Live: Rachel Reeves delivers tax-raising Budget

All eyes were on Rachel Reeves today as the UK’s first female Chancellor of the Exchequer delivered her inaugural Budget in the House of Commons setting out Labour’s fiscal priorities.

She confirmed a £25 billion raid on employers’ national insurance contributions and a £2.5 billion increase in capital gains tax by increasing the lower rate from 10% to 18% and the higher rate from 20% to 24%.

She also confirmed Government departments will be required to meet a 2% “productivity, efficiency and savings target”.

2.22pm

Mr Sunak said: “Today the Chancellor has launched an enormous borrowing spree, saddling our children and grandchildren with billions upon billions of pounds more debt, pushing up interest rates, leaving our economy more exposed to future shocks and leading the OBR today to now forecast higher inflation in every year of the forecast.

“Her decision to let borrowing rip make a total nonsense of her claims on the state of the public finances, because if they were truly in such a dire strait, as she has said, what we should have seen today was a significant reduction in borrowing to repair them, not the splurge that she has just unleashed.”

He accused the Chancellor of “fiddling the figures” and “delivering a tidal wave of anti-business regulations” and claimed the Labour Party is led by people “who have no experience of business”.

He said: “She specifically told the British people she wouldn’t change the debt target because, and I quote she said, ‘I’m not going to fiddle the figures to get better results’.

“But that is exactly what she has done. She has gone back on her word and fiddled the figures so that she can borrow billions more. Broken promise after broken promise, and working people will pay the price.”

2.21pm

Mr Sunak has accused Labour of “damaging the British economy for political purposes”.

The leader of the Opposition and former chancellor said: “The rhetoric of this Chancellor and this Prime Minister damaging the British economy for political purposes.

“You only need to look at the facts to see the Chancellor’s claims about her economic inheritance are nonsense. Labour inherited an economy with inflation back at its 2% target, mortgage rates being cut, and unemployment low.

“And when we left office, the United Kingdom was the fastest growing advanced economy in the world.”

He claimed Rachel Reeves inherited lower borrowing rates than France, America, Italy and Japan and the lowest debt in the entire G7.

Mr Sunak added: “Labour’s claims about their inheritance are purely ludicrous. These are her choices. So stop blaming everyone else and take responsibility.”

2.15pm

Labour’s inheritance is a “world away” from the “genuinely bleak legacy” of the Tony Blair and Gordon Brown era, Rishi Sunak has claimed.

The leader of the Opposition told the Commons: “The Chancellor (Rachel Reeves) and Prime Minister (Sir Keir Starmer) have tried to say that they had no choice but be in no doubt, their misleading claims about the state of the economy are nothing but a cynical political device.

“Today’s situation is a world away from the genuinely bleak legacy that we Conservatives inherited from the last Labour government.

“Borrowing – the Chancellor forgot to point out – borrowing: £1 in every four that they spent. Debt rising every year. And unemployment at 8%.”

Turning to the Office for Budget Responsibility, Mr Sunak said: “The OBR has in fact declined to back up her claims of a fictional £22 billion black hole. It actually appears nowhere in their report. It is deeply, deeply disappointing that she has sought to politicise the independent OBR that should be above party politics.”

2.13pm

Stormont Finance minister Caoimhe Archibald has welcomed the reinstatement of two stalled growth deals for Northern Ireland.

Her comments come after Chancellor Rachel Reeves confirmed the deals for the Causeway Coast and Glens region and the Mid South West region would now proceed.

2.09pm

Leader of the Opposition Rishi Sunak has warned that Britain’s poorest pensioners have been “squeezed” in Rachel Reeves’ Budget.

He told the Commons: “Britain’s poorest pensioners squeezed, welfare spending out of control and a streak of tax rises they promised the working people of this country they would not do.

To shouts of “up” from his own benches, the former prime minister and chancellor said: “National insurance, up. Capital gains tax, up. Inheritance tax, up. Energy taxes, up. Business rates, up. First-time buyer stamp duty, up. Pensions tax, up. They have fiddled the figures.”

Nus Ghani, deputy speaker, called on MPs to “simmer” after shouts from both sides of the House.

2.08pm

Gary Smith, GMB general secretary, said: “After 14 years of chaos and failure, it’s great to see a serious budget that focuses on the big issues facing our country.

“Much-needed money for schools, including SEND, hospitals and a hefty wage rise for millions of low paid workers is something to be celebrated.”

2.07pm

Chancellor Rachel Reeves spoke for 77 minutes, meaning her Budget speech was longer than any of those delivered by her Conservative predecessors between 2010 and 2024.

The longest Budget speech delivered during that period was by Philip Hammond in October 2018, which lasted 71 minutes.

