Category: UK News

  • BERT BATTERS BRITAIN 

    BERT BATTERS BRITAIN 

    More than 300 flights were cancelled, and road closures included the M48 Severn Bridge in Gloucestershire, while a stretch of the A66 in North Yorkshire and Cumbria was closed to high-sided and vulnerable vehicles  

    Several people have been killed as Storm Bert battered the UK and a major incident has been declared in south Wales. At least five deaths have been reported in England and Wales since the storm hit. Strong winds have been accompanied by flooding caused by heavy rain and thawing snow. 

    Thousands of homes have been left without power and flights and train services have been delayed and cancelled because of the weather. 

    Keir Starmer thanked emergency services in a post on X and said he had spoken to the Welsh first minister, Eluned Morgan. “My thoughts are with those impacted,” the prime minister said. Morgan said it had been a “really difficult weekend” and that the flooding was “absolutely devastating” for those involved. 

    “It’s been a really difficult weekend and I’d like to thank the emergency services for all the support they’re giving to the people affected,” she said. 

    “I think this is the second time that many of those have suffered as a result of the storm. There’s been huge investments since the last storm hit, so we’ve managed to protect lots more properties than last time. But obviously this is absolutely devastating, just before Christmas for those people who have been impacted.” 

    A body was found in a search for 75-year-old Brian Perry on Sunday afternoon after he went missing in the River Conwy, north Wales a day earlier. Meanwhile, a man in his 60s died after a tree fell on a car on the A34 near Winchester, Hampshire police said. 

    A man in his 80s died in hospital after he was rescued from a car that had driven into a ford on Saturday afternoon. A woman in her 80s was also rescued from the car and taken to hospital. Her condition is not life-threatening, the force said. Two other fatal collisions happened while the storm took hold in England. 

    West Yorkshire police said a 34-year-old man died in a single-vehicle collision in the early hours of Saturday. It was unclear if the incident was related to Storm Bert but it is understood the road was not icy. 

    In Northamptonshire, a man in his 40s died in a crash on the A45 near Flore. It was not clear whether the incident was linked to the storm. In south Wales, Rhondda Cynon Taf county borough council declared an emergency as flood waters rose in towns across the region, including Pontypridd, Ebbw Vale and Aberdare. 

    The River Taff in Pontypridd topped its banks, flooding homes, while businesses in the town were forced to close. Residents resorted to bailing out their front yards with buckets, as firefighters attempted to pump the water from the street. 

    A Pontypridd council spokesperson said: “Throughout the evening the severity of the weather has resulted in widespread impact with over 100 properties potentially flooded, both commercial and residential.” 

    Chris Bryant, the Labour MP for Rhondda and Ogmore, said he had never seen the scale of flooding in the area. “The flooding across areas in the Rhondda and Ogmore is unprecedented,” he said. 

    Firefighters pumping water from Sion Street by the River Taff in Pontypridd, Wales. Storm Bert has brought 80% of November’s rainfall. As much as 64.4mm (2.53in) of rain fell in Capel Curig, north Wales, in 12 hours on Saturday and wind gusts of up to 82mph (132km/h) were recorded in the village. 

    Five adults and five children had to be rescued from a house in Llanarmon Dyffryn Ceiriog in north Wales after a landslide, North Wales fire and rescue service said. More than 200 flood alerts are in place for England, Wales and Scotland overnight on Sunday. Two severe flood warnings, the most serious, are in place for parts of Monmouthshire, south-east Wales. 

    Yellow warnings for rain in south Wales were due to be lifted on Sunday. A yellow wind warning for part of Scotland is in place until 10am on Monday. Met Office meteorologist Greg Dewhurst said Storm Bert would leave the UK over the next 24 hours. “It is an unsettled picture out there,” he said. “Heavy rain across central, southern parts of England and Wales, even where we see some dry interludes, river levels continue to rise and we could see further flooding in places.” 

    Temperatures will then drop towards the middle of the week, he added. Travel disruption continued into Sunday and the ferry operator DFDS cancelled services on some routes until Monday, including its Newhaven to Dieppe sailings. 

    More than 300 flights from UK airports were cancelled during Storm Bert, aviation analytics firm Cirium said. Road closures on Sunday included the M48 Severn Bridge in Gloucestershire, while a stretch of the A66 in North Yorkshire and Cumbria was closed to high-sided and vulnerable vehicles. 

    Rail operators cancelled services on some routes all day on Saturday and urged passengers to check their routes before making journeys. Great Western Railway, which runs trains between London Paddington and south-west England told passengers not to travel on long-distance journeys on Sunday. 

    Avanti West Coast advised passengers to only travel if necessary on Sunday evening, with speed restrictions put in place on part of the west coast main line between Rugby and Milton Keynes due to rainfall and flooding. Greater Anglia, which operates trains from London Liverpool Street to Stansted airport, cancelled 52 services on Sunday afternoon after fallen trees damaged overhead power wires. 

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  • UK Energy Price Cap To Increase By 1.2%

    UK Energy Price Cap To Increase By 1.2%

    For households paying by Direct Debit for dual fuel, the new cap equates to an annual rate of 1,738 pounds.

