‘Panic at No 10’ and investors ‘lose faith’ in Budget
Many of Saturday’s newspapers are reporting on the upcoming budget after Chancellor Rachel Reeves backed away from raising income taxes. The Financial Times said investors had “lost confidence” in the Budget after Britain’s borrowing costs rose “sharply” on Friday. Fund manager Mike Riddell told the paper the market was “heading down the garden path” after the Chancellor previously indicated tax rises were possible.
There is “panic at number 10”, according to an unnamed government source quoted by The Independent, who said the “shock tax U-turn” had unsettled markets. Prime Minister Sir Keir Starmer is trying to “quell a growing party rebellion” following a leadership battle speech in Westminster this week, the newspaper reported.
The Daily Mail says the Chancellor has “lost control” and calls Reeves’ budget a “fraud” and describes the apparent change to income tax as “insulting”. Unnamed government sources told the newspaper that the decision followed the Office for Budget Responsibility’s prediction that public finances would be healthier than expected.
The Times writes that the Treasury is ready to extend the freeze to income tax thresholds, which it calls a “stealth tax”, to raise the funds it needs. The article reports that Reeves will confirm that the rate at which people start paying income tax will remain the same until 2030, extending the policy first introduced under the Conservative government. This raises the possibility that state pension recipients will have to pay income tax for the first time from next year.
The Guardian says freezing the threshold would “take £7.5bn out of income from millions of workers” as inflation pushes people into higher tax bands. Pictured is Radio 2 presenter Sara Cox, who raised £7 million for Children In Need after completing the ultra-marathon challenge.
Property tax changes expected in the Budget will “hit the middle classes”, says the Daily Telegraph. The Chancellor is reportedly considering introducing an additional surcharge on some high-value properties on top of the council tax they already pay.
i Paper says No 10 is blaming its own MPs for “market jitters” this week. Borrowing costs rose sharply on Friday as news emerged that the chancellor had abandoned plans to raise income tax. Downing Street is reportedly placing the blame on the rebel MPS, which blocked cuts to disability benefits earlier this year, saying it “scared the markets”.
A terminally ill grandmother’s call to “show that you care” leads to the Daily Express calling for the assisted dying bill to be passed. Also on the front page, King Henry III. Charles’ birthday was marked with a photo of the monarch going on a ramble.
Daily Mirrors stars I’m a Celebrity Get Me Out of Here star Shona McGarty. The EastEnders actor told the newspaper: “I’m out in the jungle to show who’s boss.”
Robbie Williams told the Sun his vision became blurry after taking a weight-loss pill. The singer spoke to the newspaper about the apparent side effects but said she still plans to continue using the shots.
Finally, the Daily Star shows Peter Mandelson leaving the home of former chancellor George Osborne. The newspaper claims that Madelson, who left his post as US ambassador in September due to his ties to Jeffrey Epstein, urinated on the wall on his way home. He describes the incident as a “leak scandal”.
