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The chancellor has insisted he is “not going anywhere” amid the economic turmoil – and when asked if he was about to do a U-turn on corporation tax he said: “Let’s see”.

Speaking earlier in the US where he is attending IMF meetings, Kwasi Kwarteng told reporters that he remains “totally focused” on delivering the government’s growth plan.

Later, in response to a question about how markets “have improved today because they think you’re about to do a U-turn on corporation tax”, Mr Kwarteng said: “Let’s see,” according to The Telegraph.

It is his strongest indication yet of a possible change of course.

During a visit to Washington, Mr Kwarteng was asked whether he and Liz Truss, the prime minister, will be in their jobs this time next month.

“Absolutely. 100%. I’m not going anywhere,” he said.

The chancellor admitted there has been some “domestic turbulence” since he unveiled his tax-cutting mini-budget at the end of September and the pound fell to record lows against the dollar, but said there is “a very dicey situation globally”.

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Truss is out ‘and we have the numbers’, says Tory MP – politics latest

“I speak to Number 10, the PM all the time, and we are totally focused on delivering the growth plan,” he said.

Pushed on whether there will be any more reversals of policies in the mini-budget, Mr Kwarteng said: “I am totally focused on the growth agenda.”

Last week, after open revolt from Tory MPs and a surge in support for Labour in the polls, Ms Truss and Mr Kwarteng abandoned the plan to abolish the highest 45% tax rate.

Sky News understands discussions are under way in Downing Street over whether to scrap some of the contentious proposals which remain in the chancellor’s tax-cutting mini-budget.

The proposed changes to corporation tax and dividend tax are those understood to be under discussion.

Downing Street insisted earlier on Thursday that there will be no more U-turns on policies in the government’s tax-cutting mini-budget despite pressure from Conservative MPs for changes to be made.

Asked to confirm there would be no further reversals, the prime minister’s official spokesman said: “Yes, as I said to a number of questions on this yesterday – and the position has not changed from what I set out to you all then.”

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Discussions happening over whether to scrap parts of the mini-budget

Ms Truss faces open revolt in her party over the £45bn package of unfunded tax cuts in the mini-budget, which unleashed chaos in the markets when it was announced last month.

Former home secretary Priti Patel became the latest senior Tory to suggest the government could be forced into another U-turn, telling Sky News “market forces” could make a reversal on corporation tax cuts unavoidable.

The chancellor will set out his debt-cutting plan in more detail on 31 October, having bowed to pressure to bring the date forward from 23 November given the economic turbulence.

Earlier on Thursday, James Cleverly, the foreign secretary, refused to say there would be no more reversals.

He told Sky News the Halloween statement would give “a more holistic assessment of the public finances and our response to the global headwinds that every democracy, every economy in the world is facing”.

Pressed on the plan to axe the increase in corporation tax from 19% to 25% in April, Mr Cleverly said it is “absolutely right” the government helps businesses to “stay competitive” and “stay afloat”.

The Treasury had vowed to reduce the rate of income tax on dividends by 1.25 percentage points.

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How long can Truss stay in power?

Mr Kwarteng is meeting with International Monetary Fund (IMF) leaders in Washington DC today, after the institution’s chief economist said tax cuts threatened to cause “problems” for the UK economy.

Speaking at a press conference in Washington, the managing director of the IMF said it is sometimes right for a “recalibration” of policies as she was questioned over reports of further U-turns after the mini-budget market chaos.

Kristalina Georgieva said: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy.”

Read more:
What on earth is happening in UK markets?
What are bonds and where do they fit in the mini-budget crisis?

Meanwhile, in a post on social media on Thursday, former Conservative chancellor George Osborne questioned why Ms Truss and Mr Kwarteng would wait for the chancellor’s statement on 31 October to perform an “inevitable U-turn” on their mini-budget.

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Tories ‘must get back to being fiscally responsible’

On Wednesday, Mel Stride, the Tory chairman of the Commons Treasury Committee, said that given Ms Truss’s commitments to protect public spending, there was a question over whether any plan that did not include “at least some element of further row back” on the tax-slashing package can reassure investors.