    The United Kingdom’s (UK) energy price cap is set to increase by 1.2 per cent from January to March 2025, the UK’s energy regulator announced on Friday.

    This adjustment is expected to add approximately 21 pounds (26 US dollars) annually, or 1.75 pounds monthly, to the average household energy bill, said the Office of Gas and Electricity Markets (Ofgem).

    For households paying by Direct Debit for dual fuel, the new cap equates to an annual rate of 1,738 pounds. This figure remains 10 per cent lower than the same period in 2024 and is 57.2 per cent below the peak recorded during the energy crisis in 2023, according to Ofgem.

    Introduced in January 2019, the energy price cap is reviewed periodically by Ofgem to strike a balance between allowing energy suppliers to recover efficient costs and shielding consumers from excessive charges.

    “While today’s change means the cap has remained relatively stable, we understand that the cost of energy remains a challenge for too many households,” said Tim Jarvis, director general of markets at Ofgem. He stressed the impact of global market volatility on energy prices and emphasized the importance of building a renewable, domestic energy system to reduce costs and enhance stability.

    Ed Miliband, UK Secretary of State for Energy Security and Net Zero, expressed concern about the impact of the cap increase on families struggling with the cost of living. “The rise in the energy price cap will cause concern for families… That is why the government will do all we can to help people. As long as Britain remains exposed to the rollercoaster of global fossil fuel markets, we will be vulnerable to energy price rises over which we have no control,” he said on the social media platform X.

    Miliband reiterated that advancing the UK’s clean energy agenda is the key to achieving cheaper and more secure power, highlighting the government’s focus on renewable energy as a long-term solution to mitigate price volatility and support households, Xinhua news agency reported.

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  • Londoan Tops The Charts Again  

    Londoan Tops The Charts Again  

    London has topped a definitive ranking of the World’s Best Cities 2025 released on Wednesday for the tenth year in a row, followed closely by New York and Paris…reports Asian Lite News

    London has topped a definitive ranking of the World’s Best Cities 2025 released on Wednesday for the tenth year in a row, followed closely by New York and Paris based on the criteria of perception and performance. 

    The annual rankings produced by Resonance Consultancy in partnership with Ipsos are an analysis of large urban regions around the world that are leading in aspects most important to attracting workforce, visitors, and businesses. 

    The 2025 report marks a first in incorporating perception-based data by surveying more than 22,000 people in 31 countries for the first time – the results of which also demonstrate that people all over the world still very much aspire to live, visit, and work in the world’s largest cities. 

    The World’s Best Cities ranking is drawn up on “livability”, or the physical sense of a city based on the quality of its natural and built environments; “lovability”, or the quality of life in terms of culture, dining and nightlife; and “prosperity”, or the human capital of a city and the support it receives to thrive. The goal is to create the most comprehensive and holistic approach to measuring and benchmarking both perception and performance of the cities. 

    “London continues to set the bar for what a truly great city should be,” said Laura Citron, CEO of London & Partners, the UK capital’s growth agency. 

    “Our iconic attractions, world-class financial sector, and fast-growing tech industry are proof of our city’s strength. But it’s the diversity of our people and ideas that drives the innovation, opportunities, and progress that shape our future. No city embodies this quite like London,” she said. 

    After London (UK), New York (US) and Paris (France), Tokyo (Japan), Singapore, Rome (Italy), Madrid (Spain), Barcelona (Spain), Berlin (Germany) and Sydney (Australia) complete the top 10. 

    While the United States is in the lead with 36 cities in the Top 100, Canada comes in a distant second with six cities and Cape Town and Rio de Janeiro make a mark as new entrants to the 2025 ranking. 

    “The phrase ‘perception is reality’ is often used when developing reputation management strategies for companies, but the same holds true for destinations. By merging the top-of-mind destinations where people tell us they want to live, work, and visit with the rigorous evaluation of place that Resonance has been conducting for nearly a decade, we have created a more comprehensive evaluation of cities and can better advise destinations on how to strengthen their reputation,” said Jason McGrath, Executive Vice President at Ipsos. 

    The overall World’s Best Cities rankings are determined by analysing public perception, combined with a wide range of factors that have demonstrated moderate to strong correlations with attracting prime age population (aged 25-44), visitor expenditure, and/or business formation. The key takeaway from the latest analysis is of the strength and resilience of some of the world’s large cities. 

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  • Climate finance talks hit roadblocks as COP29   

    Climate finance talks hit roadblocks as COP29   

    The draft left out a crucial sticking point: how much wealthy nations will pay poor countries. …reports Asian Lite News

    Countries of the world took turns rejecting a new but vague draft text released early Thursday which attempts to form the spine of any deal reached at United Nations climate talks on money for developing countries to transition to clean energy and adapt to climate change. 

    The draft left out a crucial sticking point: how much wealthy nations will pay poor countries. A key option for the lowest amount donors are willing to pay was just a placeholder “X.” Part of that is because rich nations have yet to make an offer in negotiations. 

