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 offer 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’m told it will be dark.
However, it should be clear that there is another way for the Chancellor to create more room for manoeuvre in relation to her budgetary rules, namely to replace the specific measure in relation to which she considers this room for manoeuvre.
Many economists claim that the net debt statistic it inherited from the Conservatives is incorrect for use in its budget regulations, and that it deserves to use the country’s overall national debt, without excluding any debt held through the Bank of England.
Simply put, if she’s this other metric (and I’m told that’s all she’s considering), then she suddenly has 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 listener questions from former Labor MP and 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 about family housing and discuss political messages about the economy.
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By Jennifer Scott, Political Journalist
The government’s working group on child poverty is working as ministers begin to scale up 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 child, 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 lawmakers and activists said the measure would push more young people into poverty and hit families hard.
What does the Labor Party think about this?
Labour harshly criticised 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 because of public finances.
The Resolution Foundation said abolishing the two-child limit would cost the government between £2. 5bn and £3. 6bn, but charity Save the Children estimated the move would lift half a million children out of 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 hinted that they like this policy, although it will be finalized in the foreseeable future.
Sir Keir Starmer spoke to Chinese President Xi Jinping and discussed “national security, border security and economic stability”.
In a statement, Downing Street said the minister outlined 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 that 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 the general election day criminal investigation.
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 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 Liberal Democrats announced they would table a motion in Parliament asking MPs to recognize the impact of Taylor Swift’s Eras tour on the economy.
He also needs the pop star to get freedom from London after the conclusion of his concerts at Wembley 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 reporter Gemma Peplow to find out 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 on summer recess since July 30 and will continue until September 2.
This means that there will be no family accommodation, ministerial declarations or other usual activities.
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 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 recess will come ten days later.
It’s party 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 sources of income tax, national insurance and VAT, what can be planned for an increase?
Inheritance Tax
One of the top taxes will likely increase: the threshold could be reduced to £325,000 if a user dies, or other people could pay more than 40% on some inheritances.
A leaked recording of Treasury Minister Darren Jones joining the government suggests he is in favour of such a change.
Capital levy
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 replace the council tax pool, 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 paid on homes over £250,000, which refers to temporary homes.
Changing this can simply increase the volume of transactions and raise more money.
Alix Culbertson, political journalist, discusses the topic of taxes in more detail in the following article:
Three MPs will face off in the Scottish Conservative race.
Russell Findlay, Murdo Fraser and Meghan Gallacher will now conduct a poll among party members on who will update outgoing leader Douglas Ross.
The trio secured the required one hundred member nominations and saw off fellow MPs Brian Whittle, Liam Kerr and Jamie Greene at the festival.
Whittle, Kerr and Greene withdrew from the race and helped Mr Fraser.