Chancellor Rachel Reeves ‘rejects’ analysis average family set to be £1,400 a year poorer by 2030
The chancellor says she “rejects” new analysis that suggests the average family could be £1,400 a year worse off by the end of the decade.
Rachel Reeves told Sky’s Sunday Morning With Trevor Phillips programme that living standards will “increase during the course of this parliament”.
She insisted there has already been a “sustained increase” since Labour came to power last year.
The analysis, by the Joseph Rowntree Foundation (JRF), says frozen tax thresholds, rising mortgage and rent costs, and falling real earnings are all predicted to take their toll on living standards in Britain.
For the poorest third, living standards are forecast to drop twice as much compared with middle and high earners.
The charity believes the government will miss one of its stated “milestones” – to raise living standards across the UK before the next election.
It says the £1,400 drop by April 2030 means a 3% fall in disposable income for the average family, while the lowest income households will be £900 per year worse off – a 6% fall.
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Rachel Reeves admits tax rises ‘impact’ the economy
The situation could be even bleaker for some, as the analysis doesn’t account for the recently announced £5bn in cuts to disability benefits.
Average earnings are also set to fall by £700 per year by 2030, according to the JRF.
The charity – which conducts research into reducing poverty – says it came up with its prediction by modelling forecasts from the Bank of England and others.
Chancellor ‘confident we will see living standards increase’
Asked by Trevor Phillips for her response to the findings, the chancellor said she “rejects” them.
Ms Reeves argued living standards in the last parliament “were the worst ever on record”, and said the independent Office for Budget Responsibility (OBR) said in October they are expected to increase, while wages are currently rising at twice the rate of inflation.
“I’m confident that we will see living standards increase during the course of this parliament,” the chancellor insisted, adding there has been a “sustained increase” since Labour was elected.
“We’ve got to do more, absolutely, in terms of raising living standards. But this government has already got started in delivering our plan for change.”
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What to expect from the spring statement
But the JRF says the government welfare cuts are “wrong” and counterproductive and wants the plan scrapped.
It also urges a new “minimum floor” for Universal Credit to help address hardship, and believes the government should instead raise cash by increasing tax on wealth and investments.
The analysis comes three days before the chancellor’s spring statement in which more cuts are set to be announced in a bid to improve the country’s finances.
Some £2bn in cuts to the civil service are expected – but Ms Reeves says they will not affect front line services.
She has also confirmed to The Sun On Sunday that she won’t be announcing any new tax rises.
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Her speech will be in response to the OBR, which on the same day will publish its own forecasts on the economy, the cost of living and government finances.
Growth is Labour’s top priority, but the Bank of England recently halved its growth outlook for the UK economy this year to 0.75%.
There are also worries next month’s hike to employer national insurance and the minimum wage will create further drag on investment.
There is a “really concerning” rise in sexual violence among 14- and 15-year-olds that policymakers need to take “very seriously”, Home Office minister Jess Phillips has told Sky News.
Speaking to Sky News’ Politics Hub With Sophy Ridge, Ms Phillips, who holds the safeguarding and violence against women and girls (VAWG) portfolio, suggested that “generational progression” on feminism and the advancement of women does not appear to be continuing with her sons’ generation.
She said that “what our children are exposed to online absolutely is something that troubles me and troubles the government”, but argued that banning smartphones in schools is not necessarily the answer.
Politics latest: A new Labour chancellor would be ‘much worse’ than Reeves
Asked by Sky’s Sophy Ridge if she is worried about men being radicalised online in relation to how they view women, Ms Phillips replied: “If I look at the data of the growing number of sexual violence cases amongst the age group 14 and 15, as a policymaker, you have to take very seriously the growing number of cases.”
That age group are both the victims in these cases and the perpetrators.
Phillips: “We have to be providing an alternative narrative for our young people”
The minister was clear that she is “very alive to not wanting to just make all boys feel like they are the problem”.
Nonetheless, she said it is the government’s responsibility to ensure that all possible measures are in place “to look at what is happening with our teenagers and make sure that we are providing the education, and also the protection and prevention”.
‘Generational progression’ has halted
More broadly, Ms Phillips said: “If you look at the data and attitudes around things like feminism and the advancement of women, there are really concerning trends.
“And I think we always thought it would just progressively get better. And it’s no comment on either my father, my husband or my sons who are all absolutely cracking men, which is what most people would say about all of the men in their lives.
“But that generational progression was the thing we expected. But we have to look at the data and the concerns and the fears amongst… whether it’s extreme violence perpetrated by teenagers, and like I’ve already said, the sexual violence figures, and really take that on board.”
Read more on Sky News:
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What you need to know about spring statement
Ministers ‘troubled’ by what young people see online
A ban on smartphones in schools is the subject of vast debate at the moment, with shadow education secretary Laura Trott campaigning on it. Education Secretary Bridget Phillipson is reviewing the data around schools that have implemented a ban using their existing powers.
But Ms Phillips suggested that it is not the answer to the issue of sexual violence among teenagers.
She told Sophy Ridge: “I’m concerned about what our teenagers are exposed to and what they’re falling victim to. And if I thought that there was real evidence of them being in school, then absolutely. I would be campaigning for that.
