Good morning. My thanks to Georgina, Simeon, Sam, Jen and Jim for minding the shop while I was on holiday. I had a lovely time in my own company pottering around my own city. (My advice: don’t bother with the British Museum’s Silk Roads exhibition. Go to the Sir John Soane Museum instead.)

The biggest event in the life of this young government is next week at the Budget on October 30. Some thoughts on a scoop from my colleagues below.

It’s a drag

The most important policy choice made by any British politician in this parliament was ultimately made in the last one: when the Labour leadership decided that they were better off matching the Conservative party’s commitment to not raise income tax, value added tax or national insurance.

The calculation they made was that it would be harder to get into office with a clear tax policy difference between them and the Conservatives, than it would be to stay in government navigating that constraint.

No one was ever told how things would have turned out: on the one hand, you can look at how large the Labour majority was and go “well, they probably could have got away without that one”. On the other, given that the Labour party did not get all that many votes you can go “well, it was actually an intensely shallowly won majority, so they probably needed every vote they could get”.

As I’ve written before, I think both the Conservatives and Labour would have been better off just fronting up the actual political and policy choices they were going to have to make, but I am beginning to bore myself on that topic so I am going to restrict myself to saying “well, I wouldn’t have started from here” to, ooh, once a fortnight.

In the here and now, the two most important pledges in the minds of the party’s voters, according to Labour’s own focus groups, are to turn around the NHS and that pledge not to increase taxes. Focus groups are not infallible but given they will ultimately shape the Labour’s political choices, they might as well be.

Of course, those two pledges cannot be reconciled. So the government will hope that when Rachel Reeves avoids raising rates of income tax, national insurance and value added tax, but increases tax in all sorts of other ways and uses that revenue to increase public spending, particularly on the NHS, it’ll be thanked for it. One way that Reeves will try to bridge that gap, George Parker and Sam Fleming reveal, is by prolonging the freeze on personal tax thresholds.

It means that between them, the governments of Rishi Sunak and Keir Starmer will have pulled an awful lot of middle earners into the higher rate of tax. As it stands, thanks to Sunak, income above £50,270 is taxed at 40p to the pound: which is very far from the type of earner that the higher rate was designed for.

It seems to me that there are three important reasons to have different rates of income tax, in no particular order: a) raising revenue, b) making your tax system more progressive, and c) encouraging people to earn more.

An unnoticed achievement/demerit (delete according to your preference) of the Conservative governments since 2010 is that the UK tax system is far more “progressive”: the highest earners pay for a lot more of it and many more low earners pay less. But it has scored less well on a) and in my view on c), though some of the changes Hunt made in his last Budget did helpfully remove some of the disincentives his predecessors had erected.

One reason for that is although making your tax system more “progressive” is always popular, in different ways a) and c) are politically difficult. A continuing freeze on thresholds does, at least, broaden the tax base by increasing the proportion of people who actually pay income tax.

This is a wheeze with a happy recent history for Labour, in that fiscal drag occurred under Tony Blair and Gordon Brown when Labour came into office, after the party similarly promised not to increase income tax and Labour was re-elected in a landslide. But it is also a wheeze with an unhappy recent political history, in that it is one of the main revenue-raising levers pulled by Rishi Sunak and Jeremy Hunt during Sunak’s premiership, and the Tories . . . weren’t.

Now try this

I also very much enjoyed my usual morning with the FT Weekend, particularly as I was in it this weekend: I did the lunch with the FT, with the historian David Olusoga.

There’s still time to receive our “The Best of Lunch with the FT” newsletter, a one-off series that pulls together highlights from the archive. Sign up to get it free every Sunday until November 17 here. Inside Politics is also still running a special offer for non-FT subscribers, who can receive our newsletter free for 30 days.

Top stories today

MILLIONS of households face a £218 a year bill rise as part of a huge TV shake-up.

A new report has revealed that households currently reliant on terrestrial TV could face additional costs of £18.17 per month if forced to switch to internet-only TV.

