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
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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.
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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.
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‘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
Volodymyr Zelenskyy believes ‘Putin is afraid’ that Donald Trump could still supply Ukraine with Tomahawk missiles
Volodymyr Zelenskyy has not ruled out the possibility that he can secure long-range Tomahawk missiles from the US, adding that he believes “Putin is afraid” of the consequences.
In an exclusive interview with NBC News’s Meet the Press, Ukraine’s president discussed some of the details of his two-hour meeting with Donald Trump on Friday, including his desire for the weapons after three years of war with Russia.
“It’s good that President Trump didn’t say ‘no’, but for today, didn’t say ‘yes’,” he said about the supply of the missiles, as part of a discussion which will air on Sunday.
Ukraine war latest: Zelenskyy proposes ‘drone for Tomahawk’
He admitted the US president was concerned about a potential escalation with Russia, but Mr Zelenskyy told NBC, Sky News’s US partner, that the weapons are a genuine concern for Vladimir Putin.
“I think that Putin [is] afraid that United States will deliver us Tomahawks. And I think that he [is] really afraid that we will use them,” he said.
Volodymyr Zelenskyy still hopes the US will supply Tomahawks. Pic: Meet the Press/NBC News
The weapons have a significantly longer range than any other missiles in Ukraine’s armoury and have the potential to be a game-changer in the war against Russia.
While Mr Trump did not rule out providing the Tomahawk missiles, he appeared cool to the prospect as he looked ahead to a meeting with the Russian president in Hungary in the coming weeks.
‘US doesn’t want escalation’
Following the meeting with Mr Trump, who held a phone call with Mr Putin on Thursday, Mr Zelenskyy told reporters: “We spoke about long-range (missiles) of course. And I do not want to make statements about it.”
But he added: “We don’t speak about it because… United States doesn’t want this escalation”.
Volodymyr Zelenskyy’s plans to secure new missiles had worried Russia. Pic: Reuters
Later in a post on X, Mr Zelenskyy said he was counting on President Trump to “bring this war closer to an end”.
“We discussed all key issues – our positions on the battlefield, long-range capabilities and air defence, and, of course, diplomatic prospects,” he said.
“Russia must end the aggression it started and continues to deliberately prolong. We count on the United States’ pressure.”
In a roundtable with journalists following the meeting, Mr Trump confirmed that hitting targets deep inside Russian territory would be an “escalation”.
Donald Trump said hitting targets deep inside Russian territory would be an ‘escalation’. Pic: Reuters
He also said he was hesitant to tap into the US’ supply of Tomahawks, saying: “I have an obligation also to make sure that we’re completely stocked up as a country, because you never know what’s going to happen in war and peace.
“We’d much rather have them not need Tomahawks. We’d much rather have the war be over to be honest.”
At Mr Trump and Mr Putin’s last meeting in Alaska in August, there were hopes that the conflict may finally be coming to an end.
But the US president was unable to pressure the Russian leader into accepting a ceasefire or a one-on-one meeting with Mr Zelenskyy.
Read more from Sky News:
Putin’s challenge ahead of summit
Was Putin forced back to talks?
Listen: Trump-Putin – Friends reunited?
Following Friday’s meeting at the White House, UK Prime Minister Sir Keir Starmer confirmed he had called Mr Zelenskyy to reiterate his support.
Ukraine has UK’s ‘resolute support’
A Downing Street spokesperson said: “The prime minister spoke to the president of Ukraine, European leaders and the NATO secretary general this evening following President Zelenskyy’s visit to the White House today.
“The leaders reiterated their unwavering commitment to Ukraine in the face of ongoing Russian aggression. A just and lasting peace for Ukraine was the only way to stop the killing for good, they agreed.
“Further discussions about how they could support Ukraine in the lead up to, and following, a ceasefire would continue this week, including in a Coalition of the Willing call on Friday, the leaders agreed.
