Jeremy Hunt has revealed he is reversing “almost all” of the tax cuts announced in his predecessor’s mini-budget and is scaling back support for energy bills.
In an emergency statement, the chancellor said a 1p cut to income tax will be delayed “indefinitely” until the UK’s finances improve instead of being introduced in April 2023 as announced in Kwasi Kwarteng’s mini-budget three weeks ago.
Mr Hunt, who only stepped into the job on Friday, said the government’s energy price guarantee will only be universal until April – not for two years as originally planned.
After April, the scheme will be more targeted following a review into how to support people’s energy bills from that time, he said.
“The government has today decided to make further changes to the mini-budget, and to reduce unhelpful speculation about what they are, we’ve decided to announce these ahead of the medium-term fiscal plan, which happens in two weeks,” Mr Hunt said.
He said the government was reversing “almost all” the tax measures announced in the mini-budget that have not yet started going through parliament.
The Treasury said new tax measures would bring in £32bn after economists estimated the government was facing a £60bn black hole in public finances with the mini-budget announcements.
The changes Mr Hunt revealed include:
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No cuts to dividend tax rates
Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
No new VAT-free shopping scheme for overseas visitors to the UK
No freeze on alcohol duty rates
Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
Energy price guarantee only until April 2023.
‘A new approach’
Mr Hunt promised: “The objective is to design a new approach that will cost the taxpayer significantly less than planned, whilst ensuring enough support for those in need.
“Any support for businesses will be targeted to those most affected, and the new approach will better incentivise energy efficiency.
“The most important objective for our country right now is stability.”
Widely seen as the most powerful person in government now, Mr Hunt added that there will be “more difficult decisions” on tax and spending” and said all government departments “will need to redouble their efforts to find savings, and some areas of spending will need to be cut”.
The mini-budget tax cuts that will not be reversed, as they are already going through parliament, are: reversing the increase in national insurance contributions and the stamp duty cut.
Ms Truss’ spokesman said Monday’s decision was taken jointly by the PM and Mr Hunt over the weekend and again admitted the mini-budget went “too far, too fast”.
But he sidestepped questions about whether Ms Truss would resign after another Tory, Angela Richardson, joined those who started publicly calling for her to go over the weekend.
‘Genuinely shocking’
Sky News’ political editor Beth Rigby said this row back on the mini-budget is a major blow for Liz Truss, just six weeks into her premiership.
“The entire platform of the Truss administration is gone, is gone. It’s done,” she said.
“It’s genuinely shocking in terms of how a prime minister and her cabinet got this so wrong and had to reverse in such a dramatic way.”
“It’s not just the tax decisions in the mini-budget that the new chancellor now says are just not viable.
“He’s now saying that the policy platform, her big shock and awe announcement as it was billed in the run-up to that announcement is also just economic, not viable. And that is another body blow to the prime minister today.”
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7:20
‘We think she should go’ – Labour
‘Still flying blind’
Scottish First Minister Nicola Sturgeon used a news conference about Scottish independence shortly after Mr Hunt’s statement to say the government turmoil is “a self-inflicted crisis for Liz Truss” and “is humiliating in quite an unprecedented way”.
“I think the sooner this prime minister and this entire government departs office, the better that will be for everyone,” she added.
Iran and Egypt have complained after FIFA scheduled a World Cup match between the two nations in Seattle to coincide with the city’s LGBTQ+ Pride festival.
Seattle’s PrideFest 2026, which organisers say regularly sees more than 200,000 participants, takes place on 27 and 28 June – immediately following the match.
Local organisers have said the 26 June game at the Seattle Stadium will include a “once-in-a-lifetime moment to showcase and celebrate LGBTQIA+ communities in Washington”.
Image: Iran players pose for a team group photo before a match against North Korea in June 2025. Pic: Reuters
In Iran, where gay couples can face the death penalty, the president of Iran’s Football Federation, Mehdi Taj, condemned the decision to use Seattle as a venue and the timing of the match.
Mr Taj told Iranian state TV: “Both Egypt and we have objected, because this is an unreasonable and illogical move that essentially signals support for a particular group, and we must definitely address this point.”
He said Iran would bring up the issue at a FIFA Council meeting in Qatar next week.
Image: The Egypt players line up during the national anthems before the match against Jordan. Pic: Reuters
The football federation in Egypt, where Human Rights Watch says people from LGBTQ+ communities face persecution, said in a statement that it had written to FIFA “categorically rejecting any activities related to supporting homosexuality during the match between the Egyptian national team and Iran.”
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The letter also stated: “Information had circulated indicating the local organising committee’s decision and plans to hold some activities related to supporting homosexuality during that match” and the federation “completely rejects such activities, which directly contradict the cultural, religious and social values in the region, especially in Arab and Islamic societies”.
Image: The Seattle Pride festival takes place in late June, attracting hundreds of thousands of people every year, like in 2023. File pic: AP
In Seattle, the local organising committee said it was “moving forward as planned with our community programming outside the stadium during Pride weekend and throughout the tournament,” having already promoted an art contest ahead of the match.
It added: “We get to show the world that in Seattle, everyone is welcome.”
