Reeves

Nov. 4 (UPI) — British Chancellor Rachel Reeves signaled Tuesday that she was likely to raise taxes on ordinary people in her upcoming budget this month in spite of an election pledge by the Labour government it would not do so.

In a speech in Downing Street, Reeves said she would make “the choices necessary” to ensure the foundation of the economy was sufficiently strong for the government to deliver on its mandate to protect the NHS, get down the national debt and rebuild the economy.

Notably, she did not repeat the manifesto pledge the party ran on in the 2024 general election, in which it swept to power to leave untouched the three main taxes — income tax, National Insurance and VAT.

Instead, seeking to explain her actions in advance of her watershed budget, which she will deliver to Parliament on Nov. 26, she said people needed to “understand the circumstances we are facing” and that everyone needed to do their bit to rectify the situation.

“As I take my decisions on both tax and spend I will do what is necessary to protect families from high inflation and interest rates, to protect our public services from a return to austerity and to ensure that the economy that we hand down to future generations is secure, with debt under control.

“If we are to build the future of Britain together, we will all have to contribute to that effort. Each of us must do our bit for the security of our country and the brightness of its future.”

Reeves dangled the prospect of rewards down the line, stating that getting it right now would yield more resilient public finances with the headroom to withstand global shocks, which in turn would provide businesses with the confidence to invest.

She said that would in turn leave the government with more leeway to act when necessary, investing in infrastructure and industry to build a stronger economy and get down the cost of government debt, spending less on interest and more and schools and the NHS.

Reeves is betting on the budget, her second, to win the endorsement of the market for her management of the country’s finances by showing she can stick to the fiscal rules she set for herself in October 2024.

Those rules state she must balance spending with revenue — within a plus or minus margin of 0.5% of GDP — within five years, meaning no borrowing for everyday spending from the 2029-30 financial year onward. In addition, the ratio of government debt to GDP must begin falling within the same timeframe.

To do that, however, she must demonstrate how she plans to plug a fiscal hole of as much as $40 billion and boost lackluster economic growth.

The only options to close the gap and balance the books are a return to austerity — which the government has categorically ruled out — or boost the amount of money flowing into government coffers.

Reeves raised some taxes on business in her first budget in November 2024 and to come back for more after promising she would not do so, particulary when it comes to raising the basic rate of income tax — currently 20% — is very high risk, politically.

It hasn’t been done for 50 years and it didn’t work out well for then-Labour government with the country plunged into a currency crisis and forced to seek a bailout loan from the IMF.

Reeves mostly laid blame at the feet of the previous Conservative administration’s policies, including Brexit, austerity and cuts to infrastructure spending, all of which she said had led to falling productivity.

She also cited high inflation globally and economic uncertainty created by the trade tariffs imposed by U.S. President Donald Trump in recent months.

Conservative shadow chancellor, Mel Stride, said it was now certain tax hikes for families and businesses were on the way.

He said that if Reeves proceeded to go back on her word, she should quit.

Daisy Cooper, Treasury spokesperson for the Liberal Democrats, said the government could no longer dodge responsibility.

“It’s clear that this budget will be a bitter pill to swallow as the government seems to have run out of excuses,” she said.

KEANU Reeves’ security team slammed a fan to the ground after she attempted to get into the actor’s car.

A woman could be heard screaming for the star’s attention before attempting to get inside his vehicle.

The shock footage came just seconds after the actor graciously waved and smiled at waiting fans and photographers outside of his hotel.

At one point, the lady in question could be heard insisting she was his “divine wife” during the altercation.

Having waved to the crowds, Keanu can be seen calmly getting into his car.

Just seconds later, the woman appears to shove past his security details as she heads for his car door.

With the bodyguards attempting to hold her back, the woman screeches: “Let go of me.”

She then shouts at the window: “Keanu, it’s your divine wife!”

After repeatedly saying the star’s name, she runs around the vehicle to the other side before shouting: “Don’t let them hurt me.”

As the car attempts to drive away, the woman manages to reach the car door handle.

The bodyguards then manage to get to the woman and forcibly pull her away from the car.

Latching onto her, two men appear to pull at her before she stumbles and falls onto her back on the road.

She can be heard branding the men “a*****es” before managing to get back up.

One of the men shouts: “Get her out of here. Get her out of here.”

Someone else can be heard shouting: “You guys need a restraining order on this one.”

Keanu is currently appearing on-stage in a Broadway play.

The 61-year-old star has been performing in Jamie Lloyd’s adaptation of Samuel Beckett’s play Waiting For Godot.

The production has been entertaining guests at the Hudson Theater. 

Chancellor Rachel Reeves has said she plans to scrap “needless form filling” in a bid to boost business growth.

