Tax rises and spending cuts are expected in the autumn budget as the chancellor continues to claim Labor has gained a “disastrous legacy” from the Tories.
But are Rachel Reeves’ claims valid?
Sky’s Ed Conway assesses that he is right to profess such sadness.
At first glance, yesterday’s public finance figures provide a transparent justification for the course of action the Chancellor has already taken (according to my interlocutors in Whitehall): more taxes and more spending cuts in this month’s October budget.
I’ve been told it’s going to be grim.
However, it should be clear that there is another way for the Chancellor to create greater room for maneuver in relation to her budget rules, namely by substituting the specific measure in relation to which she considers this room for manoeuvre.
Many economists claim that the net debt statistic he inherited from the Conservatives is incorrect to use in his budget regulations, and that he deserves to use the country’s overall national debt, not excluding any debt held through the Bank of England.
Simply put, if she is this other metric (and I’m told that’s all she’s considering), then she suddenly has a lot more wiggle room.
Don’t expect her to replace her brain in October’s budget, though. There will be more bad news to come.
Read my full research here. . .
Ruth Davidson and Beth Rigthrough rejoin listeners’ questions via former Labour MP and former shadow culture secretary, Thangam Debbonaire.
They assign the role of special advisers in politics and talk about whether decentralized nations still want to have their own secretaries of state in Westminster.
They also give us a history lesson on the homestead and discuss political messages about the economy.
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By Jennifer Scott, Political Journalist
The government’s working group on child poverty wants to work as ministers begin to scale up a strategy to lift families out of poverty.
But despite tension within Labor and other parties, it will not remove the questionable limit on two-child allowances.
What is the policy?
The limit on benefits for two children announced by the Conservatives in 2015, as part of their austerity measures.
This means that while parents can claim child tax credits or Universal Credit bills for their first and second children, they can claim for any other children they have had.
These are separated child benefit payments, which restrict the number of children that can be claimed.
The conservatives’ argument to restrict tax credits to two young people has made the formula fairer for taxpayers, ensuring that families who receive benefits “face the same possible monetary options when it comes to having children as those who only work. “
But lawmakers and opposition activists said the measure would push more young people into poverty and hit families hard.
What does the Labor Party think about this?
Labor strongly criticized this policy when they were in opposition and many expected them to abandon it if they came to power.
But last year Sir Keir Starmer walked out over public finances.
The Resolution Foundation said removing the two-child limit would cost the government between £2. 5 billion and £3. 6 billion, but the charity Save the Children estimated the move would save part of a year. millions of young people in relative poverty.
Seven Labor MPs paid the penalty for their attempt to force the government out of politics: they were suspended from parliament for voting against the King’s speech.
Ministers have hinted that they like this policy, although it will materialise in the foreseeable future.
Sir Keir Starmer spoke to Chinese President Xi Jinping about “national security, border security and economic stability”.
In a statement, Downing Street said the prime minister set out his government priorities before discussing “potential spaces for cooperation between the United Kingdom and China. “
A spokeswoman added: “As permanent members of the UN Security Council, the leaders agreed on the importance of close collaboration in areas such as climate update and global security.
“The Prime Minister added that he hoped the leaders would hold open, frank and fair discussions to confront and perceive spaces of war of words when necessary, such as Hong Kong, the Russian war in Ukraine and human rights.
“The leaders also agreed on the need for a strong and consistent relationship between the United Kingdom and China, adding to the discussion between their respective foreign and House ministers.
“They agreed to get in touch. “
The Metropolitan Police has ended its involvement in investigating criminals into bets placed on election day.
In the past, police said they were investigating whether a “small number” of bets on the July 4 vote referred to more serious crimes, adding misconduct in public office.
Several Conservatives have been implicated in the gambling commission’s investigation, Rishi Sunak’s former parliamentary assistant, Craig Williams.
But the Met said that after a review of the evidence with the CPS, “it was decided that the maximum standard of misconduct in the functionality of a public service as it should be shown was not met. “
The investigation continues through the Gambling Commission to determine if violations of the Gambling Act have been committed.
As we reported yesterday, the Lib Dems announced they would introduce a motion in Parliament calling on MPs to recognize the impact of Taylor Swift’s Eras tour on the economy.
They also need the pop star to get freedom from London after the conclusion of her Wembley concerts this week.
But to what extent can Swift help a country’s economy? It has been reported that the UK could have benefited from a £1 billion increase.
In this episode, Niall Paterson joins through our entertainment reporter Gemma Peplow to learn more about Swift’s appeal and her position in the music industry.
Niall joins through Maria Psyllou, assistant professor of economics at the University of Birmingham, to discuss Swifttonomics and its impact.
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The Politics Hub is running a little slower than before right now.
The House of Commons has been in summer recess since July 30 and will continue until September 2.
This means that there will be no family rooms, ministerial statements or other usual business.
And there is nothing in the House of Lords either.
It’s an era that members can take advantage of to take vacations, even if they’re still destined to deal with the mess of their constituency.
Of course, this year’s summer break proved very busy for the Prime Minister and his management team due to the unrest, even though Parliament did not meet earlier than expected.
Once Parliament returns on September 2, the next recess will come ten days later.
It’s convention season, when MPs will fan out across the country for some of the biggest occasions on the political calendar.
Our economics and knowledge editor, Ed Conway, warned there would be “a lot of bad news” in the autumn budget.
Tax increases will be planned, but given that the Chancellor has ruled out expanding the sources of income tax, national insurance and VAT, what can be planned for an increase?
Inheritance taxes
One of the top taxes is likely to be increased: the threshold could be reduced to £325,000 if a user dies, or other people could pay more than 40% on certain inheritances.
A leaked recording of Treasury Minister Darren Jones before his entry suggests he is in favour of such a change.
Capital tax
This tax is imposed on the profit from the sale of assets.
The government could simply reduce the floor or increase the percentage of tax collected, with some calling for it to be aligned with the source of income tax.
Housing tax
There is a hypothesis that the municipal tax is “obsolete”.
Although the Labour Party said before the election that it would not replace the council tax bundling, further updates may be on the table.
Commercial rates
This tax is what housing tax corporations pay on their properties.
Calculations of how much other people pay can be updated to reflect a more current situation in real estate prices.
Stamp duty
A tax payable on homes over £250,000, which refers to momentary homes.
Changing this can simply increase trading volume and raise more money.
Alix Culbertson, a political journalist, discusses the issue of taxes in more detail in the following article:
Three MPs will face each other in the Scottish Conservative race.
Russell Findlay, Murdo Fraser and Meghan Gallacher will now hold a vote among party members to determine who will update current leader Douglas Ross.
The trio secured the necessary hundred nominations from their members and saw off fellow MPs Brian Whittle, Liam Kerr and Jamie Greene to the festival.
Whittle, Kerr and Greene withdrew from the race and helped Mr Fraser.