UK’s Labour government hikes taxes in first budget

Britain's Chancellor of the Exchequer Rachel Reeves poses with the red budget box outside her office on Downing Street in London, Britain October 30, 2024. (Reuters)
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Updated 30 October 2024
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UK’s Labour government hikes taxes in first budget

  • Reeves said £25 billion would come from hiking employers’ national insurance — a payrolls tax used to help pay for social care
  • Changes to inheritance tax will raise more than £2 billion while the government is also hiking taxation on capital gains and property purchases

LONDON: Britain’s new Labour government on Wednesday announced major tax hikes and higher borrowing to meet Prime Minister Keir Starmer’s aim of investing for long-term growth.
In the highly-anticipated fiscal update — the first under the center-left government after 14 years of Conservative rule — finance minister Rachel Reeves said tax increases would raise an additional £40 billion ($52 million).
Addressing parliament in a speech lasting more than one hour, Reeves also confirmed changes to fiscal rules that will allow the government to invest billions more in public services.
“This government was given a mandate,” Reeves told MPs.
“To restore stability to our country and to begin a decade of national renewal. The only way to drive economic growth is to invest, invest, invest,” she insisted.
Labour won a landslide general election in July and had already announced a raft of economic measures, including improved workers’ rights and minimum wages, a vast green-energy plan and plans for mass building of homes.
Ahead of the budget, it also drew strong criticism for scrapping a winter-fuel benefit scheme for millions of pensioners, hurting Starmer’s approval rating in polls.
“I am restoring stability to our public finances and rebuilding our public services,” Reeves said Wednesday.
Reeves said £25 billion would come from hiking employers’ national insurance — a payrolls tax used to help pay for social care.
Changes to inheritance tax will raise more than £2 billion while the government is also hiking taxation on capital gains and property purchases as part of its plans to claw back money.
The pound won back ground as Reeves spoke, while London’s stock market was little changed.
“At this stage, massive tax rises have not spooked financial markets,” said Kathleen Brooks, research director at traders XTB.
The government kept its pledge not to raise income taxes, employee national insurance charges, or value added tax.
Outgoing Tory leader Rishi Sunak, Britain’s former prime minister, said the budget contains “broken promise after broken promise.”
Ahead of her tax and spend plans, Reeves made a technical change to the way UK debt is measured to allow her to borrow more, even though the country’s public sector borrowing is now at levels last seen in the 1960s.
To boost investment, the chancellor will use a wider measure of debt that takes into account the future returns on investment.
Reeves on Wednesday said the extra investment in capital infrastructure projects would start to “repair the fabric of our nation.”
The government will invest billions of pounds to rebuild schools, hire teachers and fund childcare.
In a surprise move, she extended the freeze on fuel duty until next year.
The cash-strapped National Health Service will receive a substantial boost, with the day-to-day health budget receiving an increase of nearly £23 billion.
Alongside the budget, Reeves said Britain’s economy was set to grow faster than forecast this year and next.
The nation’s gross domestic product will expand 1.1 percent in 2024 and by 2.0 percent next year — above estimates given in March by the Office for Budget Responsibility (OBR), Britain’s fiscal watchdog.
Britain is benefiting from its annual inflation rate dropping to under the Bank of England’s 2.0-percent target, easing a cost-of-living crisis.
The International Monetary Fund this month also estimated that Britain’s economy would grow 1.1 percent in 2024.
Looking beyond next year, the OBR on Wednesday downgraded Britain’s growth forecasts for the 2026-2028 period.


Trumps names two Arab Americans for his Cabinet

Updated 5 sec ago
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Trumps names two Arab Americans for his Cabinet

  • President-elect Donald Trump nominated Dr. Janette Nesheiwat to be US surgeon general
  • He also nominated Dr. Marty Makary as head of the US Food and Drug Administration

CHICAGO: President-elect Donald Trump has named two Arab Americans to serve in his Cabinet once he is sworn into office in January.

Trump nominated Dr. Janette Nesheiwat to be US surgeon general and Dr. Marty Makary as head of the US Food and Drug Administration.

The appointments were applauded by Dr. Bishara Bahbah, chairman of Arab Americans for Trump, who helped the former president to win nearly half of the Arab American vote in the Nov. 5 election against US Vice President Kamala Harris.

“We are delighted with President Trump’s nomination of the first two Arab Americans to be part of his administration,” Bahbah said in a message to Arab News on Saturday.

“This is a testament to the hard work of Arab Americans for Trump and recognition of President Donald J. Trump of the role Arab Americans played in his election as the 47th president of the United States. AAFT looks forward to additional Arab American appointments in President Trump’s administration, particularly in the political field.”

Dr. Makary is a British American surgeon of Lebanese background. He is a public policy researcher at Johns Hopkins University serving as a professor at the Johns Hopkins School of Medicine and a professor, by courtesy, at the Johns Hopkins Carey Business School.

