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Labour MPs call on Rachel Reeves to scrap council tax

about 15 hours ago
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More than a dozen Labour MPs have written to Rachel Reeves calling on her to scrap council tax, as the chancellor faces mounting pressure to overhaul Great Britain’s property taxes in next month’s budget.Thirteen MPs, mainly from seats in northern England, wrote to Reeves last month asking her to abolish the tax and replace it with another system that better accounts for the steep rise in house prices in London and the south-east over the last 35 years.The chancellor is looking for ways to close what could be a £30bn shortfall in the public finances, with experts warning that doing so could require a shake-up of the entire tax system.The Labour MPs wrote: “If we are to succeed in our mission to transform Britain and fight back against Reform, we must be bold and embrace new ideas that put more money back into the pockets of working people.“One place we can start is by looking at ways we can abolish the outdated, deeply regressive, and increasingly indefensible council tax system.

“Created in the early 1990s and still based on property valuations from 1991, it bears little resemblance to the realities of today’s housing market.The result is a system that punishes communities like ours in the nations and regions outside London and the south-east.”Reeves is facing a painful second budget as chancellor partly as a result of an expected decision by the Office for Budget Responsibility to downgrade its expectations of UK productivity.Reeves needs to find between £20bn and £30bn as a result of the OBR changes, but is also under pressure to increase the amount of headroom she has against her fiscal rules to give the markets more certainty about future borrowing.Labour ruled out raising income tax, VAT or national insurance in its 2024 manifesto – commitments that ministers say Reeves intends to keep at this budget, despite her decision to raise national insurance last year.

As a result, some experts are urging the chancellor to make bold tax reforms rather than tinkering with multiple different revenue streams in an attempt to mitigate the political fallout.Researchers at the Institute for Fiscal Studies on Monday urged Reeves to put property tax changes at the top of her list of priorities, including scrapping stamp duty and overhauling council tax.The Guardian revealed earlier this year that the chancellor was considering introducing a new annual property tax based on the value of residents’ houses at the time of purchase as a step towards overhauling stamp duty and council tax.The Labour MPs calling for the abolition of council tax do not say how it should be replaced, but are clear that any new system should better take account of property valuations in London and the south-east.They include members from the left and right of the party.

Jonathan Brash, Jonathan Hinder and Dan Carden from the socially conservative Blue Labour group all signed the letter, as did Andy McDonald and Jon Trickett from the socialist left of the party.England and Scotland have not revalued their properties for tax purposes since 1991, while Wales last did so in 2003.Since then, property prices in south-east England have gone up by at least six times, while those in the north-east have only risen by about three times.The MPs wrote: “Families in modest homes in our constituencies pay far more, relative to the value of their property, than those in multimillion-pound houses in London and the south-east.“Council tax and stamp duty land tax were designed decades ago and have long since ceased to reflect economic reality.

The result is a deeply unfair, inefficient, and outdated system that widens inequality and holds Britain back,”They added: “Only by confronting [the council tax’s] outdated design head-on can we begin the process of delivering a fairer, more sustainable system that works for every part of the country,”A Treasury spokesperson said: “The chancellor has been clear that at the budget she will strike the right balance between making sure that we have enough money to fund our public services, whilst also ensuring that we can bring growth and investment to boost living standards,”
societySee all
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Dementia risk for people who quit smoking in middle age ‘same as someone who never smoked’

People who stop smoking in middle age can reduce their cognitive decline so dramatically that within 10 years their chances of developing dementia are the same as someone who has never smoked, research has found.Kicking the habit halves the rate of decline in verbal fluency and slows the loss of memory by 20%, according to a study of 9,436 people in England, the US and 10 other European countries.The findings add to a growing body of evidence that quitting smoking can slow the rate of mental deterioration that ageing brings and thus help prevent the onset of dementia.“Our study suggests that quitting smoking may help people to maintain better cognitive health over the long term even when we are in our 50s or older when we quit”, said Dr Mikaela Bloomberg of University College London, the lead researcher.“We already know that quitting smoking, even later in life, is often followed by improvements in physical health and wellbeing

about 22 hours ago
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Education cuts in prisons ultimately endanger the public, watchdog says

