Business
Reeves: PM and I decided ‘as a team’ not to hike income tax
Rachel Reeves said she and Sir Keir Starmer had decided “as a team” not to raise income tax as she hit out at “too many leaks” in the run-up to Budget.
The Chancellor told MPs the “very close partnership” between herself and the Prime Minister meant the move to extend a freeze on tax thresholds instead had been made jointly.
It came as a senior Treasury official confirmed a leak inquiry into reports of economic policy that emerged before Ms Reeves’s statement to the Commons would cover ministers as well as civil servants and advisers.
Appearing before Parliament’s Treasury Select Committee, the Chancellor said a Financial Times story which revealed she had dropped plans for an income tax rise was “incredibly damaging”.
She said: “It was not an off-the-record briefing, it was a leak. I’m absolutely categorical that that was not an authorised briefing.”
She said the report was “frustrating” because it gave the impression she might have dropped her commitment to rebuilding the “headroom” she had against her rule of balancing day-to-day spending with tax receipts.
In the weeks before the Budget, the Chancellor herself fuelled speculation she was preparing to raise income tax in a speech that sought to roll the pitch for the autumn statement by warning of difficult decisions ahead.
She had suggested that sticking to Labour’s pre-election promises, which included a pledge not to hike income tax, would only be possible with “deep cuts” to public investment.
A leak to the Financial Times later revealed the proposal to increase income tax rates for the first time in 50 years had been dropped.
Speaking on Wednesday, Ms Reeves said: “The Budget had too much speculation. There were too many leaks, and much of that, those leaks and speculation, were inaccurate, very damaging, as well as the IT security issues… The OBR’s report also noted that the spring statement had been accessed early as well.
“I want to say on the record how frustrated I am and have been by these incidents and the volume of speculation and leaks, and that is why I am doing something about it, because we cannot allow this to happen again.
“A leak inquiry is under way with my full support, being led by the permanent secretary at the Treasury, and we are also conducting a review of the Treasury security processes to inform future fiscal events.”
Appearing alongside Ms Reeves, Treasury permanent secretary James Bowler confirmed the leak inquiry would cover ministers as well as officials and advisers.
Asked whether the Prime Minister made the decision not to raise income tax, Ms Reeves said she had met Sir Keir “two, three times a week during the Budget process”.
She said: “That is not always the case between chancellors and prime ministers. I recognise that. But there is a very close partnership between myself and the Prime Minister.
“And so we took him through all of the numbers and all of the options and we decided it together as a team, because that is what the Prime Minister and I am.”
Former OBR chairman Richard Hughes resigned after the watchdog’s assessment of the Chancellor’s plans was inadvertently made available online before she delivered her speech last month.
Meanwhile, Ms Reeves faces accusations of misleading the public about the state of the public finances after a letter from the OBR contested her narrative that she needed to raise taxes to fill a so-called “black hole”.
The OBR’s pre-Budget forecasting instead suggested Ms Reeves’s spending plans would run a surplus because of changing economic headwinds.
A Tory-led debate in the Commons on Wednesday afternoon will see the party use a parliamentary process known as a censure motion to call on Ms Reeves to apologise for how the Budget unfolded.
Addressing the Treasury Committee, Ms Reeves said there had been a lot of information shared between the OBR and the Treasury in the weeks leading up to the autumn statement.
“Pre-measures is not the final word from the Office for Budget Responsibility, because then you have post-measures forecasts,” she told MPs.
“They take into account the policy decisions that we take as a Government on tax and spend… so there was plenty of additional information being shared between the OBR and the Treasury between October 30 and major measures one and indeed major measures two.”
Ahead of the Conservative-led debate later, shadow chancellor Sir Mel Stride accused Ms Reeves of putting “party before country”.
He said: “Rachel Reeves has repeatedly misled the British public. She promised she wouldn’t raise taxes on working people – and then she did. She insisted there was a black hole in the public finances – and there wasn’t.”
Business
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Business
India’s First Vande Bharat Sleeper To Run Between Patna And New Delhi: 1,000 Kms In 8 Hours, 160 Kmph Speed, Luxury Amenities – Reports
Delhi-Patna Vande Bharat Sleeper: Indian Railways passengers have been waiting eagerly for the new luxurious Vande Bharat Sleeper Express, which has been in the final stages of roll out and is being given final touches at the BEML factory. Passengers travelling between Patna and New Delhi are set to get a completely new travel experience as the much-awaited Vande Bharat Sleeper Train is expected to begin operations this month. The train promises the speed of Tejas, the comfort of Rajdhani, and the advanced technology of Vande Bharat — all in a sleeper configuration for the first time.
Designed for high-speed night travel, the train is being positioned as a premium option for long-distance passengers.
Trial Runs to Begin Soon
Two rakes of the Vande Bharat Sleeper Train are being manufactured at the BEML factory in Bengaluru. The first rake is expected to be ready and dispatched by December 12, after which trial runs will begin on the Patna–New Delhi route, reported Dainik Bhaskar. The train will cover around 1,000 kms in around eight hours.
