Chancellor Rachel Reeves will today unveil her maiden Budget (Image: Getty)

       Rachel Reeves is set to unveil up to ￡40 billion of tax hikes and spending cuts in Labour's first Budget.

       The Chancellor will kick off her speech after Prime Minister's Questions in the House of Commons at midday.

       Speculation has been high over which taxes will go up amid confusion over Labour's pledge not to hit "working people".

       The party's manifesto promised not to increase taxes on working people and explicitly ruled out a rise in VAT, national insurance and income tax.

       There has also been fury over Ms Reeves's announcement in July that winter fuel payments would be axed for most pensioners.

       FOLLOW BELOW FOR LIVE UPDATES:

       Get the latest politics news straight to your phone Join us on WhatsApp Our community members are treated to special offers, promotions, and adverts from us and our partners. You can check out at any time. Read our Privacy Policy

       Trending

       KEY EVENTS Want more political coverage from the Express?07:51

       8 hours ago08:00 Michael Knowles

       The Budget: What do we know and what should we expect?

       Rachel Reeves’ first Budget as Chancellor is widely expected to include up to ￡40 billion in punishing tax rises and swingeing spending cuts.

       Here, the Daily Express looks at what we know and what we might expect.

       Winter fuel payment cut: Rachel Reeves provoked a furious backlash after scrapping the universal benefit in July, meaning up to 10 million pensioners could miss out on the payment. Other benefits for the elderly, such as free bus passes and prescriptions, are expected to be safe.

       Bus fares: Keir Starmer has said the ￡2 fare cap will be replaced by a ￡3 cap until the end of 2025 in a hammerblow to commuters. The deeply unpopular move is expected to drive up fares with travel routes across the country expected to suffer.

       Taxes on working people: Labour claims it will stick to its manifesto promise not to raise the major taxes on “working people”: national insurance, income tax and VAT.

       But….

       National insurance employer contributions: The Chancellor is expected to hike employer contributions to national insurance by at least one percentage point.

       Income tax: She is also expected to extend the freeze on income tax thresholds, which sees people pulled into paying higher rates through a process known as “fiscal drag”.

       Inheritance tax: Ms Reeves is reportedly considering changes to inheritance tax, which could include extending the number of years someone has to stay alive after passing on wealth as a gift from seven to 10 years.

       NHS: Billions of pounds are expected to be pumped into the health service, including ￡1.5 billion for new surgical hubs and scanners and ￡70 million for radiotherapy machines. An additional ￡1.8 billion has been allocated for elective appointments since July.

       Private schools: In what is widely-regarded as an ideological move,the Government plans to remove the VAT exemption and business rates relief for private schools to enable funding for 6,500 new teachers in state schools.

       Education and childcare: Some ￡1.4 billion has been announced already to rebuild crumbling schools, as well as a tripling of investment in free breakfast clubs, ￡1.8 billion for the expansion of Government-funded childcare, and ￡44 million to support kinship and foster carers.

       Employment: ￡240 million will be given to local services to get people back to work as the Government seeks to cut the welfare bill.

       Social housing: Right to buy discounts for tenants of local authority-owned homes will be reduced and a ￡500 million top-up in funding will go to the affordable homes programme.

       Debt rule: Despite previous assurances she wouldn’t, the Chancellor has already confirmed she will change the way debt is measured to open the door for the Government to spend billions more on infrastructure, such as railways, roads, hospitals and new prisons.

       Government departments: Ms Reeves is understood to have called on Government departments to make efficiency savings of 2% to free up billions to be reinvested in the front line.

       Capital gains tax: Capital gains tax, paid on the proceeds from selling an asset, could go up. Changes could be applied to shares or other chargeable assets.

       Fuel duty: The tax, which is included in the price motorists pay for petrol at the pump, could also be raised for the first time for more than a decade. The tax on motor fuels was frozen by the Tories between 2010 and 2022, and then cut by 5p to 52.95p per litre, where it remains.

       Vaping: The Chancellor is reportedly considering increasing the tax on e-cigarettes, echoing her Conservative predecessor Jeremy Hunt’s plans to discourage non-smokers from taking up vaping. Vaping products are subject to VAT at 20% but, unlike tobacco, they are not also subject to excise duty.

       8 hours ago07:51 Natalie Crookham

       Want more political coverage from the Express?

       Sign up for our politics newsletter and join our Whatsapp Community

       9 hours ago07:32 Michael Knowles

       Price of a pint and meal out could rise, experts warn

       Tax rises could lead to customers facing higher prices in pubs and restaurants, Chancellor Rachel Reeves has been warned.

       Patrick Fitzsimmons, owner and landlord of the Faltering Fullback pub in north London warned that tax rises and higher energy bills could lead to hikes.

       He told i: “We’re very lucky in that we’ve been busy and trade has been good, but the external factors like never ending inflation have been challenging.