Ms Reeves’ speech was also nearly 20 minutes longer than the last time a Labour chancellor delivered a Budget, which was in March 2010 when Alistair Darling spoke for 58 minutes.

2.04pm

Chancellor Rachel Reeves took around 77 minutes to deliver her Budget.

In her concluding remarks, Ms Reeves told the Commons: “The choices that I have made today are the right choices for our country – to restore stability to our public finances, to protect working people, to fix our NHS and to rebuild Britain.

“That doesn’t mean these choices are easy, but they are responsible. If the party opposite disagrees with the choices that I have made then they must answer: What choices would they make?

“Would they again choose the path of irresponsibility – the path taken by Liz Truss – and ignore the problems in our public finances altogether? If that is their choice, they should say so.

“But let me be clear, if they disagree with my choices on tax then they would not be able to protect working people. If they disagree with our plans to fund public services then they would have to cut schools and hospitals, and if they disagree with our investment rule then they would have to delay or cancel thousands of projects which drive growth across our country.

“This is a moment of fundamental choice for Britain. I have made my choices. The responsible choices: to restore stability to our country, to protect working people, more teachers in our schools, more appointments in our NHS, more homes being built, fixing the foundations of our economy, investing in our future, delivering change, rebuilding Britain.”

2.02pm

The Office for Budget Responsibility said Rachel Reeves’ plan “delivers a large, sustained increase in spending, taxation, and borrowing”.

Public spending increases by almost £70 billion a year over the next five years.

“As a result, the size of the state is forecast to settle at 44% of GDP (gross domestic product) by the end of the decade, almost five percentage points higher than before the pandemic.”

Half of the increase was funded through tax hikes raising around £36 billion a year and pushing the tax take to a “historic high of 38% of GDP by 2029-30”.

The other half is funded by £32 billion a year of increased borrowing, which the OBR called “one of the largest fiscal loosenings of any fiscal event in recent decades”.

1.58pm

Ms Reeves said £1 billion will be allocated to upgrading NHS buildings which are in “disrepair”, and £1.5 billion will go towards new hospital beds.

She told the Commons: “Many NHS buildings have been left in a state of disrepair, so we will provide £1 billion of health capital investment next year to address the backlog of repairs and upgrades across the NHS estate.

“To increase capacity for tens of thousands more procedures next year, we will provide a further £1.5 billion, for new beds in hospitals across the country, new capacity for over a million additional diagnostic tests, and new surgical hubs and diagnostic centres, so that those people waiting for their treatment can get it as quickly as possible.

“The Health Secretary will be announcing the details of his review into the New Hospital Programme in the coming weeks… and publishing in the new year… but I can tell the House today… that work will continue at pace to deliver those seven hospitals affected including West Suffolk Hospital in Bury St Edmunds and Leighton Hospital in Crewe.”

1.52pm

The Chancellor announced a £22.6 billion increase in the day-to-day health budget.

Announcing the Government’s plans for the NHS, Ms Reeves told the Commons: “In the spring, we will publish a 10-year plan for the NHS to deliver a shift from hospital to community, from analogue to digital, and from sickness to prevention. Today, we are announcing a down payment on that plan to enable the NHS to deliver 2% productivity growth next year.”

She added: “Today, because of the difficult decision that I have taken on tax, welfare and spending, I can announce that I am providing a £22.6 billion increase in the day to-day health budget, and a £3.1 billion increase in the capital budget, over this year and next year.

“This is the largest real-terms growth in day-to-day NHS spending outside of Covid since 2010.”

1.52pm

The Chancellor has unveiled plans for 11 new green hydrogen projects across England in addition to GB Energy and the Government’s investment into carbon capture and storage.

Rachel Reeves told the Commons: “Earlier this month, we announced a significant multi-year investment between Government and business into carbon capture and storage, creating 4,000 jobs across Merseyside and Teesside.

“Today, I am providing funding for 11 new green hydrogen projects across England, Scotland and Wales – among the first commercial-scale projects anywhere in the world – including in Bridgend, East Renfrewshire and in Barrow-in-Furness.

“We are kick-starting the Warm Homes Plan by confirming an initial £3.4bn over the next three years to transform 350,000 homes, including a quarter-of-a-million low-income and social homes.

“And we will establish GB Energy, providing funding next year to set up Great British Energy at its new home in Aberdeen.”

1.52pm

The Transpennine railway route upgrade between York, Leeds, Huddersfield and Manchester is secured under Chancellor Rachel Reeves’ first Budget, she has announced.

Ms Reeves said the money would deliver “fully electric local and regional services between Manchester and Stalybridge by the end of this year, with a further electrification of services between Church Fenton and York by 2026 to help grow our economy across the North of England, with faster and more reliable services”.