“What our children are exposed to online absolutely is something that troubles me and troubles the government, and you cannot just say ‘ban it’.”
She added that “we have to be providing an alternative narrative for our young people”.
The minister pointed to the Online Safety Act as a key measure the government is taking to protect young people online, and went on to say that we need to be “making sure that our children are educated about things like misogyny, healthy relationships”.
Watch the full interview on Politics Hub With Sophy Ridge at 7pm.
Cryptocurrency-friendly trading platform eToro has filed for an initial public offering (IPO) in the United States following several previous attempts.
The company said in a March 24 announcement that it had submitted a registration statement on Form F-1 with the US Securities and Exchange Commission related to the IPO of its Class A common shares.
EToro has applied to list its Class A common shares on the Nasdaq Global Select Market under the ticker symbol “ETOR,” according to the announcement, which stated:
“A registration statement on Form F-1 relating to these securities has been filed with the SEC but has not yet become effective.”
eToro public IPO announcement. Source: eToro
The public filing comes over two months after eToro made confidential filings to the SEC in a move toward a potential IPO in New York, the Financial Times reported on Jan. 16.
Submitted in January, eToro’s IPO filing may value the business at more than $5 billion and list the platform as soon as the second quarter of 2025, the report noted, citing unidentified sources familiar with the matter.
Trading platforms such as eToro are often used by beginning investors looking to buy their first stock shares or cryptocurrency, thanks to their ease of use.
EToro’s IPO received attention from some of the world’s most notable investment banks, including Goldman Sachs, Jefferies, UBS and Citigroup, as lead managing bookmakers.
Related: Friday’s PCE inflation report may catalyze a Bitcoin April rally
EToro tried to go public in 2021 via SPAC offering
The crypto-friendly trading platform had multiple previous attempts to go public on the US stock exchange.
In 2021, eToro announced plans to go public via a merger with Fintech Acquisition Corp V, a special purpose acquisition company, valuing the company at $10.4 billion. However, the deal was terminated in mid-2022 due to unfavorable market conditions.
Related: Friday’s US inflation report may catalyze a Bitcoin April rally
Although the United Kingdom remains its largest market, eToro is pursuing a US listing to tap into a broader investor base.
“Very few of our global clients would trade UK shares,” eToro founder and CEO Yoni Assia reportedly said last year. He added:
“Something in the US market creates a pool of both deep liquidity and deep awareness for those assets that are trading in the US.”
In 2023, eToro raised $250 million in a funding round that valued the brokerage at $3.5 billion. The business may now be valued at more than $5 billion in its upcoming IPO, said one of the people familiar with the flotation plans.
According to Forbes, eToro was one of the first regulated trading platforms in Europe to offer Bitcoin (BTC) services in 2013, just a few years after the first BTC transaction was made in January 2009.
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Two strategic digital asset reserve bills in Arizona cleared Arizona’s House Rules Committee on March 24 and are now headed to the House floor for a full vote.
The bills together, if passed into law, would clear the way for Arizona to establish strategic digital assets reserves composed of existing assets confiscated through criminal proceedings in addition to newly invested public funds.
The Republicans hold a 33-27 majority in Arizona’s House of Representatives, giving both bills a decent chance of passing.
Source: Bitcoin Laws
However, according to Bitcoin Laws, the final hurdle could be the state’s Democratic governor, Katie Hobbs. Hobbs has a history of vetoing bills before the House, having blocked 22% of bills in 2024 — the highest rate of any state governor.
Arizona’s two crypto bills explained
The two bills recently approved by Arizona’s House Rules Committee are the Strategic Digital Assets Reserve Bill (SB 1373) and the Arizona Strategic Bitcoin Reserve Act (SB 1025).
The Strategic Digital Assets Reserve Bill (SB 1373) focuses on establishing a strategic digital assets reserve made up of digital assets seized through criminal proceedings to be managed by the state’s treasurer.
The treasurer would be limited to investing no more than 10% of the fund’s total value each fiscal year. However, they would also be able to loan the fund’s assets in order to increase returns, provided that doing so doesn’t increase financial risks.
The Arizona Strategic Bitcoin Reserve Act (SB 1025) specifically deals with Bitcoin (BTC). The bill proposes allowing Arizona’s Treasury and state retirement system to invest up to 10% of its available funds into Bitcoin.
Additionally, SB 1025 would also allow for the state’s Bitcoin reserve to be stored in a secure, segregated account inside a federal Bitcoin reserve, should one be established.
Related: US states lead in strategic Bitcoin reserve creation — Will Trump deliver on his BTC promise?
While Arizona is now considered to be leading the race to establish a state-based digital asset reserve, several other states are hot on its heels.
On March 6, the Texas Senate passed the Strategic Bitcoin Reserve Bill (SB-21) by a vote of 25-5. The Texan bill still needs to pass the House and get the governor’s signature to pass into law. Following this vote, a new bill was introduced by Democrat Representative Ron Reynolds to cap the size of the previously uncapped reserve to $250 million.
Utah also recently passed Bitcoin legislation, but all references to the establishment of a strategic reserve were removed at the last moment.
Meanwhile, the Oklahoma House passed its Bitcoin Reserve Bill HB1203, 77-15 on March 25. That bill will now head to the state’s senate.
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