Reeves to pitch UK to G20 finance ministers as ‘beacon of stability'
As well as talks with finance ministers, the Treasury said Ms Reeves is expected to meet representatives from major South African businesses in Johannesburg, setting out Britain's stall as pro-growth and open to 'elite global talent'.
Ahead of the trip, she said: 'In a changing world, I am determined Britain leads by example as a beacon of stability.
'Our plan for change is delivering the strong foundations needed to drive prosperity for working people at home, while we build a more resilient economy that works in our national interest abroad.'
The G20 meeting comes at a rocky time for the Chancellor. After growing 0.7% in the first three months of 2025, the economy has since shrunk in the face of global and domestic challenges while inflation hit an 18-month high in June.
Meanwhile, global uncertainty persists with the threat of US tariffs and the ongoing impact of the war in Ukraine.
Seeking to improve economic ties with the G20, Ms Reeves is expected to talk up the Government's new trade and industrial strategies, along with investment in infrastructure and plans set out on Tuesday to cut regulation for financial services.
She said: 'By doubling down on our global strengths in financial services, infrastructure and trade, we're creating the conditions for growth that creates the well-paid jobs and puts more money in people's pockets – even in the face of global headwinds.'
Ms Reeves is also expected to express her support for multilateral institutions such as the G20 as the best way of meeting global challenges.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
37 minutes ago
- The Sun
Nine money changes happening in August including benefit that could be stopped worth £1,354.60 if you don't act NOW
AS we head into August and the last month of summer, there are several important financial changes that will affect your money, from student loans and benefits to bank accounts and interest rates. Whether you're managing your household budget, planning ahead for childcare, or keeping an eye on mortgage costs, knowing what's coming can help you stay in control and avoid any surprises. 1 We've gathered all the key dates and explained what you need to know and do, so you can prepare your finances for the weeks ahead. Aug 1: Tuition fee rise takes effect in England From August 1, 2025, undergraduate tuition fees in England will rise from £9,250 to £9,535 a year. Students will also be able to borrow more to help with living costs, with the maximum maintenance loan for those living away from home outside London increasing from £10,227 to £10,544. All students will get an uplift in support for the 2025 to 2026 academic year, with the government predicting that the most help will go to those from households earning £25,000 or less. Student loan repayment rules changed in England in 2023, meaning graduates are likely to pay back more over a longer period than before. Graduates who started repayments in April 2025 had an average debt of £53,000, according to the Student Loans Company. Aug 6: eBay faster payments come in From August 6, eBay is speeding up payments to some sellers. Those who have completed at least 10 sales totalling £150 or more over the past five years, and have no more than two unresolved cases in the last 12 months, will receive their funds within 24 hours of sale. This replaces the previous system where sellers had to wait two days after delivery confirmation before payment. An unresolved case means any buyer dispute that wasn't resolved or where eBay ruled in favour of the buyer. This change should help sellers manage their cash flow more easily. Aug 7: Bank of England base rate decision On August 7, the Bank of England (BoE) is expected to announce its next base rate decision. At its last meeting, policymakers kept the rate steady at 4.25%, with six voting to hold and three in favour of a cut. The BoE is closely watching signs of a cooling labour market alongside inflation, which rose to 3.6% in the 12 months to June, according to the Office for National Statistics (ONS). The base rate affects borrowing costs and savings returns. Most mortgage holders are on fixed deals, so payments won't change immediately. However, UK Finance estimated in January that around 1.8 million fixed-rate deals will end this year, meaning lots of homeowners could soon face higher rates. What is the base rate and how does it affect the economy? NINE members of the Bank of England's Monetary Policy Committee meet eight times each year to set the base rate. Any change to the Bank's rate can have wide-reaching consequences as it directly influences both: The cost that lenders charge people to borrow money The amount of savings interest banks pay out to customers. When the Bank of England lowers interest rates, consumers tend to increase spending. This can directly affect the country's GDP and help steer the economy into growth and out of a recession. In this scenario, the cost of borrowing is usually cheap, and the biggest winners here are first-time buyers and homeowners with mortgages. But those with savings tend to lose out. However, when more credit is available