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Rishi Sunak has refused to apologise for the economic turmoil Liz Truss’s short-lived government caused in the UK.

The prime minister, who is in Bali for the G20 summit, refused six times today to say sorry for the decisions his predecessor made, which caused severe and continuing financial turbulence.

He acknowledged that “mistakes were made” by Ms Truss and her chancellor Kwasi Kwarteng, whose unfunded £45bn tax cuts sent mortgage rates soaring, and created a run on sterling and a gilt market freefall.

Raab bullying claims an ‘open secret’ – politics latest

However, every time he was asked by Sky News’ political editor Beth Rigby to apologise, he repeated that errors were made and said: “What I want to do now is fix them.”

He admitted there are “difficult decisions” to be made to get the economy back on track, but he is “prepared to do difficult things”.

Mr Sunak added: “I spent the summer talking about the challenges that our country faces, talking about what I thought was required to grapple with those and fix them to build a foundation which we could provide jobs and growth and prosperity for people over time.

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“So I think that people know where I stand on all of these issues. And now that I’m prime minister, I’m going to make sure that we deliver on that.”

Although Mr Sunak spoke out against Ms Truss’s plans for the economy during the summer’s leadership campaign, he said he would not vote against her mini-budget.

He said since he took over the reins, there is now “much more stability in the UK’s financial position in terms of what the UK is paying to borrow money and what’s happened to the pound”.

Canada's Prime Minister Justin Trudeau and Prime Minister Rishi Sunak meet at the Art Cafe Bumbu Bali in Nusa Dua as they attend the G20 in Bali, Indonesia
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Rishi Sunak had a meeting with Candian PM Justin Trudeau in a cafe in Bali

Mini-budget cost UK £30bn

Analysis released on Monday by the independent Resolution Foundation think tank found Ms Truss’s mini-budget cost the UK £30bn, doubling the sum the Treasury says will have to be raised by Jeremy Hunt, the chancellor.

Mr Hunt will seek to tackle that £60m “black hole” in the autumn statement on Thursday.

The chancellor told Sky News over the weekend there will be tax rises for everybody, although the most wealthy will have to contribute more, and he will announce a rise in the national living wage.

Mr Sunak said the government has a plan “to limit the increase in mortgage rates that will bring inflation down”.

“I think that people can be reassured that we will put a plan together that will do that, and that is what you will see on Thursday,” he added.

“I think the chancellor has been very clear about the challenges we face. It’s right that we’re upfront and honest with the country about the scale of the challenge we face.

“But what we’ve also said is that the way we go about that will have fairness and compassion at the heart of those decisions.”

Read more:
Sunak says Russia must ‘end barbaric war’

Hunt says everyone will have to pay higher taxes – but richest will make larger sacrifices

Rishi Sunak appeared to give Sergei Lavrov a stern stare as the Russian spoke at the G20. Pic: No 10
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Rishi Sunak appeared to give Sergei Lavrov a stern stare as the Russian spoke at the G20. Pic: No 10

Mr Sunak is on his second major international visit as PM, after the COP27 climate change talks in Egypt last week.

He said he is “hopeful” he will have a meeting with Xi Jinping, the Chinese president, and said his country poses a “systemic challenge” to the UK’s values and interests.

On Tuesday morning, Ukrainian president Volodymyr Zelenskyy spoke over a videolink to the leaders of the 20 biggest economies, including Russian Foreign Minister Sergei Lavrov who is there on behalf of Vladimir Putin.

Mr Zelenskyy, who previously called the summit the G19 as he missed out Russia, told the group now is the time to stop the war in Ukraine.

There is doubt over whether a joint communique over the Ukraine war will be produced at the end of the summit as it would have to be approved by Russia.

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Trump 2.0, conflict in Ukraine to end and China challenging global world order – what can we expect in 2025?

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Trump 2.0, conflict in Ukraine to end and China challenging global world order - what can we expect in 2025?

