
Report: Starmer and Reeves 'lay the ground for massive tax hikes'
Sir Keir pointedly refused to rule out tax increases earlier this week, while the Bank of England has voiced concern about persistent inflationary pressure - which puts more pressure on the finances. However, ministers have been adamant that they will stick to the manifesto promise not to target the main rates of income tax, national insurance or VAT .
The tax burden is already set to hit a new high as a proportion of GDP after the last Budget imposed a £41billion increase - the biggest on record for a single package. One insider told the Guardian that the government wanted there to be 'no surprises' for markets in the Autumn.
'Last year was a model of how to do it,' the adviser said. 'Had we done it otherwise, it would have been a mess.' The National Institute of Economic and Social Research (NIESR) said earlier this week that Ms Reeves could have to find the equivalent of adding 5p to income tax to keep afloat by the end of the decade and meet her fiscal rules.
To fill the hole and maintain the buffer, the Chancellor will have to find £51billion annually in higher taxes or lower spending by 2029/30.
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


The Guardian
19 minutes ago
- The Guardian
What will happen to people arrested on Palestine Action demonstration?
The consequences of being arrested for expressing support for Palestine Action could be 'life-changing', one of those detained during Saturday's protests, Sir Jonathon Porritt, has admitted. While the former government adviser said that he had carefully deliberated over a decision to take part, the road ahead for the more than 500 people arrested on Saturday involves possible criminal charges, court cases and convictions. Ultimately, custodial sentences of as much as 14 years could be imposed. Those whose details could be confirmed were released on bail to appear at a police station at a future date. The police will be sending case files to the Crown Prosecution Service, as it has already done in the case of at least 26 others who were arrested at previous protests in support of Palestine Action. All those arrested have now been released under police bail, with the main condition being not to attend any future demonstrations aiming to overwhelm the criminal justice system in protest at the proscription of Palestine Action by the British government. They will be asked how they plead and if it is not guilty they can elect for a trial before a magistrate or, more likely, a district judge. The majority of the 522 people arrested in Parliament Square – in most cases after displaying pieces of cardboard saying 'I opposed genocide, I support Palestine Action' – were detained under section 13 of the Terrorism Act 2000. This is the 'lower level' part of the act, which means those who are charged will be tried in a magistrates court rather than a crown court. Some have been charged under the more serious section 12, which means they could seek to have their case heard in front of a jury of their peers at a crown court. The prosecution could also seek to have the trial heard there. Defend Our Juries, the organising group behind the protest, has said it won't be recommending what people do, as they have already participated 'at huge personal cost' but it will be 'providing the information'. There is a scenario in which court trials do not happen, if the co-founder of Palestine Action is successful in a legal challenge against the home secretary's decision to ban the group under anti-terrorism laws. Given that most those arrested on Saturday will be investigated under section 13 of the terrorism act, they could well walk free from court. They face a maximum sentence of six months' imprisonment or a fine of up to £5,000 or both, while magistrates will also take into account factors such as good character. More than half of those arrested on Saturday were also aged 60 or over. Those arrested under the more serious section 12 of the Terrorism Act face a maximum sentence of 14 years in prison if convicted. However, such individuals could end up being tried before a jury in a crown court. In recent cases under section 13, people charged with supporting Hamas, including displaying pictures of hang gliders such as those used in the 7 October 2023 attack on Israel, were given absolute or conditional discharges. Will a jury drawn from their peers be more likely to sympathise with those arrested on Saturday? Those involved in organising the protest are confident that the British public is on the same page as them. The impact of such a conviction would be felt in everything from employment to travel. Many of those arrested are retired and, while they do not have a job to lose, the possibility of being unable to get a visa to go abroad might weigh. However, the consequences are starker for others arrested on Saturday including health workers and doctors. There was an organised 'health block' of 13 medical professionals – including an obstetrician and gynaecologist, three other working doctors, a number of nurses, and retired doctors. Alice Clack, a senior obstetrician and gynaecologist in the NHS, said: 'If doctors are charged with a crime we have to self-report to the GMC [General Medical Council], who then have a look at the crime in question and decide whether to refer it to the Medical Practitioners Tribunal Service. 'Then, someone could expect to be suspended or they could be erased from the register. That is the possibility.' As for seeking future employment, recent legislation largely reduced the period of time during which those convicted of most crimes must declare a conviction. However, while it reduced the period of time during which an individual must declare a conviction, it does not apply to terrorist offences – which never become spent.


