It took 10 days for the most eye-catching and controversial element of Kwasi Kwarteng’s mini-budget to unravel.
The abolition of the top 45p rate next April is not going ahead.
And it matters not so much because of the impact the decision has on the economic plan – the tax cut was £2bn in a £45bn package of cuts – but because of what it tells us about Liz Truss and her government.
The first phase of her reign is over already.
For, as little as 24 hours ago, the prime minister insisted that she was not going to change course.
On Sunday night two Truss-backing newspapers, the Express and the Mail, had it plastered across their front pages that the chancellor was going to “stay the course”.
All evening, cabinet ministers and other government figures I bumped into at the Tory conference insisted there would be no change of policy.
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What a cabinet minister told me would happen instead, was that the government would delay the finance bill – the piece of legislation required to pass Mr Kwarteng’s mini-budget – until the spring of next year to try to avoid a confrontation.
Overnight that resolve unravelled as the PM and chancellor, battered by a growing opposition led by former cabinet ministers Michael Gove and Grant Shapps, decided the policy had to go.
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The cabinet were told the next morning, even as some – like Sky News – were reporting the expected U-turn.
“I think it was the cumulative effect of pressure within and without the cabinet,” said one cabinet minister.
“It was best to get this out of the way ahead of his big speech and the PM’s on Wednesday.”
But lancing the boil on the matter of the top rate of tax does not cure the malady that has beset the Truss administration.
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1:45
‘We have a plan and we need to deliver it’
This was a prime minister who built her image with the public and the party as a leader who was not for turning, and who was prepared to be unpopular in pursuit of her goals.
She has now shown her opponents that the lady is for turning and the immovable is movable.
One cabinet minister, who privately didn’t much like the policy, told me the PM should have stuck to it in order to try and maintain credibility and protect her brand.
Floodgates are open
In reversing the policy, the PM has opened the floodgates and backbenchers will try to move her on lots of other policies too.
Already in their sight is the PM’s refusal to commit to Boris Johnson’s promise to uprate benefits by inflation rather than earnings in order to make sure four million low-income families and workers don’t have to take a real-terms benefits cut.
Her allies admit that the groundwork in selling the original package has been wanting in the rush to introduce the first batch of economic reforms – the tax cuts – to try to push for that 2.5% economic growth target in time for the next election.
Their hope is that the supply side reforms, coupled with the independent Office of Budget Responsibility (OBR) forecasts, and medium-term fiscal plan will calm choppy waters and buy Ms Truss time.
But the political miscalculation to announce a cut to the top rate of tax in the midst of the worst cost of living crisis since the 1970s, only to then have to U-turn, is no doubt a deep body blow for this PM.
She wasn’t initially the first choice for leader amongst her MPs and already had a battle on her hands to stamp her authority on the party. A massive U-turn designed to build bridges with a divided parliamentary party and a deeply unconvinced public.
But some MPs here are quietly asking, is there any way back?
Members of a self-styled African tribe living in a Scottish forest have been evicted, Sky News has been told.
The group, who have named themselves the Kingdom of Kubala, have been living in woods in Jedburgh, near the border of England, since May.
After they were served with an eviction notice in August as they were on private land, the trio moved their campsite over a fence to a neighbouring plot of land owned by Scottish Borders Council.
At Selkirk Sheriff Court on Wednesday, Sheriff Peter Paterson ruled that the trio would not be able to return to the original plot of land they were evicted from.
Councillor Scott Hamilton, deputy leader of the local authority, told Sky News on Thursday morning: “So, this group obviously arrived in Jedburgh a number of months ago. They set up camp here.
“They were originally on Scottish Borders Council land, and they set up camp and claimed they were a Kingdom of Kubala. And this, quite frankly, was ludicrous.
“It broke laws. It broke the rules. And as landowners we took action, as well as private landowners, to ensure this outcome today.”
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Mr Hamilton said you “could never guess” the group’s next move, with the trio refusing to engage with the council, Police Scotland and adult protective services.
He added that “all they wanted was publicity”.
The group is made up of Kofi Offeh, 36, who calls himself King Atehene, his wife Jean Gasho, 43, who calls herself Queen Nandi, and “handmaiden” Kaura Taylor, 21, who goes by the name of Asnat.
The members of the self-proclaimed “kingdom” have said they are reclaiming land that was stolen from their ancestors 400 years ago.
Mr Hamilton branded their claim “ludicrous”, adding: “We’re working with the police, the Home Office etcetera, so we’ll continue to have that liaison as this case progresses.
“But people of Jedburgh can take some relief today that action has been taken.”
Sky’s Scotland correspondent Connor Gillies reported that the Texan mother of Ms Taylor, says her daughter was lured and coerced into moving to the forest, 4,000 miles away from home.
