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Indonesia floods death toll rises to 442 as people hunt for food and water | Floods News

At least two areas of the country’s worst-affected Sumatra island are still unreachable, as authorities struggle to deliver aid.

The death toll from devastating floods and landslides in Indonesia has risen to 442, according to a tally published by the national disaster agency, as desperate people hunt for food and water.

The National Disaster Management Agency (BNPB) on Sunday said 402 others were still missing as authorities raced to reach parts of hardest-hit Sumatra island, where thousands of people were stranded without critical supplies.

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Another 402 people are missing in Indonesia’s three provinces of North Sumatra, West Sumatra and Aceh, according to the agency.

At least 600 people have died across Southeast Asia as heavy monsoon rains overwhelm swathes of Indonesia, Thailand and Malaysia. The deluges also triggered landslides, damaged roads, and downed communication lines.

People walk across mud and debris in a flood affected area in Meureudu, Pidie Jaya district in Indonesia's Aceh province on November 30, 2025.
People walk through mud and debris in Meureudu, in the Pidie Jaya district of Indonesia’s Aceh province [AFP]

The floods in Indonesia displaced thousands of people, with at least two cities on Sumatra island still unreachable on Sunday. Authorities said they deployed two warships from Jakarta to deliver aid.

“There are two cities that require full attention due to being isolated, namely Central Tapanuli and Sibolga,” BNPB head Suharyanto said in a statement.

The ships were expected in Sibolga on Monday, he said.

Desperate situation

The challenging weather conditions and the lack of heavy equipment also hampered rescue efforts.

Aid has been slow to reach the hardest-hit city of Sibolga and the Central Tapanuli district in North Sumatra.

Videos on social media show people scrambling past crumbling barricades, flooded roads and broken glass to get their hands on food, medicine and gas.

Some even waded through waist-deep floodwaters to reach damaged convenience stores.

The annual monsoon season, typically between June and September, often brings heavy rain, triggering landslides and flash floods.

A tropical storm has exacerbated conditions, and the flooding tolls in Indonesia and Thailand rank among the highest in those countries in recent years.

Climate change has affected storm patterns, including the duration and intensity of the season, leading to heavier rainfall, flash flooding and stronger wind gusts.

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Death toll rises to 146 as thousands pay their respects

Reuters People praying as they stand in front of flowers laid on the ground as tribute to the victims of the fireReuters

At least 146 people are now known to have died in the devastating fire that tore through high-rise buildings in Hong Kong on Wednesday.

Police announced the new death toll on Sunday, cautioning that they “cannot rule out the possibility of further fatalities”. There still 150 people missing, and the blaze left 79 injured.

Seven of eight tower blocks at the Wang Fuk Court housing complex in the northerly Tai Po district rapidly went up in flames. Accusations that the fire was helped by flammable building materials on the outside of the towers has sparked widespread anger.

Thousands have gathered at the scene on Sunday to mourn the victims, with queues stretching a long as 2km (1.2 miles).

The death toll has been rising since the fire began, as officials work to recover and identify bodies.

The exact cause of the blaze has yet to be determined. Eight people have been arrested on suspicion of corruption over the renovations that had been taking place on the towers, while three others were detained on manslaughter charges.

The fire – which spread quickly both upwards and between the blocks – was only fully doused by Friday morning, some 40 hours after it started, and took more than 2,000 firefighters to bring under control.

The same day, police began entering the buildings to gather evidence. Authorities say the investigation could take three to four weeks.

Police official Tsang Shuk-yin said on Sunday that officers had so far completed searches of four of the tower blocks.

Indonesia’s consulate in Hong Kong said at least seven of its nationals had died from the fire, while the Philippines’ consulate said one of its citizens had died.

Firefighter Ho Wai-ho, 37, has been identified as among those killed. He was found collapsed at the scene on Wednesday, about 30 minutes after contact with him was lost.

