Reeves promised to be the iron chancellor – but her first budget brings dramatic change
The 2024 Autumn Budget in one word? Big.
What we got from Rachel Reeves today was, in economic terms, a major departure from economic policy as we’ve known it in this country for the past decade-and-a-half.
We got the single biggest increase in taxes in any fiscal event since 1993. The tax burden itself is now heading up to the highest level in history. We got a significant departure from the policies and promises laid out in the Labour manifesto.
Only a few months ago, Labour pledged not to make dramatic changes to Britain’s economic policy – no significant tax rises, no dramatic changes to public spending. But today the chancellor delivered significant changes.
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The old fiscal rules are out and now this government plans to borrow many billions of pounds more. It plans to increase investment considerably.
It plans to raise taxes on those with investments, on those with assets who could previously pass them on to their children (including business owners and farmers). In the meantime, it plans to spend considerably more on the health service and on public investment than previously slated.
It’s worth saying: while the government inherited the public finances in a worse condition than they looked before the election, even the Treasury’s “black hole” of £22bn cannot explain the dramatic change in economic policy here.
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Reeves refuses to rule out future tax hikes
It does not explain the dramatic increase in borrowing, spending and taxes – these are policy decisions by the current government. And, many would say, quite right too. Surveys suggest the British public support higher taxes, especially if they are used to improve the National Health Service.
Many think the UK should be spending more on its public services, even if that means we all have to contribute more (though they are generally less enthusiastic if asked whether they would be happy to pay higher taxes themselves). And there is little dispute that this country’s investment levels have been too low for too long and could afford to be higher.
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However, that wasn’t the pitch Reeves and Keir Starmer made at the election. They promised, in their manifesto, only slight economic changes and only small increases in taxes. They promised to spend much of their time in office cleaning up the mess from the last government. Reeves promised to be the iron chancellor of fiscal discipline.
But this budget is considerably less disciplined with the public finances than expected. But what will worry the chancellor is that despite this extra largesse with both investment and current spending, the UK economy is not going gangbusters as a result.
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The Office for Budget Responsibility actually cut its forecasts for long term growth. That promise made by Starmer to achieve the highest economic growth in the G7 looks highly unlikely – even after the implementation of all these policies.
And in the hours after the speech, markets reacted in a way that will cause nerves in the Treasury. It’s nothing like the lurches in government debt yields we saw after Liz Truss’s mini budget in 2022. But the pound fell and the interest rates investors charge the UK government rose. That’s not something any chancellor would like to see after their first budget.
The next few days promise to be very interesting both in politics and in markets.
UK
UK sanctions Russian military officer accused of Salisbury novichok poisoning in crackdown on Kremlin
The UK has sanctioned a Russian military officer accused of helping poison former double agent Sergei Skripal with novichok in Salisbury.
The Foreign Office has imposed 56 new sanctions on people and entities linked to Russia, including those in the Wagner mercenary group that operates unofficially on Vladimir Putin’s behalf, and companies based in China, Turkey and central Asia supplying parts to Russia.
Denis Sergeev, who the Met Police charged over the attempted murder of double agent Mr Skripal, has been sanctioned under the chemical weapons sanctions regime.
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“Sergeev provided support in the preparation and use of the chemical weapon novichok in Salisbury…and provided a coordinating role in London on the weekend of the attack,” the Foreign Office said.
Sergei Skripal and Yulia Skripal were poisoned with novichok. Pic: Shutterstock
Mr Skripal and his daughter Yulia were found unconscious on a bench in Salisbury, Wiltshire, in March 2018.
Police said nerve agent novichok was applied to the front door of his home.
Three Russians, who police said are GRU military intelligence officers, have been charged in absentia over the incident.
Sergeev was the last to be charged after police said he was acting under the alias Sergey Fedotov.
Dawn Sturgess died after picking up a sample perfume bottle with novichok in
A public inquiry into the death of Dawn Sturgess, a woman unwittingly killed after coming across a sample perfume bottle containing novichok, heard Mr Skripal believed Mr Putin had ordered the attack on him.
Moscow has repeatedly rejected British accusations the Kremlin was involved.
The inquiry heard the amount of novichok in the perfume bottle was enough to kill thousands of people.
Also included in the latest sanctions round are companies supplying Russia with military equipment being used in its war against Ukraine.
Ten companies based in China, and a handful from Turkey, Estonia, Kazakhstan and Uzbekistan, are on the list for supplying and producing machine tools, microelectronics and components for drones used by Russia in Ukraine.
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Russian-based mercenary groups operating in sub-Saharan Africa with links to the Kremlin are also on the list.
The Foreign Office said they have threatened peace and security in Libya, Mali and the Central African Republic, and have committed widespread human rights abuses across Africa.
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Foreign Secretary David Lammy said: “Today’s measures will continue to push back on the Kremlin’s corrosive foreign policy, undermining Russia’s attempts to foster instability across Africa and disrupting the supply of vital equipment for Putin’s war machine.
“And smashing the illicit international networks that Russia has worked so hard to forge.
“Putin is nearly 1,000 days into a war he thought would only take a few. He will fail and I will continue to bear down on the Kremlin and support the Ukrainian people in their fight for freedom.”
Police have made a direct appeal to those involved in the murder of a teenager to finally bring her family closure, exactly 30 years after she disappeared.
Lindsay Rimer, 13, went out to buy a box of Corn Flakes late in the evening on 7 November 1994 and never returned home. Her body was found in a canal close to her home six months later.
Lindsay’s family have also marked this year’s anniversary with a renewed appeal for information from the public, particularly in the town of Hebden Bridge in West Yorkshire where Lindsay lived and died.
“This person should be in prison, not us because that’s where we feel we’ve been for the last 30 years,” her sister Kate Rimer told Sky News.
Juliet Rimer was just one when her sister was killed but has recently been reading letters and diaries to gain a better understanding of a life cut short.
“It’s just, it’s a bit of a horror film that we have to do this,” she said. “The fact that I had a sister that I never knew who was murdered, I just can’t wrap my head around that. It’s had a massive impact on me.”
Lindsay months before her death
Kate, who played the part of her sister in a police reconstruction a year after her disappearance, says the family believes someone has information that could lead to her killer’s arrest.
“It’s usually been my mum who does this but the emotional toll it’s taken on my parents means that they just can’t do this anymore.
“It’s incredibly emotional, it opens everything up, and it reflects back over 30 years ago and everything that we lived through then. And just the horror of a loved family member, a child being murdered, is a really bizarre situation. You live your normal life around that and then we’re opening up again to bring murder and death back into our family.”
In the years since Lindsay’s disappearance, police have spoken to more than 5,000 people and examined 1,200 vehicles. Two men were arrested and later released.
A new sighting of Lindsay after she left the convenience shop on the night she disappeared has been confirmed and police believe those in the community have vital information.
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Juliet, left, and Kate Rimer speak to Sky News this month
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Detective Chief Inspector James Entwistle of West Yorkshire Police made a direct appeal to those who were involved in killing and disposing of her body.
“Has this been on your conscience for thirty years?” he said.
“It’s perfectly possible there’s more than one person involved, its perfectly possible there’s a vehicle involved. Maybe you didn’t murder Lindsay but you know exactly who did because you were there and that’s sat on your conscience for 30 years.
“Now is the time to come and talk to us, now is the time to draw a line under this and bring that closure for Lindsay’s family.”
New posters featuring Lindsay’s picture have gone up around Hebden Bridge as part of the appeal for information and an increased police presence will be in the town.
Juliet said: “It has been 30 years but Lindsey didn’t deserve this and we owe it to her as her family to keep doing this.”
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