    So the host Azerbaijan presidency managed to unite a fractured world on climate change, but only in their distaste for the plan. Negotiators at the talks — known as COP29 — in Baku are trying to close the gap between the $1.3 trillion the developing world says is needed in climate finance and the few hundred billion that negotiators say richer nations have been prepared to give. 

    No figure for climate cash leaves many disappointed 

    Independent experts say that at least $1 trillion is needed in finance to help transition away from planet-warming fossil fuels and toward clean energy like solar and wind, better adapt to the effects of climate change and pay for losses and damages caused by extreme weather. 

    Colombia’s environment minister Susana Mohamed said without a figure offered by developed nations, “we are negotiating on nothing.” 

    Panama’s Juan Carlos Monterrey Gomez said the “lack of commitment transparency feels like a slap in the face to the most vulnerable.” 

    “It is just utter disrespect to those countries that are bearing the brunt of this crisis,” he said. “Developed countries must stop playing games with our life and put a serious quantified financial proposal on the table.” 

    Gomez listed places where negotiators worked on the issue: South Africa, Germany, the Philippines, Egypt, Austria, Switzerland, Dubai, Colombia and a few times here in Baku, asking “For God’s sakes, what’s the next stop? Mars? Do we need to go to outer space to get a quantitative number from our developed countries to be able to start negotiating here?” 

    Esa Ainuu, from the small Pacific island of Niue also blasted the lack of a number in the draft deal. “For us in the Pacific, this is critical for us,” Ainuu said. “We can’t escape to the desert. We can’t escape somewhere else. This is reality for us. If finance is not bringing any positive, (then) why’re we coming to COP?” 

    Mohamed Adow, director of the think tank Power Shift Africa, also expressed disappointment at the lack of a figure. “We need a cheque but all we have right now is a blank piece of paper,” he said. 

    Iskander Erzini Vernoit, director of Moroccan climate think-tank Imal Initiative for Climate and Development, said he was “at a loss for words at how disappointed we are at this stage to have come this far without serious numbers on the table and serious engagement from the developed countries.” 

    Even United Nations Secretary-General Antonio Guterres said, “I don’t think you can go on and on and on without clarifying the key aspects of the negotiation.” 

    Lead negotiator Yalchin Rafiyev emphasized how balanced the plan was, but all sides kept saying it was anything but balanced and pointed time was running out. “We would like to correct the balance. It is completely tilted,” Pakistan delegate Romina Khurshid Alam said. 

    The European Union’s climate envoy Wopke Hoekstra called the draft “imbalanced, unworkable, and not acceptable.” And Xia Yingxian, a member of China delegation, also said the current draft text contains many “unsatisfied and unacceptable” parts. 

    In a statement, the COP29 Presidency stressed that the drafts “are not final.” “The COP29 Presidency’s door is always open, and we welcome any bridging proposals that the parties wish to present,” the Presidency said in a statement. It added that possible numbers for a finance goal will be in the next draft on Friday. 

    COP29 President Mukhtar Babayev convened the Qurultay — a traditional Azerbaijani meeting — where negotiators spoke to hear all sides and hammer out a compromise. He said that “after hearing all views, we will outline a way forward regarding future iterations.” 

    Other areas that are being negotiated include commitments to slash planet-warming fossil fuels and how to adapt to climate change. But they’ve seen little movement. 

    European nations and the United States criticized the package of proposals for not being strong enough in reiterating last year’s call for a transition away from fossil fuels. 

    “The current text offers no progress” on efforts to cut the world’s emissions of heat-trapping gases, said Germany delegation chief Jennifer Morgan. “This cannot and must not be our response to the suffering of millions of people around the world. We must do better.” 

    U.S. climate envoy John Podesta said he was surprised that “there is nothing that carries forward the … outcomes that we agreed on last year in Dubai.” The United States, the world’s biggest historic emitter of greenhouse gases, has played little role in the talks as it braces for another presidency under Donald Trump. 

    But members of the Beyond Oil and Gas Alliance such as Colombia, Ireland and Denmark, who are pushing for an end of fossil fuels, said the lack of wording on transitioning away from fossil fuels is not a deal killer for them. 

    Days earlier, the 20 largest economies met in Brazil and didn’t mention the call for transitioning away from fossil fuels. Guterres, who was at that meeting, said official language is one thing, but reality is another. 

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  • ‘Delaying routine care was least bad of awful options’ 

    ‘Delaying routine care was least bad of awful options’ 

    Former health secretary also pressed at Covid inquiry on the ‘slowness’ of the resumption of elective care…reports Asian Lite News

    The former health secretary Matt Hancock has said he “reluctantly” approved of the decision to pause non-urgent planned care during the pandemic. Ministers prioritised hospital capacity for Covid and emergency patients, and so paused elective (non-urgent) treatment from April 2020. 

    This led to growing waiting lists and meant thousands of people who needed care for non-Covid reasons had to wait or could not access treatment. Asked by the Covid inquiry counsel, Jacqueline Carey, on Thursday if he thought it was the right decision, Hancock said: “Well, obviously reluctantly, but you’re faced with a series of awful options – that was the least bad.” 