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Free-to-air, terrestrial broadcast TV, which millions watch daily using an aerial, is only secure until the early 2030s, when current licences expire, according to consultancy firm EY.

Some industry experts believe the government should actively phase out terrestrial TV to encourage a broader shift to online viewing which is provided solely via a broadband connection.

They argue that this approach is warranted, given that the share of total TV viewing via linear platforms (aerial and cable) has fallen below 50% for the first time.

And in a report released in May, regulator Ofcom said that broadcasters had “voiced concerns” about the commercial viability of maintaining the current terrestrial infrastructure beyond the mid-2030s.

However, EY said internet connections are generally less reliable than terrestrial TV, and millions remain disconnected.

The consultancy firm’s report estimates that in 2040, there will be 4.3million households without high-speed broadband.

A full switchover to internet-only TV viewing would cost £888million in additional annual fixed broadband subscription costs for these households who otherwise would not take it, equivalent to £18.17 per month per household, or £218 per year.

As well as the ongoing costs of a fixed broadband connection, millions of households could also face the upfront costs of new TV equipment and installation support.

David Coulson, partner, economic advisory at EY, said: “If a switch were made to distribute TV exclusively over the internet, even by 2040 approximately four million homes would still need broadband and set-top-box upgrades.

“This is forecast to cost government and consumers over £2billion to set-up, plus a further £900million each year to cover ongoing broadband fees and to support vulnerable users.”

Broadcast 2040+, a coalition of 35 organisations, is urging the UK government to publicly commit to safeguarding terrestrial TV and radio services until 2040 and beyond.

A spokesperson for the campaign said: “This report lays bare the hidden cost of any proposed switch-off of terrestrial TV.

“It would mean vulnerable people being asked to pay more, risk disconnecting millions from universal access to TV.

“The report also makes clear that this costly disruption is not necessary.

“The UK’s current hybrid model of TV, with terrestrial operating alongside online streaming as complementary services, works well and gives us the best of both worlds.”

CHECK FOR A FREE TV LICENCE

Watching live TV without a licence can land you in hot water, but you could be entitled to a discounted – or even free – licence.

The price of a TV licence rose from £159 to £169.50 a year in April.

This fee can be paid in one sum or in quarterly or monthly instalments.

You must have a TV licence if you watch TV as it is broadcast – live TV – on any channel, or watch programmes on catch-up on the BBC iPlayer.

You don’t need a TV licence to use streaming services or to watch any other channel’s catch-up service.

You can claim a free TV licence if you’re 75 or older and either receive pension credit yourself or live with a partner who gets the benefit.

You can apply for a free licence when you’re 74, but will still have to pay until the end of the month before your 75^th birthday.

You can apply for your free licence online or by calling 0300 790 6071.

Other individuals could also be eligible for a discounted TV licence if they live in residential care or sheltered accommodation or if they’re registered blind.

If you live in sheltered accommodation or residential care and are over 60 or disabled, you can get a licence for just £7.50.

If you’re registered blind or live with someone who is, you’re in line for a 50% discount.

The licence must be in the name if the person registered blind, but if your existing licence is not in their name you can make an application to transfer it.

You can apply for the discount online by visiting tvlicensing.co.uk/reducedfee.

THE London Underground is essential when you want to travel around the capital.

Some who aren’t experienced in taking the tube may struggle with reading the maps but the drivers know exactly what they’re doing.

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How much do Tube drivers earn?

During the initial 12-16 weeks training, trainee drivers can earn up to £32,375.

They can also obtain free travel around London for themselves and a partner as well as having overtime rates of around £36 an hour.

As of October 2024, drivers earn £67,500 but rejected a proposed pay increase to £70,000 in August.

A night train operator earns around £55,000 to £59,999 per year according to the Transport for London’s (TfL) Copy of Job Titles and Responsibilities of Senior Staff.

Inspectors and operators earn from £60,000 to £64,999 a year.

