Chancellor Rachel Reeves has said she plans to scrap “needless form filling” in a bid to boost business growth.
Speaking at a regional investment summit in Birmingham, the chancellor said the reforms would boost growth and “make the UK a top destination for global capital”.
Ahead of the Budget next month, Reeves acknowledged that “for too many people” the economy was “not working as it should”.
The government has been criticised by firms who say increased employers’ National Insurance contributions and the Employment Rights Bill add to the burdens facing businesses.
The chancellor said the changes will save firms almost £6bn a year by the end of the parliamentary term.
The measures include plans to reform the company merger process. New “simpler corporate rules” will remove requirements for small businesses to submit lengthy reports to Companies House, the Treasury said.
The changes will apply to over 100,000 firms such as family-run cafes.
Earlier on Tuesday, Business Secretary Peter Kyle defended Labour’s approach to business, telling the BBC the government would implement changes in a way that is “pro-worker and pro-business”.
The measures could include temporary exemptions for new AI software from regulation, Kyle told the Today programme.
“In certain circumstances when new AI technology is being developed, we can remove it from all regulation for a period of time to give it the space to really grow, to develop, to be commercialised really rapidly,” he said.
This, he said, would enable the tech to be used “to benefit the health, the wealth, the education of our nations”.
“We’ll use that in a very targeted, a very safe way.”
The government has pledged to reduce the administrative cost of regulation by a quarter by the end of this Parliament.
Kyle said the previous government “did not do enough on deregulation” despite pledging to do so, particularly after Brexit.
“If you look at some of the reporting that needs to be done by directors, for example, directors’ reports to Companies House, I’m eliminating a great deal of that today because some of it is just so unnecessary,” he said.
But pushed on whether the government’s changes to employment rights would add costs to businesses, Kyle insisted that the changes would be fair for both employers and employees.
“We are making sure that the rights and responsibilities that people have in the workplace as employers and as employees [are] right for the age we’re living in.”
Jane Gratton, the deputy director of public policy at the British Chambers of Commerce, said the plans would be welcomed by businesses.
“The burden of unnecessary red tape and bureaucracy ramps up their costs and damages competitiveness,” she said.
Tina McKenzie, policy chair at the Federation of Small Businesses, said Tuesday’s announcement will “ring hollow” if the chancellor raises taxes for employers in next month’s budget.
“The true test of whether Rachel Reeves will deliver for business will be at the Budget – small firms and entrepreneurs have heard these warm words on regulation before.
“The burden of compliance – in terms of money, time, and stress – weighs heavily on small firms, and cutting it needs to be a project undertaken by every part of the government.”
But the Liberal Democrats’ Treasury spokeswoman Daisy Cooper said: “If the chancellor was serious about cutting red tape she would tackle the mind-blowing two billion extra pieces of business paperwork created by Brexit by pursuing an ambitious tailor-made UK-EU customs union.”
IT’S hard to believe, but at the age of 68, Gloria Estefan, one of the biggest-selling and most-celebrated artists of all time, is marking her 50th year in music.
She has had a stellar career, racking up everything from a slew of Grammy awards to the Presidential Medal of Freedom.
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Gloria has recently released her album RaicesCredit: SuppliedThe star with The Sun’s HowellCredit: Supplied
But after her musician daughter Emily performed with Cyndi Lauper at Glastonbury last year, she now has one more thing she wants to strike off her bucket list – a major slot on the prestigious Pyramid Stage.
In an exclusive chat, she told Bizarre’s Howell: “It’s very exciting, big and complex from what I hear from Emily. Like, it was crazy. But that would be super exciting.
“If I’m still around, I would love to do that. Now, Glastonbury likes all kinds of artists.”
With hits like Rhythm Is Gonna Get You, Dr Beat and, of course, Conga, she would have plenty of songs to entertain Worthy Farm.
And she may soon be wowing even more viewers, with a big-budget biopic on the cards.
For the first time, she has confirmed Rachel Zegler, who shot to fame in Steven Spielberg’s West Side Story, Disney’s Snow White and recently in Evita on the West End, is set to play her.
She said: “I think she’s awesome. I think she’s incredible. I know she’s killed it in Evita.
“We’re still working on the green light because we’re figuring out where to do it, how to do it.
“This has been in the works for quite a few years now. And that’s how it is. You work, you work, you work, and then all of a sudden, boom, the trigger’s pulled and you’ve got to do it right away. But she’s lovely.”
But asked if she thinks Rachel will take the part, she continued: “I think she would. I just need to offer her an actual part. So we need to be greenlit completely and we’re almost there.
“I met her by Zoom. She’s got a beautiful singing voice and she’s a great actor. So absolutely.”
It was originally claimed the film will be an adaptation of her 2015 jukebox musical On Your Feet! although that idea has changed.
The star explained: “The movie’s not going to be the show. There’s a lot in there.”
Gloria was born in Cuba but her family fled to the US during the Cuban Revolution and she has now become one of Miami’s most famous residents.
And as one of the city’s stars, she has become pals with David and Victoria Beckham, who have a home there and have become key to the area with Becks’ football team Inter Miami CF.
But it’s clear they all move in the upper echelons when Stateside.
In a major name drop when quizzed on hanging out with them, she said: “I’ve been at their home. It’s lovely. David is such a lovely man – and Victoria.
“We actually went to a dinner at their home and President Obama was there, and the head of Reddit, and Jeff Bezos. It was really cool.
“It was small, but only the most powerful people in that room. It was great.
“They’re very kind people. And he’s done amazing things for soccer or football, as you call it here.”
