Financial markets have reacted positively to the new chancellor’s cull of more costly measures in his predecessor’s disastrous mini-budget.
Jeremy Hunt revealedin a televised statement that he would no longer be proceeding with almost all the controversial package, including the reduction in the basic rate of income tax from 20% to 19% from next April.
The main revelation was that the energy price guarantee, effectively capping wholesale costs for households over the next two years, would stall in April with its future make-up to become the subject of a Treasury-led review.
It would also, the chancellor said, be more targeted towards the worse off.
The moves, while potentially damaging for family finances next year, were welcomed by investors as the pound gained further lost ground against the dollar.
It stood above $1.13 at one stage – up by almost a cent and a half – before stabilising just below $1.13.
UK government borrowing costs also eased further.
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Yields – the effective interest rate demanded in return for holding UK public debt – on 20 and 30-year bonds were down by more than 40 basis points.
Mr Kwarteng, who was sacked on Friday after just 38 days in the job, paid the price for a tax and spending package that called into question the government’s economic credibility on financial markets.
The mini-budget led not just to a collapse in the value of the pound, but also prompted a surge in borrowing costs – forcing an unprecedented intervention by the Bank of England (BoE).
Both moved in the right direction after the prime minister’s announcement on Friday that Mr Kwarteng was going and that corporation tax would rise to 25% from April next year instead of being kept at 19%.
Mr Hunt, a former foreign and health secretary, promised to win back the confidence of the financial markets by fully accounting for the government’s tax and spending plans.
His statement on Monday was aimed at supporting “fiscal sustainability”.
Mr Hunt met the BoE governor Andrew Bailey and the head of the Debt Management Office on Sunday night to brief them on his plans.
A full medium-term fiscal plan, containing analysis from the Office for Budget Responsibility, is still due to be revealed on 31 October.
‘Unruly pupils are still scheming to oust the beleaguered head’
There remained an elephant in the room as far as financial analysts were concerned – the fate of the architect of the government’s initial economic strategy, Liz Truss.
Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown, said: ”This is all part of his (Mr Hunt’s) charm offensive to instil confidence in the government’s ability to be fiscally responsible, but behind him unruly pupils are still scheming to oust the beleaguered head,” she wrote.
Joshua Raymond, director at online investment platform XTB.com, said of the chancellor’s update: “It’s a complete reversal on every single major political pledge she has made to date and as a result, her political authority is most likely at an end.
“In a matter of days, I expect the market focus to shift more towards who replaces Liz Truss as prime minister of the UK.
“Liz Truss today became prime minister in name only.”
Can Truss remain as PM?
A Tory MP told Sky News: “The idea that the prime minister can just scapegoat her chancellor and move on is deluded.
“This is her vision. She signed off on every detail and she defended it.”
The Conservative Party is now on its fifth chancellor in the past three years – Mr Hunt, Mr Kwarteng, Nadhim Zahawi, Rishi Sunak and Sajid Javid.
Nearly 500 people have been arrested over protests supporting the proscribed group Palestine Action, as demonstrators defied calls to reconsider in the wake of the Manchester synagogue terror attack.
Two days after the attack in Crumpsall, crowds of people gathered in central London on Saturday to call on the government to reverse the ban on the proscribed group.
Organisers of the protest, Defend Our Juries, said 1,000 people attended the event to “oppose genocide and the Palestine Action ban”.
The Metropolitan Police said 492 people had been arrested, with the youngest being 18 and the eldest 89. The force said 297 remain in custody and the rest have been bailed.
Before the demonstration even began, six people were arrested for unfurling banners which read “I oppose genocide” and “I support Palestine Action” on Westminster Bridge.
The bulk of the arrests were made in Trafalgar Square, where protesters held placards showing their support for Palestine Action, which was added to the UK’s list of proscribed terrorist groups in July.
The Met said a different group of protesters also gathered in Whitehall before trying to make their way to Trafalgar Square.
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Met Police call on pro-Palestine protesters
Many of those arrested throughout the day were older individuals. Pictures showed people with walking sticks or in wheelchairs being supported by police, while others were physically carried to a processing pen after failing to cooperate with officers.
