Budget 2024 live: Keir Starmer to warn UK must be ‘realistic’ in speech ahead of expected tax hikes

A Nigel Farage-inspired bid to persuade Donald Trump to veto Keir Starmer’s controversial Chagos Islands deal can be revealed today.

The Independent has seen legal advice on Starmer’s controversial deal to hand over the Chagos Islands to Mauritius sent to Mr Trump that was requested after the Reform UK leader raised the issue directly with the former president’s team.

The advice was drawn up by legal experts who worked alongside Mr Farage in the Brexit campaign.

Mr Farage says he was not directly involved in the legal advice but his links with Trump are believed to have played a vital part in the initiative.

The aim of Farage and his allies is to persuade Trump to block the deal if he becomes president.

Read the full exclusive story from David Maddox and Andrew Feinberg here:

A prominent Labour donor has told wealthy Britons threatening to leave the country over potential tax hikes to “f*** off,” claiming they contribute little to the UK if they are only here for low taxes.

Dale Vince, the green energy tycoon who has previously donated £5 million to Labour, has dismissed arguments that higher taxes will harm UK entrepreneurship, describing this view as “profoundly stupid.” Instead, Mr Vince suggests Britain would be better off without those who are prepared to leave if, as expected, Shadow Chancellor Rachel Reeves raises taxes in the upcoming Budget.

Read more here:

Rachel Reeves could put up the price of bus fares in Wednesday’s Budget, according to newspaper reports.

Department for Transport analysis has reportedly concluded that the £2 cap on bus fares is not financially sustainable for the taxpayer and bus operators. The measure has apparently cost £200 million in the first ten months between January and October 2023.

Ms Reeves is expected to announce the rise and say that such measures are necessary to fund the NHS.

A former Labour shadow minister says he has spoken to police after a video emerged of him appearing to tell a member of the public “you won’t ever threaten me again, will you?”

Officers are investigating reports of an alleged assault involving the backbencher.

In footage shared on social media, Mike Amesbury, the MP for Runcorn and Helsby, is seen apparently repeatedly pointing at the man, who is on the ground.

At one point, when he is identified as a local MP, he appears to say: “Yes, I am, and you won’t threaten the MP ever again, will you?”

Cheshire Police said they were called to reports of an assault in Frodsham in the early hours of Saturday.

Asked whether the Labour Party was investigating, Ms Phillipson told Sky News’s Sunday Morning With Trevor Phillips programme: “Mike Amesbury, who’s the MP in question, has gone forward to the police.

“He is co-operating with any investigation they would want to take forward. It is a matter for the police and we want to allow them to do that work.”

Wednesday’s Budget is expected to slash government waste, such as cutting £550 million from spending on private consultants, according to a report in The Sunday Times.

Ms Reeves will also announce a sale of £1bn of government property by 2030, the newspaper reported.

Some redundancies are also expected in Defra’s arms-length bodies.

Military families are set to be protected from Labour’s decision to impose VAT on private school fees.

Critics of the plan have warned it is unfair to those in the Armed Forces who have to move countries and homes frequently and put their children in boarding schools.

There have even been warnings some could leave the services altogether as a result of fee increases which could come as a result of the changes due to come in in January.

Working people will not see higher taxes on their payslip, a minister said as she acknowledged “frustrations” over the government’s refusal to spell out who will be hit by greater levies ahead of the Budget.

Education Secretary Bridget Phillipson repeated warnings that Wednesday’s financial statement will include “tough choices”, but she insisted it is a choice between investment or decline for the UK.

Facing broadcasters on Sunday morning, the Cabinet minister was repeatedly pressed to define the Labour Government’s use of the term “working people” – who it has promised to protect from tax hikes in the Budget.

“You are inviting me to speculate about the nature of the question that you’re asking,” she told the BBC’s Sunday With Laura Kuenssberg show.

“What I’m saying is that when people look at their payslips, they will not see higher taxes.”

Ahead of the Budget on 30 October, there has been fevered speculation about changes to pension savers’ tax allowances and other perks.

Reports that pensioners could have tax breaks cut or axed led to savers withdrawing chunks of their retirement pots ahead of Chancellor Rachel Reeves’s big announcement.

Other speculation focused on tax breaks for workers planning to retire, spurring them to do the opposite, and pack more cash into their pensions in case their own tax incentives are slashed.

Read more about what you should do with your savings from Howard Mustoe here:

Sir Keir Starmer’s chief of staff Morgan McSweeny and deputy prime minister Angela Rayner are battling for influence in No10, according to a report in The Telegraph.

The friction is reportedly over the government’s plans for devolving power across the regions and nations. While Ms Rayner is meant to be overseeing the plans, The Telegraph has reported that the most important meetings are happening behind her back.

Mr McSweeney is reportedly holding monthly calls with the mayors, while Ms Rayner is not invited.

Rachel Reeves is expected to make three key pledges in her Budget on Wednesday.

According to a report in The Sunday Times, the chancellor will promise to “do everything in my power to protect working people”, “fix the NHS” and “rebuild Britain”.

Ms Reeves will emphasis the terrible public spending situation she inherited from the Conservatives, and the Office of Budget Responsibility (OBR) will publish a document providing a detailed breakdown of the £22bn ‘black hole’ that Labour has said it has inherited, the Sunday paper reports.

Ms Reeves will also reportedly announce an end to big changes in the Spring statement, pledging that the Budget will be the only time big economic plans are set out.