The Guardian
19 minutes ago
- The Guardian
Palestine Action co-founder accuses ministers of making defamatory claims
The co-founder of Palestine Action has accused ministers of making false and defamatory allegations about the banned group and contradicting their own intelligence assessments in an attempt to justify the arrest of more than 500 people. The government has come under pressure to justify the detention of 532 people arrested over the weekend under the Terrorism Act – half of whom were 60 or older – on suspicion of showing support for Palestine Action. The number of people arrested for peaceful protests, together with the images of older people being led away and the demands placed on the criminal justice system have led many to call into question the criminalisation of so many people. On Monday, a Downing Street spokesperson responded by saying that Palestine Action, which last month became the first direct action protest group to be banned, was 'a violent organisation that has committed violence, significant injury, extensive criminal damage'. The home secretary, Yvette Cooper, told the BBC that Palestine Action 'is not a non-violent organisation' and claimed that court restrictions meant people 'don't know the full nature of this organisation'. But Huda Ammori, co-founder of Palestine Action, said: 'Yvette Cooper and No 10's claim that Palestine Action is a violent organisation is false and defamatory and even disproven by the government's own intelligence assessment of Palestine Action's activities … 'It was revealed in court during my ongoing legal challenge to the ban that the Joint Terrorism Analysis Centre's (JTAC'S) assessment acknowledges that 'Palestine Action does not advocate for violence against persons' and that the 'majority' of its activities 'would not be classified as terrorism'. 'Spraying red paint on war planes is not terrorism. Disrupting Israel's largest weapons manufacturer, Elbit Systems, by trespassing on their sites in Britain is not terrorism. It is the Israeli Defense Forces and all those who arm and enable their war crimes who are the terrorists.' JTAC, a government body based within MI5, produced a secret report on 7 March which was disclosed in the high court. While recommending banning Palestine Action, JTAC said the group 'primarily uses direct action tactics', which typically resulted in minor damage to property. 'Common tactics include graffiti, petty vandalism, occupation and lock-ons,' it added. Defend Our Juries, which has organised multiple demonstrations, including Saturday's, in support of Palestine Action, also highlighted Whitehall officials' description – again in documents revealed in court – of a ban as 'relatively novel' as 'there was no known precedent of an organisation being proscribed on the basis that it was concerned in terrorism mainly due to its use or threat of action involving serious damage to property'. A Defend Our Juries spokesperson said: 'It is despicable that under political pressure, Yvette Cooper is now actively misleading the British public about the nature of Palestine Action, knowing that if people come to their defence to counter her disinformation, she can have them jailed for 14 years [because they could be deemed to supporting a proscribed group].' The group said many hundreds of people had already committed to the next protest, which is likely to take place in early September and will be on an even larger scale. Uncertainty remains over the status of charges and prosecutions. Tom Franklin, chief executive of the Magistrates' Association, said: 'Based on the information that we currently have, and the statement put out by the Metropolitan Police yesterday, it could take days and possibly weeks for decisions to be made on whether or not to charge any of those arrested over the weekend. Many of these cases may also be heard in the crown courts, rather than magistrates courts.' Magistrates courts hear less serious cases although some charges under section 13 of the Terrorism Act are 'either way', meaning the defendant can choose whether to be tried before magistrates or a jury in the crown court. The Defend Our Juries spokesperson said: 'Personally I would go to the crown court because I know where the British public is, both on the genocide in Gaza and secondly on the British government's support for it, and thirdly on people not being allowed to express their opinions.' However, they added that they expected most charges to be laid under section 13, which are all heard in the magistrates courts, as the criminal justice system would not be able to cope with so many jury trials.


The Sun
19 minutes ago
- The Sun
Urgent warning issued over ‘very convincing' web scams as shoppers conned out of £100s
SHOPPERS have been warned to look out for "very convincing" web scams that are conning people out of hundreds of pounds. There has been a recent rise in criminals creating fake websites for well-known brands, experts say, and many scammers are using AI to help them. 1 Costco is one of the retailers that has recently been targeted by these criminals, with the wholesale business warning customers to be vigilant when shopping online. Dozens of reviews have appeared on Trustpilot in recent weeks from Costco shoppers who paid for orders but never received them, with some claiming to have bought items costing hundreds of pounds. Costco responded to several customers on the review site, writing: "We were unable to locate an order with the details provided and suspect that the purchase may have been made through a fraudulent website posing as Costco. "Unfortunately, there has been a recent increase in fraudulent websites impersonating Costco." In another Trustpilot response to a customer who had fallen for the scam, it urged shoppers to "check the URL which is displayed when shopping online". It added: "Our site displays at the beginning of the web address." Some Costco shoppers may have lost hundreds of pounds to the scam. In one review, a customer claims they bought a Bosch router table, which are on sale for up to £500 from some online retailers, but had not received it. Costco responded saying their order could not be found and it was likely bought through a fake website. Another customer said they ordered a keter Manor outdoor shed, which retails for over £200 on the high street, and were told by Costco they had likely been scammed. Avoid being ripped off by car hire companies with these four top tips It's not just Costco that has been targeted by fake websites - experts told The Sun that the scam is on the rise. 'Criminals are increasingly creating convincing looking websites that mimic well known retailer that lure shoppers in with seemingly genuine branding and tempting offers," said Jake Moore, global security adviser at ESET. "These sites often harvest lots of personal and payment information or take money without delivering goods." He said they're also becoming "incredibly easy to make" with the use of AI, as it means scammers no longer need to know how to code to create fake websites. "The end results are often near perfect copies too," he said. Starling Bank financial crime specialist Sarah Lenette adds: With the rise of AI, scammers have everything they need to create very convincing retail sites in very little time, which include all of the correct branding, products and relevant offers and deals." One common way you can end up on a fake website is by clicking on a fake ad on social media platforms like Facebook, TikTok or Instagram. "Users then unknowingly find themselves on a site believing they are on the legitimate retailer," Jake says. It comes after a raft of fake Wilko websites offering huge discounts were set up by scammers after the retailer fell into administration in 2023. Cath Kidston and Joules have also been targeted by the scams. How to spot a fake website While scammers have become more sophisticated, there are several ways you can keep an eye out for fake websites when shopping online. Which? Consumer Expert Rob Lilley-Jones says you should avoid any deals that seem "too good to be true" - as they usually are. "Another tell-tale sign of a scam website will be poor spelling and bad grammar," he adds. Look out for any websites that don't have a physical address and a phone number and email address to contact them. "If they don't, it's a red flag," Rob says. He also suggests using a domain checker like to see when the website was set up. "If it's recent, and the company claims to be a well-known one like Costco, it's a scam," he says. Sarah Lenette adds that you should be wary of any URLs for UK retailers that end in .org or .net. You should also avoid clicking on social media ads that you're unsure about, she says. "Always search for the retailer on a search engine and head to them independently, as well as checking for independent reviews on sites such as TrustPilot," she says. Costco was contacted by The Sun but declined to comment.