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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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Hundreds of UK moderators have left TikTok – sparking safety fears, whistleblowers reveal

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Hundreds of UK moderators have left TikTok - sparking safety fears, whistleblowers reveal

Hundreds of UK online safety workers at TikTok have already signed agreements to leave the company, whistleblowers have told Sky News, despite the firm stressing to MPs that the cuts were “still proposals only”.

More than 400 online safety workers have agreed to leave the social media company, with only five left in consultation, Sky News understands.

“[The workers have] signed a mutual termination agreement, a legally binding contract,” said John Chadfield, national officer for the Communication Workers’ Union.

“They’ve handed laptops in, they’ve handed passes in, they’ve been told not to come to the office. That’s no longer a proposal, that’s a foregone conclusion. That’s a plan that’s been executed.”

Moderators gathered to protest the redundancies
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Moderators gathered to protest the redundancies

In August, TikTok announced a round of mass layoffs to its Trust and Safety teams.

“Everyone in Trust and Safety” was emailed, said Lucy, a moderator speaking on condition of anonymity for legal reasons.

After a mandatory 45-day consultation period, the teams were then sent “mutual termination agreements” to sign by 31 October.

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Sky News has seen correspondence from TikTok to the employees telling them to sign by that date.

“We had to sign it before the 31st if we wanted the better deal,” said Lucy, who had worked for TikTok for years.

“If we signed it afterwards, that diminished the benefits that we get.”

Three former moderators at TikTok have spoken to Sky News on camera
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Three former moderators at TikTok have spoken to Sky News on camera

Despite hundreds of moderators signing the termination contracts by 31 October, Ali Law, TikTok’s director of public policy and government affairs for northern Europe, said to MPs in a letter on 7 November: “It is important to stress the cuts remain proposals only.”

“We continue to engage directly with potentially affected team members,” he said in a letter to Dame Chi Onwurah, chair of the science, innovation and technology committee.

After signing the termination contracts, the employees say they were asked to hand in their laptops and had access to their work systems revoked. They were put on gardening leave until 30 December.

“We really felt like we were doing something good,” said Saskia, a moderator also speaking under anonymity.

“You felt like you had a purpose, and now, you’re the first one to get let go.”

TikTok moderators and union workers protested outside the company's London headquarters in September
Image:
TikTok moderators and union workers protested outside the company’s London headquarters in September

A TikTok worker not affected by the job cuts confirmed to Sky News that all of the affected Trust and Safety employees “are now logged out of the system”.

“Workers and the wider public are rightly concerned about these job cuts that impact safety online,” said the TUC’s general secretary, Paul Nowak.

“But TikTok seem to be obscuring the reality of job cuts to MPs. TikTok need to come clean and clarify how many vital content moderators’ roles have gone.

“The select committee must do everything to get to the bottom of the social media giant’s claims, the wider issues of AI moderation, and ensure that other workers in the UK don’t lose their jobs to untested, unsafe and unregulated AI systems.”

Moderators and union representatives outside TikTok's offices
Image:
Moderators and union representatives outside TikTok’s offices

What TikTok has said about the job cuts

In an interview with Sky News on 18 November, Mr Law again called the cuts “proposals”.

When asked if the cuts were in fact a plan that had already been executed, Mr Law said there was “limited amounts” he could directly comment on.

TikTok told us: “It is entirely right that we follow UK employment law, including when consultations remained ongoing for some employees and roles were still under proposal for removal.

“We have been open and transparent about the changes that were proposed, including in detailed public letters to the committee, and it is disingenuous to suggest otherwise.”

The three whistleblowers Sky News spoke to said they were concerned TikTok users would be put at risk by the cuts.

The company said it will increase the role of AI in its moderation, while maintaining some human safety workers, but one whistleblower said she didn’t think the AI was “ready”.

“People are getting new ideas and new trends are coming. AI cannot get this,” said Anna, a former moderator.

“Even now, with the things that it’s supposed to be ready to do, I don’t think it’s ready.”

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Is TikTok improving safety with AI?

Lucy also said she thought the cuts would put users at risk.

“There are a lot of nuances in the language. AI cannot understand all the nuances,” she said.

“AI cannot differentiate some ironic comment or versus a real threat or bullying or of a lot of things that have to do with user safety, mainly of children and teenagers.”

TikTok has been asked by MPs for evidence that its safety rates – which are currently some of the best in the industry – will not worsen after these cuts.

The select committee says it has not produced that evidence, although TikTok insists safety will improve.

“[In its letter to MPs] TikTok refers to evidence showing that their proposed staffing cuts and changes will improve content moderation and fact-checking – but at no point do they present any credible data on this to us,” said Dame Chi earlier this month.

“It’s alarming that they aren’t offering us transparency over this information. Without it, how can we have any confidence whether these changes will safeguard users?”

Dame Chi Onwurah speaks at the House of Commons. File pic: Reuters
Image:
Dame Chi Onwurah speaks at the House of Commons. File pic: Reuters

TikTok’s use of AI in moderation

In an exclusive interview with Sky News earlier this month, Mr Law said the new moderation model would mean TikTok can “approach moderation with a higher level of speed and consistency”.

He said: “Because, when you’re doing this from a human moderation perspective, there are trade-offs.

