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The new chancellor Jeremy Hunt has said there “were mistakes” in Liz Truss and Kwasi Kwarteng’s mini-budget.

Speaking to Sky News on Saturday, Mr Hunt said: “It was a mistake when we were going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest.”

Hunt warns of ‘difficult decisions’ – follow politics latest

He added that it was an error to “fly blind” by not accompanying the ‘fiscal event’ with an economic forecast by the Office for Budget Responsibility, which many argue sent the financial markets into turmoil.

On tax cuts, he said: “We won’t have the speed of tax cuts we were hoping for and some taxes will go up.”

Asked if this would mean a return to austerity, he replied: “I don’t think we’re talking about austerity in the way we had it in 2010. But we’re going to have to take tough decisions on both spending and tax.”

The comments signal a plan to up-end the prime minister’s entire economic strategy, in an extraordinary rebuke of the pledges that brought her into office.

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Mr Hunt was appointed chancellor on Friday, an hour after his predecessor Kwasi Kwarteng was sacked after just 38 days in the job.

While his appointment was welcomed by some Tory MPs as “an experienced pair of hands”, others questioned why Mr Kwarteng was the one who had to go when he was pursuing policies Ms Truss espoused in her leadership campaign.

At a hastily-arranged news conference in Downing Street on Friday, the prime minister dismissed calls for her resignation, saying she was “absolutely determined to see through what I have promised”.

But announcing another U-turn, she said: “It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission right now has to change.”

Mr Kwarteng’s plans to drop the planned rise in corporation tax from 19% to 25%, were therefore being scrapped, she announced, saving the Exchequer £18bn a year.

Is Jeremy Hunt now more powerful than the PM?


Rob Powell Political reporter

Rob Powell

Political correspondent

@robpowellnews

Jeremy Hunt has confirmed that Prime Minister Liz Truss’s economic vision is not only dead, but that the immediate actions of this administration will be to do almost exactly the opposite of what the prime minister promised during the summer leadership campaign.

This was a cold, hard reality check from a chancellor who is being upfront about the fact that his primary purpose is to put out the fires started by the government he’s just joined and restore some semblance of credibility to the UK economy.

Some taxes will rise, some will be cut more slowly than expected, and public spending will be trimmed with every department asked to find savings.

Does this mean pushing back the 2023 cut to the basic rate of income tax? Can the Ministry of Defence still expect its funding increase? Is there any chance of public sector pay rises reaching anywhere near inflation?

Politically, there is an argument to be made that Jeremy Hunt is now more powerful than the prime minister.

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‘The last few weeks have been very tough’

Asked why he agreed to take on the difficult job of sorting out the public finances, the new chancellor said he wants to “do the right thing by the British people”.

But he added: “I want to be honest with people, we have some very difficult decisions ahead.

“The last few weeks have been very tough, but the context of that is coming out of a pandemic and a cost-of-living crisis.

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How Truss could be removed as PM
Can PM see eye-to-eye with new chancellor?
Jeremy Hunt is arguably now more powerful than prime minister Liz Truss

“No chancellor can control the markets, but what I can do is show that we can pay for our tax and spending plans and that is going to need some very difficult decisions.”

He said that all government departments would have to “find more efficiencies than they were planning to find”.

However, he declined to give any specific commitments ahead of the fiscal statement on October 31.

Asked if the NHS will still get the money that was promised in the health and social care levy, he said “the government’s already made that commitment”.

He added: “I’m not going to make any specific commitments about specific departments now, or indeed on the tax side about specific taxes because we have to look at these things in the round. And we have to make sure as we take these very difficult decisions, we’re honest with people about the situation we face.”

‘This is a disaster’

David Lammy, the shadow foreign secretary, questioned how cuts can be made given the pressure public services are under.

He said the market turmoil seen in recent weeks is a “crisis made in Number 10” and called for a general election.

He said: “As you listen to Jeremy Hunt what you hear is despite long queues in the NHS, it’s now set to get worse, despite rising class sizes in Britain we can expect our education to get worse, and with crime soaring across many communities in the country, we need police officers.

“Are they are now going to back-pedal on those undertakings that they’ve previously made?

“This is a disaster and the only way to deal with a disaster is a general election and to set our country on a certain path for the next five years.”

He claimed Ms Truss had “no mandate” for her policies.

We cannot live in an oligarchy effectively where the Conservatives choose who leads them and as a consequence gives us a prime minister with no mandate at all to make, now, the swingeing cuts that we’re about to see.”

Mr Hunt’s comments may only add to the sense among some Tory MPs that Ms Truss is increasingly powerless in Downing Street.

Will Walden, Boris Johnson’s director of communications when he was mayor of London, called Mr Hunt an effective “caretaker prime minister”, while former Conservative leader Lord Hague warned Ms Truss’s premiership “hangs by a thread”.

Heated messages shared in Conservative Party WhatsApp groups after Ms Truss’s hastily-arranged Downing Street press conference show the party is divided about the next steps, with some MPs calling for the PM to be replaced by Rishi Sunak or Penny Mordaunt.

To register your interest and share your story, please email TheGreatDebate@sky.uk

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UK’s first taxpayer-funded injection room to open in radical move to tackle drugs epidemic

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UK's first taxpayer-funded injection room to open in radical move to tackle drugs epidemic

Glasgow has been a city crying out for solutions to a devastating drugs epidemic that is ravaging people hooked on deadly narcotics. 

