Connect with us

Published

on

Briefings and speculation are rife over what will be included in the chancellor’s budget on Wednesday, particularly the scale of tax rises.

The biggest expected revenue raiser, set to generate as much as £20bn for public services, is a hike in employers’ national insurance.

Government sources have given strong indications of the chancellor’s thinking, prompting questions about whether this breaks Labour’s manifesto commitment not to hike the three main taxes – income tax, national insurance and VAT for “working people”.

Hikes in capital gains tax and inheritance tax have been touted as ways the Labour government could find money to balance the books and fix public services.

The budget’s contents will be only be official when Rachel Reeves sets it out on Wednesday, but these are some measures Sky News expects – and doesn’t expect – to be included.

No rises to income tax, national insurance or VAT

Labour ruled out increasing income tax, national insurance and VAT in its manifesto before getting elected, promising to protect “working people” – though who they define as a “working person” has come into question of late.

More on Budget

The chancellor is also expected to prolong the freeze on income tax thresholds by two years to 2030 after the previous Conservative government froze them until 2028.

The Budget - a special programme on Sky News

Employers’ national insurance hike expected

The amount employers pay in national insurance is set to rise by up to two percentage points, and the money will – in part – be used to help inject £10bn into cutting NHS waiting lists.

A government source told Sky News: “There is a universal consensus that the NHS needs more money.

“That means asking businesses to help out.

“The choice is investment versus decline. She [Rachel Reeves] is choosing not to ask working people to pay the price for their [Conservatives’] failures.”

Housing

The government has confirmed that a large boost in affordable housing will be in the upcoming budget.

It says there will be £500m in new funding to help build up to 5,000 social homes and bring total investment in housing supply to £5bn as part of the government’s Affordable Homes Programme.

£1.4bn for crumbling schools

The chancellor has promised her budget will include £1.4bn to rebuild crumbling schools.

She said children “should not suffer” due to the UK’s depleted public purse, while economists said the funding would generally ensure existing plans keep going, rather than pay for many new initiatives. Teachers said much more cash was needed.

The Treasury said the £1.4bn would “ensure the delivery” of the school rebuilding programme, which was announced in 2020 under then prime minister Boris Johnson.

Funding for nurseries, breakfast clubs and childcare

The Treasury has also confirmed £1.8bn would be allocated for the expansion of government-funded childcare, with a further £15m of capital funding for school-based nurseries.

The Treasury said the first stage of the plan would pay for 300 new or expanded nurseries across England.

Ms Reeves also said she would “triple” investment in free breakfast clubs to £30m in 2025-26, after she announced at Labour’s party conference in September a £7m trial across up to 750 schools starting in April.

VAT exemption for private schools to be scrapped

Labour have long made clear their plans to scrap the VAT exemption and business rates relief for private schools in a bid to fund 6,500 new teachers in state schools.

Details of the government’s assessment of the expected impacts of these policy changes will be published when the budget comes out on 30 October.

This is only two months before the policy is due to come into effect on 1 January 2025, and will likely include details of whether schools will be forced to increase their fees.

It is now expected that military families, a number of whom send their children to private boarding schools because they could be posted abroad at short notice, will be exempt from paying increased fees.

Changes to the £2 bus fare cap

Bus fares have been capped at £2 on more than 4,600 routes in England since 1 January 2023.

Hundreds of operators outside of London have been part of the scheme, which has cost around £500m.

Introducing the scheme in 2023, former transport secretary Mark Harper said it was aimed at helping passengers afford bus travel for both their sakes and the sake of the environment.

But the scheme, which is currently meant to run until at least 31 December, is set to be changed as it is reportedly not generating economic benefit. It is unclear if the cap will be raised or removed entirely.

Read more:
As budget nears, faith in government ‘on a knife edge’

Reeves has left herself with very few political levers to pull for cash
Starmer denies waging ‘war against middle Britain’ with budget

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Billions to be allocated to NHS

The government will be putting aside up to £10bn for the NHS, largely to help it tackle ballooning waiting lists after COVID, currently at a record high of 7.6 million, and to deliver on their promise of another 40,000 hospital appointments per week.

Health Secretary Wes Streeting last week said he has agreed on a plan for NHS funding with the chancellor – but noted the funds won’t actually be available until six months’ time.

“Investment in the budget, that comes in the new fiscal year in April, so that’s spring,” he said.

Labour are facing “difficult and big choices”, Mr Streeting warned, as he said the government “can’t fix 14 years in one budget”.

Carer’s Allowance expansion

Ms Reeves is expected to raise the limit people can earn before being ineligible for the Carers Allowance from £151 a week to £181.

It would mean tens of thousands of carers who aren’t currently eligible would get an extra £81.90 a week under the scheme.

The budget is set to take place at 12.30pm on Wednesday 30 October.

