Jeremy Hunt: There were mistakes in mini-budget – and some taxes will go up
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?
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.
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Jeremy Hunt is arguably now more powerful than prime minister Liz Truss
“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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Prince Harry has made a surprise visit to the Ukrainian capital of Kyiv, a spokesperson for the royal has said.
Harry, who served 10 years in the British Army, visited the city at the invitation of the Ukrainian government.
The Duke of Sussex travelled to the capital to help with the recovery of military personnel seriously injured in the three-year war with Russia.
Pic: Railway of Ukraine Ukrzaliznytsia/AP
Foreign Secretary Yvette Cooper will also be travelling to Kyiv on Friday in what will be her first foreign trip since being appointed to the job last week.
Her visit coincides with the UK launching a new package of Russia-related sanctions targeting ships carrying Russian oil as well as companies and individuals supplying electronics, chemicals and explosives used to make Russian weapons.
It comes as Russia and Belarus began a major joint military exercise on on NATO’s doorstep on Friday, just two days after Poland, with support from its NATO allies, shot down suspected Russian drones over its airspace.
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Drones shot down in Poland
The Zapad-2025 exercise – a show of force by Russia and its close ally – will involve drills in both countries and in the Baltic and Barents seas, the Russian defence ministry said.
Meanwhile on the frontline, Russian defence systems intercepted and destroyed 221 Ukrainian drones overnight,
including nine over the Moscow region, the ministry said on Friday.
The duke told the Guardian while on an overnight train to Kyiv: “We cannot stop the war but what we can do is do everything we can to help the recovery process.
“We can continue to humanise the people involved in this war and what they are going through.
“We have to keep it in the forefront of people’s minds. I hope this trip will help to bring it home to people because it’s easy to become desensitised to what has been going on.”
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Harry, who served two tours in Afghanistan, previously travelled to Ukraine in April, when he visited war victims as part of his work with wounded veterans.
The prince visited the Superhumans Center, an orthopaedic clinic in Lviv that treats and rehabilitates wounded military personnel and civilians.
Earlier this week, Harry said the King is “great” after he reunited with him at Clarence House for a private tea.
It was their first meeting in 19 months and lasted just 54 minutes.
The last time the father and son saw each other was in February 2024 when the prince flew to the UK after the monarch announced his cancer diagnosis.
Harry and his wife Meghan Markle have lived in California since they quit roles as senior working royals in March 2020.
Brazil’s former president Jair Bolsonaro has been sentenced to 27 years and three months in prison for attempting a coup to stay in power after his 2022 election defeat.
The far-right politician, who ruled Brazil between 2019 and 2022, is currently under house arrest in the capital, Brasilia.
A panel of five Supreme Court justices handed down the sentence several hours after they found the 70-year-old guilty on five counts.
The counts were trying to stage a coup, being part of an armed criminal organisation, attempting violent abolition of the democratic rule of law, being implicated in violence, and posing a serious threat to the state’s assets and listed heritage.
Bolsonaro‘s lawyers have said they will appeal the verdict.
Pic: AP
The ruling will deepen political divisions in Brazil and is also likely to prompt a backlash from the United States government – with Donald Trump already sharing his thoughts on the vote.
President Trump, an ally of Bolsonaro, has said he was surprised and “very unhappy” with the decision.
Speaking to reporters outside the White House, he said he always found Bolsonaro “outstanding” and said the conviction is “very bad for Brazil”.
Mr Trump previously called the case a “witch hunt”, slapped Brazil with tariff hikes, and revoked US visas for most members of Brazil’s high court.
Bolsonaro is the first former Brazilian president to be convicted of attempting a coup.
He has not attended the court proceedings, and on Thursday, he was seen at the garage of his property, but did not talk to the media.
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Justice Carmen Lucia. Pic: AP
Justice Alexandre de Moraes, who has been overseeing the case, said on Tuesday that Bolsonaro was the leader of a coup plot and of a criminal organisation, and voted in favour of convicting him. Justices Flavio Dino, Carmen Lucia, and Cristiano Zanin sided with Justice Moraes in the trial.
On Wednesday, another justice, Luiz Fux, disagreed and voted to acquit the ex-president of all charges.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Justice Lucia said she was convinced by the evidence the attorney general’s office put forward against Bolsonaro, saying: “He is the instigator, the leader of an organisation that orchestrated every possible move to maintain or seize power.”
Bolsonaro had been previously banned from running for office until 2030 in a different case.
He is expected to choose an heir who is likely to challenge President Luiz Inacio Lula da Silva next year.
The FBI and officials have released new video and images of a “person of interest” in connection with the shooting of conservative activist Charlie Kirk, as the manhunt continues.
At a news conference on Friday, Utah Governor Spencer Cox showed video footage showing the suspect walking on the roof of the building from where the fatal shot was fired. He is then seen climbing down and heading toward a wooded area, where police say he abandoned his rifle.
Additional images released by police show the suspect wearing a hat, sunglasses, and a backpack.
Investigators have conducted nearly 200 interviews related to the case as 20 law enforcement partners are working on the investigation, Governor Cox said.
Prosecutors will seek the death penalty against the attacker, he said.
Follow the latest updates on Charlie Kirk’s killing
Authorities have released additional images of the attacker. Pic: Utah Public Safety
Earlier, authorities said the shooter was thought to have jumped off a roof and fled into a neighbourhood after firing one shot.
They also said the suspect was a male who “appears to be of college age” and blended in on the Utah Valley University campus in Orem, where Mr Kirk was killed.
Mr Kirk, a 31-year-old right-wing influencer, was fatally shot in the neck on Wednesday afternoon while speaking to university students at an event. He died in hospital after being shot.
Charlie Kirk hands out hats before speaking at Utah Valley University where he was later fatally shot. Pic: AP
The rifle suspected of being used in the shooting has been found.
In a briefing on Thursday, FBI agent Robert Bohls said: “I can tell you that we have recovered what we believe is the weapon that was used in yesterday’s shooting… is a high-powered bolt action rifle.
“That rifle was recovered in a wooded area where the shooter had fled. The FBI laboratory will be analysing this weapon.”
Investigators have collected a footwear impression, a palm print, and forearm imprints for analysis.
Authorities have released additional images of the attacker. Pic: Utah Public Safety
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Who was Charlie Kirk?
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The father-of-two was the chief executive and co-founder of Turning Point USA, a prominent organisation that engages conservative youth on school campuses.
He had millions of followers across social media.
Mr Kirk and Turning Point USA played a key role in driving youth support for Mr Trump in last November’s presidential election. His events at college campuses nationwide typically drew large crowds.
Many people listened both in person and online to Mr Kirk, as he advocated for conservatism among younger generations and became a leading voice in the Make America Great Again (MAGA) movement.
President Donald Trump paid tribute to Mr Kirk while on stage at a 9/11 memorial event in Virginia, saying he would be awarding him the Presidential Medal of Freedom.
Authorities have released additional images of the attacker. Pic: Utah Public Safety
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“Before we begin, let me express the horror and grief so many Americans at the heinous assassination of Charlie Kirk have felt,” Mr Trump said.
“Charlie was a giant of his generation, a champion of liberty and an inspiration to millions and millions of people. Our prayers are with his wonderful wife, Erika, and his beautiful children.”
He later added the FBI was making “big progress” in finding the shooter and he has “an indication” of the motive, but declined to expand.
“He’s an animal, total animal, hopefully they’ll have him and they’ll get him.”
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