    The inquiry heard Hancock was urged to explore, with NHS England, if any elective work could be protected at the height of the crisis. When asked why he wanted to explore the issue, he said: “Because I recognised the impact, the negative impact, of taking that decision, and I wanted to make sure that it was mitigated as much as possible. 

    “It’s a classic case where the minister asks questions to ensure that people have considered these things properly. But the operational decisions are for NHS England.” 

    The former MP said that restarting non-urgent elective care during the pandemic “was a difficult balancing act, and I relied on the judgment of the chief executive of NHS England [Sir Simon Stevens]”. 

    Hancock was pressed on the “slowness” of the resumption of non-urgent care and shown a graph depicting how the UK fared much worse than Europe. This showed a 46% drop in the number of cases of people having a hip replacement, whereas the average across the EU was 14%. 

    Hancock said: “I spoke to Simon Stevens about it and you’ll have to ask him about the policy towards restarting because that was very clearly in his bailiwick. “You can see in the paperwork that I’m pushing on this subject. But the NHS was legally independent. I, in fact, ended that legal independence. Simon and I worked very closely together but some decisions were his and others were mine.” 

    Asked whether, in the event of a future pandemic, there needed to be a contingency plan for resuming preplanned care, he replied: “Well, I think yes, and actually that needs to be part of a broader change in the NHS, to try as much as possible to separate out urgent care and elective care into different settings. 

    “And I know that’s something that Simon Stevens believed very strongly and was working on even before we went into the pandemic, but that so called split between hot and cold sites is very effective and a much more normal arrangement in other European countries. So that may be part of the explanation here.” 

    Hancock insisted that the NHS was not “overwhelmed” and that it was “better to delay some non-urgent operations” to protect the health service and the patients themselves because, people were “more likely to catch Covid in a hospital than in almost any other setting”. 

    Earlier, Hancock told the inquiry that he “ruffled some feathers” protecting the NHS from political “interference” during the crisis and that he had been in a “battle” with other parts of government that wanted Covid measures to be relaxed. 

    Earlier, Hancock told the pandemic inquiry that in the initial stages of the crisis he was “petrified” that lockdowns would not be enough to stop the NHS “being completely overwhelmed”, as had happened in Italy. 

    He also rebutted claims that he wanted to decide “who should live and who should die”, if hospitals became overwhelmed by Covid patients during the pandemic. 

    In his witness statement to the inquiry last year, the former NHS England boss Lord Stevens said: “The secretary of state for health and social care took the position that in this situation he – rather than, say, the medical profession or the public – should ultimately decide who should live and who should die.” 

    Hancock said the concept of a tool to prioritise intensive care patients was first proposed in February 2020, but he had actually objected. “Simon Stevens said that I’d called for it and wanted to make the decisions myself, and that was inaccurate.” 

    He continued: “We had a discussion about it and I concluded then that we shouldn’t have such a tool. I felt strongly that if we tried to write a national tool, its local interpretation might end up being too legalistic or box ticking. What I wanted is the doctors to have the discretion to make the decisions as they see fit with the best way to save lives in the circumstances.” 

    Helga Pile, the head of health at Unison, said Hancock’s legacy was “how not to respond to a national crisis. He should hold his head in shame for deserting health and care staff in their hour of need.” 

    Safety kit was either unavailable or unfit for purpose, and care workers and those they looked after died, she added. “It’s time Matt Hancock took responsibility for the chaos caused and the lives lost while he was in charge.” 

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  • Reed vows to ensure farmers are paid fairly for produce 

    Reed vows to ensure farmers are paid fairly for produce 

    Thousands of farmers demonstrated in central London on Tuesday to protest against changes to agricultural property relief…reports Asian Lite News

    The environment secretary has promised to reform the food system to ensure farmers are paid fairly for the food they produce, after many filled the streets of Westminster to campaign against inheritance tax changes. 

    Speaking at the Country Land and Business Association (CLA) conference, Steve Reed said: “I heard the anguish of the countryside on the streets of London earlier this week. We may not agree over the inheritance tax changes, but this government is determined to listen to rural Britain and end its long decline.” 

    Reed added he was going to No 10 to tell Starmer about the gulf between the rural and urban communities, which he said needed to be bridged urgently. CLA figures show the rural economy is 16% less productive than the national average. 

    Thousands of farmers demonstrated in central London on Tuesday to protest against changes to agricultural property relief, which mean farms worth more than £1m that are passed on to the family when the owner dies will have to pay a 20% tax on the remainder of the value. 

    But many, including the president of the National Farmers’ Union, Tom Bradshaw, said this change was the “final straw” after decades of neglect. After many years of being squeezed by supermarkets to the point where farmers receive just 1p for every loaf of bread or block of cheese sold, and seeing their subsidies disappear after Brexit, farmers are desperate, he said. Incomes have plummeted as extreme weather hits yields, and now farmers also fear being unable to pass on a viable business to descendants. 