Speaking at a regional investment summit in Birmingham, the chancellor said the reforms would boost growth and “make the UK a top destination for global capital”.

Ahead of the Budget next month, Reeves acknowledged that “for too many people” the economy was “not working as it should”.

The government has been criticised by firms who say increased employers’ National Insurance contributions and the Employment Rights Bill add to the burdens facing businesses.

The chancellor said the changes will save firms almost £6bn a year by the end of the parliamentary term.

The measures include plans to reform the company merger process. New “simpler corporate rules” will remove requirements for small businesses to submit lengthy reports to Companies House, the Treasury said.

The changes will apply to over 100,000 firms such as family-run cafes.

Earlier on Tuesday, Business Secretary Peter Kyle defended Labour’s approach to business, telling the BBC the government would implement changes in a way that is “pro-worker and pro-business”.

The measures could include temporary exemptions for new AI software from regulation, Kyle told the Today programme.

“In certain circumstances when new AI technology is being developed, we can remove it from all regulation for a period of time to give it the space to really grow, to develop, to be commercialised really rapidly,” he said.

This, he said, would enable the tech to be used “to benefit the health, the wealth, the education of our nations”.

“We’ll use that in a very targeted, a very safe way.”

The government has pledged to reduce the administrative cost of regulation by a quarter by the end of this Parliament.

Kyle said the previous government “did not do enough on deregulation” despite pledging to do so, particularly after Brexit.

“If you look at some of the reporting that needs to be done by directors, for example, directors’ reports to Companies House, I’m eliminating a great deal of that today because some of it is just so unnecessary,” he said.

But pushed on whether the government’s changes to employment rights would add costs to businesses, Kyle insisted that the changes would be fair for both employers and employees.

“We are making sure that the rights and responsibilities that people have in the workplace as employers and as employees [are] right for the age we’re living in.”

Jane Gratton, the deputy director of public policy at the British Chambers of Commerce, said the plans would be welcomed by businesses.

“The burden of unnecessary red tape and bureaucracy ramps up their costs and damages competitiveness,” she said.

Tina McKenzie, policy chair at the Federation of Small Businesses, said Tuesday’s announcement will “ring hollow” if the chancellor raises taxes for employers in next month’s budget.

“The true test of whether Rachel Reeves will deliver for business will be at the Budget – small firms and entrepreneurs have heard these warm words on regulation before.

“The burden of compliance – in terms of money, time, and stress – weighs heavily on small firms, and cutting it needs to be a project undertaken by every part of the government.”

But the Liberal Democrats’ Treasury spokeswoman Daisy Cooper said: “If the chancellor was serious about cutting red tape she would tackle the mind-blowing two billion extra pieces of business paperwork created by Brexit by pursuing an ambitious tailor-made UK-EU customs union.”

It’s easy to miss the confidence of Billy Wilder or Frank Capra whenever some brave soul tries to make a comedy that takes America’s temperature by straddling cynicism and optimism. Those Hollywood masters could handily juggle the sweet, sour and satirical and, in Wilder’s case, even leave you believing in a happy ending.

With his writing-directing feature debut, “Good Fortune,” however, Aziz Ansari, who stars alongside Seth Rogen and Keanu Reeves (as an angel named Gabriel), swings big, hoping to capture that jokey truth-telling vibe about the State of Things. His subject is a fertile one too: the gig economy fostering our crushing inequity, but also the desperation of the have-nots and how oblivious the wealthy are about those who made them rich. So let’s stick it to the billionaires! Let Keanu help the downtrodden!

Ansari’s high-low morality tale, set in our fair (and unfair) Los Angeles, is a friendly melding of celestially tinged stories (“Heaven Can Wait,” “Wings of Desire”) and body-swap comedies (“Trading Places”). But as agreeable as it is, it can’t square its jabs with its sentimentality. It’s got heart, kind eyes, a wry smile and some funny lines, but no teeth when you really need things bitten into, chewed up and spit out.

Ansari plays Arj, living a serious disconnection between his professional identity — wannabe Hollywood film editor — and how he actually exists: task-gigging for scraps and living in his car. When a garage-reorganizing job for Jeff (Rogen), a Bel-Air venture capitalist, turns into an assistant position, Arj feels secure enough to use the company card for a fancy dinner with occasional colleague and romantic interest Elena (an underused Keke Palmer). Jeff clocks the charge the next day, though (a realistic detail about the rich watching every penny), and immediately fires Arj.

