Devolved nations demand urgent meeting with chancellor as Tory top team doubles down on plan to cut spending
The devolved governments of the UK want an urgent meeting with Chancellor Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.
In a joint letter, the finance ministers of Wales, Scotland and Northern Ireland are warning that the government’s spending plans are a “huge gamble” that will mean another decade of austerity.
It comes as one of Liz Truss‘s closest political allies doubled down on the government’s economic policy, with warnings that major cuts in public spending are to come.
Levelling Up Secretary Simon Clarke, who is among the prime minister’s inner circle, told The Times that the British people need to expect significant cuts in public spending, because for too long the West has been living in a “fool’s paradise”.
Following on from Chancellor Kwasi Kwarteng‘s tax-cutting mini-budget, he said the government needs to make sure the “extremely large” state is in “full alignment with a lower tax economy”.
It has led to fears another period of austerity is just around the corner, with the hardest hit likely to be those reliant on welfare.
In their letter to Mr Kwarteng, Welsh Finance Minister Rebecca Evans joined finance ministers from Scotland and Northern Ireland in highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” stating it was “a huge gamble on public finances and the health of our economy”
They warned against being condemned to another decade of austerity and expressed deep concern over reports that UK government departments would be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.
But Mr Clarke told The Times: “Western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term.
“They’re not. We need to address that… if we want those strong public services then we are going to have to pay for them.
“It is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy.”
It comes on the eve of the Conservative Party conference and the chancellor defending his mini-budget by saying the government “had no other choice” than to do “something different” to spark the economy.
The mini-budget resulted in a tumultuous week which saw the pound fall to an all-time low against the dollar and the Bank of England being forced to spend billions to prevent a collapse of the pensions industry.
‘What the Thatcher government was doing in the 1980s’
Mr Clarke admitted it had been an “uncomfortable week” and defended Ms Truss, but said she would not be deflected from policies they predicted would be unpopular, and suggested her task was analogous to that faced by Margaret Thatcher in the 1980s.
“If I was to describe one word for Liz… it is purposeful,” he said. “She knew – and this was certainly something we discussed during the summer – that this would not be a comfortable process.
Read more:
Truss admits ‘disruption’ to UK economy but stands by forecast-free mini-budget
Please use Chrome browser for a more accessible video player
PM acknowledges ‘some disruption’ to UK economy following mini-budget
“[She knew] particularly early on, there would be real potential unpopularity to be courted in seeking to say things and do things which weren’t going to be easy or quick wins. Frankly, she is doing what she believes is right.
“In some ways, there is an analogy with the 1980s and what the Thatcher government was seeking to do in terms of a reset moment where you fundamentally revisit how not just the previous government but multiple governments.”
‘We intend to be extremely rigorous’
Wales Secretary Sir Robert Buckland told Sky News that, while the government would work within its existing three-year spending review package, families could expect to find out what ministers are planning in the next few weeks.
Mr Buckland said he hopes the government’s upcoming announcements will be seen by the market as displaying “fiscal discipline”.
He appeared to confirm what Mr Clarke was suggesting when he said: “We intend to be extremely rigorous when it comes to bearing down on public expenditure.
“That will be developed in the weeks ahead. We’ve got a whole range of announcements coming out on not just spending, but supply-side reforms.
Please use Chrome browser for a more accessible video player
Chair of OBR Richard Hughes says chancellor will be updated on Friday
“Whether it’s childcare… or… broadband connectivity, all these things add up to an overall package that is designed to, first of all, facilitate growth in the economy, but secondly to emphasise that the government is responsible.”
‘We had to do something different’
Overnight, Mr Kwarteng said the public expected public spending to be tightly controlled.
He wrote in The Daily Telegraph: “The British taxpayer expects their government to work as efficiently and effectively as possible, and we will deliver on that expectation.
“Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice.”
The chancellor insisted he would produce a “credible plan” to get public finances on track with a “commitment to spending discipline”.
On Friday night, Ms Truss acknowledged for the first time that “there has been disruption” to the UK economy following last week’s mini-budget.
Please use Chrome browser for a more accessible video player
‘Liz Truss is a danger to the economy’ says Starmer
Asked on Friday whether she accepted this was a crisis of the government’s own making, the prime minister said: “It was very, very important that we took urgent steps to deal with the costs that families are facing this winter, putting in place the energy price guarantee for which we’ve had to borrow to cover the cost… but also making sure that we are not raising taxes at a time where there are global economic forces caused by the war in Ukraine that we need to deal with.
“I recognise there has been disruption. But it was really, really important that we were able to get help to families as soon as possible.”
Nick Thomas-Symonds, shadow international trade secretary, told Sky News on Saturday: “This is a Tory crisis, made in Downing Street… They’ve crashed the economy by handing out enormous unfunded tax cuts to the very wealthiest people, and it’s going to be working people across the country that pay the price for this.
