We speak your mind. Enjoy free-thinking comment that champions your values. |  |  | Rachel Reeves launched a £13bn tax raid on incomes despite Labour’s manifesto pledge not to target working people, writes Szu Ping Chan.
The Chancellor froze thresholds for income tax and National Insurance whilst tax rates on income generated from property, savings and dividends will be increased as part of a £30bn package of rises largely targeting the middle classes.
Economic growth is the foundation of the Government’s plans, Ms Reeves claims, but last night she refused to rule out coming back with even more increases later in this Parliament.
In her speech yesterday, the Chancellor hailed it as “the engine that carries every one of our ambitions forward”.
Yet for all her proclamations, her policies provide little fuel for growth. In fact, that engine is stuttering, stymied by repeated tax raids.
The Office for Budget Responsibility (OBR) downgraded most of its growth forecasts and warned that the outlook for living standards remained bleak.
Economists also said the Chancellor was relying heavily on tax rises towards the back end of the Parliament. It was a “spend now, pay later” Budget that was full of risks, which my colleague Ben Riley-Smith analyses below.
 | Ben Riley-Smith Political Editor | It is the morning after the night before and a few things have already become clear about Rachel Reeves’s second Budget and what is really going on.
For one, taxes are being raised once again. There was a raid on working people, despite that Labour manifesto declaration to the contrary, with £13bn coming from frozen thresholds.
History is being made. The tax burden is being sent towards 38 per cent of GDP, the highest level since the Second World War. This Parliament’s tax rises are set to be bigger than any since at least 1970. Benefits spending is also rising. The OBR – whose position as a permanent fixture on Budget day is a little shakier after its forecast leaked before the Chancellor’s speech – said by the end of the decade £16bn more a year would be spent on benefits. Indeed a phrase coined by Kemi Badenoch, the Conservative leader, that this is “a Budget for Benefit Street paid for by working people”, makes a number of front pages.
Then there is who is paying: those with houses worth £2m or more; those who get income from property and dividends; those who drive electric cars and use salary sacrifice schemes.
The politics will focus on broken promises. The Labour manifesto said no tax rises on working people. It is also said National Insurance would not increase. Both are happening now.
The economic scrutiny may centre on the timings. The Chancellor has front-loaded her spending increases, such as the lifting of the two-child benefit cap, and delayed the pain of when the tax increases bite. Is that really realistic?
Labour MPs are broadly cheering, not least with the cap removal set to lift 450,000 children out of poverty. The Tories are turning up the heat by calling for the Chancellor’s resignation for past pledges abandoned.
Today there will be a more intense inspection from the think tanks. And the morning after can sometimes be when Budgets begin to unravel. Keep an eye on The Telegraph website this morning for all the latest on that front.
Reeves shatters Labour’s promises ➤
More of our coverage:
Gordon Rayner: How ‘complete shambles’ at the OBR gave Reeves’s game away ➤
Szu Ping Chan: Years of stagnation await Britain as Labour gives up on growth ➤
The winners and losers from Labour’s Budget ➤
The key points at a glance ➤
Live updates: Budget to ‘delay’ interest rate cuts ➤ |  | Lauren Davidson Executive Money Editor | The Telegraph has long been the place to go to discover smart, savvy ways to manage your money, limit your tax bill and grow your wealth.
This is even more important following Rachel Reeves’s ruthless raid. If you’re a homeowner, a landlord, an investor, a pension saver or just a gainfully-employed human, chances are you’ll be worse off following yesterday’s Budget.
Use our calculators to find out, in pounds and pence, exactly what damage the Chancellor has inflicted on your pocket:
• Salary sacrifice and rental income
• Mansion tax
• Stealth tax
• Dividends tax
• Savings tax
But all is not lost. We explain the biggest changes – and lay out the practical steps you can take to mitigate the pain.
Calculator: are you richer or poorer after the Budget? ➤
What Reeves’s manifesto-breaking Budget means for you ➤
Plus, Sam Brodbeck, our Money Editor, Mike Warburton our resident tax guru and Charlene Young, our Pensions Doctor will be answering any Budget-related questions from 9am – 12pm this morning. You can leave your questions in the comments here. | | Allister Heath In Rachel Reeves’s brave new world, meritocracy is out – redistribution, welfarism and enforced equality are in Continue reading ➤ Nigel Farage When Reform wins, we will deliver the Budget Britain needs Continue reading ➤ Tim Stanley This wasn’t a Budget, it was a personal tragedy Continue reading ➤ | Never miss a moment. Stay ahead with live news updates in our award-winning app. | | It may be one of the most significant security breaches since the Cold War. The so-called “Witi-leaks” scandal now threatens to blow the lid off Donald Trump’s efforts to end the war in Ukraine.
With Steve Witkoff, the US president’s peace envoy, being caught red-handed coaching the Russian side on how they can secure a more favourable ceasefire from his boss, the hunt is on for who made audio recordings of this phone call available to the media.
Behind the manhunt is a serious insight into how two of Vladimir Putin’s closest advisers managed to thrust Moscow’s maximalist demands to the top of a peace plan crafted by Washington.
Continue reading ➤
David Blair: I’ve seen high-level negotiations. Witkoff broke the one rule that matters ➤ | |  | | Sophia Money-Coutts with her terrier, Dennis | | Step into any local park, shout “Luna!” and at least a dozen dogs will come bounding towards you. The same goes for Bella, Milo, Teddy, Poppy... the list goes on. All these names are terribly clichéd, according to Sophia Money-Coutts. So which are respectable in 2025? Sophia reveals the answer here. Continue reading ➤ | | | On barely seaworthy canoes and ramshackle rafts, West African child migrants arrive on the shores of the Canary Islands in their hundreds each year. Crammed into foster homes, unable to speak Spanish and allowed to roam the streets of Lanzarote and Gran Canaria, they are easy pickings for paedophile gangs intent on trafficking them to mainland Europe. Here, we explore how the Canary Islands became a child sex-trafficking hub and how the authorities are struggling to stop it.
Continue reading ➤ | | When a heartbroken Richard Branson announced the death of his wife Joan, it was the end of a love story that began almost 50 years ago. After the boss of Virgin Records saw a beautiful, blonde, “down-to-earth Scots lady” making tea at his recording studio, it was love at first sight – for him. For her, it took a little longer to become the billionaire’s “guiding light”... Continue reading ➤ | | | French police have been accused of a heavy-handed approach towards English fans | | All English football fans travelling to European games know the deal: a long and laborious trip lies ahead, with 90 minutes of entertainment thrown in. But we expect safety and protection. What we don’t want is what I experienced in Marseille, writes Sam Dalling, when a perfectly savoury situation was pushed to the brink of disaster by the very people designated to look after us. Step forward the French police. Again. How English fans are treated needs to change. Continue reading ➤ | | | Duty-free ski resort Livigno in Italy is worth the journey for those on a budget | Skiing has never been a cheap pastime, but if you choose your destination with care, it is still possible to enjoy a week on the slopes without breaking the bank. From uncrowded corners of the Alps to wallet-friendly contenders beyond them, Peter Hardy, our ski expert, picks the best resorts for the budget-conscious. Continue reading ➤ Below are two more helpful articles for you this morning: | | Friends of the Royal Ballet and Opera get exclusive access to company rehearsals | One of the more enviable problems of modern life is that it can sometimes feel as though there is almost too much culture to consume. Even if you had the time, how could you catch every must-see new film, stage show, exhibition and concert without breaking the bank?
Luckily, we’ve trawled through all the best deals both for rare cultural access and great value for money to bring you the lowdown on the most worthwhile arts memberships in Britain. They’re an ideal Christmas gift for those who want experiences over just more stuff (and from those who aren’t too good with wrapping paper).
Among our favourite membership perks are The Royal Ballet and Opera’s scheme, that gives you exclusive access to full dress rehearsals and the Museums’ Association’s discounted or free entry to over 900 institutions.
See the full list here ➤ | The most important meal of the day Every weekday, Orlando Bird, our loyal Reader Correspondent, shares an off-piste topic that has brought out the best of your opinions and stories. Orlando writes...
What’s on the menu for breakfast today? Do you keep it simple with a bowl of cornflakes, or are you a full English loyalist? What goes on your toast? Perhaps you’ve gone all Californian and are settling down at this very moment to a solemn repast of precisely six flax seeds. Or maybe you’re a follower of the Thomas Skinner diet and swear by an early-morning offering of chicken tikka lasagne.
For a long time I skipped this meal altogether, thinking it might help me lose a few pounds, but I ended up just eating twice as much for lunch. So I’ve trained myself to like – or at least tolerate – bananas, which do the job quite efficiently (alongside any porridge my daughter hasn’t eaten). A tad joyless, perhaps.
Whatever your regime, if you’re looking to make it a bit healthier, The Telegraph has some tips (out with the breakfast bars). Readers have been mulling them over.
A Kilmartin suggested: “It’s good to rotate foods at meal times, including breakfasts. I often save some overnight vegetables to fry up, maybe with an egg or tomato or bacon. Each morning is different: it might be fruit, croissants, porridge, mushrooms on toast, beans on toast or a bacon sarnie.”
Edward Hogan, meanwhile, favoured “sultanas or raisins and chopped apples, softened with milk or a mixture of milk and water, added to breakfast cereal”.
Chris Hayes, responding to one point in particular, wrote: “I think I’ll risk the pork sausages and proper bacon, and go for a long walk afterwards.”
I also enjoyed this letter from Jonathan Yardley, putting in a word for the old-fashioned, unreconstructed cooked breakfast: “I work on building sites, where canteens continue to serve traditional full English breakfasts – untouched by nutritionists – for workers who still put in long, hard days. An architect will occasionally wander in and order eggs Benedict or something similar, and the whole canteen will fall silent as he is firmly told: ‘It’s not that type of café, Sir’.”
Send me your recommendations here, and the most appetising of the bunch will feature in a future edition of From the Editor PM. You can sign up here to read the responses.
Please confirm in your reply that you are happy to be featured and that we have your permission to use your name. | |
This is the new clock installed at London Bridge station to mark state ownership of the railways. How much did it cost the taxpayer? | | Find as many words as you can in today’s Panagram, including the nine-letter solution. Visit Telegraph Puzzles to play a range of head-scratching games, including PlusWord, Sorted, and Quick, Mini or Cryptic Crosswords.
Yesterday’s Panagram was IMPUDENCE. Come back tomorrow for the solution to today’s puzzle. | |
Thank you for reading. Have a fulfilling day and I hope to see you tomorrow. Chris Evans, Editor
P.S. Please let me know what you think of this newsletter. You can email me here. | |
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