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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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US-UK trade deal ‘done’, says Trump as he meets Starmer at G7

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US-UK trade deal 'done', says Trump as he meets Starmer at G7

The UK-US trade deal has been signed and is “done”, US President Donald Trump has said as he met Sir Keir Starmer at the G7 summit.

The US president told reporters in Canada: “We signed it, and it’s done. It’s a fair deal for both. It’ll produce a lot of jobs, a lot of income.”

Sir Keir said the document “implements” the deal to cut tariffs on cars and aerospace, describing it as a “really important agreement”.

“So this is a very good day for both of our countries – a real sign of strength,” the prime minister added.

Mr Trump added that the UK was “very well protected” against any future tariffs, saying: “You know why? Because I like them”.

However, he did not say whether levies on British steel exports to the US would be set to 0%, saying “we’re gonna let you have that information in a little while”.

What exactly does trade deal being ‘done’ mean?

The government says the US “has committed” to removing tariffs (taxes on imported goods) on UK aerospace goods, such as engines and aircraft parts, which currently stand at 10%.

That is “expected to come into force by the end of the month”.

Tariffs on car imports will drop from 27.5% to 10%, the government says, which “saves car manufacturers hundreds of millions a year, and protects tens of thousands of jobs”.

The White House says there will be a quote of 100,000 cars eligible for import at that level each year.

But on steel, the story is a little more complicated.

The UK is the only country exempted from the global 50% tariff rate on steel – which means the UK rate remains at the original level of 25%.

That tariff was expected to be lifted entirely, but the government now says it will “continue to go further and make progress towards 0% tariffs on core steel products as agreed”.

The White House says the US will “promptly construct a quota at most-favoured-nation rates for steel and aluminium articles”.

Other key parts of the deal include import and export quotas for beef – and the government is keen to emphasise that “any US imports will need to meet UK food safety standards”.

There is no change to tariffs on pharmaceuticals for the moment, and the government says “work will continue to protect industry from any further tariffs imposed”.

The White House says they “committed to negotiate significantly preferential treatment outcomes”.

Mr Trump also praised Sir Keir as a “great” prime minister, adding: “We’ve been talking about this deal for six years, and he’s done what they haven’t been able to do.”

He added: “We’re very longtime partners and allies and friends and we’ve become friends in a short period of time.

“He’s slightly more liberal than me to put it mildly… but we get along.”

Sir Keir added that “we make it work”.

As the pair exited a mountain lodge in the Canadian Rockies where the summit is being held, Mr Trump held up a physical copy of the trade agreement to show reporters.

Several leaves of paper fell from the binding, and Sir Keir quickly stooped to pick them up, saying: “A very important document.”

Sir Keir Starmer picks up paper from the UK-US trade deal after Donald Trump dropped it at the G7 summit. Pic: Reuters
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Sir Keir Starmer picks up paper from the UK-US trade deal after Donald Trump dropped it at the G7 summit. Pic: Reuters

The US president also appeared to mistakenly refer to a “trade agreement with the European Union” at one point as he stood alongside the British prime minister.

Mr Trump announced his “Liberation Day” tariffs on countries in April. At the time, he announced 10% “reciprocal” rates on all UK exports – as well as separately announced 25% levies on cars and steel.

Read more:
G7 summit ‘all about the Donald’ – analysis
Scrambled G7 agenda as leaders race to de-escalate Israel-Iran conflict

In a joint televised phone call in May, Sir Keir and Mr Trump announced the UK and US had agreed on a trade deal – but added the details were being finalised.

Ahead of the G7 summit, the prime minister said he would meet Mr Trump for “one-on-one” talks, and added the agreement “really matters for the vital sectors that are safeguarded under our deal, and we’ve got to implement that”.

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Whitehall officials tried to cover up grooming scandal in 2011, Dominic Cummings says

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Whitehall officials tried to cover up grooming scandal in 2011, Dominic Cummings says

Whitehall officials tried to convince Michael Gove to go to court to cover up the grooming scandal in 2011, Sky News can reveal.

Dominic Cummings, who was working for Lord Gove at the time, has told Sky News that officials in the Department for Education (DfE) wanted to help efforts by Rotherham Council to stop a national newspaper from exposing the scandal.

