No10 has dismissed claims Rachel Reeves misled the public when she warned of difficult decisions needed to fill a black hole in the public finances.
Grave warnings had been issued ahead of the Budget that the Chancellor could face as much as a £20billion “black hole” in the nation’s finances.
However, a letter from the Office for Budget Responsibility (OBR) published on Friday revealed it told the Chancellor as early as September 17 that prevailing economic winds meant the gap would be much smaller.
It later informed her in October the spending gap had closed altogether.
Conservative leader Kemi Badenoch said the letter showed Ms Reeves had “lied to the public” and should be sacked.
Kemi Badenoch refuses to rule out coalition with Reform in Wales
Kemi Badenoch has opened the door to a potential “local level” coalition with Reform UK in Wales.
The Conservative Party leader was speaking while on a visit to Monmouth.
“I have said at national level, we’re not doing any deals with other parties, But at local level, when people vote, and there is no clear winner, Conservatives will look to see who will help them deliver a Conservative agenda,” she said.
“What does that look like? Lower taxes, getting people into work, making sure we have a growing economy, stronger borders where that is the policy, and controlling crime and the disorder we have in many places,” Ms Badenoch told the BBC.
Polling ahead of next year’s Welsh Parliment elections suggests Reform is likely to finish ahead of the Conservatives.
Responding to the olive branch, a Reform UK spokesman said the Senedd election was a “two-horse race between Reform and Plaid Cymru”.
Sadiq Khan lashes out at ‘desperate’ Nigel Farage amid historic racism allegations
Sadiq Khan has hit out at Nigel Farage | PA
Sadiq Khan branded Nigel Farage as “desperate” over his dismissals of historic racism allegations.
The Reform UK leader has strongly denied claims from former schoolmates that he used racist and anti-Semitic language over 40 years ago.
“While Farage desperately tries to dismiss his actions as the harmless antics of an average teenager, many will disagree, not least his old classmates who remember what happened very clearly,” the London Mayor said.
“They were right to speak out, and Nigel Farage’s refusal to apologise speaks volumes about the character of a man who claims he wants to be the prime minister of this country.
“I’m sure that the multiple reports that Nigel Farage regularly used vile racist and antisemitic language as a London schoolboy will strike a nerve with all those who were on the receiving end of racism growing up.
“Growing up in London in the 70s and 80s, I was no stranger to racist abuse,” the London mayor said. “Those responsible might have thought it was a bit of harmless banter, but I’ll never forget how their words made me feel.”
David Cameon shares ‘disappointment’ with prostate cancer screening plans
David Cameron has shared his “disappointment” over the NHS’s plans to cease routine prostate cancer screening for men aged between 45 and 70 years old.
Last week, the former Prime Minister revealed he had been diagnosed with prostate cancer and urged men to get tested.
Taking to X, Lord Cameron said: “I am disappointed by today’s recommendation on prostate cancer screening from the National Committee.
“Targeted screening is a natural first step – but the recommendation today is far too targeted, not including black men or men with a family history, both high-risk groups.
“Prostate cancer is the most common cancer among British men. We are letting down too many men if we don’t push for a wider screening programme that includes all high-risk groups – and not just the men involved, but their families too, who risk losing a loved one unnecessarily.
“As I know all too well, prostate cancer can be symptomless early on. That’s why screening is so essential – catching the cancers early when they can be more effectively and successfully treated, like in my own case.
“I urge Wes Streeting and the government to be brave and bold on this crucial issue. Make the first step more significant than what’s being recommended.
“Put in place a proper, targeted screening programme that involves all those at higher-risk. Without it, more men will die, more families will lose a loved one. This is avoidable and can be done,” he told The Guradian.
Rachel Reeves accused of LYING over state of UK economy as watchdog admits there was no need for tax hikes
Rachel Reeves has been accused of lying over the state of the UK economy, as a watchdog has admitted there was no need for Wednesday’s radical tax hikes.
The OBR said that it informed the Chancellor in September the supposed “black hole” that she relied on to introduce a flurry of new taxes in the latest Budget, was actually just £2.5billion.
By October 31, this is said to have turned into a net positive of £4.2billion.
Therefore, the OBR is suggesting that the so-called “black hole” Ms Reeves consistently claimed existed and blamed for the near-£30billion in tax hikes, did not even exist.
Instead, the introduction of dozens of new taxes was not to cover for the huge deficit she had supposedly been left with, but to offset the huge welfare costs they were secretly plotting.
Conservative MP Neil O’Brien blasted the revelation, saying: “She lied so that she could produce ‘better than expected’ numbers and say rates were not going up as a budget ‘rabbit’.”
Meanwhile William Yarwood, spokesman for the Taxpayers’ Alliance, said: “Reeves blamed Brexit. She blamed the Tories. She blamed global instability. But she lied.
