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.
On the face of it, yesterday’s public finance figures provide a transparent justification for the course of action that the Chancellor has already taken (according to my interlocutors in Whitehall): more taxes and more spending cuts in this month’s October budget.
I’m told it will be dark.
However, it should be clear that there is another way in which the Chancellor can create greater room for maneuver in her fiscal rules, namely by converting the specific metric against which she judges that room for maneuver.
Many economists claim that the net debt statistic it inherited from the Conservatives is not adequate to use in their tax regulations, and that it deserves to use the country’s overall national debt, without ruling out any debt held through the Bank of England.
Simply put, if you use this other measure (and I’m told it’s whatever you’re considering), then you have a lot more wiggle room.
However, don’t expect her to replace her brain in the October budget. 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 take on the role of special advisers on policy 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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For more details on dates and tickets for our tour, https://www. aegpresents. co. uk/event/electoral-dysfunction-live/
Email us at Electiondysfunction@sky. uk, post to X at @BethRigby or send a WhatsApp voice note to 079342444.
By Jennifer Scott, political journalist
The government’s child poverty task force is keen to work as ministers begin to expand a strategy to lift families out of poverty.
But despite the tension within the Labour Party and other parties, it will not remove the debatable cap on allowances for two children.
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 parents can claim child tax credits or universal credits for their first and second children, they cannot claim for any other children they have had.
These are separate bills for family allowances, which do not limit 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 receiving benefits “face the same possible monetary options when it comes to having children as those who only work. ” “.
But opposition MPs and activists said the move would push more young people into poverty and hit families hard.
What does the Labour 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 left due to 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 Labour 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 said they do not like this policy, although it may not achieve anything in the foreseeable future.
Sir Keir Starmer spoke with Chinese President Xi Jinping and discussed “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 UK 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 address 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 cohesive relationship between the United Kingdom and China, adding a discussion between their respective Foreign and Home Ministers.
“They agreed to get in touch. “
The Metropolitan Police has ended its involvement in the investigation of criminals into bets made on election day.
Police had said in the past they were investigating whether a “small number” of bets in the July 4 vote involved more serious crimes, adding to misconduct in public office.
Several Conservatives have taken part in the Gambling Commission investigation, including 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 highest standard for demonstrating misconduct in the public workplace was not met. ”
The investigation continues through the Gaming Commission to determine if violations of the Gaming Law have been committed.
As we reported yesterday, the Liberal Democrats announced that they would be tabling a motion in Parliament asking MPs to recognise the impact of Taylor Swift’s Eras tour on the economy.
He also needs the pop star to get the freedom of London after the conclusion of his 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 is joined by our entertainment journalist Gemma Peplow to learn more about Swift’s appeal and her position in the music industry.
Niall is joined by 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 no homestay, ministerial statements or other usual activities.
And nothing happens 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 holidays turned out to be very busy for the prime minister and his leadership team due to the unrest, even if parliament did not reconvene earlier than expected.
Once Parliament returns on September 2, the next Christmas era will arrive ten days later.
This is for 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 after the Chancellor has ruled out increases in source of income tax, national insurance, and VAT, what can be predicted 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 Secretary Darren Jones before his induction suggests he is in favor of such a change.
Capital tax
This tax is imposed on the profit from the sale of assets.
The government could simply lower the minimum limit or increase the percentage of taxes collected, with some calling for it to be aligned with the revenue source 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.
Trading Fees
This tax is what companies pay as municipal tax on their properties.
Calculations of how much other people pay can be updated to reflect a more current space value situation.
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.
Political journalist Alix Culbertson 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 garnered the required hundred nominations from members and eliminated the festival from fellow MPs Brian Whittle, Liam Kerr and Jamie Greene.
Whittle, Kerr and Greene withdrew from the race and helped Mr Fraser.