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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.

Read more:
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.

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Phones turned off during Yom Kippur, worshippers leaving synagogue hear news of attack

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Phones turned off during Yom Kippur, worshippers leaving synagogue hear news of attack

It’s just gone 7.30pm – and outside a synagogue in north Manchester, we’ve heard the shofar, a ceremonial horn, being blown to mark the end of the long day of prayers.

The streets, which had been so quiet all day, fill with people and families.

We’re just minutes away from where the attack took place.

But people haven’t had their phones on in synagogue – and we find ourselves in the slightly surreal position of having to tell people what happened to members of their community, just a few roads away.

Manchester synagogue latest: Suspect in killing named

Rachel gasped as she heard the news
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Rachel gasped as she heard the news

“Did many people get hurt?” Rachel, in her 70s, asks me.

I tell her two have died.

She gasps and says: “My gosh. It’s the holiest day of the year.

“Very, very frightening. We’re not safe.”

Read more:
Witnesses describe how attack unfolded

What we know about synagogue attack

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Earlier in the day on these streets, we saw additional police patrols, with officers telling us they were here to reassure members of the public.

But people are accustomed to seeing security here.

Both paid and volunteer security staff, in their hi-vis jackets, are a permanent fixture outside every synagogue.

It’s to help protect a community that, even before this attack, has felt under threat.

'The security is not the solution,' this man said
Image:
‘The security is not the solution,’ this man said

“The security is not the solution,” one man tells me as he heads home from prayers. “Those who really want to do [something like this], they will do it with lots of security, it doesn’t matter.”

Among everyone we spoke to, there was a sense of shock at what had happened, but perhaps not necessarily surprise amid rising acts of antisemitism in the UK.

David Yehudi
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David Yehudi

David Yehudi and the rabbi he studied with said it had felt like a long time coming.

“As a grandchild of a Holocaust survivor, I feel as if this is before 1935 again,” he says. “That’s the overwhelming feeling all over the world.”

The rabbi asked 'where is the United Nations?'
Image:
The rabbi asked ‘where is the United Nations?’

The rabbi adds: “The United Nations was set up with the intention of ‘never again’, and where is the United Nations? In terms of the global support against antisemitism. It’s just not there anymore. We are as unsafe as we were before the war.”

It is a shocking thing to hear, on this, the most solemn of days.

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Attack ‘sadly something we feared was coming’, Jewish leaders say

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Attack 'sadly something we feared was coming', Jewish leaders say

The UK’s chief rabbi has described the terror attack at a synagogue in Manchester as “the tragic result of Jew hatred”.

Two Jewish men were killed outside Heaton Park Synagogue on Yom Kippur, the holiest day in the Jewish calendar.

The attacker, named by police as Jihad al Shamie, a British citizen of Syrian descent, was shot dead by police seven minutes after officers were alerted to the incident.

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Britain's chief rabbi Sir Ephraim Mirvis. Pic: PA
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Britain’s chief rabbi Sir Ephraim Mirvis. Pic: PA

Sir Ephraim Mirvis said it was “the day we hoped we would never see, but which deep down, we knew would come”.

He celebrated the “courageous leadership” of rabbi Daniel Walker, who has been praised for his efforts to keep his congregation safe as the terrorist tried to get inside.

In a post on X, Sir Ephraim wrote: “For so long we have witnessed an unrelenting wave of Jew hatred on our streets, on campuses, on social media and elsewhere – this is the tragic result.

“This is not only an assault on the Jewish community, but an attack on the very foundations of humanity and the values of compassion, dignity and respect which we all share.”

He added: “May the victims’ memories be for a blessing and may the injured be granted a swift recovery.

“I pray that this tragedy strengthens our collective resolve to confront antisemitism, in all its guises, once and for all.”

Read more:
Witnesses describe how attack unfolded

What we know about synagogue attack

What is Yom Kippur?

Yom Kippur is the holiest day of the Jewish year.

It is a solemn day of observance and atonement, and marks the peak of the High Holidays.

It comes after Jewish New Year, Rosh Hashanah, with both occasions bookmarking the Ten Days of Repentance.

Jews observe Yom Kippur by prayer and fasting from sunset the day before to the sunset of the day itself.

No work is permitted, and for some, the day is spent at a synagogue.

The occasion falls on the 10th day of Tishrei – a Hebrew month between late September and early October.

The Board of Deputies of British Jews and the Jewish Leadership Council said the attack “was sadly something we feared was coming” at a time of rising antisemitism in the UK.

They said: “We are devastated at the loss of two members of our Jewish community, and our thoughts are with their families, those who are injured and receiving treatment, and all those who have been affected by this act of antisemitic terror.”

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Thanking the government, the King, the prime minister and senior politicians for their support, they added: “At this dark time, these acts of solidarity will be a comfort to our community.

