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

This page is being updated, refresh to see more as it’s announced.

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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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President Bush determined to ‘rid world of evil-doer Saddam Hussein’, new records reveal

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President Bush determined to 'rid world of evil-doer Saddam Hussein', new records reveal

It would have been “politically impossible” to stop President Bush from invading Iraq, as he believed he was on a “crusade against evil”, new records show.

Newly declassified UK government files show Sir Tony Blair was warned by his US ambassador that George W Bush was determined to overthrow dictator Saddam Hussein, in the months before the invasion of Iraq.

Sir Tony, who was prime minister at the time, was trying to encourage the US president to use diplomatic means to change the situation in the Middle Eastern country, and flew to Camp David in January 2003 to make the case, just two months before the joint US-UK invasion.

The UK government was also hoping the United Nations Security Council would agree a new resolution specifically authorising the use of military force against Iraq.

But the files, made public for the first time, show that Sir Tony’s ambassador, Sir Christopher Meyer, warned him it would be “politically impossible” to sway Mr Bush away from an invasion unless Hussein surrendered.

 File photo dated 21/11/2003 of US President George Bush stood alongside Prime Minister Tony Blair
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Prime Minister Tony Blair with US President George W Bush in 2003

The documents, released by the National Archives at Kew in west London, show Sir Christopher also wrote that Mr Bush believed himself to be on “a crusade against evil to be undertaken by God’s chosen people”.

Sir Tony’s foreign policy adviser, Sir David Manning, told the PM that when he met Mr Bush, he should make the point that a new diplomatic resolution was “politically essential for the UK, and almost certainly legally essential as well”.

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But the White House was becoming increasingly impatient at the unwillingness of France and Russia – both of whom held a veto – to agree a resolution so long as UN inspectors were unable to find any evidence of Iraqi weapons of mass destruction, the supposed justification for war.

Sir Christopher warned Sir Tony shortly before his visit to see Mr Bush in January 2003 that options for a peaceful solution in Iraq had effectively run out.

(from L-R) Tony Blair, Spanish Prime Minister Jose Maria Aznar, George Bush and Portuguese Prime Minister Manuel Durao Barroso - 16/03/03
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Tony Blair speaking at a press conference following talks over Iraq in March 2003, watched on by George Bush and the leaders of Spain and Portugal

He wrote: “It is politically impossible for Bush to back down from going to war in Iraq this spring, absent Saddam’s surrender or disappearance from the scene.

“If Bush had any room for manoeuvre beforehand this was closed off by his State of the Union speech.

“In the high-flown prose to which Bush is drawn on these set-piece occasions, he said in effect that destroying Saddam is a crusade against evil to be undertaken by God’s chosen people.”

File photo of Iraqi President Saddam Hussein, December 31, 2001. REUTERS/Faleh Kheiber SJS/CMC
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Saddam Hussein in 2001 – he was captured by US soldiers in December 2013

In a cable sent the previous month, Sir Christopher said that much of the impulse for deposing Hussein was coming from the president, a born-again Christian, who was scornful of what he saw as the “self-serving” reservations of the Europeans.

“His view of the world is Manichean. He sees his mission as ridding it of evil-doers. He believes American values should be universal values,” Sir Christopher stated.

“He is strongly allergic to Europeans collectively. Anyone who has sat round a dinner table with low-church Southerners will find these sentiments instantly recognisable.”

In the end, Sir Tony and Mr Bush abandoned efforts to get a new Security Council resolution, blaming French President Jacques Chirac for refusing, and launched the invasion of Iraq anyway.

Lobbying from Mandelson and anger at the French

Among the new files, there are also a number of other revelations. These include:

  • Current UK ambassador to the US, Sir Peter Mandelson, was so desperate to get back into government following his second resignation from Sir Tony’s government that he asked Lord Birt, a policy adviser to Downing Street, to write to the prime minister in 2003, asking for him to receive a role – four months before Sir Peter was appointed as the UK’s next European commissioner
  • Sir Tony was furious at French president Jacques Chirac’s efforts to undermine pressure being put on Zimbabwean dictator Robert Mugabe by the UK in 2003, over growing violence caused by a policy of driving the remaining white farmers from their lands in the African nation
  • The prime minister also insisted on changing the rules around which parties can lay wreaths at the Cenotaph on Remembrance Sunday in a bid to protect the Northern Irish peace process in 2004, despite warning this could create an “adverse reaction” from the SNP and Plaid Cymru

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People smugglers to have assets frozen and be banned from UK

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People smugglers to have assets frozen and be banned from UK

People smugglers face having their assets frozen and being banned from entering the UK, the foreign secretary has announced.

David Lammy said new powers under the Sanctions Act will allow the UK to freeze the assets of anyone complicit in smuggling illegal migrants into the country.

They can also be banned from travelling to the UK.

The first wave of sanctions on smuggling gangs and their enablers will be imposed on Wednesday.

Mr Lammy said it is the “world’s first sanctions regime” targeted at smuggling gangs.

Gang leaders, small boat suppliers, people making and selling fake passports and middlemen facilitating payments by migrants through hawala networks (informal systems for transferring money) will all be targeted this week.

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They will be publicly named on a sanctions list, making it illegal for the UK financial system to engage with them.

By using the Sanctions Act, the government said it can target the smuggling gangs wherever they are in the world, including where law enforcement and criminal justice approaches cannot reach.

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How people smugglers dodge French police

Labour’s manifesto promised to “smash the gangs”, but the first half of 2025 has seen a record number of small boat crossings, with about 20,000 from January to June – the highest ever in that period, and 48% more than the first half of 2024.

Earlier this month, the UK and France announced a pilot scheme under which migrants arriving in the UK illegally from France will be returned and a legitimate asylum seeker will be able to come to the UK. They did not say how many would be returned each week, but the suggestion was 50.

People thought to be migrants wade through the sea to board a small boat leaving the beach at Gravelines, France, in an attempt to reach the
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Migrants wading through the sea in France to board a small boat destined for the UK. Pic: PA

On the latest sanctions, Foreign Secretary David Lammy said: “For too long, criminal gangs have been lining their corrupt pockets and preying on the hopes of vulnerable people with impunity as they drive irregular migration to the UK. We will not accept this status quo.

“It is our moral duty and a key part of our Plan for Change to do all we can to smash these gangs and secure Britain’s borders.

“That’s why the UK has created the world’s first sanctions regime targeted at gangs involved in people smuggling and driving irregular migration, as well as their enablers.

“From tomorrow, those involved will face having their assets frozen, being shut off from the UK financial system and banned from travelling to the UK.”

Home Secretary Yvette Cooper said the sanctions send a “clear message that there is no hiding place for those who exploit vulnerable people and put lives at risk for profit”.

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Crypto ATMs seized in the UK amid growing scrutiny of kiosk-based exchanges

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Crypto ATMs seized in the UK amid growing scrutiny of kiosk-based exchanges

Crypto ATMs seized in the UK amid growing scrutiny of kiosk-based exchanges

Crypto ATM arrests in London come as US states like Wisconsin move to limit daily transactions and mandate fraud warnings.

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