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The chancellor has admitted it has been a tough day after he was forced to U-turn on cutting income tax for the rich.

Kwasi Kwarteng began his keynote speech at the Conservative Party conference by saying: “What a day, it has been tough but we need to focus on the job in hand.”

Just hours earlier he announced he was ditching plans to remove the 45p rate of income tax for the wealthiest 1%, unveiled at the mini-budget 10 days ago.

And after his speech, it was revealed Mr Kwarteng is bringing forward his medium-term financial statement from 23 November to this month, despite this morning saying he would not.

He admitted to Tory members his economic plan had caused “a little turbulence” but continued to back his vision for growth, saying: “With economic growth, everybody benefits, and I mean, everybody.”

Chancellor vows ‘no more distractions’ – follow live updates from Birmingham

In his original speech, before the U-turn, he had been set to say the government must “stay the course”.

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But after acknowledging the change briefly, he said the government was ploughing ahead with boosting economic growth across the UK.

“We need to move forward. No more distractions. We have a plan and we need to get on and deliver it. That is what the public expect from the government,” he told Tory members in Birmingham.

“We’ve done it before and we can do it again.”

The chancellor said the path the country was on was “unsustainable” and said “we had no choice, the price of inaction would have been far greater than the cost of the scheme”.

And he said his plan to cut taxes to boost growth “isn’t radical, isn’t irresponsible” and will put more money in people’s pockets.

British Chancellor of the Exchequer Kwasi Kwarteng speaks during Britain's Conservative Party's annual conference in Birmingham, Britain, October 3, 2022. REUTERS/Toby Melville

So much left unsaid

Sky News’ deputy political editor Sam Coates said: “There was just so much not addressed so you were left thinking what was it he wanted people to take away from that?

“At this conference, they’re desperate to try to get some political credit for the £45bn they’ve committed to spending.”

He added that the chancellor did not mention how the plan is fiscally responsible and if it is staying within their budget.

Coates also said one of the biggest political challenges over the next 18 months will be the consequence of higher interest rates but there was “not a word about that either”.

Read more:

First phase of Truss’ reign is over – can she survive 45p tax rate U-turn?
It’s not clear which policy tipped markets over the edge – or which chancellor can reverse to put genie back in the bottle

Stony faces in quiet audience as chancellor gives little detail in dull speech

The chancellor’s speech was most interesting for what he didn’t say.

We heard the familiar refrain that this is a government that will “do things differently”, that growth is the big priority, that tax cuts are the way forward.

But there was no acknowledgement of a screeching U-turn on the 45p tax cut, and little detail on how “fiscal discipline” will be achieved.

There was no contrition, beyond an admission it had been a “tough” day.

Under the circumstances, it was a pretty dull speech; the conference audience was polite, but fairly quiet.

Then again, it may be that not making new news lines was the best possible outcome for Kwasi Kwarteng.

The loudest applause came when the chancellor talked about Brexit and Ukraine.

Red meat for the membership, but when he said this government “will always be on the side of people who need help the most” the applause was muted.

Ministers in the front row cheered loudly, but behind them there were stony faces.

His words are at odds with claims his plans disproportionately favour the wealthy: tax cuts for the richest, ending the cap on bankers’ bonuses amidst speculation about welfare cuts.

The front bench will have to do more than just cheer loudly if they are going to convince those who think they are the party of the rich.

The chancellor’s first words to the conference hall were “what a day!” and he was not wrong.

It was an extraordinary context for a chancellor’s conference speech.

Crisis talks last night led to the screeching U-turn on the government’s plans to cut the 45p top rate of tax.

The PM was the first to applaud on the front row – the trouble for her is she has portrayed herself as an unwavering, steely leader who is willing to push through unpopular decisions.

Can she credibly maintain that claim after what’s happened today?

Most bizarre speech I’ve ever heard

Labour MP Chris Bryant told Sky News he had “never heard such an uninspiring speech from a chancellor”.

“That’s the most extraordinary thing, condemning the fact that we have very low growth at the moment and that we’ve had had it for the last 12 years compared with the Labour years,” he added.

“He was complaining about the high tax rate, even though he’s voted for all the 15 rises in taxes over the last few years. It’s just the most bizarre speech I’ve ever heard.”

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Shadow chancellor Rachel Reeves said the speech showed the chancellor and government are “completely out of touch, with no understanding on its own appalling record on growth”.

She said the budget is “an economic crisis made in Downing Street, paid for by working people” and called for them to reverse the budget “and abandon their discredited, dangerous trickle down approach”.