Gloria pictured in 1989Credit: Alamy
And there have been more Brits in Miami, with Dua Lipa performing there last month, when she covered Gloria’s 1985 hit Conga.
“I was so sad that I wasn’t in town,” Gloria said.
“She had invited me to go and do that with her. And I love her. I’m a big fan of Dua Lipa. And that’s the sexiest conga you’re ever going to see, hands down.”
After such an illustrious career, she recently released her 30th album Raíces, which is largely Spanish-language escapism and the perfect soundtrack for a soiree or relaxing evening in.
And it was her husband of 47 years, producer Emilio, who made it happen.
Gloria, who was writing another musical at the time, explained how the salsa record poured out of him.
She added: “It’s got beautiful, romantic ballads. Emilio said, ‘I wrote you a love song’. I go, ‘Babe, you’re going to sing it?’.
He goes, ‘No, you’re going to sing it for me’.”
Charming.
And as for retirement after five decades in the game? Don’t count on it.
She giggled: “In ten years time, I hope to still be alive. That’s my first plan. Who knows?
“I only choose what I really, really want to give my time to. It’s just that. I had all these amazing opportunities. And they just converged this year.”
The singer has become pals with David and Victoria BeckhamCredit: Getty
Kristen chilled Water
Kristen Stewart showed off a stark fringe and bare legs as she left a screening of her new filmCredit: Splash
KRISTEN STEWART didn’t let the falling temperatures bother her as she headed out in this white mini-dress.
The Twilight actress showed off a stark fringe and bare legs as she left a screening of her new film The Chronology Of Water at the Curzon Mayfair on Thursday night.
It was part of the BFI London Film Festival and the movie, an adaptation of US writer Lidia Yuknavitch’s memoir, is her directorial debut.
Lily ‘cheat’ pain
Singing star Lily Allen is about to make a return with her fifth albumCredit: Getty
LILY ALLEN has confirmed my story that she is about to make a return with her fifth album.
And on it, she seemingly accuses ex-husband David Harbour of cheating on her.
But things crumbled last year, with the relationship inspiring the latest record which is expected to be released imminently.
A new interview with Lily came out in Vogue magazine yesterday.
It features lyrics from two tracks that suggest David romanced other women while they were together and the pair then decided to “open” their marriage.
On one song, Sleepwalking, Lily sings: “You let me think it was me in my head, and nothing to do with them girls in your bed.”
On another, called Dallas Major, she reveals: “You know I used to be quite famous, that was way back in the day.
“I probably should explain how my marriage has been open since my husband went astray.”
And Lily didn’t hold back in her interview, either.
She told the magazine: “I’ve had real problems with my food over the past few years.
She added that during their break-up “it got really, really, really bad”.
Lily, who is sober, said: “The feelings of despair that I was experiencing were so strong.
“The last time I felt anything like that, drugs and alcohol were my way out, so it was excruciating to sit with those [feelings] and not use them.”
KYLIE JENNER says being a pop star is her lifelong dream – despite being mocked this week when she sang on Terror JR’s new song Fourth Strike.
Having just started singing under the name King Kylie, she said: “You know this is my dream. I’ve been talking about this since I came out of the womb… that like I wanted to be a pop star.
“I just never had the confidence or… I think turning 28 just does something to you. Like I’m going to be 30 soon and I don’t want to look back on life and have any regrets.
“This is something I’ve always wanted to try.”
JENNIFER LOPEZ is up for returning to the Super Bowl stage in February – six years after her stellar half-time show with Shakira.
The singer, whose parents are from Puerto Rico, waved the country’s flag during her performance and next year will see rapper Bad Bunny, who is from there, playing the show.
Quizzed on US TV whether they could do something together there, she said there had been “no talk” of a collaboration but that she would be open to it.
She said: “There’s no talk. I have not gotten any calls. So I just want to put the expectation down. But of course if he wanted me to do something, I would definitely do it.”
Crouchy Enter the Dragon
Abbey Clancy and Peter Crouch have been filling their home with pets, pictured with their four childrenCredit: instagram
ABBEY CLANCY and Peter Crouch are slowly turning their home into a zoo – and the next animal they are adding is a bearded dragon.
The couple, who live in Surrey with their four children, already own two dogs, cats and a horse but now they are adding reptiles to the menagerie.
Crouchy says they are getting the reptile, which is native to Australia, because their son is desperate for one as a pet.
As well as the lizard, Abbey wants to also get lambs and chickens.
Peter said: “The more animals the better, apparently. Bearded dragons are next on the horizon. My little boy has wanted one for years. They’re actually all right. I thought it would be a nightmare, but I’ve been down the shop and held them.
“We’re actually going to get one. They grow to be quite big but they’re quite chilled.”
Michael makes big money
MICHAEL McINTYRE’s firm raked in more than £3.2million last year – making him one of the biggest earners on TV.
He had another stellar year presenting Saturday-night series Michael McIntyre’s Big Show and quiz The Wheel.
The comedian’s TV production firm Hungry McBear paid £805,000 in corporation tax in its last financial year up to December 31.
THE chancellor could raise tens of billions from tax reforms that don’t hit “working people”, leading economists have said.
Rachel Reeves is under pressure to fill an estimated £50billion black hole in the public finances ahead of November’s autumn statement.
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Rachel Reeves is under pressure to fill an estimated £50billion black hole in the public finances ahead of November’s autumn statementCredit: Alamy
Westminster is awash with rumours that Labour could extend the freeze on income tax thresholds.
