Newslinks for Wednesday 6th August 2025

Reeves looking at huge tax hikes to fill £50bn black hole

“Rachel Reeves will have to increase taxes substantially this autumn to fill a £50billion black hole, economists warned last night. In a dire warning, the National Institute of Economic and Social Research said the Chancellor would have to find the equivalent of adding 5p to income tax to keep afloat by the end of the decade and meet her fiscal rules.  Research by the respected think-tank found that the ‘wafer thin’ headroom of £9.9billion Ms Reeves left herself last year has been wiped out, and there is now a budget deficit of £41.2billion. To fill the hole and maintain the buffer, she will have to find £51billion annually in higher taxes or lower spending by 2029/30. Despite announcing tax rises worth £40billion in last year’s Budget, Ms Reeves has repeatedly refused to rule out a fresh raid this autumn. Labour’s lack of an economic plan on entering government was also criticised. Shadow Chancellor Sir Mel Stride said: ‘Experts are warning Labour’s economic mismanagement has blown a black hole in the nation’s finances which will have to be filled with more tax rises – despite Rachel Reeves saying she wouldn’t be back for more taxes. Labour will always reach for the tax-rise lever because they don’t understand the economy. Businesses are closing, unemployment is up, inflation has doubled and the economy is shrinking. And Labour are refusing to rule out more damaging tax rises on investment.’ Professor Stephen Millard, deputy director of the National Institute of Economic and Social Research (NIESR), said: ‘When Labour were elected we had known for a good year or two that Labour were going to be elected, so the really disappointing thing from my point of view was that when they came in, there didn’t seem to be a plan on the table.” – Daily Mail

• Reeves facing £50bn black hole as tax pressure mounts – Daily Telegraph
• Reeves warned of ‘impossible trilemma’ on tax, spending and fiscal rules – Financial Times
• Millions of savers to face ‘hidden tax burden’ – CityAM
• HMRC could claw back VAT from private school advance fee schemes, experts say – The Guardian
• Thousands of company directors leave UK after Labour’s tax changes – Financial Times

Comment:

• Labour is conducting an assault on rural Britain with cruel family farm tax – Kemi Badenoch, Daily Express
• Rachel Reeves and 1 phone call she’s dreading – but it’s all her fault – Paul Baldwin, Daily Express
• The OBR has seen sense on migration. Will Rachel Reeves? – Ross Clark, The Spectator

> Today: Labour and tax. How does one accurately prospect the blood which can be squeezed from a stone?

> Yesterday: Lord Kinnock’s latest tax crusade would punish patients

One-in, one-out migrant deal with France falls flat – and offers loopholes

“Small boat migrants will be able to frustrate attempts to deport them to France under Sir Keir Starmer’s new returns deal by exploiting human rights laws, according to the terms of the treaty. Migrants will be ineligible for deportation if they have outstanding human rights claims or other legal challenges or claim they are under 18. These are among potential loopholes that threaten to undermine Labour’s attempt to end Channel crossings. The treaty also gives France and other EU member states an effective veto over which individuals are returned. The one-in, one-out deal with France came into effect on Tuesday. This will allow the first small boat migrants to be detained later this week, and removals may begin by the end of the month. For each small boat migrant returned to France, Britain will accept an equal number of asylum seekers who are in France. The treaty does not say how many will be exchanged and Yvette Cooper, the home secretary, refused to disclose a figure for fear it would aid people smugglers. The treaty’s small print revealed that British taxpayers will pay all transportation costs for migrants transferred to and from France. ” – The Times

• UK to pay for transport under migrant deal with France – Financial Times
• Yvette Cooper admits ‘no specified’ number of migrants to be returned under UK-France deal – ITV News
• Small boat migrants who lodge human rights claims will dodge removal to France under Labour’s new scheme – Daily Mail
• Labour to cap skilled migration – Daily Telegraph

Comment:

• Of all the harebrained schemes to smash migrant smugglers, Labour’s new One In One Out plan is worst of all – here’s why – Mike Graham, The Sun
• Keir Starmer’s smokescreen treaty with France will only escalate migration crisis – Richard Thomson, Daily Express
• Withholding facts about suspects risks endangering the British public – Joshua Rozenberg, Daily Telegraph

> Today: Patrick English: Public attitudes on immigration depend a lot on which immigrants you’re asking about

Neil Shastri-Hurst: Integration is essential, and mass immigration makes it impossible

US strikes its own Rwanda deal

“The Rwanda hostel spruced up with £20million of British taxpayers’ money to house our unwanted migrants is to receive its first deportees — from America. Rwanda is taking in 250 migrants thrown out of the US under Donald Trump’s mass removal programme. Some will enjoy hotel-quality facilities at Hope Hostel, which was readied under the then-Tory government’s deportation scheme last summer. The £700million plan was ditched when Labour won the election. Trump is now pushing ahead with his scheme. A Hope Hostel source told The Sun yesterday: “We are always ready to provide the best services to the customers.” Rwandan government spokeswoman Yolande Makolo confirmed those arriving in the country would be given support. She added: “Under the agreement, Rwanda has the ability to approve each individual proposed for resettlement. “Those approved will be provided with workforce training, healthcare and accommodation support to jump-start their lives in Rwanda.” The initial agreement — signed last month — is for 250 people but can be extended if both countries agree. Britain signed its agreement in 2022.” – The Sun

• Rwanda to accept 250 illegal migrants deported from America – The Times
• Boris Johnson blasts Keir Starmer as US set to deport migrants to Rwanda – Daily Express
• Boris Johnson hails US plan to deport hundreds of illegal migrants to Rwanda – Daily Mail

Comment:

• If you come to Britain and can’t support yourself, you must leave – Katie Lam, Daily Telegraph

> Today: John Redwood: The British public are right to demand a real border policy

News in brief:

• Did Pride protect a predator? Whistleblowers were ignored for years – Julie Bindel, Unherd
• Labour’s voter fraud loophole – David Scullion, The Critic
• Recognising Palestine won’t solve Starmer’s problems – Bruce Anderson, CapX
• How the far-left devours progressive businesses – Nick Cohen, The Spectator