UK government borrowing blows past estimates on Labour’s spending plans May 22, 2025 Government borrowing spiked in April, official data has shown, reflecting Rachel Reeves’s difficulties in controlling public finances. The rise to £20.2bn in monthly borrowing was more than economists’ prediction of £18bn. Capital Economics suggested that the rise in borrowing costs since March via debt interest payments has slashed Reeves’ headroom down to £5.7bn. Tax receipts [...]
Starmer refuses to rule out further tax rises May 21, 2025 The Prime Minister has refused rule out further tax rises when challenged by Tory leader Kemi Badenoch during Prime Minister Questions. The fiery exchange came after it was revealed that Deputy Prime Minister Angela Rayner pushed for a £4bn tax hike on wealthier people in the lead up to the Spring Statement earlier this year. [...]
Reeves warned against bank tax raid May 21, 2025 Rachel Reeves has been warned of the growth consequences of upping tax on lenders after a leaked memo from Angela Rayner called for the Chancellor to launch a cash grab on banks. Reeves was sent a memo by the Deputy Prime Minister ahead of the spring Statement, which called for an annual £700m hike on [...]
Government U-turns on winter fuel allowances May 21, 2025 Keir Starmer plans to soften the government’s stance on winter fuel allowances in a major U-turn after restrictions on the payments sparked a backlash from pensioners. During Prime Minister’s questions, the Prime Minister said the government wants to “ensure that as we go forward, more pensioners are eligible for winter fuel payments,” as part of [...]
SSE cuts investment and warns it won’t meet 2030 net zero goal May 21, 2025 SSE, one of the UK’s biggest energy companies has said it is unlikely to meet its 2030 renewable goal in the latest blow to the government’s net zero plans. SSE said it decided to cut capital investment by as much as £3bn over the next five years, citing macroeconomic uncertainty and planning obstacles. The Perth-based [...]
Angela Rayner pushes for tax hikes on savers, in split with Reeves May 21, 2025 Angela Rayner reportedly pushed for a £4bn tax raid on wealthier Brits in the lead up to the Spring Statement, in signs of a senior Cabinet level split on economic policy. According to a leaked note reportedly seen by The Telegraph, the Deputy Prime Minister lobbied the Chancellor to introduce billions of pounds of taxes [...]
Reeves’ taxes push inflation to 3.5 per cent in ‘Awful April’ May 21, 2025 Inflation bounced back up to 3.5 per cent in April, official data has revealed, underlining the cost burden firms are taking on after Chancellor Reeves’ tax hikes on employers and rise to the national living wage came into effect. Consumer price inflation rose by 1.2 per cent on a month-on-month basis, higher than the last [...]
Reeves takes comfort in the promise of future growth May 21, 2025 The government is having a good week. The Prime Minister, in particular, has a spring in his step following his UK-EU ‘reset’ summit. Addressing MPs in the House of Commons yesterday he seemed to have grown taller. True, it only takes a glance at pictures from last week of Starmer meeting Albania’s 6ft 7in leader [...]
‘Banter ban’ debate rages in House of Lords May 20, 2025 A House of Lords debate on the details of the Employment Rights Bill sparked a row over ‘cancel culture’ on Monday after members took sides on a clause dubbed the “banter ban.” The debate hinged on the definition of “third party harassment” and on whether employers should face a legal duty to protect staff from [...]
Starmer and Badenoch face off over EU deal May 20, 2025 Prime Minister Keir Starmer has defended his EU ‘reset’ deal in the House of Commons amid criticism from opposition MPs that the pact unpicks Brexit and sells out the fishing industry. Starmer told MPs that businesses’ reaction to the EU deal was so supportive that he didn’t “have time to run through the list” of [...]