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Nearly all the tax cuts announced in the government’s mini-budget are being reversed – here are seven things you need to know about the U-turn.

1. Let’s start with the fact that actually it wasn’t just a U-turn. It was more.

Not only did it reverse the majority of policies in the mini-budget, it went further, reversing a Sunak-era plan to cut the basic rate of income tax.

2. That this happened so quickly, and with more than half an eye towards markets, is symptomatic of a far bigger deal.

Government policy is being dictated not by the Tory party or parliament but by financial markets. I can’t remember another occasion we’ve had that since Black Wednesday in 1992.

3. And markets were able to dictate policy because there is still clear and present danger out there.

As I reported earlier, there is at least one fund, in one asset manager which was close to the brink this morning. A further rise in yields would have tipped it over.

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4. The good news is today’s measures really do seem to have injected some confidence back into markets. Gilt yields are now down markedly.

That, in turn, is pushing down expectations for Bank of England rates, which in turn will likely push down fixed rate mortgages. Quite a relief for everyone.

5. When it comes to calming financial markets, this was comfortably the most successful intervention from the government since Liz Truss became PM. Yet she is nowhere to be seen.

The intervention came from an outsider; striking but consistent with this being a credibility crisis.

6. The most game-changing of all the measures wasn’t even costed today.

Changing the energy price guarantee from a two-year policy to a six-month policy will potentially save tens of billions. Maybe even £100bn plus, but there’s no way of knowing because it depends on future gas prices.

7. Crucially, even though today’s measures went further than most people expected, there is still a sizeable shortfall.

If Jeremy Hunt wants to get the national debt falling, he’ll need to find another £30-40bn of spending cuts and/or tax rises, so there’s more to come.

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Prince Harry denies having ‘physical fight’ with Prince Andrew

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Prince Harry denies having 'physical fight' with Prince Andrew

Prince Harry has denied having a fight with Prince Andrew after it was claimed “punches were thrown” between the pair in 2013.

The allegations appeared in excerpts from a new book on the Duke of York being serialised in the Daily Mail.

It claims a row started after Prince Andrew said something behind Harry’s back, with Andrew “left with a bloody nose” and the pair needing to be broken up.

It also claimed the Duke of York once warned his nephew about marrying Meghan and suggested it wouldn’t last long.

However, a spokesperson for the Duke of Sussex strongly denied the claims.

“I can confirm Prince Harry and Prince Andrew have never had a physical fight, nor did Prince Andrew ever make the comments he is alleged to have made about the Duchess of Sussex to Prince Harry,” a statement said.

They said a legal letter had been sent to the Daily Mail due to “gross inaccuracies, damaging and defamatory remarks” in its reporting.

The book – Entitled: The Rise and Fall of the House of York – is billed as the first joint biography of Prince Andrew and ex-wife Sarah Ferguson.

It’s said to be based on interviews with “over a hundred people who have never spoken before”.

Prince Harry – in his own 2023 book Spare – made his own claims of an altercation with Prince William.

He said his brother once knocked him to the floor amid a confrontation over Meghan’s “rude” and “abrasive” behaviour.

“It all happened so fast. So very fast,” Harry wrote in the book.

“He grabbed me by the collar, ripping my necklace, and he knocked me to the floor. I landed on the dog’s bowl, which cracked under my back, the pieces cutting into me.”

“I lay there for a moment, dazed, then got to my feet and told him to get out,” the prince added.

Harry claimed his brother wanted him to hit him back “but I chose not to”, and that William later returned and apologised.

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The Duke Of Sussex has described his relationship with his family as extremely strained after he quit as a working royal and took legal action against the media, and over the removal of his UK police protection.

He claimed earlier this year the King wouldn’t speak to him and there had “been so many disagreements between myself and some of my family”.

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Search for British woman who disappeared from Greek beach

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Search for British woman who disappeared from Greek beach

A search is under way for a British woman who went missing from a beach in Kavala, northern Greece.

The Hellenic Coastguard said the port authority received reports that Michele Ann Joy Bourda, 59, was missing on the evening of 1 August.

The woman went missing from the Ofrynio beach area.

The coastguard is investigating reports that her belongings were left on the beach.

On Sunday, three recreational craft, five fishing boats and two patrol boats were involved in the search.

According to local media, she lived with her husband, who is reportedly of Greek origin, in the Macedonian city of Serres.

She had gone to the beach with him and reportedly vanished while he was sleeping on a sunbed.

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The charity LifeLine Hellas, which put out an appeal to try and find Ms Bourda, said she went missing at noon on 1 August.

She has been described as having straight blonde hair up to her shoulders and being 1.73m tall.

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Martin Lewis reveals who is due for car finance compensation – and how much they’ll get

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Martin Lewis reveals who is due for car finance compensation - and how much they'll get

Martin Lewis says motorists who were mis-sold car finance are likely to receive “hundreds, not thousands of pounds” – with regulators launching a consultation on a new compensation scheme.

The founder of MoneySavingExpert.com believes it is “very likely” that about 40% of Britons who entered personal contact purchase or hire purchase agreements between 2007 and 2021 will be eligible for payouts.

“Discretionary commission arrangements” saw brokers and dealers charge higher levels of interest so they could receive more commission, without telling consumers.

Pics: PA
Image:
Pics: PA

Speaking to Sky News Radio’s Faye Rowlands, Lewis said: “Very rarely will it be thousands of pounds unless you have more than one car finance deal.

“So up to about a maximum of £950 per car finance deal where you are due compensation.”

Lewis explained that consumers who believe they may have been affected should check whether they had a discretionary commission arrangement by writing to their car finance company.

However, the personal finance guru warned against using a claims firm.

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“They’re hardly going to do anything for you and you might get the money paid to you automatically anyway, in which case you’re giving them 30% for nothing,” he added.

Read more: How to tell if you’ve been mis-sold car finance

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Who’s eligible for payout after car finance scandal?

Yesterday, the Financial Conduct Authority said its review of the past use of motor finance “has shown that many firms were not complying with the law or our disclosure rules that were in force when they sold loans to consumers”.

The FCA’s statement added that those affected “should be appropriately compensated in an orderly, consistent and efficient way”.

Lewis told Sky News that the consultation will launch in October – and will take six weeks.

“We expect payouts to come in 2026, assuming this will happen and it’s very likely to happen,” he said.

“As for exactly how will work, it hasn’t decided yet. Firms will have to contact people, although there is an issue about them having destroyed some of the data for older claims.”

He believes claims will either be paid automatically – or affected consumers will need to opt in and apply to get compensation back.

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What motorists should do next

The FCA says you may be affected if you bought a car under a finance scheme, including hire purchase agreements, before 28 January 2021.

Anyone who has already complained does not need to do anything.

The authority added: “Consumers concerned that they were not told about commission, and who think they may have paid too much for the finance, should complain now”.

Its website advises drivers to complain to their finance provider first.

If you’re unhappy with the response, you can then contact the Financial Ombudsman.

Any compensation scheme will be easy to participate in, without drivers needing to use a claims management company or law firm.

The FCA has warned motorists that doing so could end up costing you 30% of any compensation in fees.

The FCA estimates the cost of any scheme – including compensation and administrative costs – to be no lower than £9bn.

But in a video on X, Lewis said that millions of people are likely to be due a share of up to £18bn.

The regulator’s announcement comes after the Supreme Court ruled on a separate, but similar, case on Friday.

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