“If you want something to be as accurate as possible, you need to give the human moderator as much time as possible to make the right decision, and so you’re trading off speed and accuracy in a way that might prove harmful to people in terms of being able to see that content.

“You don’t have that with the deployment of AI.”

As well as increasing the role of AI in moderation, TikTok is reportedly offshoring jobs to agencies in other countries.

Sky News has spoken to multiple workers who confirmed they’d seen their jobs being advertised in other countries through third-party agencies, and has independently seen moderator job adverts in places like Lisbon.

John Chadfield, national officer for technology at the Communication Workers Union
Image:
John Chadfield, national officer for technology at the Communication Workers Union

“AI is a fantastic fig leaf. It’s a fig leaf for greed,” said Mr Chadfield. “In TikTok’s case, there’s a fundamental wish to not be an employer of a significant amount of staff.

“As the platform has grown, as it has grown to hundreds of millions of users, they have realised that the overhead to maintain a professional trust and safety division means hundreds of thousands of staff employed by TikTok.

“But they don’t want that. They see themselves as, you know, ‘We want specialists in the roles employed directly by TikTok and we’ll offshore and outsource the rest’.”

Mr Law told Sky News that TikTok is always focused “on outcomes”.

He said: “Our focus is on making sure the platform is as safe as possible.

“And we will make deployments of the most advanced technology in order to achieve that, working with the many thousands of trust and safety professionals that we will have at TikTok around the world on an ongoing basis.”

Asked specifically about the safety concerns raised by the whistleblowers, TikTok said: “As we have laid out in detail, this reorganisation of our global operating model for Trust and Safety will ensure we maximize effectiveness and speed in our moderation processes.

“We will continue to use a combination of technology and human teams to keep our users safe, and today over 85% of the content removed for violating our rules is identified and taken down by automated technologies.”

*All moderator names have been changed for legal reasons.

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3.3-magnitude earthquake shakes part of northwest England

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3.3-magnitude earthquake shakes part of northwest England

A 3.3-magnitude earthquake has struck Lancashire – with dozens of people saying it shook their homes or woke them up.

The British Geological Society (BGS) told Sky News it was “felt across the South Lakes and Lancashire, mainly within 20km of the epicentre”, including Kendal and Ulverston in neighbouring Cumbria.

Preliminary data suggests it struck off the coast of Silverdale at 11.23pm, at a depth of 1.86 miles (3km).

Each year, between 200 and 300 earthquakes are detected and located in the UK by the BGS.

Between 20 and 30 earthquakes are felt by people each year, and a few hundred smaller ones are only recorded by sensitive instruments.

Most of these are very small and cause no damage.

People posted their reaction online. Reports included that the earthquake “felt like an explosion and vibration coming from underground”.

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Another comment said it “sounded like bricks falling/the roof falling in”, while another wrote that it was “so powerful to shake the whole house”.

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

Please refresh the page for the latest version.

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

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Four mayoral elections to be postponed – as Labour accused of ‘scandalous attempt to subvert democracy’

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Four mayoral elections to be postponed - as Labour accused of 'scandalous attempt to subvert democracy'

Four mayoral elections due to take place in May 2026 are set to be postponed by two years, Sky News understands.

Elections for the new mayoralties of Essex, Hampshire and the Solent, Sussex and Brighton, and Norfolk and Suffolk will be pushed back until 2028.

The decision, first revealed by The Sun, is due to be announced by ministers on Thursday.

This is the second time elections are being delayed in these areas. Local elections due in May 2025 were delayed by then communities secretary Angela Rayner for a year in order to convert them into combined authorities led by mayors.

However, it is understood that these councils need more time to complete their reorganisation.

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Will Tories and Reform unite?

The news has sparked accusations Labour are delaying the elections for political purposes.

Reform UK’s head of policy Zia Yusuf said: “This is a blatant attempt to stop big Reform wins next May.

“It’s an act of a desperate government who are clinging onto power by any means necessary.

“Labour has proven time and time again that they’re not beyond denying democracy to millions of people in order to maintain their cosy status quo.”

Pic: PA
Image:
Pic: PA

The Tories’ shadow housing secretary James Cleverly said it was a “scandalous attempt to subvert democracy by a Labour government whose credibility and popularity are already in tatters”.

“The Conservatives firmly oppose this decision to delay the mayoral elections, especially when candidates have been selected and campaigning is well under way,” he added.

“Democracy is being denied yet again after the council elections cancelled by Labour this year.

“There is no credible justification for this move. The Labour government must reverse it immediately.”

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Starmer denies misleading voters

The reorganisation is part of Labour’s manifesto commitment to widen devolution, which it argues will improve local economies.

The government wants to abolish the two-tier system of county and district councils and merge them together to create larger unitary authorities. It also wants more areas to have regional mayors, like Greater Manchester’s Andy Burnham.

Read more:
Tory-Reform pact talks ‘not happening at any level’
Reeves hit by Labour rebellion

Reform UK enjoyed success in the local elections in May, winning more than 600 seats and taking control of 10 councils stretching from Kent to County Durham. The party also toppled a 14,000-strong Labour majority in a parliamentary by-election.

The Liberal Democrats’ local government spokesperson Zoe Franklin called the postponed elections “a disgrace”.

“Democracy delayed is democracy denied,” she added. “We are fighting to end this blatant stitch up between Labour and the Conservatives over local elections.”

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