budget

Prime Minister Sir Keir Starmer will give his backing to the chancellor’s Budget in a speech on Monday, and commit the government to going “further and faster” on pro-growth measures.

He will say Chancellor Rachel Reeves’s statement will help to alleviate cost of living pressures, lower inflation and ensure economic stability.

It comes as the Treasury faces questions over whether it was transparent about the state of the public finances in the run-up to the Budget.

The Conservatives claimed Reeves misled the public by being too pessimistic about the economic outlook when official forecasts painted a more upbeat picture.

No 10 has denied that Reeves misled voters and defended her statement.

Despite the Office for Budget Responsibility (OBR) downgrading growth from next year, the prime minister will argue that “economic growth is beating forecasts”, but the government must do more to encourage it.

Protecting investment and public services will further drive financial growth, Sir Keir is expected to say.

The prime minister will also promise to cut “unnecessary red tape” in infrastructure after a report found the UK had become the most expensive place in the world to build nuclear power infrastructure.

He will call for reform in the sector and an urgent correction to “fundamentally misguided environmental regulation”.

Business Secretary Peter Kyle is to be tasked with applying the lessons of the nuclear power report to infrastructure more widely.

The prime minister’s speech on Monday, just five days after the Budget, may suggest some nervousness over how the government’s economic plans have been received by the public, though No 10 say a statement was already planned.

In the days since the Budget, Downing Street has been forced to publicly back Reeves after she was accused by political opponents of repeatedly warning about a downgrade to the UK’s economic productivity forecasts, paving the way for tax hikes.

In a letter to MPs sent on Friday, the chairman of the OBR revealed that he told the chancellor on 17 September that the public finances were in better shape than widely thought.

The Conservatives have accused Reeves of giving an overly pessimistic impression of the public finances as a “smokescreen” to raise taxes.

Tory leader Kemi Badenoch said the letter showed Reeves had “lied to the public” and should be sacked.

Last week, a spokesperson for the Treasury said: “We are not going to get into the OBR’s processes or speculate on how that relates to the internal decision‑making in the build‑up to a Budget, but the chancellor made her choices to cut the cost of living, cut hospital waiting lists and double headroom to cut the cost of our debt.”

Both the chancellor and Badenoch are scheduled to appear on the BBC’s Sunday with Laura Kuenssberg programme.

President Trump’s budget landed with a thud this week on Capitol Hill, where even conservative Republicans pronounced it “dead on arrival” and quailed at its proposed sharp cuts to social welfare programs such as food stamps, Meals on Wheels and Medicaid.

Yet some conservatives found plenty to like in the document. Consider the reaction of the Committee for a Responsible Federal Budget, a Washington think tank heavily funded by hedge fund billionaire Pete Peterson.

“The President deserves credit for setting a fiscal goal and working to meet it,” the CRFB said in its gloss on the budget. Trump “should be commended for putting forward a number of specific and significant spending cuts to help address the debt.”

But one aspect of the budget plan really stuck in CRFB’s craw: It leaves Social Security and Medicare alone. “The President should focus on controlling the rising costs of Social Security and Medicare, two of the nation’s largest and fastest growing programs, which the budget almost completely ignores.”

Followers of CRFB’s history will recognize that caveat as classic Pete Peterson. As we reported in 2012, the 90-year-old billionaire has been on a long crusade to cut Social Security and Medicare benefits. In a 1994 essay in the New York Review of Books, for example, he laid out his view that the only way to eliminate the federal deficit was by “reforming the entire system of entitlements — the fastest-growing part of the federal budget.” Where have we heard that line before?

In the piece, Peterson called Social Security, Medicare and Medicaid a “vast and largely unearned windfall we now give to the more affluent half of all American households.” By “more affluent half,” he meant all households then earning $32,000 or more. That figure would be about $53,520 in today’s dollars, close to the median income in the U.S. (In other words, after accounting for inflation, the standard of living of the median household hasn’t noticeably progressed in 23 years.)

The CRFB describes itself as “an independent source of objective policy analysis,” but in reality it’s joined to Peterson by the pocketbook. From 2012 through March 2016, the Peter G. Peterson Foundation, the billionaire’s chief pipeline of grants to nonprofits, contributed $8 million to the organization. Peterson sits on its board.

That board is replete with members of what the late muckraking journalist Jack Newfield called “the permanent government” — former members of Congress, agency heads, lobbyists, well-heeled academics, etc., etc. Their board service is unpaid. CRFB President Maya MacGuineas, a frequent speaker and editorialist on the deficit, collected about $394,000 in compensation in 2015, the latest year reported.

The CRFB’s viewpoint on Social Security typically echoes Peterson’s. Its emphasis on bringing the program into fiscal balance leans heavily on benefit cuts. Last December it praised a Social Security “permanent save” offered by conservative Rep. Sam Johnson, R-Texas, that achieved its goal entirely through benefit cuts, without a dime of new revenues such as higher payroll taxes on the wealthy.

The CRFB tends to fret about proposals to raise the payroll tax, even though removing the cap on earned income subject to the tax (currently $127,200) would deliver the single biggest improvement to Social Security’s fiscal condition of any proposal on the table. “Solvency can’t be achieved simply by making the rich pay the same as everyone else or means-testing their benefits,” the committee lectured reformers last month.

In general, the committee approaches budget matters almost entirely through the blinkers of deficit reduction, giving very little attention to the street-level consequences of budget and spending policies. That mind set bubbles through its commentary on the Trump budget, many elements of which it labels “sensible and thoughtful reforms… worthy of consideration.”

The committee doesn’t specify which policies it’s referring to. It observes that the program cuts in the budget “fall disproportionately on programs that benefit children, low-income individuals, and promote investment,” but places that caveat in the context of the “almost inevitable consequence of virtually ignoring the rapid growth of Social Security and Medicare.” The committee does acknowledge, implicitly, that the budget’s $72-billion cut in disability benefits is a Social Security cut — it specifies that it’s Social Security’s Old-Age and Survivors’ Insurance program that remains “largely untouched.”

The CRFB, to its credit, doesn’t give the Trump budget a free pass on its well-documented mathematical mendacity. Like other commentators, it labels the budget’s projection of annual growth exceeding 3% in the economy “rosy,” “extremely optimistic,” even “phony.” Responsible economic analysts place the likely annual growth rate closer to 1.8% to 1.9%.

The committee concludes, “tough choices, not wishful thinking, are needed to fix the debt.” As is typical of the analyses of this billionaire’s pet think tanks, the question it leaves unanswered is “tough for whom?” The inescapable implication is: tough on the beneficiaries of Social Security, Medicare and Medicaid. If those choices are made, the board members and officers of the Committee for a Responsible Federal Budget will do just fine.

Keep up to date with Michael Hiltzik. Follow @hiltzikm on Twitter, see his Facebook page, or email [email protected].

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BRITS will soon feel the squeeze after the announcement of the Budget.

Yesterday Rachel Reeves announced plans for multiple price hikes in the UK from a rise in tax on alcohol and cigarettes to the rising cost of Air Passenger Duty.

The Chancellor, on November 26, unveiled a raft of tax rises including that on booze.

It will see some fan-favourite tipples face a rise in price at the supermarket from a four pack of lager to gin and whiskey – and there are fears this will impact pubs too.

The cost of cigarettes has risen from the average price (for a 20 pack) around £16.78 up to £17.74.

And in 2027, the government will increase all rates of Air Passenger Duty (APD) in line with the rate of inflation – which will make going abroad more expensive.

