UK politics live: Rachel Reeves playing ‘same silly games’ as Tories on tax and spend, IFS warns

There was one big loser in Rachel Reeves’s historic tax-hiking Budget – the wealthy individuals who are going to have to pay for it all, says Chris Blackhurst

The Home Office is creating a new “Europe Hub” as part of Sir Keir Starmer’s drive for closer ties with the European Union.

The new unit, which will sit within the International Strategy, Engagement and Devolution Directorate, will reportedly be led by Dan Hobbs, director general of the Migration and Borders Group.

Civil servants have been told the department will have responsibility for “ensuring that our strategic approach to this work is coherent, working collaboratively across the department”.

GB News has been fined £100,000 by Ofcom after it was found to have broken impartiality rules in an interview with Rishi Sunak earlier this year.

The media watchdog concluded that the channel had given the then prime minister a “mostly uncontested platform” to promote the policies and performance of his government as he answered questions put to him by a studio audience and a presenter.

Ofcom began the investigation into GB News three days after the airing of a programme on February 12, titled People’s Forum: The Prime Minister.

The NHS’ workload is “likely to go up, not down”, Sir Keir Starmer said, as he hinted at reforms the government might make to assist healthcare staff.

At a Q&A in the West Midlands, the PM said: “I also want to be honest with you, we are going to be asking more of you. There’s no point me standing here and saying your workload will go down.

“The whole point is people are living longer. They’ve got more conditions, what the NHS is facing now is different to what it was facing in the post-war period, your workload is likely to go up, not down.”

The Prime Minister signalled administrative change was among the reforms he was planning, including “making sure that AI and technology is your friend” to prevent duplication of records.

Rachel Reeves, meanwhile, criticised the previous government for “always raiding the capital budgets” and taking funding away from investment.

The chancellor said: “We have got to make those longer-term investments to drive those productivity and efficiency reforms as well.”

The prime minister and chancellor are talking to staff at University Hospitals Coventry and Warwickshire.

Sir Keir was thanked for the extra NHS funding by Dr Amy Burridge, a consultant in acute medicine, but she asked how that income could deal with staffing gaps and burnout

Sir Keir said the first thing his government would provide was a “mindset change” from the Tories, who he said “blamed” NHS staff for problems in the service.

He said the Government would “really go much much faster on the technology that you need to take some of the weight off”.

The PM added: “Look, I’m not going to pretend that by next week it will all be fixed, because too many politicians have done that.

“It is going to take time, but what we did in the Budget yesterday is the first step, the down payment if you like, down that road, to make sure that you can do your jobs better and we can have the NHS that we need.”

Jeremy Hunt has confirmed he is stepping down from the Conservative frontbench, calling for his party to be “humble” following July’s election defeat.

The decision comes just hours before the Tory leadership race comes to an end, with polls closing at 5pm on Thursday.

On Saturday morning, either Robert Jenrick or Kemi Badenoch will be crowned the new party leader.

Mr Hunt, who served as chancellor under Rishi Sunak’s Conservative government and is currently the shadow chancellor, confirmed he will be stepping back from the role following Wednesday’s budget.

TV presenter Kirstie Allsopp has accused the chancellor of ushering in the break-up of farms and estates by imposing a new 20 per cent inheritance tax on such assets over £1m.

Farming and landowner organisations also warned the change, announced in Wednesday’s Budget, would lead to the “death of the family farm” because owners would sell up to pay the tax.

Rachel Reeves said from April 2026, the first £1m of combined business and agricultural assets would continue to attract no inheritance tax, but for assets over that sum inheritance tax would apply.

The National Institute of Economic and Social Research has warned that businesses face higher employment costs due to Rachel Reeves Budget.

The NIESR said the rise in national minimum wage and higher employer contributions through National Insurance contributions will have a negative impact on employment in growth.

It added this would especially impact low-paid sectors such as hospitality.