takeaways

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.

The Lakers (11-4) accomplished plenty without James during their first 14 games. Luka Doncic jump-started his most valuable player campaign and rose to the top of the NBA scoring leaderboard. Austin Reaves is averaging career highs nearly across the board. Some wondered how much the team would really benefit from James’ return when it started 10-4 already.

Then the Lakers scored a season-high 140 points, shot a season-best 59.5% from the field and locked down on defense to allow just 32 points in the first 21 minutes of the second half before the benches cleared.

“I can fit in with anybody,” James said. “I don’t even understand why that was a question.”

Doncic continued his scoring spree with 37 points and 10 assists, but with eight turnovers. Reaves had 26 points.

The Lakers lauded their early season chemistry, and coach JJ Redick praised his players for leading themselves through difficult times. He purposely restructured timeouts to give players time to discuss alone before the coaches would join them, hoping that the opportunities for player-to-player communication would prompt stronger team connection. Adding James’ voice to the conversation was an easy transition.

“Us as a young team, I’m glad we got hold of accountability before LeBron got out there,” Ayton said. “I’m glad we went through some tough games and a little of hardships and ups and downs and adversity. And it made us prepare for times like this where he says one thing and we get it done right away.”

The Jazz (5-9) knocked the Lakers back with guard Keyonte George making five threes in the first half and 23 points on nine for 15 shooting. Utah jumped out to a 11-point lead in the first half, but the Lakers tied it with 18.8 seconds left in the second quarter and went into halftime down by four, prepared to make a push.

“I think the word we were using as a coaching staff was our poise as a group,” Redick said. “Not overreacting, not pulling apart, problem solving, all that stuff, in real time. Just continuing to play. That, at times, was missing last year, and for us to get that on the first night [fully healthy] was really good.”

Eddie Murphy has solidly been established as Hollywood royalty after a decades-long career stretching from “Saturday Night Live” to “The Nutty Professor” to “Dreamgirls” and beyond.

A key hallmark of Murphy’s status is his voluminous gallery of offbeat characters — an impeccably attired prison convict, a clumsy professor, a wisecracking donkey, an elderly Jewish man and even an obese, abusive wife.

In Netflix’s “Being Eddie,” now streaming, Murphy lifts the veil on the persona he feels the closest to — Eddie Murphy.

Directed by Angus Wall (an executive producer of “The Greatest Night in Pop”), the documentary traces the meteoric rise and triumphs of Murphy, who seldom grants interviews and is fiercely private about his creative process and personal life.

With his trademark humor and probing insight, the entertainer offers candid perspective of his trajectory from a kid in New Jersey performing stand-up to joining “Saturday Night Live” right out of high school, his string of hit films (“48 Hrs.,” “Trading Places,” “Eddie Murphy Raw”) and his transition from foul-mouthed provocateur to family-friendly films.

Eddie Murphy, left, with his brothers Vernon Lynch and Charlie Murphy.

(Photo from Eddie Murphy / Netflix)

He also addresses some of his misfires (“Vampire in Brooklyn”), and throws more than a little shade at “Saturday Night Live” and the Academy Awards (“I haven’t gotten an Oscar, and I’ve done everything”).

The film is largely set at Murphy’s castle-like estate, where he’s seen hanging out with his 10 children and second wife, Paige Butcher. (“My legacy is my children, not what I did at work,” he says. “My kids are the center of my life. It’s all about them… If you put your family first, you will never make a bad decision.”) Jerry Seinfeld, Dave Chappelle, Chris Rock, Kevin Hart and Pete Davidson are among the numerous entertainers who comment on Murphy’s influence on popular culture.

The following are some of the more fascinating takeaways from “Being Eddie.”

US President Donald Trump has appeared on the CBS News programme 60 Minutes just months after he won a $16m settlement from the broadcaster for alleged “deceptive editing”.

In the interview with CBS host Norah O’Donnell, which was filmed last Friday at his Mar-a-Lago residence and aired on Sunday, Trump touched on several topics, including the ongoing government shutdown, his administration’s unprecedented crackdowns on undocumented migrants, the US’s decision to restart nuclear testing, and the trade war with China.