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So if you quite rightly are looking for an affordable break where alcohol and a box of cigarettes is dirt cheap – not to mention getting out of the country, then here are some options for you.

Bulgaria

Under four hours from the UK is Bulgaria known for its sunny beach resorts with cheap booze and all-inclusive hotels

One unbeatable place for that is Sunny Beach on the Black Sea coast which is well-known for being cheap and cheerful.

On the Beach has offers for a 7-night stay from June 2, 2026, at Sunny Day Club for just £265pp including flights from Manchester on a bed and breakfast basis.

Eating out won’t break the bank if you head away from the main streets – a mid-range meal for two can cost as little as £10 each.

And if you’re a smoker, then Bulgaria is a great place to buy cigarettes – and again, the cheapest.

The retail price for a pack of 20 cigarettes in Bulgaria according to Statista is €3.69 (£3.23).

If you’d prefer a break right now, then check out Bansko which is two hours from the capital of Sofia and is one of the cheapest places in Europe for a pint.

Experts at hoppa recently analysed dozens of European locations to find the most budget-friendly depending on factors like cost of a hotel and the cost of beer.

Here you can pick up a pint for as little as 90p – and a stay in a 3-star hotel which averages out at £57.

If you’re looking for a last-minute winter ski holiday, it’s also one of the most affordable options.

Bansko came third cheapest in the Post Office Travel Money Ski Report 2025.

Sun Travel found a five-night stay for two people from £209pp, which includes flights from London Stansted with LoveHolidays.

Starting on December 7, 2025, you can stay in the three-star Apart Hotel Dream at the foot of the Pirin Mountain, and it’s just 5 minutes from the cable lift.

There’s an indoor pool as well as a restaurant, coffee shop and a cosy lobby bar set by a log fire.

Poland

Second on the list for the cheapest place to buy cigarettes is Poland where a pack of 20 costs on average €4.88 (£4.28).

If you’re looking to get away just for the weekend, then head to Poznan in Poland.

The fifth largest city in Poland, is great for autumn and winter weekend breaks especially if you are on a budget

Beer is cheap, costing around £2.87 a pint for a local brew while coffee is less than £2.80.

Of course you can always make a week out of it – LoveHolidays has an offer for a seven-night stay at Campanile from December 5, 2025, from £199pp including flights from Bristol.

Over the week, that works out at just £28.43 per person per day.

Latvia

While it might not be a place that comes to your mind when scrolling through holidays, Latvia has some crackingly cheap deals.

If you fancy a break in the New Year, then you can go with LoveHolidays to Riga from London Stansted from £22.71pppn – including flights.

Stay in The Dodo in Riga for seven nights from December 6; it’s a budget-friendly hotel but still has free Wi-Fi, comfy beds, private bathrooms, TV, bars, and breakfast options.

Not to mention when you get there it won’t cost you much either – Riga was named Europe’s best value city for a short break by  Post Office Travel Money City Costs Barometer.

On average, a cup of coffee in Riga costs £2.80 and beer costs £3.50, although you can buy beer for as little as €1 (88p) from supermarkets.

Return airport or bus transfers were relatively cheap, costing £3.50 on average.

Turkey

For the sun-seekers amongst you then of course, Turkey is an easy win.

From Antalya to Istanbul, there are plenty of options – Marmaris is ranked as the cheapest coastal resort, offering low prices for a basket of tourist goods

And if you want to plan a getaway this December, you can still enjoy highs of 17C.

With LastMinute.com, you can enjoy five-night stay at the Hotel Unver in Marmaris from £127pp including flights from London Stansted.

The hotel has a swimming pool, free Wi-Fi and is just a few streets away from the beach.

Mains at a restaurant in Marmaris cost around 400 Turkish Lira (TL) in
£7.12 – and a cup of Turkish coffee in Marmaris can cost anywhere from  Turkish Lira (12p).

And even if you fancy a hot summer in Turkey – you can still get great deals now like at the Belpoint Beach Hotel in Antalya.

With LoveHolidays there’s a deal for a 7-night all-inclusive break from £239pp including flights from London Stansted on June 11, 2026.

The three-star hotel has an outdoor swimming pool with an aquapark, restaurants and bars.

Spain

You can always trust Spain to deliver and to make matters even better you can be there in two hours.

The average price of a pack of 20 cigarettes is €5.99 (£5.24), and as for alcohol a pint of domestic beer can be as little as €3 (£2.63).

Costa del Sol, region in the south of Spain, is regarded as one of the cheapest places for a holiday.

Another popular destination is the city of Malaga – with LoveHolidays you can book a stay at Easyhotel Malaga City Centre from £199pp.

If you want a break in January, it’s a great choice for sightseeing, and enjoying the cheap meals and drinks Spain has to offer.

You can fly there from London Luton on January 7, 2026 and stay for seven nights.

Or if you fancy somewhere coastal and some sun, you can stay at the cosy Marissal by Dorobe Hotels with LoveHolidays – a two-star boutique hotel with just 23 rooms – and it’s two minutes from the beach.

A seven-night stay from June 12, 2026 will set you back just £259pp including direct flights to Malaga from London Gatwick.

For more budget spots, check out these winter sun destinations from your nearest airport – with 7-night holidays to Turkey, Tunisia and Spain.

And hear from one man who travels to Spain every month – 12 stunning and cheap destinations Spaniards love that Brits have never heard of.

Here’s the destination where you don’t have to pay tax at duty free…

Gibraltar, the Mediterranean destination south of Spain, is the perfect place for Brits to stock up on alcohol, bag a cheap perfume and a designer handbag.

The duty free is especially low because of Gibraltar’s tax policies, specifically the absence of VAT and excise taxes.

Sun writer Adele Cooke is half Gibraltarian and reveals she often sees hordes of tourists descend on the airport to get their goods.

She told us: “Often you’ll see people on cruise ships all get off to stock up on the goods. My dad likes to stock up his alcohol trolley while we’re there too.”

When it comes to alcohol, Gibraltar has some great offers at duty-free – for example, you can pick up a litre of The Famous Grouse whisky for as little as £8.15.

A litre of Bacardi starts at £10.75 (£20 in the UK) and Captain Morgan rum at £11 (also £20 in the UK).

One litre of Jägermeister costs just £12.50 (£25 in the UK), the duty-free shop even sells one litre bottles of Glen’s Vodka for £3.40 (£17 in the UK).

THE price of holiday park breaks could almost DOUBLE following the new tourist tax announced in the budget.

Yesterday, Rachel Reeves announced a wave of new rules including the rise of Air Passenger Duty and new tourist tax regulations.

And industry sources have said the shocking tourist tax rise – set to be £2 extra a night – would be ‘scary’  and put prices up for thousands of families.

A senior holiday park executive said: “This tax will destroy holiday dreams, putting a short break at the seaside out of reach for many. 

“Have they put Basil Fawlty in charge of boosting tourism?”

North Yorkshire’s local authorities said they are in favour of introducing the tax – hitting the thousands who holiday in the popular resorts of Scarborough, Whitby and Filey.

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West Yorkshire councils have also said they would impose the charge – putting holiday parks in the Dales in the firing line.

And families taking the cheapest holiday park breaks face the biggest increases.

Right now, a family of four can enjoy a four-night break at a holiday park for around £49 in low season, made up of a £40.80 charge for the break and VAT at 20 per cent.

But the new tax is imposed on four people at the suggested rate of £2 per night that will add £32 to the cost of the holiday – bringing the total up to £81.

