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Rachel Reeves has defended raising taxes by the highest amount since 1993 as she said “everything has to be paid for”.

The chancellor announced £40bn worth of tax rises in Wednesday’s budget, with the lion’s share coming from a £25bn increase in employers’ National Insurance contributions.

She told Sky News’ Breakfast With Kay Burley that, unlike the previous Conservative government, she has included everything ministers will spend in their forecast, including £11.8bn compensation for victims of the infected blood scandal and £1.8bn for victims of the Post Office accounting scandal.

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Ms Reeves insisted the tax rises would “fix the foundations and wipe the slate clean” and that this would be a one-off budget.

She added: “As a result of what we’ve done, we’re not going to have to come back and ever do a budget like this again, because we’ve brought everything out into the open.”

The chancellor also admitted growth “is largely unchanged” in the next five years, as revealed by the Office for Budget Responsibility’s (OBR) report on the budget.

But she said that is because she is looking at the economy in the long-term.

She said: “For the first time, the OBR are now looking at economic growth over a longer time frame.

“And that’s really important because often politicians make short-term decisions rather than things that are in the long term interests of the country.”

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‘Raising taxes was not an easy decision’

Ms Reeves said she had to make the tax rises she did, despite promising not to raise taxes beyond Labour’s manifesto, because of “the circumstances that I inherited” from the Conservatives as she repeated they left a £22bn black hole.

“I could have swept that under the carpet and pretended it didn’t exist, or try and raise a bit of money this year and a bit more next year,” she said.

“I didn’t want to do that.

“I wanted to be open and honest, to wipe the slate clean, to put our public finances on a stable trajectory, to make sure that our NHS is properly funded so we can bring down those huge waiting lists.”

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UK’s economic growth forecast

Ms Reeves’ predecessor, the Conservative Party’s Jeremy Hunt, said Wednesday was a “bad day for trust in British politics” and said it will mean “lower pay, lower living standards, higher inflation, higher mortgages” for ordinary families.

He told Sky News: “Because 30 times this year before the election, the chancellor said she had no plans to increase tax outside of what was explicitly written in the Labour manifesto.

“And we had the biggest tax raising budget in British history.”

The shadow chancellor said a Conservative budget would have taken “the harder path” by cutting the number of people on benefits to 2019 levels to fund public services, which he said would release £34bn a year.

He added he does not think “anyone actually believes this £22bn number… but she didn’t increase taxes by £22bn, she increased them by £40bn”.

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“This was not about her legacy. This was a choice,” he added.

“This was the budget that she wanted to do all along. And it’s a legitimate choice. It’s one I disagree with. But if she’d wanted to do that, she should have told us before the election we could have had the debate.”

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Arthur Hayes says to trade new stablecoin IPOs like a ‘hot potato’

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Arthur Hayes says to trade new stablecoin IPOs like a ‘hot potato’

Arthur Hayes says to trade new stablecoin IPOs like a ‘hot potato’

The BitMEX founder warned that most new stablecoin issuers will be overvalued and likely fail due to locked distribution channels.

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Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

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Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

Paradigm urges jury clarity in Roman Storm’s Tornado Cash case

Paradigm’s chief legal officer and general counsel said if Roman Storm is found guilty, it could slow future software development in the crypto and fintech industries.

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Flawed data used repeatedly to dismiss claims about ‘Asian grooming gangs’, Baroness Casey finds

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Flawed data used repeatedly to dismiss claims about 'Asian grooming gangs', Baroness Casey finds

Flawed data has been used repeatedly to dismiss claims about “Asian grooming gangs”, Baroness Louise Casey has said in a new report, as she called for a new national inquiry.

The government has accepted her recommendations to introduce compulsory collection of ethnicity and nationality data for all suspects in grooming cases, and for a review of police records to launch new criminal investigations into historical child sexual exploitation cases.

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Baroness Louise Casey answering question from the London Assembly police and crime committee at City Hall in east London. Pic: PA
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Baroness Louise Casey carried out the review. Pic: PA

The crossbench peer has produced an audit of sexual abuse carried out by grooming gangs in England and Wales, after she was asked by the prime minister to review new and existing data, including the ethnicity and demographics of these gangs.

