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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 will raise taxes by £40bn.

National insurance (NI) 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 in the future, 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 then 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 will rise by 6.7% to £12.21 an hour for people aged 21 and over. 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 still be able to claim carers allowance while earning more than £10,000 a year (the equivalent of 16 hours work a week). This will mean an extra £81.90 a week for those newly eligible.

• 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.

• The maximum amount allowed in an ISA (individual savings account) will be frozen at £20,000 until 2030.

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

• An increase in employment allowance from £5,000 to £10,000 will mean 65,000 businesses won’t pay any national insurance at all next year. It will also 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 for facilities and equipment.

• 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.

• The ‘right-to-buy’ discount on people buying their council properties will fall and councils will be allowed to keep the full amount from sales.

Fuel duty

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

Alcohol duty

• A cut to draught alcohol duty of 1.7%, which could make drinks in pubs bought on draught 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 of £2.20 per 10ml from October 2026.

Schools / education

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

• Some 500 old state schools that are 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 concerns about reinforced aerated autoclaved concrete (RAAC).

• 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.

• There will also be an investment of £300m for further education and £1bn for children with special educational needs (SEN).

Transport

• The HS2 rail link to Birmingham will end at London Euston, following speculation trains would terminate at Old Oak Common in west London.

• 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 the pledged target of 2.5% of GDP next year – with an increase of £2.9bn.

• There will be a commitment of £3bn a year for Ukraine for “as long as it takes” to end the war there.

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 in line with inflation, with an increase in the drinks levy. Nearly £1bn a year will be raised thanks to the measure.

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

• The budget for compensating victims of the infected blood scandal will be £11.8bn, with the Post Office Horizon scandal totalling £1.8bn.

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‘They know Britain is a soft country’: The visa overstayers living under the radar

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'They know Britain is a soft country': The visa overstayers living under the radar

Ramesh lives in fear every day. A police siren is enough to alarm him.

He’s one of up to 400,000 visa overstayers in the UK, one lawyer we spoke to believes.

It’s only an estimate because the Home Office has stopped collecting figures – which were unreliable in the first place.

Britain is being laughed at, one man told us, “because they know it’s a soft country”.

'Ramesh' came to the UK from India
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‘Ramesh’ came to the UK from India

We meet Ramesh (not his real name) at a Gurdwara, a Sikh place of worship, where he goes for food and support.

He insists he can’t return to India where he claims he was involved in political activism.

Ramesh says he came to the UK on a student visa in 2023, but it was cancelled when he failed to continue his studies after being involved in a serious accident.

He tells us he is doing cash-in-hand work for people who he knows through the community where he is living and is currently working on a house extension where he gets paid as little as £50 for nine hours labouring.

“It’s very difficult for me to live in the UK without my Indian or Pakistani community – also because there are a lot of Pakistani people who give me work in their houses for cleaning and for household things,” he adds.

‘What will become of people like us?’

Anike has lived in limbo for 12 years.

Now living in Greater Manchester, she came to the UK from Nigeria when her sister Esther was diagnosed with a brain tumour – she had a multi-entry visa but was supposed to leave after three months.

Esther had serious complications from brain surgery and says she is reliant on her sister for care.

Immigration officials are in touch with her because she has to digitally sign in every month.

Anike has had seven failed applications for leave to remain on compassionate grounds refused but is now desperate to have her status settled – afraid of the shifting public mood over migration.

“Everybody is thinking ‘what will become of people like us?'” she adds.

It’s a shambles’

The government can’t say with any degree of accuracy how many visa overstayers there are in Britain – no data has been collated for five-and-a-half years.

But piecing together multiple accounts from community leaders and lawyers the picture we’ve built is stark.

Immigration lawyer Harjap Singh Bhangal told us he believed there could be several hundred thousand visa overstayers currently in Britain.

He says: “At this time, there’s definitely in excess of about 200,000 people overstaying in the UK. It might even be closer to 300,000, it could even be 400,000.”