British Prime Minister Liz Truss, Chancellor of the Duchy of Lancaster Nadhim Zahawi and Secretary of State for Health and Social Care Therese Coffey attend Britain's Conservative Party's annual conference in Birmingham, Britain, October 3, 2022. REUTERS/Hannah McKay
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Liz Truss, flanked by deputy PM Therese Coffey and Chancellor of the Duchy of Lancaster Nadhim Zahawi applauded the chancellor’s speech

Sarah Olney, the Lib Dem’s Treasury spokeswoman, said Mr Kwarteng’s speech will bring “cold comfort” to struggling households.

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‘At least 59 killed’ in Gaza after Israeli military opens fire near aid centre and carries out strikes

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'At least 59 killed' in Gaza after Israeli military opens fire near aid centre and carries out strikes

At least 59 Palestinians have reportedly been killed after the Israeli military opened fire near an aid centre in Gaza and carried out strikes across the territory.

The Red Cross, which operates a field hospital in Rafah, said 25 people were “declared dead upon arrival” and “six more died after admittance” following gunfire near an aid distribution centre in the southern Gazan city.

The humanitarian organisation added that it also received 132 patients “suffering from weapon-related injuries” after the incident.

The Red Cross said: “The overwhelming majority of these patients sustained gunshot wounds, and all responsive individuals reported they were attempting to access food distribution sites.”

The organisation said the number of deaths marks the hospital’s “largest influx of fatalities” since it began operations in May last year.

The IDF has said it fired “warning shots” near the aid distribution site but it was “not aware of injured individuals” as a result.

It said in a statement: “Earlier today, several suspects were identified approaching IDF troops operating in the Rafah area, posing a threat to the troops, hundreds of metres from the aid distribution site.

“IDF troops operated in order to prevent the suspects from approaching them and fired warning shots.”

Palestinians mourn a loved one following the incident near the aid centre. Pic: Reuters
Image:
Palestinians mourn a loved one following the incident near the aid centre. Pic: Reuters

Mother’s despair over shooting

Somia Alshaar told Sky News her 17-year-old son Nasir was shot dead while visiting the aid centre after she told him not to go.

She said: “He went to get us tahini so we could eat.

“He went to get flour. He told me ‘mama, we don’t have tahini. Today I’ll bring you flour. Even if it kills me, I will get you flour’.

“He left the house and didn’t return. They told me at the hospital: your son…’Oh God, oh Lord’.”

Asked where her son was shot, she replied: “In the chest. Yes, in the chest.”

Somia Alshaar, pictured with her daughter, says her son was shot dead. Pic: Reuters
Image:
Somia Alshaar, pictured with her daughter, says her son was shot dead. Pic: Reuters

‘A policy of mass murder’

Hassan Omran, a paramedic with Gaza’s ministry of health, told Sky News after the incident that humanitarian aid centres in Gaza are now “centres of mass death”.

Speaking in Khan Younis, he said: “Today, there were more than 150 injuries and more than 20 martyrs at the aid distribution centres… the Israeli occupation deliberately kills and commits genocide. The Israeli occupation is carrying out a policy of mass murder.

“They call people to come get their daily food, and then, when citizens arrive at these centres, they are killed in cold blood.

“All the victims have gunshot wounds to the head and chest, meaning the enemy is committing these crimes deliberately.”

Israel has rejected genocide accusations and denies targeting civilians.

Boys cry following the incident near the Rafah aid centre. Pic: Reuters
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Two boys mourn their brother at Nasser Hospital in Khan Younis. Pic: Reuters

‘Lies being peddled’

The Gaza Humanitarian Foundation (GHF), the controversial US and Israeli-backed group which operates the distribution centre near Rafah, said: “Hamas is claiming there was violence at our aid distribution sites today. False.

“Once again, there were no incidents at or in the immediate vicinity of our sites.

“But that’s not stopping some from spreading the lies being peddled by ‘officials’ at the Hamas-controlled Nasser Hospital.”

The Red Cross said its field hospital in Rafah has recorded more than 250 fatalities and treated more than 3,400 “weapon-wounded patients” since new food distribution sites were set up in Gaza on 27 May.

Read more:
‘At least 798 killed’ at Gaza aid points
’10 children killed’ waiting for Gaza health clinic to open
Israel says permanent ceasefire ‘questionable’

Palestinians inspect the wreckage of a gas station destroyed in an Israeli airstrike in Deir al-Balah, central Gaza Strip, Saturday, July 12, 2025. (AP Photo/Abdel Kareem Hana)
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Palestinians inspect the wreckage after an Israeli airstrike in Deir al Balah. Pic: AP

It comes after four children and two women were among at least 13 people who died in Deir al Balah, in central Gaza, after Israeli strikes pounded the area starting late on Friday, officials in Al Aqsa Martyrs hospital in the territory said.

