Chancellor Kwasi Kwarteng to return to London from Washington early as major mini-budget U-turn expected

Published

2 years ago

October 14, 2022

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Kwasi Kwarteng will return to the UK from Washington earlier than planned, as another major mini-budget U-turn is expected.

The chancellor was due to attend a final day of meetings at the International Monetary Fund’s annual gathering in Washington today.

Instead, after a hasty briefing with journalists late on Thursday, he announced he would fly home overnight.

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

A source close to him dismissed suggestions that this represented a sign of panic and insisted that the chancellor’s focus was the medium-term fiscal plan.

Mr Kwarteng had been due to return to the UK from the annual IMF meeting later on Friday, but hasty changes were made.

Pressed on why there was a need for a last-minute schedule change, a Treasury source insisted that it was for talks on “the medium-term fiscal plan”.

The source said that the IMF trip had “put everything in a global context… a global set of challenges…”

On his return, the chancellor is likely to find a significant section of his mini-budget re-drawn following days of open revolt among Tory MPs and an expectation that another major U-turn is on the cards.

It comes amid speculation in Westminster about the fate of Mr Kwarteng, only a few weeks into the job, if his financial plans are scrapped in the coming days.

However, Mr Kwarteng has insisted that his position is safe, telling broadcasters: “I am not going anywhere.”

PM’s key pledge could be next casualty

Meanwhile, mounting pressure has been placed on Prime Minister Liz Truss to reassure the UK’s financial markets and rescue her administration, with her key pledge to scrap the planned increase in corporation tax from 19% to 25% widely seen as a likely casualty.

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.

Downing Street has not denied the policy could be reversed, despite it being one of Ms Truss’s landmark promises.

Several reports have also suggested that senior Conservatives are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt.

The Times newspaper said party grandees are among those considering replacing her with a “unity candidate”.

Sky News understands Downing Street held talks on abandoning more elements of the £43bn tax-cutting mini-budget on Thursday, with proposed changes to corporation tax and dividend tax among the policies being considered.

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‘There are difficult choices’ to be made

Speculation surrounding the proposed changes have been fuelled by the chancellor following an interview he did with The Daily Telegraph.

Asked about the expectation that the government could ditch its corporation tax promise, Mr Kwarteng simply replied: “Let’s see”.

He also insisted there would be “no real cuts to public spending”, but added that “there are difficult choices” to be made.

“You have to make sure that you know the public is getting value for money. And I make no apologies for that, there has to be some sort of fiscal discipline,” he said.

Since his mini-budget announcement at the end of September, the UK’s financial markets have been reeling, with the Bank of England forced to intervene to restore some sense of stability.

‘Get on and do it – we all know it’s coming’

Not only did his policies spook markets, but they also caused anger among the Conservative Party, with some senior Tories calling for changes to be made.

Newly elected Foreign Affairs Committee Chair Alicia Kearns told LBC’s Tonight With Andrew Marr that she wanted the PM to succeed, but added her voice to calls for a change of course on the mini-budget.

She said: “The markets are not woke, the markets are not left. The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously.”

Former chancellor Ken Clarke told Sky News he has “never known a government to make such a catastrophic start”.

Former veterans minister Johnny Mercer also tweeted that the situation “needs a course correction” from Number 10.

“Get on and do it – we all know it’s coming,” he wrote.

The government’s plans revolve around securing an increase in economic growth – with a target of an annual rise of around 2.5% in gross domestic product.

The crucial date will be 31 October, when the forecasts presented by the Office for Budget Responsibility alongside the chancellor’s statement will give an assessment on whether such a plan is realistic.

UK

Major companies part of drive to get thousands of offenders in work

Published

1 hour ago

January 10, 2025

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Major companies part of drive to get thousands of offenders in work

Bosses of leading high street businesses are set to lead a new drive to cut crime and get ex-offenders into stable jobs.

It’s part of a government initiative creating 11 new regional employment councils across England and Wales.

Leaders from firms including the Co-Op, Iceland, Greggs, and Oliver Bonas will provide voluntary advisory roles in conjunction with probation, job centres, and the Department for Work and Pensions.

The idea is to help ex-prisoners find work while they serve the remainder of their sentence in the community.

The government says roughly 80% of offending is reoffending, while the latest data shows offenders unemployed six weeks after leaving jail have a reoffending rate more than twice that of those in work – 35% versus 17%.

The employment councils will supplement the work of existing employment advisory boards, created by the former Timpsons chief executive, now prisons minister, Lord Timpson.

The advisory boards bring local leaders into 93 individual jails to help provide education and training advice, but largely stop at the prison gates.

The government wants the new councils to act as better bridges for offenders, under one umbrella – bringing together probation, prisons and local employers, helping prison leavers look for work.

This will include connections with work coaches at job centres that will provide mock interviews, CV advice and training opportunities in the community.

Lord Timpson called the new scheme and partnering with business a “win win”.