“Following the call with world leaders this evening, the prime minister then spoke to President Zelenskyy bilaterally to underscore the United Kingdom’s resolute support for Ukraine.”
Before Donald Trump met with Volodymyr Zelenskyy, he hosted one of his favourite singers, Andrea Bocelli, in the Oval Office.
The Italian tenor serenaded him with the signature track Time To Say Goodbye, a song about hope and new beginnings.
But the next event on his agenda suggested antipathy between Trump and the Ukrainian president are firmly lodged in the past.
On the key issue of whether Vladimir Putin actually wants peace, the pair continue to fundamentally disagree.
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What happened at the Trump-Zelenskyy meeting?
Trump repeated several times his belief that Putin is committed to ending the war, which may come as a surprise to the people of eastern Ukraine, being pummeled by an expanded Russian offensive in the past few months.
Trump also spoke about “bad blood on both sides”, again inferring equal blame on Zelenskyy, whose sovereign nation was invaded, and Putin, who is doing the invading.
It’s in Putin’s gift to stop the fighting immediately, but that was glossed over.
Zelenskyy, clearly contorted by a need to put the record straight but not anger the famously mercurial man on the other side of the table, fired back that it is the Ukrainians who are committed to a ceasefire, a trilateral meeting and ultimately, an end to this war.
Ukraine war: Zelenskyy proposes ‘drone for Tomahawk’ deal
Relations between Zelenskyy and Trump have, obviously, improved from February when the Ukrainian president was berated and left the White House early.
On that occasion, he was mocked for wearing a T-shirt and so, the next two visits, he has sported an all black suit. He has also learned that Trump responds to flattery and, accordingly, he peppered the president with compliments.
Zelenskyy, pictured following his meeting with Trump, has learned that the president responds to flattery. Pic: AP
He credited him with “managing the ceasefire in the Middle East”, and said he believes he has a “chance” to do the same in Ukraine.
Trump came into the meeting buoyed by the diplomatic success of the past fortnight in the Middle East, intoxicated by the praise he has received from all sides for brokering the hostage deal. But the war, he said he could solve in 24 hours, is proving a tougher nut to crack, and he’s growing frustrated with everyone involved.
That much could be gleaned from his Truth Social post after the meeting, which implored Putin and Zelenskyy to end the war along its current lines. “Let both claim Victory, let History decide!” he wrote.
Read more from Sky News:
Zelenskyy on US ‘long-range’ weapons
Putin faces difficult trip to summit
Trump’s ‘game of diplomatic chess’
It was a marked shift from less than a month ago, when Trump, at that point more angered by Putin, suggested Ukraine could potentially win back all its territory.
As recently as Sunday, he was threatening to send long-range Tomahawk missiles to Ukraine but he made clear after their meeting that he wouldn’t be doing that right now. It’s likely he will wait until at least after his trailed meeting with Putin in Budapest.
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I was in Alaska in August when Trump hosted Putin and laid out the literal and metaphorical red carpet for him.
The US president went in with two aims: to broker a ceasefire and a one-on-one meeting between Putin and Zelenskyy. He left with neither and there is no public sign that Putin has shifted from his maximalist aims in Ukraine.
Trump greets Putin on the red carpet in Alaska in August. Pic: AP
Even by Trump’s own measurement, the summit was a failure.
Yet he seems determined to take the Russian president at his word, granting him first a phone call ahead of the Zelenskyy visit to Washington DC and now another meeting.
Putin was first successful in getting Trump to hold off on more severe sanctions on Russia, which were crippling economically. Now he has, seemingly, played a role in persuading Trump to hold off on sending Tomahawk missiles to Ukraine.
The US president was asked by a journalist whether it was possible he was being played by Putin. He admitted it was possible but said he usually comes out of these things pretty well. Time will tell.
It’s the dead of night, and a convoy is driving along a road in Gaza’s far north, 1.4km inside the Israeli area of control.
Few people remain in this part of Gaza, near the Erez border crossing.