    To address this, Reed announced the government would consult on a new 25-year farming roadmap and said he would make changes to the supply chain to ensure farmers got a fair price for their produce. “I’m not prepared to let so many farmers keep working so hard for so little,” he said. 

    Of the roadmap, he added: “This will be the most forward-looking plan for farming in our country’s history, with a focus on making farming and food production more profitable in the decades to come.” 

    Reed said the plan would be about “supply chain fairness”, meaning farmers would be paid fairly by those to whom they sell produce. 

    Reed said: “Across the whole supply chain, the producers, the farmers, the growers, get relatively little of the money that a product is sold for. And if there’s ever a problem in the supply chain – let’s say a contract is agreed and then energy prices shoot up – it’s quite often the producer or the farmer that has to bear the cost of that, and sometimes they end up selling their produce below the cost of producing it, and that’s not sustainable.” 

    Speaking at the conference, the president of the CLA, Victoria Vyvyan, accused the government of “taxing us out of existence” and embroiling rural people in a “stupid row about numbers”. 

    She said she felt she had been “marginalised and condescended to, told to calm down” and that farmers were “fearful of losing everything that they’ve worked for, borrowed for and hoped for”. 

    Reed said he hopes his plan would regain the countryside’s confidence, adding: “This isn’t just about one thing. It is something much wider, and we have basically a proportion of rural Britain out on the streets of London telling us, telling politicians and politics, that they feel ignored, alienated and disrespected, and that’s what they want to change … I think it’s not just about a single tax issue. It’s much, much, much bigger than that.” 

    Farmers aged 80 and above could get tax breather 

    New inheritance tax rules for farmers could be changed to make it easier for those 80 and over to hand down their farm without it incurring the tax, in what would be a partial climbdown by the government after a bruising row with farmers and a huge protest march in Westminster on Tuesday. 

    The Treasury is understood to be assessing the impact of changes, including amending gifting rules for over-80s so they can pass on their farm to their family without having to live for seven years after making the gift. 

    Officials are also understood to be assessing the impact of changes announced in the budget in October on active small- and medium-sized farms compared with smallholdings. 

    Labour has come under attack after Rachel Reeves announced in her budget last month that farmers who have a business worth more than £1m could be subject to 20% inheritance tax (IHT). Labour government had previously promised that no changes would be made to agricultural property relief (APR), which granted farmers an exemption from inheritance tax. 

    Farmers met the Treasury on Thursday and proposed that older farmers should be exempt from gifting rules which, under the plans laid out last month, would mean that if they died less than seven years after handing the family farm down to their relatives, they would have to pay a tax that farmers say could wipe their business out. 

    Labour has tried to target the policy at wealthy investors buying land to avoid IHT, who have been blamed for driving up land prices. However, many farmers complain that while they may be asset rich, they are cash poor, because farm incomes have plummeted because of cost inflation, poor harvests and fierce competition among retailers. They say many farmers take home less than the minimum wage. 

    Many farmers also point out that they have not paid into a private pension as they intend to live in the farmhouse and take an income from the farm – which they cannot do if they gift it to their children. 

    Treasury sources said the impact of changing gifting rules for those aged 80 and over was being examined, but added that the impact was difficult to determine as data on the farming population has generally put all those over 65 into one bracket. 

    Tom Bradshaw, president of the National Farmers’ Union, said this change would not go far enough: “The average age of death in the UK is around 80, so they should bring it down to 73 to allow them to use the seven-year gifting rule. 

    “If they are looking at how they create an exemption for the elderly members of the industry then the exemption should come in seven years before the average age of death. I would prefer an exemption before April 2026, when the rules come in, so you can make the transfer and don’t have to survive the seven years, but we have far better options on the table if they come out for consultation. We could come up with a policy that would answer the questions but be far better for the industry.” 

    Farmers have also argued that non-farmers are being treated generously, as people who have a country home and a paddock can currently claim APR as their asset is worth under £1m whereas those with a middle-sized farm are caught by the new tax. 

    Treasury sources confirmed that the impact of changes on active small- and medium-sized farms compared with smallholdings was also being assessed. This is because under the current regime people who buy a countryside home and do hobby farming avoid paying inheritance tax on their estates but many productive small-and medium-sized farms will be subject to the tax, as farming on small pieces of land is often unviable and productive farms need expensive machinery to function, which will now be caught under the new inheritance tax regime. The inheritance tax threshold for households which do not qualify for APR is £325,000. 

    Inheritance tax is normally charged at 40%. Labour has said farms worth £3m could end up being exempt because married couples are able to claim £1m each tax-free as well as a family home worth up to £1m. 

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  • Govt borrowing in Oct tops forecasts at £17.4bn 

    Govt borrowing in Oct tops forecasts at £17.4bn 

    Debt interest payments push public finances deeper into the red in fresh blow to Rachel Reeves…reports Asian Lite News

    The government borrowed more than expected in October as debt interest payments pushed the public finances deeper into the red, piling pressure on Rachel Reeves as she attempts to grow the economy. 

