Tax increases and spending cuts are expected in the autumn budget, as the chancellor continues to claim that the Labour Party has earned a “disastrous legacy” from the Conservatives.
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 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 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.
Don’t expect her to replace her brain in October’s budget, though. There will be more bad news to come.
Read my full review 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 about family housing and discuss political messages about the economy.
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By Jennifer Scott, political journalist
The Government’s task force on child poverty is working 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 limit on advantages 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 while parents can claim child tax credits or Universal Credit bills for their first and second child, they can claim for any other children they have had.
These are separate family allowance bills, 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 Labour 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. 5 billion and £3. 6 billion, but the charity Save the Children estimated the move would lift half a million children out of relative poverty.
Seven Labour MPs paid the price 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 to Chinese President Xi Jinping and discussed “national security, border security and economic stability”.
In a statement, Downing Street said the minister defined his government priorities before discussing “potential spaces of 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 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 consistent relationship between the UK and China, adding to the discussion between their respective Foreign Ministers and House of Representatives.
“They agreed to get in touch. “
The Metropolitan Police has ended its involvement in the investigation of criminals into bets made 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 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 Gambling Commission into any violation of the Gambling Act.
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.
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 United Kingdom could have benefited from a £1 billion increase.
In this episode, Niall Paterson joins through our entertainment journalist 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 no homestay, ministerial statements or other usual activities.
And there is nothing in the House of Lords either.
This is a time when MPs would possibly try to take a vacation, although they are still expected to address the problems of their electorate.
Of course, this year’s summer break turned out to be very busy for the prime minister and his leadership team due to the unrest, even if the parliament did not convene earlier than expected.
Once Parliament returns on September 2, the next Christmas era will arrive ten days later.
It’s convention season, when parliamentarians will be spread 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 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 floor or increase the percentage of taxes 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 Labor said before the election it would replace council tax pooling, 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 the volume of transactions 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 conduct a poll among party members on who will update outgoing 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.