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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”.

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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.”

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Pressure builds on Kwarteng

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.

Former chancellor Rishi Sunak has no comment when asked about the Truss government tax cuts.
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Former chancellor Rishi Sunak gave no comment when asked about the Truss government tax cuts

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”.

Read more:
What on earth is happening in UK markets?
What are bonds and where do they fit in the mini-budget crisis?
‘Don’t prolong the pain’

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.

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Mini-budget caused ‘some turbulence’

‘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”.

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‘Catastrophic start’ – Ken Clarke slates Truss

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.

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Is wider war in the Middle East now inevitable?

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Is wider war in the Middle East now inevitable?

The pictures from Beirut are unnerving to say the least, the predictions for the immediate future even more so.

With the dust still settling from this game-changing assassination of Hassan Nasrallah, there are pressing questions crying out for answers.

Most of all, is the Middle East about to erupt into a regional conflict that threatens us all? That’s been the warning for almost a year, so is it about to happen?

Not if America and its allies can help it.

Follow latest: Iran warns Israel will ‘regret their actions’

Hezbollah is a designated terrorist organisation for the US, UK and other Western nations. It has killed hundreds of their citizens over the years.

There is no doubt President Joe Biden has felt what he called a “measure of justice” that Nasrallah has been killed.

More on Hezbollah

But there is also a fear of what comes next. From the president down we are hearing urgent calls for de-escalation and a diplomatic solution. And the US has rushed military assets to ward off Hezbollah’s patrons in Iran doing their worst. But will that be enough?

Pic: Stringer/picture-alliance/dpa/AP
27 September 2024, Lebanon, Shebaa: Lebanese Red cross workers inspect a destroyed three storey building, after it collapsed following an Israeli air raid in the southern Lebanese border village of Shebaa. Photo by: Stringer/picture-alliance/dpa/AP Images
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Lebanese Red Cross workers inspect a destroyed building. Pic: AP

US-led diplomacy to contain the Middle East crisis has failed.

A senior Middle Eastern diplomat told Sky News the assassination is a kick in the teeth for the US president.

“For all the bombs and billions he has given the Israelis,” he said, “the least they could have done for him in the last weeks of his presidency was a ceasefire in the region”.

With diplomacy stalled, what happens next depends on both Iran and Israel.

For its part, Iran may feel it has no alternative but to weigh in. It may fear the massive missile arsenal it supplied is so jeopardised it must intervene and save Hezbollah.

Pic: AP
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Smoke rises as a building collapses in Beirut’s southern suburbs. Pic: AP

Iranians have long regarded Hezbollah as an insurance policy for the day Israel might attack Iran itself. If it sees its ally close to total collapse, might it then weigh in?

If it does, Israel’s allies led by America might feel compelled to come to its defence. The full scale war feared for almost a year could engulf the region.

But there are good reasons for Iran not to rush to action.

The Middle East seems a dangerous and unpredictable place but certain rules and assumptions apply, even in all its chaos.

For all their fanaticism, the ayatollahs of Tehran are pragmatic and seek the preservation of their grip on power above all. That has been a rule of the Middle Eastern jungle since they seized power 45 years ago.

Is it pragmatic or wise to up the ante and more directly support Hezbollah, when it is at its weakest? The Iranian regime is not that strong either, crippled economically by sanctions and mismanagement, and socially and politically by months of civil unrest, albeit now quashed.

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There are limits too to what Iran could achieve with direct military intervention anyway in a war that is 2,000km from its borders. The Iranians may conclude this round in the war against Israel is over. They think in long time spans, after all. Time to regroup and move on to fight another day?

There will no doubt be days more of sound and fury, like we have seldom seen before. The mourning and funerals of Nasrallah and his lieutenants are likely to be the focus of intense anger and will raise tensions. But what happens afterwards?

That also comes down to Israel.

People stand next to Israeli Army tanks, amid cross-border hostilities between Hezbollah and Israel, in northern Israel, September 27, 2024. REUTERS/Jim Urquhart
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People stand next to IDF tanks in northern Israel. Pic: Reuters

It may now feel it has the wind in its sails and seize the moment to invade Lebanon on the ground to push Hezbollah back from the border. That would be an extremely dangerous moment too, potentially drawing in supportive militia and Iranian forces based in Syria.

