A major high-speed rail line in the north of England is reportedly being reviewed and capital gains tax could rise as the Prime Minister tries to find £50 billion in savings and tax rises. It followed earlier reports that the construction of the Sizewell C nuclear plant in Suffolk could be reviewed or delayed, but Downing Street dismissed this, insisting plans for the site are not being reviewed. On Friday, Business Secretary Grant Shapps hinted that spending commitments such as Northern Powerhouse Rail were likely to be reduced. Meanwhile, the chancellor is reportedly considering increasing taxes on the sale of assets such as shares and property as he weighs up “difficult decisions” to tackle a £50bn black hole in the public finances. He is also considering raising tax on dividends, in a move that would hurt businessmen. When asked about the reported potential rise in capital gains tax, minister Chris Phillip told ITV News he did not know what the Treasury’s plans were and said “we will have to wait to find out” what the autumn statement on November 17 provides. He said the chancellor would “do whatever is necessary to keep our country’s finances in order” and added that the UK was in “very difficult circumstances globally”. “We are in, globally, very difficult times,” Chris Philp told ITV News The reports come as the country has been hit by more bleak economic news, with the Bank of England raising interest rates for the eighth straight time and the UK heading into what could prove its deepest recession in at least a century. As the government tries to rein in spending, there were reports on Friday morning that the Sizewell C nuclear power station in Suffolk would be inspected, but those reports have since been dismissed by the prime minister’s spokesman. The spokesman said: “It’s not accurate to say we’re scrapping it.” Boris Johnson previously pledged £700m of taxpayers’ money for the project in his last policy speech in early September, but a government official later told the BBC: “We are looking at every major project – including Sizewell C.” Sizewell Nuclear Power Stations. Credit: PA The Conservative manifesto won the 2019 election on the promised Northern Powerhouse Rail between Leeds and Manchester. Liz Truss championed the line while prime minister and Boris Johnson boasted of its achievement in his farewell speech from Downing Street. Northern Powerhouse Rail. Credit: PA But Mr Shapps told the BBC: “The line itself can deliver a 33-minute journey from Manchester to Leeds, almost quadruple the capacity of that line and do it without having to wait an extra 20 years after delivery as much as the upgrade can. I am doing. “It didn’t make much sense to go and blast new tunnels through the Pennines. “It is not true to say that we are not implementing what we said we would do to raise the level of the North.” Downing Street has said it is committed to the Integrated Rail Plan, but that Transport Secretary Mark Harper is reviewing how high-speed services are achieved. The Prime Minister’s official spokesman said: “We are committed to the Integrated Rail Plan which delivers a high-speed line and transport improvements across the north and the Government believes that this approach will deliver these benefits sooner than alternative plans. “There are a number of options for how we deliver these high-speed services in Leeds, for example, and the Transport Secretary is looking at them carefully.” “We weren’t talking about spending cuts until this mini-budget,” said Labor MP Jonathan Reynolds. The potential sweeping cuts ahead of the November 17 budget follow the Bank of England’s warning of the deepest recession on record. And the government’s job was made harder by the disastrous £45bn tax handout unleashed by Ms Truss and Kwasi Kwarteng when he was prime minister and chancellor. Questions remain about people in Mr Sunak’s government, including Police Minister Chris Phillips. secretary general of the Ministry of Finance under Mr Kwarteng. On Friday, Mr Philp denied that what Labor has called a “Tory premium on people’s mortgages” in the wake of the Bank rate hike was due to government mismanagement. Mr Philp says the Prime Minister and Chancellor have had a “positive effect” on the economy He said the dollar-pound exchange rate and government bond yields had rebounded after suffering in the wake of the mini-budget. Although the Bank of England raised rates yesterday, Mr Philp said the US also needed to raise rates, adding: “What we’re seeing is a global set of circumstances.” Want a quick and special update on the biggest news? Listen to our latest podcasts to find out what you need to know…