In an interview with Sky News, Mr Cummings said that officials wanted a “total cover-up”.

Politics latest: Grooming gangs findings unveiled

The revelation shines a light on the institutional reluctance of some key officials in central government to publicly highlight the grooming gang scandal.

In 2011, Rotherham Council approached the Department for Education asking for help following inquiries by The Times. The paper’s then chief reporter, the late Andrew Norfolk, was asking about sexual abuse and trafficking of children in Rotherham.

The council went to Lord Gove’s Department for Education for help. Officials considered the request and then recommended to Lord Gove’s office that the minister back a judicial review which might, if successful, stop The Times publishing the story.

Lord Gove rejected the request on the advice of Mr Cummings. Sources have independently confirmed Mr Cummings’ account.

Education Secretary Michael Gove in 2011. Pic: PA
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Education Secretary Michael Gove in 2011. Pic: PA

Mr Cummings told Sky News: “Officials came to me in the Department of Education and said: ‘There’s this Times journalist who wants to write the story about these gangs. The local authority wants to judicially review it and stop The Times publishing the story’.

“So I went to Michael Gove and said: ‘This council is trying to actually stop this and they’re going to use judicial review. You should tell the council that far from siding with the council to stop The Times you will write to the judge and hand over a whole bunch of documents and actually blow up the council’s JR (judicial review).’

“Some officials wanted a total cover-up and were on the side of the council…

“They wanted to help the local council do the cover-up and stop The Times’ reporting, but other officials, including in the DfE private office, said this is completely outrageous and we should blow it up. Gove did, the judicial review got blown up, Norfolk stories ran.”

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Grooming gangs victim speaks out

The judicial review wanted by officials would have asked a judge to decide about the lawfulness of The Times’ publication plans and the consequences that would flow from this information entering the public domain.

A second source told Sky News that the advice from officials was to side with Rotherham Council and its attempts to stop publication of details it did not want in the public domain.

One of the motivations cited for stopping publication would be to prevent the identities of abused children entering the public domain.

There was also a fear that publication could set back the existing attempts to halt the scandal, although incidents of abuse continued for many years after these cases.

Sources suggested that there is also a natural risk aversion amongst officials to publicity of this sort.

Read more on grooming gangs:
What we do and don’t know from the data
A timeline of the scandal

Mr Cummings, who ran the Vote Leave Brexit campaign and was Boris Johnson’s right-hand man in Downing Street, has long pushed for a national inquiry into grooming gangs to expose failures at the heart of government.

He said the inquiry, announced today, “will be a total s**tshow for Whitehall because it will reveal how much Whitehall worked to try and cover up the whole thing.”

He also described Mr Johnson, with whom he has a long-standing animus, as a “moron’ for saying that money spent on inquiries into historic child sexual abuse had been “spaffed up the wall”.

Asked by Sky News political correspondent Liz Bates why he had not pushed for a public inquiry himself when he worked in Number 10 in 2019-20, Mr Cummings said Brexit and then COVID had taken precedence.

“There are a million things that I wanted to do but in 2019 we were dealing with the constitutional crisis,” he said.

The Department for Education and Rotherham Council have been approached for comment.

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Flawed data used repeatedly to dismiss claims about ‘Asian grooming gangs’, Baroness Casey finds

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Flawed data used repeatedly to dismiss claims about 'Asian grooming gangs', Baroness Casey finds

Flawed data has been used repeatedly to dismiss claims about “Asian grooming gangs”, Baroness Louise Casey has said in a new report, as she called for a new national inquiry.

The government has accepted her recommendations to introduce compulsory collection of ethnicity and nationality data for all suspects in grooming cases, and for a review of police records to launch new criminal investigations into historic child sexual exploitation cases.

Politics latest: Yvette Cooper reveals details of grooming gangs report

Baroness Louise Casey answering question from the London Assembly police and crime committee at City Hall in east London. Pic: PA
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Baroness Louise Casey carried out the review. Pic: PA

The crossbench peer has produced an audit of sexual abuse carried out by grooming gangs in England and Wales, after she was asked by the prime minister to review new and existing data, including the ethnicity and demographics of these gangs.