Trump, who regularly appears on Fox News, a right-wing media outlet, has an uneasy relationship with CBS, which is considered centrist.

In October 2020, the president walked out of a 60 Minutes interview in the lead-up to the 2020 election he lost, claiming that the host, Lesley Stahl, was “biased”.

Here are some key takeaways from the interview:

The interview took place one year to the day after Trump sued CBS

The president’s lawyers sued CBS owner Paramount in October 2024 for “mental anguish” over a pre-election interview with rival candidate Kamala Harris that Trump claimed had been deceptively edited to favour Democrats and thus affected his campaign.

CBS had aired two different versions of an answer Harris gave to a question on Israel’s war on Gaza, posed by host Bill Whitaker. One version aired on 60 Minutes while the other appeared on the programme Face the Nation.

Asked whether Israel’s prime minister, Benjamin Netanyahu, listened to US advice, Harris answered: “We are not going to stop pursuing what is necessary for the United States – to be clear about where we stand on the need for this war to end.”

In an alternative edit, featured in earlier pre-broadcast promotions, Harris had given a longer, more rambling response that did not sound as concise.

The network argued the answer was edited differently for the two shows due to time restrictions, but Trump’s team claimed CBS “distorted” its broadcasts and “helped” Harris, thereby affecting his campaign. Trump asked for an initial $10bn in damages before upping it to $20bn in February 2025.

Paramount, in July 2025, chose to settle with Trump’s team to the tune of $16m in the form of a donation to a planned Trump presidential library. That move angered journalist unions and rights groups, which argued it set a bad precedent for press freedom.

Paramount executives said the company would not apologise for the editing of its programmes, but had decided to settle to put the matter to rest.

The company was at the time trying to secure federal approval from Trump’s government for a proposed merger with Skydance, owned by Trump ally Larry Ellison. The Federal Communications Commission has since approved the merger that gives Ellison’s Skydance controlling rights.

On October 19, Trump’s son-in-law, Jared Kushner, and Steve Witkoff, US special envoy to the Middle East, were interviewed on 60 Minutes regarding the Israel-Gaza war.

He solved rare-earth metals issue with China

After meeting with Chinese President Xi Jinping in South Korea last Thursday, Trump praised his counterpart as a “strong man, a very powerful leader” and said their relationship was on an even keel despite the trade war. However, he blamed China for “ripping off” the US through its dominance of crucial rare earth materials.

Trump told 60 Minutes he had cut a favourable trade agreement with China and that “we got – no rare-earth threat. That’s gone, completely gone”, referring to Chinese export restrictions on critical rare-earth metals needed to manufacture a wide range of items including defence equipment, smartphones and electric vehicles.

However, Beijing actually only said it would delay introducing export controls for five rare-earth metals it announced in October, and did not mention restrictions on a further seven it announced in April this year. Those restrictions remain in place.

Xi ‘knows what will happen’ if China attacks Taiwan

Trump said President Xi did not say anything about whether Beijing planned to attack autonomous Taiwan.

However, he referred to past assurances from Xi, saying: “He [Xi] has openly said, and his people have openly said at meetings, ‘We would never do anything while President Trump is president’, because they know the consequences.”

Asked whether he would order US forces to action if China moved militarily on Taiwan, Trump demurred, saying: “You’ll find out if it happens, and he understands the answer to that … I can’t give away my secrets. The other side knows.”

There are mounting fears in the US that China could attack Taiwan. Washington’s stance of “strategic ambiguity” has always kept observers speculating about whether the US would defend Taiwan against Beijing. Ahead of the last elections, Trump said Taiwan should “pay” for protection.

He doesn’t know who the crypto boss he pardoned is

When asked why he pardoned cryptocurrency multibillionaire and Binance founder Changpeng Zhao last month, Trump said: “I don’t know who he is.”

The president said he had never met Zhao, but had been told he was the victim of a “witch hunt” by the administration of former US President Joe Biden.

