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Chancellor Rachel Reeves will promise to “invest, invest, invest” in Labour’s first budget for 15 years.

Ms Reeves – who is set to stand up in the Commons just after 12.30pm on Wednesday – will also give a pledge that “working people won’t face higher taxes in their payslips”.

However, she will clarify that Labour’s manifesto promise to keep national insurance unchanged only applies to employee contributions – paving the way for an increase in tax for employers.

Warning of ‘biggest tax-raising budget in history’ – latest updates

Income tax and VAT look to set to remain the same, with the chancellor saying there will be “more pounds in people’s pockets”.

“My belief in Britain burns brighter than ever. And the prize on offer to today is immense,” Ms Reeves is set to say.

But by pledging only to ring fence payslips, Ms Reeves leaves the door open for increases on inheritance tax, stamp duty, capital gains tax, fuel duty, tobacco duty, alcohol duty and many other rates.

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She is also set to change the fiscal rules – the way in which the government borrows and pays back money – in order to allow for greater investment.

Ms Reeves will say the priorities of the government will be to fix the NHS, rebuild Britain and protect working people’s payslips.

The chancellor is expected to say: “More pounds in people’s pockets. An NHS that is there when you need it. An economy that is growing, creating wealth and opportunity for all. Because that is the only way to improve living standards.

“And the only way to drive economic growth is to invest, invest, invest. There are no shortcuts. To deliver that investment, we must restore economic stability.”

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What to expect from the budget

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Since winning the election, Labour has repeatedly said it was left in a poor financial situation by the Conservatives.

This included publicising what they argue is a £22bn “black hole” in the public finances.

Sky News was previously told that Ms Reeves will be looking to find £40bn in the budget – although it is not clear over what time period that may be.

Jeremy Hunt, who was the Conservative chancellor before the general election, has rejected the figure.

The Tories have been pointing to the pay rises given to various sectors like doctors, nurses and train drivers by Labour as reasons for the poor financial situation.

The chancellor will say Labour is going to channel the 1945, 1964 and 1997 governments in how they plan to revitalise the UK.

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Ms Reeves is set to tell the Commons: “This is not the first time that it has fallen to the Labour Party to rebuild Britain.

“In 1945, it was the Labour Party that rebuilt our country out of the rubble of the Second World War.

“In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology.

“And in 1997, it was the Labour Party that rebuilt our schools and hospitals.

“Today, it falls to this Labour Party, this Labour government, to rebuild Britain once again.”

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Conservative Senedd member Laura Anne Jones announces defection to Reform UK

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Conservative Senedd member Laura Anne Jones announces defection to Reform UK

Conservative Senedd member Laura Anne Jones has joined Reform UK, the party has announced.

The announcement of the party’s first member of the Senedd was made on Tuesday at the Royal Welsh Show in Builth Wells, Powys.

The annual event is Europe’s largest agricultural show and attracts thousands of visitors every year.

Laura Anne Jones was initially a member of the Senedd for the South Wales East region between 2003 and 2007, before returning in 2020.

She is the second high-profile defection from the Conservative party, after former cabinet minister David Jones joined the party earlier this month.

Reform press conference
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(L-R) Nigel Farage, David Jones and Laura Anne Jones at the news conference

Reform leader Nigel Farage said the latest defection was a “big step forward for Reform UK in Wales”.

Speaking at the news conference, Ms Jones said she had been a member of the Conservative party for for 31 years but that the party was now “unrecognisable to [her]”.

She said the Conservative Party “wasn’t the party that [she] joined over three decades ago” and that she could “no longer justify” party policy on the doorstep.

Ms Jones said Wales was “a complete mess” and that she now wanted to be “part of the solution not the problem”.

Reform is still without a leader in Wales, but Ms Jones did not rule herself out of the running for that position.

The defection comes with less than a year to go until the Senedd election, when voters in Wales will elect 96 members to the Welsh parliament for the first time – an increase of more than 50%.

Recent opinion polls have shown Reform UK and Plaid Cymru vying for pole position, with Labour in third and the Conservatives in fourth.

Ms Jones said she had not notified the Conservative Party of her defection before the announcement.

The party’s Senedd leader Darren Millar said he was “disappointed” with the announcement and that Conservative members and voters would feel “very let down by her announcement”.

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Republicans propose 7% leaner SEC budget compared to Biden’s era

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Republicans propose 7% leaner SEC budget compared to Biden’s era

Republicans propose 7% leaner SEC budget compared to Biden’s era

House Republicans have proposed a plan to trim the SEC’s budget and cut enforcement funding for a Biden-era rule requiring public companies to quickly report cyberattacks.