There is another role, known as a trainer, and this person is in charge of not only offering training to newcomers, but also the whole driving team, to always keep them up-to-date with the latest updates.

They earn the same salary as an inspector.

They can retire on a reduced pension at the age of 50 or a full pension at 60 years old.

What hours do they work and how much holiday do they get?

Drivers tend to work 36-hour weeks and have 43 days of annual leave, including bank holidays.

Shifts can start as early as 4.45am and end as late as 1.30am.

The drivers cannot drink alcohol for eight hours before a shift starts.

They are sometimes asked to work as many as 17 weekends in a row.

What are conditions like on the Underground?

Tube drivers are expected to maintain a high level of concentration in a dark cabin with nobody for company.

The work is repetitive, with the amount of driving varying between lines.

They also have to maintain a good level of focus and not be feared by the fact that they are responsible for many passengers aboard on the train.

How do you become a Tube driver?

Unless you already work for TfL, applying for a job can be difficult as they don’t tend to be advertised to the public.

Publicly advertised TfL roles include applying to become a customer service assistant.

You can look for TfL vacancies on their website.

Boeing has offered striking machinists a 35% pay rise over four years in a new contract proposal they hope will end a month-long strike.

About 33,000 unionised workers, mostly in Seattle, will vote on Wednesday whether to accept the offer from the aviation giant.

They have been on strike since 14 September, halting production of the firm’s 737 MAX and its 767 and 777 planes.

The company’s bottom line has been so hurt that it announced earlier this week it was seeking an addition $35bn in funding. It also said it would need to lay off 17,000 workers – about 10% of its work force – in November.

“The future of this contract is in your hands,” the union told workers on Saturday.

Union membership had previously rejected an offer that included a 30% salary bonus, saying it was not enough to cover cost-of-living increases.

The union was seeking a 40% salary bump and the reinstatement of a defined-benefits pension, which guarantees an income in retirement.

Although the latest offer is closer to the desired salary increase than the previous offer, it does not include a defined-benefits pension, which would guarantee specific monthly benefits upon retirement.

It does include a $7,000 (£5,365) bonus if they accept the deal, reinstated incentive plan and enhanced contributions to workers’ retirement plans, including a one-time $5,000 contribution plus up to 12% in employer contributions, International Association of Machinists and Aerospace Workers Local 751 said.

The strike has dismayed the Biden administration.

Acting US Labour Secretary Julie Su met union representatives and Boeing executives in Seattle this week to encourage a resolution. The company plays an important role in the US economy.

It has also been under scrutiny since an incident in January when a defect caused a panel to blow out on a new Alaska Airlines Boeing 737-MAX jet shortly after takeoff.

The Federal Aviation Administration has barred the planemaker from increasing production, and the agency opened a new safety inquiry into Boeing on Friday.

In July, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and to pay at least $243.6m (£187m) after breaching a 2021 deferred prosecution agreement, in relation to two 737-MAX planes that were lost in nearly-identical accidents that cost 346 lives over five years ago.

Inderjeet Singh Gosal says he is not afraid to die for an independent Sikh homeland in India’s Punjab region.

The 35-year-old’s declaration sounds incongruous as he sits in his comfortable home in Toronto’s suburbs. But after the assassination of his predecessor as head of the Khalistan movement, Hardeep Singh Nijjar, the risk is real.

“I know what I signed up for, death doesn’t scare me,” Gosal said. “India’s threats or any assassination attempts would not stop my effort for . . . Khalistan.”

This week Justin Trudeau, Canada’s prime minister, expelled six Indian diplomats, including the high commissioner, because of their alleged involvement in the killing of Nijjar, who was gunned down in Vancouver in June 2023.

Trudeau on Monday said: “We will never tolerate the involvement of a foreign government in threatening and killing Canadian citizens on Canadian soil, a deeply unacceptable violation of Canada’s sovereignty and of international law.”

