New tax on vapes announced in Budget to discourage non-smokers from adopting habit
The UK government plans to implement a new tax on vaping products starting October 2026, announced by Chancellor Jeremy Hunt during the Budget speech. This move aims to deter non-smokers from starting vaping while maintaining vaping as a cost-effective alternative for smokers wishing to quit. The tax's specific details will be determined through a consultation process. Currently subject to a 20% VAT but exempt from excise duty, vaping products will see this change with the new tax. Additionally, the government plans to increase tobacco duty as a one-off measure, ensuring vaping remains less expensive than smoking. This step aligns with the government's broader strategy, including proposed bans on disposable vapes and restrictions on vape flavours and packaging. However, the vaping tax has drawn criticism. Simon Clark from Forest, a smokers' advocacy group, called it counterproductive, and Christopher Snowdon of the Institute of Economic Affairs criticised it as a "cynical cash grab," detrimental to those who have switched from smoking to vaping.
Birmingham City Council signs off 'devastating' cuts
Birmingham City Council, Europe's largest local authority, has approved significant service cuts to address a financial crisis, including a 21% increase in council tax over two years. The council, facing bankruptcy, must save £300m, resulting in "devastating" measures. Council Leader John Cotton expressed deep regret for the impact on city residents. Last September, the council announced its inability to meet financial obligations, leading to a section 114 notice declaration, signifying bankruptcy. This was prompted by equal pay claims amounting to £760m and a £80m overspend on a problematic IT system. These austerity measures, labelled unprecedented by Cotton, have prompted widespread criticism from local Conservatives and protests from residents. Up to 600 council jobs are at risk, and public services like libraries, parks, and cultural projects face reductions. Other measures include reviewing school transport, eliminating arts funding, selling off community centres, reducing fly-tipping enforcement, and introducing parking charges in country parks. The financial outlook remains challenging for Birmingham, with looming equal pay liabilities and IT system overspends. Despite a £1.25bn government bailout loan, the city faces the daunting task of repaying this through asset sales. See also
Understanding why our young people have such poor mental health
A recent study by the Resolution Foundation revealed that 34% of UK youths aged 18-24 exhibit symptoms of mental disorders, the highest rate among all age groups. This marks a significant shift from 20 years ago when this demographic had the lowest incidence of such disorders. A psychologist studying young wellbeing, attributes this rise to unparalleled pressures young people face today in academic, professional, and social spheres. These pressures include academic stress, performance anxiety, and fear of failure. External factors like the cost of living crisis and the pandemic's impact on isolation and lost life experiences exacerbate these pressures. A survey by King’s College London and the Orygen Institute found that the public perceives today's youth as having tougher job prospects and financial challenges compared to previous generations. The job market, transformed by globalisation and technological advances, demands specialised skills and higher education, heightening the visibility of both success and failure. Social media plays a crucial role in worsening mental health, creating unrealistic standards and intensifying feelings of inadequacy and isolation. The pandemic further heightened these issues, particularly among vulnerable groups. Despite increased awareness and destigmatisation of mental health, there's now pressure on individuals to manage their mental wellbeing, which can be overwhelming, especially for those in challenging circumstances. There is no simple solution. The advice is to engage actively in life, step out of your comfort zone, and celebrate the small victories.
NHS England leaders welcome £6bn budget boost but say much more is needed
NHS England leaders have responded positively to the £6bn budget increase from Chancellor Jeremy Hunt, aimed at addressing rising demands, tackling the care backlog, and upgrading outdated IT systems. The budget for 2024/25 will see a £2.5bn increase for day-to-day operations, raising the total to £164.9bn, slightly higher than this year's £163.2bn. Julian Hartley, CEO of NHS Providers, viewed the funding as a temporary relief from financial strains, while Matthew Taylor, chief of the NHS Confederation, felt the amount was insufficient to significantly improve the service. Additionally, £3.4bn over three years is allocated to enhance NHS productivity, with £2bn targeted at modernising inefficient IT systems. This investment is expected to save time and resources, potentially leading to £4bn savings over five years. The budget also includes £430m to improve patient access to care and reduce waiting lists, partially through enhanced use of the NHS App. However, adult social care remains underfunded, causing concern among organisations like the Association of Directors of Adult Social Services and Age UK. The budget also acknowledged the need for reform in children's residential care, setting aside £165m to curb profiteering. Yet, it falls short in addressing the housing crisis, with no substantial investment for new social homes and a capital gains tax cut that could negatively impact renters.