Continue Reading

UK

Post Office scandal: At least 8 convictions may be linked to second IT system used by Post Office

Published

on

By

Post Office scandal: At least 8 convictions may be linked to second IT system used by Post Office

At least eight convictions predating the Horizon Post Office scandal are being looked at by the body investigating potential miscarriages of justice, Sky News has learned.

The Criminal Cases Review Commission (CCRC) has confirmed it is examining multiple cases of former sub-postmasters affected by Capture software.

The computer accounting system was used in the early 1990s, prior to Horizon being introduced to Post Office branches from 1999 onwards.

Horizon was at the centre of the Post Office scandal and saw hundreds of sub-postmasters wrongly convicted of stealing from their branches.

The Kroll report, commissioned by the government earlier this year, found that Capture had bugs and glitches and there was a reasonable likelihood it had caused cash shortfalls too.

Lord Beamish, the former Labour MP Kevan Jones, has been supporting victims and is calling for the government to extend current legislation to automatically quash convictions.

The Post Office (Horizon System) Offences Act was passed in May but does not include Capture victims.

More on Post Office Scandal

Lord Beamish told Sky News he has raised the issue with the Justice Secretary and called for a House of Lords debate.

“The government are going to have to take this seriously,” he said. “We can’t have a situation where we have a two-tier system where people get exonerated from Horizon and the Capture cases are either forgotten or have to go through a very lengthy legal process to get their names cleared.”

Chris Roberts whose mother Liz Roberts who was convicted in 1999 of stealing £46,000 from the Post Office and spent 13 months behind bars. Her conviction relates to the use of Post Office Capture software (precursor to Horizon) which is being investigated in connection with potential miscarriages of justice
Image:
Chris claims his mother was wrongly jailed because of accounting problems with the Post Office software Capture

He added he had “little faith” in the CCRC’s “ability to deal with cases”, after multiple Horizon cases were referred to the body years ago.

“The problem with these cases is the lack of evidence… that has been destroyed or lost so actually proving some of these cases through that process will be very difficult.

“Therefore I think a blanket exoneration like we had with Horizon I think has got to be discussed and considered for these cases.”

The CCRC told Sky News it has five cases under review “in which the Capture IT system could be a factor”.

It also said it is “seeking further information” on eight cases referenced in the Kroll report.

Read more:
Woman who died after conviction may have suffered miscarriage of justice
Former postmaster says compensation offer is ‘insulting’
Post Office chairman ousted amid row with government

The CCRC added that the time taken for a case review to be completed was dependent on the “complexity” of each case “and how readily available information about it is”. In a statement, it admitted: “The availability of information can be a particular hurdle in older cases.”

Chris Roberts and his mother Liz Roberts who was convicted in 1999 of stealing £46,000 from the Post Office and spent 13 months behind bars. Liz was in the advanced stages of Alzheimer’s disease and died in 2024. Her conviction relates to the use of Post Office Capture software (precursor to Horizon) which is being investigated in connection with potential miscarriages of justice
Image:
Chris’s mother died earlier this year following a battle with Alzheimer’s and never got to clear her name

Chris Roberts’ mother, Liz Roberts, was convicted in 1999 of stealing £46,000 from the Post Office and spent 13 months behind bars.

Liz, who was in the advanced stages of Alzheimer’s disease, passed away earlier this year.

Chris said she was jailed four days before he turned 17, and he used to have “nightmares” that she was “going to die in there”.

“There was no evidence of any financial gain because they went through everything. And obviously the money wasn’t in our accounts because it didn’t exist,” he added.

Despite being offered “three deals” by the Post Office to plead guilty, Liz refused and was sent to prison.

Liz Roberts who was convicted in 1999 of stealing £46,000 from the Post Office and spent 13 months behind bars. Liz was in the advanced stages of Alzheimer’s disease and died in 2024. Her conviction relates to the use of Post Office Capture software (precursor to Horizon) which is being investigated in connection with potential miscarriages of justice
Image:
Liz Roberts during happier times before she was jailed for theft – her son insists she was innocent

Chris believes that the 2019 High Court win by Horizon victims was a missed opportunity for the Post Office to look back at Capture cases.

“It would have been worth something then because my mum would have died knowing that everybody else knew she was innocent,” he said.

“My dad would have died knowing that the love of his life wasn’t vilified as a criminal.”

Chris wants his mother exonerated and “those actively responsible” to “stand up in court… and justify themselves”.

Please use Chrome browser for a more accessible video player

Sky’s Adele Robinson examines Britain’s biggest miscarriages of justice

A Department for Business and Trade spokesperson said: “We were horrified to learn about the issues with the Capture system and are working closely across government to thoroughly examine Kroll’s independent report and consider what action should be taken.

“We continue to listen to postmasters and others who have been sharing their views on the report’s findings since its publication last month.”