Map that labels China, Hong Kong and Tai Po's district where Wang Fuk Court is located

The fire department said the fire reached a peak temperature of 500C (932F). Twelve firefighters were injured battling the blaze.

The fire spread quickly across the separate blocks due to the presence of plastic netting and other flammable materials on the outside of the buildings, officials have said.

The tower blocks were also covered in bamboo scaffolding, which is commonly used for construction and renovation work in Hong Kong. The fire has sparked a debate about whether it should still be used.

Several residents have said they did not hear a fire alarm when the fire broke out. Hong Kong’s fire service found that fire alarms in all eight blocks were not working effectively.

The Independent Commission Against Corruption (ICAC) said that those arrested in the corruption probe included directors at an engineering company and scaffolding subcontractors.

A police spokesperson previously said they have reason to believe “those in charge at the company were grossly negligent”, which led to the fire and caused it to “spread uncontrollably”.

Hong Kong’s buildings department has temporarily suspended works on 30 private projects.

Police reportedly detained a 24-year-old man on suspicion of sedition on Saturday. He was part of a group petitioning for an independent probe into the fire.

Ching Sze Yip/BBC Hand-written tributes On pieces of white paperChing Sze Yip/BBC
Ching Sze Yip/BBC Hundreds of flower bouquets on the left. On the right are people who are queuing, some of whom are taking photosChing Sze Yip/BBC

Among the tributes added are handwritten messages for the victims of the fire

Hundreds of flower bouquets have been laid down as people queue to mourn and pay their respects

The fire – Hong Kong’s deadliest in more than 70 years – led the region’s authority to declare a three-day mourning period, which began on Saturday.

Officials observed a three minutes’ silence to mark the start of the period, while the flags of China and Hong Kong were flown at half-mast.

Thousands of people have been visiting the scene to lay down flowers and pray, as well as offer handwritten messages for victims.

Indonesian worker Romlah Rosidah said she was “very surprised” with how many people turned up to pray for the victims.

“This event was only spread on social media, but [it] turned out their hearts moved,” she told news agency Reuters.

One Filipino worker said they joined the prayers in solidarity, as well as “to show the Hong Kong community that we are one in this situation”.

Wang Fuk Court was built in 1983 and had provided 1,984 apartments for some 4,600 residents, according to a 2021 government census.

Nearly 40% of its residents are estimated to be at least 65 years old. Some have lived in the subsidised housing estate since it was built.

Hong Kong’s second-deadliest fire on record killed 176 people in 1948 and was caused by a ground-floor explosion at a five-storey warehouse. The most deadly was at Happy Valley Racecourse in 1918, when more than 600 people died.

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Sri Lanka landslides, floods death toll rises to 56, offices, schools shut | News

The government announces the closing of all government offices and schools as weather conditions grow worse.

Sri Lanka has closed government offices and schools as the death toll from floods and landslides across the country has risen to 56, with more than 600 houses damaged, according to officials.

Sri Lanka began grappling with severe weather last week, and the conditions worsened on Thursday with heavy downpours that flooded homes, fields and roads, and triggered landslides across the country.

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More than 25 people were killed on Thursday in landslides in the central mountainous tea-growing regions of Badulla and Nuwara Eliya, which is about 300km (186 miles) east of the capital, Colombo.

Another 21 people were missing and 14 were injured in the Badulla and Nuwara Eliya areas, according to the government’s disaster management centre, quoted by The Associated Press news agency.

Others died in landslides in different parts of the country.

Daily life heavily impacted

As the weather conditions grew worse, the government announced the closing of all government offices and schools on Friday.

Due to heavy rains, most reservoirs and rivers have overflowed, blocking roads. Authorities stopped passenger trains and closed roads in many parts of the country after rocks, mud and trees fell on roads and railway tracks, which were also flooded in some areas.

Local television showed an air force helicopter rescuing three people stranded on the roof of a house surrounded by floods on Thursday, while the navy and police used boats to transport residents.

Footage on Thursday also showed a car being swept away by floodwaters near the eastern town of Ampara, leaving three passengers dead.

