Budget news live: Latest updates as national living wage to rise

Workers will be “bitterly disappointed” when they see “almost half of any rise [in income] snatched away by the Treasury before it even reaches their bank accounts”, the Liberal Democrats have said.

“Instead of a fair deal, families across the country are facing a Budget nightmare with a soaring rise to the cost of living paired with tax hikes left, right and centre,” Liberal Democrat Treasury spokesperson Christine Jardine said in a statement.

Earlier this year, Rishi Sunak increased National Insurance Contributions for workers by 1.25 per cent to help pay for NHS and social care reforms and also ended the £20-a-week Universal Credit uplift.

Labour has dismissed what it calls the government’s “underwhelming offer” on pay, after it was announced that the national living wage is set to rise to £9.50 per hour.

“Much of it will be swallowed up by the government’s tax rises, Universal Credit cuts and failure to get a grip on energy bills,” Bridget Phillipson, shadow chief secretary to the Treasury, said.

“It’s clear that Labour is the only party serious about improving the prospects of working people.”

Our reporter, Matt Mathers, has more details below on the warnings for drivers today over the rising price of petrol in the UK:

A member of West Lothian Council criticised the Scottish Labour Party for being “weak on the union” as she announced she would be leaving the party to join the Scottish Conservatives.

Angela Doran-Timpson claimed some Labour councillors would “even be happy” for Scotland to have a second independence referendum, so-called the indyref2, and accused the party of not being strong enough in standing up to the SNP.

Ms Doran-Timpson, who represents the Broxburn, Uphall and Winchburgh area, said:

“Over and over again, Labour have been weak on the union and not strong enough in standing up to the SNP. At council meetings, they have not been prepared to oppose the SNP. Some in the Labour group would even be happy to see indyref2.

“I am joining the Scottish Conservatives because they are the only party strong enough to stop the SNP and the only party that stands up for Scotland’s place in the United Kingdom every time.

“As a work coach, I firmly believe we must be absolutely focused on creating more jobs and helping people back into work above all else. Our top priority has to be Scotland’s recovery, not another referendum.”

Scottish Conservative leader Douglas Ross said Ms Doran-Timpson’s move “proves once more” his party is the “real alternative for working people across Scotland who want to remove the SNP”, adding: “More and more ex-Labour voters, just like Angela, have decided to vote Scottish Conservative in recent elections.”

Author and Guardian columnist Owen Jones pours cold water on the government’s claim to be increasing the national living wage in Wednesday’s Budget.

The national minimum wage for adults is to rise to £9.50 in this week’s budget, it has been reported.

The rate, also know as the national living wage, is currently at £8.91 – meaning a 6.6 per cent increase.

Follow our policy correspondent Jon Stone’s breaking report here:

As Rishi Sunak pledges billions to the NHS, our health correspondent Shaun Lintern asks what good that can do when there aren’t enough health workers to make it worthwhile. He writes:

Successive governments have dodged the biggest challenge facing the NHS – and that’s the lack of enough staff to deliver the care patients need. As Rishi Sunak prepares to write another big cheque for the health service, this unaddressed question is looming larger than ever.

The new £6bn capital investment to help set up an additional 56 community diagnostic hubs on top of the 44 already in train is the right thing to do to cut the huge waits for CT scans and X-rays.

NHS waiting lists have hit a record level of 5.74 million, with thousands of patients waiting more than a year. The challenge is huge and comes on top of existing day to day demands.

So, who will do this extra work? Read the full report here:

More than 5,000 businesses have tapped into a government scheme to help them recover from the pandemic, in a slow take-up of new support compared with what was offered in the early days of lockdown.

The British Business Bank said £822.8m had been borrowed by 5,137 businesses across the UK since the Recovery Loan Scheme was launched in April.

About 1,000 more firms have been told they can borrow up to £200m, but have yet to tap into the money, analysis by the PA news agency shows.

The 76 banks that are part of the scheme are funnelling money into the recovery much more slowly than when they were trying to rescue businesses from collapse last year.

At this point in the life of the Coronavirus Business Interruption Loan Scheme (CBILS), which launched in March 2020, the banks had approved £15.45bn of loans to 66,585 companies.

The need at this point is much lower than it was as companies tried to stave off potential collapse after being forced to close, industry experts say.

Chancellor Rishi Sunak will reportedly announce a rise in the so-called national living wage in Wednesday’s Budget.

The news follows reports by BBC News and ITV’s Robert Peston. Here’s the latter with a lengthy thread on the topic: