• 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%.
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• 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 £10,000will 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.
• 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.
• Local government will receive funding worth “at least” £600m for social care.
• 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 will be frozen this year and next, with the existing 5p cut maintained.
• 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.
• 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 stateschools 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).
• 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.
• The energy profits levy on oil and gas companies will increase to 38% until March 2030.
• 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.
• 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 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.
An alleged attack by the Manchester Arena bomb plotter on prison officers at a high-security jail “will stick with” those impacted “for the rest of their lives”, a former officer and colleague of the victims has said.
He was serving his sentence in a separation unit, known as a “jail within a jail”, after being found guilty of 22 counts of murder for helping his brother Salman Abedi carry out a suicide bombing at an Ariana Grande concert in 2017.
The attack has raised fresh questions about the safety of prison staff.
Inmates inside separation units had access to cooking facilities, which has now been suspended.
Image: Abedi was moved back to Belmarsh after the alleged attack
‘It will stick with them for life’
Matthew, who only wants to be referred to by his first name, worked with the officers who were hospitalised following the attack.
“I’ve spoken to ex-colleagues who I’m still friends with,” he told Sky News.
“They’ve not discussed the specifics of the incident, but they’ve said it will stick with them for the rest of their lives.”
Matthew broke down as he described the “obscene” and “ludicrous” levels of violence that staff face inside prison.
He’s worked at a number of different jails.
“I’ve been there when you’re mopping your colleagues’ blood… when you’ve seen a serious assault, and you don’t know if they’re gonna be OK, and then 10 minutes later, you’ve got to get back on with your day, you’ve got to carry on running the regime,” he said.
“It is difficult, and it is awful.”
Image: Matthew worked with the officers who were hospitalised
‘No adequate protection’
There were 10,496 assaults against prison staff in England and Wales in the 12 months to September – a 19% rise on the previous year.
“The reality is there’s no adequate protections for prison staff, and that’s a great frustration,” the general secretary of the Prison Officers’ Association union, Steve Gillan, told Sky News.
Having visited HMP Frankland earlier in the week, and spoken to many of the officers who were involved, Mr Gillan described the mood among colleagues as one of “anger, frustration, and sadness”.
The association, which represents prison officers, is calling for a “reset” – and for staff to be given stab-proof vests and tasers in “certain circumstances”.
Unwary travellers returning from the EU risk having their sandwiches and local delicacies, such as cheese, confiscated as they enter the UK.
The luggage in which they are carrying their goodies may also be seized and destroyed – and if Border Force catch them trying to smuggle meat or dairy products without a declaration, they could face criminal charges.
This may or may not be bureaucratic over-reaction.
It’s certainly just another of the barriers EU and UK authorities are busily throwing up between each other and their citizens – at a time when political leaders keep saying the two sides should be drawing together in the face of Donald Trump’s attacks on European trade and security.
Image: Keir Starmer’s been embarking on a reset with European leaders. Pic: Reuters
The ban on bringing back “cattle, sheep, goat, and pig meat, as well as dairy products, from EU countries into Great Britain for personal use” is meant “to protect the health of British livestock, the security of farmers, and the UK’s food security.”
There are bitter memories of previous outbreaks of foot and mouth disease in this country, in 1967 and 2001.
In 2001, there were more than 2,000 confirmed cases of infection resulting in six million sheep and cattle being destroyed. Footpaths were closed across the nation and the general election had to be delayed.
In the EU this year, there have been five cases confirmed in Slovakia and four in Hungary. There was a single outbreak in Germany in January, though Defra, the UK agriculture department, says that’s “no longer significant”.
Image: Authorities carry disinfectant near a farm in Dunakiliti, Hungary. Pic: Reuters
Better safe than sorry?
None of the cases of infection are in the three most popular countries for UK visitors – Spain, France, and Italy – now joining the ban. Places from which travellers are most likely to bring back a bit of cheese, salami, or chorizo.
Could the government be putting on a show to farmers that it’s on their side at the price of the public’s inconvenience, when its own measures on inheritance tax and failure to match lost EU subsidies are really doing the farming community harm?
Many will say it’s better to be safe than sorry, but the question remains whether the ban is proportionate or even well targeted on likely sources of infection.