That’s a tax rate of 98.5 per cent – an increase of 65 per cent on what holidaymakers currently pay. 

If a family of six have to pay the £2 tax on the same four-night break it would bring the cost of the tax to £48 – and increase the price of the holiday to £97.

That works out as a tax rate of 138 per cent, an increase of 98 per cent over the current costs.

For a family of five paying £100 – £83.33 cost plus 20 per cent VAT – for a four night break, the tax would add £40 to the bill, an increase of 40 per cent on the price of a holiday and a total tax rate of 69 per cent.

For a seven night stay for a family of four, prices for next year start at popular holiday parks at just £79 – £65.83 cost plus 20 per cent VAT.

With the tourist tax, a family of four would have to pay £56, bringing the total cost of the holiday to £135, an increase of 71 per cent on current costs.

Dermot King, COO of Unity Holidays which owns Skirlington Coast in East Yorkshire, said: “Any tax such as this is clearly regressive as it a tax on hard-working people who choose to spend their money taking holidays in this country.

And the far-reaching impact of the tax will also hit those enjoying cottage breaks.

Sykes Holiday Cottages – one of the UK’s biggest self-catering companies – fear the tax increase could devastate staycations.

Ben Spier, Head of Policy and Regulation at Sykes Holiday Cottages, said: “This levy won’t just be felt by families already managing rising household costs.

“It threatens to deter people from choosing holidays in the UK which would be a serious blow for the many communities that depend heavily on spending from the overnight visitors who will face this levy.  

“The UK’s tourism and hospitality businesses are already among the most heavily taxed in Europe, facing everything from steep business rates and corporation tax to some of the highest VAT levels in the sector.

“Adding a new tourism levy risks putting more pressure, and more admin, on the many small businesses – from holiday let owners to local pubs, shops and attractions – who rely on a thriving visitor economy.

“And all this, for a relatively small extra return from visitors who still choose to come.

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“Rather than adding another cost for visitors, disincentivizing them when the aim is to attract more of them, the focus should be on ensuring that the substantial tax income already generated is properly directed to the local communities where it’s generated.”

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British Chancellor Rachel Reeves announced the latest budget on Wednesday, setting out sweeping tax hikes which are projected to raise 26.1 billion pounds ($34.4bn) for the public purse by 2030.

The budget had been highly anticipated as a “make or break” moment for the UK’s governing Labour party, which has grappled with poor polling over the past year. Earlier this year, an opinion poll by YouGov found that if an election were to be held now, the far-right Reform UK Party, which takes a hard line on immigration, would come to power.

In an embarrassing turn, the country’s Office for Budget Responsibility (OBR) published its economic outlook as a result of the budget on its website two hours before the announcement – something it never normally does until afterwards. Reeves called the blunder “deeply disappointing” and a “serious error”.

Reeves acknowledged that the tax rises – to be paid in large part by freezing existing income tax thresholds, meaning more people will pay higher tax as their incomes rise with inflation – would adversely affect working people. This breaks a key pledge Labour made in its manifesto before last year’s general election.

“We are asking everyone to make a contribution,” Reeves told parliament.

However, she said the tax rises would help pay for nearly 22 billion pounds ($28.9bn) in fiscal headroom within five years. Reeves also said government borrowing would fall each year. Borrowing in 2025-26 is expected to be 138.3bn pounds ($183bn), falling to 112.1 billion pounds ($148.3bn) the year after and to 67.2 billion pounds ($88.9bn) by 2031.

While the UK’s budget deficit is forecast at 28.8 billion pounds for the financial year 2026/2027, Reeves said this would move to surplus in 2028 and forecast a 24.6 billion pound ($32.55) surplus for 2030/2031.

That will pay for welfare spending and means there “will be no return to austerity measures”, Reeves said.

“I said there would be no return to austerity, and I meant it. This budget will maintain our investment in our economy and our National Health Service. I said I would cut the cost of living, and I meant it. This budget will bring down inflation and provide immediate relief for families. I said that I would cut debt and borrowing, and I meant it,” Reeves said.

Here are five key takeaways from this budget.

1. Labour broke its promise not to raise taxes for working people

Reeves raised taxes by about 40 billion pounds ($52.6bn) in last year’s budget – the biggest hike in revenue-raising measures in decades – in what she said would be a one-off needed to put the government’s finances on an even keel.

This time around, while she did not increase income tax or National Insurance Contributions for working people, she did extend a freeze on the income thresholds at which tax must be paid.

This means that more people will be dragged into higher tax brackets as their income rises with inflation. The move will pull 780,000 more people into paying basic-rate income tax for the first time by the 2029-2030 fiscal year along with 920,000 more higher-rate taxpayers and 4,000 additional-rate payers.

“This ‘fiscal drag’ means that hundreds of thousands will start paying income tax for the first time, and all existing taxpayers will face higher liabilities,” Irem Guceri, associate professor of economics and public policy at Oxford University’s Blavatnik School of Government, said.

The previous Conservative government had already frozen these thresholds until 2028. Reeves, who was highly critical of that action at the time – saying it hurt working people – now plans to extend that to 2031.

“I know that maintaining these thresholds is a decision that will affect working people,” she said. “I said that last year, and I won’t pretend otherwise now.”

“I can confirm that I will not be increasing National Insurance, the basic, higher or additional rates of income tax or VAT [value added tax]”, the chancellor added.

Reeves said she will also target wealthier people via a “mansion tax” on those who own property worth more than 2 million pounds ($2.65m) and is reducing the amount of tax relief some higher earners can obtain on pension contributions. She also announced a 2 percentage point increase in tax rates on rental income, dividends and capital gains.

Nigel Green, chief executive of the financial advice firm DeVere, said these moves will have wider “behavioural impacts”. “People make long-term decisions about where to work, where to build wealth and where to retire,” he said.

“When rules around pensions tighten sharply, it undermines confidence in the broader system. Wealth moves where governments show stability over decades, not sudden extractions,” he added.

Following the announcement, Kemi Badenoch, leader of the opposition Conservative party, described Reeves decision to raise taxes, despite promising not to do so again, as “a total humiliation”.

2. Labour will spend money on welfare

One of the highly anticipated announcements of the budget was the scrapping of the two-child benefit cap from April 2026. Currently, parents can only claim special tax credits worth about 3,455 pounds ($4,571) per child for their first two children. The cap was imposed by the previous Conservative government. Reeves said this would lift thousands of children out of poverty.

“The removal of the two-child limit in child benefit is likely to provide significant support to families currently living in poverty,” Guceri said.

Experts said the move would appeal strongly to Labour Party backbenchers. “The two-child benefit cap is widely despised among rebellious Labour MPs as a major contributor to child poverty,” said Colm Murphy, senior lecturer in British politics at Queen Mary University, London. “Repeal was critical for Reeves to have any chance of political survival.”

Gregory Thwaites, research director at Resolution Foundation (RF), a British think tank that focuses on improving living standards, also said the move was a positive step towards reducing child poverty in the UK.

“That’s something that we’ve been campaigning for RF for some time, and we’re very pleased to see that. And then there are some welcome reforms to the tax system, as well. So, for example, charging the people who own very expensive properties a bit more money that will, that’s very welcome, as well,” Thwaites told Al Jazeera.

“Ultimately, budgetary responsibility should not just be seen in terms of fiscal balance but also measures of broader wellbeing,” said professor Jasper Kenter, professorial research fellow at Aberystwyth Business School. “Lifting the two-child benefit cap is important in this regard.”

