minimum wage for people 21 and over will rise by 6.7% to £12.21 an hour. This is the equivalent of £1,400 a year for a full-time worker. Workers aged 18 to 20 will see their minimum wage increase by 16.3% to £10 an hour.

• People will now be able to earn £10,000 or more while claiming Carers Allowance. This will mean an extra £81.90 for those newly eligible.

• The household support fund will receive £1bn to help those in financial hardship with the cost of essentials.

• A new fair repayment rate will mean Universal Credit claimants who have been accidentally overpaid will only have to pay back 15% of their allowance each month, falling from 25%. This means a gain of around £420 a year for roughly 1.2 million of the poorest households.

• Businesses will get an increase in employment allowance, which will mean 65,000 employers won’t pay any National Insurance at all next year with the allowance growing from £5,000 to £10,500. This will mean more than a million businesses will pay the same or less than they did previously.

Business rates relief will fall from the current 75% down to 45% for retail, leisure and hospitality businesses.

NHS / Health

• The day-to-day NHS budget will increase by £22.6bn. There will also be a further £3.1bn investment in its capital budget.

• This will facilitate 40,000 extra hospital appointments and procedures every week and will include £1.5bn for new hospital beds.

Social care

• Local government will receive funding worth “at least” £600m for social care.

Housing

• An investment of £5bn in housing, which will increase the affordable homes programme to a budget of £3.1bn.

• In addition, £1bn will be spent on the removal of dangerous cladding, implementing the findings of the Grenfell inquiry.

Fuel duty

Fuel duty will be frozen this year and next, with the existing 5p cut maintained.

Alcohol duty

• A cut to draft alcohol duty of 1.7%, which could make drinks cheaper by 1p.

• The tax on tobacco will rise at the rate of inflation plus an additional 2%. There will also be an extra 10% on rolling tobacco.

• There will be a new flat rate duty on all vaping liquid from next October.

Schools / education

• VAT will be introduced on private school fees from January 2025 and business rates relief for private schools will be removed from April 2025.

• Some 500 state schools that are old and not fit for purpose will be rebuilt at a total cost of £1.4bn. There will be an extra £300m for school maintenance each year, which will cover dealing with RAC concerns.

• The budget for free school breakfast clubs will be tripled to £30m, in 2025 and 2026. The core budget for schools will also rise by £2.3bn next year.

• An investment of £300m for further education and £1bn for children with special educational needs (SEN).

Transport

• The HS2 rail link between Old Oak Common in west London and Birmingham has been confirmed. Tunnelling work will also begin on extending the line to London Euston.

• Air passenger duty on private jets will rise by 50%, which is the equivalent of £450 per passenger.

Windfall taxes

• The energy profits levy on oil and gas companies will increase to 38% until March 2030.

Defence

• The annual defence budget will fall below 2.5% of GDP next year – with an increase of £2.9bn for the Ministry of Defence.

• A commitment of £3bn a year for Ukraine for “as long as it takes”.

Economy

Public finances will be in surplus, rather than in deficit, by the 2027-2028 financial year. The government claims this means reaching stability two years earlier than planned.

• The Office for Budget Responsibility (OBR) predicts UK GDP growth to be 1.1% in 2024, 2.0% in 2025, 1.85% in 2026, 1.5% in 2027, 1.5% in 2028, 1.6% in 2029.

• The OBR expects public sector net borrowing to be £105.6bn in 2025-26, £88.5bn in 2026-27, £72.2bn in 2027-28, £71.9bn in 2028-29 and £70.6bn in 2029-30.

• Consumer price index (CPI) inflation will hit 2.5% this year, according to OBR forecasts. Next year it will rise to 2.6% before falling to 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2% in 2029. It’s the goal of the Treasury to bring inflation down to 2%. The Bank of England has raised interest rates to bring the rate of price rises to 2%.

The Budget

• The price of soft drinks will rise, with an increase to the drinks levy in line with inflation every year. Nearly £1bn a year will be raised thanks to the measure.

• All government departments will have their budgets reduced by 2% next year. This will be achieved by “using technology more effectively and joining up services across government”.

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UK has no plans for conscription – but future decisions will respond to ‘new reality’, says minister

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UK has no plans for conscription - but future decisions will respond to 'new reality', says minister

The UK is not considering introducing conscription to ready the country for a potential war – but decisions may be needed in the future to respond to the “new reality” we are now living in, a minister has told Sky News.

In an interview with Trevor Phillips, Latvian President Edgars Rinkeviks has urged European countries to follow his country’s lead and “absolutely” introduce conscription, conceding the continent is “quite weak” militarily.

