Jeremy Hunt promises ‘permanent cuts in taxation’ before pre-election budget

Published

3 months ago

March 5, 2024

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Jeremy Hunt has promised to help families with “permanent cuts” in tax on the eve of the budget on Wednesday.

The chancellor, who is expected to announce a 2p reduction to national insurance (NI) in what could be the last major fiscal event before the next election, said “lower tax means higher growth”.

While he did not confirm what taxes he plans to slash, Sky News understands that a cut to NI is on the cards and the 5p freeze on fuel duty will be extended.

Money:
What 2p cut to national insurance means for your pay

Mr Hunt is also said to be considering:

• A new levy on vaping products

• Help for first time buyers, such as 99% mortgages

• A tax on air passenger duty for business class travel

• Cutting back plans to increase departmental spending to save money

Labour said that whatever is announced, it won’t be enough to “undo the economic vandalism of the last decade” – and the tax burden is still set to rise to a record high.

With Sir Keir Starmer’s party ahead by around 20 points in the polls, some Tory MPs want Mr Hunt to go further and cut personal income tax with an election approaching.

This is seen as a more headline-grabbing measure that benefits more voters, including pensioners.

But the chancellor is said to have decided against this after forecasts from the UK’s fiscal watchdog, the Office for Budget Responsibility (OBR), gave him less fiscal headroom than hoped.

‘Conservatives know lower tax means higher growth’

A 2p cut to income tax would cost around £14bn, whereas the 2p cut to NI will cost around £10bn.

Combined with the 2p cut to NI announced in November, the move will save 27 million workers £900 on average.

In comments released by the Treasury on Tuesday night, Mr Hunt said: “Of course, interest rates remain high as we bring down inflation.

“But because of the progress we’ve made… delivering on the prime minister’s economic priorities, we can now help families with permanent cuts in taxation.

“We do this not just to give help where it is needed in challenging times. But because Conservatives know lower tax means higher growth. And higher growth means more opportunity and more prosperity.”

Mr Hunt added that growth “cannot come from unlimited migration”, but “can only come by building a high-wage, high-skill economy”.

He also took aim at Labour, claiming a government under Sir Keir Starmer would “destroy jobs” and “risk family finances with new spending that pushes up tax”.

Politics latest:
Will another NI cut appeal to voters?

Tories ‘overseeing 14 years of economic failure’ – Labour

But shadow chancellor Rachel Reeves said Labour is “now the party of economic responsibility” as she accused the Tories of overseeing “14 years of economic failure” with the overall tax burden still rising.

She said: “The Conservatives promised to fix the nation’s roof, but instead they have smashed the windows, kicked the door in and are now burning the house down.

“Taxes are rising, prices are still going up in the shops and we have been hit by recession. Nothing the chancellor says or does can undo the economic vandalism of the Conservatives over the past decade.

“The country needs change, not another failed budget or the risk of five more years of Conservative chaos”.

How will Hunt pay for Budget 2024 giveaway?

Experts have warned that a 2p national insurance cut would not be enough to stop the tax burden rising because of previously announced freezes to personal tax thresholds.

There are also questions about whether Mr Hunt can afford to pay for the measure.

He has said he will not pay for tax cuts with borrowing, meaning a combination of spending cuts and tax rises elsewhere will be necessary.

Revenue-raisers Mr Hunt is said to be considering include reducing the scope of non-dom tax relief, which Labour has said it would scrap to fund services such as the NHS.

A new levy on vaping is on the cards, as is a tax on air passenger duty for business class travel and a tax crackdown on those who rent out second homes for holiday lets.

The chancellor is also considering cutting back plans to increase departmental spending by just 0.75% a year, instead of 2%, to raise around £5bn.

While this would create more scope for tax cuts, it would likely prove controversial given the pressure already on public services, with a spate of local councils going bankrupt in recent months.

Lib Dem leader Sir Ed Davey – who will be targeting Mr Hunt’s “Blue Wall” seat at the election – described the Conservatives as “the great tax swindlers” and said they should be prioritising the NHS.

He said: “Rishi Sunak has led the economy into a recession and forced families to pick up the tab. They have no shame.

“The Conservatives must put the NHS at the heart of the budget. It is no wonder the economy isn’t growing when millions of people are stuck on NHS waiting lists, unable to work.”

Watch Sky News’s coverage of the Budget live from 11am on Wednesday.

UK

‘I was told this was a wonder drug but not warned about the deathly consequences’: 100 faces of infected blood scandal

Published

1 hour ago

May 20, 2024

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'I was told this was a wonder drug but not warned about the deathly consequences': 100 faces of infected blood scandal

“Losing Gary, my soul mate, was beyond painful,” says Kathryn Croucher, whose husband died aged 42 in 2010.

“Every day was a struggle dealing with the knowledge he was HIV and Hepatitis C positive.”