    Borrowing rose to £17.4bn last month, the second highest October figure since monthly records began in 1993 and despite a rise in inheritance tax receipts. City economists had expected a smaller figure, of about £12.3bn for October, after the UK borrowed more than £16bn in September. 

    The Office for National Statistics (ONS) said public sector net borrowing was £1.6bn higher than the same month last year. 

    In a further blow to efforts by Reeves, the chancellor, to bolster the economy and bring down debt levels, the figures showed that monthly central government debt interest rose to £9.1bn – the highest October figure on record. 

    The cost of government borrowing on international markets has fallen since last month’s budget – the interest rate on 10-year bonds has fallen from 4.6% to 4.4% – but the large slice of debt payments linked to the retail prices index measure of inflation increased since September. 

    Reeves has loosened the Treasury’s budget rules to allow for more borrowing over the next five years. In her budget, she set out a real-terms increase in day-to-day spending on public services of 4.3% this year and 2.6% next year, before pencilling in a rise of 1.3% each year. 

    Alex Kerr, an economist at the consultancy Capital Economics, said the “disappointing” figures underlined the fiscal challenge that the chancellor faced. 

    He said while Reeves had downplayed the chances of further tax-raising measures, “if she wants to increase day-to-day spending in future years, she may need to raise taxes to pay for it”. 

    The ONS said an expected drop in tax receipts after two big cuts to national insurance contributions had failed to materialise. “However, with spending on public services, benefits and debt interest costs all up on last year, expenditure rose faster than revenue overall,” it said. 

    Darren Jones, the chief secretary to the Treasury, said: “Our new robust fiscal rules will deliver stability by getting debt down while prioritising investment to deliver growth.” 

    Matt Swannell, the chief economic adviser to the EY Item Club, said: “Despite the changes announced at the budget, fiscal policy will continue to tighten over the next few years. 

    “Moreover, the chancellor has left herself little [wriggle] room against her own fiscal rules and may need to implement more tax rises in future years if the tax take disappoints or spending proves higher. 

    “Indeed, if the rise in market interest rates since the budget is sustained, the government would already have less headroom against its fiscal targets.” 

    Separate figures from HMRC showed that tax receipts from estates in the UK rose to £5bn in the first seven months of the 2024-25 financial year – an 11% increase on the £4.6bn received in the same period in the previous year. 

    It means Reeves is on course for a fourth consecutive year of record annual inheritance tax (IHT) income. The rise follows a freeze on IHT thresholds dating from 2010, which was extended by Reeves for a further two years. 

    The chancellor has also reformed two important elements of the IHT scheme – agricultural property relief (APR) and business property relief (BPR) – to limit the extent of the benefit for farmers and business owners. Farmers gathered in Westminster this week to protest against the decision. 

    A long-running exemption for individual pension pots from IHT was also cancelled by Reeves in the budget, which is likely to raise the value of many estates above the basic threshold of £325,000. 

    Cuts to APR relief and BPR relief from next April and a restriction on the inclusion of pension pots from 2027 allowed the Treasury’s independent economic forecaster, the Office for Budget Responsibility, to estimate that receipts from IHT would hit £50bn over the next five years, up £8bn from its prediction in March. 

    The government borrowing costs have risen to their highest level this year as City investors bet Rachel Reeves’s budget would lead the Bank of England to adopt a more cautious approach to cutting interest rates. 

    The yield – in effect the interest rate – on benchmark 10-year UK government bonds rose by more than 0.15 percentage points to trade above 4.5% on Thursday, before falling back slightly, as financial markets reacted to Labour’s first budget in 14 years. 

    The pound also fell against the US dollar, while the FTSE 100 index lost ground amid a broader global sell-off, reflecting wider jitters over the prospect of the world’s most powerful central banks keeping interest rates higher for longer. 

    “The quiet optimism that appeared to be spreading during Rachel Reeves’s speech has evaporated and a higher risk premium has returned for UK debt,” said Susannah Streeter, head of money and markets at the investment service Hargreaves Lansdown. 

    “Bond yields are set to stay volatile, as institutions financing government borrowing keep a more suspicious eye trained on what the swollen investment budget will be spent on.” 

    In a historic budget to begin the task of repairing battered public services and rebooting economic growth, the chancellor announced a £70bn increase in spending on services and infrastructure, with more than half funded by higher taxes. 

    City analysts said Reeves had announced a more expansionary package than anticipated, including higher near-term borrowing, before hitting her newly revised fiscal rules within five years. 

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  • Anger after cost of King Charles’s coronation revealed 

    Anger after cost of King Charles’s coronation revealed 

    Official figures put price of event at £72m but anti-monarchy group Republic says real cost is likely much more…reports Asian Lite News

    The coronation of King Charles in May 2023 cost taxpayers at least £72m, official figures have revealed. 

    The cost of policing the ceremony was £21.7m, with a further £50.3m in costs racked up by the Department for Culture, Media and Sport. About 20 million people in Britain watched Charles crowned at Westminster Abbey on TV, substantially fewer than the 29 million Britons who had watched the funeral of Queen Elizabeth II in 2022. 