While David Davis, the Tory former minister, called the mini-budget a “maxi-shambles” and suggested reversing some of the tax cuts would allow Ms Truss and Mr Kwarteng to avert leadership challenges for a few months.

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Russian foreign minister Sergei Lavrov says US and Moscow moving in ‘right direction’ for Ukraine peace

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Russian foreign minister Sergei Lavrov says US and Moscow moving in 'right direction' for Ukraine peace

Russian foreign minister Sergei Lavrov has said the US and Russia are moving in the “right direction” to end the war in Ukraine.

“We are ready to reach a deal, but there are still some specific points – elements of this deal which need to be fine-tuned,” Mr Lavrov told CBS News’ Face The Nation show, which will air on Sunday.

“We continue our contacts with the American side on the situation in Ukraine, there are several signs that we are moving in the right direction.”

A Ukrainian serviceman carries a dog out of a house damaged by a Russian airstrike in a residential neighborhood in Kyiv, Ukraine, on Thursday, April 24, 2025. (AP Photo/Evgeniy Maloletka)
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A Ukrainian serviceman carries a dog out of a house damaged by the Russian airstrike in Kyiv. Pic: AP

It comes after Ukraine’s capital of Kyiv came under the largest attack since July last year with at least 12 people killed and more than 100 injured.

Ukraine’s air force said a total of 215 drones and missiles were launched at the country by Russia on Wednesday night, with Kyiv among the areas worst hit.

Ukrainian officials said rescuers were still recovering bodies from the rubble.

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Trump: ‘I think we’re going to get peace’

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The strikes triggered a reaction by Mr Trump, who posted on his Truth Social platform saying: “I am not happy with the Russian strikes on KYIV.

“Not necessary, and very bad timing. Vladimir, STOP! 5000 soldiers a week are dying. Let’s get the Peace Deal DONE!”

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The US president was then asked about the Russian attacks while hosting Norway’s prime minister in the Oval Office, and said he “wasn’t happy” but insisted “we’re putting a lot of pressure on Russia”.

He was also asked about Crimea following reports that his peace plan includes the US acknowledging Moscow’s control of the territory.

Mr Trump admitted it would be “very difficult” for Ukraine to get the territory back, but reiterated his belief that “we’re getting close to a deal”.

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Day 96: ‘Vladimir STOP!’ Will Trump’s plea to Putin make a difference?

US secretary of state Marco Rubio said the US wanted to see both Ukraine and Russia step up to finalise a deal and further discussions were planned for the weekend.

Ukrainian President Volodymyr Zelenskyy has repeated many times that recognising occupied territory as Russia’s is a red line for his country.

Speaking about the airstrikes, he said: “It is very important that everyone in the world sees and understands what is really happening.”

Mr Zelenskyy was on a visit to South Africa when the missiles hit his country, prompting him to cut the trip short.

He said preliminary information indicated that Russia “used a ballistic missile manufactured in North Korea” and Ukraine’s special services were verifying the details.

He added if the missile was found to have been made in North Korea, it would be further proof “of the criminal nature of the alliance between Russia and Pyongyang”.

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A ‘barbaric’ 24 hours in the ‘horrendous’ Russia-Ukraine war leaves Donald Trump’s peace plan in tatters

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A 'barbaric' 24 hours in the 'horrendous' Russia-Ukraine war leaves Donald Trump's peace plan in tatters

Events in Ukraine over the last 24 hours have been utterly barbaric. Bad even by the standards of this horrendous war.  

Multiple Iranian drones and North Korean missiles laden with explosives brought carnage to swathes of the country, killing yet more civilians.

This was Russia’s answer to President Donald Trump’s peace plan and ultimatum. Normally, strangely reluctant to criticise Russia, even Trump was moved to implore Vladimir Putin to “STOP”.