“Mum always said she was given a death sentence,” recalls Ronan Fitzgerald. His mother, Jane, died aged 54 after being infected with Hepatitis C when she was 16. “It was a ticking time bomb.”

Updates:
Scandal was ‘not an accident’
Follow reaction to report live

More than 30,000 Britons were infected with HIV and Hepatitis C after being given contaminated blood products in the 1970s and 1980s.

Around 3,000 people have died as a result of the scandal, while many more still live under the shadow of health problems, debilitating treatments and stigma. Now, the findings of a public inquiry, first announced in 2017, will finally be published.

These are 100 faces of infected blood victims that either they, or their families, have shared with Sky News.

Click the images to read their stories.

Sky News will have full coverage of the infected blood report on TV, online and on the Sky News app today.

Sky News would like to thank everyone who contributed to this project.

UK

Julian Assange wins High Court bid to bring appeal against extradition to US

Published

1 hour ago

May 20, 2024

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Julian Assange wins High Court bid to bring appeal against extradition to US

Julian Assange will be allowed to appeal against his extradition to the United States.

Two judges responded today to US assurances that Mr Assange will not face the death penalty – and can rely on the First Amendment right to free speech if he faced a trial for spying.

The WikiLeaks founder faces prosecution in the US over an alleged conspiracy to obtain and disclose national defence information after the publication of hundreds of thousands of leaked documents relating to the Afghanistan and Iraq wars.

Edward Fitzgerald KC, representing Assange, criticised the assurances of Joe Biden’s US administration at the hearing. He said: “Based on the principle of the separation of powers, the US court can and will apply US law, whatever the executive may say or do.”

He added most of the promises were “blatantly inadequate” – but they had accepted the promise about the death penalty.

In written submissions, the barrister said while the assurance over the death penalty was “an unambiguous executive promise”, the other assurance does not give “any reliable promise as to future action”.

The barrister added: “What needs to be conclusively removed is the risk that he will be prevented from relying on the first amendment on grounds of nationality.”

But James Lewis KC, representing the US government, insisted the “judicial branch of the United States will take due notice of this solemn assurance given by its government in the course of international relations”.

In written submissions, he said there is “no question” that Assange, if extradited, “will be entitled to the full panoply of due process trial rights, including the right to raise, and seek to rely upon, the first amendment as a defence”.

He later told the court: “The assurance does make it clear that he will not be discriminated against because of his nationality.

“He can and will be able to raise all those arguments and his nationality will not prejudice a fair trial.”

Today’s decision is the latest chapter in 13 years of legal battles and detentions for Australian-born Mr Assange.

The US authorities want to put Mr Assange on trial over 18 charges, nearly all under the Espionage Act.

They claim his actions with WikiLeaks were reckless, damaged national security, and endangered the lives of agents.

During a two-day hearing in February, lawyers for Mr Assange asked for permission to challenge a judge’s dismissal of the majority of his case to prevent his extradition.

In March, Dame Victoria Sharp and Mr Justice Johnson dismissed most of Mr Assange’s legal arguments – but said unless assurances were given by the US, he would be able to bring an appeal on three grounds.

These assurances are that Assange would be protected by and allowed to rely on the First Amendment – which protects freedom of speech in the US – that he is not “prejudiced at trial” due to his nationality, and that the death penalty is not imposed.

Supporters of Mr Assange have already been gathering outside the High Court to continue their calls for his release.

Mr Assange is currently being held in London’s high security Belmarsh prison.

UK

Hunt for two suspects after man dies in Glasgow stabbing

Published

1 hour ago

May 20, 2024

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Hunt for two suspects after man dies in Glasgow stabbing

Detectives are on the hunt for two men following a fatal stabbing in Glasgow at the weekend.

Police Scotland said the force received a report of a man being attacked and stabbed in Saracen Street, Possil, at around 5pm on Saturday.

Emergency services attended and took the 27-year-old victim to the city’s Queen Elizabeth University Hospital, where he later died.

The death is being treated as “suspicious” ahead of the completion of a post-mortem examination.

Investigating officers have since established that two men were involved in the attack.

The suspects have been described as white and in their 30s.

One was wearing a light-blue top and black shorts, while the other was dressed in a white top, black shorts and black trainers.

Officers have been gathering and reviewing CCTV footage from in and around the neighbourhood as the probe continues.

Additional patrols have also been mobilised to the area, and anyone with information or concerns can approach these officers.

Detective Inspector Lesley-Ann McGee said: “It was a warm, sunny day and there were lots of people out enjoying the weather in Saracen.

“I am asking them to get in touch with us with any information that could assist us in establishing the motive for this attack. If you saw, heard or know anything please contact us.

“I’m also asking people with dashcam or doorbell recording equipment to check for any footage that could assist our investigation.

“A family is mourning the loss of a loved one and it’s imperative we are able to answer how their loved one died.”