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Budget: Horse racing spared from betting tax rises

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.

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Crenshaw rises again in football but without coach Robert Garrett

The official head coach for Crenshaw High’s football team remains Robert Garrett even though he’s been barred from attending games on Los Angeles Unified School District property since Aug. 21, when he was placed on administrative leave.

His long-time assistant and Crenshaw grad, Terrence Whitehead, took over as interim coach the week before the opening game. He and assistants trained by Garrett since they were adolescents have the Cougars at 10-1 and playing for the City Section Open Division title against top-seeded Carson at 6 p.m. Saturday at L.A. Southwest College.

“I think he’s doing an outstanding job from where he’s been put,” Garrett said.

Garrett said it’s no surprise what Crenshaw has accomplished with 14 of 18 players returning from a team last season that lost by a single point in the opening round of the Division I playoffs to No. 1-seeded Eagle Rock. Add standout linebacker De’Andre Kirkpatrick to that group along with others and you have Crenshaw seeking its seventh City title.

“My thoughts are you win ballgames from January through July when you meet daily and go over fundamentals, skills and get bigger, stronger and faster. You win it in the weight room,” Garrett said.

Garrett said he has spoken to Whitehead weekly and seen games that were streamed. But he has no intention of attending Saturday’s game.

Robert Garrett, head coach of the Crenshaw High School varsity football team, is photographed.

Crenshaw coach Robert Garrett has been on administrative leave since August.

(Mel Melcon/Los Angeles Times)

“I’ll be sitting in front of a TV watching USC versus UCLA,” he said.

Garrett praised Kirkpatrick, a transfer from eight-man power Animo Robinson who he met last spring and summer.

“He’s by far a Division I player,” he said of the 6-foot-3, 225-pound junior. “You can’t coach size. He has good attitude. Doesn’t cuss, doesn’t fuss and doesn’t hang out. It doesn’t come from me or anyone coaching him. All we can do is motivate him and encourage him to do better.”

To say Garrett is fed up with LAUSD is an understatement. There has been no celebration of the greatest achievement by a football coach in City Section history. Crenshaw’s 10 wins give him 300 career victories since 1988, which puts him in Hall of Fame territory.

“I’m going to coach somewhere, somehow,” he said. “I was born to coach. I’m a helluva coach. Nobody gave me that and nobody can take it away.”

Garrett said he has never been told what is being investigated the last four months.

“I’m going to coach again. I’m going to get out of the house real soon because I’m an American citizen,” he said.

He continues to receive full pay while staying home and waiting to be cleared. Once LAUSD starts an investigation, it can last more than a year. Former Huntington Park basketball coach Joe Reed returned this year after 14 months on administrative leave after a parental complaint.

“I haven’t been told anything,” Garrett said. “All I’ve been told is we’re investigating. It doesn’t matter what happens because whatever they tell me what they are investigating, they will find no wrongdoing whatsoever.”

Garrett is writing a book. He said he was the first from his Jefferson High graduating class of 1977 to earn a college degree. His mother was one of 18 siblings and each one had six or more kids. He graduated from Nebraska’s Concordia University in 1981 with a focus on teaching and has a Lutheran teaching certificate. He could be a pastor if he wanted to.

“I’m not a coach, I’m an educator,” he said. “I’m the first in my family to get a college degree. You don’t know what I’ve been through and what I’ve seen.”

He offered words of wisdom for Thanksgiving: “Always do thy duty, which is best, leave unto the Lord the rest.”

You’ve heard the line, “Win one for the Gipper.” Now it’s, “Win one for The G Man.”

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Rockefeller’s Visibility Rises as ’92 Hopeful

Sen. John D. (Jay) Rockefeller IV (D-W. V.) traveled only 596 miles when he flew here from Miami last weekend seeking support for a possible presidential campaign. But it felt as though he had crossed the border between different countries.

