Budget 2024 latest: Reeves to unveil plan to rip up debt rules and unlock £50bn at IMF in Washington
Chancellor will reportedly confirm new debt rules after much speculation
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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 ventured to the US to attend the International Monetary Fund’s (IMF) annual meeting in Washington. It is expected that she will announce a plan to change Britain’s debt rules at the event, unlocking up to £50bn extra to spend on infrastructure projects.
There has been weeks of speculation about the changes, which some experts have said run the risk of flouting a key Labour manifesto commitment.
Speaking ahead of the IMF event on Wednesday, Ms Reeves said: “A Britain built on the rock of economic stability is a Britain that is a strong and credible international partner.
“I’ll be in Washington to tell the world that our upcoming budget will be a reset for our economy as we invest in the foundations of future growth.”
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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ICMYI: Streeting refuses to rule out income tax threshold freeze
Wes Streeting has refused to rule out that the Government will freeze income tax thresholds in the upcoming Budget.
Mr Streeting had previously voted against the measure in opposition while Rishi Sunak was prime minister.
Speaking on Sunday Morning With Trevor Phillips on Sky News, Mr Streeting said: “I’m not going to speculate on what the Chancellor might do in the Budget.
“If you’re asking me whether I would vote against anything in the Chancellor’s Budget? The answer is no, of course I’m not going to do that.”
He went on to say: “This country is paying a heavy price for Conservative failure, and we’re going to have to make some big and difficult choices in this Budget to make sure we fix the foundations of the economy and we don’t end up back here.”
He later added: “What we’re not going to do is duck the difficult decisions, have Government by gimmick, short-term sticking plasters, because that is exactly how we ended up in this situation.”
Wes Streeting warned inflation-busting NHS Budget deal will not be enough
Wes Streeting warned inflation busting NHS Budget deal will not be enough
Health experts urge the government to find more money to tackle waiting lists and improve NHS care
Will there be Business Rates reforms in the budget?
In its election manifesto, Labour said it was committed to reforming the current business rates system “so we can raise the same revenue but in a fairer way”.
What this means has not been spelt out by the party, but it said the new system will be designed to “level the playing field between the high street and online giants, better incentivise investment, tackle empty properties and support entrepreneurship”.
It’s thought this could take the form of an immediate cut to the rates, while also closing loopholes which allow some firms to avoid tax. This will come as welcome news to smaller business owners, but Labour will be careful to ensure their reform maintains a monetary net zero.
Exchequer secretary James Murray MP confirmed this at a Labour conference fringe event hosted by the British Retail Consortium, saying: “It’s within the current envelope. It’s all about raising the same amount of money overall, that’s the commitment.”
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