Latest news with #ex-Tory
Daily Mirror
a day ago
- Business
- Daily Mirror
Hundreds of thousands of pensioners face 'new' tax this year
The Chancellor is under fire as hundreds of thousands more pensioners are dragged into the income tax net, thanks to the triple lock and the personal allowance freeze Soaring numbers of pensioners are set to get caught in the income tax net this year – without feeling any richer – as HMRC stats indicate 420,000 more pensioners will pay the tax in 2025-26. Nearly 8.7 million over-65s will be paying income tax, marking a 5% hike from the previous year. The issue stems from the ex-Tory government's move to anchor personal tax allowances at £12,570 from 2021 all the way through to possibly 2028 – a decision that Chancellor Rachel Reeves upheld in her inaugural Budget. This worrying threshold freeze pairs with state pension values climbing almost 30% thanks to the 'triple lock', and that means a substantial number of retirees will now hand over basic-rate tax cash at 20%, despite relying solely on state support. Policy expert David Brooks from Broadstone cautioned in The Times: "While the country's demographic shift naturally increases the number of pensioners liable for income tax, fiscal drag is unequivocally pulling hundreds of thousands more into the income tax bracket each year." In 2021, the full new state pension was at £9,332.20. By April, it had increased to £11,973 - just £597 short of the frozen personal allowance. The Office for Budget Responsibility forecasts that within two years, it will rise again to £12,885.50, surpassing the tax-free threshold by £315.50. Wealth manager Quilter has warned that pensioners receiving the full entitlement - after 35 years of National Insurance contributions - would be taxed £63 a year on their pension alone, without considering any other income such as savings, dividends or rental returns. Critics have long contended that this so-called 'fiscal drag' is a method for the Treasury to gather billions, without outright raising tax rates. Meanwhile, millions of workers are also being pulled into higher tax brackets. The number of Brits paying 40% higher-rate tax is predicted to reach 7.1 million this year, up from 5.1 million in 2022-23 - a 39% increase. Even more remarkable perhaps is the surge in those paying the 45% top rate: 1.23 million people will surrender nearly half their earnings above £125,140 this year, more than double the 570,000 from just three years ago. The number of basic-rate taxpayers has also risen - from 28.8 million in 2022 to 30.8 million today. Neela Chauhan, partner at accountancy firm UHY Hacker Young, said: 'Though it might seem equitable for higher earners to be paying more tax, there are real concerns over the impacts of placing an ever higher tax burden on high earners. 'Increasing the tax burden too high could push these people to leave the country or deter talented people from moving to this country. There are already concerns of a 'brain drain' in the UK.' Rachel Reeves has said the freeze on tax thresholds will end in 2028, however she is now under pressure to continue it through to 2030 in order to head off a black hole in government finances and stick to her fiscal rules.
Spectator
3 days ago
- Politics
- Spectator
Former Scottish Tory MP jumps ship to Reform
Oh dear. It's not been a good year for the Scottish Conservatives, who have seen multiple councillors defect to Reform UK ahead of next year's Scottish parliament elections. Now, in a further blow to the Tories, it transpires a former Conservative MP has jumped ship to Nigel Farage's party. Talk about a sinking ship, eh? Ross Thomson – who had formerly backed Kemi Badenoch for the party leadership – less than a year after claiming his old group was the only party able to overcome the 'threat' of Farage. The eighth Conservative member in the region to turn his back on the blues, Thomson revealed his new colours after appearing in a party promotional video with Reform's new chairman David Bull at the weekend. Explaining his change of heart, Thomson told the Press & Journal: I did so because only Reform have the courage and answers to the issues facing Scotland and the United Kingdom and Reform are best placed to beat the SNP and sort a Holyrood system that's in desperate need of Reform. Nigel Farage leads with