GMB workers’ union General Secretary Gary Smith welcomed Reeves’s decision to tax wealth and to increase welfare spending, calling this budget the “final nail in the coffin for the Conservatives’ failed austerity project”.

“Key public services, essential national infrastructure, and communities across the UK suffered deep wounds because the Tories made the wrong economic choices – we must never go back to those dark days,” a statement from Smith read.

“The challenge for Labour is to grip the task of rebuilding our economy and country, lock in essential investment to create growth, and start bringing a bit of hope to people,” the statement added.

3. UK’s hated ‘rape clause’ will be scrapped

Reeves said she would scrap the so-called “rape clause”, which exempts women from the two-child benefit cap policy if they can prove their child was conceived non-consensually.

She described the exemption requirement as “vile, grotesque, dehumanising, cruel”.

“I’m proud to be Britain’s first female chancellor,” Reeves told parliament. “I take the responsibilities that come with that seriously. I will not tolerate the grotesque indignity to women of the rape clause any longer.”

4. Slower-than-expected economic growth forecast

In response to the budget, the OBR upgraded its forecast for economic growth for this year from 1 percent to 1.5 percent.

However, it downgraded economic growth for the following four years. GDP growth in 2026 is now expected to be 1.4 percent (down from 1.9 percent), while the OBR has downgraded its forecast for each of 2027, 2028 and 2029 to 1.5 percent (down from approximately 1.8 percent).

Much of the downgrade stems from lower expectations for productivity growth. Reeves insisted the sluggish outlook was the legacy of the previous Conservative government, however.

Reeves also announced a freeze on fuel duty and rail fares, as well as support with energy bills, causing the OBR to revise inflation down by 0.4 percentage points for next year, Guceri said. However, the OBR revised up its forecast for this year to 3.5 percent, “reflecting stronger real wage growth and persistent food price pressures”, she added.

5. The pound and financial markets responded positively

Sterling rose by 0.3 percent against the dollar to $1.3213 just in advance of the budget announcement, before settling back to roughly where it started by the end of it.

London’s blue-chip FTSE index and the FTSE 250 index rose by about 0.6 percent each in the wake of the budget.

“So far, markets showed little reaction to the Budget – something the Chancellor will view as a success,” Guceri said.

He added: “The Chancellor has listened to our concerns and rightly recognised that racing is a unique national asset – culturally, socially and economically – and we welcome this support.

“We recognise that the increase in general taxation on the betting industry may have trickle-down effects on racing. We will work with our partners in the betting industry to understand the implications of this.”

Details of the government’s plans were mistakenly released early by the Office for Budget Responsibility before Reeves’ statement in the House of Commons.

The measures are expected to generate £1.1bn from the gambling industry by 2031 and shares in major companies fell immediately after the announcement, although some recovered later.

Before the Budget, bookmakers warned of betting shop closures if Reeves hiked taxes on gambling firms.

Each shop provides thousands of pounds in funding to racing through the levy and media rights payments.

Racing’s bosses say if bookmakers needed to cut costs, this could impact the sport through reduced sponsorship and promotion, worse odds and reduced bonuses for customers, and potentially turn people towards the black market.

An additional £26m of funding will be provided by the government to the Gambling Commission over the next three years to tackle the illicit market.

The Los Angeles Fire Department is requesting a budget of more than $1 billion for the coming year, arguing that the additional funding is necessary to be prepared for wildfires like the one that devastated Pacific Palisades in January.

The request, which represents a more than 15% increase over this year’s budget, includes money for 179 new firefighting recruits and a second crew dedicated to fighting wildfires, as well as helitanker services to battle fires from the air.

In the immediate aftermath of the Palisades fire, which killed 12 people and destroyed thousands of homes, top LAFD officials blamed a lack of resources and extraordinarily high winds for their failures in combating the flames.

United Firefighters of Los Angeles City Local 112, the union that represents the city’s firefighters, has long argued that the department is severely underfunded and is pushing for a half-cent sales tax that, if approved by voters, would generate hundreds of millions of dollars annually.

Fire Chief Jaime Moore, who was appointed to his post earlier this month, wrote in a memo to the Board of Fire Commissioners last Friday that “the proposed budget will reinforce and accelerate operational enhancements implemented following the devastating Palisades wind-driven vegetation fire in January 2025.”

Moore’s request is the first step in a lengthy process to hammer out a city budget that requires approval by the City Council and the mayor. This year, the city had to close a nearly $1-billion shortfall caused largely by rising personnel costs, soaring legal payouts and a slowdown in the local economy.

City department heads often request amounts far higher than they eventually receive. With the city still in a budget crunch, the outlook for the LAFD’s request is unclear.

“The budget process is in its early stages. Reforms must continue to be implemented at the department and Mayor Bass looks forward to working with Chief Moore to strengthen the city’s emergency preparedness,” said Clara Karger, a spokesperson for Mayor Karen Bass.

Genethia Hudley Hayes, who heads the civilian Board of Fire Commissioners, said Tuesday that she had not yet seen the request but that she generally supports a 15% increase in the LAFD budget.

“We need it,” she said. “The smart thing would be to let the public know what you are going to do with that money.”

In the days leading up to Jan. 7, LAFD officials decided not to order firefighters to remain on duty for a second shift — which would have required paying them overtime — and staffed just a few of the more than 40 engines available to aid in battling wildfires, despite warnings of life-threatening winds, a Times investigation found.

Then-Fire Chief Kristin Crowley said that commanders had to be strategic with limited resources while continuing to handle regular 911 calls.

An LAFD after-action report released last month cited “financial constraints” as a factor in pre-deployment decisions.

The Times also found that an LAFD battalion chief ordered firefighters to leave the site of the Jan. 1 Lachman fire, despite firefighters’ complaints that the ground was still smoldering. That fire later reignited into the Palisades fire.

Moore’s budget memo tied many of his requests to the Palisades fire.

The second wildland hand crew, which would include 32 positions for $2 million, would supplement a hand crew formed this year, after the Palisades fire. The crew’s 26 recruits, who are trained in wildfire fighting and management, establish fire lines to stop flames from spreading. Throughout the year, they do brush clearance around the city.

The helitanker lease, costing slightly less than $1 million, would support aerial attacks of flames that are difficult for crews on the ground to reach.

Moore’s budget request includes the reinstatement of the LAFD’s emergency incident technicians, who help coordinate responses to fires — positions that were cut in the last budget cycle. The after-action report described the LAFD’s disorganized response to the Palisades fire, citing major issues with staffing and communications.

In the fire’s aftermath, the LAFD’s budget was a subject of public debate, with some saying that Bass had reduced it. The 2024-25 budget actually increased slightly after firefighters received raises and the city invested in new firetrucks and other purchases. The budget increased again in 2025-2026.

Bass said she has committed additional resources to the Fire Department in each year she has been mayor.

The half-cent sales tax proposed by the firefighters union would go before city voters as a ballot measure next November.

By 2050, the sales tax would raise at least $9.8 billion, funding at least 30 new fire stations and new fire trucks, as well as adding 1,400 Fire Department employees, according Doug Coates, the acting president of UFLAC, and Councilmember Traci Park, whose district includes Pacific Palisades.

IF you’re looking for a winter getaway that really won’t break the bank, then look no further than this Bulgarian town.

The experts at hoppa analysed dozens of European locations to find the most budget-friendly depending on factors like cost of a hotel and possibly what matters most to Brits – the average price of a pint.

