News

Taxes up, spending up – It’s Reeves’ gig gamble

Published

2 months ago

October 30, 2024

THE HEADLINE from today’s Budget is a £40bn increase in taxes.

However, those tax increases are aimed at wealth, investment income, and businesses rather than standard-rate income taxpayers.

For the latter, the minimum wage rose, the price of draught beer was cut, the freeze in income tax thresholds will end, fuel duty will not rise, and the government is forecast to pump £70bn into public services and national infrastructure.

For small businesses, the Chancellor promised to “permanently lower business rate multiplies” for retail and hospitality businesses, cutting the amount of money High Street business pay in rates.

However, the Chancellor giveth and the Chancellor taketh away.

Rachel Reeves said that the employers’ NI rate will increase to 15 per cent from April next year.

In addition, the threshold at which employers start paying NI on each employee’s salary will drop from £9,100 to £5,000.

Those decisions represent a massive tax raid with massive potential impacts on prices (up), wages (lower), and hiring decisions.

Ms Reeves said that the increase in the employers’ NI rate, combined with the lowering of thresholds, would raise £25m for public services.

However, she sugared the pill, also announcing the employment allowance will rise from £5,000 to £10,500.

The Chancellor said: “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 than 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.”

The Chancellor also targeted wealth and inherited wealth.

Inherited pensions, formerly exempt from Inheritance Tax, will be subject to it. The threshold will be frozen (effectively, a rise). The Chancellor reintroduced the cap on lifetime pension pots, which was introduced and then scrapped under the Conservatives.

Farmers leaving estates worth over £1m will be subject to 20% in inheritance tax. Capital Gains Tax on shares and dividend income (unearned income) will rise from 10% to 18% for standard-income taxpayers and to 24% for higher-rate income taxpayers.

For those at the upper edges of income, there was even more bad news. The Chancellor announced the abolition of Non-Dom tax status, which allows the wealthy to duck tax on their income by claiming to be based abroad. That is unlikely to hit many taxpayers, but closing the Non-Dom loophole is an important symbolic act.

Rachel Reeves’s big gamble is that, by frontloading tax increases, there will be no need for substantial future tax rises for the next three years or so. Having boxed herself in on employee NI and income tax, Rachel Reeves left herself limited room for manoeuvre, making tax rises essential if she was to balance the books and fund unaccounted-for expenditures. As examples of the foregoing, Ms Reeves revealed that although the previous government announced compensation schemes for Post Office employees and postmasters and the victims of the contaminated blood scandal, it had not budgeted for funding them and – as Shadow Chief Secretary to the Treasury Laura Trott confirmed afterwards, had no intention of standing by the public sector pay awards it announced at the Budget in March.

The second gamble is that injecting money into capital infrastructure projects will drive forward growth and economic activity. If that happens, it will buck a two-decade-long trend of stagnation and industrial failure. If that works, Labour will reap the benefits; if it doesn’t, and if public services do not improve markedly, Labour will suffer.

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

Published

3 hours ago

December 21, 2024

Tom Sinclair

PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

Community

Festive celebrations at St Davids Cathedral this weekend

Published

4 hours ago

December 21, 2024

Tom Sinclair

ST DAVIDS Cathedral is set to host two special events on Sunday (Dec 22), offering a blend of joyful participation and traditional carol singing to mark the Christmas season.

In the morning, families are invited to the Scratch Nativity at 11:00am. Attendees are encouraged to come dressed as wise men, angels, sheep, or shepherds and take part in an unrehearsed retelling of the Christmas story. Canon Leigh described the event as: “Complete, wonderful chaos for an hour… but with some poignant, thought-provoking moments to centre ourselves on the real meaning of Christmas.”

Later in the evening, the Festival of Nine Lessons and Carols by Candlelight will take place at 7:00pm, featuring the Cathedral Choir. The event, steeped in tradition, will see the cathedral bathed in candlelight as carols and scripture readings fill the historic space.

Doors will open at 5:45pm for those seeking unreserved seating, and a large turnout is expected for this beloved Christmas celebration.

Crime

Three men from London admit their guilt over illegal cannabis farm

Published

4 hours ago

December 21, 2024

Tom Sinclair

THREE men admit their guilt after police discover over 700 cannabis plants during a raid on a former school building in Llandysul.

Officers from Dyfed-Powys Police executed a warrant at the former Ysgol Gynradd Llandysul on Heol Llyn Y Fran on November 15. Inside, they found 737 cannabis plants spread across multiple rooms.

Armeld Troksi, 29, and Njazi Gjana, 27, both from Empire Avenue in Edmonton, London, along with Ervin Gjana, 24, from Durham Avenue in Romford, were arrested at the scene and later charged with producing cannabis.

The three men appeared before Swansea Crown Court, where they admitted their involvement in the illegal operation. Defence solicitor Joshua Scouller requested a pre-sentence report for Ervin Gjana, which was granted by Judge Geraint Walters.

Sentencing is scheduled for January 20.

A Dyfed-Powys Police spokesperson said: “Following a warrant executed at the former school on Heol Llyn Y Fran, officers discovered a significant cannabis grow containing 737 plants.

“We are grateful to the local community for their continued support and cooperation. Officers will remain in the area while the site is secured.

“Our commitment remains firm in disrupting drug production and supply networks across our force area.

“We encourage residents to report any suspicious activity, no matter how small it may seem. Every piece of information can make a difference, and reports can easily be submitted through our website.”