Connect with us

Published

on

Rishi Sunak and Boris Johnson have overseen the largest set of tax rises since the Second World War, according to economic analysis.

The Institute for Fiscal Studies (IFS) estimates that – by the time of the next general election – the tax burden will have risen to around 37% of national income.

This equates to roughly £3,500 extra per household – although the increase is not shared evenly.

Politics latest: Ofcom ‘doesn’t want to give knee-jerk response’

Politics Hub with Sophy Ridge

Politics Hub with Sophy Ridge

Sky News Monday to Thursday at 7pm.
Watch live on Sky channel 501, Freeview 233, Virgin 602, the Sky News website and app or YouTube.

Tap here for more

Records began in 1950 for the figures, and no parliament has seen a larger hike.

The size of the tax burden and the lack of cuts to tariffs have been the subject of the ire of many Conservatives.

The headroom for tax cuts has suffered as interest rates rose and the cost to service debt has risen. High inflation has led the government to be cautious of cutting taxes and leaving people with more cash to spend.

More on Boris Johnson

Last week, Chancellor Jeremy Hunt said it would be “virtually impossible” to cut taxes at the moment.

“I really, really wish it was true but unfortunately, it just isn’t,” he told LBC.

“If you look at what we are having to pay for our long-term debt, it is higher now than it was at the spring budget.

“I wish it wasn’t, it makes life extremely difficult, it makes tax cuts virtually impossible, and it means that I will have another set of frankly very difficult decisions.

“All I would say is, if we do want those long-term debt costs to come down, then we need to really stick to this plan to get inflation down, get interest rates down.

“I don’t know when that’s going to happen. But I don’t think it’s going to happen before the autumn statement on November 22, alas.”

Read more:
Inheritance tax ‘punitive and unfair’
Truss to urge government to cut taxes

Sunak refuses to answer questions on HS2’s future

There will likely be pressure for Mr Hunt and Mr Sunak to cut taxes – with some eyeing up cuts to sizeable projects like HS2 as a way to free up cash, and others calling for a relaxation of inheritance tax.

The economy is an area that Mr Sunak wants to make his strength – with three of his five pledges made at the start of this year relating to them.

Ben Zaranko, senior research economist at the IFS, said the pandemic could not be blamed for rising tax levels and predicted a high-tax approach was here to stay regardless of who wins the next general election.

“It is inconceivable that this parliament will turn out to be anything other than a tax-raising one – and it looks nailed on to be the biggest tax-raising parliament since at least the Second World War,” he said.

“This is not, for the most part, a direct consequence of the pandemic. Rather, it reflects decisions to increase government spending, in part driven by demographic change, pressures on the health service, and some unwinding of austerity.

“It is likely that this parliament will mark a decisive and permanent shift to a higher-tax economy.”

Please use Chrome browser for a more accessible video player

‘The plan is working’

This was echoed by Mark Franks, the director of welfare at the Nuffield Foundation.

He said: “There will be strong pressure in coming parliaments to raise taxes further to meet growing demand for public services such as healthcare.

“Future governments must not only have a credible and robust strategy for the economy and the public finances, but should also be forthright and transparent about the difficult trade-offs they will face.”

Opposition parties seized on the findings, as Labour said that the Tories had “clobbered” the public.

Shadow chief secretary to the Treasury Darren Jones said: “Successive Tory governments have overseen 13 years of low growth and stagnant wages. Their response in the face of this bankrupt legacy is always to load their failure onto working people. And what are we getting back? Crumbling public services.

“Brits are working hard but getting clobbered with 25 Tory tax rises and a continuing Conservative premium on their household budgets.”

Click to subscribe to the Sky News Daily wherever you get your podcasts

A Treasury spokesperson said: “Despite needing to take the difficult decisions to restore public finances in the face of the dual shocks of the pandemic and Putin’s illegal invasion of Ukraine, the latest data shows our tax burden will remain lower than any major European economy.

“Driving down inflation is the most effective tax cut we can deliver right now, which is why we are sticking to our plan to halve it, rather than making it worse by borrowing money to fund tax cuts.

“We have also taken 3 million people out of paying tax altogether since 2010 through raising personal thresholds, and the chancellor has said he wants to lower the tax burden further – but has been clear that sound money must come first.”

Continue Reading

UK

Britain’s winter blackout risk the lowest in six years – but ‘tight’ days expected

Published

on

By

Britain's winter blackout risk the lowest in six years - but 'tight' days expected

Britain is at the lowest risk of a winter power blackout than at any point in the last six years, the national electricity grid operator has said.

Not since the pre-pandemic winter of 2019-2020 has the risk been so low, the National Energy System Operator (NESO) said.

