Rachel Reeves has refused to rule out breaking her manifesto pledge not to raise certain taxes, as she lays the groundwork ahead of the budget later this month.
Asked directly by our political editor Beth Rigby if she stands by her promises not to raise income tax, national insurance or VAT, the chancellor declined to do so.
She told Rigby: “Your viewers can see the challenges that we face, the challenges that are on [sic] a global nature. And they can also see the challenges in the long-term performance of our economy.”
She went on: “As chancellor, I have to face the world as it is, not the world as I want it to be. And when challenges come our way, the only question is how to respond to them, not whether to respond or not.
“As I respond at the budget on 26 November, my focus will be on getting NHS waiting lists down, getting the cost of living down and also getting the national debt down.”
‘Each of us must do our bit’
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Ms Reeves’s comments to Rigby came after a highly unusual pre-budget speech in Downing Street in which she set out the scale of the international and domestic “challenges” facing the government.
What did Labour promise in their manifesto?
Rachel Reeves has refused to say whether she will hike taxes, but what exactly was her manifesto commitment last year?
She said: “We will ensure taxes on working people are kept as low as possible.
“Labour will not increase taxes on working people, which is why we will not increase national insurance, the basic, higher, or additional rates of income tax, or VAT.”
She also hinted at tax rises, saying: “If we are to build the future of Britain together, each of us must do our bit for the security of our country and the brightness of its future.”
Despite her promise that last year’s budget – which was the biggest tax-raising fiscal event since 1993 – was a “once in a parliament event,” the chancellor said that in the past year, “the world has thrown even more challenges our way,” pointing to “the continual threat of tariffs” from the United States, inflation that has been “too slow to come down,” “volatile” supply chains leading to higher prices, and the high cost of government borrowing.
She also put the blame squarely on previous Tory governments, accusing them of “years of economic mismanagement” that has “limited our country’s potential,” and said past administrations prioritised “political convenience” over “economic imperative”.
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Sky’s Beth Rigby said there will be ‘almighty backlash’ after budget, as chancellor failed to rule out breaking tax pledges.
Ms Reeves painted a picture of devastation following the years of austerity in the wake of the financial crisis, “instability and indecision” after that, and then the consequences of what she called “a rushed and ill-conceived Brexit”.
“This isn’t about re-litigating old choices – it’s about being honest with the people, about the consequences that those choices have had,” she said.
‘I don’t expect anyone to be satisfied with growth so far’
The chancellor defended her personal record in office so far, saying interest rates and NHS waiting lists have fallen, while investment in the UK is rising, and added: “Our growth was the fastest in the G7 in the first half of this year. I don’t expect anyone to be satisfied with growth of 1%. I am not, and I know that there is more to do.”
Amid that backdrop, Ms Reeves set out her three priorities for the budget: “Protecting our NHS, reducing our national debt, and improving the cost of living.”
Cutting inflation will also be a key aim in her announcements later this month, and “creating the conditions that [see] interest rate cuts to support economic growth and improve the cost of living”.
She rejected calls from some Labour MPs to relax her fiscal rules, reiterating that they are “ironclad,” and arguing that the national debt – which stands at £2.6trn, or 94% of GDP – must come down in order to reduce the cost of government borrowing and spend less public money on interest payments to invest in “the public services essential to both a decent society and a strong economy”.
She also put them on notice that cuts to welfare remain on the government’s agenda, despite its humiliating U-turn on cuts to personal independence payments for disabled people earlier this year, saying: “There is nothing progressive about refusing to reform a system that is leaving one in eight young people out of education or employment.”
Image: Chancellor Rachel Reeves delivered a highly unusual pre-budget speech from Downing Street. Pic: PA
And the chancellor had a few words for her political opponents, saying the Tories’ plan for £47bn in cuts would have “devastating consequences for our public services,” and mocked the Reform UK leadership of Kent County Council for exploring local tax rises instead of cuts, as promised.
Concluding her speech, Ms Reeves vowed not to “repeat those mistakes” of the past by backtracking on investments, and said: “We were elected to break with the cycle of decline, and this government is determined to see that through.”
‘Reeves made all the wrong choices’
In response to her speech, Conservative shadow chancellor Sir Mel Stride wrote on X that “all she’s done is confirm the fears of households and businesses – that tax rises are coming”.
He wrote: “The chancellor claims she fixed the public finances last year. If that was true, she would not be rolling the pitch for more tax rises and broken promises. The reality is, she fiddled the fiscal rules so she could borrow hundreds of billions more.
“Every time the numbers don’t add up, Reeves blames someone else. But this is about choices – and she made all the wrong ones. If Rachel Reeves had the backbone to get control of government spending – including the welfare bill – she wouldn’t need to raise taxes.”
It started with a strong espresso in a simple cafe on a side street in north London.
Several Algerian men were inside, a few others were outside on the pavement, smoking.
I’d been told the wanted prisoner might be in Finsbury Park, so I ordered a coffee and asked if they’d seen him.
Image: Spotting a man resembling the suspect, Tom and camera operator Josh Masters gave chase
They were happy to tell me that some of them knew Brahim Kaddour-Cherif – the 24-year-old offender who was on the run.
One of the customers revealed to me that he’d actually seen him the night before.
“He wants to hand himself to police,” the friend said candidly.
This was the beginning of the end of a high-profile manhunt.
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The Algerian convicted sex offender had been at large since 29 October, after he was mistakenly released from HMP Wandsworth in south London.