However, critics say this would mean breaking Labour’s manifesto pledge not to increase taxes on “working people”.
But in a new report, the Institute for Fiscal Studies (IFS) urged the Chancellor to resist “half-baked” solutions like “simply hiking rates”.
The IFS Green Budget Chapter report instead urges the chancellor to reform the “unfair” and “inefficient” tax system.
End capital gains tax relief on death
Reeves could scrap capital gains tax relief on death, the report said.
When you sell certain assets – like houses, land or other valuable items – you have to pay a tax on the profit you made on it.
However, there are some important exceptions.
For example, if someone dies and you inherit their asset, you don’t have to pay capital gains tax they would have paid.
But the IFS said Reeves should consider scrapping the relief, raising £2.3billion in 2029-30.
However, families could oppose the measure given Labour is already skimming more revenue off inherited wealth.
The inheritance tax threshold has been frozen at £325,000 since 2009.
And last year, Reeves announced she would extend the freeze until 2030.
Hit taxpayers with a ‘one-off’ wealth tax
Economists and politicians are often divided over whether a wealth tax would work.
Supporters argue that the UK’s richest 1% are wealthier than the bottom 70% – and that a wealth tax would reduce this inequality.
But critics say it would be an administrative nightmare and lead millionaires to leave the country, taking their businesses and tax revenues with them.
But if Labour does reach for wealth in the budget – it should opt for a “one-off” wealth tax, the IFS said.
The think tank argues this is a better option than a recurring wealth tax.
It would work by the government calculating how much people’s total assets are worth and taxing them over a certain threshold.
“An unexpected and credibly one-off assessment of existing wealth could in principle be an economically efficient way to raise revenue,” the IFS wrote.
However, a wealth tax that happened on a regular basis would have “serious drawbacks,” the think tank warned.
Valuing everyone’s wealth every year would be “extremely difficult,” it said.
Moreover, a regular tax could deter the highest tax payers from residing in the UK long-term, potentially hitting overall tax revenues.
But the IFS said that even a “one-off” levy could spell trouble if people don’t trust the government not to come back for more.
The report said: “The potential efficiency of such a tax could be undermined, however, if announcing a one-off tax created expectations of, or uncertainty about, other future taxes.”
Double the council tax rates paid by highest value homes
A new council tax surcharge could raise up to £4.4billion.
Council tax is a local tax on residential properties in the UK, with homes assigned to Bands A to H based on their value.
Bands G and H generally include the highest value homes.
The IFS said doubling the council tax paid by these households could mean a £4.4billion boost.
However, critics already say the council tax system is “unfair and arbitrary”.
As reported by The Sun, families living in modest homes sometimes pay more than those in multi-million-pound mansions.
The root of the problem is simple – council taxbills are not based on what your home is worth today.
Instead, it’s based on its value way back in 1991, when homes were categorised into bands ranging from A to H.
Decades of uneven house price growth mean this once-simple system is now riddled with inequalities.
Moreover, councils set their own tax rates – leading to a “postcode lottery”.
The average Band D council tax in England is £2,280, but councils set their own rates.
For example, in Wandsworth, people pay just £990, while in Nottingham, they pay £2,656.
This means that millions of homeowners pay much less compared to their property’s value than those in poorer areas, according toPropertyData.
Another potential problem is that the extra cash would go to local authorities rather than central government.
Local authorities use council tax to pay for local services like schools, bin collections and libraries.
So to make sure it reaps the benefits of the change, Downing Street could reduce the grants being paid to councils, the IFS said.
The UK government gives councils more than £69billion in funding – a 6.8% increase in cash terms compared to 2024-25.
But councils would likely still fight back against any funding downgrade – with sticky 3.8% inflation already eating into their grants.
Rejig inheritance tax
The IFS admits that changes to inheritance tax could ‘provoke’ strong reactions.
But its report said that the £9billion said annually is ‘modest’ – although high by historical standards.
Reforming death duties to abolish the additional £175,000 tax-free allowance could raise around £6billion, the economists wrote.
“One obvious option would be to increase the rate of inheritance tax from its current 40%,” the economists wrote.
They said an increase of just 1% would raise £0.3billion in 2029–30.
The government could also reduce the threshold at which the tax begins to be paid.
Currently, people can pass on up to £325,000 of wealth tax-free.
Then there’s an additional £175,000 tax-free allowance that can be used only when passing on a primary residence to a direct descendant.
Abolishing the second of these allowances, for example, could raise around £6billion in 2029–30, the IFS said.
Crack down on businesses underpaying their taxes
The think tank has urged Labour to tackle tax non-compliance.
Corporation tax, a tax on company profits, has become increasingly important to the Treasury’s coffers in recent years.
Over the course of the 2010s, revenue averaged 2.4% of national income, rising to 3.3% in 2025–26.
But corporation tax dodging meant 15.8% of liabilities went unpaid in 2023-24, up from just 8.8% in 2017-18.
Small businesses are mainly to blame, the IFS said, admitting that claiming the prize of missing corporation tax “would not be straightforward in practice”.
The think tank added: “More work is needed to understand why so many small companies are submitting incorrect tax returns.
“It is likely that tackling the gap would require targeted compliance activities from HMRC, such as auditing small businesses.”
The IFS also said “more revenue could be raised from corporation tax”.
However, it did warn that, while a 1% increase would raise £4.1billion, there could be adverse consequences.
The authors wrote that investment in the UK could become “less attractive” and reduce future tax yields.
However, critics may argue that any tax hike hitting members of the public – even if targeting inheritance or council tax – will still feel like a broken promise.
What must the chancellor avoid doing?
