It might look like the dust is settling after a wild 18 months of pandemic-induced economic stasis. That was certainly the subtext of the Chancellor's Budget statement yesterday, in which Rishi Sunak opened the spending taps and set out the beginnings of his vision for a post-Covid world.
But Juliet Samuel says it is the economics underpinning Mr Sunak's announcements where the true risk lies, as she argues that the spectre of high inflation may yet wipe his smile away.
It came as the Office for Budget Responsibility warned that Britain faces a double squeeze on living standards as two decades of stagnating wages and spiralling inflation conspire against household finances.
To bring yourself up to speed quickly, see the key Budget changes at a glance - and what they mean for your money.
On a day that Mr Sunak and Prime Minister Boris Johnson visited a south London brewery to hail an overhaul of alcohol taxes, it was also revealed that:
- the number of families paying inheritance tax will double;
- pensioners will be left "out in the cold" by the double-lock;
- and council tax bills could rise by £40 without a referendum.
Mr Sunak's generosity will quickly come under further intense scrutiny when the looming cost-of-living crisis bites further.
Janet Daley says the Conservative are in serious danger of misreading the national mood. Many observers noted that it appeared to be a Labour Budget with a Tory twist.
Allister Heath warns that the Tories' apparent nightmarish conversion to Brownism can only end in catastrophe.
France detains British fishing boat in Brexit fish war
France has detained a British fishing boat and given a verbal warning to another fishing in waters off its coast. The British trawler was handed over to French authorities near the port at Le Havre overnight as tensions simmer over the post-Brexit fishing wars. Earlier, the UK Government vowed to retaliate if France carried out a threat to block British fishermen from its ports. A Downing Street spokesman said the French ultimatum to disrupt trade and hamper energy supplies will be hit with "an appropriate and calibrated response". Brussels Correspondent Joe Barnes explains the escalation of tensions.
Inside Singapore school that has taken over Oxbridge
It is not generally a source of great controversy - the league table ranking schools by how many pupils they send to Oxbridge. But in new figures, one school stood out for its unusual location: South-East Asia. The Raffles Institution, Singapore's oldest school, has scooped fifth position - meaning it is sending more pupils to the prestigious universities than Harrow. So how is it that a school on the other side of the world can get more offers from Oxford and Cambridge than so many closer to home? Annabel Heseltine explores the secrets of the £160-a-month school.
Today's political cartoon
View today's cartoon by Blower as he imagines Gordon Brown's reaction to the Budget. Matt is away.
Also in the news: Today's other headlines
Covid rules | The travel red list and hotel quarantine are set to be scrapped under plans to be considered by ministers today that would ease restrictions in the face of a declining coronavirus threat from abroad. Home Affairs Editor Charles Hymas understands the Cop26 climate change summit in Glasgow is a factor. Meanwhile, experts estimate three-quarters of children aged five to 14 in England have been infected with Covid, amid signs the epidemic in young people is falling.
- Labour | Angela Rayner is target of 'death threats and abuse'
- Blow for Sturgeon | Scotland misses renewable heat target by half
- Weather | Life-threatening floods set to hit parts of UK - forecast
- Calm down, calm down | Talking like Harry Enfield sketch not racism
- Royals | Duchess of Cornwall calls on men to end violence culture
Around the world: Call to arms in China
A young girl in the city of Handan, in China's northern Hebei province, is given the coronavirus vaccine at school. China is one of a handful of countries around the globe to begin vaccinating younger children against Covid-19. Other nations where children aged under 12 are being vaccinated include Cuba, where some as young as two are receiving jabs. Read more on how Covid is being tackled around the world.
Comment and analysis: Budget special
- Jeremy Warner | This is a smash-and-grab raid on our money
- Madeline Grant | Sketch: Pints, prosecco and record taxation
- Iain Duncan Smith | Anti-work legacy has finally been banished
- Matthew Lynn | Big-state Harold Macmillan is now back in office
- Roger Bootle | Tough decisions to fulfil the Brexit dream are dodged
Editor's choice
- Do you have 'Long not-Covid'? | What to do if you cannot shake this season's illnesses
- Philosopher Yuval Noah Harari | 'Why humanity faces its most critical decade yet'
- 15 Minutes of Shame | Monica Lewinsky's documentary is a missed opportunity
Sport briefing: Taking knee 'integral to England'
England players described how taking the knee had become "integral" to their cricket as divisions grew over Quinton de Kock's refusal to observe the anti-racism gesture. Opener Jason Roy said kneeling reflected the team's commitment to tackling racism, as both England and Bangladesh agreed to promote the anti-discrimination message before yesterday's T20 World Cup match in Abu Dhabi. In football, West Ham last night became the first team to beat Manchester City in the Carabao Cup in more than five years. Jason Burt reports on how City's bubble was burst.
Tonight's dinner
Margarita chicken fajitas | An easy twist on the famous Mexican dish. View the recipe. For more, try our Cookbook newsletter.
Your daily travel inspiration
Last-gasp 2021 travel | If you are seeking a burst of culture, sport, fine food or fun while catching some rays, we have the perfect places for you. Nick Trend rounds up 20 of the best winter sun holidays.
And finally... for this morning's downtime
Inside a midlife crisis | From staff walkouts over Dave Chappelle's new special to sliding subscriptions, behind its glossy veneer, is streaming giant Netflix in trouble? Stephen Armstrong explores culture wars, claims of "humiliated" staff and... old sitcoms.
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