What will 2025 mean for Gaza, Ukraine, trade wars and African tech? Our foreign correspondents set the scene for trends that will shape their region.

From elections in the EU to a bombastic Trump presidency to climate disruption, 2025 is shaping up to be a bumpy year.

But it’s not all bad news…

Immediate, dramatic change promised for the United States
by Mark Stone, US correspondent

Never mind the coming year, the coming month could be extremely consequential.

Donald Trump will become America’s 47th president on 20 January – Inauguration Day – and he has pledged immediate, dramatic change.

A year ago, I had lunch with a senior Trump adviser. We pondered a Trump victory.

The adviser projected that a victorious Mr Trump would sign numerous presidential “executive orders” on Inauguration Day.

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With a sweep of the presidential pen on a pile of papers on the balcony of the Capitol building literally moments after he takes the oath of office, Mr Trump would, the adviser predicted, undo as much of Biden’s legacy as possible and set the direction of America for the four years ahead.

Whether he signs orders at that moment or in the days after, Mr Trump has said he will “make heads spin”.

Republican Presidential nominee former President Donald Trump holds hands with former first lady Melania Trump after speaking to supporters at the Palm Beach County Convention Center during an election night watch party, Wednesday, Nov. 6, 2024, in West Palm Beach, Fla. (AP Photo/Lynne Sladky)
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Donald Trump has his eye on fresh tariffs and radical immigration policies. Pic: AP

Even before inauguration, Congress will confirm or reject Mr Trump’s administration picks. We’ll discover if controversial choices like Pete Hegseth for defense secretary or Kash Patel to head the FBI make the cut.

Domestically, prepare for radical new immigration policies. The mass deportations he has promised will be subject to legal battles but expect Team Trump to fight hard.

There’ll be mass pardons for those involved in the Jan 6th protests / insurrection / riots – divided Americans choose their descriptor dependent on their politics, and he’ll probably go after those who tried to take him down.

Then, the international ramifications of Trump 2.0: Ukraine, the Middle East, the climate agenda, trade tariffs.

On climate – the expectation is that Trump will (again) withdraw the US from the Paris climate commitments, thus rendering America no longer beholden to carbon emissions reductions targets.

On Ukraine, he has said he could bring peace in 24 hours. We will, finally, see what that looks like and the extent to which it benefits one side or the other.

On the Middle East, Mr Trump has said there will be “all hell to pay” if the hostages are not released from Gaza by the time he takes office. How does that threat play out? No one knows.

There’s a chance that the combination of traits which define Donald Trump – unpredictable, transactional, threatening, spontaneous – will produce outcomes that look attractive at least in the short term; deals that Biden couldn’t get or wouldn’t take.

Brace for a month and a year of huge consequence.

Europe: Big beast elections, while some cosy up to Trump / political turmoil and turnover
by Adam Parsons, Europe correspondent

The year will start with both France and Germany, Europe’s two biggest beasts, facing political uncertainty.

The focus will first be on Berlin – Friedrich Merz is likely to end up as Germany’s chancellor, moving his country more to the right.

He, like a growing number of European politicians, will say his priority is controlling migration. The far-right AfD could well ride that same wave to come second.

France’s parliamentary gridlock means the country’s politicians will stumble on in a constant foul mood. Another election looks certain.

Edouard Philippe, who served as French prime minister under Macron, will start positioning himself to replace Emmanuel Macron as president.

Look out for Giorgia Meloni to grow from “just” being Italy’s leader to becoming Europe’s conduit with Donald Trump. Another person on the up is Kaja Kallas, the former Estonian PM who is now head of foreign affairs for the EU.

Italian Prime Minister Giorgia Meloni, attends during a bilateral meeting with Brazil's President Luiz Inacio Lula da Silva, a day before the opening of the G20 Summit, in Rio de Janeiro, Sunday, Nov. 17, 2024. Pic: AP
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Italian leader Giorgia Meloni may be further on the up. Pic: AP

Tensions between Serbia and Kosovo will remain high, and look out for flashpoints in Moldova and Nagorno-Karabakh. Hungary will cause more diplomatic mischief.