The personal tax allowance has been frozen at £12,570 since April 2021.
Prime Minister Rishi Sunak announced the freeze would remain until April 2026 and Labour extended it until April 2028.
Extending the freeze on personal tax thresholds including national insurance contributions would raise around £10.4billion a year from 2029-30.
But IFS economists say Reeves must not do this – and instead lift the threshold amid rising inflation.
Extending the freeze would be a breach of Labour’s manifesto pledge not to increase taxes for “working people” which includes income tax, national insurance and VAT, the IFS said.
The report’s authors also said restricting income tax relief on pension contributions would raise large sums but should be avoided.
Currently, when you put money into a pension, the income tax you’ve already paid on that money is essentially returned via a government top-up.
The IFS said restricting relief would be “unfair” to penalise pensions again when pension income is already taxed.
The Chancellor should also resist the temptation to up stamp duties, the IFS said.
The think tank fears it would cause people to avoid selling their homes when they want to – hitting the jobs market and holding back growth.
“Changing rates and thresholds is all very well, but unless the Chancellor is willing to pursue genuine reform it will be taxpayers that shoulder the cost of her neglect,” the report, which forms a chapter in the IFS’s wider budget assessment for 2025, said.
Isaac Delestre, a senior research economist at the think tank and an author of the chapter, said Ms Reeves would have “fallen short” if she reaches for quick revenue without wider reform.
“Almost any package of tax rises is likely to weigh on growth, but by tackling some of the inefficiency and unfairness in our existing tax system, the Chancellor could limit the economic damage,” he said.
What is the Budget?
THE Budget is big news and where you’ll often hear announcements about taxes. But what exactly is it?
The Budget is when the Government outlines its plans for the economy including taxation and spending.
The Chancellor of the Exchequer delivers a speech in the House of Commons and announces plans for things like tax hikes, cuts and changes to Universal Credit and the minimum wage.
At the same time, the Office for Budget Responsibility (OBR) publishes an independent analysis of the UK economy.
Usually, the Budget is a once-a-year event and usually takes place in the Autumn, with a smaller update known as the Spring Statement.
But there have been exceptions in recent years when there have been more updates, or the announcements have taken place at different times, for example during the pandemic or when there is a General Election.
On the day of the Budget, usually a Wednesday, the Chancellor is photographed outside No 11 Downing Street with the red box.
She then heads to the House of Commons to deliver her speech, at around 12.30 following Prime Minister’s Questions (PMQs).
Changes announced in the Budget are sometimes implemented the same day, while others may not have a set date.
For example, a change to tobacco duty usually happens on the same day, pushing up the price of cigarettes.
Some tax changes are set to come in at the start of a new tax year, which is April 6.
Other changes may need to pass through Parliament before coming into law.
Rachel Reeves has said the government is facing difficult choices, as she promised she would not take risks with the public finances.
In her speech at Labour’s annual party conference in Liverpool, the chancellor pledged to keep “taxes, inflation and interest rates as low as possible”.
But hinting at further tax rises in November’s Budget, she said the government’s choices had been made “harder” by international events and the “long-term damage” done to the economy.
Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules.
Pressed over whether she would have to put up taxes in a BBC interview ahead of her speech, Reeves said “the world has changed” in the last year – pointing to wars in Europe and the Middle East, US tariffs and the global cost of borrowing.
“We’re not immune to any of those things,” she added.
If taxes do go up in the Budget, this prepares the ground for the government’s argument for why this is necessary.
Reeves criticised previous Conservatives governments, accusing Liz Truss of sending mortgage costs “spiralling” with her mini-budget.
And in comments that will be seen as a swipe at the Labour mayor of Greater Manchester, Andy Burnham, Reeves said: “There are still those who peddle the idea that we could just abandon economic responsibility and cast off any constraints on spending.
“They are wrong – dangerously so – and we need to be honest about what that choice would mean.”
However, he prompted a backlash from some Labour MPs after he suggested ministers were “in hock to the bond markets” – a reference to the government’s self-imposed rules limiting spending and borrowing.
Reeves also used her speech to criticise Reform UK, which has been topping opinion polls for several months, despite having only five MPs.
Labour has stepped up its attacks on the party at its conference.
“The single greatest threat to the way of life and to the living standards of working people is the agenda of Nigel Farage and the Reform Party,” the chancellor said.
“Whatever falsehoods they push, whatever easy answers they peddle, however willing they are to tear communities and families apart, they are not on the side of working people.”
There was one interruption to her speech, when a protester held up a Palestinian flag, and Reeves told him that Labour was “not a party of protest”. Merseyside Police later said there was “no police involvement”.
Protester with Palestinian flag interrupts Reeves
Coming two months ahead of the Budget, when the chancellor will set out the government’s tax and spending plans, Reeves’s speech was relatively light on policies.
Young people who have been out of a job or education for 18 months will be offered a guaranteed paid work placement, Rachel Reeves is set to announce.
Those who do not to take up the offer could face being stripped of their benefits.
In her speech to Labour’s annual conference in Liverpool, the chancellor will promise “nothing less than the abolition of long-term youth unemployment”.
Reeves is also expected to make the case for a society founded on “contribution”, where “hard work is matched by fair reward”.
In an interview with the BBC, Reeves defended Labour’s record after 15 months in government and highlighted achievements it had made, though she admitted there was “more to do”.
It comes ahead of November’s Budget, with the chancellor under pressure to balance the public finances, while also boosting economic growth.
Reeves said no companies had signed up to the scheme yet as it has not been formally announced, but added that several business organisations had come out in support.
