UK Politics Live: Reeves Refuses To Rule Out Capital Gains And Inheritance Tax Raids As PM Vows Germany Treaty
NewsUKUK PoliticsKeir Starmer accused of planning a middle class tax raid during ‘painful’ October Budget
Keir Starmer and Olaf Scholz shake hands as prime minister arrives in Berlin
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Chancellor Rachel Reeves has refused to rule potential increases on capital gains tax warning that Labour will “have to make difficult decisions in a range of areas”.
Sir Keir Starmer has been accused by the Tories of planning to hike capital gains and inheritance tax in a fresh “raid on pensions”. Shadow chief secretary to the Treasury Laura Trott claimed the government will bring “ruinous tax rises”.
It comes as the prime minister warned the nation will face a “painful” October Budget and claimed the country must accept “short-term pain” for “long-term good” during a speech on Tuesday.
He said those with the “broadest shoulders” will carry the heaviest burden, insisting taxes on “working people” including national insurance, VAT and income tax will not be increased in the 30 October budget.
Sir Keir, who is in Berlin, announced the UK will work towards a “once-in-a-generation” treaty with Germany in a bid to boost post-Brexit trade.
In a press conference with chancellor Olaf Scholz, the PM said a new treaty between the two countries will help “deliver for working people” and create “deeper links on science, technology, development, people, business, and culture”.
1724845530Drivers warned to prepare for fuel duty riseDrivers are being warned to expect a fuel duty rise in the Government’s forthcoming Budget.
The RAC issued the alert after Prime Minister Sir Keir Starmer said there was a £22 billion “black hole” in the public finances. A 5p per litre cut in fuel duty was introduced by the Conservative government in March 2022.
Before this, fuel level had been frozen at 57.95p since March 2011. VAT is charged at 20 per cent on top of the total price. RAC head of policy Simon Williams said Chancellor Rachel Reeves has “no option but to put fuel duty back up to 58p a litre in October’s Budget”.
He went on: “She knows the 5p discount is losing the Treasury £2 billion a year. She also knows drivers were overcharged by a staggering £1.6 billion last year according to the Competition and Markets Authority’s recent report.
“We’d normally be against any increase in duty, but we’ve long been saying drivers haven’t been benefiting from the current discount due to much higher-than-average retailer margins.
“As more and more electric vehicles come on to the roads, the Government will need to tax drivers differently.
“We think replacing fuel duty with a pay-per-mile system as soon as possible is the way forward as then the only tax levied on fuel would be VAT. This would give retailers nowhere to hide.”
The RAC is calling on retailers to slash fuel prices to reflect lower wholesale costs.
(Peter Byrne/PA Wire)Salma Ouaguira28 August 2024 12:45
1724844930UK’s data protection watchdog is taking action against the Labour The UK’s data protection watchdog is taking action against the Labour Party for “repeatedly failing” to respond to people who asked what personal information the party held on them.
The Information Commissioner’s Office (ICO) said the Labour Party received 352 subject access requests (SAR) in November 2022, but 78% did not receive a response within the maximum compulsory time limit of three months and over half (56%) were significantly delayed by over one year.
The backlog of SARs developed following a cyber attack on the Labour Party in October 2021, which led to an increase in requests from the public.
Deputy Commissioner at the ICO, Stephen Bonner, said: “Being able to ask an organisation ‘what information do you hold on me?’ and ‘how it is being used?’ is a fundamental right, which provides both transparency and accountability. It is vital that organisations do not underestimate the importance of responding to these requests on time.
“The public need to fully trust that a political party will handle their data correctly and respect their information rights. We welcome news that the Labour Party has now cleared its backlog of SARs and implemented further measures to ensure people receive a prompt response going forward.”
Salma Ouaguira28 August 2024 12:35
1724843919Starmer accused of plotting capital gains tax raid on middle classesThe Tories have warned Sir Keir Starmer is planning to hike capital gains tax and inheritance tax and a raid on pensions.
The prime minister said the nation is braced for a “painful” October Budget and claimed the country must accept “short-term pain” for “long-term good” in a speech from Downing Street.
Shadow chief secretary to the Treasury Laura Trott said: “Starmer’s speech has made it clear. Ruinous tax rises, which he’s always planned, are on the way.
“Pensions, investments, homes – nothing will be safe. And, when introduced, he will have broken his election promise to the British people.”
Experts have predicted Rachel Reeves will increase capital gains tax to align it with income tax to 45 per cent.
Ms Trott added: “Increasing tax is a political choice. One (Sir Keir) has chosen to make so he can afford inflation-busting payouts to his union paymasters.”
Former chief secretary to the Treasury Laura Trott said the department was in disarray under Labour (Jordan Pettitt/PA) (PA Wire)Salma Ouaguira28 August 2024 12:18
1724843730Lib Dems hail German-UK treaty ‘positive step forward’The Liberal Democrats have said Sir Keir Starmer’s treaty talks with German Chancellor Olaf Scholz are a “positive step forward” but called on the Government to be “more ambitious”.
Lib Dem foreign affairs spokeswoman Layla Moran MP said: “This is a positive step forward after years of the Conservatives trashing the UK’s relationship with Europe.
