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.
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.
Temperatures are expected to plunge to minus 8C as weather warnings for snow and ice are set to remain in place over the weekend.
The UK Health Security Agency (UKHSA) has issued cold weather health alerts for all of England ahead of a week of low temperatures.
Amber alerts were issued from 12pm on Thursday until next Wednesday, meaning a rise in deaths is likely, particularly among those aged 65 and over or with health conditions.
Temperatures of between minus 4C and 5C were expected in parts of Wales and southern England on Thursday night, plunging to minus 8C in northern England and Scotland.
Dan Stroud, a meteorologist at the Met Office, said: “There’ll be widespread frost across the country from Land’s End to John O’Groats.
“It will be comfortably below where we should be for this time of year and I would expect temperatures to hit minus 8C in parts of Scotland.”
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Mr Stroud confirmed conditions should become warmer by the end of this weekend before cold weather strikes again early next week.
He said: “The second half of the weekend should be in the high singles or low doubles.
“But temperatures will dive again next week, particularly on Monday and Tuesday.
“They should start to improve towards the latter end of the week. But there’s a lot of water to go under the bridge until then.”
The NHS Black Country integrated care board has warned the public to “avoid going out early when the frost is thick or late at night when it’s dark”, adding people should keep their hands free and wear shoes with a good grip.
In Herefordshire, the Wye Valley NHS Trust told people to “have sufficient food and medicine and take measures to reduce draughts in your home”.
London councils activated an emergency accommodation protocol on Thursday for people sleeping rough in freezing conditions.
The emergency measures, which see extra beds made available, have been active for three nights so far this winter.
Meanwhile, several weather warnings have been issued by the Met Office ahead of a blast of snow over the weekend.
The yellow warning indicates there could be icy surfaces in northern and western Scotland, the northwest of England and Northern Ireland.
It will remain in place until 10am on Friday morning, and could make for difficult travelling conditions, the forecaster warned.
A snow and ice warning is also in place covering parts of northern Scotland until 10am on Friday.
A yellow warning for snow and ice is in place from noon on Saturday until late on Sunday night and covers all regions of England, other than the South West, Wales and parts of southern Scotland.
About 5cm of snow is expected widely across the Midlands, Wales and northern England, with as much as 20cm to 30cm over high ground in Wales and the Pennines, the Met Office said.
Strong winds could lead to snow drifts in some areas, and freezing rain as temperatures creep up could add to the risk of ice.
A separate warning for snow is in place for most of Scotland from midnight on Sunday until 12pm on Monday.
The cold snap comes as a major incident was declared in Greater Manchester by police on Wednesday after flooding forced homes to be evacuated and closed train lines and roads following heavy rain.
Urfan Sharif, who was jailed last month for the murder of his 10-year-old daughter Sara Sharif, has been attacked in Belmarsh Prison.
He is understood to have suffered slashes to his face and body, requiring stitches.
He received local care inside prison.
A Prison Service spokesperson told Sky News: “Police are investigating an assault on a prisoner at HMP Belmarsh on 1 January.
“It would be inappropriate to comment further while they investigate.”
A spokesman for the Metropolitan Police said officers are probing “an allegation that a prisoner was assaulted at Belmarsh”, adding that “the 43-year-old suffered non life-threatening injuries”.
Sharif and Sara‘s stepmother, Beinash Batool, were jailed for life in December for years of horrific “torture” and “despicable” abuse that culminated in the 10-year-old’s murder.
The court heard that she suffered “unimaginable pain, misery and anxiety” as she was repeatedly beaten, burned, bitten and restrained at the family home in Woking, Surrey.
Sharif was handed a minimum term of 40 years and Batool was given 33 years.
Sara’s uncle, Faisal Malik, 29, who was found guilty of causing or allowing her death, was jailed for 16 years.
In a televised sentencing at the Old Bailey, Mr Justice Cavanagh said Sara’s death “was the culmination of years of neglect, frequent assaults and what can only be described as torture”, mainly at the hands of Sharif.
The senior judge said her “despicable treatment” took place in “plain sight and in front of the rest of the family”.
He told Sharif: “You treated her in such a way because you considered it your right to impose harsh discipline on her.
“Sara was a brave, feisty and spirited child. She was not submissive as you wanted her to be. She stood up to you.”
Luke Littler has beaten Stephen Bunting to book his place in the final of the World Darts Championship.
The 17-year-old was favourite to progress into the final for a second year running and swept 39-year-old Bunting aside to win by 6 sets to 1 at Alexandra Palace in London.
He will face three-time champion Michael van Gerwen for the title on Friday night. A win for Littler would make him the youngest world champion in the sport.
Speaking to Sky Sports Darts after the semi-final win, Littler said it has “been an amazing tournament so far”.
“People would say I was looking at the title throughout the tournament.
“After the first game against Ryan Meikle, I have just beat what was in front of me.”
Littler averaged 105.48 with 13 180s and 44% on his doubles in the semi-final.
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He also took out three ton-plus finishes, including a ‘big fish’ 170.
The teenage sensation admitted he has “played a lot better” since reaching last year’s World Championship final.
“I’ve won plenty of titles leading up to this. That’s what we do.
“There are majors all year around and I can’t wait for tomorrow night.”
Earlier on Thursday evening, van Gerwen booked a place in his seventh World final with a win over Chris Dobey.
Littler, known as The Nuke, also told Sky Sports that if both he and van Gerwen “turn up like we did tonight, it will be really good”.
“We all know he’s hunting for a fourth world title. I’m hunting for my first.”
He added that after his semi-final win, he’ll do the “same as last night, go home, chill out and come back tomorrow”.
Friday night’s final at Alexandra Palace sees the two biggest names in the sport go head-to-head for the Sid Waddell Trophy. Van Gerwen, from the Netherlands, last won the title in 2019.
This year’s winner will collect a £500,000 prize with the runner-up getting £250,000.
Many have tipped Littler to go all the way after top seed Luke Humphries unexpectedly went out earlier in the tournament. The teenager lost on debut to Humphries in last year’s final.
Littler has been crowned Premier League champion and won the Grand Slam of Darts since then.
His Grand Slam victory made him just the fourth player ever to win 10 trophies in a season.