One protester, 62-year-old Mike Higgins, who is blind and uses a wheelchair, told the PA news agency: “We are going to win this battle, by the way, there’s no doubt about that. The problem for me is that I want to win it now to try and bring an end to the suffering in Palestine.”
Image: Police remove a protester taking part in a demonstration in support of Palestine Action in Trafalgar Square. Pic: PA
Image: Pic: PA
The Metropolitan Police had urged the Defend Our Juries group to postpone the event in light of the synagogue attack.
Chief of the Metropolitan Police, Sir Mark Rowley, said he was worried resources would be stretched and the ability of the force to protect communities would be compromised as a result of the protest.
Image: Protesters unfurl a banner on Westminster Bridge. Pic: PA
Image: Pic: PA
In a statement on X on Saturday morning, Sir Keir Starmer also said anyone thinking of protesting should “recognise and respect the grief of British Jews”, while Jewish figures called the action “phenomenally tone deaf”.
In a letter to Ade Adelekan, the deputy assistant commissioner of the Metropolitan Police, Defend Our Juries said the protest would continue as planned as “the protection of our democracy and the prevention of countless deaths are critical issues”.
The controversial decision drew criticism from policing minister Sarah Jones, who said many of those attending the event “want to be arrested, that is their aim”.
She said: “We believe in people’s rights to protest. This protest here in London is a different order of event because people are supporting a proscribed organisation and the police have to step in, in that case.”
Image: Pic: PA
A similar event held by the group, Greater Manchester Friends of Palestine, took place earlier on Saturday in Manchester. Instead of marching in support of Palestine Action, the event was to “honour the names of Palestinian children brutally killed by Israel in Gaza”.
A crowd of around 100 pro-Palestinian supporters gathered outside the city’s Cathedral to listen to speakers before moving en masse to St Peter’s Square.
Image: A similar event was held in Greater Manchester. Pic: Reuters
Image: A counter-protester in Manchester. Pic: Reuters
People were heard chanting “Free Palestine!” while a small group of counter-protesters marched in front shouting “release the hostages”.
Greater Manchester Police (GMP) did not say if any arrests were made.
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Synagogue attack: Burnham and Badenoch in Manchester
Away from the protests, GMP said four of the six people arrested in connection to the synagogue terror attack will remain in custody for up to another five days.
The force said the custody extension applies to two men, aged 30 and 32, and two women, aged 61 and 46.
An 18-year-old woman and a 43-year-old man have been released and will face no further action.
GMP said all six people had been arrested on suspicion of commission, preparation and instigation of acts of terrorism.
Police have been granted extra time to question four people who were arrested in connection with the terrorist attack on a synagogue in Manchester.
Three men remain in hospital after the car and knife attack at the Heaton Park Hebrew Congregation Synagogue on Thursday.
Jihad al Shamie, 35, who was on bail for an alleged rape, was shot by police as he launched the attack on Yom Kippur, the holiest day in the Jewish calendar.
Adrian Daulby, 53, is believed to have been shot dead by police while trying to stop al Shamie from entering the synagogue.
He died alongside Melvin Cravitz, 66, a worshipper who helped prevent the attacker from entering the place of worship.
Image: Pic: PA
Counter Terrorism Policing North West (CTPNW) is leading the police operation and has been granted warrants allowing them to detain four people who were arrested on suspicion of preparing terrorist acts for a further five days.
The warrants relate to two men, aged 30 and 32, and two women, aged 46 and 61.
Greater Manchester Police (GMP) said the investigation was “continuing at pace” with “significant resources” mobilised in order to “establish the full picture into what has happened”.
The force said three men remain in hospital with serious injuries, including a security guard with car-impact injuries and a Community Security Trust (CST) worker with stab wounds.
On Friday, the police watchdog, which is investigating the incident, said it was examining the use of lethal force by GMP firearms officers, including “whether police may have caused or contributed to the death” of Mr Daulby.
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Arrests at pro-Palestine protest
Nearly 500 arrested as pro-Palestine protest goes ahead despite pleas
It comes as 492 people were arrested over protests supporting the proscribed group Palestine Action in Trafalgar Square on Saturday.
The demonstration went ahead despite Sir Keir Starmer, other politicians and police bosses calling on organisers to reconsider.
The Board of Deputies of British Jews called for those who attended the demonstration arrested under the Terrorism Act to also be investigated for stirring up racial hatred.