The initiative builds on a “youth guarantee”, announced last November, which promised every 18 to 21-year-old in England access to an apprenticeship, training, education opportunities or help to find a job.
Under the new plans, every young person who has been on Universal Credit for 18 months without “earning or learning” will be offered a guaranteed paid work placement.
Those who refuse to take up the offer without a reasonable excuse will face sanctions such as losing their benefits.
The aim of the placements would be to help people build up the skills to get a full-time job.
An estimated one-in-eight 16 to 24-year-olds are not currently in education, employment or training – around 948,000 people – according to the latest figures.
The numbers hit an 11-year high of 987,000 at the end of last year.
The new scheme will build on existing employment support and work placements delivered by the Department for Work and Pensions.
It will work with private companies, with the government anticipating businesses would cover at least some of the wages for job placements.
Reeves said the scheme would be “backed by government money with some form of subsidy for those work placements”.
The government has not given a figure for the cost of the scheme but it will be funded from existing budgets set out in the spending review earlier this year.
Full details will be in November’s Budget, when the chancellor sets out the government’s tax and spending plans.
Reeves is facing a difficult Budget, with economists warning tax rises or spending cuts will be needed for the chancellor to meet her self-imposed borrowing rules.
Pressed over whether she would have to put up taxes, Reeves told the BBC “the world has changed” in the last year – pointing to wars in Europe and the Middle East, US tariffs and the global cost of borrowing.
“We’re not immune to any of those things,” she added.
The chancellor was also challenged over whether the government would increase VAT.
Labour promised not to increase taxes on “working people”, specifically National Insurance, income tax or VAT, in its election manifesto last year.
Reeves repeated the prime minister’s insistence on Saturday that the commitments in Labour’s manifesto stand.
She said the government had “protected the pay packets of working people and we did not put up the prices in the shops”, adding: “That’s very important to me.”
In her conference speech, the chancellor is expected to say: “I will never be satisfied while too many people’s potential is wasted, frozen out of employment, education, or training. There’s no defending it.
“It’s bad for business, bad for taxpayers, bad for our economy, and it scars people’s prospects throughout their lives.”
She will add: “Just as the last Labour government, with its new deal for young people, abolished long-term youth unemployment I can commit this government to nothing less than the abolition of long-term youth unemployment.”
The announcement was welcomed by the Federation of Small Businesses as “hugely important”.
The group’s policy chair, Tina McKenzie, said: “Reprioritising spending from employment programmes which aren’t working to this type of scheme is exactly the way to get much-needed bang for taxpayer cash.”
She added: “Key to getting the details right is making sure there is a backstop offer to those who are now over-25, particularly those with health challenges; that young people out of work for health reasons are not excluded through misguided double funding rules; and that small businesses are enabled to play a full role in the delivery of the scheme.”
However, there are questions over whether businesses facing pressures including increases in National Insurance Contributions and the National Minimum Wage would be able to take on large numbers of new workers.
In her speech, Reeves will also set out her belief in a “Britain based on opportunity”, where “ordinary kids can flourish, unhindered by their background”.
“I believe in a Britain founded on contribution – where we do our duty for each other, and where hard work is matched by fair reward,” she is expected to say.
It comes after the influential think tank Labour Together published a report last week arguing the government should put the idea of “contribution” – that if you pay in to the system, you should be able to see what you get out of it – at the heart of its agenda.
The chancellor will also pledge to fund a library in every primary school in England.
Around one-in-seven state primary schools in England – roughly 1,700 – do not have a library, according to figures from the National Literacy Trust, rising to one-in-four for disadvantaged areas.
THE Chancellor has been dealt another setback after borrowing hit the highest level in five years, making Budget tax rises “inevitable”.
The Government borrowed more money than expected last month, at £18billion, according to the latest figures from the Office for National Statistics (ONS).
This was £3.5billion more than in August 2024.
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Experts suggest tax rises are inevitable as borrowing soars
The interest on Government debt soared by £1.9billion to £8.4billion, which added to higher spending on benefits and public services.
This offset any boost from the National Insurance Contributions hike, the ONS said.
It marked the highest August borrowing since 2020, significantly overshooting the £12.8billion expected by economists.
The level of government borrowing was £5.5billion higher than the Office for Budget Responsibility forecast in March.
Meanwhile, borrowing for the first five months of the financial year hit £83.8billion.
This was £16.2billion higher than the same period last year and well ahead of the OBR’s £72.4billion prediction.
Martin Beck, chief economist at WPI Strategy, said: “The £10billion buffer the Chancellor pencilled in against her key fiscal rule in March has almost certainly gone.
“That means tax rises in November look inevitable.”
James Murray, Chief Secretary to the Treasury, insisted the Government “has a plan to bring down borrowing because taxpayer money should be spent on the country’s priorities, not on debt interest”.
He added: “Our focus is on economic stability, fiscal responsibility, ripping up needless red tape, tearing out waste from our public services, driving forward reforms and putting more money in working people’s pockets.”
Do you have a money problem that needs sorting? Get in touch by emailing [email protected].
Big business is already warning of the folly of this outdated 1970s-style approach.
Don’t do it, Chancellor.
Labour peer: Lawyer Starmer’s got to get with it, scrap the ECHR and put the navy in the channel – or he’s gone
Action, not talk
NEW Home Secretary Shabana Mahmood says she will not allow migrants to avoid deportation through bogus last minute claims that they are the victims of modern slavery.
She insists these “vexatious” appeals make a mockery of our laws.
