Rachel Reeves' massive spending review only points to more tax rises and pain for voters in the future
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WHAT a difference a year makes.
Last July, Rachel Reeves was busy talking down the economy and slashing winter fuel payments for pensioners to fill a budget 'black hole'.
Yesterday, she insisted the country's foundations had now been miraculously fixed by Labour.
So much so that she could go on a massive spending splurge, including £113BILLION on capital projects and more money for an unreformed NHS.
Defence gets a long overdue uplift — albeit to less than the level demanded by Nato.
Creaking local transport networks will be improved (no doubt to counter the threat of Reform in the Red Wall). Some £39billion will go on more affordable homes.
But there was also plenty of political smoke and mirrors. The Home Office — while getting a wedge of cash to shore up our porous borders — was starved of sufficient funds for policing. Council tax rises beckon.
Most worryingly it's far from clear how the Chancellor is planning to pay the massive overall bill.
Not least because the economy is — in reality — in a far worse condition than last year.
Le copout
THE Government says it will end free hotels for illegal migrants by 2029.
Even in the unlikely event that target is met, it means taxpayers forking out billions on hotel freebies for another FOUR years.
After that, many young, male illegal immigrants will probably be moved to unsuitable rented accommodation with families living next door.
We don't doubt Home Secretary Yvette Cooper wants to stop the boats.
But with friends like the French police — who needs enemies?
Just yesterday they were shrugging on the beach as boatloads of migrants set sail for Dover.
Soft Rock
AFTER the grubby deal to give away the Chagos Islands, Labour has now begun the sellout of Gibraltar.
In one more stunning failure of negotiation, Foreign Secretary David Lammy has limply agreed to effectively hand over control of its borders.
Yet another unnecessary concession to Europe which allows Spanish workers free movement to Gibraltar. Spain has long coveted the outcrop and will be cock-a-hoop at this self-inflicted weakening of British sovereignty.
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Daily Mail
13 minutes ago
- Daily Mail
So what's there to high-five about now, Ms Reeves? Critics blast Chancellor's tax and spend plans - as it emerges the economy SHRANK by 0.03 per cent
Rachel Reeves ' plan to renew the British economy was left in tatters yesterday after figures revealed it was slamming into reverse. The Office for National Statistics said gross domestic product shrank by 0.3 per cent in April – the worst monthly performance for a year and a half. It came less than 24 hours after the Chancellor declared that only Labour could fix Britain as she set out the Government's spending plans. Yesterday she admitted that the latest numbers were 'clearly disappointing'. Yet much of the blame for the slump was laid squarely at her own door – with firms pointing to the impact of Ms Reeves' £25billion raid on employer national insurance. Donald Trump 's tariff wars and the end of a stamp duty holiday also took their toll. It added to the growing sense of disenchantment with Labour's handling of the economy as firms also face higher business rates and a raft of new workers' rights. The figures will knock the wind out of the Chancellor's sails after the UK had appeared to enjoy a much brighter start to the year, with GDP growing by 0.7 per cent in the first quarter – the fastest pace among the G7 group of advanced economies. Tory business spokesman Andrew Griffith said: 'It's bad news that growth has fallen but when you introduce a £25billion jobs tax, hike business rates, drive investors overseas and spawn hundreds of pages of red tape, lower growth is precisely what you get. 'You can't tax and spend your way to growth. The quicker this socialist Government wakes up to that, the better.' Separate figures today from the Recruitment and Employment Confederation showed the number of those seeking jobs has seen the biggest increase in four and a half years, as redundancies surge and work opportunities shrink. And evidence mounted that entrepreneurs are becoming fed up with Labour's anti-business policies, as a survey from accountancy firm S&W showed 39 per cent were considering moving their companies abroad because a lack of support. It came as Tesco, Britain's biggest supermarket, said costs being piled on to it by the Government were resulting in higher prices for consumers. 'There are definitely continued inflationary pressures on the market,' said chief executive Ken Murphy. 'I think you've got to look at things like the impact of all the new taxation and regulatory costs on the industry.' The downturn in April was the worst since October 2023 and bigger than the 0.1 per cent contraction expected by economists. The figures covered a period when President Trump introduced his 'Liberation Day' tariffs that caused a wave of market turbulence and upended decades of global trading arrangements. They showed a £2billion slump in UK goods exports to the US, the biggest fall on records going back to 1997. There was also a big drop in output from the car industry – one of the sectors worst affected by tariffs. And the end of the stamp duty holiday took its toll as a surge in market activity at the start of the year, as buyers rushed to beat the deadline, screeched to a halt. The deteriorating picture will only add to fears that the Chancellor will raise taxes again this autumn. It follows figures earlier this week showing the economy has lost more than a quarter of a million jobs since her last Budget. Suren Thiru, of the Institute of Chartered Accountants in England and Wales, said: 'These figures suggest that the UK's economic fortunes took a notable nosedive in 'Awful April'. 'April's decline is probably the start of a more sobering period for the UK economy with the damage from spiralling costs and intensifying global uncertainty set to slow growth sharply this quarter. Weaker growth makes generating the revenue Government needs to support its sizable spending plans more difficult, increasing the chances of further tax rises in the autumn Budget.'