On Saturday morning, Rockefeller toured a Miami shelter for abused and severely ill infants whose hopes were stunted before birth by mothers who used cocaine or could not afford medical care. By Saturday night he was raising money in the comfortable suburban home of an Atlanta attorney, a place of elegant antiques and long green lawns where anything seemed possible.

Candidates often veer between the extremes of society as they search alternately for exposure and money. But the contrast seems especially appropriate for Rockefeller–a politician who is defining himself on the national stage as an advocate for threatened children, yet who is indelibly stamped with the imprimatur of privilege.

Both elements of that combination are raising Rockefeller’s visibility in the nascent Democratic presidential race. Over the past month, he has received enormous publicity as chairman of the National Commission on Children, a federal panel whose late June report recommended a new $1,000 tax credit for every child, and the expansion of educational and health care programs for disadvantaged children.

But he may be attracting even more notice from activists intrigued with the prospect of a Democratic presidential bid from a man whose name is synonymous with wealth and more typically associated with the moderate Republicanism of his late uncle Nelson A. Rockefeller, the former governor of New York.

“Because of his name he does carry some star quality with him and that is helpful in the initial stages,” says one Democrat close to another potential candidate. “Whether he can sustain that is another question.”

Rockefeller, who is just entering his second term in the Senate after serving eight years as West Virginia’s governor, says he is still about three weeks away from a final decision on whether to seek the nomination. The key remaining concern, he says, is the disruption a race would cause for his family, particularly his wife, Sharon Percy Rockefeller, who is now president of the public television station in Washington, D.C.

“If you talk publicly about families and children, then you have to act responsibly privately in terms of families and children,” he says.

Despite those hesitations, Rockefeller, 54, is behaving like a man drawn toward the track. He has started raising money in several states–while holding open the possibility of using his personal fortune to finance a race–and has discussed the rigors of campaigning with Gary Hart, Walter F. Mondale and Jimmy Carter.

Last weekend, Rockefeller visited Florida, Georgia, Louisiana and Texas–part of an extended tour that will take him to 17 cities this month promoting both his presidential prospects and the children’s commission recommendations. “I see no reason for anything but encouragement,” Rockefeller says of his reception so far.

Even so, Rockefeller still seems more accomplished selling the commission than himself. At the Jackson Hospital Infant/Toddler Shelter Center in Miami, for example, Rockefeller lifted a tiny premature baby to his shoulder and gently stroked the child’s back as he asked a doctor precise questions about the infant’s care. In New Orleans, he let a family lead him away from his tour to visit their disabled daughter who was recovering from a spinal operation. “God bless you both for your perseverance,” he said quietly as he left the bedside.

In his private meetings with political leaders and fund raisers across the South last weekend, Rockefeller was just as earnest and personable, but less focused. He introduced himself and talked about economics, children’s issues, health care and his case against President Bush, though without anything resembling a clear progression from subject to subject.

“This guy needs work,” said one prominent Democrat who has seen Rockefeller in several private meetings. “In some ways he projects well; in other ways, like getting bogged down in details, he loses it.”

Many of the potential contenders for the Democratic presidential nomination are already organizing their message around a central core. Former Massachusetts Sen. Paul E. Tsongas, the only announced candidate, is calling on the party to work more closely with business; Iowa Sen. Tom Harkin is delivering venerable Midwestern populism at a paint-peeling pitch; Arkansas Gov. Bill Clinton is championing a drive to “reinvent government” with new approaches to social problems.

For Rockefeller, who left a State Department job to become a VISTA volunteer in West Virginia during the 1960s, the closest analogy appears to be a general call for the nation to pay more attention to domestic problems. His message is an unusual mosaic of ideas both liberal and conservative, old and new, assembled in a pattern that doesn’t always meet at right angles.

Rockefeller touches strong liberal notes, insisting that even costly programs to rescue disadvantaged children are essential to the nation’s future economic health. “The loss of productivity when kids don’t get training and education is a devastating price for America to pay . . . every kid has to be fought over,” he argues.