All along, Arj’s sad situation has touched Reeves’ long-haired, khaki-suited angel, whose life-saving purview (he specializes in jostling distracted drivers) is low in the hierarchy overseen by boss guardian Martha (Sandra Oh). Gabriel wants a big healing job to show Arj, with a little role-reversal magic, that being Jeff isn’t all it’s cracked up to be. Except, of course, it is. (David Mamet’s line “Everybody needs money — that’s why they call it money” comes to mind.) The newly luxe-and-loving-it Arj shows no signs of wanting to switch back (which is apparently his call to make in the rules of this scenario), leaving out-of-his-depth Gabriel in the position of convincing a sudden billionaire why he should go back to being poor.

Which is where “Good Fortune,” for all its grasp of how Depression-era screwball comedies made the filthy rich mockable, struggles to match its issue-driven humor with its fix-it heart. While it’s funny to watch Rogen’s freshly desperate character suffer food-delivery humiliation, buying the script’s changes of heart — and the film’s naïve idea of where everyone should be at the end — is another matter. That’s why screwball comedies didn’t try to upend capitalism, just have some clever fun with it and let a simple love story stick the landing. Ansari’s ambition is admirable but he’s better at diagnoses than solutions.

His gold-touch move is giving the hilariously deadpan Reeves one of his best roles in years: a goofy meme brought to disarming life and the movie’s beating heart. Doing good can be hard work; understanding humans is harder. Plus, Reeves makes eating a burger for the first time a sublimely funny reaffirmation that sometimes, indeed, it is a wonderful life.

THE chancellor could raise tens of billions from tax reforms that don’t hit “working people”, leading economists have said.

Rachel Reeves is under pressure to fill an estimated £50billion black hole in the public finances ahead of November’s autumn statement. 

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Westminster is awash with rumours that Labour could extend the freeze on income tax thresholds.

However, critics say this would mean breaking Labour’s manifesto pledge not to increase taxes on “working people”.

But in a new report, the Institute for Fiscal Studies (IFS) urged the Chancellor to resist “half-baked” solutions like “simply hiking rates”. 

The IFS Green Budget Chapter report instead urges the chancellor to reform the “unfair” and “inefficient” tax system.

End capital gains tax relief on death

Reeves could scrap capital gains tax relief on death, the report said.

When you sell certain assets – like houses, land or other valuable items – you have to pay a tax on the profit you made on it.

However, there are some important exceptions.

For example, if someone dies and you inherit their asset, you don’t have to pay capital gains tax they would have paid.

But the IFS said Reeves should consider scrapping the relief, raising £2.3billion in 2029-30.

However, families could oppose the measure given Labour is already skimming more revenue off inherited wealth.

The inheritance tax threshold has been frozen at £325,000 since 2009.

And last year, Reeves announced she would extend the freeze until 2030.

Hit taxpayers with a ‘one-off’ wealth tax

Economists and politicians are often divided over whether a wealth tax would work.

Supporters argue that the UK’s richest 1% are wealthier than the bottom 70% – and that a wealth tax would reduce this inequality.

But critics say it would be an administrative nightmare and lead millionaires to leave the country, taking their businesses and tax revenues with them.

But if Labour does reach for wealth in the budget – it should opt for a “one-off” wealth tax, the IFS said.

The think tank argues this is a better option than a recurring wealth tax.

It would work by the government calculating how much people’s total assets are worth and taxing them over a certain threshold.

“An unexpected and credibly one-off assessment of existing wealth could in principle be an economically efficient way to raise revenue,” the IFS wrote.

However, a wealth tax that happened on a regular basis would have “serious drawbacks,” the think tank warned.

Valuing everyone’s wealth every year would be “extremely difficult,” it said.

Moreover, a regular tax could deter the highest tax payers from residing in the UK long-term, potentially hitting overall tax revenues.

But the IFS said that even a “one-off” levy could spell trouble if people don’t trust the government not to come back for more.

The report said: “The potential efficiency of such a tax could be
undermined, however, if announcing a one-off tax created expectations of, or uncertainty about, other future taxes.”

Double the council tax rates paid by highest value homes

A new council tax surcharge could raise up to £4.4billion.

Council tax is a local tax on residential properties in the UK, with homes assigned to Bands A to H based on their value.

Bands G and H generally include the highest value homes.

The IFS said doubling the council tax paid by these households could mean a £4.4billion boost.

However, critics already say the council tax system is “unfair and arbitrary”.

As reported by The Sun, families living in modest homes sometimes pay more than those in multi-million-pound mansions.

The root of the problem is simple – council tax bills are not based on what your home is worth today.

Instead, it’s based on its value way back in 1991, when homes were categorised into bands ranging from A to H. 

Decades of uneven house price growth mean this once-simple system is now riddled with inequalities.

Moreover, councils set their own tax rates – leading to a “postcode lottery”.

The average Band D council tax in England is £2,280, but councils set their own rates.

For example, in Wandsworth, people pay just £990, while in Nottingham, they pay £2,656.

