Politics news: Tory frontrunner dismisses ‘lazy’ claims as Speaker rants about Chancellor

We are tantalizingly close to Rachel Reeves finally delivering this government’s first budget.

You will be able to watch and follow the action live on Sky News platforms, including here on Politics Hub.

This is what we expect.

No increases in income tax, national insurance or VAT.

The Labor Party ruled out increases in income tax, national insurance and VAT in its manifesto ahead of its election, promising to protect “working people” – although who they define as a “working person” has come into question.

The Chancellor is also expected to extend a freeze on income tax thresholds by two years until 2030, after the previous Conservative government froze them until 2028.

Increase in employers’ national insurance

The amount employers pay into national insurance will increase by two percentage points, and the money will be partly used to reduce NHS waiting lists.

A government source told Sky News: “There is general consensus that the NHS needs more money.

“That means asking businesses for help.”

Housing

The government has confirmed a significant increase in affordable housing.

It says £500 million of new funding will be made available through the Affordable Housing Program to help build up to 5,000 social homes and bring total investment in housing supply to £5 billion.

£1.4 billion for crumbling schools

The Chancellor has promised £1.4 billion will be included in her budget to rebuild crumbling schools.

She said children “should not suffer” as the UK government budget depletes, while economists said funding would typically ensure existing plans continue rather than pay for a raft of new initiatives.

Funding for nurseries, breakfast clubs and childcare

The Treasury has confirmed that £1.8 billion will be allocated to expand government-funded childcare, while a further £15 million will be allocated for capital funding for school nurseries.

The Treasury said the first phase of the plan would pay for 300 new or expanded nurseries across England.

Ms Reeves also said she would “triple” investment in breakfast clubs to £30m in 2025-26 after she announced a £7m trial at the Labor party conference in September in 750 schools, which will begin in April.

VAT exemption for private schools will be canceled

The Labor Party has long made clear its plans to remove the VAT exemption and rates relief for private schools in a bid to fund 6,500 new teachers in state schools.

Details of the Government’s assessment of the expected impact of these policy changes will be published after the Budget on 30 October.

This is just two months before the policy takes effect on January 1, 2025, but military families, many of whom are now expected to send their children to private boarding schools because they can be deployed overseas on short notice , will be released.

Changes to £2 bus fare cap.

From 1 January 2023, bus fares are capped at £2 on more than 4,600 routes in England.

Hundreds of operators outside London took part in the scheme, which cost around £500 million.

But the cap, which is currently due to remain in place until at least December 31, will be raised to £3.

Billions to be given to NHS

The government is expected to provide up to £10 billion for the NHS, largely to help it cope with rising post-Covid waiting lists – currently at a record high of 7.6 million – and deliver on its promise o another 40,000 hospital visits per week.

Health Secretary Wes Streeting last week said he had agreed a plan to fund the NHS with the Chancellor, but said funds would not actually be available for up to six months.

“The budget investments that come into the new fiscal year are in April, so it’s spring,” he said.

Extension of care allowance

Ms Reeves is expected to raise the limit people can earn before they lose the right to carer’s benefit from £151 a week to £181.

This will mean tens of thousands of carers who are not currently eligible will receive an extra £81.90 a week under the scheme.