The hills of southern Lebanon are a treacherous country for a military like Israel’s that relies on infantry and tanks. They could be drawn into a lengthy and punishing campaign that could then destabilise the region.

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What does Nasrallah’s death mean for Hezbollah?

Read more:
Analysis: Hezbollah and Iran must decide to fight or back down
Who was Hassan Nasrallah?

Then there is Lebanon itself. An uneasy compromise between the warring factions of its civil war in the 1970s and 80s has held for decades but its always fragile status quo is now threatened. The chessboard of its multi-denominational politics has potentially been upended by the removal of its most powerful player.

If Lebanon descends back into factional fighting, regional stability will be undermined too.

The Middle East is in grave danger of further escalation. Western and regional diplomats are working round the clock to pull it back from the brink but recent efforts have all ended in failure and neither Israel nor Hezbollah seem to be listening.

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Hezbollah leader Hassan Nasrallah killed after Beirut airstrikes, Israeli army says

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Hezbollah leader Hassan Nasrallah killed after Beirut airstrikes, Israeli army says

Hezbollah leader Hassan Nasrallah has been killed after airstrikes in Beirut, the Israeli army has said.

Recent weeks have seen Israel unleash a barrage of strikes against Lebanon after it turned its attention to the conflict at its northern border.

On Friday, Israel targeted the capital Beirut with a series of attacks claiming to have struck the headquarters of Hezbollah.

Israel-Hezbollah latest

People stand near a picture of Hezbollah leader Sayyed Hassan Nasrallah during the funeral of Hezbollah member Ali Mohamed Chalbi, after hand-held radios and pagers used by Hezbollah detonated across Lebanon, in Kfar Melki, Lebanon September 19, 2024. REUTERS/Aziz Taher
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People stand near a picture of Nasrallah during the funeral of a Hezbollah member. Pic: Reuters

People watch Lebanon's Hezbollah leader Sayyed Hassan Nasrallah delivering a televised address, as they sit at a cafe in Beirut, Lebanon September 19, 2024. REUTERS/Mohamed Azakir
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People watch Hassan Nasrallah delivering a televised address in Beirut. Pic: Reuters

The Israel Defence Forces (IDF) said it carried out a “precise strike” on Hezbollah’s “central headquarters”, which it claimed was “embedded under residential buildings in the heart of the Dahieh in Beirut”.

The first wave of attacks shook windows across the city and sent thick clouds of smoke billowing into the air.

Smoke rises from Israeli airstrikes in Beirut's southern suburbs. Pic: AP
Image:
Smoke rises from Israeli airstrikes in Beirut’s southern suburbs. Pic: AP

While Israel stressed it had been a “precise” strike, preliminary figures from Lebanon’s health ministry confirmed at least six other people were killed and 91 were wounded.

Israel said Nasrallah was the intended target and initially there were claims he had survived.

However, after several hours of confusion, his death was confirmed by Israel.

“Hassan Nasrallah will no longer be able to terrorise the world,” the IDF said.

Hours later, a defiant Hezbollah confirmed Nasrallah’s death but vowed their fight with Israel would continue after confirming they had fired upon sites in northern Israel.

“The leadership of Hezbollah pledges to the highest, holiest, and most precious martyr in our path full of sacrifices and martyrs to continue its jihad in confronting the enemy, supporting Gaza and Palestine, and defending Lebanon and its steadfast and honourable people,” they said.

Recent days have seen Israel launch strikes in Lebanon in Beirut, the Bekaa Valley, and Bhamdoun
Image:
Recent days have seen Israel launch strikes in Beirut, the Bekaa Valley, and Bhamdoun

datawrapper map of Beirut showing the suburb of Dahieh
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The Israeli strike that allegedly took Nasrallah’s life was on residential buildings in Dahieh, Beirut

Alongside claiming to have killed Nasrallah, the IDF said it had killed a number of other commanders, including Ali Karaki, the commander of the southern front.

The country’s military said the strike was carried out while Hezbollah leadership met at their underground headquarters in Dahieh.

In the aftermath of the most recent attacks, an Israeli military spokesperson declined to comment on whether US-made Mark 84 heavy bombs were used in the strike against Nasrallah.

“The strike was conducted while Hezbollah’s senior chain of command were operating from the headquarters and advancing terrorist activities against the citizens of the State of Israel,” Lieutenant Colonel Nadav Shoshani said in a media briefing.

