Tax increases and spending cuts are expected in the autumn budget as the chancellor continues to claim that Labour has gained 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’ve been told it’s going to be dark.
However, it should be clear that there is another way in which the Chancellor can create more 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 she’s 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 cast themselves in the role of special advisers on policy and talk about whether devolved 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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Email us at Electiondysfunction@sky. uk, post it in X on @BethRigby, or send a WhatsApp voice note to 07934 two hundred 444.
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 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 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 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 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 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 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 with 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 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.
In the past, police said 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 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 Gaming Commission to determine if violations of the Gaming Law 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 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 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 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 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 the party’s convention season, where MPs will be spread across the country for some of the biggest occasions on the political calendar.
Our economics and knowledge editor, Ed Conway, warned that there would be “a lot of bad news” in the fall 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 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 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 not 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 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 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 each other in the Scottish Conservative race.
Russell Findlay, Murdo Fraser and Meghan Gallacher will now poll party members on who will upgrade 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 retired from the race and helped Mr. Fraser.