NHS nurses have slammed the government's proposal of a 'pitiful' 1 per cent pay rise after Rishi Sunak warmed Britain will be paying off Covid debts for decades.
The Royal College of Nursing said nurses should be getting 12.5% more and said the government should expect a "backlash" should the suggested pay rise goes ahead.
A staggering 1 million people will be dragged into paying the higher rate of income tax by 2025 thanks to the Chancellor's plans, they warned – taking the total to 5 million.
Paul Johnson, from the IFS, warned that further tax rises are likely to lie ahead and said it was a "tale of two budgets" as the Chancellor extended several support packages including furlough for months to come.
He said the tax burden is set to rocket to levels not seen since the 1960s, and warned gloomily: “It is possible we'll see even bigger ones over the next few years”.
Mr Johnson said: “Take account of the cuts to planned spending announced in the Autumn and Santa Sunak, purveyor of billions today looks more like Scrooge Sunak cutting spending and raising taxes to the tune of nearly £50 billion relative to his pre-pandemic plans of March 2020.”
Follow all the latest news, updates and analysis of what the Budget means for you on our live blog below…
- Joseph Gamp
TORY BACKBENCHER SAYS 1% NHS PAYRISE 'IS NOT ENOUGH'
Conservative backbencher Sir Roger Gale accused the Government of acting in an "inept" way as he said a 1% pay rise for health workers is not enough.
He told BBC Radio 4's Today programme: "I think more is needed. I think the way that this has been presented and handled has been inept, and I have to say that.
"I'm not going to try and put a figure on this and it is expected that the Government will start low and the unions will start high, and normally there is an agreement reached somewhere in the middle.
"But we are facing exceptional circumstances and yes, I know, that over a period of three years nurses have had a considerable pay increase, but that is not what I think the public wants in terms of recognition of a wholly exceptional situation.
"And by the way, this isn't just about nurses; this is also about ancillary staff, the people who do the mopping up when people are dying or have died. We need to remember that as well. They seem to get forgotten, and they shouldn't be."
- Joseph Gamp
NO CASE FOR REFORMING HUMAN RIGHTS LAWS, MPS AND PEERS SAY
There is no case for reforming human rights laws, according to a group of MPs and peers.
The Joint Committee on Human Rights has told the Government the legislation does not need to be changed.
The Government has appointed former Court of Appeal judge Sir Peter Gross to consider whether the Act needs to be reformed, some 20 years after it was brought into force.
Findings from the review are expected to be published in the summer.
Responding to the review, the committee said the laws had an “enormously positive impact on the enforcement of human rights in the UK” and said there was “no case for reform”.
- Joseph Gamp
RISHI SUNAK TURNED FROM 'SANTA TO SCROOGE'
Rishi Sunak has turned from “Santa to Scrooge” and is expected to clobber Brits with another tax bombshell, top economists have warned today.
The Institute for Fiscal Studies poured cold water on the Chancellor’s plans, warning they cannot be delivered without considerable “pain”.
But policy wonks at the Institute for Fiscal Studies warned the Chancellor will have to launch a fresh tax raid on families to plug the holes in the budget.
Mr Sunak plans to slash a whopping £14bilion from government spending in the next five years.
The axe could fall hard on social care and policing as other departments, like the NHS and aid, have seen their budgets protected.
- Joseph Gamp
GOVERNMENT DEFENDS RECOMMENDED 1% PAY RISE FOR NHS WORKERS
A Government spokesman said: "Over one million NHS staff continue to benefit from multi-year pay deals agreed with trade unions, which have delivered a pay rise of over 12% for newly-qualified nurses and will increase junior doctors' pay scales by 8.2%.
"Pay rises in the rest of the public sector will be paused this year due to the challenging economic environment, but we will continue to provide pay rises for NHS workers, on top of a £513 million investment in professional development and increased recruitment.
"That's with record numbers of doctors and 10,600 more nurses working in our NHS, and with nursing university applications up by over a third.
"The independent pay review bodies will report in late spring and we will consider their recommendations carefully when we receive them."
- Joseph Gamp
LABOUR SHADOW HEALTH SECRETARY SAYS GOVERNMENT DECISIONS 'STINK'
Shadow health secretary Jonathan Ashworth fumed: "Governments make decisions about how to spend money. It stinks."
He added: “Rishi Sunak’s promised to be open and honest with the public yet shamefully insults every single member of NHS staff sneaking out this announcement and failing to include any mention of NHS pay in the budget.
“NHS staff deserve a fair pay rise.”
- Joseph Gamp
HEALTH MINISTER SAYS NURSES WILL STILL SIGN UP TO WORK IN NHS DESPITE 1% PAY RISE
Asked whether people would still be signing up to work for the NHS in light of the proposed 1% pay rise and the pandemic, Health Minister Nadine Dorries told BBC Breakfast: "I believe nurses are about more than superficial soundbites, I think nurses love their job.
"They do their job because they love their job.
"I know myself, I was a nurse myself and trained as a nurse, I became a nurse because I loved nursing.
"I hope that those nurses who love their jobs too will stay in the NHS and stick with us through what is a difficult time."