“These tax rises happened because Rachel Reeves wanted to spend more money, mainly on welfare, in order to appease her backbenchers, all at the expense of ordinary taxpayers.”
Kemi Badenoch pledges to reverse Labour’s ‘bad for jobs’ employment bill
Kemi Badenoch has pledged that a Conservative government would reverse measures in the Employment Rights Bill that were “bad for jobs”.
However, the Tory leader did not explicitly commit to returning the period before an employee can claim for unfair dismissal to two years.
Asked whether she would increase that period if she came to power, Mrs Badenoch told broadcasters: “What I have said is that the things that are in the Bill that are bad for growth, bad for jobs, bad for business, we will scrap them.”
Adding that “quite a lot of the things in (the Bill) are really about unions, giving unions more power”, she said: “This is not what the country needs right now.”
“The reason why the UK is not growing is not because employees don’t have enough rights. We don’t have enough jobs,” the Tory leader added.
UK refuses EU defence demands
The UK have rejected the EU’s demands to pay €6.75 billion (£5.9billion) to join the SAFE defence fund, meaning talks have officially broken down – just before the deadline of the end of November.
EU relations minister Nick Thomas Symonds said: “It is disappointing that we have not been able to conclude discussions on UK participation in the first round of SAFE.
“Negotiations were carried out in good faith, but our position was always clear: we will only sign agreements that are in the national interest and provide value for money.”
The European Commission suggested that talks could resume at a later date, noting that an agreement could not be found “at this time”.
WATCH: Katherine Forster reacts to ‘staggering’ claims Rachel Reeves ‘deliberately misled’ the country
No10 refuses answer whether Rachel Reeves ‘deliberately misled’ the country as OBR suggest no need for tax hikes
A No10 spokesman refused to directly answer whether Rachel Reeves “deliberately misled” the country, after it was revealed the so-called “black hole” of more than £20billion was actually a surplus by October, according to reports.
The Chancellor rose an additional £26billion in taxes in Wednesday’s Budget, citing the “black hole”. Instead, the suggestion is that this was to fund an increase in welfare spending, set to reach £16billion by 2030, and increase her fiscal headroom.
A No10 spokesman said: “What the chancellor set out was that the context the country is facing, and she has set out at the budget that we are delivering on the manifesto to keep taxes low for working people, not to increase main rates of income tax, VAT or NICs [national insurance contributions.
“You saw the OBR, the IMF [the International Monetary Fund], the OECD [the Organisation for Economic Co-operation and Development] , the Bank of England all upgraded their forecasts.
“The chancellor has set out that she is determined to beat those forecasts, we have done that previously and will continue to do so.”
The spokesman was then pushed again on an answer: “The OBR process in terms of the budget is clearly and transparently set out. But what the government sets out at the budget is the decisions it has taken in receipt of those OBR forecasts.”
The spokesman was asked a final time, whether the Chancellor had “deliberately misled” the public: “I don’t accept that.
“She spoke about challenges clearly and at the budget.”
Mel Stride says Rachel Reeves ‘deliberately misled’ the country after bombshell reports
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PA
Shadow Chancellor Mel Stride has hit back at Rachel Reeves, after reports are emerging her story of a “black hole” that led to the tax hikes in the Budget was a falsehood.
Mr Stride said: “We now know the truth. Rachel Reeves spent the months leading up to the budget claiming she would need to make difficult choices because of a downgrade in the economic forecasts that was not of her making.
“She even let it be known she was considering raising income tax rates.
“But as I pointed out in my letter to the OBR last week, Labour’s story did not add up. It was all a smokescreen.
“Labour knew all along that they did not need to raise taxes and break their promises. It was an active choice to do so, to fund a huge increase in welfare spending. The OBR have now made that very clear.
“It appears the country has been deliberately misled.
“In doing so, some people may even have faced higher mortgage rates thanks to the impact on markets from Labour’s chaotic briefings.”
New Culture Forum Founder Peter Whittle Dies Aged 64
New Culture Forum Founder Peter Whittle Dies Aged 64
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PA
Peter Whittle, founder and director of the New Culture Forum, has died aged 64.
“It is with deepest sorrow that we announce the passing of Peter Whittle, founder and director of the New Culture Forum,” the group confirmed on a social media post.
“Peter passed away yesterday evening surrounded by his loved ones. It is hard to overstate the impact Peter and the NCF have had on Britain’s cultural and political landscape since he founded the NCF twenty years ago.
“Peter’s courage, passion, integrity, wit and intellect inspired millions in Britain and around the world to think critically, challenge cultural orthodoxies, and champion free speech.
“The NCF will continue to honour Peter’s vision and values.”