This means that millions of homeowners pay much less compared to their property’s value than those in poorer areas, according to PropertyData.

Another potential problem is that the extra cash would go to local authorities rather than central government.

Local authorities use council tax to pay for local services like schools, bin collections and libraries.

So to make sure it reaps the benefits of the change, Downing Street could reduce the grants being paid to councils, the IFS said.

The UK government gives councils more than £69billion in funding – a 6.8% increase in cash terms compared to 2024-25.

But councils would likely still fight back against any funding downgrade – with sticky 3.8% inflation already eating into their grants.

Rejig inheritance tax

The IFS admits that changes to inheritance tax could ‘provoke’ strong reactions.

But its report said that the £9billion said annually is ‘modest’ – although high by historical standards.

Reforming death duties to abolish the additional £175,000 tax-free allowance could raise around £6billion, the economists wrote.

“One obvious option would be to increase the rate of inheritance tax from its current 40%,” the economists wrote.

They said an increase of just 1% would raise £0.3billion in 2029–30.

The government could also reduce the threshold at which the tax begins to be paid.

Currently, people can pass on up to £325,000 of wealth tax-free.

Then there’s an additional £175,000 tax-free allowance that can be used only when passing on a primary residence to a direct descendant.

Abolishing the second of these allowances, for example, could raise around £6billion in 2029–30, the IFS said.

Crack down on businesses underpaying their taxes

The think tank has urged Labour to tackle tax non-compliance.

Corporation tax, a tax on company profits, has become increasingly important to the Treasury’s coffers in recent years.

Over the course of the 2010s, revenue averaged 2.4% of national income, rising to 3.3% in 2025–26.

But corporation tax dodging meant 15.8% of liabilities went unpaid in 2023-24, up from just 8.8% in 2017-18.

Small businesses are mainly to blame, the IFS said, admitting that claiming the prize of missing corporation tax “would not be straightforward in practice”.

The think tank added: “More work is needed to understand why so many small companies are submitting incorrect tax returns.

“It is likely that tackling the gap would require targeted
compliance activities from HMRC, such as auditing small businesses.”

The IFS also said “more revenue could be raised from corporation tax”.

However, it did warn that, while a 1% increase would raise £4.1billion, there could be adverse consequences.

The authors wrote that investment in the UK could become “less attractive” and reduce future tax yields.

However, critics may argue that any tax hike hitting members of the public – even if targeting inheritance or council tax – will still feel like a broken promise.

What must the chancellor avoid doing?

The personal tax allowance has been frozen at £12,570 since April 2021.

Prime Minister Rishi Sunak announced the freeze would remain until April 2026 and Labour extended it until April 2028.

Extending the freeze on personal tax thresholds including national insurance contributions would raise around £10.4billion a year from 2029-30.

But IFS economists say Reeves must not do this – and instead lift the threshold amid rising inflation.

Extending the freeze would be a breach of Labour’s manifesto pledge not to increase taxes for “working people” which includes income tax, national insurance and VAT, the IFS said.

The report’s authors also said restricting income tax relief on pension contributions would raise large sums but should be avoided.

Currently, when you put money into a pension, the income tax you’ve already paid on that money is essentially returned via a government top-up.

The IFS said restricting relief would be “unfair” to penalise pensions again when pension income is already taxed.

The Chancellor should also resist the temptation to up stamp duties, the IFS said.

The think tank fears it would cause people to avoid selling their homes when they want to – hitting the jobs market and holding back growth.

“Changing rates and thresholds is all very well, but unless the Chancellor is willing to pursue genuine reform it will be taxpayers that shoulder the cost of her neglect,” the report, which forms a chapter in the IFS’s wider budget assessment for 2025, said.

Isaac Delestre, a senior research economist at the think tank and an author of the chapter, said Ms Reeves would have “fallen short” if she reaches for quick revenue without wider reform.

“Almost any package of tax rises is likely to weigh on growth, but by tackling some of the inefficiency and unfairness in our existing tax system, the Chancellor could limit the economic damage,” he said.

THE Chancellor has been dealt another setback after borrowing hit the highest level in five years, making Budget tax rises “inevitable”.

The Government borrowed more money than expected last month, at £18billion, according to the latest figures from the Office for National Statistics (ONS).

This was £3.5billion more than in August 2024.

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The interest on Government debt soared by £1.9billion to £8.4billion, which added to higher spending on benefits and public services.

This offset any boost from the National Insurance Contributions hike, the ONS said.

It marked the highest August borrowing since 2020, significantly overshooting the £12.8billion expected by economists.

The level of government borrowing was £5.5billion higher than the Office for Budget Responsibility forecast in March.