- Joseph Gamp
UNIVERSAL CREDIT £20 A WEEK
A £20 a week Universal Credit uplift in payments is being extended for another six months, Rishi Sunak revealed today.
The Chancellor announced the boost for low-income households in his Budget today.
The Chancellor today declared the Budget “meets the moment” of challenge and change facing the UK.
And he said those in need of Universal Credit would continue to be supported.
Speaking today, Mr Sunak said: “We’ll provide Working Tax Credit claimants with equivalent support for the next six months. Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500.
“And over the course of this year, as the economy begins to recover, we are shifting our resources and focus towards getting people into decent, well-paid jobs.”
- Joseph Gamp
NHS PAY RISE OF 1% CONSIDERED 'A SLAP IN THE FACE'
NHS staff are expected to get just a 1 per cent pay rise next year.
As part of measures to tighten the belt, pay rises across the public sector are to be paused from April, but NHS staff and the lowest paid will get a small, below-inflation rise.
The Department of Health said in its submission to the annual pay review bodies that “the Government will need to take into account the challenging fiscal and economic context” with pay awards.
It went on: “In settling the DHSC and NHS budget, the government assumed a headline pay award of 1% for NHS staff. Anything higher would require re-prioritisation.”
- Hana Carter
- Hana Carter
HOW TO AVOID TAX HIKES
Some employers offer salary sacrifice schemes, which is an agreement to reduce an employee's cash pay for non-cash benefits.
Often, these include benefits like a childcare vouchers, gym membership or a cycle to work scheme.
You don't pay tax on the portion of your wages that goes towards paying for these schemes, lowering the amount of income tax you pay overall.
Sarah Coles from Hargreaves Lansdown said: "The more you earn, and the bigger your pay rise over the next few years, the harder this will hit you.
"If you’re set for a pay rise, it means it’s well worth considering salary sacrifice.
"These schemes let you give up a portion of your salary, and spend it on certain things free of tax (and sometimes national insurance)."
- Hana Carter
MARTIN LEWIS GOES HEAD TO HEAD WITH SUNAK
Martin Lewis has urged Rishi Sunak to extend the £20 a week Universal Credit boost to the millions of people that are on the old benefits system.
The MoneySavingExpert founder went head-to-head with the Chancellor in an exclusive interview for the Martin Lewis Money Show.
Speaking to the Chancellor, Martin read out a message from one viewer called Claire who asked why she isn’t receiving the same level of support for her adult disabled son.
Martin asked the Chancellor: “The disabled, the carers out there who aren’t getting that support?
“You’re not willing to help the others who are struggling because of Covid?”
The Chancellor replied by saying the Universal Credit boost was designed “to help those in low income work” whose circumstances were affected by the pandemic.
- Hana Carter
'SANTA TO SCROOGE'
Rishi Sunak has turned from “Santa to Scrooge'' and is expected to clobber Brits with another tax bombshell, top economists have warned today.
The Institute for Fiscal Studies poured cold water on the Chancellor’s plans, warning they cannot be delivered without considerable “pain”.
But policy wonks at the Institute for Fiscal Studies warned the Chancellor will have to launch a fresh tax raid on families to plug the holes in the budget.
Mr Sunak plans to slash a whopping £14bilion from government spending in the next five years.
The axe could fall hard on social care and policing as other departments, like the NHS and aid, have seen their budgets protected.
- Hana Carter
- Hana Carter
HARD WORKING BRITS TO BE HIT BY TAX RISE
Millions of hard-working Brits will be hit by a stealth tax rise from yesterday's Budget.
The Chancellor Rishi Sunak announced a freeze to income tax thresholds, meaning Brits will no longer benefit from planned increases to the amount that can be earned tax-free.
In his Budget today, Mr Sunak said the tax-free personal allowance – the amount you can earn before paying tax – will rise as planned from April 2021 but then stay at that rate until April 2026.
For basic rate taxpayers the threshold will be held at £12,570 and £50,270 for higher rate tax payers.
Although Mr Sunak stopped short of increasing taxes, a freeze to these thresholds is essentially a pay cut, once you take into account the rate of inflation.
- Hana Carter
MORE THAN 2.2M JABS GIVEN IN LONDON BETWEEN DECEMBER AND MARCH
NHS England data shows a total of 2,239,161 jabs were given to people in London between December 8 and March 3, including 2,147,388 first doses and 91,773 second doses.
This compares with 3,473,258 first doses and 115,627 second doses given to people in the Midlands, a total of 3,588,885.
The breakdown for the other regions is:
- East of England – 2,096,215 first doses and 83,972 second doses, making 2,180,187 in total
- North East and Yorkshire – 2,738,543 first and 108,779 second doses (2,847,322)
- North West – 2,326,546 first and 85,373 second doses (2,411,919)
- South East – 2,867,324 first and 117,118 second doses (2,984,442)
- South West – 2,047,313 first and 80,982 second doses (2,128,295)
- Hana Carter
UNIVERSAL CREDIT £20 A WEEK
A £20 a week Universal Credit uplift in payments is being extended for another six months, Rishi Sunak revealed today.
