Do billionaires truly benefit the country?
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The politics team answers listener questions on council tax, the voters ignored by Labour and the Tories, and the true value of billionaires.
Hannah Barnes is joined by Andrew Marr and Rachel Cunliffe.
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The Sun
17 minutes ago
- The Sun
All the new tax raids Rachel Reeves is planning on YOUR cash to fill £50bn blackhole – how to protect yourself
RACHEL Reeves is under pressure to fill a £50billion blackhole with an all-new tax raid in the Autumn Budget. Experts have suggested a raft of tax changes could be announced in the speech - but how could they affect you? And what can YOU do now to protect your finances. We explain. 2 The Chancellor is under increasing pressure after slow economic growth, U-turns on spending and a weak jobs market have all pushed the government finances further into the red, the National Institute for Economic and Social Research has warned. Among the ideas on the table are changes to stamp duty, capital gains tax and council tax. Labour has already pledged not to raise income tax, national insurance or VAT in its manifesto, which means it is considering other options. Of course, the full details of the Budget will remain under wraps until the day it is unveiled. But here we explain what could be on the cards and what it might mean for you. Inheritance tax Reeves is said to be eyeing up inheritance tax changes as part of plans to fix the nation's finances. Some of the options on the table are stopping parents from making unlimited tax-free gifts to kids by capping the value of gifts that someone can pass on to loved ones. Currently, you can give away unlimited amounts of money and assets to friends or family members without paying inheritance tax, as long as you do so seven years before you die. If you give money away and then die within seven years then the amount of tax you pay is charged at a tapered rate. Capping the amount relatives can give to their loved ones could raise millions of pounds for the Treasury. 2 The tax raised a record £8.2billion last year alone. Experts have warned that if the measure was brought in it could cause 'a fundamental change to the way families pass on wealth". Rachael Griffin, tax and financial planning expert at Quilter warned the change 'could capture not just large transfers designed to reduce tax bills but also modest, routine support between family members." Stamp duty It has also been suggested this week that the Chancellor is considering plans to replace the current stamp duty thresholds with a new property tax. Earlier this week The Guardian published a story about how the Chancellor Rachel Reeves is considering a new levy on houses over £500,000. It said the Treasury has been considering suggestions from a report by thinktank Onward. In it, Onward recommended that if a property is worth more than £500,000 it would incur an annual tax of 0.54%. Meanwhile, any home worth more than £1million would pay 0.81% on the proportion of its value over the threshold. This would replace the current stamp duty thresholds, which are tiered depending on the value of your home. Currently there is no stamp duty to pay on a home worth less than £125,000. On homes worth between £125,001 and £250,000 stamp duty is charged at a rate of 2%. But this rises to 5% for homes worth between £250,001 and £925,000. The Government has not yet confirmed how the proposals would work but did not rule them out. It is understood that only homeowners who buy a property after the tax is brought in could be affected by the change, so the tax would not be applied to properties retrospectively. This means homeowners who already paid stamp duty when they bought their home would not be charged again. The extra stamp duty for homeowners with more than one property would remain in place and this group would not have to pay the new tax. Experts have described the change as 'designed to radically overhaul stamp duty'. David Hollingworth, of L&C Mortgages, said: 'Many have called for a rethink of stamp duty which can act as a barrier to buying, moving and downsizing. 'Buyers won't shed any tears for stamp duty but may have to rethink the likely annual cost of owning their own home. 'If that sees a big increase it will have a knock on impact for affordability.' Meanwhile, property expert Kirstie Allsopp said the Chancellor's plans to reform stamp duty would have a 'destabilising' effect and added it's 'not the place to fly kites.' Speaking on Times Radio she warned: "It's not Rachel's to go after because it's their homes. "It's the roof over their head. And this Government seems to want to punish people for making the sacrifices they've made to buy their own homes." Council tax Officials are also said to be considering whether to replace council tax with a local property tax. This would mean a total overhaul of the current council tax system, which came into effect in 1993. Currently council tax is an annual fee that is paid to the local council to fund services such as road upkeep and state schools. People pay more or less depending on where they live and the size of their home. There have been fears that council tax will