Politics latest: Starmer announces bus fare increase

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

You can watch and follow live on Sky News platforms, including here in the Politics Hub.

This is what we expect.

No increases in income tax, national insurance or VAT

Labor ruled out raising income tax, national insurance and VAT in its manifesto before being elected, and pledged to protect “working people” – although there are questions about who they define as a “working person”.

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

Increase in national insurance for employers

The amount employers pay into national insurance is expected to rise by up to two percentage points, and the money will be used – in part – to inject money into reducing NHS waiting lists.

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

“That means we have to ask companies to help.”

Housing

The government has confirmed a major push on affordable housing.

It says there will be £500 million of new funding to help build 5,000 social homes and bring total investment in housing supply to £5 billion as part of the Affordable Homes Programme.

£1.4 billion for crumbling schools

The Chancellor has promised her budget will include £1.4 billion to rebuild crumbling schools.

She said children “should not suffer” as a result of Britain’s depleted treasury, while economists said the funding would generally ensure existing plans continue, rather than paying for many new initiatives.

Funding for nurseries, breakfast clubs and childcare

The Treasury has confirmed that £1.8 billion will be allocated to expanding publicly funded childcare, with a further £15 million in capital funding for school daycare centres.

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

Ms Reeves also said she would “triple” investment in free breakfast clubs to £30 million by 2025-26, after announcing at the Labor party conference in September a £7 million trial in up to 750 schools due to start in April .

VAT exemption for private schools will be scrapped

Labor has long made clear its plans to scrap the VAT exemption and business 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 when the Budget is released on October 30.

This is just two months before the policy is scheduled to take effect on January 1, 2025, but it is now expected that military families, some of whom send their children to private boarding schools because they may be deployed abroad at short notice, will doing. are exempt.

Changes to the £2 bus fare limit

Since January 1, 2023, bus fares on more than 4,600 routes in England have been capped at £2.

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

But the limit, which is currently due to run until at least December 31, will be increased to £3.

Billions should be allocated to the NHS

The government is expected to set aside up to £10 billion for the NHS, largely to help it tackle growing post-COVID waiting lists, currently at a record high of 7.6 million, and to fulfill their promise of a further 40,000 hospital appointments per week to achieve.

Health Secretary Wes Streeting said last week that he had agreed a plan for NHS funding with the chancellor, but noted that the funds would not actually be available for another six months.

“Investments in the budget, they come in the new budget year in April, so that is spring,” he said.

Expansion of informal care allowance

Ms Reeves is expected to increase the limit people can earn before they become ineligible for Carers Allowance from £151 a week to £181.

It would mean tens of thousands of carers who are not currently eligible would receive an extra £81.90 per week under the scheme.