Business
Brexit partly to blame for high inflation, says Rachel Reeves
Brexit is partly to blame for high inflation in the UK, Rachel Reeves has said as she made the case for rebuilding ties with the EU.
The Chancellor said the cost of trading with Brussels was among the reasons for rising prices in Britain.
During an appearance at Riyadh’s Future Investment Initiative summit on her visit to Saudi Arabia, Ms Reeves attributed the UK’s vote to cut ties with the EU to “a rejection of open borders”.
But she said there was “public support” for the Labour Government’s move to reset relations with the bloc, including an agreement secured earlier this year aimed at cutting red tape for travellers and businesses.
“I think Brexit was a rejection of open borders, but if you look at the UK today, when we did that deal back in May with the European Union, to take down some of those barriers and indeed to introduce an ambitious youth mobility scheme, there was public support for that,” Ms Reeves said.
“And actually the sort of worry, perhaps, that we had as the Government, that reopening that can of worms of our relationship with the European Union might be quite dangerous – actually, the response has been very good.
“Businesses, especially small businesses, who face increasing red tape since we left the European Union, for workers, who are now locked out of the jobs market in Europe, there are obviously huge benefits from rebuilding some of those relations.”
Ms Reeves is preparing to deliver a challenging Budget next month in which she is widely expected to increase taxes again to plug a hole in the public finances.
Economists at the Institute for Fiscal Studies (IFS) have said she would need to raise £22 billion to restore the £10 billion of headroom she previously left herself.
The pressure has been eased slightly by better-than-expected inflation, with the Consumer Prices Index (CPI) rate remaining steady last month at 3.8%, but the Chancellor said on Tuesday that it was still too high.
“Inflation is too high in countries around the world including in the UK, and one of the reasons for that is that there’s too much cost associated with trade with our nearest neighbours and trading partners,” she told the audience.
Ms Reeves is leading a UK delegation in Saudi Arabia as the Government seeks to deepen ties with the region in a search for economic growth.
On Tuesday, she welcomed a package of two-way trade and investment deals with the country which the Treasury says is worth £6.4 billion.
The agreements include up to £5 billion in financing support from UK Export Finance for projects in Saudi Arabia, which the Government hopes will unlock contracts for British suppliers, and a new Barclays headquarters in Riyadh.
“The £6.3 billion package of new trade, procurement and investment commitments unveiled today will turbocharge business opportunity and create thousands of jobs at home – key ingredients for kickstarting economic growth and building an economy that works for, and rewards, working people,” Ms Reeves said.
Downing Street has defended the visit amid questions about Saudi Arabia’s human rights record, insisting that “economic partnership can co-exist with frank dialogue on areas of disagreement”.
“The Chancellor will be honest with Gulf counterparts over areas of divergence and cultural differences,” the Prime Minister’s official spokesman said on Monday.
India’s budget focuses on infrastructure and defence spending and tax breaks for data-centre investments.
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Business
New Income Tax Act 2025 to come into effect from April 1, key reliefs announced in Budget 2026
New Delhi: Finance Minister Nirmala Sitharaman on Sunday said that the Income Tax Act 2025 will come into effect from April 1, 2026, and the I-T forms have been redesigned such that ordinary citizens can comply without difficulty for ease of living.
The new measures include exemption on insurance interest awards, nil deduction certificates for small taxpayers, and extension of the ITR filing deadline for non-audit cases to August 31.
Individuals with ITR 1 and ITR 2 will continue to file I-T returns till July 31.
“In July 2024, I announced a comprehensive review of the Income Tax Act 1961. This was completed in record time, and the Income Tax Act 2025 will come into effect from April 1, 2026. The forms have been redesigned such that ordinary citizens can comply without difficulty, for) ease of living,” she said while presenting the Budget 2026-27
In a move that directly eases cash-flow pressure on individuals making overseas payments, the Union Budget announced lower tax collection at source across key categories.
“I propose to reduce the TCS rate on the sale of overseas tour programme packages from the current 5 per cent and 20 per cent to 2 per cent without any stipulation of amount. I propose to reduce the TCS rate for pursuing education and for medical purposes from 5 per cent to 2 per cent,” said Sitharaman.
She clarified withholding on services, adding that “supply of manpower services is proposed to be specifically brought within the ambit of payment contractors for the purpose of TDS to avoid ambiguity”.
“Thus, TDS on these services will be at the rate of either 1 per cent or 2 per cent only,” she mentioned during her Budget speech.
The Budget also proposes a tax holiday for foreign cloud companies using data centres in India till 2047.
Business
Budget 2026 Live Updates: TCS On Overseas Tour Packages Slashed To 2%; TDS On Education LRS Eased
Union Budget 2026 Live Updates: Union Budget 2026 Live Updates: Finance Minister Nirmala Sitharaman is presenting the Union Budget 2026-27 in Parliament, her record ninth budget speech. During her Budget Speech, the FM will detail budgetary allocations and revenue projections for the upcoming financial year 2026-27. Sitharaman is notably dressed in a Kanjeevaram Silk saree, a nod to the traditional weaving sector in poll-bound Tamil Nadu.
The budget comes at a time when there is geopolitical turmoil, economic volatility and trade war. Different sectors are looking to get some support with new measures and relaxations ahead of the budget, especially export-oriented industries, which have borne the brunt of the higher US tariffs being imposed last year by the Trump administration.
On January 29, 2026, Sitharaman tabled the Economic Survey 2025-26, a comprehensive snapshot of the country’s macro-economic situation, in Parliament, setting the stage for the budget and showing the government’s roadmap. The survey projected that India’s economy is expected to grow 6.8%-7.2% in FY27, underscoring resilience even as global economic uncertainty persists.
Budget 2026 Expectations
Expectations across key sectors are taking shape as stakeholders look to the Budget for support that sustains growth, strengthens jobs and eases financial pressures:
Taxpayers & Households: Many taxpayers want practical improvements to the income tax structure that preserve simplicity while supporting long-term financial planning — including broader deductions for home loan interest and diversified retirement savings options.
New Tax Regime vs Old Tax Regime | New Income Tax Rules | Income Tax 2026
Businesses & Industry: With industrial output and investment showing resilience, firms are looking for policies that bolster capital formation, ease compliance, and expand infrastructure spending — especially in manufacturing and technology-driven sectors that promise jobs and exports.
Startups & Innovation: The startup ecosystem expects incentives around employee stock options and capital access, along with regulatory tweaks that encourage risk capital and talent retention without increasing compliance burdens.
Also See: Stock Market Updates Today
The Budget speech will be broadcast live here and on all other news channels. You can also catch all the updates about Budget 2026 on News18.com. News18 will provide detailed live blog updates on the Budget speech, and political, industry, and market reactions.
We are providing a full, detailed coverage of the union budget 2026 here, with a lot of insights, experts’ views and analyses. Stay tuned with us to get latest updates.
Also Read: Budget 2026 Live Streaming
Here are the Live Updates of Union Budget 2026:
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