Jeremy Hunt has said everyone is going to be paying higher taxes but those who earn the most will have to make larger sacrifices.
The chancellor told the Sophy Ridge on Sunday programme during Thursday’s autumn statement he “will be asking everyone for sacrifices” but recognises there is “only so much we can ask” from people on the lowest incomes.
“That will be reflected in the decisions that I take, that’s important because Britain is a decent country, a fair country, a compassionate country,” Mr Hunt said.
“We’re all going to be paying a bit more tax, I’m afraid.”
Ministers are understood to be considering lowering the threshold at which employees pay the highest 45p rate of income tax from £150,000 to £125,000, the Sunday Telegraph reports.
Nurses across the UK this week voted to go on strike for the first time, likely next month, as they demand a 17% pay rise.
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Mr Hunt, who was health secretary when junior doctors went on strike for the first time in 2015, said he was “very conscious” of nurses’ concerns and understands they are asking for that above-inflation increase because of the impact of inflation on their pay packet.
But he said: “I think we have to recognise a difficult truth that if we gave everyone inflation-proof pay rises, inflation would stay. We wouldn’t bring down inflation.
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“And that’s why, you know, I’m not pretending there aren’t some difficult decisions.
“The way through this is to bring down inflation as quickly as possible, because that is the root cause of your concern, your anger, your frustration, that your pay isn’t going as far as it might.”
Image: Jeremy Hunt told Sophy Ridge on Sunday tax will be increased for everyone
Mr Hunt promised the autumn statement will “not just be bad news” but said he believes the public recognises “if you want to give people confidence about the future you have to be honest about the present”.
He said his plan will be both short and long-term and will bring down inflation, control high energy prices and “get our way back to growing, healthily”.
The chancellor said his plan will help get the UK out of a recession as quickly and with as little pain as possible as he also promised help for energy bills not just this winter, but next.
But he also said spending cuts from government departments will be needed and hinted no more funding will be given to the NHS.
He said the health service’s funding is already going up but the government needs to do “everything we can to find efficiencies” within the NHS.
Mr Hunt, asked if the NHS is on the brink of collapse, admitted doctors and nurses “on the frontline are frankly under unbearable pressure so I do recognise the picture”.
Jeremy Hunt’s gloomy outlook will worry people – including Tory MPs
The government is zig zagging at speed with its economic policy and borrowing to invest one week while cutting our cloth to our means the next.
It’s no surprise that people’s heads are spinning.
That was a very depressing, gloomy interview with Jeremy Hunt in which he emphasised the world has changed so he has to bring in a lot of pain.
I think that will worry people, including Tory MPs.
Liz Truss wanted to borrow too much in order to promote growth and I wonder whether or not the conversation after Thursday is whether or not Rishi Sunak and Jeremy Hunt haven’t done the same thing but in the other direction.
Whether the eye-watering pain they’re going to initiate on Thursday doesn’t go too far. Whether it’s commensurate with the size of the problem that we’ve got.
He added that public services need a strong economy but that applies the other way around as well.
And he said the NHS can help get the UK out of the current economic difficulties, such as helping the growing number of people out of work due to long-term sickness.
Simon Clarke, the former levelling up secretary under Liz Truss, told Sophy Ridge on Sunday he would rather see public spending cuts than tax rises in the fiscal statement.
He said: “I would strongly urge that the great balance of this statement should come from spending reductions because I really do think that there is an issue with our raising the burden of taxation on Britain at this time.”
Mr Clarke added that government spending has risen “substantially” over the past decade so there is “potential” to make savings that “did not damage public services”.
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1:04
Minister hints at windfall tax expansion
Labour’s shadow chancellor Rachel Reeves said the chancellor could still make “fair choices” in the autumn statement that do not place the burden on the public by closing tax loopholes and backdating the windfall tax on energy companies’ profits to January and extending it by two years.
She said the windfall tax extension could raise an additional £50bn.
Ms Reeves also called for a general election as she said Prime Minister Rishi Sunak has “no mandate for the cuts and tax increases” because he was not voted in by the country, but by Conservative MPs.
The Rohingya refugees didn’t escape danger though.
Right now, violence is at its worst levels in the camps since 2017 and Rohingya people face a particularly cruel new threat – they’re being forced back to fight for the same Myanmar military accused of trying to wipe out their people.
Image: A child at the refugee camp in Cox’s Bazar
Militant groups are recruiting Rohingya men in the camps, some at gunpoint, and taking them back to Myanmar to fight for a force that’s losing ground.
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Jaker is just 19.
We’ve changed his name to protect his identity.
He says he was abducted at gunpoint last year by a group of nine men in Cox’s.
They tied his hands with rope he says and took him to the border where he was taken by boat with three other men to fight for the Myanmar military.
“It was heartbreaking,” he told me. “They targeted poor children. The children of wealthy families only avoided it by paying money.”
And he says the impact has been deadly.
“Many of our Rohingya boys, who were taken by force from the camps, were killed in battle.”
Image: Jaker speaks to Sky’s Cordelia Lynch
Image: An aerial view of the refugee camp in Cox’s Bazar
The situation in Cox’s is desperate.
People are disillusioned by poverty, violence and the plight of their own people and the civil war they ran from is getting worse.
In Rakhine, just across the border, there’s been a big shift in dynamics.
The Arakan Army (AA), an ethnic armed group has all but taken control of the state from the ruling military junta.
Both the military and the AA are accused of committing atrocities against Rohingya Muslims.
And whilst some Rohingya claim they’re being forced into the fray – dragged back to Myanmar from Bangladesh, others are willing to go.
