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Jeremy Hunt has admitted the government went “too far, too fast” and that he will have to take some “very difficult decisions” on spending and tax to get the economy back up and running.

Earlier, the new chancellor admitted there “were mistakes” in Liz Truss and Kwasi Kwarteng’s mini-budget in an interview with Sky News.

But in an apparent bid to restore trust in the government’s handling of the economy, Mr Hunt released a statement on Saturday night saying his focus is on “growth underpinned by stability”.

“The drive on growing the economy is right – it means more people can get good jobs, new businesses can thrive and we can secure world-class public services. But we went too far, too fast,” he said.

He appeared to warn the public it won’t be an easy road, saying the government has to “be honest with people”.

“We are going to have to take some very difficult decisions both on spending and on tax to get debt falling but the top of our minds when making these decisions will be how to protect and help struggling families, businesses and people,” he said.

“I will set out clear and robust plans to make sure government spending is as efficient as possible, ensure taxpayer money is well spent and that we have rigorous control over our public finances.”

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Mr Hunt was appointed as the new chancellor on Friday, following Mr Kwarteng’s sacking after just 38 days in the job.

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Can Jeremy Hunt save Liz Truss?

While some Tory MPs welcomed the new appointment 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.

Meanwhile, the Sunday Times is reporting that Mr Hunt will delay a planned 1p reduction to the basic rate of income tax by one year after the country’s fiscal watchdog warned that the public finances were in a worse state than expected.

Soaring interest rates

It comes as the Bank of England (BoE) said interest rates will have to be raised higher than initially hoped in the face of inflationary pressure.

In August, the Bank said it expected the rate of inflation to peak at 13% this year – and remain above 10% for a few months before falling.

But now, BoE governor Andrew Bailey says the realities of inflation might require a stronger interest rates response from the central bank.

Jeremy Hunt and Andrew Bailey. Pic: HM Treasury
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Jeremy Hunt and Andrew Bailey. Pic: HM Treasury

Mr Bailey said he spoke to Mr Hunt on Friday and had a “meeting of minds” on the issue of “fiscal sustainability”.

Taking questions in Washington, he said: “I can tell you that I spoke to Jeremy Hunt, the new chancellor, yesterday. I can tell you that there was a very clear and immediate meeting of minds between us about the importance of fiscal sustainability and the importance of taking measures to do that.”

Read more:
Mistakes in mini-budget – and some taxes will go up, Hunt says
Jeremy Hunt is arguably now more powerful than PM
‘Grotesque chaos’: Starmer hits out at Truss

He continued: “It’s not appropriate for me to constrain the choices he makes but the very clear message I would give and it is a clear message for everybody, including a clear message for markets.

“I can tell you there is a very clear and immediate meeting of minds on the importance of stability and sustainability.”

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Can Jeremy Hunt save Liz Truss?

‘Mistakes’ in mini-budget

Reflecting on the government’s recent mini-budget, Mr Hunt told Sky News that “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”.

He added that it was also 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.”

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Emergency bill to protect British Steel becomes law

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Emergency bill to protect British Steel becomes law

An emergency bill to save British Steel’s Scunthorpe blast furnaces has become law.

The urgent legislation gives ministers the power to instruct British Steel to keep the plant open.

The bill was rushed through the House of Commons and House of Lords in one day, with MPs and peers being recalled from recess to take part in a Saturday sitting for the first time in over 40 years.

Emergency bill becomes law – follow the latest reaction here

British Steel's Scunthorpe plant
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An emergency bill to save British Steel’s Scunthorpe blast furnaces has passed. Pic: Reuters

After passing through both houses of parliament, the Steel Industry (Special Measures) Bill was granted royal assent by the King.

The bill gives the government the power to take control of British Steel – or any other steel asset – “using force if necessary”, order materials for steelmaking and instruct that workers be paid. It also authorises a jail sentence of up to two years for anyone breaching this law.

Sir Keir Starmer hailed the legislation for “turning the page on a decade of decline”, adding “all options are on the table to secure the future of the industry”.

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What is the future of British Steel?

It will mean the steel plant in Scunthorpe will continue to operate as the government decides on a long-term strategy, and steelmaking in the UK more broadly.

Officials from the Department for Business and Trade arrived at the site before the bill had even passed, Sky News understands.

Earlier, staff from the plant’s ousted Chinese owners Jingye were denied access, with police called over a “suspected breach of peace” – though officers found “no concerns”.

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The role of steel in the UK economy

Ministers took the unusual step of recalling parliament from its recess to sit on Saturday after negotiations with Jingye appeared to break down.

Business Secretary Jonathan Reynolds said the measures within the bill were “proportionate and necessary” to keep the Scunthorpe blast furnaces open and protect both the UK’s primary steelmaking capacity and the 3,500 jobs involved.

The emergency legislation stops short of full nationalisation of British Steel, but Mr Reynolds told MPs that public ownership remained the “likely option” for the future.

Read more:
British Steel employees express fears over plant’s future
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During the debate, several Conservative MPs, Reform UK’s deputy leader Richard Tice and the Liberal Democrats’ deputy leader Daisy Cooper all spoke in favour of nationalisation.

MPs had broken up for the Easter holidays on Tuesday and had not been due to return until Tuesday 22 April.

The business secretary accused Jingye of failing to negotiate “in good faith” after it decided to stop buying enough raw materials to keep the blast furnaces at Scunthorpe going.

But the Conservatives said the government should have acted sooner, with shadow leader of the house Alex Burghart accusing ministers of making “a total pig’s breakfast” of the situation regarding British Steel.

The government was also criticised for acting to save the Scunthorpe plant but not taking the same action when the Tata Steel works in Port Talbot were threatened with closure.