Meanwhile, borrowing for the first five months of the financial year hit £83.8billion.

This was £16.2billion higher than the same period last year and well ahead of the OBR’s £72.4billion prediction.

Martin Beck, chief economist at WPI Strategy, said: “The £10billion buffer the Chancellor pencilled in against her key fiscal rule in March has almost certainly gone.

“That means tax rises in November look inevitable.”

James Murray, Chief Secretary to the Treasury, insisted the Government “has a plan to bring down borrowing because taxpayer money should be spent on the country’s priorities, not on debt interest”.

He added: “Our focus is on economic stability, fiscal responsibility, ripping up needless red tape, tearing out waste from our public services, driving forward reforms and putting more money in working people’s pockets.”

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Lost decades

WE are now in a new cost of living crisis — or perhaps we never really escaped the first one.

A dismal report yesterday revealed family incomes are £20,000 less than they should have been had economic growth in the UK not flatlined after 2005.

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It means Brit households have effectively lived through two lost economic decades.

Covid, the credit crunch, war in Europe and energy price shocks were hammer blows.

But inflation is now firmly entrenched in the economy thanks to Rachel Reeves’s policies, which have directly driven up prices.

Her National Insurance rise has left hard-pushed customers facing bigger bills at the tills, as shops were forced to pass on huge extra costs.

Unnecessary Net Zero measures only add to the misery.

The irony is that yesterday’s report on living standards was by the Left-leaning Resolution Foundation.

Many of its former members are now sitting in Downing Street as key advisers to the Prime Minister and Treasury.

Yet most of their ideas to fix the economy are based on seizing ordinary people’s hard-earned savings, property taxes and taxing the rich so highly they flee the country.

Big business is already warning of the folly of this outdated 1970s-style approach.

Don’t do it, Chancellor.

Action, not talk

NEW Home Secretary Shabana Mahmood says she will not allow migrants to avoid deportation through bogus last minute claims that they are the victims of modern slavery.

She insists these “vexatious” appeals make a mockery of our laws.

Of course, she is right that migrants are gaming a broken asylum system.

But for all her tough talk, how exactly does she plan to do it?

Successive Home Secretaries have promised to do “whatever it takes” to secure our borders.

All have foundered on the immovable rock that is European human rights laws.

Those same laws which are defended to the hilt by her cabinet colleague, Attorney General Lord Hermer.

We wish Ms Mahmood well. But it’s actions that count.

Hope & glory

FOR all the talk of trade deals and tariffs worth billions there is one British institution that remains priceless.

Our Royal Family — such a vital asset to this country — once again totally charmed the world’s most powerful man, Donald Trump.

Amid the doom and gloom it’s good to remember that no-one does pomp and pageantry quite like us Brits.

CHANCELLOR Rachel Reeves was warned she will hit tenants if the Treasury pursues plans to hike taxes on landlords.

She is considering putting National Insurance on rental income to fill a £50billion black hole at the autumn Budget.

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But housing experts blasted the move.

TV property show presenter Kirstie Allsopp, said: “This is tenant bashing under the guise of landlord bashing. It’s like having the economy run by Baldrick.”

Ben Beadle, of the National Residential Landlords Association, said: “This will hit the very households the Government wants to protect.”

Earlier in the week, The Sun reported that firms were bracing themselves for a £2.5billion Labour tax double whammy.

They would be clobbered twice — first by an inflation rate increase in business rates in April, then by a Rachel Reeves surcharge, experts said.

Business rates are the property tax that companies must pay just to occupy their shops, pubs, factories and offices.

The Tories warned thousands of struggling firms would be crippled.

Shadow Housing Secretary James Cleverly said: “Once again, Labour is hammering the high street. Raising business rates for thousands of hard-working small businesses across England was one of Labour’s first acts in office.

“And despite our opposition to it, and clear evidence of the damaging impact it will have, they have pressed ahead — consequences be damned.”

The first squeeze would come in April when bills rise automatically with inflation.

The Bank of England expects the rate will hit four per cent next month.

Global tax firm Ryan said that would add £1.11billion to business rates across England.

The second blow would come when Chancellor Ms Reeves introduces a supplementary multiplier on larger premises next year.

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FEARS are growing that Rachel Reeves could slap a new tax on people’s homes to replace stamp duty and council tax.

The Chancellor is studying plans for a levy on houses worth over £500,000, according to The Guardian.

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The paper said the Treasury is looking at a “proportional property tax” which would be paid when owners sell their homes.

It claimed the shake-up could also pave the way for a new local levy to replace council tax, which is still based on 1990s property values.

But Treasury officials last night insisted that while tax reform is being explored, the details – including any threshold or rate – have not been decided.

A Treasury spokesperson said: “The best way to strengthen public finances is by growing the economy – which is our focus.