be reformed after several councils declared themselves bankrupt and others warned they have just months left before they run out of funds. But a total reform of the council tax system could take years, so it is unlikely to happen in this parliament. Capital gains tax Homeowners with expensive properties could be hit with capital gains tax when they decide to move house, recent reports suggest. Rachel Reeves is said to be considering ending private residence relief, which stops people from having to pay capital gains tax when they sell their main home. The change would mean that properties worth over a certain amount would be subject to the tax. Higher rate taxpayers would pay 24% of the value of any gains they make, while basic rate taxpayers would have to pay 18%, The Times has reported. If the levy was brought in with a threshold of £1.5million then it would affect around 120,000. These wealthy homeowners would be hit with a bill of £200,000 if they tried to move house. It is not clear from when this change could be introduced or if it would be phased in. Pensions Another option that could come under the microscope is tax relief on pensions. The Chancellor has previously shied away from this option but is said to be reconsidering it as an easy option to raise cash. Currently you get tax relief on any money you pay into your pension. This is done through rebates from the Government and the exact amount you get depends on your income tax rate. For example, basic rate taxpayers get 20% tax relief on any money they pay into their retirement pot. However, for higher rate taxpayers the relief rises to 40%, or 45% for additional rate taxpayers. As a result, the system is currently tilted in favour of more wealthy people as they pay more tax. But reports have suggested that the Chancellor could introduce a flat rate of tax relief. This would cut the amount of cash higher and additional taxpayers get back from the Government. However, it could also hit hardworking teachers, nurses and public sector workers who are on modest incomes. This move could raise billions of pounds for the Chancellor each year. Official figures show the total cost of providing pension tax relief was £52.5billion in 2023/24, up from £50.1billion the year before, official figures reveal. Most of this money went to higher and additional rate taxpayers. Former pensions minister Baroness Ros Altmann thinks the measure is likely to appear in the Budget. She said: "With a desperate need for more money to be invested in this country, it is inevitable that the Chancellor will be looking at whether this money could be better used in Britain directly, and I do think she will find ways to reduce its generosity." But overhauling the pension system would be a major reform, so it cannot be brought in overnight. This means the Government is unlikely to be able to use it to raise the cash it needs in the short term. What should YOU do now None of the potential changes being tabled have been confirmed yet. The Government has not yet ruled them out but any measures it introduces will not happen until after the autumn Budget at the earliest - and a date has not been set yet. Don't make any rash decisions based on the current Budget speculation. If and when the changes are announced you can decide to act to stop your finances from being hit. For example, if the changes to stamp duty are brought in from a certain date then you cold move house before this deadline to avoid being hit. Or if the Government decides to charge Capital Gains tax on high value properties then you could downsize to a smaller house before the change is implemented. Most of the suggestions on the table will only affect the very wealthy, so you may not even be hit by the tax changes. There are some things you can do if you're worried. Get financial advice If you are worried about your finances then you should speak to a financial adviser. They will be able to offer you advice about your situation and explain if any of the measures will affect you. You can find one using - but remember, you will pay a fee. Make a will First, you should ensure your money gets to the right place by making a will, according to Ms Young. 'If you die without a will, your estate will fall under the rules of intestacy, which could mean a higher IHT bill. 'This is especially key for couples who aren't married, as unmarried partners will not automatically inherit from one another, even if they have lived together for many years.' Check how to make one in our guide. Give your finances a makeover It's good practice to sit down and take stock of your finances every six months and work out a plan. Work out all your bills and outgoings and what income you have and factor in any changes, such as bills going up or new income streams. Think about what you need to do to make the most of your money. For example, do you need to prioritise paying off debts or saving for a house deposit. Our guide to paying less tax legally could help you avoid giving away more cash to the tax man than necessary. Do you have a money problem that needs sorting? Get in touch by emailing money-sm@
Western Telegraph
38 minutes ago
- Western Telegraph
How many asylum seekers are in UK hotels and why are they being housed there?
