Budget 2024 latest: Reeves admits ‘taxes will need to rise’ in stark warning to public
Chancellor has reiterated that “tough decisions” have been made ahead of next week
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Rachel Reeves will announce Labour’s first Budget since coming into power on 30 October, leading one of the most anticipated fiscal events in over two decades.
Ahead of her announcement, the chancellor has said “taxes will need to rise” in her starkest warning to the public yet. Writing in the Financial Times, the chancellor added that this will come alongside “tough decisions on spending and welfare.”
Ms Reeves also strongly hints that she will be revising Labour’s fiscal rule around debt, unlocking a potential £57bn for investment, writing that the rule “will make space for increased investment in the fabric of our economy”.
Meanwhile, Sir Keir Starmer is attending the Commonwealth Heads of Government Meeting (Chogm) in Samoa, where he has issued a strong rallying call regarding the upcoming fiscal event.
“We are going to tackle the inheritance in this Budget,” he said, adding: “I’m not prepared to walk past it.
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
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The surprise rise in borrowing came despite the cut to Britain’s expenditure on winter fuel allowances
Inheritance tax already up 10 per cent as Reeves looks to squeeze levy in Budget, official figures show
Brits are already paying 10 per cent more on inheritance tax before Reeves’ budget
Chancellor warned that hiking the tax at next week’s Budget risks punishing middle-class homeowners
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Wes Streeting warned inflation busting NHS Budget deal will not be enough
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Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole
Tax on high earners ruled out as Rachel Reeves looks to plug £40bn Budget black hole
No 10 forced into astonishing admission that high earners can also be protected by its pledge not to raise national insurance for working people – after minister refused six times to confirm if that included employees on six-figure salaries
UK economy to grow faster than thought in pre-Budget boost for Reeves
Inheritance tax already up 10 per cent as Reeves looks to squeeze levy in Budget
Britons are already paying more inheritance tax as Rachel Reeves looks to squeeze millions more from the levy, official figures show.
Payments swelled the Treasury’s coffers by £4.3bn in the six months since April, £400m more than in the same period in the previous financial year and a rise of 10 per cent, new data from HM Revenue and Customs shows.
Brits are already paying 10 per cent more on inheritance tax before Reeves’ budget
Chancellor warned that hiking the tax at next week’s Budget risks punishing middle-class homeowners
Borrowing figures show “scale of public finances challenges” says expert
Government spending so far this financial year was £11.5 billion more than forecast by the OBR, points out The Resolution Foundation, which tallies with Rachel Reeves’ claim of a £22 billion “black hole” in the public finances.
The foundation’s senior economist Cara Pacitti said: “Six months into the financial year, Britain is borrowing £6.7 billion more than expected at the time of the Budget in March.
“This reflects central government spending which is £11.5 billion higher than anticipated, largely due to public sector pay rises and higher running costs.
“Today’s data highlights the scale of the public finances challenges facing the Chancellor as she grapples with overspending today, the need to avoid austerity in the future, and having to fund extra public service spending through tax rises.”
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