Politics latest: Calls for European nations to reintroduce conscription

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‘Debate’ in Latvia about introducing conscription for women

Asked if the UK government is considering introducing the measure to boost the armed forces, Cabinet Office minister Pat McFadden said it is important the UK does not find itself operating under “old assumptions” – and that it may be “decisions are needed in the future that respond to a new reality”.

He told Sunday Morning with Trevor Phillips: “We are not considering conscription, but of course we have announced a major increase in defence expenditure.

“We do have to recognise that the world has changed. The phrase ‘step up’ is used a lot. Europe does have to step up in terms of its own defence.

President Trump isn’t actually the first president to say that, but he said it more loudly and with more force than his predecessors – so, I think we have got to recognise that moment.”

‘UK cannot cling to old assumptions’

He added: “When the world is changing as fast as it is, it’s important that we don’t cling on to old assumptions.

“I think the prime minister has played a tremendous role in recent weeks in responding to that situation and explaining it to the public.

“That is why the decision on increasing defence expenditure was needed.

“It may be why other decisions are needed in the future that respond to a new reality, and that we don’t find ourselves caught operating under the same assumption as we used to in the past when the situation has changed.”

‘Battlefield is changing’

Sir Keir Starmer has promised to increase defence spending to 2.5% of GDP but has not set out when this will be achieved. Ministers say a defence review to be published this spring will set out a “roadmap” to it.

The number is much lower than the US president has demanded NATO members spend on defence, with Mr Trump saying they should all be spending 5% – an amount last seen during the Cold War.

Asked if the “new reality” involved a bigger army, Mr McFadden said ministers were waiting for the conclusion of the review.

But he added: “One thing is for sure, you would not spend money today on the same things as you would 10 years ago.

“The experience of the three years of the war in Ukraine has shown just how fast the battlefield is changing in terms of cyber, drones, the use of intelligence.”

History of conscription in UK

In the UK, military conscription has existed for two periods in modern times.

The first was from 1916 to 1920 following the outbreak of the First World War in 1914, due to the dwindling number of volunteers for military service.

Lord Kitchener’s campaign – promoted by his famous “Your Country Needs You” poster – had encouraged more than one million men to enlist by January 1915. But this was not enough.

In January 1916, after much debate, the Military Service Act was passed. This imposed conscription on all single men aged between 18 and 41, but exempted the medically unfit, clergymen, teachers and certain classes of industrial worker.

Conscientious objectors – men who objected to fighting on moral grounds – were also exempt, and were given civilian jobs or non-fighting roles at the front.

Conscription was not applied to Ireland because of the 1916 Easter Rising, although many Irishmen volunteered to fight.

A second Act passed in May 1916 extended conscription to married men, and in 1918, during the last months of the war, the age limit was raised to 51.

Conscription was extended until 1920 to allow the army to deal with continuing trouble spots in the Empire and parts of Europe.

In the run-up to the Second World War, plans for limited conscription applying to single men aged between 20 and 22 were given parliamentary approval in the Military Training Act in May 1939. This required men to undertake six months’ military training.

When Britain declared war against Germany on 3 September 1939, the National Service (Armed Forces) Act imposed conscription on all males aged between 18 and 41.

Those medically unfit were exempt, as were others in key industries and jobs such as baking, farming, medicine, and engineering, while conscientious objectors had to appear before a tribunal to argue their reasons for refusing to join up.

In December 1941, a second National Service Act was approved, making all unmarried women and all childless widows between the ages of 20 and 30 liable to call-up.

The last conscription term ended in 1960, although many soldiers chose to continue in the service beyond 1963.

The Conservatives’ first policy announcement of last year’s general election campaign was that the party would introduce a new form of mandatory National Service for 18-year-olds.

Asked if the Tories still stood by the plan which was in their manifesto, shadow home secretary Chris Philp told Sunday Morning with Trevor Phillips: “We are obviously not going to write our manifesto now, so I am not going to recommit to things in the previous manifesto.

“We’ll need to do the thinking properly. I am not going to speculate four years ahead of the election.

“I don’t think it was really exactly conscription that was being proposed, it was a National Citizen Service which is a bit different.

“The idea of getting younger people to do voluntary work and perform useful tasks is not a bad idea.”

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‘Right time’ to think about conscription

Last year, Britain’s former top NATO commander told Sky News it was time to “think the unthinkable” and consider introducing conscription.

General Sir Richard Sherriff, ex-deputy supreme allied commander of the military organisation, said: “I think we need to get over many of the cultural hang-ups and assumptions, and frankly think the unthinkable.

“I think we need to go further and look carefully at conscription.”