It’s thanks to increased battery capacity to store and deploy excess power from the likes of windfarms, and a new subsea electricity cable to Ireland that came on stream in April.

The margins between expected demand and supply are now roughly three gas power stations greater than last year, the NESO said.

Please use Chrome browser for a more accessible video player

Renewables overtake coal for first time

It also comes as Britain and the world reached new records for green power.

For the first time, renewable energy produced more of the world’s electricity than coal in the first half of 2025, while in Britain, a record 54.5% of power came from renewables like solar and wind energy in the three months to June.

More renewable power can mean lower bills, as there’s less reliance on volatile oil and gas markets, which have remained elevated after the invasion of Ukraine and the Western attempt to wean off Russian fossil fuels.

“Renewables are lowering wholesale electricity prices by up to a quarter”, said Jess Ralston, an energy analyst at the Energy and Climate Intelligence Unit (ECIU) thinktank.

Read more:
Bank issues warning over AI bubble
Gold smashes past $4,000 per ounce

In a recent winter, British coal plants were fired up to meet capacity constraints when cold weather increased demand, but still weather conditions meant lower supply, as the wind didn’t blow.

Those plants have since been decommissioned.

But it may not be all plain sailing…

There will, however, be some “tight” days, the NESO said.

On such occasions, the NESO will tell electricity suppliers to up their output.

The times Britain is most likely to experience supply constraints are in early December or mid-January, the grid operator said.

The NESO had been owned by National Grid, a public company listed on the New York Stock Exchange, but was acquired by the government for £630m in 2023.

Continue Reading

UK

‘Why are you doing this to me?’ Woman accused of stalking the McCanns has outburst in court

Published

on

By

'Why are you doing this to me?' Woman accused of stalking the McCanns has outburst in court

A woman accused of stalking Madeleine McCann’s parents shouted: “Why are you doing this to me?” and was led away in tears by officers, during her trial.

Giving evidence against 24-year-old Julia Wandelt, Mrs McCann said her first contact with the Polish woman happened “about three years ago”.

Wandelt insisted that she was Madeleine, who went missing in Portugal in 2007, while stalking the missing girl’s parents by sending emails, calling them and turning up at their address, prosecutors allege.

Follow the latest updates from the trial

Wandelt claims to be missing Madeleine McCann (pictured)
Image:
Wandelt claims to be missing Madeleine McCann (pictured)

Wandelt is accused of one count of stalking causing serious alarm and distress to Mrs McCann and Gerry McCann between June 2022 and February this year. She denies stalking.

She is on trial with 61-year-old Karen Spragg, from Cardiff, who is accused of the same offence and also denies the offence.

Speaking from behind a blue curtain screening her from the dock at Leicester Crown Court, Mrs McCann spoke about the defendants visiting her home address in Leicestershire on 7 December last year.

More on Madeleine Mccann

A court sketch of Karen Spragg (left) and Julia Wandelt (right), with Kate McCann sitting behind a blue curtain. Pic: PA
Image:
A court sketch of Karen Spragg (left) and Julia Wandelt (right), with Kate McCann sitting behind a blue curtain. Pic: PA

Mrs McCann told the court that Wandelt had been “pleading” with her, asking why she wouldn’t agree to do a DNA test.

Spragg, who accompanied Wandelt, was “slightly more aggressive”, asking her whether she didn’t want to find her daughter, Mrs McCann added.

“I told them to leave. I told them I was distressed,” she told the court.

Karen Spragg arrives at Leicester Crown Court. Pic: PA
Image:
Karen Spragg arrives at Leicester Crown Court. Pic: PA

Asked how the incident had made her feel, Mrs McCann added: “I felt quite distressed to be honest. I think I had been on edge anyway because of the recent communications from her.”

After Mrs McCann had given her first round of evidence, Wandelt was led away from the dock after sobbing loudly and shouting: “Why are you doing this to me?”.

Mrs McCann told the jury that Wandelt had been “incessant” with her messages, which left her with a “little niggle” about doing a DNA test.

Kate and Gerry McCann are pictured in 2012 with a missing poster depicting an age progression computer-generated image of Madeleine. Pic: AP
Image:
Kate and Gerry McCann are pictured in 2012 with a missing poster depicting an age progression computer-generated image of Madeleine. Pic: AP

She said part of her brain was “saying ‘what if'” because of Wandelt’s frequent messages, but added: “Having seen a photo of her, she’s Polish … it doesn’t make sense.”

“I can’t say what Madeleine looks like now, but if I saw a photo of her, I would recognise her,” she said.

