An overnight briefing to the FT confirms that Starmer and Reeves have reversed previous proposals to raise the basic and additional headline rates of Income Tax at the Winter Budget for fear of an uncontrollable backlash from the public and Labour backbenchers. 12 days until the Winter Budget, 10 days after Reeves gave a speech whose purpose was to provide cover for breaking the manifesto…
The paper says one option being explored is to lower thresholds, which Guido predicted last month. 10-year gilt yields have reversed a downward trend for this week and are climbing this morning in reaction to the news. The same is the case with 30-year yields…
Sterling is down 0.3% against the euro and dollar too. The move is a blow to Budget Man Bell and his Resolution Foundation stooges, who have been pushing a 2p hike combined with a 2p cut to Natonal Insurance. Reeves will now have to find a selection of more complex tax rises which will do more to hurt economic activity. Can this government not get anything past its MPs?
A BBC spokesperson said chairman Samir Shah has sent a personal letter to the White House to apologise for the editing of the speech in the Panorama programme, but added: “While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree there is a basis for a defamation claim.” Oops…
At the time of going to pixel, Morgan McSweeney still has a job. But yesterday Starmer gave him the ‘full confidence’ kiss of death, and today all fingers point towards Morgan for starting the anti-Streeting briefing war. So Guido is just doing the Prime Minister a favour by getting this out of the way early…
Tim Allan – The ringleader of the anti-Morgan cabal and currently No10’s Executive Director of Communications. Could Allan take Downing Street to infinity and beyond?
Tom Baldwin – Starmer’s Hagiographer. Said to be hungry for a comms job in No10, with the likes of Alastair Campbell thought to be lobbying for him. Known for writing the Observer puff piece which blew up Starmer’s messaging on immigration…
Jill Cuthbertson – Currently Morgan’s loyal deputy. Spent three years working for Starmer as Director of LOTO’s Office. Previously worked for Gordon Brown and Ed Miliband. So if Starmer also falls, she could stay in post for the Miliband administration…
Ben Nunn – Rachel Reeves’ new Chief of Staff. Would be a big promotion but is said to be ambitious…
Darren Jones – Chief Secretary to the Prime Minister. Would save on the wage bill if they folded the role into his current remit…
Alastair Campbell – Podcaster and Twitter addict. Spent today screaming about Robbie Gibb and the BBC, so clearly needs a new hobby. Back to Number 10 to atone for last time?
The News Agents – Why not? It would make little difference to their output. Although it may make Sopel’s return to Bluesky even less likely…
Emilio Casalicchio – Playbook PM author. Produces material for the morning Playbook’s ‘mea culpa’ section…
Others can still throw their hat in the ring, but time is clearly short. Refresh those CVs now – don’t worry too much about Starmer checking them closely…
As Rachel Reeves scratches her head over how best to kill growth at the Winter Budget in just under two weeks, Guido Fawkes and Cut My Tax are launching a joint campaign against the heavily-rumoured exit tax. A disaster that will destroy what little remaining trust in the government that still exists on the part of entrepreneurs and the business community…
The tax as specified in pre-Budget briefings would impose a 20% levy on unrealised gains from all UK business assets when someone becomes a tax resident of another country. This includes shares in private companies and other instruments, even if they aren’t sold on departure. Madness…
Guido has previously reported on how calamitous this tax raid would be. Just this week, Britain’s fintech big beasts warned of an IPO exodus, and hundreds of founders have signed an open letter opposing the measure. It’s time to go further…
Below are ten key reasons why an exit tax is a dead end, and should be opposed. We at Guido and Cut My Tax will have more to say on this in the coming days as the Winter Budget looms. Sign up to our free daily email for more…
Click here to read the ten reasons why you should oppose the exit tax:
Continue reading “Guido and Cut My Tax Launch Campaign to Stop the Exit Tax”
Starmer chose to ignore a direct warning about Mandelson’s relationship with Jeffrey Epstein in official advice from the government’s head of Propriety and Ethics.