Bulgaria will adopt the Euro, Romania will finally elect a president. Oh, and journeys between the UK and the EU will become clunkier as the new ETIAS travel permit scheme is launched.

The Middle East: anything but predictable
by Alistair Bunkall, Middle East correspondent

If the extraordinary events of 2024 taught or reminded us of anything, it was that the Middle East is anything but predictable.

2025 is likely to be a year of consolidation for Israeli PM Benyamin Netanyahu and Israel after the military gains of the past twelve months and unexpected downfall of Bashar al Assad over the border in Syria.

But the hostage situation remains an unresolved and deeply painful situation for Israelis, and time is running out if Donald Trump’s reported demand for a Gaza ceasefire is to be realised before his inauguration on 20 January.

Despite recent optimism around negotiations, differences remain between Hamas and Israel. But a ceasefire remains likely and the best way to release the 100 hostages that remain in captivity.

Any truce will probably be temporary, however, and there is every indication Israeli forces will remain in Gaza for the foreseeable with calls for a permanent occupation growing amongst far-right Israeli politicians.

There is little hope of imminent respite for the Gazan people with no “day-after” plan proposed. And unless the humanitarian situation in Gaza improves dramatically and rapidly, Israel’s international reputation will continue to suffer as the International Court of Justice considers accusations of genocide.

The recent escalation in attacks by the Iranian-backed Houthis in Yemen have caused little material damage to Israel but have created new uncertainty on another front.

Netanyahu is surely tempted to strike a weakened Iran, both to deter the Houthis and degrade the country’s nuclear programme, but might be dissuaded if he doesn’t get support from the incoming US president.

That temptation might become too great however if Tehran attempts to accelerate its nuclear programme as a way of making up for the loss of its ally Assad in Syria and the degradation of Hezbollah in Lebanon.

The elderly Iranian Supreme Leader’s health and authority has been the source of much speculation in recent months so that will be something to keep a close eye on.

Syria’s new leaders will need to stabilise the country and bring together the various religious and militant factions otherwise the euphoric optimism seen after Assad’s overthrowing risks a new civil war.

And finally, both Trump and Netanyahu have expressed their hopes for a Saudi-Israel normalisation deal and it would certainly be a huge boon to the latter as he eyes re-election in 2026.

But as long as the war in Gaza continues, Riyadh is unlikely to gift Bibi that historic agreement, certainly not without considerable concessions for the Palestinian people, which Netanyahu is unlikely to concede.

Trump will challenge China and China will challenge global world order
by Nicole Johnston, Asia correspondent in Beijing

The momentum in China-US competition could really pick up the pace next year if Donald Trump puts his trade threats into action.

Before Americans went to the polls, Trump threatened to impose a 60% tariff on all Chinese goods, which could spark a global trade war and economic meltdown.

Since the election, he has said he’s planning an extra 10% on top of existing tariffs on Chinese products.

Beijing is bracing for trouble and is already engaged in retaliatory trade action with the US. Watch this issue heat up next year.

An employee works at a semiconductor manufacturer of automobile chips in Binzhou city in east China's Shandong province Wednesday, Dec. 25, 2024. U.S. has announced to raise the tariff on Chinese chips from 25% to 50% next year. Pic: FeatureChina via AP
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The US is expected to increase tariffs on Chinese chips next year as competition heats up. Pic: FeatureChina via AP

Diplomatically, while there are efforts to turn the fraught UK-China relationship around, it’s likely spying allegations and accusations of Chinese political interference – which Beijing vehemently denies – will continue to test both countries.

UK Foreign Secretary David Lammy visited Beijing in 2024 and Chancellor Rachael Reeves is expected to come in January.

In Asia and around the world, the growing power of China remains a major issue. Its influence is reaching deep into “Global South” countries. Many are open to Chinese overtures for trade, tech and diplomatic support.