conviction, courage, and above all, he listens. He is the only national leader who understands the serious challenges facing the north-east of Scotland – and what it will take to make our region thrive again. Thomson stood down as an MP for Aberdeen South in 2019 and has since stayed away from frontline politics. But within the last 12 months, the former parliamentarian has been spotted campaigning for the Conservatives on the doors and threw his weight behind Badenoch at last year's Tory leadership contest. Thomson was also a backer of Scottish Tory leader Russell Findlay during last year's leadership race north of the border – writing on social media that Findlay 'embodies authentic conservative values and prinicples'. The ex-Tory MP's move follows the jump made by a number of other Conservative councillors to Farage's crowd in the last few months – and the party even managed to persuade a Labour councillor to join their ranks. While Reform UK didn't win the recent Hamilton by-election, the party's candidate Ross Lambie came third place with 26 per cent of the vote and Farage's lot have continued to poll well. While some polls suggest Reform could pick up as many as 15 MSPs from a standing start, others have suggested the start-up is on track to become the official opposition party of Scotland next year. Watch this space…
Glasgow Times
4 days ago
- Politics
- Glasgow Times
Cross-party body seeks to tackle divisions in wake of 2024 summer riots
The cross-party body, led by former Tory home secretary Sir Sajid Javid and Labour MP Jon Cruddas, says it will seek to examine what the Prime Minister last year called the 'cracks in our foundation'. It has support from across the political spectrum, including the backing of Sir Keir Starmer's Government. The group will develop a series of evidence-based recommendations for measures to build more social cohesion across the four nations. Former Green Party leader Caroline Lucas, ex-Tory mayor of the West Midlands Sir Andy Street, and former counter-extremism tsar Dame Sara Khan are among its members. Sir Sajid Javid served in the cabinets of David Cameron, Theresa May and Boris Johnson (PA) Sir Sajid, who served in the Cabinets of David Cameron, Theresa May and Boris Johnson, said successive administrations had treated social cohesion as a 'second-tier' issue. He said governments had responded 'only when tensions spill over and too often ignoring the root causes.' 'This commission has been established to do what governments alone cannot: take a long view, propose radical policy changes and — crucially — help forge a cross-society consensus about how we want to live together now and in the future,' Sir Sajid said. Former veteran Labour MP for Dagenham and Rainham Mr Cruddas said the commission would seek to respond to one of 'the most pressing and persistently neglected issues' facing Britain. He said: 'This won't be a top-down exercise. Over the next year, we'll be listening directly to people across the UK – drawing on their experiences to help shape practical, long-term answers to the forces pulling us apart.' The commission is being facilitated by the Together Coalition founded by Brendan Cox, the husband of the Labour MP Jo Cox who was murdered by a far-right extremist. It was established in the aftermath of a wave of violent disorder that swept across parts of the UK last summer following the Southport stabbings. False information spread on social media about the identity of the attacker, later found to be 18-year-old Axel Rudakubana, was widely seen as playing a role in fuelling the unrest. The disturbances, which saw mosques and hotels housing asylum seekers targeted, were denounced at the time as 'far-right thuggery' by Prime Minister Sir Keir. Although not officially Government-sponsored, the commission is being supported by the Ministry of Housing, Communities and Local Government. A spokesperson for the ministry said: 'We want to put an end to community division, which is why we are driving £15 million into towns and cities across the country through the Community Recovery Fund. 'This will provide vital support to areas affected by recent unrest – such as £5.6 million for Southport to help rebuild the town. 'We are supportive of the work that the Together Coalition is undertaking, and we look forward to following the commission's progress.'