Melba Whitehead told Sky News the family spotted an online image of her living as a “handmaiden”, and pleaded with authorities to deport her daughter back to the US.
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7:42
‘African tribe’ branded a ‘cult’
This breaking news story is being updated and more details will be published shortly.
Monthly disposable income fell by £40 per person between Boris Johnson’s election victory in December 2019 and Rishi Sunak’s defeat in July 2024.
It is the first time in recorded British history that disposable income has been lower at the end of a parliamentary term than it was at the start, Sky News Data x Forensics analysis reveals.
Disposable income is the money people have left over after paying taxes and receiving benefits (including pensions). Essential expenses like rent or mortgage payments, council tax, food and energy bills all need to be paid from disposable income.
Previously published figures showed a slight improvement between December 2019 and June 2024, but those were updated by the Office for National Statistics on Tuesday.
There has been an uplift in the last year, although we’re poorer now than we were at the start of the year, and today we only have £1 more on average to spend or save each month than we did at the end of 2019.
That represents “an unmitigated disaster for living standards”, according to Lalitha Try, economist at independent living standards thinktank the Resolution Foundation.
Have things gotten better under Labour?
Disposable income has increased by £41 per person per month since Labour took office in July 2024. However, that masks a significant deterioration in recent months: it is lower now than it was at the start of 2025.
In the first six months of Labour’s tenure, disposable income rose by £55, a larger increase than under any other government in the same period. In part, this was down to the pay rises for public sector workers that had been agreed under the previous Conservative administration.
But the rise also represents a continuation of the trajectory from the final six months of the outgoing government. Between December 2023 and June 2024, monthly disposable income rose by £46.
That trajectory reversed in the first part of this year, and the average person now has £14 less to spend or save each month than they did at the start of 2025.
Jeremy Hunt, Conservative chancellor from October 2022 until the July 2024 election defeat, told Sky News: “The big picture is that it was the pandemic rather than actions of a government that caused it [the fall in disposable income].
“I clawed some back through (I know I would say this) hard work, and Labour tried to buy an instant boost through massive pay rises. The curious thing is why they have not fed through to the numbers.”
The £40 drop between Mr Johnson’s electoral victory in 2019 and Mr Sunak’s loss in 2024 is roughly the same as the average person spends on food and drink per week.
By comparison, since 1955, when the data dates back to, living standards have improved by an average of £115 per month between parliamentary terms.
Vital services, things like energy, food and housing, that all need to be paid for out of disposable income, have all increased in price at a faster rate than overall inflation since 2019 as well.
This means that the impact on savings and discretionary spending is likely to be more severe for most people, and especially so for lower earners who spend a larger proportion of their money on essentials.
Responding to our analysis, the Resolution Foundation’s Lalitha Try said: “Average household incomes fell marginally during the last parliament – an unmitigated disaster for living standards, as families were hit first by the pandemic and then the highest inflation in a generation.
“We desperately need a catch-up boost to household incomes in the second half of the 2020s, and to achieve that we’ll need a return to wider economic growth.”
Analysis by the Joseph Rowntree Foundation, which also takes into account housing costs, says that disposable income is projected to be £45 a month lower by September 2029 than it was when Labour took office.
We approached both Labour and the Conservative Party for comment but both failed to respond.
How are Labour performing in other areas?
Labour have made “improving living standards in all parts of the UK” one of their main “missions” to achieve during this parliament.
Sam Ray-Chaudhuri, research economist at the Institute for Fiscal Studies, told Sky News: “Labour’s mission to see an increase in living standards over the parliament remains a very unambitious one, given that (now) almost every parliament has seen a growth in disposable income.
“Doing so will represent an improvement compared with the last parliament, but it doesn’t change the fact that we are in a period of real lack of growth over the last few years.”
As well as the living standards pledge, the Sky News Data x Forensics team has been tracking some of the other key promises made by Sir Keir and his party, before and after they got into power, including both economic targets and policy goals.
Use our tracker to see how things like tax, inflation and economic growth has changed since Labour were elected.
The policy areas we have been tracking include immigration, healthcare, house-building, energy and crime. You can see Labour’s performance on each of those here.
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.
A Texas woman has told Sky News an African “cult” brainwashed, lured and coerced her daughter to move 4,000 miles away to a Scottish forest by preying on her vulnerabilities.
Aspiring lawyer Kaura Taylor, 21, was reported missing from Dallas in 2023, shortly after graduating school.
Her family then spotted an online image of her living as a “handmaiden” in the so-called Kingdom of Kubala in Jedburgh, Scotland.
