Budget 2024 latest information: Rachel Reeves admits tax rises will impact wage increases for workers

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Robert Jenrick calls Rachel Reeves a ‘compulsive liar’ after Budget announcement

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Chancellor Rachel Reeves has admitted that her £40bn tax-raising Budget might impact wage development for workers.

Asked in regards to the penalties of increasing nationwide insurance coverage contributions for employers she informed BBC Breakfast: “I said that it will have consequences.

“It will mean that businesses will have to absorb some of this through profits and it is likely to mean that wage increases might be slightly less than they otherwise would have been.

“But, overall, the Office of Budget Responsibility forecast that household incomes will increase during this Parliament.

“That is a world away from the last Parliament, which was the worst Parliament ever for living standards.”

Ms Reeves acquired a fine addition from Washington-based think-tank the IMF which is supportive of the Budget, with a spokesman welcoming the rise in funding and spending on public companies in addition to “sustainable” tax rises.

However, IFS director Paul Johnson warned that Ms Reeves must increase tax rises additional within the coming years and stated her spending plans had been nearly as implausible as her predecessor Jeremy Hunt.

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Catastrophic price of Brexit on UK commerce revealed in stark OBR warning

Brexit is on track to chop UK commerce by 15 per cent, the federal government’s unbiased monetary watchdog has warned.

Vote Leave campaigners argued that British commerce would obtain a lift from exiting the European Union within the run as much as 2016’s referendum.

But in paperwork printed alongside Rachel Reeves’ Budget the Office for Budget Responsibility (OBR) stated that “weak growth in imports and exports over the medium term partly reflect the continuing impact of Brexit, which we expect to reduce the overall trade intensity of the UK economy by 15 per cent in the long term.”

The figures led to claims that Brexit was the “elephant in the chancellor’s study”.

Joe Middleton31 October 2024 08:57

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IMF endorses Reeves tax rises and give attention to funding

The International Monetary Fund (IMF) endorsed the funding and spending on public companies within the chancellor’s Budget, in addition to sustainable tax rises.

In an uncommon transfer, the Washington-based watchdog stated: “We support the envisaged reduction in the deficit over the medium term, including by sustainably raising revenue.”

Joe Middleton31 October 2024 08:54

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Watch: Robert Jenrick calls Rachel Reeves a ‘compulsive liar’ after Budget announcement

Robert Jenrick calls Rachel Reeves a ‘compulsive liar’ after Budget announcement

Joe Middleton31 October 2024 08:49

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Reeves admits tax rises will impact wage increases for workers

Businesses will have to soak up the prices of paying extra nationwide insurance coverage and this will likely end in smaller pay rises, Rachel Reeves has acknowledged.

Asked in regards to the penalties of accelerating nationwide insurance coverage contributions for employers by 1.2 proportion factors to fifteen% from April 2025, the Chancellor informed BBC Breakfast: “I said that it will have consequences.

“It will mean that businesses will have to absorb some of this through profits and it is likely to mean that wage increases might be slightly less than they otherwise would have been.

“But, overall, the Office of Budget Responsibility forecast that household incomes will increase during this Parliament.

“That is a world away from the last Parliament, which was the worst Parliament ever for living standards.”

Joe Middleton31 October 2024 08:48

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Taxes will should rise additional regardless of Reeves’ £40bn tax seize, IFS director warns

Rachel Reeves will have to lift taxes additional within the coming years regardless of her Budget on Wednesday containing £40bn of tax increases, a prime economist has warned.

The chancellor has pencilled in spending plans nearly as implausible as her predecessor Jeremy Hunt, in line with the top of the Institute for Fiscal Studies (IFS).

Rachel Reeves has hit again at criticism, insisting that public companies within the UK “needed an immediate injection of cash” and identified that the International Monetary Fund (IMF) has backed her Budget.

She stated: “I do own the decisions I took yesterday. They were the right ones to protect public services and the standard of living of people in this country. I had to make difficult choices but that was necessary to start to rebuild our country.”

Joe Middleton31 October 2024 08:46

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Morning

Hello and welcome to our dwell weblog masking the aftermath of chancellor Rachel Reeves historic Budget on Wednesday. We will be bringing you all of the latest response from Westminster and past.

Joe Middleton31 October 2024 08:46

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