Within an hour of meeting the friend in the cafe, he had followed myself and camera operator Josh Masters to a nearby street.
Image: Kaddour-Cherif was accidentally freed five days after the wrongful release of convicted sex offender Hadush Kebatu (pictured). They were both arrested separately in Finsbury Park. Pic: Crown Prosecution Service/PA
We weren’t yet filming – he didn’t want any attention or fuss surrounding him.
“Follow me, he’s in the park,” the man told me.
“Follow – but not too close.”
We did.
I was in the same park a few weeks ago after fugitive Hadush Kebatu, the Ethiopian sex offender – also wrongly released from prison – was arrested in Finsbury Park.
It was odd to be back in the same spot in such similar circumstances.
As he led us through the park past joggers, young families and people playing tennis, the man headed for the gates near Finsbury Park station.
All of a sudden, two police officers ran past us.
The Met had received a tip-off from a member of the public.
It was frantic. Undercover officers, uniformed cops, screeching tyres and blaring sirens. We were in the middle of the manhunt.
As they scoured the streets at speed, we walked by some of the Algerian men I’d seen in the cafe.
Image: Kaddour-Cherif walked up to a nearby police van as Tom continued to question him
One man near the group was wearing green tracksuit bottoms, a beanie hat and had glasses on.
“It’s him, it’s him,” one of the other men said to me, gesturing towards him.
The man in the beanie then quickly turned on his heel and walked off.
“It’s him, it’s him,” another guy agreed.
The suspect was walking off while the police were still searching the nearby streets.
Josh and I caught up with him and I asked directly: “Are you Brahim?”
You may have watched the exchange in the Sky News video – he was in denial, evasive and pretended the suspect had pedalled off on a Lime bike.
I can only guess he knew the game was up, but for whatever reason, he was keeping up the lie.
Image: Police moved in to handcuff him and used their phones to check an image of the wanted man from one of Sky News’ online platforms
Image: Once his identity was confirmed, Kaddour-Cherif was put into the back of the police van
Moments later, one of the bystanders told me “it is him” – with added urgency.
Only the prisoner knows why he then walked up to the nearby police van – officers quickly moved to handcuff him and tell him why he was being arrested.
Over the next 10 minutes, he became agitated. His story changed as I repeatedly asked if he had been the man inside HMP Wandsworth.
Officers needed confirmation too – one quickly pulled out a smartphone and checked an image of the wanted man from one of Sky News’ online platforms.
Nadjib had been on the lookout for the convicted sex offender, who had been spending time in different parts of north London since his release from HMP Wandsworth.
He even had a folded-up newspaper clipping in his pocket so that he could check the picture himself.
He told Sky News he was “very happy when he got arrested”.
“I don’t like the sex offenders,” he said.
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“I know him from the community. He has been around here every night since he was released from prison.”
Image: Nadjib (L) told Sky’s Tom Parmenter he had been looking out for the offender
Not only did he tip the police off about the prisoner’s whereabouts, but he also witnessed the other high-profile manhunt that ended in the same park last month.
Ethiopian asylum seeker Hadush Kebatu was also arrested in Finsbury Park after a 48-hour manhunt in the capital. He was then deported to Ethiopia.
Image: Brahim Kaddour-Cherif
“When he [Kebatu] got arrested in the park I was there,” Nadjib said.
I asked him why both men ended up in the same park in north London.
“Because the community, he came here for the community of Algerians,” he said.
Several Algerian people that I spoke to on Friday told me how shameful they thought it was that this sex offender was still on the run.
An NHS trust and a ward manager will be sentenced next week for health and safety failings – more than a decade after a young woman died in a secure mental health hospital.
Warning: This article contains references to suicide.
The decisions were reached after the joint-longest jury deliberation in English legal history.
Alice was 22 years old when she took her own life at London’s Goodmayes Hospital in July 2015.
Her parents sat through seven months of difficult and graphic evidence – and told Sky News the experience retraumatised them.
Image: Mother Jane Figueiredo
Jane Figueiredo said: “It’s very distressing, because you know that she’s been failed at every point all the way along, and you’re also reliving the suffering that she went through.
“It’s adding trauma on top of the wound that you’ve already got, the worst wound you can imagine, of losing your child.”
Image: Step-father Max Figueiredo
Alice’s stepfather Max said he remains “appalled” that she died in a place they thought would care for her.
“The fact we have these repeated deaths of very young people in secure mental health units shocks me to the core. How can society look at that event and portray it as something that happens as a matter of course?”
Ms Figueiredo said Alice had predicted her own death.
“She said to us – out of fear really: ‘The only way I’m going to leave this ward is in a body bag.’
Image: Alice had predicted her own death, her mother says
In a statement, the North East London NHS Foundation Trust said: “We are deeply sorry for Alice’s death, and we extend our heartfelt condolences to her family and loved ones.
“We have taken significant steps to continually improve the physical and social environment, deliberately designed to support recovery, safety, wellbeing, and assist our workforce in delivering compassionate care.”
For Alice’s family, the convictions have brought some justice, but they will never have complete closure.
“As a mum your bereavement doesn’t ever end, it changes over years as you go on, but it’s unending. The thought I won’t even hear her voice is unbearable and I still miss it. I still miss her voice,” Ms Figueiredo said.
Anyone feeling emotionally distressed or suicidal can call Samaritans for help on 116 123 or email jo@samaritans.org in the UK. In the US, call the Samaritans branch in your area or 1 (800) 273-TALK.