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UK Income Tax and the 2025 Budget: Will She Or Won’t She ?

  Rachel Reeves has a thorny problem on her hands.  She needs to decide within the next 3 weeks (i.e. before the budget on Nov 26 th ) whether to break the key manifesto promise Labour made in order to get themselves elected in 2024, i.e. not to raise Income Tax, VAT or National Insurance. She knows that breaking this promise will be a highly unpopular move, not least with her back-bench colleagues, and doing so, however justifiably in her eyes, could spell electoral suicide for the party. If the opinion polls are anything to go by, the process of Labour's decline started as soon as she announced the near abolition of  WFP last July; it could really start to snowball in May of next year, in the aftermath of the predicted whitewash of Labour seats in the next round of local elections. The chancellor is also facing the increasingly gloomy financial outlook for the UK prophesied by the OBR, and is desperate to give herself as much financial ‘headroom’ as possible wit...

‘Stop the Boats’ – An Innovative Solution ?

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As a postscript to this rather 'off the wall' suggestion, it's obvious that this government is no further forward than the last at solving the small-boats problem, having ditched their Rwanda plan immediately on assuming office and not really putting anything more effective in its place.  The belated returns agreement with the French, trumpeted so enthusiastically earlier this year, has so far only managed to deport a handful of illegals, at least two of which have already tried their luck again via the same route (and those are just the ones Border Force have actually detected).  All the more reason to let the 'marine experts' have a go - I'm sure they'd find a way to disable an outboard motor just as easily as a fishing boat's rudder ! I doubt whether many others would risk the trip in a dinghy after that.... ---------------------------------- I last published in April on the whys and wherefores of our ‘broken’ immigration system .  By that stage the g...

UK Prisons: The Great Escape

  Our prison system does appear to be in something of a crisis at present.... It has been full to bursting over at least the last 5 years. Reasons quoted for this include lack of investment by successive governments, over-enthusiastic sentencing policies., etc , etc.  No doubt the current administration will at some stage attempt to blame it exclusively on the now infamous ‘Tory Black Holes’ as they do for most other things that have already failed, or are currently failing, under their watch….(I wouldn't be surprised if they even blamed the Tories for their own administration's eventual demise at the hands of Reform!) The sad fact is that we really can’t afford to imprison as many people as we do – not surprising given that the current cost of maintaining one prisoner in jail for a year is now well north of £50k. Building new prison estate to modern standards, let alone replacing all our Victorian jails as we ideally should, would cost tens if not hundreds of billions....

Winter Fuel – They Thought it was All Over - It isn’t

  This summer, Labour back-benchers finally managed to force Starmer to backtrack on the draconian restrictions to Winter Fuel Payments (WFP) first announced by Reeves shortly after the election i n July 2024. For that we should certainly be grateful to them. They weren’t, however, able to reverse the damage caused by this ill-considered measure completely. Instead of agreeing to re-instate the benefit for everyone and acknowledge it was all a terrible mistake, Starmer and Reeves insisted on attempting to 'save face' by applying a means test based on an income threshold of £35k p.a. This didn't cut much ice with the electorate if the polls are anything to go by, but it has set the scene for yet more pain for both the leadership and the Party…. Let’s take look at the practical implications of this move to find out why.... The plan now is for DWP to reinstate the £200 (£300 for over 80s) payment for all pensioners who were claiming their entitlement in 2024 before th...