to consumers, demand can increase, and prices tend to rise. And if the inflation rate rises substantially - the Bank of England might increase interest rates to bring prices back down. When the cost of borrowing rises - consumers and businesses have less money to spend, and in theory, as demand for goods and services falls, so should prices. The Bank of England is tasked with keeping inflation at 2%, and hiking interest rates is a way of trying to reach this target. In this scenario, the losers are those with debt. First-time buyers will lose out to cheaper mortgage rates, and those on tracker or standard variable rate mortgages are usually impacted by hikes to the base rate immediately. Those on a fixed-rate deal tend to be safe if they fixed when interest rates were lower - but their bills could drastically increase when it's time to remortgage. The cost of borrowing through loans, credit cards and overdrafts also increases when the base rate rises. However, the winners in this scenario are those with money to save. Banks tend to battle it out by offering market-leading saving rates when the base rate is high. Markets generally expect two rate cuts this year, potentially lowering the base rate to 3.75% by December. But rising food prices and global uncertainties mean the outlook remains uncertain. If your mortgage deal is ending soon, now's a good time to review your options. For savings, shop around to find the best rates. Credit card and loan rates are unlikely to change immediately but remain higher than in recent years. Aug 20: July inflation figures and rail fare rises The Office for National Statistics (ONS) will release the July inflation figures on August 20. Inflation, measured by the Consumer Prices Index (CPI), shows how much the cost of everyday goods and services is rising. In June, CPI inflation was 3.6%, up from 3.4% the previous month and still well above the Bank of England's 2% target. Inflation influences many parts of daily life, including rail fares. In England, annual increases to regulated rail fares such as season tickets and off-peak travel are usually linked to the July Retail Prices Index (RPI) measure of inflation. The cost of unregulated tickets, such as first class, advance and anytime fares, is set by train companies. Aug 21: Santander axing popular current account Santander is closing its 123 Lite current account on August 21. Hundreds of thousands of customers will lose the account's popular 3% cashback on household bills, which is capped at £15 a month and comes with a £2 monthly fee. Affected customers will be automatically switched to Santander's Everyday Current Account, which has no monthly fee but offers no cashback. If you want to keep earning cashback with Santander, consider switching to the Edge or Edge Up accounts. Edge offers 1% cashback on some household bills, supermarket shopping, petrol, and travel, with a £3 monthly fee capped at £10 cashback. Edge Up costs £5 a month and offers up to £15 cashback, but requires a higher monthly deposit. Note that from September 9, cashback on supermarket, fuel, and travel spending will be removed from both accounts, leaving cashback only on household bills. If you're looking for better cashback deals elsewhere, some credit cards offer higher rewards. For example, the American Express Cashback Everyday Credit Card gives up to 5% cashback on spending for the first five months. Aug 25: Bank holidays affecting benefit payment dates If your benefit payment usually falls on a bank holiday, it will be paid early. For example, payments due on Monday August 25 (the bank holiday) will arrive on Friday August 22 instead. You'll get your money sooner, but since the next payment won't move, you'll need to budget carefully as the gap between payments will be longer. It's also standard for payments due on weekends to be paid on the preceding working day. So, payments normally scheduled for Saturday 23 or Sunday 24 August will also arrive on Friday August 22. This early payment applies to a range of benefits, including: Attendance allowance Carer's allowance Child Benefit Disability Living Allowance Employment Support Allowance (ESA) Income Support Jobseeker's Allowance (JSA) Pension Credit Personal Independence Payment (PIP) State Pension Universal Credit If you receive the basic state pension, your payments come every four weeks on a weekday linked to the last two digits of your National Insurance number: 00 to 19: Monday 20 to 39: Tuesday 40 to 59: Wednesday 60 to 79: Thursday 80 to 99: Friday The next bank holidays affecting payments after August will be in December. Payments due on Christmas Day and Boxing Day will be paid early on 24 December, this year. Aug 31: Deadline to extend Child Benefit claims for 16- to 19-year-olds Parents of teenagers aged 16 to 19 must extend their Child Benefit claim by August 31 to keep payments coming in September. If a claim isn't extended, Child Benefit will automatically stop from August 31 after a child's 16th birthday. HM Revenue & Customs (HMRC) sends reminders to parents to confirm online if their teenager is staying in full-time education or approved training after GCSEs. Parents can extend claims easily