Asked what evidence he has for this he replies: “Every day I see at least one overstayer, any immigration lawyers like me see overstayers and that is the bulk of the work for immigration lawyers.

The Home Office doesn’t have any accurate data because we don’t have exit controls. It’s a shambles. It’s an institution where every wall in the building is cracked.”

The number of those who are overstaying visas and working cash in hand is also virtually impossible to measure.

‘They know Britain is a soft country’

“They’re laughing at us because they know Britain is a soft country, where you won’t be picked up easily,” says the local man we’ve arranged to meet as part of our investigation.

We’re in Kingsbury in northwest London – an area which people say has been transformed over the past five years as post-Brexit visa opportunities opened up for people coming from South Asia.

‘Mini-Mumbai’

The man we’re talking to lives in the community and helps with events here. He doesn’t want to be identified but raises serious questions about visa abuse.

“Since the last five years, a huge amount of people have come in this country on this visiting visa, and they come with one thing in mind – to overstay and work in cash,” he says.

“This area is easy to live in because they know they can survive. It looks like as if you are walking through mini-Mumbai.”

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‘The system is more than broken’

‘It’s taxpayers who are paying’

And he claims economic migrants are regularly arriving – who’ve paid strangers to pretend they’re a friend or relative in order to obtain a visitor visa to get to Britain.

He says: “I’ve come across so many people who have come this way into this country. It’s widespread. When I talk to these people, they literally tell me, ‘Oh, someone is coming tomorrow, day after tomorrow, someone is coming’.

“Because they’re hidden they may not be claiming benefits, but they can access emergency healthcare and their children can go to school.

“And who is paying for it? It’s the taxpayers who are paying for all this,” says the man we’ve met in north London.

Read more from Sky News:
Net migration figures hit four-year low
How Denmark may inspire UK asylum reforms

A Home Office spokesperson said: “We will not tolerate any abuse of our immigration system and anyone found to be breaking the rules will be liable to have enforcement action taken against them.

“In the first year of this government, we have returned 35,000 people with no right to be here – a 13% rise compared to the previous year.

“Arrests and raids for illegal working have soared to their highest levels since records began, up 63% and 51%.”

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The government doesn’t know how many people are overstaying their visas – here’s why

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The government doesn't know how many people are overstaying their visas - here's why

The government can’t say with accuracy how many visa overstayers there are in Britain – no data has been collated for five-and-a-half years.

Sky News has spoken to immigration lawyers about the numbers, and one believes there could be as many as 400,000 living across the country.

Harjap Singh Bhangal described the situation as a “shambles”.

The Home Office doesn’t have any accurate data because we don’t have exit controls. It’s a shambles. It’s an institution where every wall in the building is cracked,” he told Sky’s Lisa Holland.

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The visa overstayers in ‘soft’ Britain

Why doesn’t the government know?

The Home Office used to gather data on visa overstayers by effectively checking a list of passport numbers associated with visas against a list of passport numbers of people leaving the UK, taken from airlines and other international travel providers.

If there was a passport number match in the arrivals and departures part of their database, that person was recorded to have left when they should have. If there wasn’t, they were a potential overstayer.

They stopped producing the figures because a combination of Brexit and COVID added complications that made the Home Office conclude they wouldn’t be able to get to a reliable number using the same method.

It’s now four and a half years since EU citizens had freedom of movement to the UK revoked, and more than three and a half years since pandemic-era travel restrictions ended.

And yet we are still waiting to see what a new method might look like.

Read more from Sky News:
Is this what the beginning of a war looks like?
There’s one big problem with Australia’s social media ban

The old method wasn’t perfect. If someone changed their passport while in the UK, for example, or if the airline or individual entered the number wrong when they were leaving, there wouldn’t be a match.

The Home Office regarded the statistics as likely overestimating the true number of overstayers, and the Office for National Statistics designated the figures as “experimental” rather than “official” statistics, meaning the conclusions should be treated with caution. But they were a reasonable best guess.