“Changes to tax and spend policy are not the only ways of doing this, as seen with our planning reforms, which are expected to grow the economy by £6.8bn and cut borrowing by £3.4bn.

“We are committed to keeping taxes for working people as low as possible, which is why at last Autumn’s Budget, we protected working people’s payslips and kept our promise not to raise the basic, higher or additional rates of Income Tax, employee National Insurance, or VAT.”

The Sun reported yesterday that homeowners would be forced to hand over £82,000 to the taxman thanks to Reeves’ inheritance tax raid.

Inheritance tax is charged on all assets above the £325,000 threshold, which is called the nil-rate band.

Anything above this threshold is charged at 40%, but your tax-free allowance rises by £175,000 if you leave your home to a direct descendant, such as a son, daughter or grandchild.

Currently, pension pots are exempt from inheritance tax – but this will all change from April 2027, when they will suddenly be subject to the 40% levy, following a tax grab announced in last year’s October Budget.

The change is expected to increase the number of estates paying death duties from 4% to 9.7%, dragging thousands of people into the tax net.

New analysis by Quilter shows that grieving families could face a nasty bill sting following the changes.

Taxes must rise in the autumn if Chancellor Rachel Reeves is to meet her self-imposed borrowing rules, according to an economic think tank.

The National Institute of Economic and Social Research (Niesr) said the government was on track to miss the target it has set itself by £41.2bn.

It recommended “a moderate but sustained increase in taxes” including reform of the council tax system to make up the shortfall.

The government said “the best way to strengthen public finances is by growing the economy”, but the Conservatives said Labour “always reaches for the tax rise lever”.

When she became chancellor, Reeves set out two rules for government borrowing, which is the difference between public spending and tax income.

The first rule was that day-to-day spending would be paid for with government revenue, which is mainly taxes. Borrowing can only be for investment.

The second rule was that debt must be falling as a share of national income by the end of a five-year period.

Reeves has repeatedly said these rules are “non-negotiable”.

The chancellor originally promised not to raise taxes further, but recently refused to rule it out after disappointing data on economic growth.

Stephen Millard, deputy director for macroeconomics at Niesr, said Reeves “will need to either raise taxes or reduce spending or both in the October Budget if she is to meet her fiscal rules”.

Niesr argues that raising taxes would help build a “buffer” that would reassure investors about the stability of the UK’s public finances.

That in turn “may reduce borrowing costs” for the government, it said.

Niesr said the £41bn shortfall in the government’s budget was in part due to weakening growth over the past few months, resulting in a lower tax take and higher government borrowing.

But the reversal of welfare cuts, which were originally designed to save £5.5bn a year by 2030, had also had an impact, it said.

The welfare cuts were watered down, following opposition from within the Labour Party, and are now expected to save less than half the original amount.

As a result the chancellor now faced a “trilemma”, the thinktank said, over which of her pledges to fulfill: meeting her spending commitments, her manifesto promises to avoid tax rises on working people, or meeting the limits she has set on borrowing.

One of these commitments will need to be dropped, Niesr concluded, but it said the government should prioritise protecting public expenditure that supports the most vulnerable, while also safeguarding public investment which supports future growth.

Niesr said the government’s other priority should be policies to promote growth and productivity, to boost living standards across the UK.

It said that the living standards of the poorest 10% of the population were now 10% lower than pre-Covid levels.

When Labour came to power a year ago, it said it wanted to make the UK the fastest growing country in the G7 group of nations.

However, the UK had faced trade policy uncertainty and geopolitical risk, as well as domestic challenges, the thinktank said.

Niesr said its analysis suggested the economy would grow “modestly” at 1.3% in 2025 and 1.2% in 2026, placing the UK in the middle of the G7 economies.

The IMF recently said it thought the UK was set to be the third fastest growing economy out the world’s so-called most advanced economies this year and the next, after US and Canada.

Niesr said inflation, the rate at which prices are rising, remained “stubborn” and would be 3.5% this year and 3% next year.

The think tank, which is not affiliated to any political party or movement, did not suggest which taxes should rise or by how much.

However, it added that the government should also consider reducing welfare spending by speeding up plans to help people relying on benefits get into work.

The chancellor should also consider reforming council tax or even replacing it altogether with a land value tax, Niesr suggested.

A Treasury spokesperson said: “As set out in the plan for change, the best way to strengthen public finances is by growing the economy – which is our focus.”

However, shadow chancellor Sir Mel Stride accused Labour of not understanding the economy.

“Experts are warning Labour’s economic mismanagement has blown a black hole in the nation’s finances which will have to be filled with more tax rises – despite Rachel Reeves saying she wouldn’t be back for more taxes,” he added.

