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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1:15
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”.
Pope Francis, 88, had spent five weeks in Rome’s Gemelli hospital as he was treated by doctors for a life-threatening bout of double pneumonia.
The Pope, in what was a previously unannounced move, entered St Peter’s Square in a wheelchair shortly before noon local time at the end of the celebration of a mass for the Catholic Church’s Jubilee year.
Image: The pontiff arrives at the end of a mass. Pic: AP
In front of the main altar for the service, Francis waved to applauding crowds, before briefly talking.
Speaking in a frail voice while receiving oxygen via a small hose under his nose, he said: “Happy Sunday to everyone. Thank you so much.”
A message prepared by the Pope and released by the Vatican said he felt the “caring touch” of God.
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“On the day of the jubilee of the sick and the world of healthcare, I ask the Lord that this touch of his love may reach those who suffer and encourage those who care for them,” said the message.
“And I pray for doctors, nurses and health workers, who are not always helped to work in adequate conditions and are sometimes even victims of aggression.”
The IDF says it mistakenly identified a convoy of aid workers as a threat – following the emergence of a video which proved their ambulances were clearly marked when Israeli troops opened fire on them.
The bodies of 15 aid workers – including eight medics working for the Palestine Red Crescent Society (PRCS) – were found in a “mass grave” after the incident, according to the head of the UN Office for Coordination of Humanitarian Affairs Jonathan Whittall.
The Israeli military originally claimed an investigation found the vehicles did not have any headlights or emergency signals and were therefore targeted as they looked “suspicious”.
But video footage obtained by the PRCS, and verified by Sky News, showed the ambulances and a fire vehicle clearly marked with flashing red lights.
In a briefing from the IDF, it said the ambulances arrived in the Tel Sultan neighbourhood in Rafah shortly after a Hamas police vehicle drove through.
Image: Palestinians mourning the medics after their bodies were recovered. Pic: Reuters
An IDF surveillance aircraft was watching the movement of the ambulances and notified troops on the ground. The IDF said it will not be releasing that footage.
When the ambulances arrived, the soldiers opened fire, thinking the medics were a threat, according to the IDF.
The soldiers were surprised by the convoy stopping on the road and several people getting out quickly and running, the IDF claimed, adding the soldiers were unaware the suspects were in fact unarmed medics.
An Israeli military official would not say how far away troops were when they fired on the vehicles.
The IDF acknowledged that its statement claiming that the ambulances had their lights off was incorrect, and was based on the testimony from the soldiers in the incident.
The newly emerged video footage showed that the ambulances were clearly identifiable and had their lights on, the IDF said.
The IDF added that there will be a re-investigation to look into this discrepancy.
Image: The clip is filmed through a vehicle windscreen – with three red light vehicles visible in front
Addressing the fact the aid workers’ bodies were buried in a mass grave, the IDF said in its briefing this is an approved and regular practice to prevent wild dogs and other animals from eating the corpses.
The IDF could not explain why the ambulances were also buried.
The IDF said six of the 15 people killed were linked to Hamas, but revealed no detail to support the claim.
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1:22
Bodies of aid workers found in Gaza
The newly emerged footage of the incident was discovered on a phone belonging to one of the workers who was killed, PRCS president Dr Younis Al Khatib said.
“His phone was found with his body and he recorded the whole event,” he said. “His last words before being shot, ‘Forgive me, mom. I just wanted to help people. I wanted to save lives’.”
Sky News used an aftermath video and satellite imagery to verify the location and timing of the newly emerged footage of the incident.
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2:43
Aid worker attacks increasing
It was filmed on 23 March north of Rafah and shows a convoy of marked ambulances and a fire-fighting vehicle travelling south along a road towards the city centre. All the vehicles visible in the convoy have their flashing lights on.
The footage was filmed early in the morning, with a satellite image seen by Sky News taken at 9.48am local time on the same day showing a group of vehicles bunched together off the road.
Contemplating the turmoil sown by the return of President Trump, nobody could deny that the results of leadership elections in major nations matter to the rest of the world.
Take just the members of the G7 – so-called rich, industrialised democracies. Italy elected Giorgia Meloni in 2022, confirming the rise of the far-right. She was not only Italy’s first female leader, she was also the first from a neo-fascist party since Mussolini.
Barring accidents, the next potentially transformative election in what used to be called the “Western alliance” will not be for two years.
France is due to elect a new president to succeed Emmanuel Macron in the summer of 2027. The contest is already plagued by undercurrents of disruption, conflict between politicians and the law, and populism – similar to the fires burning elsewhere in the US and Europe.
This week French judges banned the frontrunner to win the presidency from running for office for the next five years. It looked as though they have knocked Marine Le Pen out of the race.
Nobody, least of all her, the leader of the far-right Rassemblement National (RN), knows what is going to happen next in French politics.
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In opinion polls just over half of the French population, between 54% and 57%, agreed that justice had run its course. “The law is the same for everyone,” President Macron declared.
After lengthy consideration by a tribunal of three judges, Le Pen and nine other former RN MEPs were found guilty of illegally siphoning off some €4.4m (£3.7m) of funds from the European Parliament for political operations in France, not for personal gain.
