Chancellor Jeremy Hunt warns ‘nothing off table’ on tax cuts as senior Tory says government behaving like ‘libertarian jihadists’

Published

2 years ago

October 16, 2022

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A senior Tory has accused the government of looking “like libertarian jihadists” and treating the country as “laboratory mice” over the past few weeks.

Robert Halfon, former deputy chairman of the Conservative Party and an education minister under Theresa May, said he believes Liz Truss needs to apologise to the public for the economic turmoil caused by the mini-budget three weeks ago.

He told Sky News’ Sophy Ridge on Sunday programme: “I worry that over the past few weeks the government has looked like libertarian jihadists and treated the whole country as laboratory mice on which to carry out an ultra-free market experiment.

“There’s been one horror story after another.”

Cut to basic rate of income tax could be delayed – follow live politics updates

He added that the public is “frightened” about what is happening to the economy and said the prime minister needs to set out a “real vision” for the future of Britain.

Mr Halfon, who now chairs the education select committee, said he “welcomed” some of the comments made by Jeremy Hunt on his first day as the new chancellor after Kwasi Kwarteng was sacked on Friday.

Ahead of Mr Kwarteng’s sacking, Mr Halfon accused Ms Truss of trashing “the last 10 years” of Conservative government during a meeting of backbench Tory MPs she was addressing.

He told the prime minister the mini-budget disproportionately benefited the wealthy and meant she had abandoned “workers’ conservatism”, The Times reported.

Sir Charles Bean, former deputy at the Bank of England, rubbished the government’s claim the recent market turmoil was due to a “global phenomenon”.

He told Sophy Ridge on Sunday it was “disingenuous” to say it is entirely due to global events and said the UK economy was similar to Germany, but now looks “more like Italy and Greece”.

Is defence spending pledge off the books?

Andrew Griffith, financial secretary to the Treasury, hinted Ms Truss may abandon her campaign pledges, including a promise to lift defence spending from 2% to 3% by the end of the decade.

Asked specifically about committing to an increase in defence spending, he told Sophy Ridge: “There are no commitments, I’m afraid, that I can make at 9am on a Sunday morning because we’re going into a process.

“I think in fairness, you’d be the first to say ‘why would you be making decisions without taking those into full consideration and without, of course, involving the OBR’, which is something that I think all of us have said that with hindsight would have been nicer to do.”

Leading defence think tank, the Royal United Services Institute, calculated increasing defence spending to 3% of national income by 2030 would mean more than 40,000 extra military personnel and an extra £157 billion in spending.

But if that commitment is ditched, highly respected Defence Secretary Ben Wallace would likely resign, Sky News defence and security editor Deborah Haynes said.

Asked whether any backtracking on defence spending goals would be a resigning issue, a defence source said Mr Wallace would hold the prime minister to the pledges made.

That commitment appears to be in the balance after Mr Hunt this weekend repeatedly said he will ask all government departments to find “efficiency savings”.

‘Not taking anything off the table’

In his latest comments, Mr Hunt told the BBC’s Sunday with Laura Kuenssberg programme: “I’m going to be asking every government department to find further efficiency savings.

“I’m not taking anything off the table, I want to keep as many of those tax cuts as I possibly can, because our long-term health depends on being a low-tax economy. And I strongly believe that.”

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Mr Hunt added that he does not think the future will be “anything like” the former period of austerity under David Cameron and George Osborne.

Labour’s Jonathan Reynolds, the shadow business secretary, said the last three weeks of Conservative Party action has been a “disgrace” and an “embarrassment”.

“I think every time Conservative ministers come on and pretend somehow that this isn’t their responsibility, confidence falls further,” he told Sky News.

“Who is in charge of this government? What are this government’s policies? I don’t know the answer to those questions.”

UK

Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Published

2 hours ago

November 23, 2024

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

UK

Starmer says UK will ‘set out a path’ to raise defence spending to 2.5%

Published

5 hours ago

November 23, 2024

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Starmer says UK will 'set out a path' to raise defence spending to 2.5%

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

Ukraine war latest: Follow live updates

A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.