Latest news with #SpringBudget
Time of India
10-06-2025
- Business
- Time of India
Canada Question Period: Current, former Finance Ministers defend not tabling Spring Budget - The Economic Times Video
Canadian Finance Minister François-Philippe Champagne defended the Liberal government's decision to not table the Spring Budget in the face of Trump tariffs. Former Deputy PM and Finance Minister, now minister of Transport and Internal Trade Chrystia Freeland also joined the Liberal caucus to defend PM Carney's moves on pipelines and unified trade.
Business Times
22-05-2025
- Business
- Business Times
UK budget strains deepen ahead of Reeves' spending review
[MANCHESTER] Britain's government kicked off the 2025/26 financial year in April by again borrowing more than expected, suggesting no let-up in the pressure on the public finances ahead of a major review of spending. Public sector net borrowing was £20.155 billion (S$34.9 billion) in April, according to official data. A Reuters poll of economists showed a median forecast of £17.9 billion for public sector net borrowing. Economists have routinely underestimated the extent of Britain's budget deficit each month over the past year. Finance minister Rachel Reeves is due to deliver her first multi-year spending review on June 11 to set the budgets for public services. She outlined her first annual tax and spending plans last October when she raised social security contributions paid by employers but held off from broader tax increases. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up 'The decision to hold off on tax rises in the Spring Budget increasingly looks like a temporary reprieve,' said Lindsay James, investor strategist at wealth management firm Quilter. 'As borrowing continues to outstrip forecasts and debt interest costs remain elevated, pressure is building on the Chancellor to make tougher choices.' With Reeves' budget plans hinging on a tiny buffer against the government's self-imposed fiscal rules – equivalent to less than 1 per cent of annual spending – investors are watching public sector finance data closely. The British government bond market has become increasingly volatile in recent years, reflecting unease among investors over Britain's mix of slow economic growth, high debt interest costs and persistent inflation. Thursday's figures from the Office for National Statistics (ONS) were the first to estimate the impact of the large hike in employer social security payments, known in Britain as National Insurance contributions (NICs), which came into effect in April. A major source of funding for the Labour government's spending plans, the ONS said compulsory social security contributions increased by 12.8 per cent compared with a year ago, on an accrued basis that relies heavily on projections. Separate HMRC tax data, which records what the government actually received, showed a 7.7 per cent annual increase in employer NICs contributions – the weakest such increase for the month of April since 2020. But as NICs contributions are paid a month in arrears, it will not be until next month that more concrete evidence of the NICs increase appears in the data. The ONS revised down its estimate of borrowing for the last financial year that ended in March to 148.3 billion pounds from 151.9 billion pounds previously, or 5.1 per cent of economist output compared to 5.3 per cent. In 2023/24, the deficit was 4.8 per cent of GDP. In its forecasts published in March, the Office for Budget Responsibility - which provides the fiscal and economic outlooks used by the government - projected a budget deficit for the financial year ending in March of 137.3 billion pounds. ($1 = 0.7447 pounds) (Reporting by Andy Bruce; Editing by William Schomberg and Hugh Lawson)
Yahoo
09-04-2025
- Politics
- Yahoo
Councillor hits out at 'toxic' Labour party a week after shock resignation
A former Labour councillor in Tameside said his resignation was sparked by 'toxic culture' of the party and recent welfare cuts. Coun Gary Ferguson made the shock decision to leave the party at the beginning of last week, which Labour have described as 'disappointing'. But now he has spoken out against his old party, criticising the way it operates. READ MORE: Prince Harry escorted from courtroom by bodyguards amid woman's outburst READ MORE: M66 LIVE as motorway blocked both ways due to police incident with 'severe' traffic delays The Longdendale councillor branded the organisation 'toxic' and regarded the recent intervention from Labour's National Executive Board (NEC) as unacceptable. The NEC appointed a campaign improvement board (CIB) in October to bring about a 'culture change' at the authority. It came following repeated failures in the council's children's services - but the interruption was not wholly welcomed. The ex-Labour politician says the last straw was the recent welfare cuts announced in the Spring Budget, which meant thousands on disability benefits could lose out on financial support. Coun Ferguson told the Manchester Evening News: 'The reasons why I am leaving the Labour Party are many and varied. In principle I find myself in dispute with many aspects of our national policy and the recent welfare cuts. 