India, which sees the Khalistan activists as terrorists, has denied any involvement and expelled six Canadian diplomats in response. It accuses Ottawa of tolerating violent extremism that has cost the lives of its citizens.

India has levelled the same accusation at the US. Last week, federal prosecutors charged an Indian government official with orchestrating a plot to murder a Sikh activist in New York City. India has designated that activist, Gurpatwant Singh Pannun, a terrorist under its Unlawful Activities (Prevention) Act.

The tit-for-tat expulsions between India and Canada are the latest episode in the increasingly fraught relations between Ottawa and New Delhi over the activities of Canada’s large Sikh community.

The movement for a sovereign Sikh state called Khalistan dates back to India’s independence from Britain in 1947 and gained momentum after anti-Sikh killings in the wake of Prime Minister Indira Gandhi’s assassination in 1984.

Sikhs such as Gosal describe the violence as a “genocide” that forced thousands to flee India, many to Canada. Some 771,790 Canadians identified as belonging to the Sikh faith in the 2021 census, making it the largest Sikh community outside India.

Canada’s relations with India have soured in recent years as Prime Minister Narendra Modi has become increasingly critical of what he says is Ottawa’s failure to clamp down on Sikh extremism.

The worst mass murder in Canadian history, the bombing of an Air India flight travelling from Montreal to London in June 1985, has been blamed on Sikh extremists. All 329 people on board were killed. Two pro-Khalistan diaspora Sikhs were charged in the incident but later acquitted.

While the majority of Canadian Sikhs are peaceful or not engaged in the Khalistan movement, Ottawa has listed other Sikh groups such as Babbar Khalsa International and the International Sikh Youth Federation as terrorist organisations.

The rift also highlights the complex nature of diaspora politics in Canada.

“We are a migrant nation, and diaspora politics is a real facet of Canadian politics,” said Colin Robertson, a former diplomat who is vice-president of the Canadian Global Affairs Institute in Ottawa. “This complicates our foreign policy because you always have to make allowance to minority groups. Sometimes you have to turn a blind eye to extreme views, as it has an impact on various ridings [constituencies].”

India has long pleaded with Canada to curb behaviour it considers a terrorist threat and which Ottawa sees as permissible political activism.

Pannun admitted to Indian media last year that he posted flyers outside the Sikh temple near Vancouver where Nijjar was killed that read “Kill India” and featured names and photos of Indian diplomats.

In turn, Canada has alleged growing Indian interference in its Sikh communities. That came to a head last year when Trudeau accused the Modi government of being involved in the fatal shooting of Nijjar.

The Royal Canadian Mounted Police on Monday warned Canadians about suspected Indian involvement in “serious criminal activity”, including drive-by shootings, home invasions, violent extortion and even murder. The Indian government denies any involvement.

A public inquiry that has been running since last year has also heard evidence that India directly interfered in Canada’s 2019 and 2021 general elections.

Former Canadian intelligence agent Phil Gurski said the inquiry highlighted how Trudeau’s government had either ignored, played down or repeatedly missed warnings of foreign meddling in Canadian life, whether political or in diaspora communities.

“Canada’s intelligence community is not happy,” he said. “They’ve been saying this for a while.”

Gurski said Canada was caught between global pressures from superpowers China and India, and local politics and security concerns. It is also aware India is strategically important for the Five Eyes alliance of the US, Canada, the UK, New Zealand and Australia.

“The political power of Sikh diaspora is real,” he said. “Trudeau could kiss the Sikh vote goodbye if they did favours for India, like sending a wanted separatist back. Canada does not want to upset the diaspora vote, they rely on it.”

For Gosal, the claims made last week about Indian government involvement in Nijjar’s death came as no surprise.

“We knew it was India from the minute they killed Nijjar. We knew there was a threat or it was dangerous, but we didn’t think it would go this far, that they’d kill a Canadian citizen on Canadian soil.”

He claimed that in February, months after he took over leadership of the Khalistan movement, a bullet was fired into a window at a site run by his construction business. An Indian account on X had posted about the shooting before police arrived.