Ukraine latest – Trump unhappy with Putin

Ukrainian search personnel clear the rubble after a Russian ballistic missile attack in Kyiv, Ukraine, early Thursday, April 24, 2025. (AP Photo/Efrem Lukatsky)
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Ukrainian personnel clear rubble after a Russian ballistic missile attack in Kyiv. Pic: AP

A resident reacts at the site of an apartment building hit by a Russian ballistic missile strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine April 24, 2025. REUTERS/Valentyn Ogirenko TPX IMAGES OF THE DAY
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A woman is helped after an apartment building was hit by a Russian ballistic missile strike. Pic: Reuters

A Ukrainian serviceman carries a dog out of a house damaged by a Russian airstrike in a residential neighborhood in Kyiv, Ukraine, on Thursday, April 24, 2025. (AP Photo/Evgeniy Maloletka)
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A Ukrainian serviceman carries a dog out of a house damaged by a Russian airstrike in Kyiv. Pic: AP

But in truth, throughout Trump’s Ukraine peace process – if it can be called that – most of America’s pressure has been on Ukraine.

The peace plan that has emerged from direct US talks, which were mainly with Russia, is one-sided, and to Ukraine and its European partners, it is a surrender plan which is impossible for Ukraine to accept.

Even Russia’s supporter in this war, China, has problems with it, in particular with America’s proposal that Russia is rewarded for its invasion with sovereignty of Crimea.

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Far from heading towards a peace deal, we are now, it seems, careering towards a crunch point that could see America give up on Ukraine completely, possibly blaming Kyiv for failure and renewing relations with Moscow.

Might will be proven right, and Vladimir Putin will be emboldened to do it all over again in a few years, possibly against other countries too. That is the fear in chancelleries across Europe.

There are two key questions now.

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‘Russia is winning peace talks’

An explosion of a drone is seen in the sky over the city during a Russian drone strike, amid Russia's attack on Ukraine, in Kyiv, Ukraine April 24, 2025. REUTERS/Gleb Garanich
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A drone explosion over Kyiv. Pic: Reuters

Does Trump mean he will walk away from trying to broker peace or supporting Ukraine entirely?

And if he does, can Ukraine carry on without US help?

European nations have said they will carry on supporting Ukraine. They see its survival and victory as essential for their own security.

They already give Ukraine €40bn in financial and military help. Ukraine would need another €20bn or so to fill the US gap – not that tall an order.

Pics from Telegram of Ukraine's capital Kyiv following Russian airstrike. https://t.me/s/dsns_telegram/41679
Russia launched a massive combined strike on Kyiv. According to preliminary data, 9 people have been killed, 63 injured, and 42 hospitalized, including 6 children. Recovery efforts are ongoing in 5 districts
Credit: State Emergency Service of Ukraine
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Destruction in Kyiv following a Russian airstrike. Pic: Telegram

A large-scale Russian missile and drone attack hit Kyiv overnight, killing nine people and injuring another 63, Ukrainian authorities said. Pic: Reuters
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A large-scale Russian missile and drone attack hit Kyiv overnight. Pic: Reuters

And they are beefing up their defence industries to do more to give Ukraine what it needs to fight Russia.

Ukraine’s defence increasingly depends on a homegrown drone industry, which doesn’t rely on American backing.

But Ukraine does need US intelligence, aerial defence support and satellite coverage provided by Starlink.

Were they to lose all that, they could be in trouble.

What exactly Trump does if and, as seems increasingly likely, when his deal fails, he is not making clear.

But what seems certain is America is caring less and less for Ukraine’s plight under this president.

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That poses some urgent and pressing questions for Europe.

Its leaders have always said they will support Ukraine “whatever it takes, as long as it takes”.

Do they have the political will and unity to do that, even without America by their side?

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Pakistan halts trade and India revokes visas as retaliatory measures ramp up after Kashmir killings

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Pakistan halts trade and India revokes visas as retaliatory measures ramp up after Kashmir killings

Pakistan has halted trade and India has revoked visas as tit-for-tat retaliatory actions ramp up between the two powers after an attack in Kashmir that killed 26 people.

The victims were mostly Indian tourists who had been visiting Pahalgam, a popular tourist destination in the Indian-held part of the territory, which both nuclear-armed nations claim as their own.

In response to the attack, India closed a border crossing, suspended a water-sharing treaty and downgraded diplomatic ties with Pakistan – which it blames for the assault.