“At a time of rising antisemitism in the UK, this attack was sadly something we feared was coming. We call on all those in positions of power and influence to take the required action to combat hatred against Jewish people.”

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‘We’re not safe, we’re not safe’

The chief executive of the Holocaust Memorial Day Trust, Olivia Marks-Woldman, said antisemitism “has no place in our society” and “we must confront it whenever it arises”.

“We are horrified by today’s antisemitic attack in Manchester. Taking place on Yom Kippur, a moment of atonement and reflection, it is a truly horrendous event,” she said.

“Our thoughts are first and foremost with the victims and with the Jewish community in Manchester and across the UK, who will understandably feel shocked and afraid.”

The president of the Conference of European Rabbis, Pinchas Goldschmidt, called for more to be done to “stamp out murderous ideologies”.

He added: “Jews in Manchester, England, woke up this morning to pray, and were murdered in their own synagogue. Governments from the world over should spare us the statements about fighting antisemitism and instead ensure Jews are safe.”

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Prince William hints at ‘changes’ to come when he is king

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Prince William hints at 'changes' to come when he is king

Prince William has said “change is on my agenda” when he becomes king, in his most open and personal explanation to date about how he sees his future role and the future of the monarchy. 

The revelations come during a discussion with Hollywood actor Eugene Levy as they were filming at Windsor Castle for Levy’s travel series The Reluctant Traveller.

When asked if the monarchy will be shifting in a slightly different direction when he becomes king, William says: “I think it’s safe to say that change is on my agenda.

“Change for good, and I embrace that and I enjoy that change. I don’t fear it, that’s the bit that excites me – the idea of being able to bring some change. Not overly radical change, but changes that I think need to happen.”

Pic: Apple TV+
Image:
Pic: Apple TV+

What could be described as William’s manifesto for the monarchy comes out in an unexpectedly candid interview with the Schitt’s Creek star.

The Prince of Wales also opens up about being “overwhelmed” by family problems last year – as both Kate and the King were diagnosed with cancer – and his desire to try to “make sure you don’t do the same mistakes as your parents”.

Describing how he is driven by both his passion to protect his family and his desire to ensure everything is in place when Prince George one day becomes king, he says: “I want to create a world in which my son is proud of what we do, in a world and a job that actually does impact people’s lives for the better.

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“That is caveated with, I hope we don’t go back to some of the practices in the past that Harry and I grew up in. And I’ll do everything I can to make sure we don’t regress in that situation.”

Pic: Apple TV+
Image:
Pic: Apple TV+

Analysis: Interview was personal, open and significant

Over a pint of cider, with his pet dog Orla by his feet, Prince William sets out, in one sentence, his manifesto for the monarchy: “Change is on my agenda.”

The setting and the choice of platform for it, a travel series with a Hollywood actor, could not feel more unexpected, and we are told it wasn’t necessarily planned to happen this way.

A free-flowing conversation is how it was described to me. And the result was the most personal and open interview, on topics that would usually be considered off limits.

Those close to William would say it’s the most publicly vulnerable we have seen him.

Read Rhiannon’s full analysis here.

On being monarch one day, he says: “It’s not something I wake up in the morning and think about.”

But in an earlier part of the programme, he does talk more about his desire to potentially shake things up, albeit with a caveat.

He says: “I think it’s very important that tradition stays, and tradition has a huge part in all of this, but there’s also points where you look at tradition and go, is that still fit for purpose today?”

In an incredibly open admission about sometimes feeling overwhelmed, especially last year – “the hardest year” – he also appears to reveal a man now more at peace with the role that lies ahead for him.

Eugene Levy and Prince William. Pic: Apple TV+
Image:
Eugene Levy and Prince William. Pic: Apple TV+

Speaking in St George’s Hall inside the castle, he says: “Stuff to do with family overwhelms me, quite a bit.

“You know, worry or stress around the family side of things, that does overwhelm me quite a bit. But in terms of doing the job and things like that, I don’t feel too overwhelmed by that. Not now anyway.”

His own childhood, and how that has impacted his thoughts on the media, also come across clearly, at times appearing to echo his brother Prince Harry’s thoughts on the press and drive to protect his own family from what they went through as children.

William, front, pictured with his mother, Princess Diana, and Harry in 1985. Pic: Reuters
Image:
William, front, pictured with his mother, Princess Diana, and Harry in 1985. Pic: Reuters

As he talks to Levy in a pub in Windsor, William says: “Growing up, I saw that with my parents … the media were so insatiable back then.

“And if you let that creep in, the damage it can do to your family life is something that I vowed would never happen to my family.”

Those close to the prince believe the interview is the most publicly vulnerable they’ve ever seen him on camera.

The special episode of The Reluctant Traveller With Eugene Levy on Apple TV+ with William airs from today.

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