But Rockefeller also is comfortable with ideas that unsettle many liberals: He heartily endorses policies that demand greater personal responsibility from recipients of government aid, and repeatedly insists that the Democratic nominee must be able to say no to the leading party constituency groups. The fact that the children’s commission’s principal proposal for helping families was a large tax cut, rather than a new federal program, also represents a significant departure from recent Democratic tradition.

Rockefeller further spices this blend with an assertive economic nationalism that calls for tougher negotiations with European and Asian trading partners. “I think we are in a very serious, somewhat desperate struggle for national economic survival,” he says.

To some Democrats, the most surprising aspect of Rockefeller’s appearances over the past month is the fervor with which he criticizes President Bush. Despite what now appear long odds for any Democrat, Rockefeller seems genuinely eager to take on Bush–a man Rockefeller portrays as betraying a background not unlike his own with “cynical” political attacks on such issues as racial quotas.

“Whatever there was in what was a basically progressive Republican Teddy Roosevelt upbringing went down the tubes when he signed on with Ronald Reagan,” Rockefeller says. “Part of my disappointment in him is he simply ought to know better.”

As for his own gilded pedigree, Rockefeller says he doesn’t foresee it causing any difficulties if he decides to run–though it may take some time for Democrats to get used to the great-grandson of the founder of Standard Oil declaring “it’s time to stop worrying about the wealthy and well-connected.”

“I honestly don’t know if it would be a problem or not,” says Geoff Garin, who has done public polling for Rockefeller. “But remember, this is the party that is proudest of Franklin Roosevelt and John Kennedy (both from wealthy families), so a Rockefeller would be more in character than out of it.”

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US adds Venezuelan ‘cartel’ to terror list as military threat rises | News

Move offers potential cover as Trump eyes expanded operations against Venezuela’s Maduro.

The United States is set to designating Venezuela’s “Cartel de los Soles” a foreign “terrorist” organisation (FTO).

President Donald Trump’s administration will add the “cartel”, which it asserts is linked to Venezuelan President Nicolas Maduro, to the list on Monday.

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However, the entity is not actually a cartel, but rather a common reference to military officers and officials involved in corruption and other illegal activities.

The move, which comes amid a huge military buildup in the Caribbean Sea near Venezuela by the US, could offer legal cover to potential direct military action.

Trump is reportedly mulling the next step in his campaign against the South American country. A strike on Venezuelan territory would constitute a major escalation of the months-long US operation in the region, which has seen more than 80 people killed in strikes on boats accused of trafficking drugs.

UN officials and scholars of international law have said that the strikes are in clear violation of US and international law and amount to extrajudicial executions.

Washington is poised to launch a new phase of operations in the coming days, unnamed US officials told the Reuters news agency.

The report said the exact timing and scope of the new operations, and whether Trump had made a final decision to act, was unclear.

A senior administration official said they would not rule anything out regarding Venezuela.

Two of the officials said covert operations would likely be the first part of a new action against Maduro, with options under consideration including an attempt to overthrow the longstanding Venezuelan leader.

Cartel de los Soles

Venezuelans began using the term Cartel de los Soles in the 1990s to refer to high-ranking military officers who had grown rich from drug-running.

As corruption later expanded nationwide, first under the late President Hugo Chavez and then Maduro, the use of the term loosely expanded to include police and government officials, as well as activities like illegal mining and fuel trafficking.

The “suns” in the name refer to the epaulettes affixed to the uniforms of high-ranking military officers.

The umbrella term was elevated to a reported drug-trafficking organisation allegedly led by Maduro in 2020, when the US Department of Justice in Trump’s first term announced the indictment of Venezuela’s leader and his inner circle on narcoterrorism and other charges.

Maduro, in power since 2013, contends that Trump seeks to topple him and that Venezuelan citizens and the military will resist any such attempt.

However, the US campaign and the fears of potential military action continue to raise the pressure on Caracas.