On Tuesday, Epping Forest District Council was granted a temporary injunction blocking asylum seekers from being housed at the Bell Hotel in the Essex town. Here, the PA news agency takes a look at the latest overall data. – How many asylum seekers are in hotels across the UK? Police officers stand by barricades at a hotel housing asylum seekers (Jordan Pettitt/PA) The most recent Home Office data showed there were 32,345 asylum seekers being housed temporarily in UK hotels at the end of March. This was down 15% from the end of December, when the total was 38,079. New figures – published among the usual quarterly immigration data release – are expected on Thursday, showing numbers in hotels at the end of June. Figures for hotels published by the Home Office date back to December 2022 and showed numbers hit a peak at the end of September 2023 when there were 56,042 asylum seekers in hotels. – How many hotels are in use for asylum seekers? It is thought there were more than 400 asylum hotels open in summer 2023. Labour said this has since been reduced to fewer than 210. – Why are asylum seekers being housed in hotels? A court ruled asylum seekers should be removed from the Bell Hotel in Epping, Essex (Jordan Pettitt/PA) Asylum seekers and their families can be housed in temporary accommodation, known as contingency accommodation, if they are awaiting assessment of their claim or have had a claim approved and there is not enough longer-term accommodation available. The Home Office provides accommodation to asylum seekers who have no other way of supporting themselves on a 'no choice' basis, so they cannot choose where they live. When there is not enough housing, the Home Office can move people to accommodation such as hotels and large sites, like former military bases. In May, the National Audit Office said those temporarily living in hotels accounted for 35% of all people in asylum accommodation. – Is this likely to be a permanent arrangement? Labour has pledged to end the 'costly use of hotels to house asylum seekers in this Parliament' – which would be 2029, if not earlier. Campaigners and charities have long argued that hotels are not suitable environments to house asylum seekers. The Refugee Council said they 'cost the taxpayer billions, trap people in limbo and are flashpoints in communities' and urged the Government to 'partner with local councils to provide safe, cost-effective accommodation within communities'. – What is the Government saying since the legal ruling? Government minister Dan Jarvis said they are exploring options after the legal ruling (James Manning/PA) Ministers are 'looking at a range of different contingency options' following Tuesday's ruling, according to security minister Dan Jarvis In the immediate aftermath of the judgment, border security minister Dame Angela Eagle repeated criticism of the previous Conservative government, saying Labour had 'inherited a broken asylum system'. She said the Government would 'continue working with local authorities and communities to address legitimate concerns' around asylum hotels. – What options does the Home Office have now? The Government scrapped the Bibby Stockholm as a site to house asylum seekers (Matt Keeble/PA) Last month, amid protests outside the Bell Hotel and more migrants crossing the Channel, an extra 400 spaces were being prepared to house male asylum seekers at RAF Wethersfield in Essex. The former military site, which has a usual capacity of 800 beds, is expected to house more adult men on a short-term basis. The Labour Government scrapped the large site of the Bibby Stockholm barge in Portland, Dorset, earlier this year, while Napier Barracks in Folkestone, Kent, is also due to end housing asylum seekers and be returned to the Ministry of Defence in September. – Why were there protests outside the Bell Hotel? Counter-protesters have also gathered outside hotels to defend asylum seekers (Jordan Pettitt/PA) The hotel in Epping has been at the centre of a series of protests in recent weeks after an asylum seeker who was staying there was charged with sexually assaulting a 14-year-old girl – something he has denied and he is due to stand trial later in August. After the High Court's ruling, Reform UK leader Nigel Farage wrote in the Telegraph calling for Epping protests to inspire further action wherever there are concerns about the 'threat posed by young undocumented males' living in hotels. But on Tuesday more than 100 women's organisations wrote to ministers warning that vital conversations about violence against women and girls are being 'hijacked by an anti-migrant agenda' that fuels divisions and harms survivors. The joint statement, including from Rape Crisis England & Wales and Refuge, said: 'We have been alarmed in recent weeks by an increase in unfounded claims made by people in power, and repeated in the media, that hold particular groups as primarily responsible for sexual violence. 'This not only undermines genuine concerns about women's safety, but also reinforces the damaging myth that the greatest risk of gender-based violence comes from strangers.'