Indian security force personnel stand guard at the site of a suspected militant attack on tourists in Pahalgam.
Pic: Reuters/Adnan Abidi
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Indian security force personnel stand guard at the site of a militant attack on tourists in Pahalgam. Pic: Reuters/Adnan Abidi

The Indian government did not publicly produce any evidence connecting the attack to its neighbour, but said it had “cross-border” links to Pakistan.

Pakistan has denied the accusations and a previously unknown militant group calling itself Kashmir Resistance has claimed responsibility.

On Thursday, India’s foreign ministry said all visas issued to Pakistani nationals would be revoked, effective from Sunday.

It also advised Indian citizens not to travel to Pakistan and announced other measures including cutting the number of diplomatic staff and closing the only functional land border crossing between the nations.

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In return, Pakistan said it was closing its airspace to all Indian-owned and operated airlines and suspending all trade with India – including to and from any third country.

Similarly, it also announced the cancellation of all visas under the SAARC Visa Exemption Scheme – which allows some people to have a “Special Travel” document exempting them from visas.

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Kashmir’s ‘terror attack’: What happened?

‘Act of war’

The moves are just the latest escalation of tensions between the two, as Pakistan warned that any suspension of water supplies by India would be viewed as an “act of war”.

Both Pakistan and India saw protesters turn out on the streets, calling on their respective governments to go further.

Pakistan’s Prime Minister Shehbaz Sharif chaired a meeting of the National Security Committee to respond to India’s measures.

He warned that any attempt to disrupt the Indus Waters Treaty would be met with “full force” from Pakistan.

The landmark treaty has so far survived two wars between the countries, in 1965 and 1971, as well as a major border skirmish in 1999.

It allows for a water-sharing system that is a lifeline for both countries – in particular for Pakistan’s agriculture.

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‘Ends of the Earth’

It comes after Indian Prime Minister Narendra Modi promised to pursue those responsible for the attack “to the ends of the Earth”.

Speaking on Thursday at a public meeting in the eastern state of Bihar, he said: “I say to the whole world, India will identify, track, and punish every terrorist and their backers.

“We will pursue them to the ends of the Earth.”

Police in Indian Kashmir published notices on Thursday naming three suspected militants it claimed were “involved in” the attack.

Two of the three suspects were Pakistani nationals, according to the notice.

Pakistan's Prime Minister Shehbaz Sharif chairs the meeting of the National Security Committee, in Islamabad.
Pic: AP/Prime Minister's Office
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Pakistan’s Prime Minister Shehbaz Sharif chairs the meeting of the National Security Committee, in Islamabad.
Pic: AP/Prime Minister’s Office

India's Prime Minister Narendra Modi addresses a rally in Madhubani in the eastern state of Bihar.
Pic: Reuters/Stringer
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India’s Prime Minister Narendra Modi addresses a rally in Madhubani in the eastern state of Bihar.
Pic: Reuters/Stringer

A contested Kashmir

India and Pakistan each administer a part of Kashmir, but both claim the territory in its entirety.

The region has a long, volatile and complex history.

Recent years has seen India claim that violence in the area has calmed – despite a bloody rebellion against New Delhi raging for decades.

India claims the militancy in Kashmir is Pakistan-backed terrorism.

Pakistan denies this. In a statement Thursday, the country said it supported the self-determination of the Kashmiri people.

Many Muslim Kashmiris, in a Muslim-majority territory, consider the militants part of a home-grown struggle for freedom.

Diplomatic relations between the two were already weak before the latest escalation as Pakistan had expelled India’s envoy after India revoked the semi-autonomous status of Kashmir in 2019.

This deepened tensions in the region but things have largely held stable after the two countries renewed a previous ceasefire agreement in 2021.

A demonstrator shouts slogans as he is stopped by police during a protest near the Pakistan High Commission in New Delhi, India.
Pic: Reuters/Stringer
Image:
A demonstrator shouts as he is stopped by police during a protest near the Pakistan High Commission in New Delhi after the attack.
Pic: Reuters/Stringer

Tens of thousands of people have been killed in Kashmir since the uprising began in 1989, but violence has tapered off in recent years and tourism has surged in the scenic region.

Until the most recent episode, tourists have not been the targets of such attacks.

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