In her report, she has warned authorities that children need to be seen “as children” and called for a tightening of the laws around the age of consent so that any penetrative sexual activity with a child under 16 is classified as rape. This is “to reduce uncertainty which adults can exploit to avoid or reduce the punishments that should be imposed for their crimes”, she added.

Baroness Casey said: “Despite the age of consent being 16, we have found too many examples of child sexual exploitation criminal cases being dropped or downgraded from rape to lesser charges where a 13 to 15-year-old had been ‘in love with’ or ‘had consented to’ sex with the perpetrator.”

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Grooming gangs victim speaks out

The peer has called for a nationwide probe into the exploitation of children by gangs of men.

She has not recommended another over-arching inquiry of the kind conducted by Professor Alexis Jay, and suggests the national probe should be time-limited.

The national inquiry will direct local investigations and hold institutions to account for past failures.

Home Secretary Yvette Cooper said the inquiry’s “purpose is to challenge what the audit describes as continued denial, resistance and legal wrangling among local agencies”.

On the issue of ethnicity, Baroness Casey said police data was not sufficient to draw conclusions as it had been “shied away from”, and is still not recorded for two-thirds of perpetrators.

‘Flawed data’

However, having examined local data in three police force areas, she found “disproportionate numbers of men from Asian ethnic backgrounds amongst suspects for group-based child sexual exploitation, as well as in the significant number of perpetrators of Asian ethnicity identified in local reviews and high-profile child sexual exploitation prosecutions across the country, to at least warrant further examination”.

She added: “Despite reviews, reports and inquiries raising questions about men from Asian or Pakistani backgrounds grooming and sexually exploiting young white girls, the system has consistently failed to fully acknowledge this or collect accurate data so it can be examined effectively.

“Instead, flawed data is used repeatedly to dismiss claims about ‘Asian grooming gangs’ as sensationalised, biased or untrue.

“This does a disservice to victims and indeed all law-abiding people in Asian communities and plays into the hands of those who want to exploit it to sow division.”

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From January: Grooming gangs: What happened?

The baroness hit out at the failure of policing data and intelligence for having multiple systems which do not communicate with each other.

She also criticised “an ambivalent attitude to adolescent girls both in society and in the culture of many organisations”, too often judging them as adults.

‘Deep-rooted failure’

Responding to Baroness Casey’s review, Ms Yvette Cooper told the House of Commons: “The findings of her audit are damning.

“At its heart, she identifies a deep-rooted failure to treat children as children. A continued failure to protect children and teenage girls from rape, from exploitation, and serious violence.

She added: “Baroness Casey found ‘blindness, ignorance, prejudice, defensiveness and even good but misdirected intentions’ all played a part in this collective failure.”

Ms Cooper said she will take immediate action on all 12 recommendations from the report, adding: “We cannot afford more wasted years repeating the same mistakes or shouting at each other across this House rather than delivering real change.”

Yvette Cooper makes a statement in the House of Commons, London, on Baroness Casey's findings on grooming gangs.
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Home Secretary Yvette Cooper responded to the report. Pic: PA

Conservative leader Kemi Badenoch said: “After months of pressure, the prime minister has finally accepted our calls for a full statutory national inquiry into the grooming gangs.

“We must remember that this is not a victory for politicians, especially the ones like the home secretary, who had to be dragged to this position, or the prime minister. This is a victory for the survivors who have been calling for this for years.”

Ms Badenoch added: “The prime minister’s handling of this scandal is an extraordinary failure of leadership. His judgement has once again been found wanting.

“Since he became prime minister, he and the home secretary dismissed calls for an inquiry because they did not want to cause a stir.

“They accused those of us demanding justice for the victims of this scandal as, and I quote, ‘jumping on a far right bandwagon’, a claim the prime minister’s official spokesman restated this weekend – shameful.”

The government has promised new laws to protect children and support victims so they “stop being blamed for the crimes committed against them”.

It is also launching new police operations and a new national inquiry to direct local investigations and hold institutions to account for past failures.

There will also be new ethnicity data and research “so we face up to the facts on exploitation and abuse,” the home secretary said.

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