Latest policy: Starmer announces bus fare cap increase

We are agonizingly close to Rachel Reeves finally delivering this government’s first budget.

You’ll be able to watch and follow live on Sky News platforms, including the Politics Centre.

Here’s what we’ve been waiting for.

No increase in income tax, national insurance or VAT

In its pre-election manifesto, Labor rejected increasing income tax, national insurance and VAT and promised to protect “working people” – but who they defined as a “working person” was called into question.

The Chancellor is also expected to extend the freeze on income tax thresholds for two years until 2030, after the previous Conservative government had frozen them until 2028.

Employers’ national insurance increase

The amount employers pay for national insurance will be increased by up to two percentage points and the money will be used in part to inject money into shortening NHS waiting lists.

A government source told Sky News: “There is universal agreement that the NHS needs more money.

“That means asking businesses for help.”

Housing

The government has confirmed a huge increase in affordable housing.

It says £500m of new funding will be made available under the Affordable Homes Scheme to help build up to 5,000 social homes, bringing total investment in housing supply to £5bn.

1.4 billion pounds for destroyed schools

The Chancellor has promised his budget will include £1.4bn to rebuild demolished schools.

While he said children “should not suffer” because of Britain’s depleted public budget, economists said the fund would generally enable existing plans to continue rather than paying for many new initiatives.

Funding for nurseries, breakfast clubs and childcare

The Treasury has confirmed that £1.8bn will be allocated to expand government-funded childcare services and £15m of additional capital funding will be allocated for school-based nurseries.

The Treasury said the first phase of the scheme would pay for 300 new or expanded nurseries across England.

Ms Reeves also “tripled” investment in free breakfast clubs to £30 million in 2025-26 after announcing at Labor’s party conference in September that it would run a £7 million trial in up to 750 schools from April. He said he would take it off.

VAT exemption for private schools is being abolished

Labor has long made clear its plans to scrap VAT exemption and business rates relief for private schools to fund 6,500 new teachers in state schools.

Details of the government’s assessment of the expected impacts of these policy changes will be published when the budget is announced on 30 October.

This is just two months before the policy goes into effect on January 1, 2025, but military families who send their children to private boarding schools are now expected to make the decision because they could be sent abroad at short notice. be exempt.

Change to £2 bus fare cap

Since 1 January 2023, bus fares have been capped at £2 on more than 4,600 routes in England.

Hundreds of operators outside London have been part of the scheme, costing around £500 million.

However, the cap is currently planned to be increased to £3, which is set to be in place until at least December 31.

Billions of dollars will be allocated to the NHS

The government is expected to pour up to £10 billion into the NHS, largely to help it deal with ballooning waiting lists post-Covid-19, now at a record 7.6 million, and to deliver on the promise of 40,000 more hospital appointments a week.

Health Secretary Wes Streeting said last week he had agreed a plan for NHS funding with the Chancellor, but noted the funds would not actually be available for up to six months.

“Investment in the budget comes in April in the new fiscal year, so this is spring,” he said.

Carer’s Allowance expansion

Ms Reeves is expected to increase the limit people can earn before they qualify for Carer’s Allowance from £151 to £181 a week.

This means tens of thousands of carers who are not currently eligible will receive an extra £81.90 a week under the scheme.