The program for the upcoming Toronto International Film Festival came into sharper view with Monday’s announcement of the majority of titles for the event’s galas and special presentations section. Along with TIFF’s news, some of the larger fall festival and awards season is also beginning to take shape.

Toronto, long known as a powerful showcase for launching awards-hungry and commercially ambitious fall titles, has been seen as losing some of its strength in recent years to festivals in Cannes, Venice and Telluride. This year’s TIFF program, which marks its 50th edition, will be closely watched for how its titles are received not only at the festival itself, but in the months ahead.

Among the notable world premieres in Monday’s announcement are Aziz Ansari’s feature directorial debut “Good Fortune,” a comedy of identity-swapping and self-discovery starring Ansari and Seth Rogen with Keanu Reeves as an inept angel, and James Vanderbilt’s “Nuremberg” starring Russell Crowe as imprisoned Nazi Hermann Göring, with Rami Malek as the psychiatrist tasked with interviewing him.

Maude Apatow will make her feature directorial debut with “Poetic License,” starring her mother Leslie Mann alongside Andrew Barth Feldman and Cooper Hoffman. “True Detective” creator Nic Pizzolatto will also make his feature directing bow with “Easy’s Waltz,” a drama of down-on-their-luck entertainers starring Vince Vaughn and Al Pacino.

TIFF will host the world premiere of Bobby Farrelly’s comedy “Driver’s Ed,” starring Kumail Nanjiani, Sam Nivola and Molly Shannon. Alex Winter directs and also appears in the comedy “Adulthood” alongside Josh Gad, Kaya Scodelario and Billie Lourd. David Mackenzie’s crime thriller “Fuze” stars Aaron Taylor-Johnson, Sam Worthington, Theo James and Gugu Mbatha-Raw.

Baz Luhrman will unveil “EPiC: Elvis Presley in Concert,” which utilizes previously unseen footage the director discovered while researching his 2022 film “Elvis.” The result is what Luhrman has described as “not specifically a documentary, nor a concert film.”

Saoirse Ronan stars in “Bad Apples,” which is premiering at the 2025 Toronto International Film Festival.

(Republic Pictures )

Other world premieres include Jonathan Etzler’s “Bad Apples,” starring Saoirse Ronan; David Michôd’s “Christy,” starring Sydney Sweeney as boxer Christy Martin; and Alice Winocour’s fashion world drama “Couture,” starring Angelina Jolie.

At this stage in the season, interpreting how a Toronto title is announced can give some clues as to where it may be popping up beforehand. “International Premiere” can mean a title is also first playing a week earlier at Telluride, while “North American Premiere” can mean something is playing first at Venice. “Canadian Premiere” means it is likely playing both Telluride and Venice (or already premiered at Cannes) before coming to Toronto.

The only title listed as an international premiere is Clint Bentley’s “Train Dreams,” which premiered earlier this year at the Sundance Film Festival.

North American premieres likely headed to Venice include Gus Van Sant’s “Dead Man’s Wire,” starring Bill Skarsgård and Colman Domingo; Guillermo del Toro’s “Frankenstein,” starring Oscar Isaac and Jacob Elordi; Mark Jenkin’s “Rose of Nevada,” starring Calum Turner and George MacKay; Mona Fastvold’s “The Testament of Ann Lee,” starring Amanda Seyfried; and Benny Safdie’s “The Smashing Machine,” starring Dwayne Johnson.

Canadian premieres include Edward Berger’s “Ballad of a Small Player” starring Colin Farrell; Jafar Panahi’s Cannes-winning “It Was Just an Accident”; Richard Linklater’s “Nouvelle Vague,” about the making of Jean-Luc Godard’s “Breathless”; Kleber Mendonça Filho’s “The Secret Agent,” which won best actor at Cannes for Wagner Moura; Daniel Roher’s “Tuner,” starring Leo Woodall and Dustin Hoffman; and Joachim Trier’s “Sentimental Value,” starring Stellan Skarsgård and Renate Reinsve.

Michaela Coel, left, and Ian McKellen star in “The Christophers,” which is premiering at the 2025 Toronto International Film Festival.

(Department M / Butler & Sklar Production)

Toronto’s previously announced titles include the opening night selection “John Candy: I Like Me,” a documentary on the beloved Canadian-born actor, directed by Colin Hanks and produced by Ryan Reynolds, as well as the world premiere of Rian Johnson’s third Benoit Blanc film starring Daniel Craig, “Wake Up Dead Man: A Knives Out Mystery.”