FEARS are growing that Rachel Reeves could slap a new tax on people’s homes to replace stamp duty and council tax.
The Chancellor is studying plans for a levy on houses worth over £500,000, according to The Guardian.
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Chancellor Rachel Reeves could slap a new tax on people’s homesCredit: AFP
The paper said the Treasury is looking at a “proportional property tax” which would be paid when owners sell their homes.
It claimed the shake-up could also pave the way for a new local levy to replace council tax, which is still based on 1990s property values.
But Treasury officials last night insisted that while tax reform is being explored, the details – including any threshold or rate – have not been decided.
A Treasury spokesperson said: “The best way to strengthen public finances is by growing the economy – which is our focus.
READ MORE ON RACHEL REEVES
“Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn.
“We are committed to keeping taxes for working people as low as possible, which is why at last Autumn’s Budget, we protected working people’s payslips and kept our promise not to raise the basic, higher or additional rates of Income Tax, employee National Insurance, or VAT.”
Anything above this threshold is charged at 40%, but your tax-free allowance rises by £175,000 if you leave your home to a direct descendant, such as a son, daughter or grandchild.
Currently, pension pots are exempt from inheritance tax – but this will all change from April 2027, when they will suddenly be subject to the 40% levy, following a tax grab announced in last year’s October Budget.
LIVE: Rachel Reeves and BoE governor Bailey speak at Mansion House
The change is expected to increase the number of estates paying death duties from 4% to 9.7%, dragging thousands of people into the tax net.
New analysis by Quilter shows that grieving families could face a nasty bill sting following the changes.
Taxes must rise in the autumn if Chancellor Rachel Reeves is to meet her self-imposed borrowing rules, according to an economic think tank.
The National Institute of Economic and Social Research (Niesr) said the government was on track to miss the target it has set itself by £41.2bn.
It recommended “a moderate but sustained increase in taxes” including reform of the council tax system to make up the shortfall.
The government said “the best way to strengthen public finances is by growing the economy”, but the Conservatives said Labour “always reaches for the tax rise lever”.
When she became chancellor, Reeves set out two rules for government borrowing, which is the difference between public spending and tax income.
The first rule was that day-to-day spending would be paid for with government revenue, which is mainly taxes. Borrowing can only be for investment.
The second rule was that debt must be falling as a share of national income by the end of a five-year period.
Reeves has repeatedly said these rules are “non-negotiable”.
Stephen Millard, deputy director for macroeconomics at Niesr, said Reeves “will need to either raise taxes or reduce spending or both in the October Budget if she is to meet her fiscal rules”.
Niesr argues that raising taxes would help build a “buffer” that would reassure investors about the stability of the UK’s public finances.
That in turn “may reduce borrowing costs” for the government, it said.
Niesr said the £41bn shortfall in the government’s budget was in part due to weakening growth over the past few months, resulting in a lower tax take and higher government borrowing.
But the reversal of welfare cuts, which were originally designed to save £5.5bn a year by 2030, had also had an impact, it said.
The welfare cuts were watered down, following opposition from within the Labour Party, and are now expected to save less than half the original amount.
As a result the chancellor now faced a “trilemma”, the thinktank said, over which of her pledges to fulfill: meeting her spending commitments, her manifesto promises to avoid tax rises on working people, or meeting the limits she has set on borrowing.
One of these commitments will need to be dropped, Niesr concluded, but it said the government should prioritise protecting public expenditure that supports the most vulnerable, while also safeguarding public investment which supports future growth.
Niesr said the government’s other priority should be policies to promote growth and productivity, to boost living standards across the UK.
It said that the living standards of the poorest 10% of the population were now 10% lower than pre-Covid levels.
When Labour came to power a year ago, it said it wanted to make the UK the fastest growing country in the G7 group of nations.
However, the UK had faced trade policy uncertainty and geopolitical risk, as well as domestic challenges, the thinktank said.
Niesr said its analysis suggested the economy would grow “modestly” at 1.3% in 2025 and 1.2% in 2026, placing the UK in the middle of the G7 economies.
Niesr said inflation, the rate at which prices are rising, remained “stubborn” and would be 3.5% this year and 3% next year.
The think tank, which is not affiliated to any political party or movement, did not suggest which taxes should rise or by how much.
However, it added that the government should also consider reducing welfare spending by speeding up plans to help people relying on benefits get into work.
The chancellor should also consider reforming council tax or even replacing it altogether with a land value tax, Niesr suggested.
A Treasury spokesperson said: “As set out in the plan for change, the best way to strengthen public finances is by growing the economy – which is our focus.”
However, shadow chancellor Sir Mel Stride accused Labour of not understanding the economy.
“Experts are warning Labour’s economic mismanagement has blown a black hole in the nation’s finances which will have to be filled with more tax rises – despite Rachel Reeves saying she wouldn’t be back for more taxes,” he added.
Starting July 21, the streaming service will offer its first original program from ABC News with senior political correspondent Rachel Scott and international correspondent James Longman as co-anchors.
The short-form program, called “What You Need To Know,” will be taped each morning and made available to Disney + users on demand starting at 6 a.m. Eastern, ABC News announced Monday.
ABC News international correspondent James Longman.
(Heidi Gutman / ABC)
The title was originally used for the ABC television network’s afternoon edition of “Good Morning America,” now known as “GMA 3.”
The new program is another opportunity for ABC News to reach younger consumers who have abandoned traditional TV for streaming. The news division has its own 24-hour free streaming service, ABC News Live.
“This new effort expands ABC News’ significant footprint on Disney+, allowing us to reach and connect with new and diverse audiences,” ABC News President Almin Karamehmedovic said in a statement.
