Jeremy Hunt: There were mistakes in mini-budget – and some taxes will go up

Published

3 years ago

October 17, 2022

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The new chancellor Jeremy Hunt has said there “were mistakes” in Liz Truss and Kwasi Kwarteng’s mini-budget.

Speaking to Sky News on Saturday, Mr Hunt said: “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.”

Hunt warns of ‘difficult decisions’ – follow politics latest

He added that it was 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.”

The comments signal a plan to up-end the prime minister’s entire economic strategy, in an extraordinary rebuke of the pledges that brought her into office.

Mr Hunt was appointed chancellor on Friday, an hour after his predecessor Kwasi Kwarteng was sacked after just 38 days in the job.

While his appointment was welcomed by some Tory MPs 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.

At a hastily-arranged news conference in Downing Street on Friday, the prime minister dismissed calls for her resignation, saying she was “absolutely determined to see through what I have promised”.

But announcing another U-turn, she said: “It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission right now has to change.”

Mr Kwarteng’s plans to drop the planned rise in corporation tax from 19% to 25%, were therefore being scrapped, she announced, saving the Exchequer £18bn a year.

Is Jeremy Hunt now more powerful than the PM?

Rob Powell

Political correspondent

@robpowellnews

Jeremy Hunt has confirmed that Prime Minister Liz Truss’s economic vision is not only dead, but that the immediate actions of this administration will be to do almost exactly the opposite of what the prime minister promised during the summer leadership campaign.

This was a cold, hard reality check from a chancellor who is being upfront about the fact that his primary purpose is to put out the fires started by the government he’s just joined and restore some semblance of credibility to the UK economy.

Some taxes will rise, some will be cut more slowly than expected, and public spending will be trimmed with every department asked to find savings.

Does this mean pushing back the 2023 cut to the basic rate of income tax? Can the Ministry of Defence still expect its funding increase? Is there any chance of public sector pay rises reaching anywhere near inflation?

Politically, there is an argument to be made that Jeremy Hunt is now more powerful than the prime minister.

‘The last few weeks have been very tough’

Asked why he agreed to take on the difficult job of sorting out the public finances, the new chancellor said he wants to “do the right thing by the British people”.

But he added: “I want to be honest with people, we have some very difficult decisions ahead.

“The last few weeks have been very tough, but the context of that is coming out of a pandemic and a cost-of-living crisis.

“No chancellor can control the markets, but what I can do is show that we can pay for our tax and spending plans and that is going to need some very difficult decisions.”

He said that all government departments would have to “find more efficiencies than they were planning to find”.

However, he declined to give any specific commitments ahead of the fiscal statement on October 31.

Asked if the NHS will still get the money that was promised in the health and social care levy, he said “the government’s already made that commitment”.

He added: “I’m not going to make any specific commitments about specific departments now, or indeed on the tax side about specific taxes because we have to look at these things in the round. And we have to make sure as we take these very difficult decisions, we’re honest with people about the situation we face.”

‘This is a disaster’

David Lammy, the shadow foreign secretary, questioned how cuts can be made given the pressure public services are under.

He said the market turmoil seen in recent weeks is a “crisis made in Number 10” and called for a general election.

He said: “As you listen to Jeremy Hunt what you hear is despite long queues in the NHS, it’s now set to get worse, despite rising class sizes in Britain we can expect our education to get worse, and with crime soaring across many communities in the country, we need police officers.

“Are they are now going to back-pedal on those undertakings that they’ve previously made?

“This is a disaster and the only way to deal with a disaster is a general election and to set our country on a certain path for the next five years.”

He claimed Ms Truss had “no mandate” for her policies.

“We cannot live in an oligarchy effectively where the Conservatives choose who leads them and as a consequence gives us a prime minister with no mandate at all to make, now, the swingeing cuts that we’re about to see.”

Mr Hunt’s comments may only add to the sense among some Tory MPs that Ms Truss is increasingly powerless in Downing Street.