Railways plan to start regular services before the New Year. The train is expected to run six days a week, departing Patna in the evening and arriving in Delhi the next morning. The return service will follow the same overnight schedule, reported Prabhat Khabar.
Speed and Performance Highlights
The train is designed to run at an operational speed of 160 km/h, with a maximum speed capability of 180 km/h. According to railway officials, the ride will be so stable that even tea kept in a cup will not spill while the train is running at full speed.
One of its key strengths is rapid acceleration and braking, allowing it to cover distances faster and reduce time spent stopping and restarting at stations.
Coach Composition and Seating Capacity
The Vande Bharat Sleeper Train will have 16 coaches with a total capacity of 827 passengers:
* 11 coaches of AC 3-tier (611 berths)
* 4 coaches of AC 2-tier (188 berths)
* 1 coach of AC 1st Class AC (24 berths)
Railways may increase the number of coaches in the future based on passenger demand. Ticket prices are expected to be around the fare of the Rajdhani Express.
Current Status of Vande Bharat Trains in India
At present, 164 chair-car Vande Bharat Express trains are operating across India. These semi-high-speed trains are manufactured at the Integral Coach Factory (ICF) in Chennai and have received strong passenger response.
Due to growing demand for comfortable long-distance night travel, the sleeper variant has been developed, with the Patna–Delhi route likely to be among the first to get this service.
What the Railway Minister Said
Union Railway Minister Ashwini Vaishnaw recently told the Lok Sabha that the sleeper version of the Vande Bharat train has been indigenously designed for medium and long-distance overnight journeys.
He said that two rakes have been produced and are currently undergoing trials and commissioning.
Key Features and Facilities in Vande Bharat Sleeper Train
The interior of the train is designed to provide a premium airline-like and hotel-style experience. Major facilities include:
Passenger Comfort Features
* USB-integrated reading lamps for night-time reading
* Real-time passenger information system with audio and video updates
* High-speed Wi-Fi and onboard infotainment system
* Modular pantry unit for freshly prepared onboard meals
* Touch-free bio-vacuum toilets
* Hot water shower facility in First AC coaches
* Ergonomic ladders for upper berths
* PRM-friendly berths and toilets for elderly and differently-abled passengers
Advanced Safety and Security Systems
* KAVACH anti-collision technology to prevent train accidents
* Integrated emergency talk-back units for direct communication with train crew
* Fully sealed gangways between coaches to prevent dust and enhance safety
* Automatic plug doors that close before departure
* CCTV surveillance in every coach to deter theft and ensure passenger safety
Timings of the Vande Bharat Sleeper Train
The train will run six days a week:
* Evening departure from Patna, Morning arrival in New Delhi
* Evening departure from New Delhi, Morning arrival in Patna
The Vande Bharat Sleeper has been specially designed to offer high speed, superior comfort, and a premium travel experience for overnight journeys.
Rebates paid by drugs firms to the NHS are being cut by more than a third next year following the recent tariff deal with the US.
The Government said the rebate costs for companies – the proportion of revenues from new branded medicine sales that drugs firms must pay back into the NHS – would fall to 14.5% in 2026 from 22.9% this year.
It comes after the UK-US tariff deal earlier this month, which will see zero tariffs on British pharmaceutical products imported into the US in return for the NHS raising spending on medicines.
As part of the deal, it was also agreed that repayment rates on NHS drug prices would be capped at 15% for the first three years.
This is the amount that drugs firms pay back to the NHS to ensure it does not overspend its allocated budget for branded medicines.
The Government said it is able to offset the lower rebate thanks to falling costs for medicines, in part driven by drugs coming off patent.
But Downing Street admitted soon after the trade deal that the agreement to increase the threshold for what the NHS can pay for new medicines by 25% will cost it around £1 billion extra a year by 2029.
The Association of the British Pharmaceutical Industry (ABPI) said the “high and unpredictable” rebate costs had been a “significant drag on UK life science competitiveness in recent years”.
Richard Torbett, chief executive of the ABPI, said: “It’s good that the amount of revenue companies will need to pay to the UK government has come down in 2026.”
He added: “However, this is only the first step in returning the UK to a more competitive position.
“Payment rates remain much higher than in similar countries, and there is work to do to accelerate the NHS’s adoption and use of cost-effective medicines to improve patient care.”
The Department for Health said the lower rebate costs should also make the UK an attractive place for investment by pharma firms, clinical trials and the early launch of new medicines.
Health innovation minister Dr Zubir Ahmed said that together with the tariff deal, “this will help secure and drive investment in the sector, ensuring Britain remains a powerhouse for life sciences for the benefit of our patients, our NHS and our economy”.
Science minister Lord Vallance added: “We need our brilliant life sciences companies to discover and get important new medicines to patients right across the NHS and to create jobs in the UK.
“This new rate helps achieve that.”
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