Displaying items by tag: Government

The UK’s largest tax increase since 1993 was announced as Rachel Reeves introduced a budget aimed at revitalising healthcare, education, and infrastructure. Taxes will rise by £40 billion, with employer national insurance contributions, capital gains tax, and VAT on private school fees among the primary targets. These funds, coupled with higher borrowing, aim to close a financial gap left by previous administrations, supporting the NHS, affordable housing, and transport projects. Reeves acknowledged the 'difficult decisions' required, defending these increases as essential to 'rebuild Britain' without directly impacting individual income tax, VAT, or national insurance. Critics argue, however, that these tax hikes may still burden working people indirectly. In response to Tory criticisms, Reeves insisted that Labour’s approach will prevent austerity and 'put more pounds in people’s pockets' while providing relief measures for small businesses and the retail, hospitality, and leisure sectors.

The Government is preparing a significant overhaul of workers' rights, introducing several new measures aimed at improving job security and flexibility for millions of employees. Key changes include the removal of the two-year qualifying period for unfair dismissal protection, enabling workers to receive statutory sick pay (SSSP) from their first day of illness, and giving fathers access to paternity leave from day one of employment. Also, workers will be entitled to unpaid parental and bereavement leave from day one, and employers will be expected to consider flexible working requests immediately. However, the bill has faced criticism for delays and certain measures being watered down. Small business owners have expressed concerns over the potential impact on hiring decisions, probation periods, and the management of zero-hours contracts. Trade unions have welcomed the changes but insist more needs to be done.

Kenya has officially requested the International Monetary Fund (IMF) to conduct a comprehensive review of its corruption and governance challenges. Cabinet secretary Musalia Mudavadi said that this will help the government address corruption, a persistent issue negatively impacting the economy and the livelihoods of Kenyans. President William Ruto, who has been facing pressure from widespread protests over high living costs, pledged in July to amend laws aimed at closing loopholes which enable corruption. He wants to focus on holding corrupt officials accountable, reducing government wastage, and curbing opulence among leaders. The IMF's review, which will encompass all government ministries and institutions, aligns with its previous calls for Kenya to address these challenges. Kenya hopes this effort will also secure delayed financial assistance from the IMF, crucial for its 2024/2025 budget.

The Guardian reports that the Treasury has asked ministers to prepare for cuts of up to 10% in infrastructure spending, targeting projects such as hospital upgrades, road construction, and defence initiatives. Despite Chancellor Rachel Reeves' recent commitment to increased investment to stimulate growth, the government still faces a £22 billion financial shortfall. Economists warn that cutting capital investments could harm the economy and exacerbate the country's deteriorating public infrastructure. Reeves, set to deliver her first budget on 30 October, is expected to outline tax increases to fund public services, while also addressing departmental spending limits established before inflation and rising asylum costs worsened the deficit. However, some ministers argue that short-term cuts will hinder long-term economic progress.

A devastating monsoon downpour in Nepal has led to severe flooding and mudslides, claiming over 200 lives, injuring 127, and leaving 56 missing. Rescue operations successfully saved over four thousand stranded people. However, despite warnings of more heavy rains, the prime minister admitted that he had not anticipated such flooding in Kathmandu. One critic has said that the government ‘miserably failed to not only protect people’s lives but also, according to its admission, to coordinate the resources and manpower to save them’. Even the mayor of Kathmandu struggled to mobilise resources effectively. Critics have called for a more robust disaster management strategy by revitalising the national disaster management authority, allocating resources, and involving experts. Disaster prevention and management must be a top priority, transcending political lines, to protect the nation from future crises.

Millions of pensioners will lose winter fuel payments after the Government won a Commons vote to end the universal benefit. Chancellor Rachel Reeves introduced the measure as part of an effort to address a £22 billion deficit in public finances. The payment , which had been given to all pensioners, will now be restricted to those receiving pension credit. The move, which will save around £1.5 billion annually, has drawn criticism for its sudden implementation without public consultation. 53 Labour MPs abstained from voting, and some people have vowed never to vote Labour again. One Labour MP, Jon Trickett, broke ranks and voted against the measure, citing concerns about pensioner poverty and criticising the Government for targeting the vulnerable rather than the wealthy. The winter fuel payment, introduced in 1997, was designed to help pensioners with heating costs, but its removal will affect ten million people, leaving many facing increased hardship this winter.

A major report by Lord Darzi, a widely respected surgeon and former health minister, has highlighted serious issues facing the NHS. The rapid review, completed in nine weeks, reveals that the nation's health has worsened, with rising demand for healthcare driven by poor housing, low income, and insecure jobs. Waiting targets for surgery, cancer care, A&E, and mental health services are persistently missed. GP services are overwhelmed, cancer survival rates lag behind other countries, and progress in heart disease treatment has stalled. The budget is inefficiently spent, with too much focused on hospitals and not enough on community care. Workforce challenges include a 5% drop in community nurses and nearly 20% fewer health visitors. The NHS is struggling with outdated equipment, crumbling infrastructure, and disengaged staff.  Sir Keir Starmer has responded to the report by saying that the NHS is ‘broken but not beaten’ and announcing a ten-year plan to reform the service drastically. See

The Government’s decision to release two thousand prisoners early next month to alleviate prison overcrowding has drawn significant criticism from Martin Jones, chief probation inspector. He warned that this move is fraught with risks due to the lack of resources available to monitor released offenders adequately. He feels that the Probation Service, already stretched thin, may struggle to prevent reoffending, leading to potential public safety issues. The early release scheme, announced by justice secretary Shabana Mahmood, reduces sentences 40% to 50%  for thousands of inmates, adding pressure to an overburdened probation system. Jones emphasised the inevitability of some reoffending, given the sheer volume of releases, and urged for rapid learning from mistakes when they occur. He also criticised the current lenient work-from-home policy for probation officers, highlighting its impact on accurate risk assessment. The Government, meanwhile, has announced plans to recruit one thousand extra probation officers by 2025, though they will not be ready before the early release measure ends.

The new Labour government plans to reopen two immigration detention centres, Campsfield House and Haslar, aiming to achieve the highest rate of removals of those without the right to remain in the UK since 2018. The reopened facilities will initially provide 290 beds, with the long-term goal of expanding to a thousand. This decision has attracted strong local opposition, particularly at Campsfield House, which previously faced issues like hunger strikes, self-harm, and suicides before its closure in 2019. The Home Office has emphasised that the welfare and safety of detainees are taken seriously, promising to carry out removals with dignity and respect. Additionally, Labour is increasing efforts to crack down on illegal immigration and human trafficking by establishing a new Border Security Command and deploying more intelligence officers to the National Crime Agency. These measures are part of a broader strategy to address rising immigration concerns, particularly as the number of small boat crossings continues to increase.

Rachel Reeves is preparing to implement a tough October budget that includes tax increases, spending cuts, and stricter benefit policies. Despite stronger-than-expected economic growth in early 2024, she faces a significant budget deficit, with government borrowing reaching £3.1 billion last month, more than double the amount from the previous year. Reeves had already announced initial cuts, including the scrapping of winter fuel payments for most pensioners and halting plans for social care reform. The upcoming budget is expected to raise more revenue from inheritance and capital gains taxes, maintain a 1% increase in public spending with cuts in some departments, and uphold the two-child benefit cap. Despite improved economic performance, the Treasury insists that the financial situation remains dire, with borrowing on track to exceed forecasts. Reeves argues that she inherited the worst public finances since World War II, and further tough decisions are necessary to address the substantial 'black hole' in the budget.