Nothing short of an exodus!’ Workers flee £7.4bn stealth tax as TWO-THIRDS of emigrants are young Britons
Young workers appear to be fleeing the country ahead of a looming stealth tax raid, which was announced by Chancellor Rachel Reeves during her Budget statement earlier this week.
Fresh data shows a sharp demographic shift as 174,000 young Britons aged between 16 and 34 left the country in the 12 months to March, accounting for about two-thirds of all British emigrants.
The figures highlight a growing trend of young adults moving overseas amid wider economic pressures. The youth departure coincides with Chancellor Rachel Reeves confirming a freeze on student loan repayment thresholds that will raise £7.4billion from graduates over the coming years.
This policy keeps the repayment trigger at £29,385 for three years from April 2027, meaning more graduates will begin repayments as wage growth moves their earnings above the unchanged threshold.
France takes major step in plan to crackdown on migrant boat crossings
France takes major step in plan to crackdown on migrant boat crossings
French plans to push migrant boats back to shore have taken a major step forward, according to official sources.
It follows reports in the French press that four key prefectures along the English Channel coast line, have signed an official document, permitting the controversial tactic.
It would allow French marine gendarmes to push migrant dinghies back to the beach in shallow and clam waters.
In a recent leaked letter seen my French newspaper Le Monde, Sir Keir Starmer urged France’s President, Emmanuel Macron, to put the measures in place soon.
Kemi Badenoch defends fiery Budget speech after backlash online
Kemi Badenoch fumed that Rachel Reeves has ‘broken her policies’ | POOL
Conservative Party leader Kemi Badenoch has defended her ferocious speech against Rachel Reeves’s Budget on Wednesday.
Ms Badenoch received a rapture of applause from her own party at the time, who claim it is her best speech in the Commons to date. Some members of the opposition, though, feel she took it a step too far.
However, the Tory leader has now doubled down on her remarks, claiming the Chancellor “started it first”.
Speaking to Nick Robinson on the Political Thinking podcast, Ms Badenoch said: “When I walked in for Prime Minister’s Questions, I thought, ‘Oh my goodness, she looks absolutely broken, this OBR leak must be very upsetting for her, I’ll pull my punches.’
“And then she launched into the most extraordinary tirade against the Conservatives in her own speech. So she started it … And I thought, ‘Well, I’m not pulling any punches now’.”
Ms Badenoch added that “you can’t please everyone” and that she has to deal with “a barrage of abuse every single week at Prime Minister’s Questions”.
WATCH: Bridget Phillipson says Labour want to ‘defy expectation’ despite predictions of ‘dismal’ living standards
Labour MP slams ‘clear breach of manifesto’ as Union boss warns workers could lose ‘trust’
Labour MP Richard Burgon has called his party’s workers’ rights U-turn last night a “clear breach of the manifesto”, warning fellow MPs they must remain “absolutely vigilant”.
“The removal of day one rights on unfair dismissal is bad enough in itself. But big business and the powerful anti-workers’ rights brigade will have scented blood and they’ll now be pushing to dilute this legislation further,” the MP for Leeds East said.
“With multiple consultations still underway on how this legislation will be implemented, the entire Labour movement will need to stay absolutely vigilant to stop any further backsliding.”
Meanwhile, the general secretary of Unite the union, Sharon Graham, told Sky News: “It’s not just day one rights. I mean, there has been a catalogue of watering down of the Employment Rights Bill.
“Fire and rehire is not banned, zero hour contracts are no longer banned, and now we have this move on day one, right.
“This was a manifesto promise, and so the issue here is one of trust.”
State pensions will NOT be taxed while Labour is in power, Rachel Reeves reveals to Martin Lewis
State pensions will NOT be taxed while Labour is in power, Rachel Reeves reveals to Martin Lewis
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GETTY/ITV
Chancellor Rachel Reeves has confirmed older Britons will not need to pay tax on state pension payments for the duration of the current Parliament during an interview with Martin Lewis.
While speaking to the Money Saving Expert founder, the Chancellor reaffirmed that pensioners will not need to fill out a Self-Assessment tax form on their retirement benefits.
However, Ms Reeves suggested the state pension will be completely exempt from tax until at least 2029; which is when the likely next General Election will have to take place.
This comes amid concerns over the growing impact of fiscal drag, which is seeing Britons pulled into higher tax brackets due to rising incomes and frozen HM Revenue and Customs (HMRC) thresholds.
WATCH: Education Secretary Bridget Phillipson refuses to accept Labour’s manifesto promise break
Kemi Badenoch slams ‘humiliating’ workers’ rights bill U-turn: ‘They govern in chaos!’
Conservative Party leader Kemi Badenoch has blasted Labour’s recent “humiliating” Employment Rights Bill U-turn.
She said: “On Monday, I told a conference of Britain’s biggest businesses that Labour’s day one employment rights policy would destroy jobs and drag our country backwards.