    The coronation ceremony was attended by dignitaries from around the world, and a star-studded concert took place at Windsor Castle the following night. 

    The annual report and accounts of DCMS, the lead department in Rishi Sunak’s government that worked with the royal household on the coronation, stated that the department “successfully delivered on the central weekend of His Majesty King Charles III’s coronation, enjoyed by many millions both in the UK and across the globe”. 

    It described the coronation as a “once-in-a-generation moment” that enabled the “entire country to come together in celebration”, as well as offering “a unique opportunity to celebrate and strengthen our national identity and showcase the UK to the world”. 

    Republic, which campaigns to replace the monarchy with an elected head of state and more democratic political system, described the coronation as an “obscene” waste of taxpayers’ money. 

    “I would be very surprised if £72m was the whole cost,” the Republic CEO, Graham Smith said. As well as the Home Office policing and DCMS costs included in the figures, he said the Ministry of Defence, Transport for London, fire brigades and local councils also incurred costs related to the coronation, with other estimates putting the totalspend at between £100m and £250m. 

    “But even that kind of money – £72m – is incredible,” Smith added. “It’s a huge amount of money to spend on one person’s parade when there was no obligation whatsoever in the constitution or in law to have a coronation, and when we were facing cuts to essential services. 

    “It was a parade that Charles insisted on at huge expense to the taxpayer, and this is on top of the huge inheritance tax bill he didn’t [have to] pay, on top of the £500m-a-year cost of the monarchy.” 

    Under a clause agreed in 1993 by the then prime minister, John Major, any inheritance passed “sovereign to sovereign” avoids the 40% levy applied to assets valued at more than £325,000. 

    Smith added: “It was an extravagance we simply didn’t have to have. It was completely unnecessary and a waste of money in the middle of a cost of living crisis in a country that is facing huge amounts of child poverty. When kids are unable to afford lunches at school, to spend over £70m on this parade is obscene.” 

    Demand to rescind honour awarded to king of Bahrain 

    Meanwhile, King Charles has been asked by exiles from Bahrain to rescind an honour he bestowed this week on the ruler of the Gulf kingdom. 

    Charles was told in a letter by the exiles: “It is personally difficult for us to view this honour as anything other than a betrayal of victims who have suffered at the hands of King Hamad and his brutal regime.” 

    Buckingham Palace had been accused of “burying” the news that Charles had bestowed the Honorary Knight Grand Cross of the Royal Victorian Order (GCVO) on King Hamad bin Isa al-Khalifa. 

    It was the Gulf state’s official news agency that announced on Tuesday that Charles had made the award, which was covered on the front pages of Bahrain’s newspapers. 

    However, Bahraini exiles in the UK and supporters have questioned why no mention was made of the award in Buckingham Palace’s own announcement that Charles had hosted Bahrain’s king at Windsor Castle. The awarding of the honour was announced by Buckingham Palace in a press release issued on Wednesday evening. 

    The Bahraini government has in effect silenced political opposition, banned independent media and subjected internal opponents to brutal treatment including torture and denial of medical care, according to Human Rights Watch. One of the signatories to the letter to Charles was Sayed Ahmed Alwadaei, who was granted refugee status in the UK in 2012 and described himself in it as a “victim of King Hamad’s regime” and a survivor of torture. 

    “We sincerely hope that the extent and gravity of our suffering is conveyed through this letter and provides sufficient reason for Your Majesty to urgently reconsider the decision and rescind the award to Bahrain’s king,” Charles was told in the letter. 

    Bahraini newspapers have covered the award prominently on their front pages, including with pictures of Charles and King Hamad. Alastair Long, the British ambassador to Bahrain, said in a post on Instagram that Charles held a dinner in honour of King Hamad’s silver jubilee and “appreciated that King Hamad’s rule has been guided by concern and care for his people”. 

    However, Brian Dooley, a senior adviser to the activist group Human Rights First, said: “It’s startling to see King Hamad being rewarded with social honours when his unelected government has been guilty of so many crimes, including the torture of human rights activists, for so many years. 

    “He is not a figurehead, he is in charge of – and responsible for – his government’s actions. Why any self-respecting country would want to associate with him is baffling.” The UK has deep trade and defence ties to Bahrain, which gained independence from Britain in 1971 and has served as a base for British naval operations. 

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  • Cooper to set out crackdown on antisocial behaviour 

    Cooper to set out crackdown on antisocial behaviour 

    As well as a prison sentence, courts could hand out unlimited fines and order those who flouted the rules to carry out unpaid work or abide by a curfew…reports Asian Lite News

    People who persistently demonstrate antisocial behaviour will face up to two years in jail under Labour’s Respect orders, the home secretary will say on Friday. 

    Yvette Cooper will also announce that police will be given new powers to immediately seize off-road bikes, e-scooters on pavements and street-racing cars as part of the clampdown. 

    The changes, which are meant to deal with rowdy youths, problem drinkers and unruly hooligans, might not be rolled out across the whole of England and Wales before 2026, Whitehall sources said. 

    They will be introduced in the crime and policing bill in the new year but will be piloted in a specific area before further implementation across other police forces. 