1.50pm

Ms Reeves said £500 million will be spent on improving broadband connectivity across the country.

Announcing the Government’s investment plans, she told the Commons: “For our world-leading creative industries, we will legislate to provide additional tax relief for visual effect costs in film and TV, and we are providing £25 million for the North East Combined Authority, which they plan to use to remediate the Crown Works Studio site in Sunderland, creating 8,000 new jobs.

“To unlock these growth industries of the future, we will protect Government investment in research and development with more than £20 billion of funding.

“This includes at least £6.1 billion to protect core research funding for areas like engineering, biotechnology and medical science, through Research England, other research councils, and the national academies.

“We will extend the Innovation Accelerators programme in Glasgow, in Manchester and in the West Midlands.

“And with over £500 million of funding next year, the Science, Technology and Innovation Secretary (Peter Kyle), will continue to drive progress in improving fast, reliable broadband and mobile coverage across our country, including in rural areas.”

1.50pm

The Chancellor has announced £1.4 billion to rebuild more than 500 schools as part of a 19% real-terms increase in the Department for Education’s capital budget, along with £2.1 billion for school maintenance.

1.48pm

Setting out the Government’s investment plans, Chancellor Rachel Reeves said: “Today we are confirming our plans to capitalise the National Wealth Fund, to invest in the industries of the future, from giga-factories, to ports, to green hydrogen.

“Building on these investments, the Business Secretary (Jonathan Reynolds) is driving forward our modern industrial strategy, working with businesses and organisations like Make UK to set out the sectors with the biggest growth potential.

“Today, we are confirming multi-year funding commitments for these areas of our economy, including… nearly £1 billion for the aerospace sector to fund vital research and development, building on our industry in the East Midlands, the South West and Scotland.

“Over £2 billion for the automotive sector to support our electric vehicle industry and develop our manufacturing base, building on our strengths in the North East and the West Midlands.

“And up to £520 million for a new Life Sciences Innovative Manufacturing Fund.”

1.47pm

Introducing the Government’s four “guardrails”, Ms Reeves said: “So that we drive the right incentives in government investments, we will introduce four key guardrails to ensure capital spending is good value for money and drives growth in our economy.

“First, our portfolio of new financial investments will be delivered by expert bodies like the National Wealth Fund and must, by default, earn a rate of return at least as large as that on gilts.

“Second, we will strengthen the role of institutions to improve infrastructure delivery. Third, we will improve certainty, setting capital budgets for five years and extending them at spending reviews every two years.

“Finally, we will ensure there is greater transparency for capital spending, with robust annual reporting of financial investments, based on accounts audited by the National Audit Office, and made available to the Office for Budget Responsibility in every forecast.

“Taken together with our stability rule, these fiscal rules will ensure that our public finances are on a firm footing, while enabling us to invest prudently alongside business.”

1.45pm

The Government is “committing the funding required” to begin tunnelling work to bring HS2 to London Euston station, the Chancellor announced.

1.43pm

The Chancellor said debt will be defined as “public sector net financial liabilities”.

She said: “As set out in our manifesto, we will target debt falling as a share of the economy.

“Debt will be defined as public sector net financial liabilities, or ‘net financial debt’, for short – a metric that has been measured by the Office for National Statistics since 2016, and forecast by the Office for Budget Responsibility since then too.

“Net financial debt recognises that government investment delivers returns for the taxpayer, by counting not just the liabilities on a government’s balance sheet, but the financial assets.”

1.42pm

Ms Reeves announced “over £5 billion of Government investment” in housebuilding and £1 billion of funding to remove dangerous cladding next year.

1.40pm

Regions in Scotland and Northern Ireland will receive new growth deals, the Chancellor has said.

Rachel Reeves told the Commons: “To support growth, including in our rural areas, we will proceed with city and growth deals in Northern Ireland – in Causeway Coast and Glens, and Mid South West. And we will drive growth in Scotland, a key priority for Scottish Labour and our leader Anas Sarwar, including a city and growth deal in Argyll and Bute.

“This Budget provides the devolved governments with the largest real-terms funding settlement since devolution, delivering an additional £3.4 billion for the Scottish Government through the Barnett formula, funding which must now be spent effectively to improve public services in Scotland.”

Turning to Barnett consequentials for Cardiff Bay and Stormont, the Chancellor said: “This budget also provides £1.7 billion to the Welsh Government and £1.5 billion to the Northern Ireland Executive in 2025-26.”

She had earlier announced £25 million for the Welsh Government “next year for the maintenance of coal tips to ensure we keep our communities safe”.