Cuts to education in prisons are derailing offenders’ work and training and ultimately endangering the public, the prisons watchdog has warned.Repeat offenders “cause mayhem” in their communities because of the failure of prisons to provide education, training and work that could help to break the cycle of offending, the chief inspector of prisons, Charlie Taylor, said.A thematic report from the inspectorate said “this already unacceptable situation” was only likely to get worse as real-terms cuts began to “eat into already stretched education provision”.The Guardian disclosed last month that prisons were cutting frontline spending on education by up to 50%, despite promises from Keir Starmer to improve “access to learning” in last year’s general election manifesto.The spending cuts are being introduced as the government rolls out new education contracts across prisons in England and Wales

1 day ago
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Woman, 53, becomes UK’s longest survivor of heart and lung transplant

At the age of 15, Katie Mitchell was told by medics that she was nearing the end of her life after suffering irreversible lung damage and heart failure from a rare congenital disease.But she defied the odds thanks to a heart and lung transplant, and at the age of 53 she has become the UK’s longest-surviving recipient of such a procedure.Mitchell was diagnosed with Eisenmenger syndrome when she was 11. She had high blood pressure in her pulmonary arteries, which caused an increased resistance to blood flow through the lungs, which led to irreversible lung damage and heart failure.Mitchell had her combined transplant at Royal Papworth hospital in September 1987, a procedure so rare that only about five are carried out in the UK each year

2 days ago
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Two years after school phone bans were implemented in Australia, what has changed?

Phone bans are now well-established in many Australian primary and secondary schools. Have they made a difference?Get our breaking news email, free app or daily news podcastWhen Australian Christian College, a high school in the Melbourne outer suburb of Casey, implemented a phone ban on its campus, there were multiple reasons for the crackdown. Peer conflicts between students were escalating online, students were struggling to focus and teachers observed “notification-driven code-switching” in their students.“When a phone is within reach, a student’s mind is only ever half in the room,” the school’s principal, Caleb Peterson, says. “We wanted their whole attention back

2 days ago
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Georgia’s story: how a domestic abuse victim’s suicide was ruled an unlawful killing by her partner

On 26 April 2020 Georgia Barter, a long-term victim of domestic abuse, died in hospital after taking a fatal overdose of painkillers. Last week, in an extraordinary verdict, a coroner ruled that Georgia, 32, was unlawfully killed by her abusive partner.A court heard how GPs, nurses and police officers all had chances to intervene in Thomas Bignell’s violent campaign against Georgia, but failed to do so.At the conclusion of the hearing, there were gasps in the courtroom. It is believed to be only the second time in English legal history that a coroner has reached such a conclusion in the case of a suicide following domestic abuse, and the first time without a jury

3 days ago
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Revealed: Labour-run council using legal loophole to serve families with no-fault evictions

A Labour-run council is using a legal loophole to issue dozens of families with no-fault evictions, despite Keir Starmer’s manifesto pledge to outlaw the practice.Scrapping no-fault evictions “immediately” was one of Labour’s main manifesto pledges before its 2024 election win, but more than a year on, the party’s flagship renters’ rights bill has not been made law.Local authorities cannot normally carry out no-fault evictions – known officially as section 21 evictions – as they apply to tenancies issued by private landlords.However, Lambeth council in south London has been able to start eviction proceedings against 63 households because it created an arm’s-length body to manage some of its housing stock.Five families have already been issued with possession orders via the courts and two of those have had their homes repossessed by bailiffs

3 days ago
technologySee all
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Cyber-attacks rise by 50% in past year, UK security agency says

about 22 hours ago
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Equity threatens mass direct action over use of actors’ images in AI content

1 day ago
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AI could make it harder to establish blame for medical failings, experts say

1 day ago
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UK MPs urged to investigate TikTok’s plans to cut 439 content moderator jobs

1 day ago
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Google won’t reveal if it is lobbying Trump about YouTube’s inclusion in Australia’s under-16s ban

2 days ago
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‘Death to Spotify’: the DIY movement to get artists and fans to quit the music app

2 days ago