Other previously announced world premieres include Derek Cianfrance’s “Roofman,” starring Channing Tatum and Kirsten Dunst; Nicholas Hytner’s “The Choral,” starring Ralph Fiennes; Paul Greengrass’ “The Lost Bus,” starring Matthew McConaughey; Hikari’s “Rental Family,” starring Brendan Fraser; Nia DaCosta’s “Hedda,” starring Tessa Thompson; Steven Soderbergh’s “The Christophers,” starring Ian McKellen and Michaela Coel; and Agnieszka Holland’s “Franz,” a biopic of Franz Kafka.

Other titles already announced for TIFF that will be premiering elsewhere include the Canadian premiere of Chloé Zhao’s highly anticipated “Hamnet,” starring Paul Mescal and Jessie Buckley; and the North American premiere of Rebecca Zlotowski’s “A Private Life,” starring Jodie Foster, which premiered at Cannes.

More of the Toronto program will be announced in the coming days and weeks, including the Platform section for emerging voices and the popular Midnight Madness section. This year’s Toronto International Film Festival runs from Sept. 4 to 14.

A BELOVED department chain is preparing to shut its final store this month as it launches a “Rachel Reeves closing down sale.”

The famous shop will be shuttering forever after serving customers on the high street for 140 years.

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Beales in the Dolphin Centre in Poole will close on May 31 and is slashing the price of stock by 80 per cent in the meantime.

The historic chain was founded in Bournemouth in 1881 and offers a range of iconic products, including clothing, home goods, and more.

This particular Poole Beales branch was the last one standing when the company collapsed into administration in January 2020, leading to the closure of its 22 other stores.

Despite the stores resilience, the brutal budget introduced last year saw the hike of National Insurance which has forced countless shops to close.

To mark the occasions, the store’s Facebook page is advertising a “Rachel Reeves‘ Closing Down Sale,” featuring discounts of up to 80% and a caption cheekily thanking the Chancellor for “the help.”

It wrote in the caption: “Our closing sale is almost over (cheers for the help, Chancellor) – and we’ve just dropped hundreds of lines to 80% OFF or more!

“Grab a bargain before we vanish into the budget black hole. #FinalSale #80Off #LastChance #WhenItsGoneItsGone.”

Despite weathering the storm for the past five years, it seems the Chancellor’s latest Budget changes have delivered the final blow to the struggling chain.

Beales chief executive Tony Brown previously told The Telegraph the business had become “unviable” following the Chancellor’s announcement of increases to the minimum wage and national insurance contributions in the October Budget.

Announcing the closure, Mr Brown said: “This, combined with the risks and uncertainty of further tax increases in the coming years, has left us with no alternative.

“We have been working with the Dolphin Centre, who have been supportive, along with our investors to ensure an orderly exit.

“Our team has been informed, as have our suppliers.

“We will ensure the exit is managed and no one will be left with a financial loss.”

Shoppers were left heartbroken by the news of the store’s impending closure, with one commenting on the latest post: “I’ve loved shopping here over the years.”

Another wrote: “Sadly this is happening to many shops.”

Like many businesses, Beales now faces higher employer national insurance contributions, which have risen from 13.8% to 15%.

Additionally, the threshold at which these contributions must be paid has been lowered from £9,100 to £5,000.

These changes to the tax system were confirmed by the Chancellor in the Autumn Budget last October and came into effect on 1 April.

At the same time, the national minimum wage saw a notable increase, rising to £12.21 per hour. For workers aged 18-20, the minimum wage increased by £1.40 to £10 per hour.

Founded in 1881, Beales once boasted a proud portfolio of 41 department stores in market towns across the UK, offering everything from furniture and fashion to toys and cosmetics.

The retailer’s decline has been gradual but unrelenting.

Its Southport store was shuttered last September, just three years after the site had reopened.

With the closure of the Poole branch, the last remaining link to the Beales name, a once-iconic fixture of the British high street, will vanish forever.

DEATH OF THE HIGH STREET

Retailers have been feeling the squeeze since the pandemic, while shoppers are cutting back on spending due to the soaring cost of living crisis.

High energy costs and a move to shopping online after the pandemic are also taking a toll, and many high street shops have struggled to keep going.

However, additional costs have added further pain to an already struggling sector.

The British Retail Consortium has predicted that the Treasury’s hike to employer NICs from April will cost the retail sector £2.3billion.

At the same time, the minimum wage will rise to £12.21 an hour from April, and the minimum wage for people aged 18-20 will rise to £10 an hour, an increase of £1.40.

Experts have said small high street shops could face a particularly challenging 2025 because of Budget tax and wage changes.

Professor Bamfield has warned of a bleak outlook for 2025, predicting that as many as 202,000 jobs could be lost in the sector.

“By increasing both the costs of running stores and the costs on each consumer’s household it is highly likely that we will see retail job losses eclipse the height of the pandemic in 2020.”