Powys County Times
4 days ago
- Politics
- Powys County Times
Cross-party body seeks to tackle divisions in wake of 2024 summer riots
An independent commission aimed at tackling community divisions across Britain in the wake of last summer's riots will hold its first meeting on Wednesday. The cross-party body, led by former Tory home secretary Sir Sajid Javid and Labour MP Jon Cruddas, says it will seek to examine what the Prime Minister last year called the 'cracks in our foundation'. It has support from across the political spectrum, including the backing of Sir Keir Starmer's Government. The group will develop a series of evidence-based recommendations for measures to build more social cohesion across the four nations. Former Green Party leader Caroline Lucas, ex-Tory mayor of the West Midlands Sir Andy Street, and former counter-extremism tsar Dame Sara Khan are among its members. Sir Sajid, who served in the Cabinets of David Cameron, Theresa May and Boris Johnson, said successive administrations had treated social cohesion as a 'second-tier' issue. He said governments had responded 'only when tensions spill over and too often ignoring the root causes.' 'This commission has been established to do what governments alone cannot: take a long view, propose radical policy changes and — crucially — help forge a cross-society consensus about how we want to live together now and in the future,' Sir Sajid said. Former veteran Labour MP for Dagenham and Rainham Mr Cruddas said the commission would seek to respond to one of 'the most pressing and persistently neglected issues' facing Britain. He said: 'This won't be a top-down exercise. Over the next year, we'll be listening directly to people across the UK – drawing on their experiences to help shape practical, long-term answers to the forces pulling us apart.' The commission is being facilitated by the Together Coalition founded by Brendan Cox, the husband of the Labour MP Jo Cox who was murdered by a far-right extremist. It was established in the aftermath of a wave of violent disorder that swept across parts of the UK last summer following the Southport stabbings. False information spread on social media about the identity of the attacker, later found to be 18-year-old Axel Rudakubana, was widely seen as playing a role in fuelling the unrest. The disturbances, which saw mosques and hotels housing asylum seekers targeted, were denounced at the time as 'far-right thuggery' by Prime Minister Sir Keir. Although not officially Government-sponsored, the commission is being supported by the Ministry of Housing, Communities and Local Government. A spokesperson for the ministry said: 'We want to put an end to community division, which is why we are driving £15 million into towns and cities across the country through the Community Recovery Fund. 'This will provide vital support to areas affected by recent unrest – such as £5.6 million for Southport to help rebuild the town. 'We are supportive of the work that the Together Coalition is undertaking, and we look forward to following the commission's progress.'
South Wales Argus
4 days ago
- Politics
- South Wales Argus
Cross-party body seeks to tackle divisions in wake of 2024 summer riots
The cross-party body, led by former Tory home secretary Sir Sajid Javid and Labour MP Jon Cruddas, says it will seek to examine what the Prime Minister last year called the 'cracks in our foundation'. It has support from across the political spectrum, including the backing of Sir Keir Starmer's Government. The group will develop a series of evidence-based recommendations for measures to build more social cohesion across the four nations. Former Green Party leader Caroline Lucas, ex-Tory mayor of the West Midlands Sir Andy Street, and former counter-extremism tsar Dame Sara Khan are among its members. Sir Sajid Javid served in the cabinets of David Cameron, Theresa May and Boris Johnson (PA) Sir Sajid, who served in the Cabinets of David Cameron, Theresa May and Boris Johnson, said successive administrations had treated social cohesion as a 'second-tier' issue. He said governments had responded 'only when tensions spill over and too often ignoring the root causes.' 'This commission has been established to do what governments alone cannot: take a long view, propose radical policy changes and — crucially — help forge a cross-society consensus about how we want to live together now and in the future,' Sir Sajid said. Former veteran Labour MP for Dagenham and Rainham Mr Cruddas said the commission would seek to respond to one of 'the most pressing and persistently neglected issues' facing Britain. He said: 'This won't be a top-down exercise. Over the next year, we'll be listening directly to people across the UK – drawing on their experiences to help shape practical, long-term answers to the forces pulling us apart.' The commission is being facilitated by the Together Coalition founded by Brendan Cox, the husband of the Labour MP Jo Cox who was murdered by a far-right extremist. It was established in the aftermath of a wave of violent disorder that swept across parts of the UK last summer following the Southport stabbings. False information spread on social media about the identity of the attacker, later found to be 18-year-old Axel Rudakubana, was widely seen as playing a role in fuelling the unrest. The disturbances, which saw mosques and hotels housing asylum seekers targeted, were denounced at the time as 'far-right thuggery' by Prime Minister Sir Keir. Although not officially Government-sponsored, the commission is being supported by the Ministry of Housing, Communities and Local Government. A spokesperson for the ministry said: 'We want to put an end to community division, which is why we are driving £15 million into towns and cities across the country through the Community Recovery Fund. 'This will provide vital support to areas affected by recent unrest – such as £5.6 million for Southport to help rebuild the town. 'We are supportive of the work that the Together Coalition is undertaking, and we look forward to following the commission's progress.'
