Jeremy Hunt warns of making ‘difficult decisions’ on spending and tax – as he admits government went ‘too far, too fast’

Published

3 years ago

October 16, 2022

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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.”

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

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.

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.”

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.”

‘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.”

World

Tomorrowland: ‘Devastating’ blaze destroys main stage at major festival – two days before it was due to begin

Published

2 hours ago

July 17, 2025

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Tomorrowland: 'Devastating' blaze destroys main stage at major festival - two days before it was due to begin

A huge fire has destroyed the main stage of a major festival in Belgium – two days before it was due to begin.

Tomorrowland is a dance music event as big as Glastonbury – and David Guetta was due to perform.

Footage showed flames and thick plumes of black smoke engulfing the stage and spreading to nearby woodland on Wednesday.

The annual festival in the town of Boom, north of Brussels, is one of the biggest in Europe and attracts about 400,000 people over two consecutive weekends.

It is famous for its immersive and elaborate designs and attracts big names within dance music – including Guetta, best known for tracks When Love Takes Over and Titanium.

Dutch DJs Martin Garrix and Charlotte de Witte were also due to perform, along with the likes of Swedish House Mafia, Eric Prydz and Alok.

The festival’s website described the creative elements which went into the elaborate main stage.

The theme, described as Orbyz, was “set in a magical universe made entirely out of ice” and “full of mythical creatures”.

Organisers said no one was injured in the blaze but confirmed “our beloved main stage has been severely damaged”, adding they were “devastated”.

Spokesperson Debby Wilmsen added: “We received some truly terrible news today. A fire broke out on the Tomorrowland site … and our main stage was essentially destroyed there, which is truly awful.

“That’s a stage that took years to build, with so much love and passion. So I think a lot of people are devastated.”

Despite the fire, Tomorrowland organisers said they were still expecting 38,000 festivalgoers at DreamVille, the event’s campsite.

World

Why Israel is getting involved in Syria’s internal fighting

Published

11 hours ago

July 16, 2025

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Why Israel is getting involved in Syria's internal fighting

Israel has shown little respect for international borders since becoming the unrivalled military hegemon of the Middle East. Today that meant an Israeli airstrike on a government building in Damascus.

Israel says its attack on a Syrian defence ministry facility was intended as a warning to the new government: stay out of the part of southern Syria we have occupied or else.

Israel has moved into parts of the south of the country, built military bases and declared a line of control.

On Monday, Syrian tanks heading south to try and restore order following an outbreak of factional fighting were attacked by Israeli warplanes.

“The presence of such vehicles in southern Syria could pose a threat to Israel,” stated the Israel Defence Forces.

In reality, Syria’s ageing tanks pose minimal threat to Israel’s state-of-the art military.

The Syrian armour was attacked as it entered the area around Sweida in the Druze heartland of southern Syria following factional fighting there.

The flare-up reportedly began with clashes between Bedouin and Druze groups that ended in scores killed.

The background to the escalation is complicated.

At least three Druze militia groups are divided in their loyalties to different religious leaders and differ over how they should respond to calls to assimilate into the new post-revolutionary Syria.

Israel is becoming more and more involved in Syria’s internecine war and says it will remain there indefinitely “to protect our communities and thwart any threat”.

Its critics say Israel is operating a policy of divide and rule in Syria, weakening the fledgling government and creating a buffer zone to protect the border with the Golan Heights – originally Syrian territory that it has occupied and annexed for almost half a century.

Since the fall of the Assad regime, Israel has used airstrikes to destroy of much of Syria’s military capability weakening its ability to impose control on outlying regions. This makes it more not less likely Israel will have a volatile unstable state on its northern border.

America and European powers have chosen to normalise relations with the new government in Damascus and lift sanctions.

In contrast Israel has occupied its territory, bombed its military and today hit one of its government buildings in the capital with an airstrike.

Since its crushing military campaigns against Hamas, Hezbollah and Iran, Israel has emerged as the unchallenged military power of the region.

There is however a limit to what blunt force can achieve alone. It requires diplomacy to achieve lasting gains and Israel’s repeated assaults on multiple neighbours combined with its relentless campaign in Gaza are winning it few friends in the region.

World

Israel attacks Syrian military HQ – and disrupts live TV broadcast

Published

11 hours ago

July 16, 2025

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Israel attacks Syrian military HQ - and disrupts live TV broadcast

Israeli airstrikes have targeted the Syrian military headquarters in Damascus amid renewed clashes in the country.

The gate of the Ministry of Defence in the Syrian capital was targeted by two warning missiles from an Israeli reconnaissance aircraft.

State-owned Elekhbariya TV said the Israeli strike had wounded two civilians, the Reuters news agency reported.

It came as Israeli airstrikes targeted security and army vehicles in the southern city of Sweida, where the Druze faith is one of the major religious groups – marking the third consecutive day Israel has struck Syrian forces.

The Israeli military confirmed it had “struck the entrance gate” in Damascus – and that it would be monitoring “actions being taken against Druze civilians in southern Syria”.

Why Israel is getting involved in Syria’s internal fighting

Dominic Waghorn

International affairs editor

@DominicWaghorn

Israel says its attack on a Syrian defence ministry facility was intended as a warning to the new government: stay out of the part of southern Syria we have occupied or else.

Israel has moved into parts of the south of the country, built military bases and declared a line of control.

On Monday, Syrian tanks heading south to try and restore order following an outbreak of factional fighting were attacked by Israeli warplanes.

“The presence of such vehicles in southern Syria could pose a threat to Israel,” stated the Israel Defence Forces.

In reality, Syria’s ageing tanks pose minimal threat to Israel’s state-of-the art military.

Read the full analysis

Local media said Sweida and nearby villages were coming under heavy artillery and mortar fire on Wednesday, according to Reuters.

The clashes marked the collapse of a ceasefire between Syrian government forces and Druze armed groups, with Israel also warning it would increase its involvement.

Israel said it was acting to protect the Druze groups through its attacks on convoys of Syrian forces.

Syria blamed militias in Sweida for violating a ceasefire agreement which had only been reached on Tuesday.

A statement from its defence ministry said: “Military forces continue to respond to the source of fire inside the city of Sweida, while adhering to rules of engagement to protect residents, prevent harm, and ensure the safe return of those who left the city back to their homes.”

Israel’s defence minister Israel Katz said the military will continue to strike Syrian forces until they withdraw and should “leave Druze alone”, according to local reports.