via the HMRC app or with letters including a QR code for quick access. Child Benefit currently pays £26.05 per week for the eldest or only child, and £17.25 per week for each additional child. Last year, over 870,000 parents extended their claims online or through the app in minutes. Aug 31: Deadline to resubscribe for free childcare codes If you want to keep or start receiving up to 30 hours of free childcare a week for children aged 9 months to 4 years, you must apply or renew your childcare code by August 31. This applies to working parents in England who use registered childcare providers such as nurseries, playschemes, or wrap-around care. You'll need to set up a childcare account online and apply via or the HMRC app. Once approved, you'll get an 11-digit code to give your childcare provider as proof of eligibility. If your child turns 9 months old between April 1 and August 31, you must apply by August 31 to get free childcare starting in September. If you already receive 15 hours for your child under two, you'll automatically get 30 hours from September, but you still need to confirm your details and provide the code to your provider. Remember to apply early, ideally at least six weeks before the deadline. Some childcare providers ask for codes before the official deadline. Once you have your code, you'll need to reconfirm your details every three months to keep your place, although some providers may offer a short grace period. If you're starting a new job, returning from parental leave, or changing circumstances, deadlines vary - but August 31 is the key date for many parents wanting free childcare starting this autumn. You can apply or check eligibility here. Are you missing out on benefits? YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to Charity Turn2Us' benefits calculator works out what you could get. Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit. and charity StepChange both have benefits tools powered by Entitledto's data. You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs. Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
Telegraph
an hour ago
- Telegraph
Rachel Reeves challenges Cabinet to buy British
Rachel Reeves has challenged Cabinet ministers to do more to buy British as she seeks to boost flagging economic growth. The Chancellor and Pat McFadden, the Chancellor of the Duchy of Lancaster, sent out the message in a letter to the Cabinet. It urged ministers to use procurement contracts, which are in the Government's gift, to help generate jobs in the UK by supporting British companies. The intervention comes amid a consultation about whether rules can be changed to give the Government more freedom to give contracts to UK firms. Each year £400bn is spent in public sector procurement, meaning small changes in approach could have a significant impact. Ms Reeves is facing difficult economic circumstances in her Budget this autumn, with official growth forecasts halved for 2025. New tax rises appear increasingly inevitable given that pressure on the public finances has intensified and the Chancellor will not break her borrowing rules. Excerpts of the letter from Ms Reeves and Mr McFadden were shared with The Telegraph. The pair wrote: 'We want people around the UK to feel the full impact of government spending through investment in skills and high quality jobs. That's why we're going further to ensure public procurement expenditure boosts British industry, jobs, skills, productivity, and expands the supply side. 'Every department needs to be pulling this procurement lever to support economic growth and strengthen our economic security. It is possible to do this within our trade agreements, as other countries do.' They added: 'We are asking all Secretaries of State to satisfy themselves that your department, and arms length bodies, have the commercial capacity and capability to ensure the creation of British jobs, productivity enhancing opportunities, and skills are prioritised in every major contract.' They also told colleagues to 'set ambitious and stretching targets for increasing your procurement spend with SMEs (Small and Medium-sized Enterprises) and social enterprises while stripping away requirements and processes that are barriers to these firms competing with established players'. At one point they wrote: 'Your commercial team is not a back office function – it is a strategic policy lever and must be a priority.' Ms McFadden was once Sir Tony Blair's political secretary and has emerged as a key confidant of Keir Starmer in recent years. As the most senior minister in the Cabinet Office he is overseeing cross-government attempts to tackle Whitehall bureaucracy and make savings in the civil service. Whether the rhetoric of Ms Reeves and Mr McFadden will lead to a step change in procurement approach remains to be seen. During the Conservatives' 14 years in office government ministers often talked publicly about the importance of using the Government machine to support British businesses. A consultation issued by the Cabinet Office is looking at changes to procurement rules that make it easier for the government to boost British industry. It will report back in September.