Fifteen others died in Israeli airstrikes in Khan Younis, in southern Gaza, according to Nasser Hospital.

The Israel Defense Forces (IDF) has not responded to a request for comment on the reported deaths.

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Israeli has been carrying out attacks in Gaza since Hamas-led militants killed some 1,200 people and took 251 hostages on 7 October 2023.

Hamas still holds 50 hostages, with fewer than half of them believed to be alive, after most of the rest were released in ceasefire agreements or other deals.

Israel’s offensive in Gaza has killed more than 57,000 Palestinians, more than half of them women and children, according to Gaza’s health ministry, which does not distinguish between civilians and combatants in its count.

US President Donald Trump has said he is closing in on another ceasefire agreement that would see more hostages released and potentially wind down the war.

But after two days of talks this week with Israeli Prime Minister Benjamin Netanyahu, there were no signs of a breakthrough.

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The latest fatalities in Gaza comes as a 20-year-old Palestinian-American man was beaten to death by settlers in the Israeli-occupied West Bank on Friday, the Palestinian Health ministry said.

Sayafollah Musallet, also known as Saif, was killed during a confrontation between Palestinians and settlers in Sinjil, north of Ramallah, the ministry said.

A second man, Hussein Al-Shalabi, 23, died after being shot in the chest.

Mr Musallet’s family, from Tampa Florida, has called on the US State Department to lead an “immediate investigation”.

A State Department spokesperson said it was aware of the incident but it had no further comment “out of respect for the privacy of the family and loved ones” of the reported victim.

The Israeli military said the confrontation broke out after Palestinians threw rocks at Israelis, lightly injuring them.

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Backlash as Air India crash report points to possible human error – here’s what experts think

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Backlash as Air India crash report points to possible human error - here's what experts think

As investigators continue to piece together the full picture, early findings of the Air India crash are pointing towards a critical area of concern — the aircraft’s fuel control switches.

The flight, bound for London Gatwick, crashed just moments after taking off from Ahmedabad airport on 12 June, killing all but one of the 242 people on board the plane and at least 19 on the ground.

According to the preliminary report by India’s Aircraft Accident Investigation Bureau (AAIB), the two engine fuel control switches on the plane were moved from the “RUN” to “CUTOFF” position.

These switches control fuel flow to the engines and should only be used when the aircraft is on ground, first to start the engines before a flight and later to shut them down at the gate.

They are designed so they’re unlikely to be changed accidentally, pointing to possible human error on the Air India flight.

The findings include the final conversation between the pilots and show there was confusion in the cockpit as well.

When one pilot asked the other why he cut off the fuel, he responded to say he did not do so.

Pic: Takagi
Image:
The Air India plane before the crash. Pic: Takagi

Moments later, a Mayday call was made from the cockpit, but the plane could not regain power quickly enough and plummeted to the ground.

Captain Amit Singh, founder of Safety Matters Foundation, an organisation dedicated to aviation safety, told Sky News: “This exchange indicates that the engine shutdowns were uncommanded.

“However, the report does not identify the cause – whether it was crew error, mechanical malfunction, or electronic failure.”

Previous warning of ‘possible fuel switch issue’

“The Boeing 787 uses spring-loaded locking mechanisms on its fuel control switches to prevent accidental movement,” Mr Singh explained.

But a previous bulletin from the Federal Aviation Administration (FAA) “warned that these switches might be installed with the locking feature disengaged,” he said.

This could “make them susceptible to unintended movement due to vibration, contact, or quadrant flex”, he added.

A tail of an Air India Boeing 787 Dreamliner plane that crashed is seen stuck on a building. Pic: Reuters
Image:
The plane’s tail lodged in a building. Pic: Reuters

Speaking to Sky News, aviation expert Terry Tozner said: “The take-off was normal, the aircraft rotated at the correct speed left the ground and almost immediately, the cut-off switches were selected to off, one then two.

“But nobody has said with any clarity whether or not the latch mechanisms worked okay on this particular aircraft. So we can only assume that they were in normal working order.”

In India, there has been a backlash over the findings, with some saying the report points to pilot error without much information and almost dismisses the possibility of a mechanical or electric failure.

Indian government responds

India’s civil aviation minister Kinjarapu Ram Mohan Naidu has been quick to respond, saying: “We care for the welfare and the wellbeing of pilots so let’s not jump to any conclusions at this stage, let us wait for the final report.

“I believe we have the most wonderful workforce of pilots and crew in the whole world.”

