Politics latest: Chancellor and Hunt in spiky Commons clash - as she's quizzed over tax plans (2024)

The prime minister has warned of a "painful" budget in October.

Tax rises will feature, but with the chancellor having ruled out raising income tax, national insurance, and VAT - what could be set for a hike?

Rachel Reeves has today refused to rule out raising inheritance tax and capital gains tax, and those are just two of the ones she could hike.

Inheritance tax

One of the taxes most likely to be hiked - the threshold could be lowered from £325,000 when someone dies, or people could pay more than 40% on some inheritances.

A leaked recording of Treasury minister Darren Jones, from before he was in government, suggested he favours such a change.

Capital gains tax

This levy is imposed on the profit of a sale of assets.

The government could reduce the minimum limit, or raise the percentage of tax levied - with some calling for it to be set in line with income tax.

Council tax

There is speculation council tax is viewed as "out of date".

While Labour said before the election it would not change the banding of council tax, there may be other updates on the table.

Business rates

This tax is what businesses pay instead of council tax on their properties.

The calculations for how much people pay could be updated to reflect a more current situation with property prices.

Stamp duty

A tax paid on properties over £250,000, which increases for second homes.

Changing this could increase the volume of transactions and raise more money.

Alix Culbertson, political reporter, goes into more detail on the topic of taxes in the piece below:

After a long Saturday for millions of Oasis fans in online queues, the culture secretary says surge pricing will be part of the government's review of the ticket market.

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Niall speaks to secondary ticketing site Viagogo on this episode. While it wasn’t part of dynamic pricing, it has offered resale tickets for thousands of pounds since Saturday.

Matt Drew from the company accepts the industry needs a full review while Adam Webb, from the campaign group FanFair Alliance, explains the changes it would like to see.

Later, our data and forensics correspondent Tom Cheshire tells Niall about how a rise in online propaganda has helped the Afghan branch of Islamic State become "the greatest external terror threat".

It’s been linked to the concert hall attack in Moscow and the plot to disrupt Taylor Swift gigs in Austria.

A major rescue operation is under way after a boat with at least 100 migrants onboard capsized in the English Channel, according to French media.

The French coastguard said 10 people were in critical condition after the boat got into difficulty off the coast of France, Reuters reported.

France 3 quoted Le Portel mayor Olivier Barbarin as saying "around 10 people in cardio-respiratory arrest".

More from the Commons, where the chancellor has been facing questions from MPs this lunchtime.

As you'd expect, there's been a lot on tax and her decision to start means testing the winter fuel payment.

But it's not just the Tories giving her a hard time - a Labour MP representing the "snowiest village" in England has asked how the chancellor will make sure his elderly constituents don't suffer this winter.

"The village of Copley in my constituency (Bishop Auckland) is the snowiest in England, and we have many pensioners in receipt of the basic state pension who are nonetheless in fuel poverty," he points out.

Many of them "live in cold, stone-built houses", he adds.

Chancellor Rachel Reeves references the government's plan to insulate five million more homes during this parliament, which will make properties warmer and keep energy bills down.

Chancellor Rachel Reeves just accused Jeremy Hunt of having "a bit of brass neck" for criticising cronyism under Labour during Treasury Questions.

The shadow chancellor had asked Ms Reeves why cronyism - that is, the appointment of friends and associates to positions of authority - is "wrong under the Conservatives but acceptable under Labour".

'We will treat taxpayers' money with respect'

Responding, Ms Reeves says Mr Hunt has "a bit of brass neck criticising this government after the appointments and the partying at Downing Street" under the Tories.

She says there were "billions of pounds of contracts handed out to friends and donors of the Conservative Party".

"That's why this government is appointing a COVID corruption officer to get that money back... because unlike the last government, we are determined that taxpayers' money is treated with respect."

Chancellor Rachel Reeves has confirmed corporation tax will be capped at 25% as part of a "tax roadmap for business" that she will set out in the October budget.

During Treasury questions, Ms Reeves told the Commons this would "give business the confidence to grow".

She said "investment is at the heart" of the government's mission to grow the economy and capping corporation tax would "offer the certainty that encourages investment".

The cap will remain for the duration of this parliament.

Over to the Commons, where Chancellor Rachel Reeves and her ministers are facing Treasury Questions.

She is asked about Labour's repeated promise in the election campaign not to increase taxes on "working people".

But can she guarantee there will not be heavier taxation on pensions in the October budget?

"I'm not going to speculate on what will be in the budget, but I'm absolutely determined to ensure that working people are better off," she tells the Tories' shadow Treasury minister Nigel Huddleston.

"This budget will be a budget to fix the foundations of the economy after the mess left by the previous government."

Reeves defends winter fuel cut - and tax cap for corporations

Ms Reeves was also asked about her decision to means test the winter fuel payment, which will cut the benefit for millions of pensioners.

She stressed the state pension is worth £900 more now than a year ago, and points back to the £22bn "black hole" in public finances.

One tax that won't go up is corporation tax - Ms Reeves reaffirmed it would max out at 25% to "give business the confidence to grow".

Tom Tugendhat's Tory leadership campaign speech is over and our political correspondent Liz Bates was watching along in case you didn't fancy doing so.

Unsurprisingly, there was "quite a focus" on foreign policy given his previous role as chair of the Foreign Affairs Committee and then as a security minister.

He was keen to talk about what Liz describes as "one of the old rows of the last government", as he said he'd be prepared to take us out of the European Court of Human Rights to make it easier to deport criminals.

It's worth remembering every country in Europe is signed up to the country apart from Russia and Belarus.

Despite that pitch to the Tory base, Liz noticed a desire to "re-engage younger voters".

It's a "core challenge for the Conservative Party he has identified", given the last election saw its vote hugely concentrated among older voters.

Whoever wins this contest will have to appeal to a "much broader range" next time and use this race to "set out how they're going to do that".

Ultimately, though, Liz notes Mr Tugendhat isn't really considered a frontrunner right now - with the likes of Kemi Badenoch out in front.

Tom Tugendhat, the former security minister, has admitted the "Conservative Party owed you better" as he launched his bid to become party leader.

Speaking in London, he vowed to make the Tories "a serious force again".

He said: "I will make us respected for our realism, admired for our integrity, acknowledged for our achievements and given credit for seeing the errors that we may make and correcting them."

'Rethink the entire economy'

Mr Tugendhat says that, by doing this, he believes he will lead the Tories "back to power".

He says the UK needs a "different government", one that will serve the country "with conviction".

He suggests the country needs to "rethink its entire economy", while making sure housing is "affordable" - and changing the culture of those left "idle and ignored".

Mr Tugendhat also says the maximum level of net migration would be capped at 100,000 people per year under his leadership, and said he'd be willing to leave the European Court of Human Rights.