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Pressure grows to leave ‘mad’ Aarhus Convention used to block UK building projects

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Pressure grows to leave 'mad' Aarhus Convention used to block UK building projects

Pressure is growing to renegotiate or leave an international convention blamed for slowing building projects and increasing costs after a judge warned campaigners they are in danger of “the misuse of judicial review”.

Under the Aarhus Convention, campaigners who challenge projects on environmental grounds but then lose in court against housing and big infrastructure have their costs above £10,000 capped and the rest met by the taxpayer.

Government figures say this situation is “mad” but ministers have not acted, despite promising to do so for months.

The Tories are today leading the call for change with a demand to reform or leave the convention.

In March, Sky News revealed how a computer scientist from Norfolk had challenged a carbon capture and storage project attached to a gas-fired power station on multiple occasions.

Andrew Boswell took his challenge all the way the appeal court, causing delays of months at a cost of over £100m to the developers.

In May, the verdict handed down by the Court of Appeal was scathing about Dr Boswell’s case.

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“Dr Boswell’s approach is, we think, a classic example of the misuse of judicial review in order to continue a campaign against a development… once a party has lost the argument on the planning merits,” wrote the judges.

They added: “Such an approach is inimical to the scheme enacted by parliament for the taking of decisions in the public interest,” adding his case “betrays a serious misunderstanding of the decision of the Supreme Court” and “the appeal must therefore be rejected”.

Another case – against a housing development in a series of fields in Cranbrook, Kent – was thrown out by judges in recent weeks.

The case was brought by CPRE Kent, the countryside challenge, to preserve a set of fields between two housing developments alongside an area of outstanding natural beauty.

John Wotton, from CPRE Kent, suggested it would have been hard to bring the challenge without the costs being capped.

“We would’ve had to think very carefully about whether we could impose that financial risk on the charity,” he told Sky News.

After his case was dismissed, Berkeley Homes said the situation was “clearly absurd and highlights how incredibly slow and uncertain our regulatory system has become”.

They added: “We welcome the government’s commitment to tackle the blockages which stop businesses from investing and frustrate the delivery of much needed homes, jobs and growth.

“We need to make the current system work properly so that homes can actually get built instead of being tied-up in bureaucracy by any individual or organisation who wants to stop them against the will of the government.”

‘Reform could breach international law’

Around 80 cases a year are brought under the Aarhus Convention, Sky News has learned.

The way Britain interprets Aarhus is unique as a result of the UK’s distinctive legal system and the loser pays principle.

Barrister Nick Grant, a planning and environment expert who has represented government and campaigns, said the convention means more legally adventurous claims.

“What you might end up doing is bringing a claim on more adventurous grounds, additional grounds, running points – feeling comfortable running points – that you might not have otherwise run.

“So it’s both people bringing claims, but also how they bring the claims, and what points they run. This cap facilitates it basically.”

However, Mr Grant said that it would be difficult to reform: “Fundamentally, the convention is doing what it was designed to do, which is to facilitate access to justice.

“And it then becomes a question for the policymakers as to what effect is this having and do we want to maintain that? It will be difficult for us to reform it internally without being in breach of our international law obligations”

In March, Sky News was told Number 10 is actively looking at the convention.

Multiple figures in government have said the situation with Britain’s participation in the Aarhus Convention is “mad” but Sky News understands nothing of significance is coming on this subject.

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Jenrick's leaked recording on 'coalition' with Reform UK
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‘The country faces a choice,’ says Robert Jenrick

The Tories, however, want action.

Robert Jenrick, shadow justice secretary and former housing minister, said the Tories would reform or leave the convention.

He told Sky News: “I think the country faces a choice. Do we want to get the economy firing on all cylinders or not?

“We’ve got to reform the planning system and we’ve got to ensure that judicial review… is not used to gum up the system and this convention is clearly one of the issues that has to be addressed.

“We either reform it, if that’s possible. I’m very sceptical because accords like this are very challenging and it takes many many years to reform them.

“If that isn’t possible, then we absolutely should think about leaving because what we’ve got to do is put the interest of the British public first.”

Mr Jenrick also attacked the lawyers who work on Aarhus cases on behalf of clients.

“A cottage industry has grown. In fact, it’s bigger than a cottage industry,” he said.

“There are activist lawyers with campaign groups who are now, frankly, profiteering from this convention. And it is costing the British taxpayer a vast amount of money. These lawyers are getting richer. The country is getting poorer.”

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