Britain’s households face a fresh squeeze on living standards despite a series of Budget giveaways – with frozen tax thresholds set to drag millions of more people into paying income tax and into higher tax bands.
The Chancellor’s first Budget saw him preside over a raft of giveaways – including a surprise £100 cash payment into the bank accounts of up to 20 million households in council tax bands A to D in England to help with energy costs. Similar support will also apply to households in the rest of the UK.
But the Institute for Fiscal Studies (IFS) warned that it was a “fiddly” Budget, with “very little that will move the dial on growth”. It pointed out that the Office for Budget Responsibility had downgraded household income growth in this Parliament from 0.7 per cent to 0.4 per cent – the second worst since 1979, with only the last Parliament worse.
Key takeaways as Russell Brand gives evidence in rape trial
Russell Brand on Wednesday responded to allegations made by six women as he gave evidence at Southwark Crown Court, where he is on trial for accusations of rape and sexual assault.
Brand has denied all the allegations made against him.
What you need to know
Brand told the court that he had struggled
to find anyone to give evidence on his behalf, saying the consequences of the 2023 , and Channel 4 investigation into him were “devastating”.
His barrister Ian White asked Brand if anyone with relevant evidence would be willing to testify on his behalf or be “willing to touch [him] with a barge pole”, to which the comedian responded “no”.
‘My entire life has been consumed by these allegations’
Brand told the court that around the time of the Channel 4 documentary, which with and reported the allegations, his baby son had to have open heart surgery at the Great Ormond Street hospital in London.
- Brand told jurors that the hospital refused to let him stay with his son “due to the materials published”.
- The comedian said his “entire life has been consumed by these allegations”.
- “I have devoted myself to these matters,” he said.
Brand ‘misused’ fame for ‘reckless philandering’
Brand told the court he was “in a position of fame – a successful person” and said he “misused that commodity foolishly” and “consensually”.
He said he “was very comfortable allowing that to facilitate sexual access” and built his life around “reckless philandering”.
Brand denies allegations
Brand again denied the allegations against him. He told jurors that he believed consent was “fundamental, essential, necessary, and indeed, in many ways more important than sex itself”.
The trial will resume on Thursday with the defence’s case.
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How blood pressure pills could be dementia gamechanger
Vascular dementia is the second most common type of dementia and often gets overshadowed by Alzheimer’s, despite being responsible for up to 30 per cent of cases.
The latest research also suggests it is more common than is thought, often occurring alongside an Alzheimer’s diagnosis but going unrecognised.
Treatment breakthrough?
The good news is that there are several drugs already in use for other conditions that cut the odds of vascular dementia, including the humble blood pressure pill.
And there are further treatments around the corner that could be more potent still.
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What causes Vascular dementia?
- In about a third of those diagnosed with Vascular dementia, the cause is a stroke, a localised area of brain damage caused by a sudden blood clot or bleed.
- In the rest of the cases, the brain damage is spread out and has happened over many years.
- With ageing, blood vessels can become unable to widen to supply enough nutrients to the brain’s nerve cells and take away their waste.
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Drugs that could help
- Those diagnosed with vascular dementia are often told there are no treatments. This ignores the fact that, if caught early, there are known strategies for keeping blood vessels healthy.
- The most obvious step is to keep blood pressure under control, as high blood pressure further damages the brain’s small blood vessels. Blood pressure drugs were shown last year to cut dementia diagnoses.
- The Lancet Commission’s review of dementia prevention identified 14 risk factors that people could avoid, and many involved blood vessel health.
- They include standard lifestyle measures like stopping smoking, cutting alcohol, keeping fit and controlling cholesterol.
World news
Could Africa’s Ebola outbreak reach the UK?
One of Africa’s top health officials has warned that the “unprecedented” spread of Ebola across the continent means it could reach the UK and other countries.
What you need to know
Cases pass 10,000
The number of confirmed Ebola cases in the DR Congo has risen above 10,000, according to government data shown on Tuesday.
Fears for global spread
This coincides with fears the epidemic could spread to more African countries and around the world.
Second deadliest
This Ebola outbreak is the second-largest on record – only behind the 2014 outbreak.