       “We hoped a Labour Government would back and help small businesses, given we’re the hub of many communities.

       “Costs of producing beer have gone up, energy prices are bigger, if we get Nics increases and higher wages we can’t keep absorbing them, the costs will have to be passed on to customers. We know those customers have been hit for six, so of course we don’t want to do that.”

       Alison Boutoille, Founder of CityStack, said increases to Nics would just “add more strain” to an already-squeezed industry.

       “Independent pubs have faced countless challenges since the pandemic: reduced footfall, rising inflation, and a post-Brexit staff shortage exacerbated by soaring London rents, which has made it even harder for employees to find housing,” he said.

       9 hours ago07:24 Michael Knowles

       'A painful day for business ahead'

       One of the main focuses of the fallout from today's Budget will be the impact on business.

       Reform UK MP Rupert Lowe warns "our ruling class is stuffed full of career politicians."

       A painful day for British businesses ahead.

       This is what happens when our ruling class is stuffed full of career politicians - they understand NOTHING about wealth creation, building a company, creating jobs, sustaining that success.

       A Government to serve the public sector.

       \u2014 Rupert Lowe MP (@RupertLowe10) October 30, 2024

       9 hours ago07:09 Michael Knowles

       Reeves tweets hours before her big moment...

       The Chancellor insists the "Budget will deliver on the promise of change."

       It is 5,334 days since a Labour Chancellor stood in Downing Street with the famous red box. How will her day look? Ms Reeves will address Cabinet at 9am.

       She will then appear in Downing Street at around 11am.

       The Chancellor will then take her place next to Sir Keir Starmer at Prime Minister's Questions, before standing up just after 12:30pm.

       Today\u2019s Budget will deliver on the promise of change.

       Fixing the foundations of our economy.

       Investing in our future.

       Rebuilding Britain.

       \u2014 Rachel Reeves (@RachelReevesMP) October 30, 2024

       9 hours ago07:04 Michael Knowles

       Chancellor must use 'opportunity to boost confidence'

       Business leaders are urging Rachel Reeves to take the “opportunity to boost confidence” amid fears tax rises could stiffle growth.

       Firms have admitted they expect there to be no growth over the next three months, marking the second consecutive quarter when businesses have not expected any growth over the near-term.

       Alpesh Paleja, an economist at the lobbying group CBI , said: “Our latest surveys paint a picture of an economy shifting down a gear as we head into the final quarter of 2024.

       “Weaker growth expectations are weighing on firms’ hiring intentions, which have treaded water since the beginning of the summer.

       “In the budget, the Chancellor has an opportunity to boost confidence despite the difficult fiscal picture.

       “Business will want to see messages of hard choices balanced with interventions that deliver a vision of optimism.”

       He added: “Giving firms certainty over future tax plans in the form of a business tax roadmap, measures to enhance productivity, and the country’s net zero trajectory can all help cement the path to long-term growth.”

       LONDON, UNITED KINGDOM OCTOBER 29, 2024: Chancellor of the Exchequer Rachel Reeves leaves 11 Downin (Image: Wiktor Szymanowicz/Future Publis)

       9 hours ago07:03 Jon King

       John Swinney demands more money for Scotland

       Scotland's First Minister John Swinney has said the Chancellor must "immediately and significantly" increase funding for Scotland in the Budget.

       He said the Chancellor must use her fiscal headroom to deliver a Budget which "immediately and significantly" enhances Scotland's resource and capital funding.

       The Scottish Government has been candid about its dire financial situation in recent months, with Finance Secretary Shona Robison forced to make more than ￡500million of in-year cuts.

       John Swinney wants more money for Scotland (Image: Getty)

       9 hours ago06:50 Jon King

       Britain's long-term borrowing costs hit post-election high, reports

       The Financial Times reports this morning that the UK’s long-term borrowing costs hit a post-election high on Tuesday as investors braced for Rachel Reeves’ first Budget.

       It says investor anxiety over a rise in gilts issuance has added fuel to a sell-off in UK government bonds.

       This pushed the 10-year yield up as high as 4.32 percent on Tuesday, which the publication says is its highest level since June, before Labour won the General Election.

       The FT adds that as recently as mid-September, the yield was about 3.75 percent.

       9 hours ago06:36 Jon King

       Business owners 'seriously concerned' at prospect of tax rises

       Small business owners have said they are "seriously concerned" by the prospect of tax rises in today's Budget.

       Chancellor Rachel Reeves is expected increase employer contributions to national insurance by at least one percentage point.

       Steve Luke, 56, owns a paraplanning business in the financial services sector, employing nine people, including himself. He said he is "really anxious" ahead of the Budget.

       The Newcastle-based businessman said: "I'm seriously concerned that if the Budget is as bad as I'm expecting then we may have to reduce the workforce from nine to seven or eight."