1.38pm

Ms Reeves said there would be a “significant real-terms funding increase” for local government next year, noting this included £1.3 billion of additional grant funding to deliver “essential services”.

The Chancellor said there would be at least £600 million in grant funding for social care and £230 million to tackle homelessness and rough sleeping.

Ms Reeves also said: “We are today confirming that Greater Manchester and the West Midlands will be the first mayoral authorities to receive integrated settlements from next year, giving mayors meaningful control of the funding for their local areas.”

1.37pm

On education, Ms Reeves said there would be a “tripling” of investment in breakfast clubs to fund the service in thousands of schools.

The Chancellor also told the Commons: “I am increasing the core schools’ budget by £2.3 billion next year to support our pledge to hire thousands more teachers into key subjects.

“So our young people can develop the skills that they need for the future, I am providing an additional £300 million for further education.”

On the need to reform special educational needs provision, Ms Reeves said: “To support that work, I am today providing a £1 billion uplift in funding, a 6% real-terms increase from this year.”

1.36pm

Ms Reeves said there would be a total increase to the Ministry of Defence’s budget of £2.9 billion next year, telling MPs: “Ensuring the UK comfortably exceeds our Nato commitments and providing guaranteed military support to Ukraine of £3 billion per year, for as long as it takes.”

The Chancellor also said there would be funding to commemorate the 80th anniversary of VE and VJ day next year, while a further £2 million would be committed to Holocaust education next year.

1.35pm

The Chancellor pledged to “stop shoplifting in its tracks” with additional funding.

She said: “We are taking action to deal with the sharp rise in shoplifting we have seen in recent years. We will scrap the effective immunity for low-value shoplifting introduced by the party opposite.

“And having listened closely to organisations like the British Retail Consortium and USDAW (Union of Shop, Distributive and Allied Workers), I am providing additional funding to crack down on the organised gangs which target retailers and to provide more training to our police officers and retailers to help stop shoplifting in its tracks.”

1.33pm

On income tax and National Insurance thresholds, the Chancellor told MPs: “The previous government froze income tax and National Insurance thresholds in 2021 and then they did so again after the mini-budget. Extending their threshold freeze for a further two years raises billions of pounds – money to deal with the black hole in our public finances and repair our public services.

“Having considered the issue closely, I have come to the conclusion that extending the threshold freeze would hurt working people. It would take more money out of their payslips.

“I am keeping every single promise on tax that I made in our manifesto. So there will be no extension of the freeze in income tax and National Insurance thresholds beyond the decisions of the previous government.

“From 2028-29, personal tax thresholds will be uprated in line with inflation once again. When it comes to choices on tax, this Government chooses to protect working people every single time.”

1.32pm

Ms Reeves confirmed the Government will abolish the non-dom tax regime from April 2025.

She said: “In our manifesto we made a number of commitments to raise funding for our public services.

“First, I have always said that if you make Britain your home, you should pay your tax here. So today, I can confirm, we will abolish the non-dom tax regime and remove the outdated concept of domicile from the tax system from April 2025.”

1.30pm

Corporation tax will be capped at 25% for the duration of this Parliament, Ms Reeves said.

1.29pm

Ms Reeves has cemented into her Budget the policy to apply VAT to private school fees from January 2025.

She told the Commons: “94% of children in the UK attend state schools. To provide the highest quality of support and teaching that they deserve, we will introduce VAT on private school fees from January 2025 and we will shortly introduce legislation to remove their business rates relief from April 2025, too.

“We said in our manifesto that these changes, alongside our measures to tackle tax avoidance, would bring in £8.5 billion by the final year of the forecast.

“I can confirm today that they will in fact raise over £9 billion to support our public services and restore our public finances.

“That is a promise made and a promise fulfilled.”

1.26pm

The Government will not extend the freeze on income tax and national insurance thresholds beyond 2027/28, the Chancellor has announced, saying it would “hurt working people” to keep thresholds frozen.

1.25pm

The retail, hospitality and leisure industry will receive 40% relief on business rates from 2025/26, Rachel Reeves said.

The Chancellor told the Commons: “Let me turn now to our high street businesses. I know that for them, a major source of concern is business rates.

“From 2026-27, we intend to introduce two permanently lower tax rates for retail, hospitality and leisure properties, which make up the backbone of high streets across the country, and it is our intention that is paid for by a higher multiplier for the most valuable properties.

“But the previous government created a cliff-edge next year, as temporary relief ends, so I will today provide 40% relief on business rates for the retail, hospitality and leisure industry in 2025-26, up to a cap of £110,000 per business.

“Alongside this, the small business tax multiplier will be frozen next year.”

1.24pm

The stamp duty land tax surcharge for second homes will increase by two percentage points to five per cent, and will come into effect from Thursday, Ms Reeves announced.