US President Donald Trump has told Gazans to hand over Israeli hostages or “you are dead”.
The threat, made over social media, came hours after the White House confirmed that US officials had broken with tradition to hold direct talks with Hamas.
The US has previously avoided direct contact with the group owing to Washington’s longstanding position not to negotiate with terrorists – with Hamas having been designated as a terrorist group in the US since 1997.
In a press conference on Wednesday, White House press secretary Ms Keavitt said there had been “ongoing talks and discussions” between the US officials and Hamas.
Image: File pic: AP
But she would not be drawn on the substance of the talks – taking place in Doha, Qatar – between US officials and Hamas, but said Israel had been consulted.
Ms Leavitt continued: “Dialogue and talking to people around the world to do what’s in the best interest of the American people, is something that the president has proven is what he believes is a good faith, effort to do what’s right for the American people.”
There are “American lives at stake,” she added.
Adam Boehler, Mr Trump’s pick to be special envoy for hostage affairs, participated in the direct talks with Hamas.
A spokesperson for Benjamin Netanyahu’s office said Israel had “expressed to the United States its position regarding direct talks with Hamas”.
Hours later, Mr Trump warned Hamas to hand over Israeli hostages or “it’s over for you” – adding: “This is your last warning”.
Image: Hamas militants on the day of a hostage handover in Gaza in February. Pic: Reuters
On his Truth Social platform, Mr Trump wrote: “Release all of the hostages now, not later, and immediately return all of the dead bodies of the people you murdered or it is over for you.
“Only sick and twisted people keep bodies and you are sick and twisted. I am sending Israel everything it needs to finish the job, not a single Hamas member will be safe if you don’t do as I say.”
Mr Trump met with freed Israeli hostages on Wednesday, something he referenced in his social media post, before adding: “This is your last warning. For the leadership of Hamas, now is the time to leave Gaza, while you still have a chance.
“Also, to the people of Gaza, a beautiful future awaits, but not if you hold hostages. If you do, you are dead. Make a smart decision. Release the hostages now, or there will be hell to pay later.”
Israel estimates about 24 living hostages, including American citizen Edan Alexander, and the bodies of at least 35 others, are still believed to be in Gaza.
Image: Donald Trump with Benjamin Netanyahu in February. Pic: Reuters
The US has a long-held policy of not negotiating with terrorists – which it is breaking with these talks as Hamas has been designated a foreign terrorist organisation by the US government’s National Counterterrorism Center since 1997.
The discussions come as a fragile Israel-Hamas ceasefire continues to hold, but its future is uncertain.
Image: Palestinians amid the rubble in the southern Gaza strip. Pic: Reuters
Mr Trump has signalled he has no intention of pushing the Israeli prime minister away from a return to combat if Hamas does not agree to terms of a new ceasefire proposal – which, Israel says, has been drafted by US Middle East envoy Steve Witkoff.
The new plan would require Hamas to release half its remaining hostages – the group’s main bargaining chip – in exchange for a ceasefire extension and a promise to negotiate a lasting truce.
Donald Trump has admitted his tariffs on major trading partners will cause “a little disturbance” – as China said it was “ready” for “any type of war” with the US.
The US president made his comments in an address to Congress, hours after the levies on imports came into effect.
Producers in Mexico and Canada have been hit with a 25% tax on items they export to the US, while a 20% tariff has been applied to Chinese imports.
Image: Donald Trump and Chinese President Xi Jinping. The US president has admitted his tariffs will cause ‘a little disturbance’ – as China responds. Pic: Reuters/AP
Stock markets, which Mr Trump is said to pay close attention to, slid on the tariffs news.
Exporters in the affected countries as well as businesses in the US and economists have raised concerns about the potential price-raising impact of the tariffs.
Making imports more expensive will likely make goods more expensive and could push prices up across the board.
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Trump’s Congress speech unwrapped
Concern over threat to interest rates
A cycle of high inflation could lead to interest rates being higher for longer in the US, the world’s largest economy, which could dampen economic activity.
A slowed US economy would have global consequences but even without a hit to the States, there are fears of a global trade war – in which countries add their own trade barriers in the form of tariffs.
The Chinese embassy in the US posted on X: “If war is what the US wants, be it a tariff war, a trade war or any other type of war, we’re ready to fight till the end.”
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Speaking to Sky News presenter Yalda Hakim the US former deputy national security advisor Matt Pottinger said Chinese president Xi Jinping was turning the Chinese economy “into a wartime economy”
“He’s preparing his economy for war so that it can withstand the shocks of war,” he said on The World with Richard Engel and Yalda Hakim podcast
“That means he’s willing to undergo massive inefficiencies in the economy. He’s willing to stockpile food that otherwise would flow easily and more cheaply in from foreign vessels.”
“He’s stockpiling copper and all kinds of inputs into the economy. He is making sure that the private sector is wholly aligned with his broad goals, which are about increasing the Chinese Communist Party’s control over the economy and creating a bigger, better defence industrial base,” Mr Pottinger said.
“He’s preparing for war.”
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Canada’s prime minister Justin Trudeau said his country was launching its own WTO challenge and described the US tariffs as a “dumb thing to do”.
He also warned the move by the Trump administration would impact American workplaces and add to inflation in the US.
Addressing the American public, he said: “We don’t want this… but your government has chosen to do this to you.”
Canada has announced the imposition of 25% tariffs on US imports worth C$30bn (£16.3bn).
But US commerce secretary Howard Lutnick struck a different note on tariffs and on Monday said the president will “probably” announce a compromise with Canada and Mexico as early as Wednesday.