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Police recover body in search for suspect in Valentine’s Day pub shooting

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Police recover body in search for suspect in Valentine's Day pub shooting

Police searching for the suspect in the Kent pub shooting on Valentine’s Day have recovered a body from the River Thames.

Lisa Smith, 43, was killed after she was shot outside The Three Horseshoes in Knockholt on the evening of Friday 14 February.

Later that night, the suspect, named as Edvard Smith, was believed to have fallen into the Thames from the Queen Elizabeth II Bridge which crosses the river at Dartford 17 miles away.

Lisa Smith
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Lisa Smith

Around that time, the suspect’s car containing a handgun was found abandoned on the bridge and a man was seen on the wrong side of the barrier.

About a week after the shooting, Kent Police said they believed Edvard Smith had died after falling into the water.

The force has now said a body was found in the Thames near Rainham in Essex on Friday afternoon. It has not been formally identified but the suspect’s family have been told of the development.

Edvard Smith was known to Ms Smith and there had been no prior contact between the police and the victim or suspect.

‘So much commotion’

Following the shooting, the landlady of The Three Horseshoes, Michelle Thomas, told Sky News she heard two loud bangs that she initially “thought were fireworks” on the night of the attack.

She said there was “so much commotion – screaming, shouting, crying” and the shooting had left the community in “absolute shock”.

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CCTV captures sound of gunshots near fatal shooting site

She said Ms Smith, from Slough, had been to the pub before, “mostly in the summer” but “wasn’t a regular”.

Ms Thomas also said about 30 people were at the pub for dinner, while 20 more were in the bar as the incident unfolded just after 7pm.

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Kent Police said on Saturday: “A body has been recovered by police from the River Thames, which is being linked to a murder investigation in Knockholt.

“On Friday 14 February 2025, Lisa Smith, 43, was killed after she was shot outside a pub in Main Road. The suspect was known to Lisa and later that evening officers found his car abandoned on the Queen Elizabeth II Bridge. Enquiries established he had fallen into the water below.

“At around 3.45pm on Friday 7 March, a body was located near Rainham, Essex. Formal identification has not yet taken place; however, the man’s family have been informed.”

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UK weather: Warm weekend brings 20C temperatures – hotter than Spain and Italy

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UK weather: Warm weekend brings 20C temperatures - hotter than Spain and Italy

Parts of the UK are expected to be hotter than the Balearic Islands, Costa del Sol and the Amalfi Coast this weekend.

The country is set to reach the highest temperatures of the year so far, with central England heating up to 20C on Sunday.

Saturday is also set to reach temperatures in the high teens, with East Anglia, northwest England, the north Midlands and North Wales hitting 18-19C, the Met Office said.

Those temperatures are believed to be above average for this time of year.

Get the latest forecast for your area here

Craig Snell, a meteorologist at the Met Office, said there are a “few exceptions” to the “fine and sunny” weekend weather, including areas in the far north of Scotland, but those areas will still be generally dry and sunny.

A map showing warm weather over the UK on Saturday
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A map showing warm fronts over the UK on Saturday

Meanwhile, popular holiday destinations in Europe are expected to record cooler temperatures.

A high of 15C is forecast this weekend for Marbella on the south coast of Spain, a maximum of 17C is expected in Ibiza, and 18C is forecast for Sorrento on Italy’s Amalfi Coast.

People enjoy the warm weather at Clevedon Marine Lake in Clevedon. Parts of the UK are expected to be warmer this weekend than holiday hotspots including the Balearic islands, Costa del Sol and the Amalfi Coast. Picture date: Saturday March 8, 2025. PA Photo. Photo credit should read: Ben Birchall/PA Wire
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People were out in force on Saturday, enjoying the warmer weather. Pic: PA

Joggers run along the sea front in Southend-on-Sea, Essex.
Pic: PA
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Joggers run along the sea front in Southend-on-Sea, Essex.
Pic: PA

Sky News meteorologist Chris England said the warm weekend is not expected to last, with conditions “cooling off from the North on Sunday night and through Monday”.

Colder fronts will start to move across the UK on Monday
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Colder fronts will start to move across the UK on Monday

By Wednesday the UK will experience colder temperatures
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By Wednesday the UK will experience wintry showers and cold temperatures

A spell of rain will move south across the country early next week, bringing the return of a few wintry showers in the North and North East.

“While there is uncertainty in the extent of rain and wintry showers through the middle of next week, there is higher confidence that below average temperatures will continue through the week, bringing a very different feel to the mild weather over the weekend,” deputy chief meteorologist Chris Bulmer said.

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Temperatures will drop back below average across the UK from Tuesday, according to the Met Office.

Rural spots in Scotland could plummet as low as -4C, with maximum daytime temperatures typically between 5-8C.

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