1.22pm

The Government will renew the tobacco duty escalator for the remainder of the Parliament at RPI (Retail Prices Index) plus 2%, increase duty by a further 10% on hand-rolling tobacco this year and introduce a flat-rate duty on all vaping liquid from October 2026.

She added: “Alongside an additional one-off increase in tobacco duty to maintain the incentive to give up smoking.

“And we will increase the soft drinks industry levy to account for inflation since it was introduced, as well as increasing the duty in line with CPI (Consumer Prices Index) each year going forward. These measures will raise nearly £1 billion per year by the end of the forecast period.”

On supporting electric vehicle purchases, Ms Reeves said: “I will maintain incentives for electric vehicles in company car tax from 2028 and increase the differential between fully electric and other vehicles in the first year rates of vehicle excise duty from April 2025.

“These measures will raise around £400 million by the end of the forecast period.”

1.21pm

Draught duty on alcoholic drinks will fall by 1.7%, meaning “a penny off a pint in the pub”, the Chancellor has announced.

1.19pm

Chancellor Rachel Reeves has unveiled an increase to the Employment Allowance for small businesses, which allows eligible employers to reduce their national insurance liability.

She told the Commons: “I am today increasing the Employment Allowance from £5,000 to £10,500. This means 865,000 employers won’t pay any national insurance at all next year, and over one million will pay the same or less as they did previously.

“This will allow a small business to employ the equivalent of four full-time workers on the national living wage without paying any national insurance on their wages.”

1.19pm

The Chancellor has announced a “flat rate duty” on vaping liquid from October 2026.

1.14pm

Rachel Reeves mocked Tory leadership candidate Kemi Badenoch as she outlined protections for working people.

In a message aimed at Tory MPs, Ms Reeves told the Commons: “I know the party opposite are deeply interested in our plans here.

“Having seen their colleagues repeatedly dismissed at short notice I know they are now worried about their future under the right honourable member for North West Essex.

“So they should rest easy, knowing our plan will protect working people from unfair dismissal, safeguard them from bullying in the workplace and improve their access to paternity and maternity leave.

“I hope the new shadow cabinet will soon be grateful for these increased protections at work.”

1.13pm

The Chancellor reiterated the Government’s commitment to the pension triple lock, telling the Commons: “This commitment means that while working-age benefits will be uprated in line with CPI at 1.7%, the basic and new state pension will be uprated by 4.1% in 2025-26.

“This means that over 12 million pensioners will gain up to £470 next year.”

She added: “The pension credit standard minimum guarantee will also rise by 4.1% from around £11,400 per year to around £11,850 for a single pensioner.”

1.11pm

The headline rates of capital gains tax will increase, with the lower rate rising from 10% to 18% and the higher rate from 20% to 24%, the Chancellor has announced.

1.10pm

Ms Reeves has announced she will continue the freeze on fuel duty next year and maintain the existing 5p cut as she said that increasing it “would be the wrong choice”.