The PM has claimed ignorance of the deep relationship that Mandelson held with Epstein thanks to his being misled by the former ambassador. As co-conspirators may remember the claim that the leaked emails changed circumstances led to the tortured line:
Guido can reveal the contents of the advice presented to Starmer with regard to the matter. Darren Tierney, who was at the time of Mandelson’s appointment in 2024 the Director General of the Propriety and Constitution Group, completed a full briefing. It included the following section:
“After Mr Epstein was first convicted of procuring an underage girl in 2008, their relationship continued through to 2011, beginning when Lord Mandelson was Business Minister and continued after the end of the then Labour government. Lord Mandelson stayed in Epstein’s House while he was in jail in June 2009. You will wish to consider his suitability given this and the other information in this note.”
This report was referred to by Cabinet Secretary Chris Wormald and FCDO Permanent Secretary Olly Robbins before the Foreign Affairs Select Committee last week. Wormald refused to specify its contents…
The Cabinet Office said it would not comment on the wording of the note. It was brought in physical form to the PM’s office by a junior official in the Propriety team. It was prepared by civil servants and signed by Tierney. New emails show Mandelson was in touch with Epstein until as late as 2016. At this point Starmer’s political judgement was so bad in appointing Mandelson it may as well not exist…
From October 1st, 2026, the UK Government will introduce Vaping Products Duty on all vaping liquids. The rate is £2.20 per 10ml, and after VAT, that’s £2.64 added at retail per 10ml bottle. This tax changes everything from shop pricing to supply chains to how vapers think about costs.
The Vape Tax Explained
That pushes prices close to tobacco costs for heavy vapers or bulk buyers.
Why This Tax Now?
Youth Vaping: Policymakers want to reduce underage use. Revenue: The funds go to health and NHS projects, though many see it as a cash grab that hurts harm reduction. Mixed Messages: The government promotes quitting smoking but now discourages vaping. The contradiction isn’t subtle.
Small Business Impact
UK’s independent vape retailers face real threats:
Supplier Problems: Smaller shops can’t negotiate better deals to absorb costs. Price increases hit consumers directly. Price Shock: The gap between vaping and smoking costs shrinks, removing a key reason people switch. Range Cuts: Independents will reduce product variety. Some will close if margins disappear.
Ecigone.co.uk, an established UK online vape store, deals with these concerns daily. Their owner comments: “We all knew tax would come one day, but taxing vape juice with no nicotine is absurd when the same ingredients can be bought for baking and other uses. Just because it’s labelled as a vape product shouldn’t mean automatic taxation. For nicotine containing e liquids, I support some tax but not £2.20 per 10ml regardless of strength. Lower nicotine strengths should have lower tax rates.” Their customers regularly express worry about affording vape products and potentially returning to smoking when prices jump.
The Consumer Problem
Millions vape to avoid cigarettes for cost and health reasons. Now:
Costs Hit Hard: Heavy vapers and budget conscious users face serious financial pressure. Health Trade Off: The NHS promotes vaping to quit smoking, but expensive juice risks pushing people back to cigarettes or unregulated products. Black Market Risk: High legal prices create opportunities for illegal sellers.
Industry and Policy Response
What Happens Next?
By October 2026, shops must: Register with HMRC and follow duty stamp packaging laws Change record keeping and reporting systems Watch for black market activity while managing regulatory changes
2025 will see industry voices and independent stores fighting for modifications or relief measures.
Conclusion
The 2026 vape tax marks a turning point for UK vaping. While aimed at reducing youth uptake and funding the NHS, it creates serious challenges for small businesses and threatens smoking cessation progress. Independent Vape Stores like Ecigone must innovate, adapt, and fight or risk being pushed out as policies change. The next twelve months determine both public health outcomes and the survival of Britain’s independent vape retail sector.
Former leader of the SNP in Westminster Ian Blackford told Times Radio why he believes Nicola Sturgeon’s claim that she spent no time in the kitchen and therefore didn’t see any of her husband’s purchases:
“She doesn’t have a passion for cooking.”