'The Office for Budget Responsibility (OBR) has, by their own economic forecast, called this into question. I believe this is not right and will have a devastating effect on some of the most vulnerable within our community. "The fact that an extra 50,000 pensioners will be placed in relative poverty this year with announcements on fuel cuts is really difficult to accept from a Labour government. 'Locally within Tameside Council, the toxic culture I believe existed, still exists. The marginalisation of councillors and the way in which appointments are made to the executive board, I can't accept. 'This is the best way forward for my constituents and the residents of Tameside. 'I believe that the way the council is being controlled, as I understand by external forces (NEC), suggests to me there is a hidden agenda that undermines the principle of a locally elected council. 'With regard to all my constituents, no matter who you voted for, if you feel let down or betrayed by this decision, it has taken a lot of soul searching and I believe is the only position left open to me.' He added he will continue to serve the residents of Longdendale as an independent councillor and thanked all those who have supported him following the decision. A Labour spokesperson added: 'Labour inherited a broken welfare system from the Conservatives, which risked a generation of young people being written off and millions of people who want to work not getting the support they need. "Labour will deliver a social security system that is fit for the future."
Yahoo
26-03-2025
- Business
- Yahoo
Rachel Reeves set to announce further benefit cuts in Spring Statement
RACHEL Reeves is expected to announce further cuts in her Spring Statement on Wednesday, with more funding for the welfare budget expected to be axed. The news of the Chancellor planning further cuts in the Spring Budget came after the Office for Budget Responsibility (OBR) rejected her estimate of savings from the changes announced last week. Reeves had hoped to shift the focus from the benefits cuts, which angered some Labour backbenchers and were heavily criticised by charities, by promising to 'secure Britain's future' with a £2.2bn increase to defence spending. However, it has been reported that the final estimates from the OBR suggested the changes announced by Liz Kendall, Secretary of State for Work and Pensions, which included tightening the criteria for the personal independence payment (Pip), would not save the £5bn needed to meet Reeves's self-imposed fiscal rules. READ MORE: UK Government taken to court over 'unlawful' 31 oil and gas licences The watchdog's assessment is that changes to disability and incapacity benefits will save £3.4 billion in 2029/30 rather than the more than £5 billion claimed by ministers. The Chancellor is expected to announce an additional £500 million in benefits cuts to make up part of the £1.6bn shortfall, with the rest of the gap filled by spending cuts elsewhere, The Times reported. It was also reported that Reeves is already braced for a backlash over the additional welfare cuts as her team are prepared to publish impact assessments alongside Wednesday's statement, which will show the full impact of the cuts. Universal credit incapacity benefits for new claimants will now be frozen until 2030 rather than increased in line with inflation and there will also be a small reduction in the basic rate in 2029, it has also been reported. Some Labour frontbenchers had previously suggested they could quit over a proposed freeze to Pip, which was not included in Kendall's package. Ahead of Reeves' statement on Wednesday official figures showed inflation fell in February. (Image: Jordan Pettitt/PA Wire) The rate of Consumer Prices Index (CPI) inflation fell to 2.8% in February from 3% in January, the Office for National Statistics (ONS) said. The OBR is widely expected to slash its forecast for economic growth, following similar recent revisions by the Bank of England and the Organisation for Economic Co-operation and Development (OECD). The UK Government has also borrowed more than previously expected, with the cost of those loans rising – in part due to global turbulence. In her spring statement, the Chancellor will tell MPs that a 'more insecure world' requires a greater focus on national security, with a promise to increase defence spending by £2.2bn from April as part of the previously announced plan for the biggest boost in military funding since the Cold War funded by cutting the aid budget. She will say: 'This moment demands an active government stepping up to secure Britain's future. A government on the side of working people. 'To grasp the opportunities that we now have and help Britain reach its full potential, we need to go further and faster to kickstart growth, protect national security and make people better off through our plan for change.' Reeves will also tell MPs she is 'proud' of her record in office – despite the sluggish economic growth figures which have heaped pressure on her.