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Major incident declared after gas explosion causes house collapse in Nottinghamshire

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Major incident declared after gas explosion causes house collapse in Nottinghamshire

A major incident has been declared in Nottinghamshire after a gas explosion caused a house to collapse.

There is still a “substantial emergency service presence” in place after the explosion in John Street, Worksop just after 7.30pm on Saturday.

Nottinghamshire Fire and Rescue Service (NFRS) declared it a “major incident” and said “multiple houses in and around John Street have been evacuated”. Nearby Crown Place Community Centre has been opened as a “place of safety”, the service said. Around 20 people have sought refuge there, Sky News camera operator James Evans-Jones said from the scene.

Videos posted on social media showed the front of a terraced house blown out with the roof collapsed, while neighbouring houses had their windows damaged.

NFRS said in a statement late on Saturday: “This has now been declared a major incident, and we are likely to be on scene throughout the night and even into Sunday morning.”

The fire service said it was called to the scene at 7.39pm.

The back of the property where the explosion happened in Worksop. Pic: YappApp
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The back of the property where the explosion happened in Worksop. Pic: YappApp

Pic: YappApp
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Pic: YappApp

“This is a gas explosion involving a house that has been significantly damaged,” the service said in a previous statement.

More on Nottinghamshire

One person posted on Facebook that they heard “a terrific bang, like a very loud firework” as they turned into Gladstone Street from Gateford Road.

“I thought the back end had blown off my car,” they said. “A house in John Street has had, presumably, a gas explosion!”

Emergency services at the scene on Saturday. Pic: YappApp
Image:
Emergency services at the scene on Saturday. Pic: YappApp

NFRS said it was also called to a separate incident shortly afterwards but does not believe the two are connected.

Ten fire engines were sent to the scene of the industrial fire in nearby Holgate Road in The Meadows, Nottingham.

“The building has been severely damaged but there are no reports of any injuries,” NFRS said.

Having been called to the incident at 8.11pm, NFRS said at around 10.30pm that it was scaling its response down with the flames “now under control”.

NFRS’s group manager Leigh Holmes said from the scene just after 11pm: “We will begin to relax the cordon in the next hour as we continue to scale down this incident.”

A damaged building at The Meadows in Nottingham. Pic: NFRS
Image:
A damaged building at The Meadows in Nottingham. Pic: NFRS

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A sticking plaster, not a solution: What next for British Steel?

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A sticking plaster, not a solution: What next for British Steel?

Sir Keir Starmer was flying the flag for domestic steel production on Saturday as his government passed emergency legislation to give itself extraordinary powers to intervene in the running of the steel works in Scunthorpe and elsewhere.

He wants voters to notice that his intervention-friendly government has stepped in to save virgin steel production which was days away from dying out for good because of what ministers call the bad faith behaviour of Chinese owners.

The politics and optics of Saturday’s intervention seem relatively simple. What happens next, however, is not.

Follow live updates: Emergency law to keep British steel plant open

Even before the emergency bill had made its way through parliament, officials had turned up at British Steel in Scunthorpe.

There’s a nervousness about what happens next. As one person close to the talks told me, keeping the blast furnaces alive is far from a foregone conclusion and there are difficult times to come.

More on Sir Keir Starmer

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Emergency steel bill receives King’s approval

“We’re in for a very hard few days and week while government and UK management secure and ensure the vital loads of raw materials needed,” said a source.

“You can’t just do next day delivery on Amazon. Until this is in the blast furnaces keeping them going this won’t be a job done.”

It stands to reason the government will pull out all the stops and the furnace for now will be kept alive, whatever the cost, because the political cost of failure at this point is too high.

Future not secure

But the medium term prospects for virgin British steel are far from secure.

The blast furnaces being saved only have a few years life at best – but it remains unclear who will fund a transition to the new-style electric blast furnaces.

Jonathan Reynolds, the business secretary, said: “The action I seek to take today is not a magic wand or a panacea.

“The state cannot fund the long term transformation of British Steel itself, nor would it want to do so.”

Nor would he say that steel production is an overriding national security issue, effectively guaranteeing future production. The wiggle room will be noted in Scunthorpe and beyond.

The government has provided a sticking plaster not a solution.

But this is about so much more than what’s going on in Lincolnshire, this is about Britain’s place in the world – and its resilience.

SIR KEIR STARMER SCINTSHORPE

Is dependence on China inevitable?

Can our domestic steel industry survive if Trump continues to impose 25% tariffs on steel going from the UK to the US?

Can we make our own weapons for years to come – as part of Mr Starmer‘s newfound commitment to spend 3% of GDP on defence – without British steel?

Is the eventual dependence on Chinese steel an inevitability?

Yet one of the fascinating features of Saturday’s debate was the most strident attack on a Chinese entity by a minister – the toughest assault since Mr Starmer’s government entered office.

Mr Reynolds said: “Over the last few days, it became clear that the intention of Jingye was to refuse to purchase sufficient raw materials to keep the blast furnaces running.

“In fact, their intention was to cancel and refuse to pay for existing orders. The company would therefore have irrevocably and unilaterally closed down primary steelmaking at British Steel.

“Their intention has been to keep the downstream mills, which colleagues will know are fundamental to our construction steel industry, and supply them from China rather than from Scunthorpe.”

This attack – at a time when ministers (most recently Ed Miliband) have been heading to Beijing to repair relations.

However, the accusation that a Chinese entity has been acting in bad faith in order to effectively scupper domestic steel production is a serious charge.

It also comes before we find out whether Donald Trump is going to make it harder for allies to trade with China.

The government has succeeded in protecting the domestic manufacturer of virgin steel for the short term.

But what happens in the long term, and where we might get it from, remains as murky today as it did before.

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