Seattle PrideFest has been organised in the city since 2007 by a nonprofit group which designated the 26 June match for celebration before FIFA carried out the World Cup draw on Friday.
On Saturday, FIFA announced the Egypt-Iran game had been allocated to Seattle instead of Vancouver, where the teams’ group rivals Belgium and New Zealand will play at the same time.
Iceland has announced it is boycotting next year’s Eurovision over Israel’s participation in the competition, saying taking part would “neither be a source of joy nor peace”.
In a statement, RUV said participation of Israeli national broadcaster KAN had “created disunity” among members of the European Broadcasting Union (EBU), which organises Eurovision, and the general public.
Israel‘s place in the contest was confirmed at the EBU’s general assembly last week.
Image: Yuval Raphael represented Israel at this year’s competition in Switzerland. Pic: Reuters/ Denis Balibouse
The past two events have attracted protests and fan boycotts over Israel’s inclusion amid the country’s military action in Gaza. This year, there were also allegations that voting had been manipulated in favour of their contestant.
After growing criticism, members were asked to vote in a secret ballot last week, on whether they were happy with tougher new rules introduced in November, or whether they wanted a second vote on participation for 2026.
The majority agreed the changes were enough, although Sky News understands 11 countries were against accepting these without a further vote.
Dutch broadcaster AVROTROS, Spain’s RTVE, Ireland’s RTE and Slovenia’s RTV immediately issued statements announcing their withdrawal.
Becoming the fifth broadcaster to pull out, RUV made the announcement following a board meeting. It said that while the new rules address many of the concerns it has raised, it believes there are “still doubts” about whether the changes are enough.
Image: Spain, represented by Melody earlier this year, is among the countries boycotting the event. Pic: REUTERS/Denis Balibouse
“RUV has repeadly raised concerns that various Icelandic stakeholders, such as artist associations and the general public, were opposed to participation in the contest,” the statement said. “Furthermore, RUV had requested the EBU to exclude KAN from the contest in accordance to precedents.
“It is a complex matter which has already damaged the contest’s reputation and EBU, emphasising the necessity of a solution for all concerned parties.”
Austria, which will host next year’s show, last week said it was pleased to see Israel allowed to participate. Roland Weissmann, director-general for Austrian broadcaster ORF, said the contest was a “competition for broadcasters, not governments”.
Image: Remember Monday represented the UK in 2025. The BBC has said it supports the EBU vote decision. Pic: MANDOGA MEDIA/picture-alliance/dpa/AP
The BBC, which broadcasts Eurovision in the UK, also said it supported the decision.
Earlier on Wednesday, Poland’s TVP confirmed its participation.
In a statement, the broadcaster said it was aware of the scale of the tension surrounding the competition and understood the emotions and concerns raised.
“However, we believe that Eurovision still has a chance to once again become a space filled with music. And only music,” a TVP statetment said.
Despite some pressure from the cultural union in Belgium for a boycott, broadcaster RTBF also confirmed its participation last week.
But the walk-outs cast a shadow over what is meant to be a celebration of the unifying power of music.
Countries have pulled out or been banned in previous years – most notably Russia in 2022, just days after the invasion of Ukraine – but this is perhap’s Eurovision’s biggest political crisis.
Noa Kirel, who represented Israel in 2023, told Sky News in an interview in October that while the situation now is “very different” to when she took part in May of that year, she believes it should not be about politics and must “focus on the music”.
Wednesday marked the final day for national broadcasters to announce whether they plan to participate next year.
The EBU says a final list of competing nations will be published before Christmas.
At least 22 people are dead and more than a dozen injured after a double building collapse in Morocco.
The disaster in Fez unfolded while one building was hosting an Aqiqah, a traditional Muslim celebration marking the birth of a child.
This building was home to eight families, the local authorities said, while the other was unoccupied.
Image: Pic: Reuters
A survivor, who lost his wife and three children in the overnight collapse, told a local TV station that rescuers had only been able to retrieve one body.
Another survivor, interviewed by SNRT News, Morocco’s national broadcaster, said: “My son who lives upstairs told me the building is coming down.”
She added: “When we went out, we saw the building collapsing.”
Witnesses said the buildings had shown signs of cracking for some time, when interviewed at the scene by SRNT.
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Both buildings, in the Al-Mustaqbal neighbourhood, were four-storeys high.
Announcing an investigation, the Fez prosecutor said 16 people had also been injured, citing preliminary figures.
Some 38,800 buildings across the country are classified as being at risk of collapse, according to Adib Ben Ibrahim, housing secretary of state.
The latest collapse is one of the worst in Morocco since a minaret fell in the historic northern city of Meknes, killing 41 people in 2010.
Image: Pic: Reuters
Fez, a former Moroccan capital, is the country’s third most-populous city, as well as one of its oldest, dating back to the eighth century.
But deteriorating living conditions, and poor public services, sparked a wave of anti-government protests there, and in other cities, two months ago.
The unrest, which was driven by younger Moroccans, revealed deep-seated anger over poverty and public services.
It comes at a time when the government is pushing ahead with ambitious infrastructure projects, including modern stadiums, ahead of the 2030 FIFA World Cup.
Fez, one of the host cities, has some of the country’s poorest neighbourhoods.