       Farmer and landlord Richard Payne, 61, said he felt "extremely nervous" because he is worried about taxation of his profits, inheritance tax and business property relief.

       The farmer, based in Somerset, owns around 500 acres of land and rents an additional 150-200 acres to farm wheat, barley, oilseed rape and canola.

       Mr Payne said: "It would look like SMEs are going to be clobbered hard."

       Small business owners are going to be 'clobbered hard' (Image: Getty)

       10 hours ago06:26 Jon King

       Reeves urged to cancel winter fuel allowance cuts

       Mel Stride has urged Rachel Reeves to "do the right thing" and cancel her plan to means test the winter fuel allowance.

       The Shadow Work and Pensions Secretary, writing in the Express, said: "The cruel decision to means test the winter fuel payment is a looming disaster for millions of pensioners up and down the country, who now face the prospect of choosing between eating or heating.

       "Despite Labour finding billions for bumper bungs to their union paymasters, there is apparently no money left for freezing pensioners this winter."

       His comments came as a petition with 150,000 signatures was presented to Downing Street, calling for a U-turn.

       Mel Stride has urged Rachel Reeves to reverse plans to cut the winter fuel allowance (Image: Getty)

       10 hours ago06:22 Jon King

       Soldiers to get a pay rise as part of ￡3bn defence budget boost

       Rachel Reeves is set to announce a ￡3billion increase in the defence budget for next year in her fiscal statement, part of which will be used to give soldiers a backdated pay rise.

       The funding will also be used to buy weapons, with the aim of replenishing stockpiles depleted by donations to Ukraine, according to the Telegraph.

       A pathway to increasing defence spending to 2.5% of national economic output demanded by the Tories will not be in the Budget.

       Soldiers are in line for a pay rise (Image: Getty)

       10 hours ago06:17 Jon King

       Budget is 'the biggest heist in modern political history' - Jenrick

       Tory leadership contender Robert Jenrick said: "This Budget completes the biggest heist in modern political history. The Labour Party won power by lying to the British public about their plan to hike taxes.

       "Working people are going to suffer and our economic recovery will take a huge hit. No wonder the public don’t trust politicians."

       His rival Kemi Badenoch accused Rachel Reeves of a financial "con trick" after she announced changes to debt rules that will allow her to borrow up to ￡50billion for investment.

       Ms Badenoch said: "We don’t know the exact detail yet but we do know that it’s coming.

       "Reeves is about to go on a spending binge with the nation’s credit card, throwing billions into an unreformed system which will take the money but not deliver the results."

       Kemi Badenoch and Robert Jenrick have attacked Labour's plan (Image: Getty)

       10 hours ago06:09 Jon King

       Tory peer says ￡22bn 'black hole' a fig leaf to hide tax rises

       A shadow Treasury minister has warned Rachel Reeves is "likely to break promises made to the British people" in the Budget.

       Baroness Vere of Norbiton accused the Chancellor of a "screeching U-turn" over changes to the Government's fiscal rules.

       The Labour Party's manifesto laid out the Government's fiscal rules as: day-to-day spending must be met by revenues and debt must be falling as a percentage of GDP by the fifth year of the forecast.

       However, Ms Reeves has confirmed that she will change how debt is calculated, which will alter how much debt the UK officially has to "free up that money to invest".

       Lady Vere told the House of Lords on Tuesday: "Over the next 24 hours, the Chancellor is likely to break promises that she made to the British people in the run up to the election.

       "And I am in no doubt that was always going to be the plan. "This is why the Treasury magicked up a fictional black hole, a black hole which rather incredulously contains spending decisions made by the current government.

       "This fictional black hole will be invoked once again at the Budget statement tomorrow to act as a fig leaf to cover tax rises that will put more juice into the phrase 'tax people until the pips squeak'."

       Baroness Vere of Norbiton accused the Chancellor of a 'screeching U-turn' (Image: Getty)

       10 hours ago06:04 Jon King

       How is Rachel Reeves expected to sell her Budget to Brits?

       Rachel Reeves will pledge to put "more pounds in people's pockets", fix the NHS and grow the economy in Labour's first Budget, despite warnings of tough decisions to come.

       The Chancellor, the first woman to hold the role, will say there are "no short cuts" to driving the economic growth Labour has promised to deliver other than to invest.

       In her speech, Ms Reeves is expected to say the "prize on offer" for Labour's plans is "immense", and will lay out new funding to cut hospital waiting lists, pave the way for more affordable homes and rebuild crumbling schools.

       Rachel Reeves will pledge to put more pounds in people's pockets (Image: Getty)

       10 hours ago06:01 Jon King

       Good morning

       Hello and welcome to Express.co.uk's live blog where we'll be bringing you details of Chancellor Rachel Reeves' Budget and the latest reaction.

       SUBSCRIBE Invalid email

       We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy