Chancellor Rachel Reeves has launched a £500 million fund to help struggling families and children. The cash could be used to cut truancy, keep young people out of crime or help prepare them for work.
The Better Futures Fund aims to raise cash from local government, social investors, and philanthropists, on top of the government’s funding. Ms Reeves launched the initiative today as she visited a school in Wigan.
But it comes at a difficult time for the Chancellor, after a Cabinet minister dropped heavy hints yesterday that she will be forced to impose tax rises on the wealthy after spending billions more than planned on benefits. The economy contracted by 0.1% in May and 0.3% in April.
When asked about tax hikes, Ms Reeves did not rule out the possibility of a new wealth tax but insisted commitments not to clobber “working people” remained.
Chancellor pictured on school visit
Rachel Reeves has been pictured on a visit to a school in the North West as she launched a new £500 million fund to support vulnerable children and families across the country.
(Image: Getty)
(Image: Getty)
Reeves refuses to be drawn on tax hikes
Chancellor Rachel Reeves would not be drawn on potential tax changes beyond restating the Labour manifesto commitment not to increase VAT, income tax or national insurance for workers.
She told reporters: “We haven’t even set the date for the budget yet, so please forgive me if I’m not going to speculate about what might happen at an event that we haven’t even decided a date on yet.
“But we’ve been really clear in our manifesto about the taxes that we won’t increase, and we’re not going to increase the taxes that working people pay, their income tax, their national insurance and their VAT, because I do recognise the struggle that ordinary working people have faced these last few years with the cost of living.
“And so those manifesto commitments around income tax, national insurance and VAT, they absolutely stand.”
She added that her fiscal rules were “non-negotiable” as “they are what give working people security, around interest rates for example”.
“Interest rates have come down four times in the last year under this Labour Government because of the stability that we’ve managed to return to the economy, which is underpinned by those fiscal rules, which have enabled the Bank of England, to cut interest rates.”
Starmer to meet Trump later this month
Sir Keir Starmer will meet Donald Trump when the US president makes a private trip to Scotland next month ahead of his second state visit to the UK.
A Downing Street spokesman said: “The White House has confirmed that President Trump will be making a private visit to Scotland later this month.
“Given he is visiting a private capacity, there will not be a formal bilateral but the Prime Minister is pleased to take up the president’s invite to meet during his stay.”
LibDems call for Mark Carney state visit as Trump rebuke
The LibDems have said Keir Starmer should invite Candidate PM Mark Carney to Britain for a state visit ahead of Donald Trump, as a rebuke to Donald Trump.
Ed Davey said: “The Prime Minister should invite Mark Carney for an official visit to the UK just ahead of Trump’s visit, including the opportunity to address Parliament. This would send an important signal that Britain stands shoulder to shoulder with Canada against Trump’s chaotic trade war.”
Farage demands Trump speech during state visit
Nigel Farage has said Donald Trump must be allowed to deliver a speech to parliament during his state visit in September.
The President will come to the UK just a day after MPs depart Westminster for their annual conference recess, denying him the opportunity of a speech for a second time.
When asked if MPs should be recalled, he said: “Without doubt – the USA is our most important ally.”
Labour minister grilled on reports tax won’t be hiked for people on ‘modest incomes’
On reports that the government won’t increase taxes for “people on modest incomes”, Chief Secretary to the Treasury Darren Jones told LBC: “Pur commitment as I say is not to increase the headline rates of income tax or employee national insurance.”
Top Tory says unfair to tax six figure earners 60%
The Tory shadow chief secretary to the Treasury Richard Fuller says it “clearly isn’t fair” that earners who go above £100,000 a year face a marginal tax rate of 60%.
Speaking on Sky News Mr Fuller argued regardless of income level, Britain’s tax system “isn’t an efficient system” and the government must look at ways to improve things.
“There are other taxes that aren’t particularly efficient in terms of getting economic growth, such as stamp duty/land tax.
“The Chancellor should be going through all of these tax measures, if she’s really committed to growth, and be fearless. When she talks about fairness and economic growth she has to realise those things don’t completely align. So if she’s looking at economic growth she has to look for some of the tax inefficiencies that inhibit growth.”