South Wales Argus
14 minutes ago
- South Wales Argus
Rhianon Passmore MS welcomes rail funding from UK Government
This plan will encompass the construction of new railway stations at the following locations: Newport West, Somerton, Llanwern, Magor & Undy and Cardiff East. This development is welcome news for Welsh jobs and transport. The railway line and service connecting Ebbw Vale to Newport and Cardiff has been recognised as crucial rail infrastructure for Southeast Wales. This expansion will further enhance this infrastructure, providing more individuals with the opportunity to utilise rail services. In addition to rectifying the inadequacy of HS2 consequential funding, this investment will significantly enhance transport options in Southeast Wales. This is particularly pertinent given the congestion experienced on the M4 and escalating demands on the local transport infrastructure because of much-needed housing. This significant development has the potential to influence employment opportunities and provide increased avenues for skill acquisition. This is imperative for Gwent communities. It was critically important news that the United Kingdom Government announced it was restoring winter fuel allowance payments to more than nine million pensioners across Wales and England. The payment worth £300 will be restored. Anyone with an income of under £35,000 a year will receive it automatically. Those with an income of above the £35,000 threshold will also receive the payment, but it will then be reclaimed from them in tax. The right thing to do. Rachel Reeves has announced that the United Kingdom Government will deliver to Wales £118 million over the next three financial years to keep coal tips safe across Wales. This is a particular issue for post-industrial communities throughout Islwyn. Coal tips remediated (as coal mining ended) face maintenance issues impacted by climate change. The Welsh Government has previously stated £600 million is needed to remediate and remove Wales's coal tips. Currently, Wales has around £221 million allocated to this endeavour, and it is a challenge that will take decades to address. My position though, remains clear. Whilst we aim to remediate and remove historic Welsh coal tips, this can NOT be achieved at the expense of Islwyn communities. I stand with the people of Cwmfelinfach in expressing my strong opposition to the removal of coal at Mynydd Y Grug in Bedwas. No private company should seek to make a financial gain at the detriment of the public usage of the much-loved and valued Sirhowy County Park. Finally, I was delighted to see a famous son of Islwyn recognised. Rugby legend John Dawes, a son of Abercarn, is among 288 people who have been added to the Oxford Dictionary of National Biography. John Dawes died in 2021, but his name will live forever, and his inclusion in this prestige publication acknowledges his impact within the history of the United Kingdom. Rhianon Passmore, Member of the Senedd for Islwyn.
South Wales Guardian
17 minutes ago
- South Wales Guardian
Badenoch to call for end to oil and gas windfall tax and ban on new licences
The energy profits levy was put in place under the previous Conservative government but extended when Labour entered power. Designed to fund interventions to bring down household bills, the policy has been criticised by those in the industry. Speaking at the Scottish Conservative conference in Edinburgh on Friday, Mrs Badenoch is expected to tout the oil and gas sector, accusing the UK Government of 'killing' it, claiming 'renewing our party and our country means standing up for our oil and gas industry'. She will add: 'When the oil and gas windfall tax, the energy profits levy, was brought in, the oil price was near a historic high, at the exact time as energy bills for the British people were sky-rocketing. 'But there is no longer a windfall to tax. It has long gone. And the longer this regressive tax on one of our most successful industries remains, the more damaging it becomes. 'Labour have extended and increased this tax. They are killing this industry.' If the measure remains in place to 2030 as intended, Mrs Badenoch will say 'there will be no industry left to tax'. She will add: 'So, today, I say enough. Labour must remove the energy profits levy. Labour must speed up the process of replacing it with a system that rewards success and incentivises investment. 'Because we shouldn't have this energy profits levy at all. 'We must scrap the ban on new licences. 'We must overturn the ban on supporting oil and gas technology exports. 'And we must champion our own industry. 'We must let this great British, great Scottish industry thrive, grow and create jobs – ensuring our energy security for generations to come, driving growth and making this country richer in the process.' Mrs Badenoch will address her first Scottish party conference as leader on Friday while her counterpart north of the border Russell Findlay will deliver his inaugural address on Saturday. Responding to Mrs Badenoch, Simon Francis of the End Fuel Poverty Coalition said her comments were 'out of touch', adding: 'Even with the windfall tax in place, the energy industry made over £115 billion in profits in 2024 alone. 'Meanwhile, average household energy bills remain hundreds and hundreds of pounds higher than they were before the energy crisis started. 'While the Government is right to be consulting on reform of the windfall tax, maintaining a profits levy could help fund home upgrades and a social tariff which would bring down energy bills for the most vulnerable in society.' SNP MSP Kevin Stewart said: 'The Tories wrecked our economy, presided over soaring household bills and ripped Scotland from the EU against our will. 'And now they're lurching further to the right as they haemorrhage votes to Nigel Farage. 'This weekend will be an important reminder of how Westminster has failed Scotland. Only the SNP is offering hope and a brighter future as an independent nation.' Scottish Labour deputy leader Jackie Baillie said: 'While the Tories and SNP let energy workers down by failing to plan for the future, Scottish Labour is committed to taking action towards reaching net zero, creating jobs and cutting energy bills. 'The Tories are on the side of oil and gas giants rather than working Scots, but Scottish Labour will work with the UK Government and use devolved powers to deliver a just transition for the industry. 'With Kemi Badenoch desperately attempting to rally the few remaining Scottish Tories, it seems like it won't be long until they can fit all of their MSPs in a single taxi.'