Zhao pleaded guilty to enabling money laundering in connection with child sex abuse and “terrorism” on his crypto platform in 2023. He served four months in prison until September 2024, and stepped down as chief executive of Binance.

Binance has been linked to the Trump family’s cryptocurrency company World Liberty Financial, and many have questioned if the case is a conflict of interest.

In March 2025, World Liberty Financial launched its own dollar-pegged cryptocoin, USD1, on Binance’s blockchain and the company promoted it to its 275 million users. The coin was also supported by an investment fund in the United Arab Emirates, MGX Fund Management Limited, which used $2bn worth of the World Liberty stablecoin to buy a stake in Binance.

This part of the interview appeared in a full transcript of the 90-minute interview, but does not appear in either the 28-minute televised version or the 73-minute extended online video version. CBS said in a note on the YouTube version that it was “condensed for clarity”.

Other countries ‘are testing nuclear weapons’

Trump justified last week’s decision by his government to resume nuclear testing for the first time in 33 years, saying that other countries – besides North Korea – are already doing it.

“Russia’s testing, and China’s testing, but they don’t talk about it,” Trump said, also mentioning Pakistan. “You know, we’re an open society. We’re different. We talk about it. We have to talk about it, because otherwise you people are gonna report – they don’t have reporters that gonna be writing about it. We do.”

Russia, China, and Pakistan have not openly conducted tests in recent years. Analyst Georgia Cole of UK think tank Chatham House told Al Jazeera that “there is no indication” the three countries have resumed testing.

He’s not worried about Hamas disarming

The president claimed the US-negotiated ceasefire and peace plan between Israel and Hamas was “very solid” despite Israeli strikes killing 236 Gazans since the ceasefire went into effect. It is also unclear whether or when the Palestinian armed group, Hamas, has agreed it will disarm.

However, Trump said he was not worried about Hamas disarming as the US would force the armed group to do so. “Hamas could be taken out immediately if they don’t behave,” he said.

Venezuela’s Maduro’s ‘days are numbered’

Trump denied the US was going to war with Venezuela despite a US military build-up off the country’s coast and deadly air strikes targeting alleged drug-trafficking ships in the country’s waters. The United Nations has said the strikes are a violation of international law.

Responding to a question about whether the strikes were really about unseating Venezuela’s President Nicolas Maduro, Trump said they weren’t. However, when asked if Maduro’s days in office were numbered, the president answered: “I would say, yeah.”

US government shutdown is all the Democrats’ fault

Trump, a member of the Republican Party, blamed Democrats for what is now close to the longest government shutdown in US history, which has been ongoing since October 1.

Senators from the Democratic Party have refused to approve a new budget unless it extends expiring tax credits that make health insurance cheaper for millions of Americans and unless Trump reverses healthcare cuts made in his tax-and-spending bill, passed earlier this year.

The US president made it clear that he would not negotiate with Democrats, and did not give clear plans for ending the shutdown affecting 1.4 million governent employees.

US will become ‘third-world nation’ if tariffs disallowed

Referring to a US Supreme Court hearing brought by businesses arguing that the Trump government’s tariff war on other countries is illegal and has caused domestic inflation, Trump said the US “would go to hell” and be a “third world nation” if the court ordered tariffs to be removed.

He said the tariffs are necessary for “national security” and that they have increased respect from other countries for the US.

ICE raids ‘don’t go far enough’

Trump defended his government’s unprecedented Immigration and Customs Enforcement (ICE) raids and surveillance on people perceived to be undocumented migrants.

When asked if the raids had gone too far, he responded: “No. I think they haven’t gone far enough because we’ve been held back by the judges, by the liberal judges that were put in by [former US Presidents Joe] Biden and [Barack] Obama.”

Zohran Mamdani is a ‘communist’

Regarding the New York City mayoral race scheduled for November 4, Trump said he would not back democratic socialist Zohran Mamdani, and called him a “communist”. He said if Mamdani wins, it will be hard for him to “give a lot of money to New York”.