“But the new Government needs to be more ambitious about rebuilding stronger ties with our European allies.
“That should start with agreeing a Youth Mobility Scheme giving young people the opportunity to easily live and work across the continent.”
Lib Dem MP Layla Moran (PA Archive)Salma Ouaguira28 August 2024 12:15
1724842983UK and Germany to discuss deal on irregular migration A UK-Germany deal on irregular migration could allow the two countries to better “deal with issues like data sharing, intelligence sharing, what we can do on joint operations”, the prime minister said.
Taking a question about immigration, Sir Keir Starmer replied: “On the wider question of irregular migration and the particular issue that we have in the UK of small boats crossing the Channel, I have long said before the election that I thought the Rwanda scheme was a gimmick, which is why we stood it down immediately.
“But nonetheless, it is very important we take back control of our borders. I have long been convinced that the best way, the most effective way to do that is to take down the gangs that are running the vile trade of putting people in dangerous situations across Europe and across the Channel.”
The Prime Minister said his “substantive discussions” with German Chancellor Olaf Scholz and proposals for a joint agreement on immigration would help the pair “deal with issues like data sharing, intelligence sharing, what we can do on joint operations, because that is the way to take effective action in relation to the vile trade that sits beneath irregular migration across Europe and in particular sits beneath the vile trade of putting people into small boats across the Channel”.
Mr Scholz had previously said, according to a translation: “The state has to contain irregular immigration so as to not overburden the country. This can and must succeed without questioning our basic law and also international treaties.”
Salma Ouaguira28 August 2024 12:03
1724841721Summary: Keir Starmer press conference in Germany Sir Keir Starmer has held a press conference with the German chancellor Olaf Scholz following their bilateral meeting to discuss a post-Brexit deal between both countries.
The press conference has now ended, here are the key takeaways:
The prime minister said a new defence agreement is “at the heart” of the UK’s relationship with Germany.He defined the new agreement “a testament to the depth and potential of our relationship with deeper links on science, technology, development, people, business, culture, a boost to our trading relations”.Sir Keir insisted “we will not reverse Brexit” but he will seek closer ties with Europe. The PM and Mr Scholz have agreed to develop a “joint action plan to tackle illegal migration”He also said that “we do not have plans for a youth mobility scheme”.Sir Keir said he hopes the UK’s treaty with Germany will be agreed before the end of the year as he hailed a “bright new future for UK-German relations”.
German Chancellor Olaf Scholz and British Prime Minister Keir Starmer attend a press conference in Berlin, Germany (REUTERS)Salma Ouaguira28 August 2024 11:42
1724841250UK-Germany treaty to be agreed by the end of the yearPrime minister Sir Keir Starmer said he hopes the UK’s treaty with Germany will be agreed before the end of the year as he hailed a “bright new future for UK-German relations”.
Speaking at a press conference in Berlin alongside German chancellor Olaf Scholz, Sir Keir said: “As today shows, Britain can advance its interests much more effectively when we work with friends and partners.
“This treaty is part of a wider reset, grounded in a new spirit of cooperation with our shared understanding that this will be developed at pace, and that we hope to have agreed it by the end of the year.
“A Britain recollected, resetting our relationship, rediscovering our common interests, delivering for working people.
“Britain and Germany already have an incredible relationship. We invest billions in each other’s countries. Thousands and thousands of jobs are supported through trade, and every year millions of people travel between our two countries, exchanging ideas, collaborating, creating and connecting.
“But today we build on that, a bright new future for UK-German relations, two great countries brought closer together than ever before. The strongest strategic partners in Europe, and on the world stage.”
Salma Ouaguira28 August 2024 11:34
1724840893German chancellor vows to ‘do everything in his power’ to boost UK-EU relationOlaf Scholz has pledged to do everything in his power to improve the relationship between the UK and the European Union.
Speaking from Berlin, he said: “We want to create good relations between the UK and the EU, it can become better day by day and we all share an interest.”
The German chancellor added that “there is reason to do everything in our power to improve relations” between Britain and the EU.
(AP)Salma Ouaguira28 August 2024 11:28
1724840615Starmer declares UK and Germany ‘closer than ever before’Sir Keir Starmer has promised the new UK-Germany post-Brexit agreement will bring the two countries “closer together than ever before”.
During the press confernece in Berlin, the prime minister said: “A Britain reconnected, resetting our relationship, rediscovering our common interests, delivering for working people.
“Britain and Germany already have an incredible relationship. We invest billions in each other’s countries. Thousands and thousands of jobs are supported through trade.”
The PM added: “Today we build on that. A bright new future for UK-German relations. Two great countries brought closer together than ever before.”
(REUTERS)Salma Ouaguira28 August 2024 11:23
1724840385Starmer rules out youth mobility scheme with the EUSir Keir Starmer has ruled out creating a new youth mobility scheme to allow the exchange of people under 30s to work in the UK.
Asked whether the scheme will be included in the negotiations, he said: ”We want a reset with the EU, that does not mean reversing Brexit or entering the single market.
“We do not have plans for the youth mobility scheme,” he said but added the Labour government has plans to imrove the relation between the EU and the UK.
Salma Ouaguira28 August 2024 11:19