    As well as a prison sentence, courts could hand out unlimited fines and order those who flouted the rules to carry out unpaid work or abide by a curfew, the Home Office said. 

    “Respect orders will give police and councils the powers they need to crack down on repeated antisocial behaviour, keeping our communities safe and ensuring repeat offenders face the consequences of their actions,” Cooper will say. “These new powers alongside thousands more neighbourhood officers and PCSOs will help this government deliver on our mission to take back our streets.” 

    Under the orders, police and councils will be handed powers to ban persistent offenders from town centres or from drinking in public places such as high streets and parks, with officers able to arrest anyone breaching their order. 

    Perpetrators could also be told to take anger management courses or attend rehabilitation treatment for drug and alcohol problems to address the causes of their behaviour under the plans. Police would no longer have to issue warnings before seizing vehicles, allowing forces to impound vehicles without delay, the Home Office said. 

    Social landlords, Transport for London, Transport for Greater Manchester, the West Midlands combined authority, the Environment Agency, Natural Resources Wales and the NHS Counter Fraud Authority are among other public bodies allowed to apply for Respect orders. The move signals a return of rules similar to antisocial behaviour orders (Asbos), introduced under Tony Blair’s government, which were previously in force in England, Wales and Northern Ireland and are still used in Scotland. Asbos were criticised for being used to disproportionately criminalise people of colour. 

    They are an early step towards Keir Starmer’s mission statement to “halve serious violent crime and raise confidence in the police and criminal justice system to its highest levels in a decade”. 

    Last month a watchdog said police “must and can do better” in cracking down on antisocial behaviour. The inspector of constabulary, Lee Freeman, called for a “renewed focus” on staffing neighbourhood police teams, who are often the first to deal with such incidents. 

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  • Schools, colleges accused of failing to tackle racism 

    Schools, colleges accused of failing to tackle racism 

    A coalition of organisations representing young people’s voices has written to the prime minister, warning that “racism is holding all young people back”…reports Asian Lite News

    Schools and colleges are failing in their legal duty to prevent and address racism, say campaigners who are calling for the national curriculum in England to include an explicit anti-racism focus with Black history as a compulsory subject. 

    A coalition of organisations representing young people’s voices has written to the prime minister, warning that “racism is holding all young people back” and calling for urgent action to “address the impacts of this growing crisis”. 

    The letter says the government’s review of the national curriculum, which is due to report next year, offers an opportunity to explore ways “to embed diverse, anti-racist content to ensure young people receive a more well-rounded and inclusive education”. 

    It also warns that the existing legislative framework to support schools in adopting anti-racist practice is “insufficient” and calls for a meeting with Keir Starmer to discuss how to better support young people affected by racism. 

    The letter makes a number of recommendations, including that a whole-school approach to tackling racism be implemented. It says upcoming race equality legislation should require all schools to have an action plan for addressing race inequality. It calls on the Department for Education (DfE) to treat racism as a safeguarding issue and for anti-racism guidance to be published for all schools and colleges to ensure a consistent approach. 

    The letter says: “There is longstanding evidence of the harmful outcomes caused by bias and a lack of racially inclusive practice. We have seen far too many young people’s lives held back by their experiences of racism, which not only affects their health and wellbeing, but also limits their opportunities for a happy, fulfilling and successful life. 

    “Racism in schools not only harms the individuals who racist abuse is directed at, but negatively impacts the wider school community, undermining the sense of belonging and cohesion within the school environment.” 

    The organisations signed up to the letter include the Diana Award, Everyday Racism, the Centre for Mental Health, Not So Micro, the Black Curriculum, UK Youth and the African Caribbean Education Network. It also has the support of well-known figures including the singer Jade Thirlwall, the author Nels Abbey and the chemistry teacher and TikTok star Shabaz Says, who said: “As a teacher I’ve witnessed this first-hand so it’s incredibly important for change to happen.” 

    The letter highlights a 23% increase in the number of pupils (11,619) suspended for racist abuse in 2022-23 compared with 2021-22. It also flags school suspension rates, which are higher among students of Black Caribbean ethnicity (11.74) and those of mixed white and Black Caribbean ethnicity (13.62), compared with white British students (7.9). 

    It says 95% of respondents to the Black and British Survey last year said they believed the curriculum neglected Black lives and experiences, while fewer than 2% thought educational institutions took racism seriously and 41% said racism was the biggest barrier to young Black people’s educational attainment. 

    Naomi Evans, a teacher and the founder of Everyday Racism, said: “I have seen first-hand how racism affects our young people in schools and how teachers are not equipped to address it. Racism should be explicitly treated as a safeguarding issue, and teachers should be equipped to deal with it.” 

    A DfE spokesperson said: “Racism and discrimination have absolutely no place in our schools, nor in our society and that means making sure pupils can learn in a safe, calm classroom. We will always support our hard-working and dedicated teachers to make this happen. We have launched an independent curriculum and assessment review aimed at delivering a curriculum that reflects the issues and diversities of our society, ensuring all children and young people are represented.”

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