In her report, she has warned authorities that children need to be seen “as children” and called for a tightening of the laws around the age of consent so that any penetrative sexual activity with a child under 16 is classified as rape. This is “to reduce uncertainty which adults can exploit to avoid or reduce the punishments that should be imposed for their crimes”, she added.

Baroness Casey said: “Despite the age of consent being 16, we have found too many examples of child sexual exploitation criminal cases being dropped or downgraded from rape to lesser charges where a 13 to 15-year-old had been ‘in love with’ or ‘had consented to’ sex with the perpetrator.”

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Grooming gangs victim speaks out

The peer has called for a nationwide probe into the exploitation of children by gangs of men.

She has not recommended another over-arching inquiry of the kind conducted by Professor Alexis Jay, and suggests the national probe should be time-limited.

The national inquiry will direct local investigations and hold institutions to account for past failures.

Home Secretary Yvette Cooper said the inquiry’s “purpose is to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies”.

On the issue of ethnicity, Baroness Casey said police data was not sufficient to draw conclusions as it had been “shied away from”, and is still not recorded for two-thirds of perpetrators.

‘Flawed data’

However, having examined local data in three police force areas, she found “disproportionate numbers of men from Asian ethnic backgrounds amongst suspects for group-based child sexual exploitation, as well as in the significant number of perpetrators of Asian ethnicity identified in local reviews and high-profile child sexual exploitation prosecutions across the country, to at least warrant further examination”.

She added: “Despite reviews, reports and inquiries raising questions about men from Asian or Pakistani backgrounds grooming and sexually exploiting young white girls, the system has consistently failed to fully acknowledge this or collect accurate data so it can be examined effectively.

“Instead, flawed data is used repeatedly to dismiss claims about ‘Asian grooming gangs’ as sensationalised, biased or untrue.

“This does a disservice to victims and indeed all law-abiding people in Asian communities and plays into the hands of those who want to exploit it to sow division.”

Read more:
Officials tried to cover up grooming scandal, says Cummings

Why many victims welcome national inquiry into grooming gangs
Grooming gangs scandal timeline

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From January: Grooming gangs: What happened?

The baroness hit out at the failure of policing data and intelligence for having multiple systems which do not communicate with each other.

She also criticised “an ambivalent attitude to adolescent girls both in society and in the culture of many organisations”, too often judging them as adults.

‘Deep-rooted failure’

Responding to Baroness Casey’s review, Ms Yvette Cooper told the House of Commons: “The findings of her audit are damning.

“At its heart, she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence.

She added: “Baroness Casey found ‘blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions’ all played a part in this collective failure.”

Ms Cooper said she will take immediate action on all 12 recommendations from the report, adding: “We cannot afford more wasted years repeating the same mistakes or shouting at each other across this House rather than delivering real change.”

Yvette Cooper makes a statement in the House of Commons, London, on Baroness Casey's findings on grooming gangs.
Pic: PA
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Home Secretary Yvette Cooper responded to the report. Pic: PA

Conservative leader Kemi Badenoch said: “After months of pressure, the prime minister has finally accepted our calls for a full statutory national inquiry into the grooming gangs.

“We must remember that this is not a victory for politicians, especially the ones like the home secretary, who had to be dragged to this position, or the prime minister. This is a victory for the survivors who have been calling for this for years.”

Ms Badenoch added: “The prime minister’s handling of this scandal is an extraordinary failure of leadership. His judgement has once again been found wanting.

“Since he became prime minister, he and the home secretary dismissed calls for an inquiry because they did not want to cause a stir.

“They accused those of us demanding justice for the victims of this scandal as, and I quote, ‘jumping on a far right bandwagon’, a claim the prime minister’s official spokesman restated this weekend – shameful.”

The government has promised new laws to protect children and support victims so they “stop being blamed for the crimes committed against them”.

It is also launching new police operations and a new national inquiry to direct local investigations and hold institutions to account for past failures.

There will also be new ethnicity data and research “so we face up to the facts on exploitation and abuse,” the home secretary said.

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