New Statesman
an hour ago
- New Statesman
Exclusive poll: Labour voters are rallying to Jeremy Corbyn
Photo by. The new left-wing party in the process of being launched by Jeremy Corbyn and Zarah Sultana might lack a name, a leader, and a policy platform beyond tackling 'the crises in our society with a mass redistribution of wealth and power' and 'campaigning for the only path to peace: a free and independent Palestine'. What it doesn't lack is potential supporters. New polling by Ipsos, seen exclusively by the New Statesman, finds that one in three people who voted Labour in 2024 would consider voting for the new Corbyn-Sultana initiative. That figure rises to nearly half (46 per cent) among 2024 Labour voters who would consider voting for an alliance between this new party and the Greens. The new outfit says that over 700,000 people have already signed up on the 'Your Party' website to register their support. For context, Reform UK made national headlines by claiming to have surpassed the Conservatives' membership numbers by hitting 130,000 members last December. Of course, registering for Your Party is free, while there are fees for becoming actual members of political parties (£35 a year for Reform, £39 for the Conservatives, and £70.50 for Labour at the standard rate). But the scale of interest in the new venture is striking, even when virtually nothing is known about it six weeks after Sultana dramatically announced she was quitting Labour for good to set up some kind of alternative. The potential for a left-wing option for those dismayed by the direction Keir Starmer's government has taken in its first year has long been discussed. In June, before Sultana's announcement, George Eaton reported new polling from More In Common which suggested a 'new Corbyn-led party' would win 10 per cent of the vote. Nearly two months later, Ipsos finds that has doubled: 20 per cent of voters consider themselves very or fairly likely to back the Corbyn-Sultana offering, rising to 33 per cent among voters aged 16-34. (A reminder: under government plans the voting age will be lowered to 16 at the next general election.) The big question mark – other than the party's yet-to-be-determined name – is how it interacts with the Green Party. The Greens are spending the summer engaged in a furious leadership contest, with MP duo Ellie Chowns and Adrian Ramsay facing off against 'eco-populist' London Assembly Member Zack Polanski. (If you missed the debate between Polanski and Ramsay on the New Statesman podcast, check it out and watch the sparks fly.) As Megan Kenyon pointed out, Polanski has argued that 'the Greens should occupy a more progressive, populist space on the left in order to confront the infectious populism of Nigel Farage's Reform. He has called for a wealth tax, a better approach to net zero and a more robust left-wing position on immigration.' In vibe terms, that's very similar to the on offer from Corbyn and Sultana. Is there space on the left of British politics for two rival populist parties? Most pollsters and strategists are sceptical, which is why there has been so much talk of some kind of pact or alliance – informal or otherwise – between the two to avoid splitting the vote. The Ipsos polling finds that, while the public on the whole are unsure on the merits of a pact, there is widespread support among people planning to vote for either option: 70 per cent of people who say they would vote for the new left-wing party (it really needs to decide on a name, if only for the sake of word counts) would back an alliance, as would 60 per cent of Green Party supporters. This isn't surprising: an alliance is the best way of avoiding the left-wing vote being split and wasting a whole load of votes. But given how antagonistic the Green leadership contest has already become, plus how much debate and confusion there is over who will lead the new left-wing party, negotiations for how such a pact might work are unlikely to be smooth. Insurgent populism works best when there is a one big-name charismatic leader (just ask Nigel Farage). Subscribe to The New Statesman today from only £8.99 per month Subscribe Nonetheless, almost a third of Brits – 31 per cent – would consider voting for a united ticket. That rises to 51 per cent for voters aged 16-34. 'These figures show that a new left-wing party led by Jeremy Corbyn and Zarah Sultana has the potential to shake up British politics,' says Keiran Pedley, director of politics at Ipsos. 'A significant number of younger people are at least prepared to consider voting for it and a majority of those aged under 35 say they would consider voting for some kind of alliance between the new party and the Greens. Clear policies around change, the NHS, poverty and wealth taxes could be popular.' That should sharpen minds in Downing Street: however chaotic the launch may have been, and whatever the fate of the last group of high-profile MPs who decided to start their own initiative (farewell, The Independent Group), the appetite for a challenger to the left of Labour is real. Related
