Here are the business stories making the headlines locally and across the UK this morning.

Labour's Rachel Reeves rules out increasing income tax or NI

Labour has said there will be no rises in income tax or National Insurance if it wins the general election - but some spending cuts have not been ruled out.

Shadow chancellor Rachel Reeves told the BBC's Laura Kuenssberg she did not want to make any spending cuts.

But she was "under no illusion about the scale of the challenge" and would face "difficult decisions", she said.

The Conservatives have cut National Insurance twice and said they aim to scrap it when circumstances allow.

Boohoo faces shareholder revolt over bonuses

Boohoo Group has suffered a backlash from investors over the award of millions of pounds in bonuses to executives despite losses at the fast-fashion company having widened to £160 million.

The Manchester-based group, which includes Debenhams, Karen Millen and Oasis, among other fashion brands, is on course for another shareholder revolt at its annual meeting next month over its proposals for a new long-term incentive scheme.

Several big shareholders have criticised Boohoo’s plan to hand Mahmud Kamani and Carol Kane, its co-founders, and John Lyttle, the chief executive, £1 million each in bonuses, The Times understands.

The company acknowledged in its latest annual report that the three executives were not eligible for a bonus after financial targets had been missed in the past year.

London to Scotland train tickets ‘more expensive than flights’

Train tickets from London to Scotland are becoming more expensive than flights, an analysis by The Telegraph reveals.

Travelling by train from the capital to Scottish destinations is on average £161 more expensive than flying, fares suggest.

The news comes after years of public debate over the cost of flying between major Scottish cities and the capital, versus taking the train - which is seen as a more environmentally friendly option.

Rory Boland, travel editor of Which?, warned high train fares showed cost-conscious travellers may be being forced to fly even if their personal preference is to travel by rail.

Rural retreats trump urban living for buyers

House prices have been strongest in rural areas over the past five years, outstripping growth in predominately urban locations.

According to Nationwide, prices have risen by 22% in the countryside, compared with 17% in towns and cities. In local authorities classified by the Office for National Statistics as being “urban with significant rural”, prices rose by 19% over the same period between December 2018 and December 2023.

Despite prices growth being higher in rural areas overall, only eight of the twenty top-performing local authorities in 2023 were classified as predominantly rural. Three of the four authorities with the highest price rises were in Scotland.

In Comhairle nan Eilean Siar, the local government council for the Outer Hebrides, prices rose by 13% in 2023. It was followed by East Renfrewshire, near Glasgow, where prices rose by 10%.

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