Image: No more gourmet chorizo brought back from Spain for you. File pic: iStock
A ‘Brexit benefit’? Don’t be fooled
The EU has already introduced emergency measures to contain the disease where it has been found. Several thousand cattle in Hungary and Slovenia have been vaccinated or destroyed.
The UK’s ability to impose the ban is not “a benefit of Brexit”. Member nations including the UK were perfectly able to ban the movement of animals and animal products during the “mad cow disease” outbreak in the 1990s, much to the annoyance of the British government of the day.
Since leaving the EU, England, Scotland and Wales are no longer under EU veterinary regulation.
Northern Ireland still is because of its open border with the Republic. The latest ban does not cover people coming into Northern Ireland, Jersey, Guernsey, or the Isle of Man.
Rather than introducing further red tape of its own, the British government is supposed to be seeking closer “alignment” with the EU on animal and vegetable trade – SPS or “sanitary and phytosanitary” measures, in the jargon.
Image: A ban on cheese? That’s anything but cracking. Pic: iStock
UK can’t shake ties to EU
The reasons for this are obvious and potentially make or break for food producers in this country.
The EU is the recipient of 67% of UK agri-food exports, even though this has declined by more than 5% since Brexit.
The introduction of full, cumbersome, SPS checks has been delayed five times but are due to come in this October. The government estimates the cost to the industry will be £330m, food producers say it will be more like £2bn.
With Brexit, the UK became a “third country” to the EU, just like the US or China or any other nation. The UK’s ties to the European bloc, however, are much greater.
Half of the UK’s imports come from the EU and 41% of its exports go there. The US is the UK’s single largest national trading partner, but still only accounts for around 17% of trade, in or out.
The difference in the statistics for travellers are even starker – 77% of trips abroad from the UK, for business, leisure or personal reasons, are to EU countries. That is 66.7 million visits a year, compared to 4.5 million or 5% to the US.
And that was in 2023, before Donald Trump and JD Vance’s hostile words and actions put foreign visitors off.
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Trump: ‘Europe is free-loading’
More bureaucratic botheration
Meanwhile, the UK and the EU are making travel between them more bothersome for their citizens and businesses.
This October, the EU’s much-delayed EES or Entry Exit System is due to come into force. Every foreigner will be required to provide biometric information – including fingerprints and scans – every time they enter or leave the Schengen area.
From October next year, visitors from countries including the UK will have to be authorised in advance by ETIAS, the European Travel and Authorisation System. Applications will cost seven euros and will be valid for three years.
Since the beginning of this month, European visitors to the UK have been subject to similar reciprocal measures. They must apply for an ETA, an Electronic Travel Authorisation. This lasts for two years or until a passport expires and costs £16.
The days of freedom of movement for people, goods, and services between the UK and its neighbours are long gone.
The British economy has lost out and British citizens and businesses suffer from greater bureaucratic botheration.
Nor has immigration into the UK gone down since leaving the EU. The numbers have actually gone up, with people from Commonwealth countries, including India, Pakistan and Nigeria, more than compensating for EU citizens who used to come and go.
Image: Editor’s note: Hands off my focaccia sandwiches with prosciutto! Pic: iStock
Will European reset pay off?
The government is talking loudly about the possible benefits of a trade “deal” with Trump’s America.
Meanwhile, minister Nick Thomas Symonds and the civil servant Mike Ellam are engaged in low-profile negotiations with Europe – which could be of far greater economic and social significance.
The public will have to wait to see what progress is being made at least until the first-ever EU-UK summit, due to take place on 19 May this year.
Hard-pressed British food producers and travellers – not to mention young people shut out of educational opportunities in Europe – can only hope that Sir Keir Starmer considers their interests as positively as he does sucking up to the Trump administration.
A 41-year-old man from Penylan has been charged with murder, preventing lawful and decent burial of a dead body and assaulting a person occasioning them actual bodily harm.
A 48-year-old woman from London has been charged with preventing a lawful and decent burial of a dead body and conspiring to pervert the course of justice.
They both appeared at Cardiff Magistrates’ Court on Saturday.
“This brings our search for Paria to a sad and tragic end,” said Detective Chief Inspector Matt Powell.
“Paria’s family, all those who knew her, and those in her local community, will be deeply saddened and shocked by these latest developments.
“Family liaison officers are continuing to support Paria’s family.”