Coming in second place, but having the cheapest price of pints of all of them was Bansko in Bulgaria.

The town is two hours away from the capital of Sofia and is known for its ski resorts and a beautiful mountain landscape.

In the pretty Bulgarian destination, hoppa found the average cost of a pint to be just 90p.

Some of the highest rated bars include Pirin 75 which has been praised for its cocktails, and the Happy End Bar which one visitor described as a “cracking apres ski bar”.

STREET SMARTS

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All the best Xmas days out under £10 including FREE ice skating & Santa’s grotto

Other affordable aspects include a stay in a 3-star hotel which averages out at £57.

Sun Travel found a five-night stay between December 15-20 at the Hotel Tanne in Bansko works out at just £47.60 per person per night.

The four-star hotel is found at the foot of the Pirin Mountains and is perfect for skiers as it’s 300 metres from the gondola lift.

Rooms have mountain views and guests can relax at the on-site spa centre which has a hot mineral water pool, salt room, herb sauna, an outdoor Japanese bath and a pool with hydro beds and water cannons.

There’s also a gym, café, Viennese lounge and piano bar.

If skiing is the type of holiday you’re after, then Bansko is a great option as it came in third in the Post Office Travel Money Ski Report 2025.

It’s even become cheaper and moved from sixth to third place after a 2.8 per cent drop in costs.

In the study, the average cost of a six-day ski pass and ski/boot hire for one person plus ski school (five-six half days), a range of drinks and lunch on the slopes cost £572.14 in Bansko.

Whereas in the likes of Cervinia, La Thuile and Sestriere in Italy all costs came in at over £700.

The most expensive was in Zermatt in Switzerland which came in at £1,345.76pp.

Away from the slopes, other popular activities in Bansko include trekking up Vihren, exploring Pirin Street, visiting the Neofit Rilski Museum and Velyanova House.

The one downside to Bansko is that it doesn’t have an airport.

However, the closest one is in Sofia, the capital of Bulgaria where flights in December are as little as £16.

Certain places like Hotel Tanne will supply airport shuttles with journeys taking around two hours.

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For more European breaks on a budget, check out these five holidays that are cheaper than a UK train fare – with £2 prosecco and stunning beaches.

And find out our travel team’s favourite affordable Europe holidays including hidden islands, quiet beach towns and cheap cities.

Here are the best budget getaways in Europe…

Here’s the full list of the cheapest breaks in Europe from hoppa

1. Prague, Czech Republic
2. Bansko, Bulgaria
3. Sofia, Bulgaria
4. Budapest, Hungary
5. Tallinn, Estonia
6. Krakow, Poland
7. Tirana, Albania
8. Belgrade, Serbia
9. Bratislava, Slovakia
10. Vilnius, Lithuania

A discussion about the budget was rapidly descending into an argument when Susanna Reid was forced to interrupt Good Morning Britain to reveal some devastating news

Good Morning Britain‘s Susanna Reid was forced to interrupt a heated discussion about the budget as heartbreaking news came in. The ITV morning show host said the news brought back “awful memories”.

Susanna and the shows’ guests were talking about the “smorgasbord” of tax rises expected in the budget and the presenter seemed to be getting irate about the vague language being used to discuss it, frustratingly calling it all “semantics”.

But she soon had to stop the discussion to reveal some breaking news. “We’ve got some news coming out of Hong Kong,” she started. “Where a fire is engulfing a residential building.”

READ MORE: Good Morning Britain live broadcast halted as Susanna Reid shares ‘awful’ newsREAD MORE: Good Morning Britain’s Susanna Reid rushes to comfort grieving guest live on air

As live footage came in of the building burning, Susanna found the fire difficult to talk about. “Wow, goodness me, these are live pictures. They bring back awful memories don’t they?”

She couldn’t help drawing parallels between the Hong Kong fire, where several people are trapped inside, and the tragedy at Grenfell Tower in 2017.

The fire at Grenfell resulted in 72 deaths and a public inquiry was started to establish what happened and how such a disaster can be prevented in the future.

The inquiry, which only ended in February this year, found that there was a chain of failures across government and the private sector led to Grenfell Tower becoming a death trap in the event of a fire, as the cladding and insulation were failed fire safety tests.

Susanna described “plumes of grey smoke” coming out of the Hong Kong building and said local fire departments were “battling” to put out the fire and save the people inside.

Kevin Maguire, who was on the show to talk about the budget, said: “You’ve just got to hope that there are lots of exits and that the outside windows have been fitted properly so unlike Grenfell, the fire can’t go outside.”

After the Grenfell fire, it was found that the fire was able to move more easily between the interior and exterior of the building as the windows’ surrounds were made of materials that were less resistant to the heat. The windows themselves were an insufficient size when they were refurbished, necessitating larger surrounds.

Good Morning Britain soon turned back to talk about the budget. Andrew Pierce said he thought Rachel Reeves would be sacked after the budget.

For more of the latest showbiz news and gossip, follow Mirror Celebs on TikTok, Snapchat, Instagram, Twitter, Facebook, YouTube and Threads.

SACRAMENTO — The final pieces of a multi-bill legislative package needed to implement a $52.1-billion state budget stalled in the state Senate on Monday as lawmakers made last-minute efforts to change or derail several measures.

The major issues still on the table include a proposed suspension of the renters tax credit and legislation to allow local governments to implement cheaper retirement plans for their workers.

The Senate shut down late Monday afternoon without taking major action. Senate President Pro Tem David A. Roberti (D-Van Nuys) said members would return at noon today, and “we will go until all business is completed, exhausted or until all hope is dead.”

In one late maneuver that was outside the framework of the bipartisan budget agreement, a proposal was emerging to give local governments the proceeds of a new statewide tax on tobacco while stripping them of much of their authority to regulate smoking.

Gov. Pete Wilson was awaiting passage of the package to which he had agreed last week with Democratic and Republican leaders of the Assembly and Senate. The new fiscal year begins Thursday.

“The governor will sign the budget as soon as he has the entire package on his desk,” said Dan Schnur, Wilson’s chief spokesman. “Every piece of the budget package is critical. You take out one piece and the package doesn’t fit together anymore.”

There was disagreement, however, over just what constituted the agreed-upon package.

Wilson Administration officials have said all five members of the leadership group agreed to suspend the renters tax credit for two years. The Assembly passed a bill to do that last week.

But the legislation has hit a snag in the Senate, where Roberti insists that the deal included an agreement to place a measure on the ballot next year that, if approved by the voters, would embed the renters credit in the state Constitution. Such a move would make it impossible for the Legislature to tamper with it again.

Roberti and Wilson appeared to be on the verge of a compromise late Monday, although it was not clear if there was sufficient support in the Legislature. The new deal would put the issue to the voters, as Roberti wants, but would reinstate the $60 credit only for tenants who have a state tax obligation. The credit now goes–in the form of a refund–even to renters who pay no taxes.

Senate Democrats also appeared to be dragging their feet on the local government retirement issue. That bill, passed by the Assembly, would allow local governments to implement pension options for new employees that would save the governments money over time.

In holding up the bill, which is opposed by organized labor, Democrats appeared to be gambling that Wilson would look the other way because the measure produces no immediate savings to any level of government. But Schnur said the governor would not give up any piece of the package, no matter how minor.

“Even if the specific legislation doesn’t have direct fiscal impact, it is still the part of an overall agreement,” Schnur said. “We want to get this signed before midnight Wednesday. But we need the whole package in place before he can sign it.”

