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.
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.
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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.
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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”.
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9:13
Former BoE dept on UK economy
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.”
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1:31
Treasury minister on defence spending
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.
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”.
Image: Pic: Andrew Parsons / No 10 Downing Street
‘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.”
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.”
A 15-year-old boy from Gaza brought to the UK for urgent medical treatment has told Sky News of his joy and relief.
Majd Alshagnobi arrived at London’s Heathrow Airport with his mother and two siblings to a hero’s welcome on Wednesday evening, with well-wishers bearing flowers, gifts, and banners.
It has been a tortuous wait for the teenager, who suffered severe facial injuries in February 2024 when Israeli tank shells exploded near him and a group of friends.
Majd lost part of his face as well as his entire jaw and all his teeth. It has left him and his family traumatised.
His mother, Islam, told me that doctors at the Mamadani hospital in Gaza were shocked that her son survived the incident.
“When Majd first got to the hospital, they thought he was dead because of the severities of the injuries on his face and leg,” she said. “But when he raised his arm, they realised he was still alive.
“All the operating rooms were busy, so they carried out the operation in the kitchen to save him.
“It was very difficult for him to breathe, and they had to feed him through tubes and syringes through his nose. He really suffered.”
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2:56
Sky News investigates: Gaza’s deadliest days
Majd stood awestruck at the window of the small central London apartment where his family had been accommodated. He wore a blue surgical mask but gently pulled it down to reveal a smile.
“Thank God I have the opportunity to receive treatment here… that’s the reason I have come. To get treatment,” he said. “Since I arrived, I have felt so much happier.
“We’ve been greeted in such a nice way, with gifts and things to help us.”
But it will take time for the young football fan to come to terms with the trauma he has suffered.
When I ask him what he remembers from his time in Gaza, he replies: “I saw dogs eating bodies and I was terrified, and I thought I was going to die. Stuff like that…”
Image: Majd Alshagnobi’s mother Islam
His mother, who has had to leave two of her children in Gaza with their father, tells me: “Right now my family in Gaza live in tents. We’ve lost our home, we’ve lost our memories, we’ve lost our dreams. Nothing is left in Gaza.
“My two children who are still in Gaza with their father, every day I wake up in fear that they have been killed. Anything could happen to them in Gaza.”
Around 5,000 children have been evacuated from Gaza, with the majority going to Egypt and Gulf countries.
Majd is the third child to come to the UK with the help of the charity Project Pure Hope.
The group of volunteers have been campaigning successive governments for the last 20 months to create a scheme which would allow for the evacuation of 30 to 50 children.
The charity has raised the money to bring the children and their families to the UK, and cover their medical costs, privately.
Last week, Prime Minister Sir Keir Starmer said the government was “accelerating efforts” to evacuate Gazan children who need urgent medical care in the UK.
Omar Din, the co-founder of Project Pure Hope, says it is time for the government to step in and take responsibility.
“We’re hoping following the prime minister’s announcement last Friday, that in the coming days we’ll have some concrete actions,” he said. “The more we wait, the more children die who we could be saving.
“We’ve done this privately because there was no other option available but myself, and members of my founding team, have done lots of this work for Ukrainian refugees previously. There’s no reason we shouldn’t be doing that for Gazans.”
At a critical port on the Taiwanese island of Penghu, there is a sudden bang of explosions.
For emergency crews, it is a race to respond, attend to the injured and contain what damage they can. It is noisy and chaotic.
But this time, it is just a rehearsal.
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25:53
Is Taiwan ready for Chinese invasion?
In fact, what we have been invited to watch is part of a programme of nationwide drills to test Taiwan’s civil resilience.
To ask, in essence, if its people are ready for war.
And there are clearly questions here about whether they are.
Penghu is an archipelago that sits about 31 miles (50km) west of Taiwan’s main island. It could be an early, easy target for China – and that means preparation here is vital.
But observers who have travelled from Taipei to assess proceedings are not entirely impressed.
“Do you think with just the staff here now it will be enough?” asks one senior government official at a community hall where about a dozen staff are practising handing out food and supplies.
“Of course not! There will be more than 7,000 people queuing up. They’ll wait from morning until the afternoon and get nothing. It’s completely impossible.”
‘China is preparing to invade’
The scenarios might be imagined, but the threat behind them is very real, and it’s being met with a new sense of urgency.
And now, in an interview with Sky News, Taiwan’s deputy foreign minister Wu Chihchung lays out the reality in perhaps some of the starkest terms used by this administration to date.
“The population need to not be naive like in the past,” he says.
“China is preparing to invade Taiwan.”
Image: Taiwan was naive about its security, says deputy foreign minister Wu Chihchung
It comes at a time when increasingly sophisticated military activity and grey zone incursions from China have combined with a more robust approach from Taiwan’s new president Lai Ching-te, resulting in the most febrile atmosphere in the Taiwan Strait for decades.
Add into the mix Donald Trump’s presidency casting doubt over whether Taiwan can rely on US support in the event of a crisis, and questions about Taiwan’s readiness feel more pressing now than ever before.