“They’ve also trashed our international reputation… and… what the government has done is going to lead to economic pain for people that they have chosen… What the government needs to do is recall Parliament and withdraw this budget.”
Truss and Kwarteng met top officials from Britain’s Office for Budget Responsibility (OBR) on Friday.
Mr Kwarteng intends to publish an updated set of economic forecasts from the Office for Budget Responsibility (OBR) and a medium-term fiscal plan setting out how he plans to bring down government debt on 23 November.
World
Two children from Gaza enter UK for specialist medical care for first time after months of struggle
It was a welcome party of sorts, and it was assembled near arrivals at Heathrow’s Terminal 5.
A few people clutched flowers, others brought presents, while everyone carried a sense of relief.
Two children from Gaza had been given permission to enter Britain for specialist medical care and the pair would arrive on the evening flight from Cairo.
It was a significant moment – the first time UK visas had been granted to children from this war-ravaged enclave – and the product of months of struggle by a small group of British volunteers.
Ghena Abed, five, needs urgent treatment to save the vision in her left eye
As those in attendance offered up a cheer, a five-year-old called Ghena Abed emerged shyly from behind the security gates. With fluid pressing on her optic nerve, she needs urgent treatment to save the vision in her left eye.
Also in this party was a 12-year-old girl called Rama Qudiah. She is weak and malnourished and suffers from incontinence. Medics think she requires an operation on her bowel.
Medics think Rama Qudiah, 12, needs a bowel operation
Her mother, Rana, told us their arrival in Britian “is just a like a dream”.
Her daughter has certainly been fortunate. A small number of children from Gaza have benefited from medical evacuations, with the majority receiving care in countries in the Middle East, Europe, as well as the United States.
Rama’s mother, Rana
In March, the Israelis signed a deal with Jordan which could allow 2,000 children to leave the enclave for treatment of war injuries and conditions like cancer. However, just 29 were allowed to go at first instance.
The process has not been easy
Until now, not a single child from Gaza has entered the UK for medical care since the start of the current conflict, and the process has not been an easy one for the volunteers at Project Pure Hope.
They told Sky News it has taken 17 months to arrange temporary visas for Ghena and Rama.
Dr Farzana Rahman from Project Pure Hope
“A lot of us are health care workers and I think it’s in our DNA that when we see people who are suffering, particularly children, we want to try and do something and that’s what motivated us,” says Dr Farzana Rahman from Project Pure Hope.
When asked why she thinks it has taken so much time to secure their visas, Dr Rahman said: “I don’t know.”
Group argues it has no time to lose to help other children
But it is clear the arrival of children from Gaza is an issue of sensitivity. The British volunteers told us on a number of occasions that all costs would be met by private sources. The children will return to Gaza when the treatment is completed.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Project Pure Hope is not finished, however – group members have drawn up a list of other children they can help, and argue they have no time to lose.
“One of the hardest parts of trying to make progress in this area is that delays cost lives. A number of children have died who we haven’t been able to help and this is an urgent situation and I think for all of us that’s the hardest part,” says Dr Rahman.
The biggest city in the Sahel has been ransacked and left in ruins.
War erupted in Sudan’s capital Khartoum in April 2023 and sent millions searching for safety.
The city was quickly captured by the paramilitary Rapid Support Forces (RSF) after a power struggle with the Sudanese Armed Forces (SAF) for total control.
At least 61,000 people were killed from the fighting and siege conditions in Khartoum state alone.
Thousands more were maimed and many remain missing.
The RSF fled Khartoum’s neighbourhoods in caravans carrying the city’s looted treasures as the army closed in and recaptured it after two years of occupation.
The empty streets they left behind are lined with charred, bullet-ridden buildings and robbed store fronts.
The once shiny skyscrapers built along the confluence of the River Nile are now husks of blackened steel.
The neighbourhoods are skeletal. Generational homes are deserted and hollow.
Damage from fighting around Khartoum
Trenches snake the streets where copper electric cables were ripped out of the ground and pulled out of lampposts now overridden with weeds.
The majority of the 13 million people displaced by this war fled Khartoum. Many left in a rush, assuming it would only take a few weeks for peace to be restored.
My parents were among those millions and in the midst of the abandoned, looted homes is the house where I grew up.
Yousra Elbagir’s family home was left in ruins by RSF troops
Yousra said it was likely a bomb had previously fallen nearby and shaken the house at its base
A shell of a home
I have to strain my eyes to see the turn to my house. All the usual markers are gone. There are no gatherings of young people drinking coffee with tea ladies in the leafy shade – just gaping billboard frames that once held up advertisements behind cars of courting couples parked by the Nile.