He continued: “We hope this will change Hezbollah’s actions.”

Read more from Sky News
Did Israel sabotage the best chance of ending the war?
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Hezbollah leader killed says IDF

He added the number of civilian casualties was unclear but blamed Hezbollah for positioning itself in residential areas.

“We’ve seen Hezbollah carry out attacks against us for a year. It’s safe to assume that they are going to continue carrying out their attacks against us or try to,” he said.

Meanwhile, Iran said it was in constant contact with Hezbollah and other allies to determine its “next step”, but Reuters reported the country’s supreme leader was transferred to a secure location in light of the latest attack.

Speaking after the attack, Ayatollah Ali Khamenei called on Muslims “to stand by the people of Lebanon and the proud Hezbollah” and said: “The fate of this region will be determined by the forces of resistance, with Hezbollah at the forefront,” state media reported.

Nasrallah’s death will be a blow to Hezbollah as it continues to reel from a campaign of escalating Israeli attacks.

Flames rise after an Israeli airstrike in the southern suburbs of Beirut this morning. Pic: AP
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Flames rise after an Israeli airstrike in the southern suburbs of Beirut on Saturday. Pic: AP

Nasrallah is latest Hezbollah leader to fall

While Nasrallah’s death is certainly the most high-profile of recent attacks, it continues a trend of Israel targeting Hezbollah’s leadership structure.

Also on Saturday, in the early hours of the morning, the commander of the group’s missile unit and his deputy were killed in another Israeli attack in southern Lebanon.

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Then, in a separate strike overnight on Friday, the IDF said it killed the head of Hamas’s network in southern Syria.

This followed the deaths of other senior commanders, including Muhammad Qabisi, earlier in the month.

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Muriel Furrer: Swiss teenage cyclist dies after crash at world championships

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Muriel Furrer: Swiss teenage cyclist dies after crash at world championships

A Swiss teenage cyclist with “a bright future ahead of her” has died a day after suffering a serious head injury at the world championships.

Muriel Furrer crashed while competing on rain-slicked roads in the junior women’s road race in her home country.

The 18-year-old rider fell heavily on Thursday in a forest area south of the city of Zurich and was airlifted to hospital by helicopter, reportedly in a critical condition.

Race organisers announced on Friday she had died.

Zurich University Hospital. Pic: Reuters
Image:
The cyclist died at Zurich University Hospital. Pic: Reuters

They said in a statement: “Muriel Furrer sadly passed away today at Zurich University Hospital.”

The UCI governing body for world cycling paid tribute to her in a statement on its website, entitled “The cycling world mourns the loss of Muriel Furrer”.

It read: “It is with great sadness that the Union Cycliste Internationale (UCI) and the Organising Committee of the 2024 UCI Road and Para-cycling Road World Championships today learned the tragic news of the death of young Swiss cyclist Muriel Furrer.

“With the passing of Muriel Furrer, the international cycling community loses a rider with a bright future ahead of her. We offer sincere condolences to Muriel Furrer’s family, friends and her Federation Swiss Cycling.”

Swiss Cycling said in a post on X: “Our hearts are broken, we have no words. It is with a heavy heart and infinite sadness that we have to say goodbye to Muriel Furrer today.

“We are losing a warm-hearted and wonderful young woman who always had a smile on her face. There is no understanding, only pain and sadness.”

At a news conference, a director of the Swiss organising committee Olivier Senn said he could not confirm exactly where the crash happened.

Police and the public prosecutor’s office were investigating the incident, Mr Senn said.

Furrer had finished in 44th position in the junior women’s time trial earlier in the week.

The rider’s family has asked for the championships – which last for nine days – to continue, said UCI sports director Peter van den Abeele.

The women’s and men’s elite races, scheduled for Saturday and Sunday respectively, will use the same stretch of road where the fatal crash happened.

A UCI gala event scheduled for Saturday evening has been cancelled, along with public events to mark races planned for Friday.

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Second Swiss cyclist death

Furrer is the second Swiss cyclist to die in just over a year after crashing on home roads.

At the Tour de Suisse in June 2023, Gino Mader went off the road and down a ravine during a descent. The 26-year-old died from his injuries the next day.

“Obviously it is another tragic death,” Mr Senn said. “There are a lot of similarities, similar feelings. Today is about Muriel.”

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