His current research focuses on the underlying causes of disease, public policy, health care costs, and relationship-based medicine. Dr. Makary previously served in leadership at the World Health Organization patient safety program and has been elected to the National Academy of Medicine.

Clinically, Dr. Makary is the chief of Islet Transplant Surgery at Johns Hopkins. He is the recipient of the Nobility in Science Award from the National Pancreas Foundation and has been a visiting professor at more than 25 medical schools. He has published more than 250 peer-reviewed scientific articles and has served on several editorial boards. He is the author of two New York Times bestselling books, “Unaccountable” and “The Price We Pay.”

Dr. Makary is also an anti-vaxxer who refused vaccination for COVID-19, a view shared by many of President-elect Trump’s conservative and Republican supporters.

Dr. Nesheiwat is a double board-certified medical doctor described on her website as “bringing a refreshingly no-nonsense attitude to the latest medical news, breaking down everything you need to know to keep you — and your family — healthy at all times.” She is also the author of “Beyond the Stethoscope: Miracles in Medicine.”

A graduate of the University of Arkansas for Medical Sciences, UAMS, Dr. Nesheiwat has been “shaped by her faith and her upbringing.”

Born in Carmel, New York, she is the daughter of Christian Jordanian immigrants and one of five children raised by her widowed mother, Hayat Nesheiwat. Her siblings are Julia Nesheiwat, Jaclyn Stapp, Dina Nesheiwat and Daniel Nesheiwat.


Wounded Bangladesh protesters receive robotic helping hand

Updated 54 min 52 sec ago
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Wounded Bangladesh protesters receive robotic helping hand

  • Robolife Technologies says the prosthetic limbs use sensors connected to the nerves to move
  • The company says it allows users to grasp objects, to type and use a phone

DHAKA: Squeezing rubber-covered robotic prosthetic hands, Bangladesh protesters wounded during the deadly revolution to topple autocratic leader Sheikh Hasina test out replacement arms for their lost limbs.
“I’ll be able to do some everyday tasks with this artificial hand,” said student Hafeez Mohammad Hossain, 19, whose right hand was ripped off in gunfire on August 5.
It was the same day protesters stormed Hasina’s palace as she fled to India by helicopter.
In the middle of the chaos, Hossain said a police officer levelled a shotgun at him and fired. He described searing pain as gun pellets lacerated his back and leg.
Surgeons picked out the gunshot, but were unable to save his hand.
“I can’t write anymore,” Hossain said. “I’m struggling to learn how to write with my left hand.”
On Thursday he was fitted with a prosthetic limb, alongside four other students who also lost their hands during the months-long protests in which at least 700 people were killed during a police crackdown.
Robolife Technologies, a Bangladeshi organization manufacturing artificial hands, said the prosthetic limbs use sensors connected to the nerves to move.
The company says it allows users to grasp objects, to type and use a phone.
“If you ask me whether they work like organic hands, I’d say no,” said Antu Karim, who is working on the government-backed project to fit the limbs.
“But these hands allow the boys to hold a glass if thirsty, or a spoon to eat,” he added. “At least, they won’t be looked down upon for not having hands.”
Hasina’s 15-year tenure saw widespread human rights abuses, including the mass detention and extrajudicial killings of her political opponents.
Limbless protesters held a rally earlier this month demanding the interim government who took over after Hasina’s fall support those injured in the protests.
Many say they have not received the aid they need.
The four other former protesters who had arms fitted on Thursday included Mohammad Mamun Mia, 32, a father of two, whose hand was hacked off by a gang he said was loyal to Hasina’s Awami League party.
The new arm is far from perfect, but it has made a huge difference.
“I’ll be able to do some regular tasks with this hand,” he said, saying that while he cannot work driving a tractor in the fields again, he hopes now to open a small business.
Arif Hossain Sagar, 19, had his hand amputated after it failed to heal from an injury he sustained during the protests, and doctors worried about gangrene.
“I can’t do any regular activities now,” Sagar said. “I rely on others for eating or bathing.”
The new hand will return a degree of normality to his life, he said.
Nayeem Hasan, wounded when attackers pounced on him as he went to donate blood to help those injured after a fire, broke into tears.
The new arm would help him fulfil his simple dream.
“I have a one-year-old daughter who wants me to hold her,” Hasan said.