With all that in mind, between April 2016 and March 2020 upwards of 250,000 people were flagged as potential overstayers, equivalent to 63,000 per year.

That’s more than the 190,000 people who are recorded to have arrived in the UK on small boats since 2018.

It represents 3.5% of the seven million visas that expired over that period, so at least 96.5% of people left when they should.

Other Home Office data reveals that more than 13 million visas were issued between 2020 and the end of June 2025, including a record 3.4 million in 2023.

But what we don’t know is how many have expired, which means it’s difficult for us to even guess how many people might have overstayed.

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‘Exceptional’ British soldier killed in Ukraine accident pictured

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British soldier killed in Ukraine named - as Trump exchanges 'strong words' with Kyiv's allies

The Ministry of Defence have shared a picture of the British soldier who was killed in a “tragic accident” in Ukraine, as Volodymyr Zelenskyy prepares to give Donald Trump a revised plan for peace with Russia.

The Ukrainian president said his delegation is set to hand Kyiv’s proposal to Washington in the “near future”, ahead of talks between European leaders over the plan next week.

But they will comes after Mr Trump called European leaders “weak” and criticised them for failing to end the war between Russia and Ukraine.

As it happened: Soldier who died in Ukraine pictured for first time

Meanwhile, tributes have come in for Lance Corporal George Hooley, a 28-year-old paratrooper who died on Tuesday while observing Ukrainian forces testing a new defensive capability away from the frontline.

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Is Europe’s transatlantic relationship with America on life support?

The MoD said he joined the army in November 2015 and was regarded as “an exceptional soldier and an impressive junior leader with extensive operational experience”.

In a statement released through the ministry, Lance Corporal Hooley’s commanding officer said that the paratrooper had had an “incredibly bright” future in the Parachute Regiment.

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“I have no doubt that he would have continued to perform at the very front of his peer-group over the coming years,” they added.

“All members of The Parachute Regiment mourn his loss; however, our sorrow is nothing compared to that being felt by his family, our thoughts and prayers are with them at this incredibly difficult time.”

Lance Corporal George Hooley with his dog Mabel. Pic: Ministry of Defence
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Lance Corporal George Hooley with his dog Mabel. Pic: Ministry of Defence

‘If you met George Hooley, you remembered it’

The company commander added: “If you met George Hooley, you remembered it.” They said the paratrooper had a “rare gift” and was a “model of professionalism”.

Britain’s Defence Secretary John Healey said the Lance Corporal “served our country with distinction and professionalism” and was “an exceptional soldier who will be very deeply missed”.

“The tributes that have been paid to him are a testament to his exceptional attitude and ability,” Mr Healey said. “George’s tragic death reminds us of the courage and commitment with which our outstanding armed forces serve every day to protect our nation.”

Zelenskyy: Ukraine to share peace plan in ‘near future’

Mr Zelenskyy said that Ukraine was finalising a 20-point peace document to share with the United States.

“We are working very productively to guarantee future security and prevent a recurrence of Russian aggression,” he said.

But Mr Trump had accused Mr Zelenskyy of not reading the original American-backed version of the peace proposal, and in an interview with Politico on Tuesday, claimed the Ukrainian president was “using war” to avoid holding an election.

Read more: Trump’s 28-point Ukraine peace plan in full

Later on Wednesday, Mr Zelenskyy said Kyiv’s peace delegation held a “productive conversation” with the US, and “discussed key issues for recovery, various mechanisms, and visions of reconstruction”.

Prime Minister Sir Keir Starmer, German Chancellor Friedrich Merz and French President Emmanuel Macron also spoke with the US president by phone on Wednesday.

In Ukraine shelling at a hospital in the occupied southern Kherson region killed three medical workers and injured two others, according to a governor installed by Russia.

And on Wednesday morning, Ukraine said its energy infrastructure had been targeted by Russian drone strikes in the southern Odesa region.

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