The Independent
2 hours ago
- The Independent
There won't be a wealth tax – but Rachel Reeves can't afford to rule it out just yet
Normally, when politicians decline to rule something out, a sceptical media and public believe they are about to do it. But there should be one exception to this rule. Keir Starmer, Rachel Reeves and other ministers are refusing to rule out introducing a wealth tax in this autumn's Budget, when the chancellor is likely to raise taxes by at least £20bn to stick within her fiscal rules. I'm told Starmer and Reeves will not bring in a new wealth tax, such as the 2 per cent levy on assets of more than £10m advocated by a growing number of Labour MPs and Neil Kinnock, the party's former leader, to raise £10bn. A wealth tax is an easy slogan and fits on to a banner. It would do nicely for the Starmer allies hoping to nudge him in a more progressive direction as he seeks a long overdue 'story' for his government. But Reeves and Starmer are not convinced. The chancellor thinks wealth taxes don't work. Twelve developed nations had them in 1990s but only three remain; only one, in Switzerland, brings in lots of money. Reeves burnt her own fingers by targeting non-doms – a process begun by Jeremy Hunt, the outgoing Tory chancellor. I'm told Reeves privately dismissed fears the rich would respond by leaving the UK, saying: "They always say that, but it never happens." It is happening, and she is now considering changing her plan to make worldwide assets, including those in foreign trusts, liable to inheritance tax. One government insider told me: 'People can choose where to pay their taxes. It's very easy to move countries and they are doing it.' A new wealth tax would be complex, take years to introduce and probably not be worth the candle. Dan Neidle, founder of Tax Policy Associates, said its study found such a tax would 'lower long-run growth and employment, thanks to a decline in foreign and domestic investment. It would make UK businesses more fragile and less competitive, and create strong incentives for capital reallocation and migration.' Why not just say no to a wealth tax now? Reeves offered one explanation to her Tory predecessor Norman Lamont at a Lords committee hearing this week. He told her he found it 'a bit strange' the government has not ruled out the move. Reeves replied that if she ruled out one tax rise, the media would move on to the next option, and assume that one was going to happen if she failed to rule it out. A fair point – but not her only reason. Reeves and Starmer need to build bridges with the parliamentary Labour Party after it filleted their welfare legislation, so rejecting a wealth tax now would inflame tensions. I suspect that when the Budget comes, Reeves and her allies will whisper to Labour MPs they are introducing a form of wealth tax through other measures, while avoiding headlines about implementing a specific one. Another reason not to rule out a wealth tax is to help message discipline. Labour certainly needs more of that: ministers unwittingly fuelled speculation about tax rises in media interviews by giving different definitions of "working people'. Far easier to say taxes are a matter for the Budget and we don't comment in advance. Some senior Labour figures think Reeves's reticence is because she is considering proposals that are close to being a wealth tax – for example, increasing property-based taxes. I think she should bring in higher council tax bands for the most expensive properties. It's ludicrous that this tax is based on 1991 property values, and that in England, people in homes valued at more than £320,000 pay the same amount in their local authority. Reform could be sold as a genuine levelling up measure the Tories flunked as it would cut bills in the north and Midlands while raising them in the south. Alternatively, Reeves could increase capital gains tax for the second Budget running, perhaps by bringing it into line with income tax rates, which are higher. Some in government favour a rise in income tax with the money earmarked for defence, as I have suggested. Another option is to raise the top rate of income tax from 45 per cent to 50 per cent. But both ideas would leave Labour open to the charge of breaching its manifesto pledge not to increase income tax, national insurance or VAT. Reeves could argue that circumstances had changed in a more dangerous world. But breaking its promise might be a step too far for an already deeply unpopular PM and party. I don't think there will be a wealth tax. However, the rich shouldn't celebrate. The Budget will increase existing taxes on the wealthy, in line with the government's mantra of protecting "working people", while ensuring 'those with the broadest shoulders carry the greatest burden'. Health warning: creating losers is not pain-free for them or the government, as Reeves discovered when she brought in the ' family farms tax '. But reforming some taxes under a better banner – 'fair tax' – is her best shot.