‘We want all countries to know that they are not safe’
Dr Jean Kaseya, director general of the Africa Centres for Disease Control and Prevention (CDC), has compared the outbreak to the Covid pandemic.
“We want all countries to know that they are not safe if they don’t take appropriate measures,” reported him as saying.
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East, Central and West Africa have now been affected by Ebola, which Kaseya called “unprecedented”.
- DR Congo on 15 May said it had identified its 17th outbreak since Ebola was identified in 1976.
- Uganda reported 20 cases in May and June but has not recorded any since.
- Nigeria this week confirmed a case in the capital, Abuja. She has since been evacuated on a medical evacuation flight to Switzerland.
Case recorded outside of Africa
France is the only non-African country to have confirmed a case of Ebola so far – a doctor who had returned from DR Congo.
Kaseya said leaders around the world should realise that while cases are so far only ravaging Africa , the situation could change.
“We shouldn’t forget that at the beginning of Covid, many countries said there was zero risk of being affected, but a few months later, they became the hotspot,” he said.
“We don’t want to see the UK and other countries become the hotspot.
What is Ebola?
- Ebola is a highly contagious, severe, and often fatal illness spread through direct contact with the bodily fluids of infected people, such as blood or vomit
- The Bundibugyo virus – the strand recoded in DR Congo – has no approved treatment, though vaccine trials are under way.
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Dense fog to cause chaos this week – tips for safe driving
Calmer weather may be on the way after a weekend of brutal storms, but many Britons will still have to contend with dense and stubborn fog.
What to expect
The Met Office has warned that heavy fog conditions will set in later this week.
- Some parts of the south and central parts of the UK could wake up on Thursday to some fairly dense fog patches.
- “They will be quite slow to clear,” the Met Office said.
- “We’re entering that time of year where fog can be quite stubborn to move once it’s formed.”
- After three people were killed as a result of storms over the weekend, the Met Office warned that the main risk of any disruption over the next five days would be from “dense fog patches rather than wind and rain”.
The forecast
With calmer weather, winds will be lighter, causing more mist and fog to form, especially overnight and lingering through the mornings. In some places, fog may not clear at all and make it feel quite chilly.
Much needed rain will also be in short supply. October saw an average amount of rainfall after a summer of drought. Yet some reservoirs are still exceptionally low.
Ahead of the weather, the AA has reissued advice to drivers likely to be affected by fog this week.
The AA’s advice to drivers in fog
- Use dipped headlights, wipers and demisters.
- Use fog lights when you need to, but remember to switch them off once visibility improves.
- Beware of other drivers not using headlights.
- Only drive as fast as conditions allow.
- Slow down so you can stop in the distance you can see clearly.
- Allow three seconds instead of two between you and the car in front.
- Check your mirrors before you slow down.
- Open your window to listen for traffic at junctions if you can’t see.
How you could get right to see what your colleagues earn
Workers could soon have the legal right to know details of their colleagues’ salaries and bonuses under proposals from the UK equality watchdog.
What you need to know
- The Equality and Human Rights Commission (EHRC) said employers should be forced to respond to questionnaires from their employees seeking information about pay if they suspect a colleague is being paid more.
- Employees could request their colleague’s basic salary, working hours, overtime and any bonuses.
- The EHCR recommended it be a legal requirement for employers to answer their workers’ query within a specified timeframe.
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Why you could expect more questionnaires at work
- The EHRC’s recommendation came as part of its response to a Government consultation on plans to overhaul equal pay legislation.
- The Government wants to reintroduce statutory questionnaires to help workers resolve disputes and work out whether they have been paid unfairly, without having to resort to lengthy and costly legal proceedings.
- Such questionnaires were previously available under the Equality Act 2010, before being abolished in 2014.
Could this lead to fairer pay?
The EHRC argued that specific pay information needed to determine whether pay discrimination has taken place is in the sole control of the employer. Disclosure through a questionnaire procedure could support early resolution of any disputes
The gender pay gap among full-time employees was 6.8 per cent in April, according to the Office for National Statistics.
Tommy Robinson found guilty of harassing two journalists
Far-right activist Tommy Robinson has been convicted of harassing two journalists and causing them to fear violence.