“Taiwan alone, facing China – we will never be ready,” concedes Wu. “It’s not possible, China is so big, so huge.”
His words reflect harsh realities in Taiwan.
Self-governing and democratic, it is viewed by China as a breakaway province.
Under President Xi Jinping, the long-held aim of reunification has been turbocharged – he has reportedly asked his troops to be ready for a potential invasion as early as 2027.
Meanwhile, Taiwan’s new president is seen as a deeply provocative figure on the mainland, with Beijing depicting him in propaganda as a parasite “courting ultimate destruction”.
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In Lai Ching-te’s first year in office, he has demonstrated a willingness to go further in both words and policies than any who have preceded him.
He has not only described China as “a foreign hostile force” but has introduced a raft of new security measures, including the reinstating of a military court-style system, the deportation of pro-China influencers and a spike in the number of people arrested for espionage – four times as many last year as in 2021.
And all this has not gone unnoticed by China.
China’s grey zone tactics
The 14 months since Lai’s inauguration have been marked by an increase in Chinese action: numerous large-scale military drills, live-fire exercises and full encirclement of the island by jets and ships.
Beijing also appears to have been testing new capabilities, with onlookers in China taking videos of what appeared to be a test of a huge amphibious bridging system, a possible path on to Taiwan.
But perhaps the most noteworthy change has been the marked increase in so-called grey zone incursions, with China encroaching slowly in ways that are hard for Taiwan to respond to.
On Penghu, these tactics are a daily reality and are impacting lives and livelihoods.
“In the past, our fishing boats could go directly to mainland China. They’d even go ashore, maybe grab a meal,” explains Yen Te-Fu, who heads up the Penghu Fishermen’s Association.
Image: Penghu’s fishing industry has been impacted by Chinese incursions
“But fishermen are now too afraid to sail to China. When they fish in our own waters, they constantly see Chinese Coast Guard ships. They’re genuinely scared.”
He says it’s worse now than ever “because Lai Ching-te’s stance is even clearer”.
But the use of coastguard vessels to enforce new Chinese-set norms is just one tactic, according to observers.
Image: Taiwan’s Coast Guard faces off against Chinese counterparts near the coast of Hualien, east Taiwan, last December
Research published by the Taiwanese thinktank Research Project on China’s Defence Affairs (RCDA) has recorded new incidents of so-called “three-no” ships crossing the median line.
These are ships with no name, no registered home port and no registration certificate.
Thirty ships crossed on the eve of the one-year anniversary of President Lai’s inauguration as an “evidently disguised maritime militia ship”, the RCDA says.
While not against maritime law, it is nonetheless a serious accusation.
“This is nothing but a sheer slander, like a thief shouting ‘catch the thief’,” said Senior Colonel Zhang Xiaogang, a spokesperson for China’s ministry of national defence, when we put it to him.
“The relevant actions conducted by the PLA in the Taiwan Strait are necessary measures to safeguard national sovereignty and territorial integrity.”
Transactional Trump ‘constantly changing’
Conversations about Taiwan’s security have changed since Donald Trump returned to the White House.
Like most countries, the US does not share formal diplomatic relations with Taiwan, but it is treaty-bound to supply it with defensive arms, and previous presidents have hinted they would do more if needed.
But Trump has accused Taiwan of “stealing” the US semiconductor industry, slapped it with a 32% tariff rate and refused to say if he would come to Taiwan’s defence (the tariff has been paused while negotiations continue).
At a baseball game in the northern city of Taoyuan, people didn’t hold back their views.
“I think he’s quite crazy,” one woman tells us.
“He’s constantly changing, there’s no credibility at all,” says a man. “It’s always America First, not caring about any other country.”
Image: ‘I think he’s quite crazy,’ says a baseball fan on Trump
Government figures, of course, remain more diplomatic. Lai described the recent tariff negotiation as merely “frictions between friends”, but there is a sense that they know they cannot afford to become alienated from Trump.
In fact, TSMC, Taiwan’s (and the world’s) leading manufacturer of semiconductor chips, recently announced an additional $100bn investment to build factories in the US.
Semiconductors are the vital chips needed to power the modern world. Taiwan makes more than 90% of the world’s most advanced ones, and the industry is seen as one of the key reasons the West could come to its support.
Image: Trump announced the $100bn deal with TSMC president C.C Wei at the White House
The US investment was thus criticised by some as a divergence of Taiwan’s greatest defensive asset, a claim the government here bats away.
“America has also given us a lot,” insists deputy foreign minister Wu. “The American army is working hard to maintain peace in the region.
“Donald Trump certainly knows that without Taiwanese chips, he cannot make America great again.”
Taiwan’s ‘wake-up call’ on defence
With more concern over US support for Taiwan, come questions on whether the island could defend itself.
In recent years, there has been a concerted push from the Taiwanese government to better equip itself with the type of asymmetric weaponry that would be needed to resist China.
Inspired by the experiences of Ukraine, additional drone manufacturers were given contracts in 2022 to help rapidly scale up production of military-grade drones.