Schnur said the retirement bill, and another measure pending to allow counties to reduce general assistance welfare payments by as much as 27%, helped provide the rationale for the governor’s proposed shift of $2.6 billion in property tax revenue from local government to schools.

The so-called mandate relief, he said, was intended to give counties more control of their shrinking budgets.

The tobacco tax proposal floated Monday, although not part of the package, would address the same issue.

Local government reportedly could realize about $300 million annually through the 15-cent per pack tax. But in return, they would have to agree to strict limits on their ability to control smoking, perhaps leading to a state-imposed repeal of anti-smoking ordinances in place.

Several sources said Monday that the proposal had the tacit support of the tobacco industry and of Los Angeles County, which would stand to gain several millions dollars.

Sen. Charles M. Calderon (D-Whittier) confirmed that he was pushing the tobacco tax legislation. He said it made sense to restrict local government’s regulatory powers at the same time–a goal long sought by the tobacco industry.

“If we’re going to dedicate a revenue source, we have to make sure that the locals cannot circumvent or cut down the revenue source by continuing to impact the sales of cigarettes,” Calderon said.

But anti-smoking activists were out to kill the plan before it could even become an official proposal.

“Everybody wants to do something for (Los Angeles) County, but not under these conditions,” said Sen. Diane Watson (D-Los Angeles). “This is the most dishonest, diabolical scheme. It’s the worst kind of politics.”

Times staff writer Dan Morain contributed to this report.

State Budget Watch

Less than three days before the end of the fiscal year, these were the key developments in Sacramento:

THE PROBLEM: The state will end the year with a $2.7-billion deficit and faces a $9-billion gap between anticipated tax revenues and the amount needed to pay off the deficit and provide all state services at the current levels for another 12 months.

THE LEGISLATURE: Final legislative approval of the last handful of bills to complete the 1993-94 state budget was making no progress by late afternoon. The Senate met in the morning but recessed without voting on four budget bills, the stickiest of which would suspend the renters tax credit for two years.

GOV. PETE WILSON: Wilson was holding fast to his vow not to sign a new budget until all companion measures are passed by the Legislature.

KEY DEVELOPMENTS: Senate President Pro Tem David A. Roberti (D-Van Nuys) was one of those holding up his approval of legislation reducing the renters tax credit. He was seeking as a condition assurances in the form of a proposed constitutional amendment, to be considered by voters, that the credit would be protected and fully funded in future years.

Rachel Reeves has urged Labour MPs to unite behind her Budget as she vowed to stay on as chancellor in the years ahead.

Speaking to a meeting of Labour’s Parliamentary Party on Monday evening, Reeves warned MPs they must “stick together” if they wanted to win the next election.

The Budget, which is expected to contain tax rises, will be delivered on Wednesday following weeks of speculation.

Reeves said she thought Labour MPs would like 90-95% of her spending plan but warned they would have to accept the tougher measures as well saying: “It’s a package, not a pick-and-mix. You can’t say you like the cola bottles but you don’t like the fruit salad.”

“It all comes together and hangs together as a whole.”

She said her three priorities would be: “Cutting the cost of living, cutting NHS waiting lists and cutting the cost of debt.”

Following the meeting, one Labour MP said the chancellor had been “strong and honest” but another said her pleas for unity had sounded “desperate”.

In the year since the last Budget, Labour MPs have become increasingly critical of Reeves’ judgement.

The Chancellor has been forced to make U-turns on some policies, including cutting the winter fuel payment.

There had also been concerns in the party about suggestions she would use this Budget to raise income tax rates, a move that would have broken the party’s election manifesto promise.

The government now appears to have stepped back from that proposal.

Instead, it could consider extending the freeze on the levels at which people start to pay income tax, meaning more people are drawn into paying more tax on their wages and pensions over time.

The chancellor could also look at a range of smaller measures to raise money including new taxes on high-value homes in England, electric vehicles and gaming companies.

She needs to find more money in order to meet her own rules aimed at reducing debt and borrowing.

Reeves has also suggested she will scrap the two-child benefit cap, which limits the benefits parents can claim for their third child or subsequent children born after 6 April 2017.

Conservative shadow chancellor Mel Stride said he worried the Budget would see “tax on hard- pressed hard-working people being transferred into the benefits system”.

Speaking at a conference on Monday, head of the Confederation of British Industry Rain Newton-Smith urged Reeves not to inflict “death by a thousand taxes” on businesses.

She said the chancellor should have “the courage to take two tough decisions rather than 20 easier ones”.

Liberal Democrat Treasury spokesperson Daisy Cooper accused the government of “rank hypocrisy” over its potential tax plans.

“Rachel Reeves once accused the Conservatives of ‘picking the pockets’ of working people by freezing tax thresholds – now Labour plans to do exactly the same,” she said.

Reuters

PA Media

Budget ingredients

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Restoring faith

Transport Secretary Heidi Alexander has denied leaks ahead of the Budget have damaged the economy, following criticism the speculation has “caused paralysis among businesses and consumers”.

Recent months have been dominated by media reports about which taxes could increase, with multiple potential measures floated by the government.

Former Bank of England chief economist Andy Haldane told the BBC’s Sunday with Laura Kuenssberg programme this was “the single biggest reason why [economic] growth has flatlined”.

In response, Alexander said there was always speculation in the run-up to Budgets but the chancellor had been clear about her priorities.

Chancellor Rachel Reeves is widely expected to increase taxes in her Budget on Wednesday to help fill a multibillion-pound gap in her spending plans.

Ministers had given strong indications the government was planning to increase income tax rates.

Anonymous briefings to the media from government sources had also suggested Reeves was considering the move – which would have been a clear breach of Labour’s election promise not to raise “the basic, higher or additional rates of income tax”.

However, last week government sources said Reeves had decided against this after better-than-expected economic forecasts.

Governments sometimes choose to leak aspects of their Budget plans to the media, either to test public reaction or prepare the ground for measures so they do not come as a shock to financial markets or voters.

Haldane branded the months of speculation about potential Budget measures a “fiscal fandango”.

“That’s been costly for the economy,” he told the programme.

“It’s caused paralysis among businesses and consumers.”

He said the Budget process was “too lengthy, too leaky, with real costs”.

Haldane acknowledged this “pantomime” had also happened under previous governments, adding that the “budgetary process has been degraded over many years”.

Challenged over whether the leaks had damaged the economy, Alexander told the programme: “People always speculate in advance of a Budget and we have always said ‘wait until the Budget’.”

Defending the government’s approach, she said the Budget process had taken place “on shifting sands”, with a downgrade to productivity forecasts and “a very challenging global economic environment”.

The Conservatives have called for an investigation into pre-Budget leaks, saying they have “real world consequences including for financial markets”.

In a letter to the Treasury’s most senior civil servant, shadow chancellor Mel Stride said: “Either ministers have approved the widespread briefing of confidential information surrounding the Budget, or serious unauthorised leaks have occurred within your department.”

The chancellor is expected to set out a range of smaller tax rises in her Budget, after backing away from increasing income tax rates.

However, the government has not ruled out extending the freeze on income tax thresholds – the level people start paying tax or have to pay higher rates.

The freeze means any pay rise would see people paying more tax, with more people dragged into a higher tax band, or having to pay tax on their income for the first time.

Reeves has also said there will be a focus on cutting the cost-of-living, with the government announcing that rail fares in England will be frozen next year for the first time in decades.