Will Walden, Boris Johnson’s director of communications when he was mayor of London, called Mr Hunt an effective “caretaker prime minister”, while former Conservative leader Lord Hague warned Ms Truss’s premiership “hangs by a thread”.

Heated messages shared in Conservative Party WhatsApp groups after Ms Truss’s hastily-arranged Downing Street press conference show the party is divided about the next steps, with some MPs calling for the PM to be replaced by Rishi Sunak or Penny Mordaunt.

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World

‘The capital is under attack’: Russian drones launched over Kyiv after Moscow targeted

Published

15 hours ago

May 25, 2025

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'The capital is under attack': Russian drones launched over Kyiv after Moscow targeted

Russia has launched a “massive” drone and missile attack on the Ukrainian capital overnight, after Moscow itself was targeted.

Amid flailing peace talks, the Kremlin’s nightly attacks on Ukraine continued.

Ukraine war – follow the latest updates

A large-scale Russian attack through the night into Sunday injured at least 11 in Kyiv and killed three people in towns surrounding the capital.

There were attacks elsewhere as well, including drone strikes in Mykolaiv, where a residential building was hit.

‘Massive’ attack

In Kyiv, the city’s administration warned “the night will be difficult”, as people were urged to remain in shelters.

The city’s mayor Vitaliy Klitschko described it as a “massive” attack.

He said: “Explosions in the city. Air defence forces are working. The capital is under attack by enemy UAVs. Do not neglect your safety! Stay in shelters!”

It came after at least 15 people were injured in attacks the night prior.

Russia claimed it also faced a Ukrainian drone attack on Sunday, and that it intercepted and destroyed around 100 of them near Moscow and across Russia’s central and southern regions.

Russia ‘dragging out the war’

Meanwhile, Russia and Ukraine continued a prisoner exchange, marking a rare moment of cooperation in the war.

Amid the most recent attacks, Ukrainian President Volodymyr Zelenskyy repeated his calls for sanctions on Russia.

Russia “fills each day with horror and murder” and is “simply dragging out the war”, he said.

“All of this demands a response – a strong response from the United States, from Europe, and from everyone in the world who wants this war to end,” Mr Zelenskyy added.

Every day “gives new grounds for sanctions against Russia”, he said, and each day without pressure proves the “war will continue”.

Ukraine, meanwhile, is ready for “any form of diplomacy that delivers real results”.

World

Nine of Gazan doctor’s 10 children killed in Israeli strike on Khan Younis

Published

1 day ago

May 24, 2025

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Nine of Gazan doctor's 10 children killed in Israeli strike on Khan Younis

Nine of a doctor’s 10 children have been killed in an Israeli missile strike on their home in Gaza, which also left her surviving son badly injured and her husband in a critical condition.

Warning: This article contains details of child deaths

Alaa Al Najjar, a paediatrician at Al Tahrir Clinic in the Nasser Medical Complex, was at work during the attack on her home, south of the city of Khan Younis in southern Gaza, on Friday.

Graphic footage shared by the Hamas-run Palestinian Civil Defence shows the bodies of at least seven small children being pulled from the rubble.

Rescuers can be seen battling fires and searching through a collapsed building, shouting out when they locate a body, before bringing the children out one by one and wrapping their remains in body bags.

In the footage, Dr Al Najjar’s husband, Hamdi Al Najjar, who is also a doctor, is put on to a stretcher and then carried to an ambulance.

The oldest of their children was only 12 years old, according to Dr Muneer Alboursh, the director general of Gaza’s health ministry, which is run by Hamas.

“This is the reality our medical staff in Gaza endure. Words fall short in describing the pain,” he wrote in a social media post.

“In Gaza, it is not only healthcare workers who are targeted – Israel’s aggression goes further, wiping out entire families.”

British doctors describe ‘horrific’ and ‘unimaginable’ attack

Two British doctors working at Nasser Hospital described the attack as “horrific” and “unimaginable” for Dr Al Najjar.