The board is set to hold an event in the same location on Sunday afternoon to reflect on the two-year anniversary of the 7 October Hamas attack.
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Met Police call on pro-Palestine protesters
On Friday, the head of counter-terrorism policing, Laurence Taylor, said a “suspicious device” attached to al Shamie’s torso was fake and police believed he “may have been influenced by extreme Islamist ideology”.
He added: “Based on some fast-time assessments conducted on our systems, this individual does not appear to be known to counter-terrorism policing, however, he does have a non-CT (counter-terror) related criminal history.
“This includes a recent arrest for rape, which resulted in him being bailed.”
A close adviser to Prince William has told Sky News William “does care deeply about tradition” but his Earthshot Prize shows he’s not afraid to modernise to make sure his work “makes sense” for the generation he will serve.
Marking a month to go until the fifth Earthshot Prize awards takes place in Rio de Janeiro in Brazil, Jason Knauf, the new chief executive, says it shows “the sort of leader that Prince William wants to be, both now and in the future” but also the huge impact his influence can have on issues like the climate crisis.
Mr Knauf has become a close confidante of the Prince, having worked with him for ten years, and being there right at the beginning of the Earthshot journey, “when this thing was percolating, and he really pushed us to make it something special”.
But after discussions this week about the “change” William wants to make when he’s monarch, Mr Knauf told us the Prince doesn’t want to just shake things up for the sake of it.
“He does care deeply about tradition, about his family’s legacy of service, and I think Earthshot is a really good example of how you’re going to see that maintained in the future, but done in a way that makes sense for the time”, he said, adding: “That’s what his grandmother did.
“That’s what his father’s been doing. Updating the tradition for the generation that they serve”.
Image: Prince William joined actor Cate Blanchett during a visit to Earthshot Prize finalist Colorifix. Pic: Andrew Parsons / Kensington Palace
Explaining how in the early days they looked closely at other examples of past royal prizes or initiatives, such as the Duke of Edinburgh Award, for inspiration, Mr Knauf said: “You know, we didn’t just create this thing in a vacuum. It was about what kind of difference could his leadership make?
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“And one of the things about the royal family for generations, has been recognising the work of others.
“You know, whether that’s through the honours system, recognising people in arts and community service or whatever it might be, all this is doing is taking something that’s really traditional and putting a modern twist on it”.
Image: Pic: AP
Last week, a TV programme was released in which Prince William admitted, during an interview with Hollywood star Eugene Levy, that “change is on my agenda” when he becomes King.
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Prince William hinted at ‘change’ in an interview with Canadian TV presenter Euguene Levy
This weekend, the finalists for the fifth Earthshot awards are announced, with four weeks to go until the ceremony takes place in Rio.
The prize recognises innovators coming up with solutions to the world’s most pressing environmental problems.
Among this year’s finalists in the running for the five £1m prizes are Matter, a British company whose simple washing machine filters remove the greatest cause of microplastics in our ocean; the world’s first fully ‘upcycled skyscraper’ in Australia, a Chinese company working on mobile phone waste, and the country of Barbados for its environmental focus.
For the first time, the awards will take place in the same country, in the same week as the UN climate change conference COP30.
Image: Prince William is the founder and president of The Earthshot Prize. Pic AP
Addressing whether the positive message of Earthshot will be overshadowed by the inevitable split opinions on tackling the climate crisis that will come out of the conference in Belem, Mr Knauf said: “The news around political disagreement and all of that stuff will be out there, but that’s one of the reasons we created the prize, directly to challenge that pessimism and negativity, to say we need to get on with this work.
“Showing world leaders that big things are happening in their regions and in their countries and in their backyards should remind them that, actually, this isn’t something that’s theoretical.
“The actual solutions that we need really, really do exist”.
Prince William will travel to Brazil on 3 November for engagements in Rio, highlighting environmental issues, as well as attending the awards on 5 November at the iconic Museum of Tomorrow.
In a video posted on his social media, the Prince explains how he continues to do this for his children, saying: “The Earthshot Prize was founded because this decade matters.
“2030 is a threshold by which future generations will judge us; it is the point at which our actions, or lack of them, will have shaped forever the trajectory of our planet.”