Six airlines cancelled their routes to Venezuela on Saturday after the US aviation regulator warned of dangers from “heightened military activity”.

Spain’s Iberia, Portugal’s TAP, Chile’s LATAM, Colombia’s Avianca and Brazil’s GOL suspended their flights to the country, said Marisela de Loaiza, president of the Venezuelan Airlines Association (ALAV).

Turkish Airlines said on Sunday it was also cancelling flights from November 24 to 28.

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US economy adds 119,000 jobs in September as unemployment rate rises | Business and Economy News

United States job growth accelerated in September despite a cooling job market as the unemployment rate rose.

Nonfarm payrolls grew by 119,000 jobs after a downwardly revised 4,000 drop in August, according to the Bureau of Labor Statistics (BLS) report released on Thursday.

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The unemployment rate rose to 4.4 percent, up from 4.3 percent in August.

The healthcare sector had the most gains, totalling 43,000 jobs in September. Food and beverage services sectors followed, adding 37,000 jobs, and social assistance employment grew by 14,000.

Other sectors saw little change, including construction, wholesale trade, retail services, as well as professional and business services.

The federal workforce saw a decline of 3,000, marking 97,000 jobs cut from the nation’s largest employer since the beginning of the year. Transportation and warehousing, an industry hit hard by tariffs, also saw declines and shed 25,000 jobs in September.

Average wages grew by 0.2 percent, or 9 cents, to $36.67.

Government shutdown hurdles

The September jobs report was initially slated for release on October 3, but was pushed out because of the US government shutdown. The jobs report typically comes out on the first Friday of each month. Because of the 43-day-long shutdown, the US Labor Department was unable to collect the data needed to calculate the unemployment rate for the month of October.

Nonfarm payrolls for the month of October will be released as part of the November employment report, which is slated to be released on December 16.

Heading into the economic data blackout, the BLS had estimated that about 911,000 fewer jobs were created in the 12 months through March than previously reported. A drop in the number of migrant workers coming into the US in search of work – a trend which started during the final year of former US President Joe Biden’s term and accelerated under President Donald Trump’s administration – has depleted labour supply.

“Today’s delayed report shows troubling signs below the topline number: the underlying labour market remains weak, leaving working Americans with shrinking opportunities and rising insecurity. Month after month, the Trump economy is producing fewer jobs, more instability, and fewer pathways for families trying to get ahead,” Alex Jacquez, chief of policy for the economic think tank the Groundwork Collaborative, said in a statement provided to Al Jazeera.

Economists estimate the economy now only needs to create between 30,000 and 50,000 jobs per month to keep up with growth in the working-age population, down from about 150,000 in 2024.

Behind the stalling growth

The rising popularity of artificial intelligence is also eroding demand for labour, with most of the hits landing on entry-level positions in white collar jobs, and locking recent college graduates out of work. Economists said AI was fueling jobless economic growth.

Others blamed the Trump administration’s trade policy for creating an uncertain economic environment that had hamstrung the ability of businesses, especially small enterprises, to hire.

The US Supreme Court earlier this month heard arguments about the legality of Trump’s import duties, with justices raising doubts about his authority to impose tariffs under the 1977 International Emergency Economic Powers Act.

Despite payrolls remaining positive, some sectors and industries are shedding jobs. Some economists believed the September employment report could still influence the Federal Reserve’s December 9-10 policy meeting on interest rate decisions.

US central bank officials will not have November’s report in hand at that meeting, as the release date has been pushed to December 16 from December 5. Minutes of the Fed’s October 28-29 meeting published on Wednesday showed many policymakers cautioned that lowering borrowing costs further could risk undermining the fight to quell inflation.

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British Chancellor Rachel Reeves signals that tax rises are coming

British Chancellor of the Exchequer Rachel Reeves delivers a rare pre-budget speech Tuesday at her official residence at No. 9 Downing Street, London, in which she suggested tax hikes were unavoidable. Photo by Andy Rain/Pool/EPA

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.

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