Connect with us

Published

on

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”.

More on Kwasi Kwarteng

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.”

Please use Chrome browser for a more accessible video player

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.
Image:
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.

Click to subscribe to the Sky News Daily wherever you get your podcasts

‘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.

Please use Chrome browser for a more accessible video player

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”.

Please use Chrome browser for a more accessible video player

‘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.

Continue Reading

World

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

Published

on

By

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)
Image:
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.

Please use Chrome browser for a more accessible video player

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

Read more from Sky News:
India and Pakistan tensions ramp up after Kashmir killings
Pope’s doctor says he didn’t suffer

More on Russia

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!”

Follow The World podcast
Follow The World podcast

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

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”.

Please use Chrome browser for a more accessible video player

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”.

Continue Reading

World

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

Published

on

By

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)
Image:
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
Image:
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)
Image:
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.

More on Donald Trump

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.

Please use Chrome browser for a more accessible video player

‘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
Image:
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
Image:
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
Image:
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.

Read more:
Student killed in school stabbing
India and Pakistan tensions rise after attack
Young people on the reality of knife crime
Oasis fans ‘lost £2m to ticket scams’

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?

Continue Reading

World

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

Published

on

By

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
Image:
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.

More on India

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.

Please use Chrome browser for a more accessible video player

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.

Map

‘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
Image:
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
Image:
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.

Continue Reading

Trending