Le Pen was sentenced to a five-year ban and four years in prison, not to begin before the appeals process had been concluded. Even then that sentence in France would normally amount to two years’ house arrest wearing an ankle alarm.
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2:52
Marine Le Pen hits out at ban
French presidents, such as Jacques Chirac and Nicolas Sarkozy, have been convicted before. Controversy is flaring because Le Pen was given an extra punishment: the immediate ban on running for political office, starting this week.
Le Pen and Jordan Bardella, her second in command at RN, likened the ban to a “nuclear bomb” and a “political death penalty”. Speaking in L’Assemblee Nationale, of which she is still a member, Le Pen identified herself with Alexei Navalny, the dissident leader murdered in Russia, and Ekrem Imamoglu, the recently imprisoned Turkish opposition leader and mayor of Istanbul.
The ban was imposed at the discretion of the chief judge Benedicte de Perthuis, a former business consultant, Francois Bayrou, France’s Macronist prime minister admitted he was “troubled” by the verdict. Not surprisingly perhaps from him, since the prosecution is appealing against verdicts in a similar case of political embezzlement, in which Bayrou’s party was found guilty but he was acquitted, escaping any possibility of a ban.
Bayrou is expected to be a candidate for the presidency. Meanwhile, RN has the power to bring down his government since it is the largest party in the Assembly, with 37%, but was kept out of power by a coalition.
Image: Marine Le Pen and Jordan Bardella. File pic: AP
Populist forces on both sides of the Atlantic rushed to support Marine Le Pen. Matteo Salvini in Italy, Geert Wilders in the Netherlands and Vladimir Putin‘s spokesperson Dmitry Peskov all denounced what they saw as a “violation of democratic norms”. Hungary’s Viktor Orban said on X “Je suis Marine Le Pen”. Orban’s post came on the same platform Donald Trump Jr posted that “JD Vance was right about everything”, a reference to the US vice president’s speech at the Munich Security Conference in which he claimed Europe was silencing populist opposition.
President Trump weighed in: “The Witch Hunt against Marine Le Pen is another example of European Leftists using Lawfare to silence Free Speech… it is the same ‘playbook’ that was used against me.”
Le Pen has called for bans and tough sentences for corrupt politicians from other parties. In France, mainstream commentators are accusing her of hypocrisy and “Trumpisme” for attacking the courts now.
They also allege, or rather hope, that RN’s anger is endangering Marine Le Pen’s drive to make her party respectable with her so-called “wear a neck-tie strategy”, designed to dispel the loutish, racist image of her father’s Front National.
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0:26
Le Pen leaves court after guilty verdict
For all the protests, justice and politics are now inextricably mixed in France. A ban from political campaigning would be pointless for most convicts, who have no political ambitions.
Any suggestion that Le Pen was just being treated like any other citizen was dispelled when it was announced that her appeal would be speeded up to take place next summer. The president of the court de cassation conceded: “Justice knows how to adjust to circumstances… an election deadline in this case.”
The ban could be lifted in time to give Le Pen a year to stand for the presidency. At this stage, a full acquittal seems unlikely, given the weight of evidence against RN. That is awkward for her and her party because, presumably, she would be campaigning while under house arrest.
The best course of action for 29-year-old Jordan Bardella, Le Pen’s apparent successor, or “Dauphin”, would be to stick with her now. He would gain little if he split RN by insisting she is fatally wounded.
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If she loses her appeal in a year’s time, his loyalty and indignation would be likely to boost his candidacy. Conventional wisdom is that without a lift he may be slick, but is too callow and too square to stand a chance of becoming president in 2027.
The far right in France is no different from the far right elsewhere – prone to internal rivalries and in-fighting.
The craggy intellectual Eric Zemmour came fourth in the first round in the last presidential contest in 2022. Back then he had the support of Marion Marechal-Le Pen, Marine Le Pen’s flighty niece. The two have since fallen out and may separately bid to carry the far-right torch.
Macron is riding high as an international statesman but he is unpopular at home. Even if he wanted to, he cannot stand again because of term limits.
His attempts to spawn an heir apparent have failed. The 34-year-old prime minister Gabriel Attal led Ensemble to crushing defeat in last year’s parliamentary elections.
Current prime minister Bayrou, and former prime minister Edouard Philippe, will probably make a bid for the centre-right vote. Bruno Retailleau, the trenchantly hardline interior minister, looks a stronger candidate for the Gaullist Les Republicains.
In the last presidential contest, Jean-Luc Melenchon of the hard-left La France Insoumise came third. He may fancy his chances of getting into the final two in 2027 against a right-wing candidate, unless the Socialists get it together. Or perhaps he may let through two finalists from the right and the extreme right.
It is a mess.
France and Europe need effective leadership from a French president. The unnecessary judicial suspension of Marine Le Pen’s candidacy has simply generated uncertainty. Her supporters are outraged and her foes no longer know who they are fighting against.
The French establishment thinks it will all blow over. Just as likely the controversy in France will strengthen the populist winds blowing across the continent and the US.