News

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

Published

3 weeks 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.

News

Tribute paid to ‘kind and caring’ solicitor who died in crash

Published

5 hours ago

November 21, 2024

Tom Sinclair

THE FAMILY of Emily Thornton-Sandy, a 30-year-old woman from Pontarddulais who tragically lost her life following a collision, have paid heartfelt tributes to a wife and daughter described as an “intelligent, kind, and caring soul.”

Emily passed away after her vehicle was involved in a collision on the A48 between Cross Hands and Pont Abraham on Tuesday (Nov 5) while she was driving home from a veterinary appointment. Her beloved dog, Scout, also died shortly after the crash.

Despite being rushed to the University Hospital of Wales, Emily’s condition worsened, and she died on Monday (Nov 11), with her husband by her side.

Emily’s husband shared his grief in a moving statement: “This still feels unreal, and none of us can take it in. Emily was kind, compassionate, and had so much more to give. She used her intelligence in her work as a solicitor, where she strove to help others affected by industrial disease. Emily loved literature and was passionate about her house plants.

“Her passing has left a hole in our lives that can never be filled. I wake up every morning in disbelief at the fact that I will never see her smile again. Emily deserved a long and happy life, and the thought of what happened to her that day brings the greatest pain to all those who love her.

“Scout was the most gentle, affectionate dog you could ever meet, and I have not been able to grieve for her death as I should. She brought great happiness to both me and Emily, and the world has lost so much joy.

“I wish to thank all emergency services staff and persons at the scene for all the help they provided to Emily and Scout, and to the staff at University Hospital of Wales for doing everything they could for Emily in the days following the collision.”

Emily’s parents also shared their heartbreak in a separate statement:
“The loss of Emily, our only child, is devastating. She meant the absolute world to us, and our lives have been changed forever. Not only have we lost our baby girl, but we mourn the loss of the grandchildren that we will never have.

“Emily has always been our pride and joy, and she achieved so much during her short life. She was an intelligent, kind, and caring soul who touched the lives of so many people, both in life and in death. She will never be forgotten.”

Emily’s death has left a lasting impact on all who knew her, and her family’s tributes reflect the deep love and admiration they held for her.

Community

Public meeting for Haverfordwest’s new transport interchange

Published

5 hours ago

November 21, 2024

Tom Sinclair

RESIDENTS of Haverfordwest are invited to attend a public engagement event at HaverHub on Thursday, 21st November from 3:00pm to 7:00pm to meet the team behind the upcoming Public Transport Interchange (PTI) development. The event will provide an opportunity for local people to learn more about the exciting project, which is due to start its rebuild phase imminently.

The PTI scheme forms part of the broader South West Wales Metro project, designed to create a modern, integrated transport hub for Haverfordwest. The new facility will bring significant improvements to local transport infrastructure, including enhancements to pedestrian and cycle access, as well as a more efficient and accessible bus station.

Cllr Paul Miller, Cabinet Member for Place, the Region, and Climate Change, said: “This is another exciting step in the extensive regeneration of Haverfordwest, and we look forward to seeing construction start on this important project.”

The new development will include seven bus bays, upgraded passenger facilities, and a multi-storey car park with around 280 spaces. The car park will also feature electric vehicle charging points, with provisions for future expansion, as well as solar panels on the roof. These green features are part of the project’s commitment to sustainability and the promotion of Active Travel, with a focus on walking and cycling.

Cllr Thomas Tudor, County Councillor for the Castle Ward, welcomed the public engagement event, saying: “This is a great opportunity for residents to come together and learn more about the ongoing regeneration projects that will improve the town for everyone.”

The PTI project will also improve car parking provision and local bus access at Haverfordwest railway station, contributing to a more efficient and sustainable transport network for the town.

Jason Taylor, Regional Director at Kier Construction, said: “We are excited to meet the people of Haverfordwest and share the plans for this important project. Kier is proud of its Welsh heritage and thrilled to contribute to the town’s development.”

Kier Construction, which has been awarded the contract to build the PTI, will also have a presence at Riverside Shopping Centre, where residents can drop in for more information once work begins this month.

Please note that the temporary Riverside car park has closed to make way for the development.

News

Police ask for witnesses after single vehicle collision on A477

Published

6 hours ago

November 21, 2024

Tom Sinclair

A SINGLE-VEHICLE road traffic collision occurred on the A477 between Redberth and Broadmoor, Pembrokeshire, early this morning (Thursday, Nov 21).

Dyfed-Powys Police were called to the scene at around 7:10am. One person was taken to hospital with injuries that are not believed to be life-threatening.

The road was closed while emergency services attended, and the vehicle was recovered. It reopened at approximately 9:20am.

Police are appealing for anyone with information, dash cam, or CCTV footage to come forward.

Contact methods:
🖥️ | Submit online
📧 | Email: [email protected]
💬 | Direct message on social media
📞 | Call 101

Alternatively, you can contact Crimestoppers anonymously by calling 0800 555 111 or visiting crimestoppers-uk.org.

Please quote reference: 034 of 21st November.