But data from the Research Institute for Democracy, Society and Emerging Technology shows that there is still a long way to go.
Image: Taiwan is attempting to scale up production of military-grade drones
Drone production capacity in the year to April 2025 was only around 5% of the 180,000 units Taiwan wants to be producing annually by 2028.
Thunder Tiger was one of the firms given a contract and its general manager Gene Su says Russia’s invasion of Ukraine was a “wake-up call” for Taiwanese military procurement.
But more needs to be done, he adds.
“I believe we are speeding up, but I believe that it’s not yet there,” he says.
In his dealings with the government, he feels that Trump has changed the equation, with an uptick of defence purchasing.
Image: Russia’s invasion of Ukraine was a ‘wake-up call’ for Taiwan, says Gene Su
But even with these renewed efforts, without help from allies, it is still unlikely Taiwan could hold out.
China has always been resolute and consistent.
It says the Taiwan question is purely an internal affair of China and that the Lai administration is a separatist force, which is the root cause of disruption to peace and stability across the Taiwan Strait.
It also says there is “no such thing” as a deputy foreign minister in Taiwan.
The status quo has kept Taiwan safe for nearly 80 years and the government here insists that maintaining it is their priority, but that has rarely felt so vulnerable.
France became the first G7 country to announce the move last week – while Ireland, Spain and Norway all officially recognised a Palestinian state last year.
Mr Carney told reporters in Ontario on Wednesday that Canada would do the same on certain conditions – including that the Palestinian Authority commits to fundamentally reforming its governance and to hold general elections in 2026 in which Hamas can play no part.
The Canadian prime minister said he had spoken with Mahmoud Abbas, the president of the Palestinian Authority, earlier on Wednesday.
Following the announcement, the Israeli foreign ministry said in a statement: “The change in the position of the Canadian government at this time is a reward for Hamas and harms the efforts to achieve a ceasefire in Gaza and a framework for the release of the hostages.”
A White House official later anonymously told Reuters that US President Donald Trump also believes he would be “rewarding Hamas” if he recognises a Palestinian state and therefore doesn’t plan to do so.
“President Trump’s focus is on getting people fed (in Gaza),” the official added.
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1:02
What do Israelis think of UK’s plan to recognise Palestine?
Canada had long-stated it would only recognise a Palestinian state at the conclusion of peace talks with Israel.
However, Mr Carney said the reality on the ground, including the starvation of citizens in Gaza, means “the prospect of a Palestinian state is literally receding before our eyes”.
He added: “We are working ourselves, with others, to preserve the possibility of a two-state solution, to not allow the facts on the ground, deaths on the ground, the settlements on the ground, the expropriations on the ground, to get to such an extent that this is not possible.”
The Canadian prime minister also said he “condemns the fact Israel has allowed a catastrophe to unfold in Gaza”.
Image: Palestinians carry aid supplies that entered Gaza through Israel, in Beit Lahia in the northern Gaza Strip.
Pic Reuters
British Prime Minister Sir Keir Starmer announced the UK could recognise a Palestinian state on Tuesday after he had a meeting with Mr Trump the previous day.
Sir Keir said the conditions Israel would have to meet in order to avoid such a move included taking substantive steps to end the “appalling situation in Gaza” and agreeing to a ceasefire.
Some 38 members of the House of Lords, including some of the UK’s most eminent lawyers, have since written to the attorney general to say that recognising a Palestinian state could be a breach of international law, The Times has reported.
They have said the territory may not meet the criteria for statehood under the Montevideo Convention, a treaty signed in 1933.
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0:48
Aid dropped into Gaza amid international pressure
Meanwhile, a Downing Street spokesperson confirmed Sir Keir had spoken to Mr Carney over the phone on Tuesday.
The spokesperson said: “They discussed the grave situation in the Middle East and last night’s action by the United States to tackle the severe threat posed by Iran’s nuclear programme.
“Both reiterated their support for a diplomatic solution and agreed that Iran must come back to the negotiating table with the United States as soon as possible.
“They looked forward to continuing their discussions at NATO this week.”
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A global hunger monitor has warned that a worst-case scenario of famine is unfolding in Gaza.
The Gaza health ministry reported seven more hunger-related deaths on Wednesday, including a two-year-old girl with an existing health condition.
Meanwhile, at least 48 Palestinians were killed and dozens were wounded on Wednesday while waiting for food at the Zikim Crossing, the main entry point for humanitarian aid to northern Gaza, according to the Shifa Hospital that received the casualties.
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Footage shows young girl in Gaza mourning family
It was not immediately clear who opened fire and there was no immediate comment from the Israeli military, which controls the crossing.
Israeli strikes and gunfire had earlier killed at least 46 Palestinians overnight and into Wednesday, most of them among crowds seeking food, health officials said.
The Israeli military did not immediately comment on any of the strikes. It says it only targets militants and blames civilian deaths on Hamas, because the group’s militants operate in densely populated areas.
US special envoy Steve Witkoff will travel to Israel on Thursday to discuss the next steps to address the situation in Gaza, an American official said.