But she added that the “persistance” of Wandelt’s behaviour started to “get to” her, making her “almost [want] a DNA test to put it to bed”.

Read more from Sky News:
Rise in online hate targeting footballers
Badenoch has done enough to hold off critics

Asked about the impact on her between June 2022, when Wandelt first made contact, and February this year, when the 24-year-old was arrested, Mrs McCann said: “I feel like it has escalated, the level of stress and anxiety it’s caused me has increased over that time.”

She added that she has felt “more relaxed” since Wandelt’s arrest.

Gerry McCann told the court he answered the phone to Julia Wandelt on one of the many occasions that she tried to call Kate. He said he told Wandelt: “You’re not Madeleine.”

He said: “I made it very clear these were unwanted calls. To be honest, it was a bit of a blur.”

The trial continues.

Continue Reading

UK

Badenoch pulls off first conference speech as leader, but it is less clear if this will be her last

Published

on

By

Badenoch pulls off first conference speech as leader, but it is less clear if this will be her last

There’s no question that Kemi Badenoch’s on the ropes after a low-energy first year as leader that has seen the Conservative Party slide backwards by pretty much every metric.

But on Wednesday, the embattled leader came out swinging with a show-stopping pledge to scrap stamp duty, which left the hall delirious. “I thought you’d like that one,” she said with a laugh as party members cheered her on.

A genuine surprise announcement – many in the shadow cabinet weren’t even told – it gave the Conservatives and their leader a much-needed lift after what many have dubbed the lost year.

Politics latest: Stamp duty to be axed under Tories

Ms Badenoch with her husband, Hamish. Pic: PA
Image:
Ms Badenoch with her husband, Hamish. Pic: PA

Ms Badenoch tried to answer that criticism this week with a policy blitz, headlined by her promise on stamp duty.

This is a leader giving her party some red meat to try to help her party at least get a hearing from the public, with pledges on welfare, immigration, tax cuts and policing.

In all of it, a tacit admission from Ms Badenoch and her team that as politics speeds up, they have not kept pace, letting Reform UK and Nigel Farage run ahead of them and grab the microphone by getting ahead of the Conservatives on scrapping net zero targets or leaving the ECHR in order to deport illegal migrants more easily.

Ms Badenoch is now trying to answer those criticisms and act.

At the heart of her offer is £47bn of spending cuts in order to pay down the nation’s debt pile and fund tax cuts such as stamp duty.

All of it is designed to try to restore the party’s reputation for economic competence, against a Labour Party of tax rises and a growing debt burden and a Reform party peddling “fantasy economics”.

She needs to do something, and fast. A YouGov poll released on the eve of her speech put the Conservatives joint third in the polls with the Lib Dems on 17%.

That’s 10 percentage points lower than when Ms Badenoch took power just under a year ago. The crisis, mutter her colleagues, is existential. One shadow cabinet minister lamented to me this week that they thought it was “50-50” as to whether the party can survive.

Read more from Sky News:
Starmer blames Tories for China spy trial being dropped
UK won’t give more visas to Indian workers, says PM

(L-R) Shadow business secretary Andrew Griffith, shadow environment secretary Victoria Atkins and shadow housing secretary Sir James Cleverly. Pic: PA
Image:
(L-R) Shadow business secretary Andrew Griffith, shadow environment secretary Victoria Atkins and shadow housing secretary Sir James Cleverly. Pic: PA

Ms Badenoch had to do two things in her speech on Wednesday: the first was to try to reassert her authority over her party. The second was to get a bit of attention from the public with a set of policies that might encourage disaffected Tories to look at her party again.

On the first point, even her critics would have to agree that she had a successful conference and has given herself a bit of space from the constant chatter about her leadership with a headline-grabbing policy that could give her party some much-needed momentum.

On the second, the promise of spending control coupled with a retail offer of tax cuts does carve out a space against the Labour government and Reform.

But the memory of Liz Truss’s disastrous mini-Budget, the chaos of Boris Johnson’s premiership, and the failure of Sunak to cut NHS waiting lists or tackle immigration still weigh on the Conservative brand.

Ms Badenoch might have revived the room with her speech, but whether that translates into a wider revival around the country is very hard to read.

Ms Badenoch leaves Manchester knowing she pulled off her first conference speech as party leader: what she will be less sure about is whether it will be her last.

I thought she tacitly admitted that to me when she pointedly avoided answering the question of whether she would resign if the party goes backwards further in the English council, Scottish parliament and Welsh Senedd elections next year.

“Let’s see what the election result is about,” was her reply.

That is what many in her party are saying too, because if Ms Badenoch cannot show progress after 18 months in office, she might see her party turn to someone else.

Continue Reading

Trending