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 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 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 adviser 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 about family housing 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 task force on child poverty is at 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 two-child benefit limit 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 who receive 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 the policy when they were in opposition and were expected to abandon it if they came to power.
But last year, Sir Keir Starmer left because of public finances.
The Resolution Foundation said removing the two-child limit would cost the government between £2. 5bn and £3. 6bn, but 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 hinted that they like this policy, although it will materialize 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 defined 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 cohesive relationship between the UK and China, adding to a discussion between their respective Foreign and Home Secretary.
“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 involved in the Gambling Commission’s investigation, including Rishi Sunak’s former parliamentary aide 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 violations of the Gambling Act.
As we reported yesterday, the Liberal Democrats announced that they would be tabling a motion in Parliament calling on MPs to recognise 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 concerts at Wembley 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 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 at the moment.
The House of Commons has been on 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 likely try to take a holiday, although they are still expected to address the issues 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 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 rises 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 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 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.
Commercial rates
This tax is what corporations pay from the housing 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 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 hold a vote among party members to determine who will update current 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 retired from the race and helped Mr. Fraser.