Image: Kaura Taylor (right) with the self-professed king and queen. Pic: PA
Sky News can reveal Scottish authorities are assessing a report involving welfare and safety concerns.
Speaking exclusively in her first on-camera interview from Texas, Kaura’s mother, Melba Whitehead, pleaded for authorities to urgently deport her daughter to the US so they can be reunited.
The group, dressed head to toe in traditional African attire, is run by Kofi Offeh – who refers to himself as “The King” – and his partner Jean Gasho, who goes by “The Queen”.
Image: The group are camping in woods near Jedburgh. Pic: PA
Both lived a troubled existence in Stockton-on-Tees, in northeast England, prior to camping in the Scottish borders.
A video online shows Mr Offeh claiming ownership of Kaura and boasting “I bought you at a price” before she swears allegiance to her “masters”.
The camp, on the edge of an industrial estate, is at the centre of a legal battle after eviction notices were served to remove them from private and council land.
Image: Eviction notices have been left at the site. Pic: PA
‘Under a spell’
Ms Whitehead alleges she became embroiled in a family dispute following the COVID pandemic.
She said the “cult” groomed her daughter, who was 19 at the time, on social media, before buying a one-way ticket to the UK for a new life in the woods.
The 45-year-old told Sky News: “They utilised the fact that she was angry. To encourage her to get away. They used the fact she was penniless living on her own.
“They utilised the funds that they had at their disposal to send for her. They made that happen.”
Image: Ms Whitehead says the group took advantage of her daughter
Asked if she believes Kaura was coerced into leaving the US, Melba Whitehead said: “I know so. She’s totally brainwashed. This is a cult.
“The first thing a cult is known to do is separate you from those that love you.”
She continued: “This isn’t just another young adult rebelling. This isn’t just another young adult who’s mad at the world. The difference is she’s under someone else’s spell in another country.”
Image: Melba Whitehead and Kaura Taylor in an old photo
‘I can run away if I wish’
Sky News has interviewed Kaura Taylor on her own, away from the so-called Kingdom of Kubala.
She denied being coerced and insisted: “Others are not my concern. People who care about my best interests know why I am here.”
The 21-year-old said “the only things that matter are the camp, the trees and the creepy crawlies” – as she denied being in a cult and dismissed her family’s concerns.
When pressed on how she got to the UK as a cash-strapped teenager, she said she had fled a “rough background” and arrived via a “divine form of transport”.
Image: Kaura Taylor told Sky News she was free to leave but had no intention of doing so
Ms Taylor she had the ability to “run” away if she wanted, but had no intention of doing so.
Police Scotland told Sky News that officers were looking to “engage with the individual concerned” after a report was made raising concerns.
“I don’t know why Scotland is allowing this foolishness,” said Melba Whitehead. “I believe that Jean and Kofi are opportunistic. I believe there are leeches and vultures for my daughter.”
Image: Kofi Offeh dodged giving a direct answer on whether he had coerced his ‘handmaiden’
‘Washed by righteousness’
Jean Gasho and Kofi Offeh denied the allegations when Sky News returned to the woods seeking a response.
When asked if he was operating a cult that was brainwashing Kaura, Mr Offeh replied: “This is the Kingdom … brainwashing is the best thing ever to happen to man if it is coming from the right source. For everyone’s brain needs to be washed by righteousness.”
He was questioned on whether he had coerced the 21-year-old but repeatedly dodged giving a direct answer.
He said: “I am the King of Kubala, and all nations belong to me. Everyone you see bows before me because I am the chosen one. They are not coerced, they are called.”
Jean Gasho refused to answer around a dozen questions unless she was referred to as a queen.
“When you address me as the Queen then I will answer your question,” she said.
She then starting singing a traditional African song in an attempt to drown out further questions.
Image: ‘King Atehene’ at the campsite in woods near Jedburgh. Pic: PA
‘I was once her’
Rachael Reign established a London-based grassroots group advocating for victims of spiritual abuse and coercive religions.
The Surviving Universal UK founder has become an expert after she was groomed in a church-based cult in the British capital from age 13.
Ms Reign told Sky News the Kingdom of Kubala has all the hallmarks of a cult, but it was difficult to help someone who doesn’t recognise they need support.
She said: “I believe it to be a cult. She had particular vulnerabilities, and she was searching for a sense of community and purpose, and that is how cults target people.
“it is completely normalised. That is her reality, and any kind of critique or grievances is seen as a personal attack on her identity and her community. But she is at risk, she’s been isolated, and she needs to be safeguarded.”
Ms Reign added: “There has to be greater understanding around coercive control in relation to cults.
“Currently coercive control is only recognised within domestic settings which means that victims of coercive control outside of domestic settings fall completely under the radar. There has to be some recognition in terms of legislation.”