Other priorities set out by the chancellor include reducing NHS waiting lists and the national debt.

Meanwhile, she is also expected to scrap the two-child benefit cap, a limit that means parents can only claim universal credit or tax credits for their first two children.

There has been pressure from Labour MPs to remove the cap, which was introduced under the Conservatives – a move that could cost more than £3bn, according to estimates by the Institute for Fiscal Studies think tank.

While she refused to confirm the cap would be scrapped, Alexander said tackling child poverty was “in the DNA of the Labour Party”.

“One of the defining elements of this government for me is about what we can do to ensure that children’s chances in life aren’t determined by the size of their parents’ bank balance,” she added.

The Conservatives have argued against removing the cap, with Stride telling the BBC it was “a matter of fairness” that parents who are on benefits should have to make the same choices about whether they can afford a bigger family as those who are not.

The shadow chancellor told Kuenssberg: “The big choice at this Budget now is does the chancellor have the backbone to control government spending, particularly in the area of welfare where some of those costs are spiralling out of control, take those tough choices and therefore not have to start putting up taxes again in areas that are going to damage the economy.”

However, Green Party leader Zack Polanski said scrapping the cap would be a “victory” and it was “outrageous that it’s taken the Labour government so long to do it”.

He called for the government to “tax the rich”, rather than hit “people out of work or working people who are working really hard while their wages aren’t going up”.

John McDonnell, the former Labour Shadow Chancellor, said he hoped Reeves would announce a “redistributive Budget”.

“That does mean that the heaviest weight should fall on the broadest shoulders,” he told The Westminster Hour on BBC Radio 4.

“That means tax rises for the wealthiest and for the corporations, and for those who are making massive profits at the moment.”

Asked about divisions within Labour, McDonnell said: “What people want is, they want a sense of direction.”

He said Labour has a “massive majority”.

“We can do what we want in terms of getting stuff through Parliament,” he said.

“Yet we seem to be hindered by a lack of direction and some elements of competence as well.”

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Why is the national debt a concern?

Do younger people lose out on public spending decisions?

Which generations will benefit and lose from the Budget?

SACRAMENTO — California’s budgetary woes are worse than expected, forcing state lawmakers to grapple with a nearly $18 billion shortfall next year, according to a new report from the Legislative Analyst’s Office.

This figure is $5 billion more than previous estimates in June.

Despite improvements in state revenue, the report said mandatory spending requirements under Proposition 98, which sets minimum annual funding for public schools, and Proposition 2, which specifies reserve deposits and debt payments, almost entirely offset any gains, according to the legislative analysis.

It estimated state costs for Medi-Cal and CalFresh, which provide healthcare and food assistance to Californians in need, were also $1.3 billion more than anticipated due to federal cuts from the “Big, Beautiful Bill” that President Donald Trump signed in July, the report stated.

While enthusiasm for artificial intelligence companies has pushed the stock market to record highs, increasing state tax revenue, the report warned the boost likely won’t last.

“With so much exuberance surrounding AI, it now appears time to take seriously the notion that the stock market has become overheated,” the report states. “History suggests that the stock market is prone to overreact to major technological advances, even if the technology itself turns out to be revolutionary.”

The LAO advised lawmakers to increase revenue and reduce spending.

“While important components of the state economy are sluggish, revenues are not falling, nor are conditions as bad as they would be in an outright recession,” the report states. “This makes solving the budget problem with ongoing solutions all the more important. Continuing to use temporary tools — like budgetary borrowing— would only defer the problem and, ultimately, leave the state ill‑equipped to respond to a recession or downturn in the stock market.”

Gov. Gavin Newsom will unveil his annual budget proposal in January, which will serve as a starting point for legislators as they craft the state spending plan.

Assembly Budget Committee Chair Jesse Gabriel said the report underscored the challenging decisions ahead.

“While the Trump Administration continues to pursue destructive policies that will harm California families,” Gabriel said in statement released Wednesday, “the Assembly Budget Committee remains committed to crafting a responsible budget that prioritizes essential services.”

H.D. Palmer, a spokesperson for the California Department of Finance, said the LAO report highlighted the challenges lawmakers will face due to “federal uncertainty, market volatility, and continued growth in both cost and caseload for major state programs.”

“In the coming weeks, the Governor will be finalizing his decisions on how he’ll propose to meet the challenges in the coming year,” Palmer said in a statement.

London, United Kingdom – David Lesperance, a Canadian wealth adviser based in Poland, is working against the clock for one of his British clients.

John*, who requested anonymity, is trying to relocate from London to Dublin, the Irish capital, ahead of November 26, when Chancellor Rachel Reeves will deliver the budget – a statement presenting the Labour government’s plans for public finances for the year ahead.

Having built a company worth around 70 million pounds ($92m) that he plans to sell soon, John wants to avoid a hefty capital gains tax bill.

As his children are in university, upping sticks is possible. He hopes to take advantage of the Republic of Ireland’s non-domiciled, or “non-dom”, tax regime, which would exempt him from Irish taxes as well.

“We’ve been moving fast to organise his immediate departure to Ireland,” said Lesperance, who has been assisting him in shifting his assets abroad. “With higher taxes looming, the costs of leaving early are a rounding error.”

John is not alone.

The footballer Rio Ferdinand has recently moved to Dubai, citing tax as a push factor, while Egyptian billionaire and Aston Villa co-owner Nassef Sawiris, who moved his residency to Italy and the United Arab Emirates from Britain, told the Financial Times earlier this year that everyone in his “circle” is considering moving.

Herman Narula, the 37-year-old British Indian founder of Improbable, a tech company, announced this month that he is fleeing to Dubai. Worth about 700 million pounds ($920m), he is said to be Britain’s richest young entrepreneur. Among his reasons for fleeing were reported plans by the Labour government to impose an exit tax on wealthy people leaving the United Kingdom.

While that proposal appears to have been ditched, the overall business environment for entrepreneurs is increasingly unpredictable, Narula and a few others say.

“There is alarming evidence that some entrepreneurs are leaving the UK,” reads a recent open letter to Reeves, signed by more than a dozen wealthy business owners, including Nick Wheeler, founder and chair of the men’s clothing retailer Charles Tyrwhitt, and Annoushka Ducas, a jewellery designer.

“As the government prepares for this year’s Budget, it must carefully consider the cumulative impact of these policies on entrepreneurs,” the letter warns.

When the budget is delivered, all eyes will be on any changes to taxation – an issue affecting everyone in the UK. In recent months, speculation about tax amendments on property, incomes and pensions has repeatedly made headline news.

Rumours about the superrich abandoning the UK have been swirling for an even longer period, triggered by the mere prospect of a Labour government last year. Since the Keir Starmer-led government was elected last July, a range of media outlets have homed in on case studies suggesting that Labour is driving wealth out.

The first Labour budget last October outraged some high-earning individuals in the UK, who said they were already taxed too much.

“Last year’s Budget measures, including changes to Capital Gains Tax, Entrepreneur’s Relief, and Employer National Insurance, have increased costs for many entrepreneurs and enterprises,” read the recent open letter from wealthy business owners to Reeves.

Those changes came after the Conservatives abolished the non-dom regime, a status that allows for people with a residency abroad to avoid taxes in the UK.

But experts have offered words of caution on the supposed flight of the rich.

There is no official data on the number of wealthy individuals leaving because of Labour’s tax changes.