pic.twitter.com/hvszE4gPYO— HM Treasury (@hmtreasury) October 30, 20241pmThe Chancellor said every Budget she delivers will be “focused on our mission to grow the economy”, saying the key pillars of the Government’s strategy include seeking to “restore economic stability”.She added increasing investment and building new infrastructure is “vital for productivity”.Ms Reeves, turning to the fiscal rules, said: “I am confirming those today – our stability rule and our investment rule.“The stability rule means we will bring the current Budget into balance so that we do not borrow to fund day-to-day spending. We will meet this rule in 2029-30 until that becomes the third year of the forecast.“From then on, we will balance the current budget in the third year at every budget, held annually each autumn.”Ms Reeves said this will provide a “tougher constraint” on day-to-day spending to ensure “difficult decisions cannot be constantly delayed or deferred”.12.59pmMs Reeves, turning to household finances, said: “Today, the OBR says CPI inflation will average 2.5% this year, 2.6% in 2025, then 2.3% in 2026, 2.1% in 2027, 2.1% in 2028 and 2% in 2029.Ms Reeves said the Budget “marks an end to short-termism”, adding the Office for Budget Responsibility (OBR) has published a “detailed assessment” of the growth impacts of the Government’s policies over the next decade.She said: “The OBR forecast that real GDP growth will be 1.1% in 2024, 2% in 2025, 1.8% in 2026, 1.5% in 2027, 1.5% in 2028 and 1.6% in 2029. And the OBR are clear: this Budget will permanently increase the supply capacity of the economy, boosting long-term growth.”12.58pmThe Government is setting a “two per cent productivity, efficiency and savings target for all departments to meet next year”, Ms Reeves said.12.54pmChancellor Rachel Reeves told the Commons “this Budget raises taxes by £40 billion”.She said: “The leadership campaign for the party opposite has now been going on for over three months, but in all that time not one, single apology for what they did to our country – because the Conservative Party has not changed.“But this is a changed Labour Party and we will restore stability to our country again.“The scale and seriousness of the situation that we have inherited cannot be underestimated.“Together, the black hole in our public finances this year, which recurs every year, the compensation payments which they did not fund, and their failure to assess the scale of the challenges facing our public services means this Budget raises taxes by £40 billion.“Any chancellor standing here today would face this reality, and any responsible chancellor would take action. That is why today, I am restoring stability to our public finances and rebuilding our public services.” Rachel Reeves delivering her Budget (House of Commons/UK Parliament/PA)” data-attr-f=”default” data-attr-has-caption=”true” data-attr-q=”0.3″ data-attr-w=”400″ data-onecms-id=”externalid/image.assets.pressassociation.io/v2/image/production/3a3155a10c1ebb1bb968eeaaeb98e5eaY29udGVudHNlYXJjaGFwaSwxNzMwMzg0Mzgy/2.78024399.jpg” data-onecms-type=”image”>1.09pmEmployers’ national insurance contributions will rise by 1.2 percentage points to 15% in April 2025, and the threshold for paying them will fall from £9,100 per year to £5,000, the Chancellor has announced.1.08pmMs Reeves said she will crack down on fraud in the UK’s welfare system, as part of reforms to ensure welfare spending is “more sustainable”.She told the Commons: “Today, I am also taking three steps to ensure that welfare spending is more sustainable.“First, we inherited the last government’s plans to reform the work capability assessment. We will deliver those savings as part of fundamental reforms to the health and disability benefits system that the Work and Pensions Secretary (Liz Kendall) will bring forward.“Second, I can today announce a crackdown on fraud in our welfare system often the work of criminal gangs. We will expand DWP’s (Department of Work and Pensions) counter-fraud teams using innovative new methods to prevent illegal activity and provide new legal powers to crackdown on fraudsters, including direct access to bank accounts to recover debt. This package saves £4.3 billion a year by the end of the forecast.“Third, the Government will shortly be publishing the “Get Britain Working” White Paper tackling the root causes of inactivity with an integrated approach across health, education and welfare.“And we will provide £240 million for 16 new trailblazer projects targeted at those who are economically inactive and most at risk of being out of education, employment or training to get people into work and reduce the benefits bill.”1.08pmMs Reeves vowed to crack down on unpaid taxes to raise £6.5 billion by the end of the forecast period.“Before a government considers any change to a tax rate or threshold, it must ensure that people pay what they already owe,” she told the Commons.“So we will invest to modernise HMRC’s systems using the very best technology and recruit additional HMRC compliance and debt staff. We will clamp down on those umbrella companies who exploit workers, increase the interest rate on unpaid tax debt to ensure people pay on time, and go after promoters of tax avoidance schemes.“These measures to reduce the tax gap raise £6.5bn by the end of the forecast.”1.06pmRachel Reeves has announced a Covid Corruption Commissioner will be appointed.The Chancellor said: “As set out in our manifesto, I will shortly be appointing our Covid Corruption Commissioner, leading our work to uncover those companies that used a national emergency to line their own pockets.“Because that money belongs in our public services. And taxpayers want it back.“And I can confirm today that David Goldstone has been appointed as the Chair of the new Office for Value for Money to help us realise the benefits from every pound of public spending.”1.03pmThe weekly earnings limit for carers allowance will rise to the equivalent of 16 hours a week at the national living wage, the largest increase since the allowance was introduced, the Chancellor has announced.

12.52pm

The Budget “raises taxes” by £40 billion, Chancellor Rachel Reeves has said.

12.50pm

Rachel Reeves said the Government would publish a “line-by-line breakdown of the £22 billion black hole that we inherited”, saying this showed “hundreds of unfunded pressures on the public finances”.

The Chancellor told MPs: “The Office for Budget Responsibility has published their own review of the circumstances around the spring budget forecast.

“They say that the previous government, and I quote, ‘did not provide the OBR with all the available information to them’ and that had they known about these ‘undisclosed spending pressures that have since come to light’ then their spring budget forecast for spending would have been, and, I quote again, ‘materially different’.”

Ms Reeves added: “Let me make this promise to the British people: never again will we allow a government to play fast and loose with the public finances and never again will we allow a government to hide the true state of our public finances from our independent forecaster.

“That’s why today, I can confirm that we will implement in full the 10 recommendations from the independent Office for Budget Responsibility’s review.”