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India plane crash survivor carries brother’s coffin

Both pilots were experienced, with around 19,000 flying hours between them, including more than 9,000 on Boeing 787s.

The report says the aircraft maintenance checks were on schedule and that there are no signs of fuel contamination or a bird strike.

So far, no safety recommendations have been issued to Boeing or General Electric, the engine manufacturers.

Concern over destroyed flight recorder

Mr Singh said “the survivability of the flight recorders also raises concern”.

The plane’s rear flight recorder, designed to withstand impact forces of 3,400 Gs and temperatures of 1,100C for 60 minutes, “was damaged beyond recovery”.

Read more:
Everything you need to know about the crash
Air India’s lone survivor is nothing short of miracle

“The Ram Air Turbine (RAT), which deploys automatically when both engines fail and power drops below a threshold, was observed as deployed in CCTV footage when the aircraft was approximately 60ft above ground level,” Mr Singh said.

“This suggests that the dual engine failure likely occurred before the official timestamp of 08:08:42 UTC, implying a possible discrepancy.”

Prime Minister Narendra Modi/X/AP
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India’s Prime Minister Narendra Modi visiting the crash site. Pic: X/AP

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Mr Singh said it was also “of particular note” that the plane’s emergency locator transmitter (ELT) did not send any signal after the crash.

“Was the ELT damaged, unarmed, mis-wired, or malfunctioning?” he said.

The report has generated more questions than answers on topics including human error, power source failures and mechanical or electrical malfunction.

The final report is expected to take a year. Meanwhile, families grapple with the unimaginable loss of loved ones in one of the worst disasters in India’s aviation history.

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Donald Trump announces 30% tariff on imports from EU

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Donald Trump announces 30% tariff on imports from EU

Donald Trump has announced he will impose a 30% tariff on imports from the European Union from 1 August.

The tariffs could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the US.

Mr Trump has also imposed a 30% tariff on goods from Mexico, according to a post from his Truth Social account.

Announcing the moves in separate letters on the account, the president said the US trade deficit was a national security threat.

In his letter to the EU, he wrote: “We have had years to discuss our trading relationship with The European Union, and we have concluded we must move away from these long-term, large, and persistent, trade Deficits, engendered by your tariff, and non-Tariff, policies, and trade barriers.

“Our relationship has been, unfortunately, far from reciprocal.”

In his letter to Mexico, Mr Trump said he did not think the country had done enough to stop the US from turning into a “narco-trafficking playground”.

The president of the European Commission, Ursula von der Leyen, said today that the EU could adopt “proportionate countermeasures” if the US proceeds with imposing the 30% tariff.

Ms von der Leyen, who heads the EU’s executive arm, said in a statement that the bloc remained ready “to continue working towards an agreement by Aug 1”.

“Few economies in the world match the European Union’s level of openness and adherence to fair trading practices,” she continued.

“We will take all necessary steps to safeguard EU interests, including the adoption of proportionate countermeasures if required.”

Ms von der Leyen has also said imposing tariffs on EU exports would “disrupt essential transatlantic supply chains”.

Meanwhile, Dutch Prime Minister Dick Schoof said on the X social media platform that Mr Trump’s announcement was “very concerning and not the way forward”.

He added: “The European Commission can count on our full support. As the EU we must remain united and resolute in pursuing an outcome with the United States that is mutually beneficial.”

Mexico’s economy ministry said a bilateral working group aims to reach an alternative to the 30% US tariffs before they are due to take effect.

The country was informed by the US that it would receive a letter about the tariffs, the ministry’s statement said, adding that Mexico was negotiating.

Read more US news:
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How ‘liberation day’ unfolded

Trump’s tariff threats and delays

On his so-called “liberation day” in April, Mr Trump unleashed “reciprocal tariffs” on many of America’s trade partners.

The US president said he was targeting countries with which America has a trade imbalance.

However, since then he’s backed down in a spiralling tit-for-tat tariff face-off with China, and struck a deal with the UK.

The US imposed a 20% tariff on imported goods from the EU in April but it was later paused and the bloc has since been paying a baseline tariff of 10% on goods it exports to the US.

In May, while the US and EU where holding trade negotiations, Mr Trump threated to impose a 50% tariff on the bloc as talks didn’t progress as he would have liked.

However, he later announced he was delaying the imposition of that tariff while negotiations over a trade deal took place.

As of earlier this week, the EU’s executive commission, which handles trade issues for the bloc’s 27-member nations, said its leaders were still hoping to strike a trade deal with the Trump administration.

Without one, the EU said it was prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes.

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