Continue Reading

UK

Hooligans face two years in jail as ‘respect orders’ target anti-social behaviour

Published

on

By

Hooligans face two years in jail as 'respect orders' target anti-social behaviour

Hooligans face two years in jail for breaching newly unveiled “respect orders” designed to crack down on anti-social behaviour.

Courts could also hand out unlimited fines, order unpaid work or impose a curfew on those who break the rules.

The measures – set out in Labour’s election manifesto as part of a bid to “return law and order to our streets” – aim to nip the worst behaviour in the bud, the Home Office said.

Too many neighbourhoods are “plagued by anti-social behaviour”, Home Secretary Yvette Cooper said, which “can have a devastating impact on victims”.

“This cannot be allowed to continue,” she added.

If the plans – part of a Crime and Policing Bill – pass, councils and police will have the power to ban persistent offenders from town centres, with officers free to arrest anyone breaching their order.

To address the root causes of their behaviour, perpetrators could also be told to attend anger management classes or receive drug and alcohol treatment.

Officers would not need to give a warning before seizing vehicles, a move the Home Office said will help police tackle the “scourge” of off-road bikes in parks and e-scooters on pavements.

The measures will be trialled if the bill passes, before the rules are enforced across England and Wales.

Read more from Sky News:
The bizarre story of a fake carer
King’s coronation cost revealed

Harvinder Saimbhi, chief executive of victim support charity ASB Help, said the group welcomes “the approach of addressing the root causes of the anti-social behaviour”.

“We are keen to see how the respect orders will be implemented,” he added.

In the year to September 2023, about a million anti-social behaviour incidents were reported to police.

Deputy Chief Constable Andy Prophet, who leads the National Police Chiefs’ Council’s work on anti-social behaviour, said respect orders will “give the police and councils the ability to crack down on those who persistently make our streets and public spaces feel unsafe”.

Continue Reading

UK

King’s coronation cost to taxpayer revealed in new report

Published

on

By

King's coronation cost to taxpayer revealed in new report

Official accounts have revealed for the first time how much the King’s 2023 coronation cost UK taxpayers.

According to the accounts, the government spent £72m on the coronation – the first in Britain since Queen Elizabeth II’s in 1953.

The figure includes £50.3m of costs attributed to the Department for Culture, Media and Sport (DCMS), which coordinated the coronation, and £21.7m in costs for the Home Office for the policing of the event.

By comparison, Queen Elizabeth II’s funeral and events during the period of national mourning cost the government an estimated £162m – £74m for the Home Office and £57m for the DCMS as well as costs to the devolved governments.

The figures come from the culture department’s recently released annual report and accounts.

The department said it had “successfully delivered on the central weekend of His Majesty King Charles III’s Coronation, enjoyed by many millions both in the UK and across the globe”.

People walk past a souvenir shop following Britain's King Charles' coronation, in Windsor, Britain, May 8, 2023. REUTERS/Hannah McKay
Image:
People walk past a souvenir shop during the coronation. Pic: Reuters

It described the event as a “once-in-a-generation moment” which provided an occasion for the “entire country to come together in celebration”.

Both the King and Queen were crowned at Westminster Abbey in May last year, in a ceremony attended by dignitaries from around the world.

A star-studded concert at Windsor Castle, featuring Take That and stars such as Olly Murs, Katy Perry and Lionel Richie, took place the following night.

It had been described ahead of the event as being a “slimmed-down affair” – with the country still in the grips of the cost-of-living crisis – and accounts show an “underspend” related to the coronation of around £2.8m.

Olly Murs performing at the Coronation Concert held in the grounds of Windsor Castle, Berkshire, to celebrate the coronation of King Charles III and Queen Camilla. Picture date: Sunday May 7, 2023. Yui Mok/Pool via REUTERS
Image:
Olly Murs performing at the Coronation Concert. Pic: Reuters

Did coronation boost the economy?

Despite talk of a coronation boost, the UK’s economy actually contracted in the month of May 2023.

However, experts said that was mostly due to the cost of the additional public holiday for the event, which weighed on output.

Read more from Sky News:
British tourist dies in Laos
Storm Bert to bring snow to UK

Each bank holiday costs the UK economy around £2.3bn, with the extra bank holiday for the late Queen’s funeral estimated to have cost around £2.4bn, according to government figures.

With the extra coronation bank holiday, data from the Office for National Statistics (ONS) showed negative growth of 0.1% during May 2023.

However, that was slightly better than economists had predicted ahead of the event.

Prior to the event, economic forecasters, the Centre for Economics and Business Research (CEBR), had predicted a boost of £337m for the UK’s economy due to the coronation – including £104m in extra pub spending and an estimated £223m spend from tourism to the UK during the period.

Hotel revenue was also said to be up by 54% compared to the same point in the previous year, while bookings for UK-bound flights for the coronation weekend jumped by 149% within 24 hours of the day being announced, according to TravelPort.

Continue Reading

Trending