Speaking in a video diary on Friday night, Dr Graeme Groom said his last patient of the day was Dr Al Najjar’s 11-year-old son, who was badly injured and “seemed much younger as we lifted him on to the operating table”.

The strike “may or may not have been aimed at his father”, Dr Groom said, adding that the man had been left “very badly injured”.

Dr Victoria Rose said the family “lived opposite a petrol station, so I don’t know whether the bomb set off some massive fire”.

‘No political or military connections’

Dr Groom added: “It is unimaginable for that poor woman, both of them are doctors here.

“The father was a physician at Nasser Hospital. He had no political and no military connections. He doesn’t seem to be prominent on social media, and yet his poor wife is the only uninjured one, who has the prospect of losing her husband.”

He said it was “a particularly sad day”, while Dr Rose added: “That is life in Gaza. That is the way it goes in Gaza.”

Sky News has approached the Israeli Defence Forces for comment.

Israel’s war against Hamas in Gaza began when the militant group stormed across the border into Israel on 7 October 2023, killing some 1,200 people, most of them civilians, and abducting 251 others.

Israel’s military response has flattened large areas of Gaza and killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry, which does not differentiate between civilians and combatants in its count.

World

UN’s Antonio Guterres condemns ‘teaspoon’ of aid allowed into Gaza after dozens die in airstrikes

Published

2 days ago

May 24, 2025

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UN's Antonio Guterres condemns 'teaspoon' of aid allowed into Gaza after dozens die in airstrikes

The head of the UN has said Israel has only authorised for Gaza what amounts to a “teaspoon” of aid after at least 60 people died in overnight airstrikes.

UN secretary general Antonio Guterres said on Friday the supplies approved so far “amounts to a teaspoon of aid when a flood of assistance is required,” adding “the needs are massive and the obstacles are staggering”.

He warned that more people will die unless there is “rapid, reliable, safe and sustained aid access”.

Israel says around 300 aid trucks have been allowed through since it lifted an 11-week blockade on Monday, but according to Mr Guterres, only about a third have been transported to warehouses within Gaza due to insecurity.

The IDF said 107 vehicles carrying flour, food, medical equipment and drugs were allowed through on Thursday.

Many of Gaza’s two million residents are at high risk of famine, experts have warned.

Meanwhile, at least 60 people have been killed by Israeli airstrikes across Gaza overnight.

Ten people died in the southern city of Khan Younis, and deaths were also reported in the central town of Deir al-Balah and the Jabaliya refugee camp in the north, according to the Nasser, Al-Aqsa and Al-Ahli hospitals where the bodies were brought.

The latest strikes came a day after two Israeli embassy workers were killed in Washington.

The suspect, named as 31-year-old Elias Rodriguez from Chicago, Illinois, told police he “did it for Gaza”.

Israeli Prime Minister Benjamin Netanyahu accused Sir Keir Starmer, Emmanuel Macron and Mark Carney of fuelling antisemitism following the shootings.

The leaders of the UK, France and Canada are “on the wrong side of humanity and (…) history”, he said, after they threatened “concrete action” against Israel this week if it continues its “egregious” military operations in Gaza.

Mr Netanyahu also accused Sir Keir, Mr Macron and Mr Carney of siding with “mass murderers, rapists, baby killers and kidnappers”.

But UK government minister Luke Pollard told Sky News on Friday morning he “doesn’t recognise” Mr Netanyahu’s accusation.

Earlier this week, Mr Netanyahu said he was recalling negotiators from the Qatari capital, Doha, after a week of ceasefire talks failed to bring results. A working team will remain.

The war in Gaza began when Hamas-led militants attacked southern Israel on 7 October 2023, killing some 1,200 people, mostly civilians, and kidnapping 251 others.

The militants are still holding 58 captives, around a third of whom are believed to be alive, after most of the rest were returned in ceasefire agreements or other deals.

Israel’s offensive, which has destroyed large swaths of Gaza, has killed more than 53,000 Palestinians, mostly women and children, according to Gaza’s Hamas-run health ministry.