“Four days later, and in the aftermath of their disastrous budget, Starmer and Reeves have finally woken up to just how bad these policies actually are.
“This is yet another humiliating U-turn. Labour talk about stability, but govern in chaos. No company can plan, invest or hire with this level of uncertainty hanging over them.”
Ms Badenoch had previously joked that, under the new bill, new employees could lodge a claim with an employment tribunal “before they’ve even worked out where the toilets are!”
WATCH: Shadow Business Secretary Andrew Griffith blasts ‘dishonest’ Labour Budget
Satellites ‘to spy on UK homeowners’ to enforce new Labour tax raid – could YOU be affected?
Satellites ‘to spy on UK homeowners’ to enforce new Labour tax raid – could YOU be affected?
Satellite technology will be used to “spy” on homes targeted under Labour’s “mansion tax” council tax surcharge.
The tax-funded Valuation Office Agency (VOA) will pore through aerial photography to help work out which homes in England are the most valuable.
Using the tech, it will work out which homes could be eligible for the new surcharge – aimed at those worth £2million or more.
The VOA will then pass on that data to the Treasury, so it can better hit homeowners with annual tax bills of as much as £7,500 – where a house’s value is higher than £5million.
WATCH: Shadow Business Secretary Andrew Griffith says Labour’s workers’ rights U-turn is a ‘good outcome’
Cabinet minister says ‘very real prospect’ Employment Rights Bill would have been delayed without U-turn
Cabinet minister Bridget Phillipson said there was a “very real prospect” the implementation of the Employment Rights Bill would have been delayed if the Government had not made a U-turn over day one protections against unfair dismissal.
The Education Secretary told Sky News: “The Employment Rights Bill is the biggest upgrade to workers’ rights in a generation.
“There has been discussion on the point around unfair dismissal and the time period between businesses, the TUC and Government, and following that discussion there’s been agreement about the way forward, which is welcome.
“It means that the time limit will come down from two years to six months, and that runs alongside important day-one rights around sick pay and around parental leave. But the risk here was that if we didn’t make progress, those important rights wouldn’t come into force from April next year.”
Ms Phillipson then insisted that it was not an example of a broken manifesto promise.
“In the manifesto, what we said was that we would work with trade unions, with business, with civil society, in consulting on those protections that we’d be bringing forward,” she added.
“So, there are both parts to that, within the manifesto, the important rights and the consultation.”
Sir Keir Starmer facing pressure after accusations of second manifesto breach
Sir Keir Starmer facing pressure after accusations of second manifesto breach
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PA
Sir Keir Starmer is facing pressure after accusations of two manifesto breaches in as many days as the party abandoned plans to give workers day-one protection against unfair dismissal.
It comes a day after Chancellor Rachel Reeves confirmed an extended freeze on income tax thresholds – something that has been viewed as a clear breach of Labour’s manifesto pledge not to increase taxes on working people.
Ministers have axed the proposal to cut the “qualifying period” for workers to make an unfair dismissal claim from 24 months to the first day in a new job, in a bid to get the legislation through Parliament.
The Government now intends to introduce the right after six months of service instead.
Business Secretary Peter Kyle denied claims on Thursday that it was a breach of Labour’s manifesto, rather a compromise instead, adding that “it’s not my job to stand in the way of that compromise”.
Labour MP for Middlesbrough and Thornaby East, Andy McDonald, branded the move a “complete betrayal” and vowed to push for its reversal.
He said that “we cannot support that halfway measure” adding that it is “a wrong-headed move” that he will “campaign to have reversed.”
Meanwhile ex-employment minister, Justin Madde, said: “It might be a compromise. It might even be necessary to get the Bill passed. But it most definitely is a manifesto breach.”
Labour MP tells GB News benefit claimants WON’T be encouraged to have more children after two-child cap axed
Labour MP tells GB News benefit claimants WON’T be encouraged to have more children after two-child cap axed
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GB NEWS
People on benefits will not be incentivised to have more children after Rachel Reeves scrapped the two-child benefits cap, a Labour MP has claimed.
Gordon McKee, MP for South Glasgow, said the Chancellor’s decision to lift the cap 16 months after seven of his colleagues were suspended for backing it was part of the Government’s “moral mission”.
He was speaking to Chopper’s Political Podcast after posting a video using custard creams and bourbon biscuits to illustrate the UK’s debt crisis, which went viral on social media with millions of views.
Asked by Political Editor Christopher Hope if it would incentivise Britons with two children on benefits “to have a third or fourth or fifth”, Mr McKee replied: “I don’t think people are having kids because they’re getting extra benefits. I just don’t believe that. What I do believe is some kids have been kept in poverty. And because of the decision yesterday from Rachel [Reeves], half a million kids are no longer going to be in poverty.”