Almost all buildings here have been destroyed, and official data says that no aid has come through the crossing since February. These vehicles, however, are loaded with supplies.
They stop briefly as a child and two men disembark to collect water bottles and plastic jerrycans that had fallen off one of the overburdened pickup trucks.
The convoy moves south, past destroyed buildings and debris, ending at an abandoned school.
This is the headquarters of the militia led by Ashraf Al Mansi, which calls itself the People’s Army.
Earlier this week, Al Mansi released a video statement warning Hamas against approaching the areas under his control.
The armed group is one of four active anti-Hamas militias identified by Sky News – all of them based inside parts of Gaza still controlled by Israel.
Hamas has sought to reassert its authority in recent days by clamping down on such groups. Sky News has verified footage of gun battles and public executions on the streets of Gaza City.
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Sky’s Dominic Waghorn reports on violence between Palestinians.
Last week, a Sky News investigation revealed that Israel has been facilitating the supply of guns, vehicles, cash and food to the most influential of these militias, Yasser Abu Shabab’s Popular Forces, based in Gaza’s far south.
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A Sky News investigation has uncovered new details about Israel’s support for a Palestinian rebel group.
The new footage viewed by Sky News suggests a similar arrangement has been set up in Gaza’s far north to supply Al Mansi’s militia.
The IDF and Al Mansi did not immediately respond to requests for comment.
Why are the videos important?
Two videos, uploaded by a member of Al Mansi’s militia on 9 and 11 October, show convoys taking an identical route down to the militia’s headquarters.
Neither video shows the supplies being loaded onto the trucks, but both videos begin at a point less than 400 metres from an IDF outpost.
Pic: Planet Labs PBC
To the north of this point, the road branches off in two. The western branch leads to the IDF outpost, while the eastern branch leads to the Erez border crossing.
It’s not possible to determine exactly what is being transported, but we can see food, water bottles and a large amount of fuel.
Water, food and fuel are visible on board the trucks.
At one point in one of the videos, the back of a car is shown filled with plastic jerrycans. These are marked with the branding of SOS Energy, an Israeli fuel supplier.
Hamas is cracking down on the militias
The new evidence of Israeli backing for Gaza’s militias comes as Hamas is attempting to reassert its authority through a violent crackdown on suspected collaborators.
On Thursday, Israeli news website Mako reported that Hamas had managed to take control of at least 45 pickup trucks, cash and hundreds of weapons from militias backed by Israel, citing IDF sources.
The crackdown has included a multi-day assault on Gaza City’s Al Sabra neighbourhood, home to the Doghmosh clan – an influential extended family with a long history of tensions with Hamas.
Clan members told Sky News that Hamas’s attack, which began as an attempt to arrest members of an anti-Hamas militia, had morphed into an indiscriminate campaign of revenge against the family as a whole.
“Hamas has not targeted any family,” Hamas spokesman Hazem Qassem told Sky News.
“The occupation has formed armed militias loyal to it, and these militias are accused of high treason – the most severe charge in Palestinian revolutionary law.”
Hamas spokesman Hazem Qasam told Sky News that Gaza’s government was attempting to restore order.
The head of Gaza’s Supreme Council for Tribal Affairs Hosni Al Mughanni tells Sky News that Yasser Abu Shabab “deserves the harshest punishment for his crimes” and that he “threw himself into the enemy’s arms”.
Hosni Al Mughanni, head of Gaza’s Supreme Council for Tribal Affairs, spoke to Sky News in Gaza.
“These rogue groups terrified us more than the enemy at times, violating people’s sanctities and property, stripping them of cash, phones, even watches, and shooting legs,” he says.
We asked Al Mughanni about the summary executions that have taken place in recent days in Gaza City.
“With no functioning courts, prosecution, or police stations, all of which are destroyed, how can formal justice proceed?
“We are for restoring security, security is the basis of life.”
Additional reporting by Celine Alkhaldi, Middle East producer.
The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.
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