12.49pm

Conservatives have “learned absolutely nothing” from their general election defeat this year, the Prime Minister said ahead of Wednesday’s Budget.

At the despatch box, Sir Keir Starmer told the Commons: “No one did more damage to rural constituencies than his nearby predecessor whose disastrous mini-budget crashed the economy and hurt his constituents.

“I do note that she’s been tweeting approval of the current shadow chancellor’s (Jeremy Hunt’s) attacks on the independent OBR (Office for Budget Responsibility), just showing the party opposite have learned absolutely nothing.”

Ben Goldsborough, the Labour MP for South Norfolk, had asked the Prime Minister “what action our Government will be taking to back British farming”. Former Conservative prime minister Liz Truss was the MP for nearby South West Norfolk.

12.47pm

The Government will set aside £11.8 billion to compensate those affected by the infected blood scandal and £1.8 billion to compensate victims of the Post Office Horizon scandal, the Chancellor has announced.

12.46pm

The Labour Party will rebuild Britain, Chancellor Rachel Reeves has said.

She told the Commons: “This is not the first time that it has fallen to the Labour Party to rebuild Britain.

“In 1945, it was the Labour party that rebuilt our country out of the rubble of the Second World War. In 1964, it was the Labour Party that rebuilt Britain with the white heat of technology. And in 1997, it was the Labour Party that rebuilt our schools and our hospitals.

“Today, it falls to this Labour Party, this Labour Government to rebuild Britain once again.”

12.46pm

Chancellor Rachel Reeves told the Commons: “While this is the first Budget in more than 14 years to be delivered by a Labour Chancellor, it is the first Budget in our country’s history to be delivered by a woman.

“I am deeply proud to be Britain’s first-ever female Chancellor of the Exchequer. To girls and young women everywhere, I say: Let there be no ceiling on your ambition, your hopes or your dreams.

“And along with the pride that I feel standing here today there is also a responsibility to pass on a fairer society and a stronger economy to the next generation of women.”

Ms Reeves accused the Conservatives of having “failed this country”, saying: “Their austerity broke the National Health Service. Their Brexit deal harmed British businesses. And their mini-budget left families paying the price with higher mortgages.

“The British people have inherited their failure. A black hole in the public finances, public services on their knees, a decade of low growth and the worst parliament for living standards in modern history.”

12.45pm

Chancellor Rachel Reeves opened her Budget speech by stating that her “belief in Britain burns brighter than ever”.

She told the Commons: “On July the 4th, the country voted for change. This Government was given a mandate: to restore stability to our country and to begin a decade of national renewal. To fix the foundations and deliver change through responsible leadership in the national interest. That is our task and I know we can achieve it.

“My belief in Britain burns brighter than ever and the prize on offer is immense.

“As the Prime Minister said on Monday, change must be felt: more pounds in people’s pockets, an NHS that is there when you need it, an economy that is growing, creating wealth and opportunity for all because that is the only way to improve living standards.

“And the only way to drive economic growth is to invest, invest, invest.

“There are no shortcuts and to deliver that investment we must restore economic stability and turn the page on the last 14 years.”

12.36pm

Deputy Speaker Nusrat Ghani has reprimanded the Government for the early disclosure of Budget details.

She told the Commons: “I am disappointed by comments made by Government spokespeople believing they can use precedent as an excuse.

“I am telling them today that they are entirely wrong.”

12.31pm

Rishi Sunak has urged Sir Keir Starmer to find his “inner tech bro”, and support British technology businesses.

The outgoing Conservative leader said: “Our two predecessors, Sir Tony Blair and Lord Hague, have repeatedly come together and powerfully argued in their joint reports that it is vital for the future prosperity of Britain’s economy, society and public services for us to be a world leader in technology and innovation.

“Now, the Prime Minister may not yet be at our joint report-writing stage yet, but in a similar spirit of cross-party agreement, can I ask him to find his ‘inner tech bro’ and continue to support emerging British tech businesses and establish our country as the home of AI (artificial intelligence) growth and innovation?”

The Prime Minister replied: “Yes, and this is a really important point. The Leader of the Opposition held a summit last year on AI which was very important.”

12.31pm

Mr Sunak went on to ask Sir Keir Starmer if he will ensure provision for cricket in state schools, joking that he has “a lot more time to practise now”.

Mr Sunak told the Commons: “Yorkshire is not just famous for its walks, but also for being home to some of England’s greatest cricketers. Now, sadly, no one’s going to put me on that list, but who knows, I’ve got a lot more time to practise now?

“But cricket does have the power to bring people together from all communities and give them fantastic opportunities, as shown so powerfully by Andrew Flintoff’s recent documentary.