The 43-year-old, whose real name is Stephen Yaxley-Lennon, was labelled a “bully” by prosecutors after freelance reporter Andrew Young and editor Jacob Dirnhuber felt forced to either leave their homes or employ extra security for fear of a “vigilante” attack.
What you need to know
Jurors at Southwark Crown Court found Robinson guilty of both charges of harassment causing fear of violence.
His trial heard how the anti-migrant activist “retaliated” after the and published a story about him “stoking riots from his sunbed” during unrest in the UK in August 2024 following the murders of three girls in Southport.
5 min read
The back story
- Robinson made a series of posts
about the unfolding situation while
on holiday in Cyprus, prompting the newspaper to send Young and a photographer to the island. - After the published its story, Robinson posted criticisms of Young and Dirnhuber on his X account.
A quick guide to this year’s Budget
This is a Budget for the working people.
Chancellor John Healey today unveiled the long-anticipated Budget, the first for Prime Minister Andy Burnham. Healey called it a Budget “for the working people” as he announced details.
So what are the key takeaways?
Cheaper energy
- This winter, 20 million households in council tax bands A to D will receive a £100 energy payment paid directly into people’s bank accounts – a £2.6bn scheme.
- Gas standing charges will be removed from next year, and similar reforms will follow for electricity.
- The Chancellor says he will remove some levies on energy bills.
- He also extended a VAT cut on electricity to July 2027, cutting £50 off the annual price cap.
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Savings and pensions
- The tax-free limit on cash ISAs will stay at £20,000, abandoning plans to reduce it to £12,000.
- “To make the investment more accessible, I will work with the sector to create a new starter ISA to reward first-time investors,” Healey said.
A new pension tax allowance will be introduced. “Pensioners with income up to the value of the full new state pension will not pay income tax in this parliament,” Healey said.
Benefits and paternity leave
- A benefits rule that punished unpaid carers for earning too much is being abolished. Now, if they earn any amount above the threshold set by means-testing (£204 a week), they lose the whole carer’s allowance.
- This will be replaced, Healey announced.
- Self-employed dads and same-sex partners will also be eligible for two weeks’ support worth up to £194 a week.
3.9%
The Chancellor announced a rise in the minimum wage by nearly 3.9 per cent, the same rate for workers aged 18 to 20 years old and those aged 21 and over.
The Chancellor promises to reform non-compete clauses in contracts.
- Healey also said he will extend the fuel duty cut until July 2027.
- Workers using their car to get to work can be reimbursed a greater amount by their employers tax-free – the higher mileage rate will increase from 25p to 35p per mile.
The threshold for small business rate relief will increase from £12,000 to £18,000 for retail, hospitality and leisure.
Healey will also raise taxes on the gambling industry to pay for the changes. A £10m alcohol duty relief will be provided for around 2,000 small British brewers and cider makers.
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How to be more grateful for daily life in five easy steps
The world feels like a difficult place at the moment, and it can feel very hard sometimes to find things to be thankful for; when we are overwhelmed, we have less capacity to notice and reflect on the good things. Yet, ironically, proactively cultivating gratitude is one of the things that can actually help us feel less stressed.
NHS GP dR RADHA
The science
Research has shown that feeling or expressing thanks can actually alter our brain.
- The balance of neurotransmitters change; more serotonin and dopamine (feel good chemicals) are produced.
- This can be long lasting if we make gratitude a regular habit.
- We also get a decrease in our cortisol (stress hormone) levels which helps lower anxiety.
- Being grateful can strengthen the nerve pathways which triggers positive emotion.
How can we build gratitude?
Change your words
Instead of seeing something as a problem, try to see the opportunities within it.
Our brains are very receptive and what we read or write can alter our emotional system.
Express it
This will not only make you feel good, but you will also get a positive response from others.
How can we build gratitude?
Notice more
Throughout your day, try to notice all the things that are going well; has someone opened a door for you, or smiled?
The basics
By being thankful for the small things every day, we are far more likely to be and stay healthy so that we can enjoy them.
What to do
Gratitude can lead to feelings of optimism, lower our blood pressure, and improve sleep quality.