In August, local police called him to warn he was the target of a murder plot, he said. “All this is absolutely tied to the government of India,” said Gosal. “They are posting tweets about it, openly making threats. They’re not trying to hide it.”

Beginning law school is sure to be exciting. But it’s crucial that you effectively manage your finances from the start.

Staying on top of your money ensures you experience less stress and more focus on what truly counts – your education.

By proactively tackling financial aspects, you will set the stage for a stable future in the legal world. Small steps taken today lay down a solid foundation for tomorrow’s success.

1. Master Financial Literacy Early On

Understanding your finances sets a strong foundation for future success. Financial literacy extends beyond just tracking expenses. It’s about learning key concepts like compound interest and credit scores.

Here’s how you can start:

• Gain familiarity with essential financial terms.
• Use apps that track spending and set savings goals.
• Read books focused on financial planning for students.
• Attend in-person workshops or utilise online courses.

2. Strategically Explore Student Loans

Managing student loans is crucial for aspiring lawyers. Before borrowing, research different loan types and interest rates to make informed decisions.

In the US, federal loans often offer better terms than private options.

Familiarise yourself with repayment plans early, so you’re prepared once the grace period ends.

Consider these strategies:

• Evaluate loan forgiveness programs that cater to public service roles.
• Calculate potential monthly payments post-graduation to avoid surprises.
• Keep an eye on interest accrual while in education.

Proactively managing loans now helps ensure financial stability when entering the legal field as a professional lawyer.

3. Create a Sustainable Budget

Developing a budget tailored for law school life ensures financial stability and reduces stress.

Start by listing your fixed expenses like tuition, housing, and utilities. Then, estimate variable costs such as groceries, transportation, and study materials.

Prioritise essentials but leave room for occasional leisure to avoid burnout.

Regularly review your budget to adjust it based on any changes in income or expenses.

Make sure you:

• Identify all sources of income including loans and scholarships.
• Track monthly spending using apps designed for budgeting.
• Set aside an emergency fund for unexpected costs.

By maintaining this approach, you will cultivate sound financial habits that benefit you throughout your legal education journey.

4. Consider Working Part-Time

Working part-time while in law school offers valuable experience and additional income.

However, it can be challenging to balance part-time work with your studies – but not impossible. Efficient time management is key. Prioritise tasks by setting clear schedules for both work hours and study sessions.

Here are some ideas to help you maintain the balance:

• Choose jobs offering flexible hours or remote work.
• Communicate clearly with employers about your academic commitments.
• Allocate specific times for job duties separate from personal downtime.
• Use effective study resources (like a Florida bar study guide) that help you focus your efforts on essential topics without overwhelming you with excess information. Such resources can be used during break times at work.

Balancing work and study well ensures steady financial progress alongside academic success.

5. Explore Legal Internship Stipends

Finding paid internships during law school is a strategic way to gain valuable experience while earning extra income.

Start by researching firms and organisations known for offering stipends or compensation. Many legal offices, especially those in the public sector, provide financial support as they recognise the need to nurture future talent.

Engage with career services at your institution; they often have listings of paid opportunities tailored for students.

And don’t overlook networking events – personal connections can lead to internship offers that aren’t widely advertised.

Keep an eye on deadlines and prepare strong applications highlighting relevant skills and academic achievements.

6. Implement Smart Saving Habits

Lastly, even with limited funds, saving money during law school could be achievable.

Start by identifying areas where you can cut back without sacrificing quality of life. Simple changes make a significant difference in the long run.

Use student discounts whenever possible.

Automate savings by setting up regular transfers to a separate account, even if it’s just a small amount each month.

Here are some practical tips:

• Prepare meals at home rather than dining out.
• Buy or rent used textbooks instead of new ones.
• Share living expenses with roommates to reduce costs.

Developing these smart saving habits helps build financial resilience, easing the transition from student life to professional practice after graduation.