“Now we also lead the world in female participation, and that will stand us in good stead when we host the Women’s World Cup in 2026 and when cricket becomes an Olympic sport in 2028, so could I therefore ask the Prime Minister to continue Government support for the England and Wales Cricket Board’s new initiative to get cricket into vastly more state schools, fostering a whole new generation of cricketers for us all to cheer on at every level?”

The Prime Minister replied: “Yes is the answer to that question, and the point is a really important one.

“We celebrate cricket. It does bring communities together, but it’s also really important for children and young people to enjoy sport.”

12.28pm

Rishi Sunak has thanked Speaker of the House Sir Lindsay Hoyle and Prime Minister Sir Keir Starmer during his final PMQs, and said he will be spending more time in Yorkshire – “the greatest place on earth” – once he is no longer leader of the Conservatives.

The outgoing Leader of the Opposition, who is MP for Richmond and Northallerton in North Yorkshire, told MPs: “Mr Speaker, thank you for your kind words, and indeed, thank you to the Prime Minister for his kind words.

“Indeed, no prime minister looks forward to PMQs, but I always did like this pre-Budget one, because it was for a change, nice not to be the main event and just the warm up act.

“But today is my last appearance at PMQs, and I’m happy to confirm reports that I will now be spending more time in the greatest place on earth where the scenery is indeed worthy of a movie set, and everyone is a character – that’s right, if anyone needs me, I will be in Yorkshire.

“And as an adopted Yorkshireman, I’m particularly looking forward to doing the coast to coast walk that runs through my constituency and many others. Since 2015 we’ve made significant progress with a campaign to make it a National Trail, and indeed, Natural England are close to concluding their work.

“So can I ask the Prime Minister to ensure that the Coast-to-Coast (walk) does indeed become Britain’s greatest National Trail, and in preparation for my return to the back benches, would he meet with me to discuss it?”

Sir Keir Starmer replied: “I thought he was about to ask me to join him on the walk, but certainly I will meet him.”

12.20pm

Sir Keir Starmer thanked former prime minister Rishi Sunak for his “decency” during Prime Minister’s Questions.

The Prime Minister said: “I wish everyone celebrating in the UK and around the world a joyful Diwali, a time to come together to celebrate and focus on a brighter future.

“Last Diwali, the leader of the opposition and his family lit the diyas outside 10 Downing Street.

“It was a significant moment in our national story: the first British-Asian prime minister is a reminder that this is a country where people of every background can fulfil their dreams, and it makes us all proud to be British.

“This is our last exchange across the despatch boxes. I wanted to take this opportunity to thank the Leader of the Opposition for his service.

“Now, of course, we’ve had political disagreements, ideological disagreements, we’ve argued at some length, but I want to thank him for his hard work, for his commitment and for his decency in everything that he has done, and I too, wish him and his family the very best for whatever the future may hold for them.”

12.16pm

Opening Rishi Sunak’s final appearance at Prime Minister’s Questions in the Commons, Speaker Sir Lindsay Hoyle thanked the former prime minister for their “working relationship”.

Sir Lindsay said: “I would like to mark the fact that this is the last time (Mr Sunak) will appear at the despatch box during PMQs, he has a bit more to do afterwards, but he has spoken at this despatch box as chancellor of the Exchequer, the prime minister, leader of the opposition, and after today, we all look forward to his continued contributions from the back benches.

“We wish him and his family well in their future endeavours, and I say personally, thank you for our working relationship.”

12.15pm

Before PMQs began Speaker Sir Lindsay Hoyle warned MPs should not make any reference to the Southport case in the Commons to avoid prejudicing the legal process.

He told MPs: “I wish to remind the House that, following the horrendous terrible incident in Southport on July 29, a suspect is awaiting trial having been charged with multiple offences. That means the House sub judice resolution is engaged and references should not be made to the case.

“I know that all honourable members wish to see justice done in this case. It is therefore of paramount importance that nothing is said in this House which could potentially prejudice a proper trial or lead to it being abandoned.”

12.09pm

11.58am

Rachel Reeves will deliver her Budget at around 12.30pm, following PMQs. Mr Sunak will then offer his response before MPs being debating.

He was previously appointed Chancellor of the Exchequer from February 13 2020 to July 5 2022 and chief secretary to the Treasury from July 24 2019 to February 13 2020.

11.40am

Prime Minister Sir Keir Starmer is heading to the Commons where he will take questions from Conservative leader Rishi Sunak before Rachel Reeves delivers her Budget. It will be Mr Sunak’s final PMQs as party leader.

11.29am

11.17am

10.30am

9am

Rachel Reeves has posted on X to mark her first Budget delivery, saying: “Politics is about choices. This Labour government chooses investment over decline.”