- Write down what potential good aspects there are to the things you don’t feel like doing, or even what could be worse about it.
- Spend a few minutes writing down three things that you are looking forward to that day, or the good things that have happened to you that day.
- Say thank you to yourself for the things you have achieved, or managed to get through and changed that day.
Economists also pointed out that the energy relief measures – including the scrapping of the standing charge – the fixed daily fee households pay for being connected to the gas and electricity networks – would be more than offset by an effective tax rise as income tax thresholds remain frozen.
Stealth taxes
Analysis for The i Paper by tax consultancy Blick Rothenberg suggests that frozen income tax thresholds will leave people earning between £20,000 and £50,000 facing an extra tax hit of £717 in 2026-27, rising to £814 in 2027-28.
For someone earning £60,000, the estimated figure rises from £2,079 to £2,177, while those earning between £70,000 and £100,000 face a hit of £2,151 this year, increasing to £2,443 next year.
The effect, known as fiscal drag, occurs when tax thresholds remain frozen while wages rise – meaning people pay more tax as a greater proportion of their income becomes taxable or they are pushed into higher tax bands.
The impact is expected to grow over time. Forecasts show that by 2031-32, 6.7 million more people will be paying income tax and 5.4 million more will be paying the higher rate than if thresholds had risen in line with inflation.
The freeze, introduced by the Conservatives in 2021 and extended by Rachel Reeves until 2031, is therefore set to bring millions more into the Exchequer and push more earners into the 40 per cent band.
A spokesperson for the Liberal Democrats said: “The last thing millions of people need is a massive stealth tax penalty just as energy bills rise and inflation soars.”
‘Grim’ picture of living standards
The Office for Budget Responsibility (OBR) painted a “grim” picture of living standards, forecasting that households will be little better off than before the Covid-19 pandemic.
Its forecasts suggest real household disposable income per person – a measure of the purchasing power of household incomes – will be just 1 per cent higher in 2030 than it was a decade earlier.
Professor David Miles, a member of the OBR’s Budget Responsibility Committee, told journalists on Wednesday afternoon: “It’s a pretty grim picture.
“If you go back to just before Covid and take that as your base, where we are right now, which is seven years later, [there] is virtually no growth in per-person real household disposable income. That’s pretty unusual in the history of the UK.”
Miles said the stagnation in living standards has been driven to a large extent by “very big increases in energy prices” following Russia’s invasion of Ukraine in 2022, and then the closure of the Strait of Hormuz this year because of the US-Iran war.
He said it was “very hard” for the UK to escape these energy price shocks because “we’re a big importer of energy”.
Miles said that the “negligible” annual growth in households’ disposal income since the pandemic added up to a “dismal period in British economic history”, and that it had been a “rather dreadful period since the financial crisis of very low growth in GDP per capita”.
More optimistically, he said that the forecast for GDP growth at the back end of the OBR’s forecast is “really rather strong”, with the watchdog predicting that annual growth will hit 1.8 per cent in 2029.
Promise of ‘breathing space’
Healey used his Budget to repeatedly promised to give struggling households “breathing space”, using the phrase 13 times in his speech.
On pensions, he introduced a new allowance from April 2027 to prevent pensioners whose only income is the state pension from being dragged into paying income tax as payments rise.
The measure fulfils the Government’s pledge to protect pensioners from tax bills caused by increases to the state pension, although it does not exempt all pensioners from income tax.
The Chancellor also reversed Rachel Reeves’s plan to cut the annual cash ISA allowance from £20,000 to £12,000.
However, from April 2027, tax rates on savings interest and rental income will rise by two percentage points at each tax band, on top of last year’s 2 per cent increase, a 4 per cent increase altogether from April, increasing bills for savers and landlords.
But the Budget faced questions over its approach to longer-term challenges, including welfare reform and defence spending.
The welfare bill is forecast to be around £8bn higher by the end of the decade than projected in March, raising questions about the Government’s plans to control spending.
On defence, the Government did not spell out how it would meet its commitment to increase defence spending to 2.5 per cent of GDP by 2027, leaving uncertainty over how the target would be funded alongside other spending priorities.