The political and economic mood across Europe grew heavier on Wednesday as the UK government prepared for a high-stakes autumn budget, Labour’s deputy prime minister admitted to a tax misstep, Brussels pushed forward on a long-delayed South American trade deal, and a German court heard explosive testimony in an espionage case linked to China.
Reeves pins budget date amid rising pressure
Chancellor Rachel Reeves confirmed that the UK’s autumn budget will be delivered on 26 November, a moment widely expected to test Labour’s economic credibility.
Reeves conceded the economy “is not working well enough for working people” but rejected claims it is “broken.”
With the Treasury commissioning fresh forecasts from the Office for Budget Responsibility, investors and households alike are bracing for potential tax rises.
The late-November timing gives Reeves scope to prepare the political ground during a turbulent conference season, where expectations of fiscal tightening are likely to dominate debate.
Rayner admits stamp duty error on seaside flat
In a fresh blow to Labour, Deputy Prime Minister Angela Rayner admitted underpaying stamp duty on her £800,000 flat in Hove and has referred herself to the prime minister’s ethics adviser.
She now faces an additional bill estimated at up to £40,000.
The disclosure has triggered accusations of hypocrisy, given the likelihood that Reeves will target property owners in her autumn budget.
Rayner, who said she “deeply regretted” the error, is under mounting pressure at a time when Labour is trailing Reform UK in the polls, raising questions over her political survival.
EU edges closer to Mercosur trade pact
The European Commission on Wednesday presented its long-awaited trade accord with South America’s Mercosur bloc for approval, marking a significant step toward finalising the EU’s largest-ever trade deal.
The agreement, first struck in December after 25 years of talks, now requires ratification by EU governments and the European Parliament.
France and Poland have led opposition, citing the risk to European farmers, particularly beef producers.
In a bid to win them over, Brussels floated the possibility of limiting preferential imports if the agricultural sectors come under strain.
Germany and Spain, by contrast, argue the deal is vital to diversify trade away from both the US and China.
AfD politician testifies in alleged China spy case
In Germany, far-right politician Maximilian Krah appeared as a witness in the trial of his former parliamentary aide, Jian G, accused of spying for Chinese intelligence.
Jian, who served as Krah’s assistant in the European Parliament, is alleged to have collected hundreds of sensitive documents for Beijing, some classified, while using his accreditation to gain access to internal EU procedures.
The case has sharpened concerns about foreign infiltration of European institutions and cast an uncomfortable spotlight on Krah, the former AfD lead candidate in last year’s European elections.
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