The program will be a quick-paced compendium with short segments that range from “breaking headlines and the day’s biggest stories to entertainment buzz and viral videos.”
“What You Need to Know” will be the first network anchor role for Scott, a Los Angeles native and rising star within ABC News. Scott, 32, raised her profile during the 2024 presidential campaign when she delivered tough questioning to President Trump at the National Assn. of Black Journalists’ convention in Chicago.
The appearance led to death threats against Scott, who needed security in the days that followed.
Scott was also honored by the White House Correspondents Assn. for her coverage of the assassination attempt on Trump in Butler, Pa.
Longman, 38, has been a foreign correspondent for ABC News since 2017. He will co-anchor “What You Need to Know” from London, where he is based.
Longman, who is gay, has reported on the challenges facing LGBTQ+ people in oppressive regimes around the world.
He recently wrote a memoir, “The Inherited Mind,” which traces the history of mental illness in his family.
Spain were hugely impressive in their 5-0 victory over Portugal. It’s already clear how much better they are this time than they were at the 2022 European Championship, when England beat them in the quarter-finals, and they are only just getting started at this tournament.
Lots of teams have seen changes in personnel since that tournament, and the 2023 World Cup, but none of them have improved to the extent that Spain have.
We saw against Portugal what happens when a team does not adapt at all to the dominant way Spain play – you have to acknowledge you are not going to see much of the ball, sit off them and play on the counter, but Portugal did not really do that and paid the price.
I am not expecting Belgium to make the same mistake, but it is still hard to see them getting anything out of this game. Losing to Italy was a big blow to their hopes of getting out of the group, and this is clearly a much harder task.
Belgium have played Spain four times in the past few months, in the Nations League and in qualifying for these Euros, and lost every time.
A couple of those defeats were heavy ones, but Belgium did cause them a few problems at times too.
I am not sure how close they will get to the world champions this time, but at least they know what to expect.
Best Euros finish: France: semi-finals in 2022. England: winners in 2022
I keep changing my mind about how this game might work out for England, and I am sure that will continue right up until kick-off.
I feel like the Lionesses will probably need to be a little conservative if they are to start the defence of their title with a win, but I can see them keeping a clean sheet if they get things right at the back.
Even in this week’s friendly win over Jamaica, England showed some vulnerability at set-pieces, so they are going to have to tighten up and be sharper in those situations.
England lost two key defensive players, goalkeeper Mary Earps and centre-back Millie Bright, in the run-up to the tournament and while our backline is still at world-class level without them, replacing them has caused some disruption to our defensive unit.
So, I am sure there will still be a few issues that will need to be ironed out as this tournament progresses, but hopefully that won’t cost England any goals or points here.
The key for England winning this game will be them being tight at the back – maintaining possession, controlling the game and reducing the number of mistakes.
If they can do that and also create some chances for our forward line then our attackers are so ruthless, they will take care of the rest.
The UK economy is “beginning to turn a corner”, the chancellor has said, after it grew by more than expected in the first three months of the year.
Rachel Reeves told the BBC the 0.7% growth in the January-to-March period was “very encouraging”.
It was stronger than the 0.6% that analysts had forecast, and was helped by increases in consumer spending and investment by businesses.
The figures mark the period just before the US imposed import tariffs and UK employer taxes increased in April, and analysts warned the strong rate of growth was unlikely to continue.
The Labour government made boosting the economy its top priority when it came to power last year, but its decision to increase employers’ National Insurance (NI) contributions was criticised by many businesses as being anti-growth.
The US import tariffs are also expected to hit growth, with the International Monetary Fund recently downgrading its forecasts for the global economy and UK.
But Reeves told the BBC: “We are set to be the fastest growing economy in the G7 in the first three months of this year.
“We still have more to do,” she added. “I absolutely understand that the cost of living crisis is still real for many families, but the numbers today do show that the economy is beginning to turn a corner.”
Shadow chancellor Mel Stride criticised the rise in employers’ NI payments, calling it a “jobs tax”.
“Labour inherited the fastest-growing economy in the G7, but their decisions have put that progress at risk,” he said.
Liberal Democrat Treasury spokesperson Daisy Cooper said the data was “positive news”, but there was “no time for complacency”.
Reform UK deputy leader Richard Tice MP said: “We are yet to see the impact of Rachel Reeves’ April tax rises on growth, it won’t be pretty.”
The economy grew by 0.2% in March, the ONS said, which was also better than the zero growth that had been forecast.
Liz Martins, senior UK economist at HSBC, told the BBC’s Today programme she was feeling “quite cheered” by the figures.
The economy had grown strongly in February, which had been put down partly to companies ramping up output and exports ahead of US tariffs.
But Ms Martins said the latest figures indicated growth had been “driven by the good stuff”.
“Business investment is up nearly 6% on the quarter and the service sector is doing well as well.
“So it’s not just manufacturers selling to the US to get ahead of the tariffs.”
However, Paul Dales at Capital Economics was more sceptical, saying the latest growth “might be as good as it gets for the year”.
He said the strong rise in GDP was “unlikely to be repeated as a lot of it was due to activity being brought forward ahead of US tariffs and the rise in domestic businesses taxes”.
Simon Pittaway, senior economist at the Resolution Foundation, also said the growth rebound was “unlikely to last, with data for April looking far weaker, and huge tariff-shaped clouds hanging over the global economy”.
Annabel Thomas says her company will absorb US tariffs
Annabel Thomas, chief executive of the Nc’nean Whisky Distillery based in Scotland, says she is “reasonably confident” about prospects for the UK.
