News

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

Published

2 years 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.

Crime

Scaffolder banned after cannabis smell reported from van

Published

10 minutes ago

June 30, 2026

Sarah Jane Absalom

A SCAFFOLDER has been banned from driving for 14 months after an off-duty police officer smelt cannabis coming from his Volkswagen Transporter as it travelled through Slebech.

The report was made to police at around 10.30am on February 15. When officers located the vehicle, they discovered it was being driven by 46-year-old Christopher Bennett.

Further blood tests showed Bennett had 16.8 mcg of Delta-9 tetrahydrocannabinol in his system. The legal limit is 2.

This week Bennett, of Queensdown Gardens, Brislington, Bristol, pleaded guilty to drug-driving when he appeared before Haverfordwest magistrates. He was represented in court by Alaw Harries.

“The defendant is remorseful for his actions and recognises the seriousness of the offence,” Ms Harries told the Bench.

“He suffers significant pain following operations to his shoulders and has been prescribed codeine. But this causes drowsiness, so he began self-medicating using cannabis.

“On the day of the offence, he was in worse pain than usual, so he used cannabis earlier than he normally does.”

Ms Harries said the conviction would have serious financial consequences for Bennett, who works as a self-employed scaffolder.

“His driving licence is fundamental to his livelihood,” she said.

“The financial consequences are going to be significant to him, as well as to those who are dependent on him.”

Magistrates fined Bennett £600 and ordered him to pay a £240 surcharge and £85 costs.

He was disqualified from driving for 14 months.

Crime

Estate agent banned after drug-drive crash in Milford Haven

Published

23 minutes ago

June 30, 2026

Tom Sinclair

Alison Walker had nearly five times the legal benzoylecgonine limit in her system

A PEMBROKESHIRE estate agent has been banned from the road after admitting driving through Milford Haven with nearly five times the legal limit of a cocaine metabolite in her system.

Alison Walker, 59, was arrested on February 2 after her white MG was involved in a two-car collision on Great North Road, Milford Haven.

“Fortunately there were no injuries, just damage to the vehicles,” Crown Prosecutor Sian Vaughan told Haverfordwest magistrates this week.

After providing a positive roadside drug swipe, Walker was arrested and asked to provide blood samples. These showed she had 240mcg of benzoylecgonine in her system. The legal limit is 50mcg.

Walker, of Woodland Crescent, Milford Haven, pleaded guilty to drug-driving and was represented in court by solicitor Tom Lloyd.

He told the bench that prior to the offence, Walker had been employed as an estate agent.

“She has a good relationship with her boss, and as soon as this conviction is dealt with and her sentence has been served, he will be happy for her to return to her employment,” he said.

After considering a comprehensive probation report, magistrates disqualified Walker from driving for 20 months.

She was fined £80 and ordered to pay a £114 court surcharge and £85 costs. Walker must also carry out a 12-month community order, during which she must complete 15 rehabilitation activity requirement days.

Crime

Pembroke Dock motorist banned after driving with cocaine in system

Published

1 hour ago

June 30, 2026

Court Reporter

A PEMBROKE DOCK motorist has been banned from the roads after being caught driving with more than seven times the legal cocaine limit in her system.

Naomi Grant, 47, was stopped by police on the night of February 6 as she drove her Vauxhall Astra along the A477 near Pembroke Dock.

After providing a positive roadside drug swipe, Grant, of Cheriton Road, Pennar, Pembroke Dock, was taken for further tests.

Blood analysis showed she had 74mcg of cocaine in her system. The legal limit is 10mcg. She also had 1,200mcg of benzoylecgonine, a breakdown product of cocaine, where the legal limit is 50mcg.

This week Grant, who has no previous convictions, pleaded guilty to two charges of drug-driving when she appeared before Haverfordwest magistrates.

She was represented by solicitor Tom Lloyd, who told the court that his client is currently prescribed a considerable amount of medication for a number of medical issues.

“She also has her own personal assistant as a result of her medical needs,” he said.

“She has done everything that has been asked of her in relation to this offence and has engaged with the Dyfed Drug and Alcohol Service to help her move forward.”

Magistrates disqualified Grant from driving for 12 months and fined her £120.

She must also pay £85 court costs and a £48 surcharge.