Ukraine needs better air defenses, Zelensky says after Russian drone attack

Updated 24 November 2024
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Ukraine needs better air defenses, Zelensky says after Russian drone attack

  • Over the past week Russia used more than 800 guided aerial bombs, about 460 attack drones, and more than 20 missiles of various types

KYIV: President Volodymyr Zelensky said on Sunday Ukraine needs to strengthen its air defenses to protect people after its air defense units shot down 50 of 73 Russian drones launched overnight over many regions.
“An air alert has been sounded almost daily across Ukraine this week,” Zelensky said on Telegram messenger.
Over the past week Russia used more than 800 guided aerial bombs, about 460 attack drones, and more than 20 missiles of various types, Zelensky said.
“Ukraine is not a testing ground for weapons. Ukraine is a sovereign and independent state. But Russia still continues its efforts to kill our people, spread fear and panic, and weaken us,” he said.
The Ukrainian military said earlier on Sunday that air defense units had destroyed more than 10 Russian drones that were targeting Kyiv in an overnight attack.
There were no immediate reports of damage or injuries as a result of the attack, Kyiv’s military administration posted on Telegram.
Reuters witnesses heard explosions in Kyiv in what sounded like air defense units in operation.
“The UAVs (unmanned aerial vehicles) were flying in different directions toward Kyiv,” said Serhiy Popko, head of Kyiv’s military administration. “The air raid alert in the city lasted for more than three hours.”
There was no immediate comment from Russia about the attack.


Uruguay votes for next president in closely fought runoff race

Updated 24 November 2024
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Uruguay votes for next president in closely fought runoff race

  • Final opinion polls suggest the Nov. 24 runoff promises to be razor tight
  • Fewer than 25,000 votes potentially separating the frontrunners

MONTEVIDEO: Voters in South America’s laid-back Uruguay, known for its beaches, legalized marijuana and stability, will head to the polls on Sunday in a second-round presidential race between moderates that closes out a bumper year of elections.
The vote in the small nation of 3.4 million people sees opposition center-left candidate Yamandu Orsi take on continuity conservative runner, Alvaro Delgado, who has the backing of a third-placed ally.
Final opinion polls suggest the Nov. 24 runoff promises to be razor tight, with fewer than 25,000 votes potentially separating the frontrunners.
Unlike sharp right-left divides in recent elections in Argentina, Brazil or Mexico, Uruguay’s political arena is relatively tension-free, with significant overlap between the conservative and liberal coalitions vying for office, taking some of the sting out of Sunday’s final result.
Ballot stations open at 8 a.m. (1100 GMT) and close at 7:30 p.m. local time, with first results expected two hours later.
Orsi, who has pledged a “modern left” policy approach, won 43.9 percent of the October vote for the Broad Front and will face Delgado, who secured 26.8 percent but also has the backing of the conservative Colorado Party that together with his National Party made up almost 42 percent of votes. The two parties did the same in 2019, winning the election.
Orsi has sought to reassure Uruguayans that he does not plan a sharp policy shift in the traditionally moderate and relatively wealthy nation.
Delgado meanwhile has asked voters to “re-elect a good government,” seeking to capitalize on the popularity of President Lacalle Pou, who constitutionally cannot run for immediate re-election.
Neither coalition has an absolute majority in the lower house following October’s elections. But Orsi’s Broad Front won 16 of 30 Senate seats. He argues his senate majority places him in a better position to lead the next government.
Both contenders on Sunday are hoping to attract the roughly 8 percent of first-round voters who went for smaller, unaligned parties, as well as those who failed to turn out in October.
But neither has made new pledges in the final weeks to appeal to them, and pollsters say a televised debate on Nov. 17 appears to have had little effect.
“I don’t know who I’m voting for,” said Rosario Gusque, 42, from the region of Canelones where Orsi was previously mayor. “Even less so after seeing the debate.”
One question as the biggest year for elections in history comes to an end is whether Uruguay will buck a global trend of incumbent parties losing vote share compared with the previous election. Voters hurt by inflation and high living costs have punished parties in power, including in Britain, Japan and the United States.
A robust Uruguayan economy though could help Delgado on Sunday: “There are few indications that voters are clamoring for significant political change,” said Uruguayan analyst Nicolas Saldias of the Economist Intelligence Unit.


82 killed in three days of Pakistan sectarian violence: official

Updated 24 November 2024
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82 killed in three days of Pakistan sectarian violence: official

Peshawar: Three days of bitter sectarian gunfights in northwestern Pakistan have killed at least 82 people and wounded 156 more, a local official said Sunday.
“Among the deceased, 16 were Sunni, while 66 belonged to the Shia community,” said a local administration official in Kurram district of Khyber Pakhtunkhwa province, speaking on condition of anonymity.
Pakistan is a Sunni-majority country but Kurram district — near the border with Afghanistan — has a large Shiite population and the communities have clashed for decades.
The latest bout of violence began on Thursday when two separate convoys of Shiite Muslims traveling under police escort were ambushed, killing at least 43 and sparking two days of gunbattles.
“Our priority today is to broker a ceasefire between both sides. Once that is achieved, we can begin addressing the underlying issues,” provincial Law Minister Aftab Alam Afridi said Sunday.