“The most recent tax data on wealthy individuals with non-dom status from HMRC [His Majesty’s Revenue and Customs, the UK’s tax revenue department] shows that the number of non-doms leaving the UK is in line with or below official forecasts,” said Mark Bou Mansour, an advocate at the Tax Justice Network.

Claims that recent revenue-boosting tax reforms have triggered a massive non-dom exodus are false and part of a wider rhetoric that is detrimental to the UK’s fiscal and economic health, he said.

“Talking about whether the superrich will move if we tax can be a distraction from talking about the harms to economies and democracies that arise from not taxing extreme wealth,” he said.

Mansour pointed to a 2024 study by the London School of Economics that interviewed a number of wealthy individuals. It found the most important factors underpinning their reluctance to migrate were their attachment to the capital’s cultural infrastructure, private health services and schools, and the ability to maintain social ties.

“There’s plenty of strong evidence showing that the superrich don’t choose to relocate just to pay less tax,” said Mansour.

Behind a large number of articles predicting an exodus of wealthy people was a report by the passport advice firm Henley & Partners.

However, the report was found to be based on flawed methodology, and was later amended.

Even so, Lesperance said he has worked with a number of clients who have left the UK since Labour came into power.

He argued that while not necessarily large in number, the group makes up a high percentage of overall tax revenue raised by the government.

“The tax contribution of a non-dom is about 220,000 pounds ($289,000) a year, which is about six or seven times the UK average,” he said, “They’re super contributors” who need to be protected, or else, “You’re going to actually see a drop in annual tax collections because these people have left.”

Some of his clients have chosen to relocate to Milan and Dubai.

“As one of my clients said, ‘London’s nice, but it’s not that nice,’” he said.

But Michelle White, head of private office at UK wealth management firm Rathbones, said that while her clients are internationally mobile and could move away, the majority have stayed put so far.

“Since some of these articles started coming out saying the floodgates are open, we haven’t seen that,” she said.

Britain’s schools, legal system and business environment continue to be pull factors, she argued.

Those who have left usually have ventures or properties abroad and can easily relocate, or are considering selling their business in the next two years or so, and do not want to pay capital gains tax on sales.

Others have big payouts from private equity or hedge funds and want to avoid paying income tax.

“It means that they’ll go and spend more time somewhere else and less time here in order to not pay UK tax on that sale,” said White.

A large extent of her clientele in the end decides to stay in the UK to raise families, and mitigates taxation through smart planning.

“I tell people to look at the next 50 years and plan taxes around that,” she said, “People take a long view.

“Tax is one thing, but quality of life and how you actually want to live as a family often overrides the tax aspect.”

A handful of opposition abstentions allowed Carney and minority Liberals to advance a deficit-boosting budget aimed at countering US tariffs.

Prime Minister Mark Carney’s minority government narrowly survived a confidence vote on Monday as Canadian lawmakers endorsed a motion to begin debating his first federal budget – a result that avoids the prospect of a second election in less than a year.

The House of Commons voted 170-168 to advance study of the fiscal plan. While further votes are expected in the coming months, the slim victory signals that the budget is likely to be approved eventually.

Tonight, the House of Commons has voted to pass Budget 2025.

It’s time to work together to deliver on this plan — to protect our communities, empower Canadians with new opportunities, and build Canada strong.

— Mark Carney (@MarkJCarney) November 18, 2025

“It’s time to work together to deliver on this plan – to protect our communities, empower Canadians with new opportunities, and build Canada strong,” Carney said on X, arguing that his spending blueprint would help fortify the economy against escalating United States tariffs.

Carney has repeatedly cast the budget as a “generational” chance to reinforce Canada’s economic resilience and to reduce reliance on trade with the US.

The proposal includes a near doubling of Canada’s deficit to 78.3 billion Canadian dollars ($55.5bn) with major outlays aimed at countering US trade measures and supporting defence and housing initiatives. The prime minister has insisted that higher deficit spending is essential to cushion the impact of US President Donald Trump’s tariffs. While most bilateral trade remains tariff-free under an existing North American trade agreement, US levies on automobiles, steel and aluminium have struck significant sectors of the Canadian economy.

According to Carney, a former central banker, internal forecasts show that “US tariffs and the associated uncertainty will cost Canadians around 1.8 percent of our GDP [gross domestic product]”.

The Liberals, a few seats short of a majority in the 343-seat House of Commons, relied on abstentions from several opposition members who were reluctant to trigger early elections. Recent polling suggested Carney’s Liberals would remain in power if Canadians were sent back to the polls.

Carney was elected to a full term in April after campaigning on a promise to challenge Washington’s protectionist turn. Meanwhile, the Conservative Party, the official opposition, has been wrestling with internal divisions since its defeat, and leader Pierre Poilievre faces a formal review of his performance early next year.

Poilievre has sharply criticised the government’s spending plans, branding the fiscal package a “credit card budget”.

The left-leaning New Democratic Party (NDP) has also expressed concerns, arguing that the proposal fails to adequately address unemployment, the housing crisis and the cost-of-living pressures faced by many Canadian families.

NDP interim leader Don Davies said the party accepted that blocking the budget would push the country back into an unwanted election cycle, explaining why two of its MPs ultimately abstained.

It was “clear that Canadians do not want an election right now … while we still face an existential threat from the Trump administration”, he said.

“Parliamentarians decided to put Canada first”, Finance Minister Francois-Philippe Champagne said.

Polling before Monday’s vote suggested Canadians broadly shared this view. A November survey by the analytics firm Leger found that one in five respondents supported immediate elections while half said they were satisfied with Carney’s leadership.

Budget airline Wizz Air plans to reduce the number of flights from Gatwick Airport, instead shifting its fleet to Luton, due to operating costs and ‘inferior slots’

Budget airline Wizz Air is set to cut the number of flights it operates from Gatwick Airport.

József Váradi, chief executive of Hungarian firm Wizz Air, said his airline is losing money in its operations at the UK’s second busiest airport. The carrier is instead set to shift towards operating more flights out of Luton due to lower costs.

This process will start with Wizz Air moving a single plane from Gatwick to Luton, Mr Váradi said. This will kickstart an “ongoing process” to slowly shift the fleet.

This follows the closure of an Abu Dhabi-based offshoot of Wizz Air, announced in July, as well as the scrapping of its base in Vienna due to “airport costs and taxes”.

Mr Váradi told The Telegraph: “Gatwick is expensive and we have been operating an inferior set of slots there. We think that we can enhance financial performance by operating that capacity from Luton.”

“Circumstances change and you have to take action. Whichever bases give you the most profitability, you should be biased toward them. That includes moving aircraft over from Gatwick to Luton.”

Mr Váradi added that the airline doesn’t plan on leaving Gatwick entirely, but instead aims to “optimise” its base there. He added: “You have to churn your network for profit. We are simply more efficient financially in Luton.”

This comes after Wizz Air revealed ‘Wizz Class’, which will allow passengers to pay extra to sit on a row with an unoccupied middle seat – giving them a little extra room in the process.

Other perks include priority boarding, a carry-on bag allowance and guaranteed space in overhead bins. The airline said Wizz Class is “designed to meet the demand of travellers seeking more space, comfort and a quicker exit from the aircraft”.

Commercial officer Silvia Mosquera said: “The roll-out of Wizz Class follows feedback from our growing number of business travellers who value low-cost travel options and prefer additional space during the flight.”

The new seating option will appear on selected flights departing from London, Rome, Warsaw, Bucharest and Budapest in December.