We have spent time with vulnerable addicts in recent months and witnessed first-hand the dirty, dangerous street corners and back alleys where they would inject their £10 heroin hit, not knowing – or, in many cases, not caring – whether that would be the moment they die.

“Dying would be better than this life,” one man told me.

It was a grim insight into the daily reality of life in the capital of Europe’s drug death crisis.

Scotland has a stubborn addiction to substances spanning generations. Politicians of all persuasions have failed to properly get a grip of the emergency.

But there is a new concept in town.

From Monday, a taxpayer-funded unit is allowing addicts to bring their own heroin and cocaine and inject it while NHS medical teams supervise.

More on Drugs

It may be a UK-first but it is a regular feature in some other major European cities that have claimed high success rates in saving lives.

Glasgow has looked on with envy at these other models.

One supermarket car park less than a hundred metres from this new facility is a perfect illustration of the problem. An area littered with dirty needles and paraphernalia. A minefield where one wrong step risks contracting a nasty disease.

Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility
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Drugs paraphernalia in a supermarket car park in Glasgow, near the new facility

It is estimated hundreds of users inject heroin in public places in Glasgow every week. HIV has been rife.

The new building, which will be open from 9am until 9pm 365 days a year, includes bays where clean needles are provided as part of a persuasive tactic to lure addicts indoors in a controlled environment.

There is a welcome area where people will check in before being invited into one of eight bays. The room is clinical, covered in mirrors, with a row of small medical bins.

Clean needles are provided to lure addicts to inject in a controlled environment
Image:
Clean needles are provided to lure addicts to inject in a controlled environment

One of the eight bays users can inject in
Image:
There are eight bays users can inject in

We were shown the aftercare area where users will relax after their hit in the company of housing and social workers.

The idea is controversial and not cheap – £2.3m has been ring-fenced every year.

The aftercare area
Image:
The aftercare area

Read more: ‘Dying would be better than my £1,000 a month heroin addiction’

Authorities in the city first floated a ‘safer drug consumption room’ in 2016. It failed to get off the ground as the UK Home Office under the Conservatives said they would not allow people to break the law to feed habits.

The usual wrangle between Edinburgh and London continued for years with Downing Street suggesting Scotland could, if it wanted, use its discretion to allow these injecting rooms to go ahead.

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The stalemate ended when Scotland’s most senior prosecutor issued a landmark decision that it would not be in the public interest to arrest those using such a facility.

One expert has told me this new concept is unlikely to lead to an overall reduction in deaths across Scotland. Another described it as an expensive vanity project. Supporters clearly disagree.

The question is what does success look like?

The big test will be if there is a spike in crime around the building and how it will work alongside law enforcement given drug dealers know exactly where to find their clients now.

It is not disputed this is a radical approach – and other cities across Britain will be watching closely.

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UK weather: Temperatures could fall as low as minus 20C as big freeze continues

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UK weather: Temperatures could fall as low as minus 20C as big freeze continues

Temperatures in northern parts of the UK could fall as low as minus 20C on Friday night as wintry weather continues, the Met Office has said.

There are yellow warnings for ice on Friday morning covering the eastern coast of England and Scotland, the South West, Wales and Northern Ireland.

There is also a yellow warning for snow and ice for northern Scotland. All the warnings expire before midday.

In addition, freezing fog is predicted across central and southeast England, and in parts of Wales, which may be “quite stubborn to clear” on Friday morning, said Met Office meteorologist Liam Eslick.

“It’s going to be another cold couple of days,” he added, and all areas of the UK are likely to experience sub-zero temperatures.

St Andrew's church, Kiln Pit in Durham Pic: PA
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St Andrew’s church at Kiln Pit in Durham. Pic: PA

Friday night may bring the coldest temperatures of the current cold snap, with temperatures possibly plummeting as low as minus 15C or even minus 20C.

“That’s probably the lowest limits we’re expecting,” Mr Eslick said.

More on Uk Weather

“We probably don’t really expect many places to get close to minus 20C, but we could see one or two places that could just touch that mark overnight Friday into Saturday.”

That is because of still conditions, high pressure, “not a lot of wind and clear skies”.

In addition, snow on the ground helps to create “sort of a perfect scenario to see those temperatures just plummet”, Mr Eslick added.

Saturday is also likely to be bitterly cold, while Sunday is forecast to be a little warmer.

On Monday, temperatures are expected to be more in line with the seasonal norm, at about seven or eight degrees Celcius.

A woman feeds ducks in a frosty High Wycombe Pic; PA
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A woman feeds ducks in a frosty High Wycombe. Pic: PA

Read more:
Ticket re-sales could be capped under crackdown on touts
First taxpayer-funded injection room to tackle drugs epidemic

The freezing conditions have led to travel disruption, with Manchester Airport closing both its runways on Thursday morning because of “significant levels of snow”. They were later reopened.

Transport for Wales closed some railway lines because of damage to tracks.

Hundreds of schools in Scotland and about 90 in Wales were shut on Thursday.

Meanwhile, staff and customers at a pub thought to be Britain’s highest were finally able to leave on Thursday after being snowed in.

The Tan Hill Inn in Richmond, North Yorkshire, is 1,732 feet (528m) above sea level.

Six staff and 23 visitors were stuck, the pub said on Facebook.

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

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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.

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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.

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Prison recalls soar as ‘broken’ justice system struggles

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.

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