The Chancellor announced the boost for low-income households in his Budget today.
The Chancellor today declared the Budget "meets the moment" of challenge and change facing the UK.
And he said those in need of Universal Credit would continue to be supported.
Speaking today, Mr Sunak said: "We’ll provide Working Tax Credit claimants with equivalent support for the next six months.
"Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500.
"And over the course of this year, as the economy begins to recover, we are shifting our resources and focus towards getting people into decent, well-paid jobs."
- Niamh Cavanagh
EXTRA HELP
Martin Lewis has urged Rishi Sunak to extend the £20 a week Universal Credit boost to the millions of people that are on the old benefits system.
The MoneySavingExpert founder went head-to-head with the Chancellor in an exclusive interview for the Martin Lewis Money Show.
In his Budget this week, Mr Sunak confirmed that Universal Credit claimants will continue to get the £20 a week uplift to their payments for another six months.
People on Working Tax Credits will also get a one-off £500 payment.
But ministers have so far rejected calls to hike payments for other older benefits that haven’t yet been replaced by Universal Credit.
- Niamh Cavanagh
'SLAP IN THE FACE'
NHS staff are expected to get just a 1 per cent pay rise next year.
As part of measures to tighten the belt, pay rises across the public sector are to be paused from April, but NHS staff and the lowest paid will get a small, below-inflation rise.
The Department of Health said in its submission to the annual pay review bodies that "the Government will need to take into account the challenging fiscal and economic context" with pay awards.
It went on: "In settling the DHSC and NHS budget, the government assumed a headline pay award of 1% for NHS staff.
"Anything higher would require re-prioritisation."
- Hana Carter
- Hana Carter
WHAT IS THE BUDGET?
The Budget is when the government outlines its plans for tax hikes, cuts and things like changes to the minimum wage.
It's different to the Spending Review, which sets out how much public cash will go towards funding certain departments, devolved government's and services, such as the NHS.
The Budget is read out in the House of Commons by the Chancellor of the Exchequer. It will be Rishi Sunak's second Budget as Chancellor.
Mr Sunak's first one in March last year has been dubbed the "coronavirus Budget" after it focused on supporting Brits financially through the crisis, rather than the government's "levelling up" agenda as promised in the 2019 general election.
Normally, the Budget is held once a year but the unprecedented circumstances of the pandemic in 2020 saw Mr Sunak give a "mini-budget" in the Commons on July 8.
- Hana Carter
HOLIDAYS STILL LOOKING UNCERTAIN
Holidays abroad are yet to be given the go-ahead by the UK government, although it is hoped that they will resume from the summer.
A number of countries are very keen to get Brits back, and are offering vaccine passport schemes and fewer travel restrictions to encourage people to return.
Last month, the government gave a road map out of lockdown which included self-catered domestic holidays resuming from April 12.
This will be followed by May 17 for hotels and group trips, while a date for foreign holidays will be announced next month but is hoped to be by June 21.
- Hana Carter
NO CASE FOR REFORMING HUMAN RIGHTS LAWS, MPS AND PEERS SAY
There is no case for reforming human rights laws, according to a group of MPs and peers.
The Joint Committee on Human Rights has told the Government the legislation does not need to be changed.
The Government has appointed former Court of Appeal judge Sir Peter Gross to consider whether the Act needs to be reformed, some 20 years after it was brought into force.
Findings from the review are expected to be published in the summer.
Responding to the review, the committee said the laws had an "enormously positive impact on the enforcement of human rights in the UK" and said there was "no case for reform".
- Hana Carter
NHS PAY RISE BRANDED "PITIFUL AND BITTERLY DISAPPOINTING"
- Hana Carter
"ISLAMIC STATE STILL ABLE TO CARRY OUT LETHAL ATTACKS"
The Foreign Secretary told the Commons: “The safety and the security of our citizens is obviously the Government’s highest priority, it is at the core of our work in tackling Daesh which remains our most significant terrorist threat – both at home and abroad.”
Mr Raab told MPs “the Global Coalition Against Daesh estimates that there are still around 10,000 Daesh members at large across Syria and Iraq”, adding: “So support for Daesh still lingers on in many communities. At the same time, while Iraq and Syria remain Daesh’s primary focus, it also presents a clear and growing global threat.”
He continued: “So diminishing Daesh’s ability to operate in other parts of the world, including Africa and Asia, must also be a priority for the international community. We must not allow it to take roots elsewhere.”
Mr Raab added: “I can report to the House that on 11 February a coalition surveillance aircraft located a number of Daesh fighters – they were occupying two dispersed encampments on the banks of the Tharthar River, west of the city of Bayji.
“Two UK Typhoon FGR4s conducted careful checks of the surrounding area for civilians before carrying out simultaneous attacks using two Paveway IV guided bombs against each group. The bombs hit their targets within the encampments, eliminating the terrorist threat.”
- Hana Carter
SADIQ TO BOOST LONDON
Mayor of London Sadiq Khan has launched his re-election campaign by promising £5m to bring jobs and tourists back to the city.
He aims to get the pandemic-struck West End back to its former glory in a postwar-style recovery package of investment in the capital.
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