UK interest rates are expected to fall further this year, “and that really affects the money people have in their pockets,” she said.
The business has a growing customer base in the US, and so decided to take the hit from the trade tariffs themselves.
“We would absorb the tariffs and keep our prices stable in the US,” she said.
John Inglis says his firm is “holding fire” on decisions
John Inglis is the founder of diamond tool manufacturer Exactaform, which employs 100 people and has a factory in the US, and says it is currently very difficult to make decisions over the future of the business.
“We’ve got tariffs. We don’t know where, which way we’re going – 10% off a margin is quite a lot.”
He said they were reluctant to move their production to America as they would be “putting UK people who have been very loyal to us out of work and nobody wants to do that”.
As for the rise in employers’ National Insurance, he said he did not mind “putting in extra… but it’s all niggling away at the profit you need to expand”.
“It’s the way it is at the moment. We’re holding fire [on decisions] because if you make the wrong decision now, everybody’s out of a job.”
A BELOVED department chain is preparing to shut its final store this month as it launches a “Rachel Reeves closing down sale.”
The famous shop will be shuttering forever after serving customers on the high street for 140 years.
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The iconic department store Beales will be shutting is last storeCredit: Getty
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Beales in Poole’s Dolphin Centre is offering 80 per cent off its stockCredit: BNPS
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The site has named the offer a ‘Rachel Reeves’ closing down sale’Credit: FACEBOOK – BEALES POOLE
Beales in the Dolphin Centre in Poole will close on May 31 and is slashing the price of stock by 80 per cent in the meantime.
The historic chain was founded in Bournemouth in 1881 and offers a range of iconic products, including clothing, home goods, and more.
This particular Poole Beales branch was the last one standing when the company collapsed into administration in January 2020, leading to the closure of its 22 other stores.
Despite the stores resilience, the brutal budget introduced last year saw the hike of National Insurance which has forced countless shops to close.
To mark the occasions, the store’s Facebook page is advertising a “Rachel Reeves‘ Closing Down Sale,” featuring discounts of up to 80% and a caption cheekily thanking the Chancellor for “the help.”
It wrote in the caption: “Our closing sale is almost over (cheers for the help, Chancellor) – and we’ve just dropped hundreds of lines to 80% OFF or more!
“Grab a bargain before we vanish into the budget black hole. #FinalSale #80Off #LastChance #WhenItsGoneItsGone.”
Despite weathering the storm for the past five years, it seems the Chancellor’s latest Budget changes have delivered the final blow to the struggling chain.
Beales chief executive Tony Brown previously told The Telegraph the business had become “unviable” following the Chancellor’s announcement of increases to the minimum wage and national insurance contributions in the October Budget.
Announcing the closure, Mr Brown said: “This, combined with the risks and uncertainty of further tax increases in the coming years, has left us with no alternative.
Beloved pizza chain to close down for good in just weeks after 54 years
“We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.
“Our team has been informed, as have our suppliers.
“We will ensure the exit is managed and no one will be left with a financial loss.”
Shoppers were left heartbroken by the news of the store’s impending closure, with one commenting on the latest post: “I’ve loved shopping here over the years.”
Another wrote: “Sadly this is happening to many shops.”
Like many businesses, Beales now faces higher employer national insurance contributions, which have risen from 13.8% to 15%.
Additionally, the threshold at which these contributions must be paid has been lowered from £9,100 to £5,000.
At the same time, the national minimum wage saw a notable increase, rising to £12.21 per hour. For workers aged 18-20, the minimum wage increased by £1.40 to £10 per hour.
Founded in 1881, Beales once boasted a proud portfolio of 41 department stores in market towns across the UK, offering everything from furniture and fashion to toys and cosmetics.
The retailer’s decline has been gradual but unrelenting.
With the closure of the Poole branch, the last remaining link to the Beales name, a once-iconic fixture of the British high street, will vanish forever.
DEATH OF THE HIGH STREET
Retailers have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.
High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.
However, additional costs have added further pain to an already struggling sector.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.
Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.
“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”
Why are retailers closing shops?
EMPTY shops have become an eyesore on many British high streets and are often symbolic of a town centre’s decline.
The Sun’s business editor Ashley Armstrong explains why so many retailers are shutting their doors.
In many cases, retailers are shutting stores because they are no longer the money-makers they once were because of the rise of online shopping.
Falling store sales and rising staff costs have made it even more expensive for shops to stay open.
The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April 2025, will cost the retail sector £2.3billion.
At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.
In some cases, retailers are shutting a store and reopening a new shop at the other end of a high street to reflect how a town has changed.
The problem is that when a big shop closes, footfall falls across the local high street, which puts more shops at risk of closing.
Retail parks are increasingly popular with shoppers, who want to be able to get easy, free parking at a time when local councils have hiked parking charges in towns.
Many retailers including Next and Marks & Spencer have been shutting stores on the high street and taking bigger stores in better-performing retail parks instead.
In some cases, stores have been shut when a retailer goes bust, as in the case of Carpetright, Debenhams, Dorothy Perkins, Paperchase, Ted Baker, The Body Shop, Topshop and Wilko to name a few.
What’s increasingly common is when a chain goes bust a rival retailer or private equity firm snaps up the intellectual property rights so they can own the brand and sell it online.
They may go on to open a handful of stores if there is customer demand, but there are rarely ever as many stores or in the same places.
The Centre for Retail Research (CRR) has warned that around 17,350 retail sites are expected to shut down this year.
