Liz Truss has for the first time acknowledged that “there has been disruption” to the UK economy following last week’s mini budget.
Since the chancellor’s announcement of £45bn in tax cuts the value of the pound has plummeted, nearly half of mortgages have been pulled and the Bank of England launched a £65bn bail-out to save pension funds from collapse.
Asked on Friday whether she accepted this is largely a crisis of her 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 – that help is coming this weekend.
“Because this is going to be a difficult winter and I’m determined to do all I can to help families and help the economy at this time.”
The government’s energy price guarantee comes into force on Saturday.
It means the average household shouldn’t have to pay more than £2,500 a year on their energy bills.
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Ms Truss defended the decision to present last week’s mini-budget without an accompanying forecast from the Office for Budget Responsibility (OBR) due to the need to respond rapidly to rising energy prices, amid concerns that average annual household bills could soon reach £6,000.
The lack of such a forecast is blamed by many – including Mel Stride MP, the Conservative chair of the treasury select committee – of contributing to the week’s turmoil on the markets.
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The OBR said a forecast had been offered to Chancellor Kwasi Kwarteng but was not commissioned.
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Truss: Right to ‘take decisive action’
On Friday morning, the prime minister and chancellor met the OBR’s budget responsibility committee and afterwards issued a statement saying they “made it clear they value its scrutiny”.
But Ms Truss did not accept that failing to commission a forecast last week had been a mistake.
“It was important we acted quickly, in that timescale there couldn’t be a full OBR forecast. But we are committed to the OBR forecast.
“We are working together with the OBR. There will be an event on 23 November where the policies are fully analysed by the OBR, but it was a real priority to me to make sure we’re working to help struggling families.”
On Thursday, the chancellor committed to maintaining the triple lock on state pensions, which means they would rise in line with inflation (the triple lock means following whichever is higher consumer price inflation, average wage growth or 2.5%).
But the prime minister declined to offer a guarantee that benefits would also rise in line with inflation, despite a pledge from Boris Johnson’s government to do so.
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‘People have no faith in govt’
Ms Truss said the issue is “something that the work and pensions secretary is looking at, and she will make an announcement in due course, as is the normal practice for the autumn”.
But the prime minister argued the reversal of the National Insurance hike and support for businesses’ energy bills will help families.
“I had real fears that businesses could go out of business this winter because they were facing unaffordable energy bills,” she added.
“We put in place a business scheme, we put in place support for households across the country. That has cost us money, but it was important we acted quickly.”
With the latest polls putting Labour more than 30 points ahead of the Conservatives, many backbenchers are concerned about the prospect of losing their seats at the next election.
Senior MP Charles Walker said on Friday the conversation is no longer about winning, but how much the party loses by.
But the prime minister declined to comment on whether her party is heading towards electoral defeat, responding that “100% of her focus” is on supporting “the British public and British businesses through this difficult winter”.
Israel has received the bodies of two more hostages from the Red Cross, the Israeli prime minister’s office has confirmed.
Shortly after 10pm UK time on Saturday, Israel’s military said Hamas handed over “two coffins of deceased hostages”.
There has been no identification of the bodies yet.
The news came as tensions were beginning to rise over the closure of the Rafah border crossing between Gaza and Egypt.
Benjamin Netanyahu‘s office had said earlier on Saturday evening that it would stay closed “until further notice” – as the deadline for Hamas to return the bodies of the hostages had passed with no confirmation.
Mr Netanyahu had warned that its reopening would depend on how Hamas fulfilled its role in returning the remains of all 28 dead hostages.
The handover brings the count of returned bodies to 12 hostages, up from 10, according to Israel’s tally. Another 16 deceased hostages would then still have to be returned.
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All 28 were supposed to have been handed over by last Monday.
The handover of remains is among key points – along with aid deliveries into Gaza and the devastated territory’s future – in the ceasefire process meant to end two years of war.
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Rafah crossing to remain closed
Israel’s foreign ministry had originally said the Rafah crossing would likely reopen on Sunday – another step in the fragile ceasefire. This has now been revised to being closed “until further notice”.
A fully reopened crossing would make it easier for Gazans to seek medical treatment, travel internationally or visit family in Egypt, which is home to tens of thousands of Palestinians.
It is unclear who will operate the crossing’s heavily damaged Gaza side once the war ends.
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Meanwhile, Gaza’s ruins were being scoured for the dead, over a week into a ceasefire. Newly recovered bodies brought the Palestinian toll above 68,000, according to Gaza’s Health Ministry.
The ministry, part of the Hamas-run government, does not distinguish between civilians and combatants in its count. But the ministry maintains detailed casualty records that are seen as generally reliable by UN agencies and independent experts.
Famine declared
Israel has disputed them without providing its own toll.
Hamas-led militants killed around 1,200 people, mostly civilians, and abducted 251 people in the attack on southern Israel that sparked the war on October 7 2023.
Gaza’s more than two million people are hoping the ceasefire will bring relief from the humanitarian disaster caused by Israel’s offensive. Throughout the war, Israel restricted aid entry to Gaza – sometimes halting it altogether.
Famine was declared in Gaza City, and the UN says it has verified more than 400 people who died of malnutrition-related causes, including more than 100 children.
Officials in Israel say they have let in enough food, accusing Hamas of stealing much of it. The UN and other aid agencies deny this claim.
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.
“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.
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.
Image: 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.
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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”.
Image: 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”.
Image: 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.”
Analysis: Is Trump being ‘played’ by Putin?
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.
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.
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.”
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.
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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.
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.
Image: 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.
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.
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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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.
Image: Trump greets Putin on the red carpet in Alaska in August. Pic: AP
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.