Economy

There were ‘too many leaks’ ahead of the autumn Budget, Rachel Reeves admitted this morning as she faced MPs on the Treasury Select Committee. The Chancellor acknowledged there had been ‘too much speculation’ before her statement last month which was ‘inaccurate [and] very damaging’. Much of the scrutiny focused on reports that the Treasury had considered raising income tax, in what would have been a clear breach of Labour’s manifesto promises last year. In an unprecedented scene-setting speech on 4 November – three weeks before the Budget – Reeves dropped heavy hints about income tax rises. However, nine days later, it emerged this was not in fact going to happen,

God bless Netflix: I’ve just watched all 28 episodes of Foyle’s War, the 1940s detective series set in Hastings and London that first aired on ITV more than 20 years ago. Pedants may have spotted minor anachronisms or been irritated by London scenes filmed in Dublin, presumably for tax breaks. But for me, the whole oeuvre – Spitfires, ration books, moustaches and all – stands as a monument of meticulous and compelling period drama. And as an amateur actor who always struggles to keep a straight face on stage, I’m in awe of Michael Kitchen’s gift of expressing Detective Chief Inspector Foyle’s moral outrage and inner pain by the tiniest

Much of Rachel Reeves’s Budget was unprecedented: the leaking, the speculation and the OBR accidentally uploading its details an hour early. This morning, Keir Starmer added another entry on that list. The Prime Minister assembled the nation’s journalists to lecture them about the many wonderful things contained in his neighbour’s Budget – something Reeves surely ought to have done in her own speech last Wednesday. Starmer rattled off a list of policies announced last week: frozen rail fares, prescription charges and fuel duty, childcare costs slashed and £150 off energy bills. But, naturally, all the waiting hacks wanted to ask him about was the central question which dominated the weekend

This week, 17.5 million people on various benefits including the state pension and disability living allowance will receive a £10 Christmas bonus. It’s about time though, that Keir Starmer played Scrooge and finally abolished the bonus altogether. For, unlike their Dickensian forebears, poor pensioners this Christmas won’t be going without food or warmth. In fact, they have more than enough of both. When the Christmas bonus was introduced by the Tory minister Keith Joseph more than 50 years ago, the basic argument was that pensioners needed the money to cope with that year’s soaring inflation of 7.1 per cent. Although believing £10 did not go far enough, the Labour politician

I think we will look back on this week as one of the most pivotal of this government. It was the moment when Keir Starmer and Rachel Reeves revealed themselves. This week’s Budget showed clearly what Reeves’s revealed preferences are – and what they are not When we were all trying to work out what Theresa May really thought about Brexit, her chief negotiator Oliver Robbins privately told his team they should be guided by her ‘revealed preferences’. This week’s Budget showed clearly what Reeves’s revealed preferences are – and what they are not. Growth is not, as the government keeps claiming, its top priority. Growth was downgraded for every

When the ubiquitous Green party leader Zack Polanski was on the BBC’s Sunday with Laura Kuenssberg show singing the praises of wealth taxes last month, he said something that got my spider-sense tingling: ‘This isn’t about creating public investment, we can do that anyway, we don’t need to tax the wealthy to do that.’ On the face of it, this is a slightly odd thing to say. Other lefties, such as Richard Burgon MP, have argued that a wealth tax could be used to give more money to Our Precious NHS or remove the two child benefit cap. Polanski is right to say that we can have more ‘public investment’

After the frenzy of the Commons, comes the poring over the fine print. Rachel Reeves’s Budget is being studied across Westminster, following a chaotic lunchtime in which the OBR’s response was uploaded online an hour before her speech. That speech was heavily pre-briefed, with few real surprises. Taxes were hiked by £26 billion – though not as much as last year’s £32 billion. The level of fiscal headroom has been doubled to more than £22 billion. Growth will be up this year from 1 per cent to 1.5 per cent – but down from earlier projections by 2029. ‘The Chancellor is relying heavily on tax rises towards the back end