Our garden is both overgrown and dried to death.
The mango, lemon and jasmine trees carefully planted by my mother and brother have withered.
Structural damage to the outside of the home
The Bougainvillea has reached over the pathway and blocked off the main entrance. We go through the small black side door.
Our family car is no longer in the garage, forcing us to walk around it.
It was stolen shortly after my parents evacuated.
The two chairs my mum and dad would sit at the centre of the front lawn are still there, but surrounded by thorny weeds and twisted, bleached vines.
How the home looked before Sudan’s war
And how it looks now
The neighbour’s once lush garden is barren too.
Their tall palm trees at the front of the house have been beheaded – rounding off into a greyish stump instead of lush fronds.
Read more:
How recaptured palace is a significant sign of return to order
Sudan’s paramilitary chief announces rival government
Everyone in Khartoum is coming back to a game of Russian roulette. Searching out their houses to confirm suspicions of whether it was blasted, burned or punctured with bullets.
Many homes were looted and bruised by nearby combat but some are still standing. Others have been completely destroyed.
How the home looked before the war
And how it looks now
The outside of our house looks smooth from the street but has a crack in the base of the front wall visible from up close.
It is likely a bomb fell nearby and shook the house at its base – a reminder of the airstrikes and shelling that my parents and their neighbours fled.
Inside, the damage is choking.
Most of the furniture has been taken except a few lone couches.
The carpets and curtains have been stripped. The electrical panels and wiring pulled out. The appliances, dishes, glasses and spices snatched from the kitchens.
Yousra shows her mother pictures found in the home
The walls are bare apart from the few items they decided to spare. Ceilings have been punctured and cushions torn open in their hunt for hidden gold.
The walls are marked with the names of RSF troops that came in and out of this house like it was their own.
The home that has been the centre of our life in Sudan is a shell.
Sudan’s war has left the country fractured
Glimmers of hope
The picture of sheer wreckage settles and signs of familiarity come into focus.
A family photo album that is 20 years old.
The rocking chair my mother cradled me and my sister in. My university certificate.
Yousra finds her university certificate in the wreckage
Celebratory snaps of my siblings’ weddings. Books my brother has had since the early nineties.
The painting above my bed that I have pined over during the two years – custom-made and gifted to me for my 24th birthday and signed by my family on the back.
There are signs of dirt and damage on all these items our looters discarded but it is enough.
Yousra’s parents pictured at home before they fled Khartoum
Evidence of material destruction but a reminder of what we can hope will endure.
The spirit of the people that gathered to laugh, cry and break bread in these rooms.
A portrait of Yousra’s grandmother damaged by RSF troops
The hospitality and warmth of a Sudanese home with an open door.
The community and sense of togetherness that can never truly be robbed.
What remains in our hearts and our city is a sign of what will get us through.
World
Unpredictable and disruptive or canny and persistent – what exactly is Donald Trump’s foreign policy?
So, after 100 days of Donald Trump the big question for me remains – does the US president have a coherent foreign policy or is he just winging it?
Let’s take his attitude to the war in Ukraine – here “inconsistent” is perhaps the best description.
Back in February, he and vice president JD Vance humiliated Ukrainian President Volodymyr Zelenskyy by shouting at him in the Oval Office.
A few days later, I spoke to Mr Zelenskyy in person when he confided to me that maybe he would have to step down if NATO could guarantee Ukraine membership – a man who perhaps sensed he could never win against a hostile Mr Trump.
Please use Chrome browser for a more accessible video player
Sky News meets Zelenskyy: The key moments
Yet, fast-forward to last weekend in Rome, and an iconic picture of the two men in close conversation at the Pope’s funeral.
This time round, it is Russian President Vladimir Putin on the receiving end of the presidential anger, blaming him for the fact that “too many people are dying!”
Trump and Zelenskyy talk in the Vatican. Pic: AP
To Trump’s supporters, this is the smart negotiator, constantly repositioning himself as new information comes in, prior to pulling off a spectacular deal.
To his many detractors, it indicates a dangerous incoherence that is replicated in other key areas, including tariffs as well as his relationship with his allies in Europe and his foes in Beijing.
Trump 100: Read more
Tariffs, DOGE, diet coke: 100 days in 100 words
Trump’s awkward reckoning 100 days in
How an immigration crackdown has changed lives
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Flexible or fallible; in control or all at sea? In the fast and furious world of Donald Trump, it’s almost impossible to call.
The only constants are his unwavering self-belief, or as the man himself says: “I aim very high, and then I just keep pushing and pushing and pushing to get what I’m after.”
We shall see.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment2 years agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Business3 years agoBank of England’s extraordinary response to government policy is almost unthinkable | Ed Conway