“Getting former offenders into stable work is a sure way of cutting crime and making our streets safer,” he said.

Last month Sky News heard from former offender, Terry, now employed at the cobblers and key cutters Timpsons, about what he calls an “invisible stigma” for those with criminal records seeking employment.

He said getting a secure job was life-changing because without other options “you’re probably going to think about doing crime”.

Annie Gail, head of social impact at Cook Foods, which is taking part of the government’s new scheme, also told Sky News that prison leaver programmes such as theirs are “challenging”.

She said having ex-offenders in public-facing roles “can cause concern” but insists “good business is about more than just turning a profit” and instead is about being “a force for good in society”.

The new scheme is set to start next week, and plans to get thousands of ex-offenders into stable jobs, away from a life of crime.

UK

Boy, 17, stabbed to death at Bedford bus station

Published

1 hour ago

January 10, 2025

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Boy, 17, stabbed to death at Bedford bus station

A 17-year-old boy has been stabbed to death in Bedford.

Police say Thomas Taylor was walking along Greenhill Street, close to Bedford Bus Station, when he was attacked by a group of men at 5.50pm on Wednesday.

He was taken to hospital after suffering serious injuries and died a short time later.

A murder inquiry has been launched.

The attackers have not been caught. They were described as black and wearing dark clothes. They ran away in the direction of Hassett Street and Greyfriars car park, police said.

Detective Chief Inspector Katie Dounias said: “This is an absolutely shocking incident in which a teenage boy has been stabbed to death in a busy town centre.

“We have a dedicated team of detectives working on this investigation and supporting Thomas’s family at this incredibly difficult time for them.

“I would urge anyone who saw what happened or has any information to come forward and speak to police and help us bring those responsible to justice.

“We’re aware that there are images and videos circulating on social media, please refrain from sharing any such clips and instead contact police.”

Bedford Academy headteacher Chris Deller said: “We are deeply upset and shocked to hear the sad news that a Bedford Academy student has lost their life.”

He described Thomas as a “popular, well-liked, and respected lad” who had recently finished Year 11, before heading onto sixth form.

“Our focus now is on supporting the family through such a difficult period, whilst helping our students and wider community to come to terms with such a tragic loss,” he added.

UK

Romanian grooming gang convicted of sexually exploiting women in Dundee

Published

1 hour ago

January 10, 2025

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Romanian grooming gang convicted of sexually exploiting women in Dundee

A Romanian grooming gang has been convicted of sexually exploiting 10 vulnerable women in Dundee.

Four men and one woman were found guilty of dozens of offences – including rape – following an extensive investigation into sexual exploitation, human trafficking, and the supply of drugs in the Tayside area.

Marian Cumpanasoiu, 37, Remus Stan, 34, Catalin Dobre, 44, Cristian Urlateanu, 41, and Alexandra Bugonea, 34, denied any wrongdoing but on Thursday were convicted following a trial at the High Court in Glasgow.

Detective Inspector Scott Carswell branded the offenders “deplorable” in an interview with Sky News’ Scotland correspondent, Connor Gillies.

The detective said the gang plied the women with alcohol and free Class A drugs at parties before coercing them into sexual activity, “which a lot of them didn’t want to do”.

He said: “But as things progressed, they were so addicted to the drugs that they knew the only way they could get the drugs was to perform the sexual acts that they were having to get involved in.”

DI Carswell said the gang got the women addicted to drugs in a bid to control them and keep them coming back for more.

He added: “They’ve had no thought as to the impact this is having on the victims. It’s been quite controlled in that they knew what they were doing.”

The gang will be sentenced at a later date.

Police Scotland said the offenders were arrested and charged as part of Operation Recloir, which was launched in late 2021 to target a gang of suspected human traffickers in the Tayside area.

DI Carswell said the inquiry initially focused on brothel-keeping in Dundee and the suspected trafficking of Romanian females into the country.

He added: “However, into the summer of 2022 we started to receive information that the crime group were targeting vulnerable Dundee females, and it looked like they were grooming them and coercing them with gifts of free drugs and other things until it moved on to the victims having to get involved in sexual activity to get the free drugs.

“And unfortunately, this got them addicted to the class A drugs that had been provided.”

DI Carswell said many of the victims identified believed they were the girlfriends of the men involved and did not realise they were being “groomed and used”.

The detective said the women were looking to be “cared for”, noting: “However, I believe that the end goal here was to groom the females and possibly move them into prostitution.”

DI Carswell said it was important to build up the victims’ “trust and confidence” in order to get them to engage with the force.

He said: “That did take a lot of patience, and it was something that I was passionate about with my inquiry team from the start.”

DI Carswell added work remains ongoing to ensure the women’s welfare and long-term safeguarding.

The detective believes his team identified all the victims, but not everyone wished to engage with the inquiry.

DI Carswell added: “What I would say to them is even at this time if they don’t want to engage with the police, the support’s always there if they need help with anything on the back of this.”