In the middle of this great global reshaping, China, Russia, North Korea and Iran are challenging the US-led “rules-based” global order.

Keep an eye on how these countries help each other, diplomatically, militarily and economically.

They may have little in common. But they all have a desire to see an alternative to the hegemony of the West.

Fighting in Ukraine will finally cease next year
by Ivor Bennett, Moscow correspondent

I predict the war in Ukraine will end in 2025. Or perhaps more accurately: the fighting will stop and the conflict will be frozen.

Both sides have recently indicated a willingness to make concessions in order to achieve a peace agreement.

Ukrainian President Volodymyr Zelenskyy told Sky News he’d be willing to cede territory, while Vladimir Putin said Russia was ready to compromise.

It’s a dramatic shift in tone, brought about by the election of Donald Trump. Talks and a deal feel inevitable.

Whatever the outcome, Russia will present it as a win.

A firefighter works at the site of residential buildings hit by a Russian drone strike in Kharkiv.
Pic: Reuters
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Pic: Reuters

I think the Kremlin will hope to conclude negotiations before 9 May, which marks the 80th anniversary of the Soviet Union’s victory over Nazi Germany. The aim will be for a double celebration.

But the problems won’t end there for Vladimir Putin. With surging inflation, a sliding rouble and weak productivity, the economy will be the next battle.

In Africa, more protests, more climate disasters and more tech
by Yousra Elbagir, Africa correspondent

The year is ending with building protest movements in Mozambique, Angola and Kenya. Crackdowns on anti-government demonstrators have led to deaths that are fuelling further dissent.

The El Nino weather phenomenon drove drought to new levels in southern Africa this year and propelled a cyclone season that started early with the deadly Chido in Mayotte.

Although El Nino dissipated in the summer, many countries will continue to suffer its impacts next year due, including in the form of severe food shortages.

Africa already bears the brunt of climate change, and with the planet getting hotter still, cruelly more extreme weather is on the way to batter homes, health and livelihoods.

A barricade burns Tuesday, Nov. 5, 2024 in Mozambique's capital, Maputo, Tuesday, Nov. 5, 2024 in protests that have engulfed the country after the opposition rejected the results of the country's polls which saw the Frelimo party extend its 58-year rule. (AP Photo/Carlos Uqueio)

Not all news is negative, though.

Tech innovation in Africa is expected to continue as young people find ways to survive and thrive in tough job markets and rising costs of living.

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Riverdance turns 30 with a cast of dancers younger than the show

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Riverdance turns 30 with a cast of dancers younger than the show

Riverdance is marking 30 years with a new generation of dancers who were not born when the show made its debut.

The interval act from the 1994 Eurovision Song Contest became a global phenomenon and continues to inspire Irish dancers worldwide.

The Riverdance opening night in February 1995. Pic: Riverdance
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The Riverdance opening night in February 1995. Pic: Riverdance

Lead dancers, Anna Mai and Fergus Fitzpatrick, are siblings from County Meath who grew up dreaming of touring with Riverdance.

Fergus said: “It’s a dream come true to be able to be a lead dancer in Riverdance.

“It’s even more special to be able to have family on the road with you.

“Travelling, getting to do what you love and to see these amazing places, while taking care of the iconic show that is Riverdance.”

They are deeply conscious of the show’s legacy and take pride in following in the footsteps of Irish dancing giants.

Anna Mai said: “We absolutely feel the responsibility and we take that challenge completely positively, and we see it a bit more as an honour, rather than a heavy weight.

“Riverdance was here before either of us were born, so we know that the legacy was created, we’ve never known life without Riverdance, and we take it on as a responsibility, as something to pass through to new generations.”

Fergus Fitzpatrick leads the thunderstorm. Pic: Riverdance
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Fergus Fitzpatrick leads the thunderstorm. Pic: Riverdance

Lorcan Murphy was one of the original cast, propelled to unexpected stardom when the show hit the road in 1995.

“When people say what’s your best memory, I say the All Blacks asked me for my autograph,” he recalled.

“I think it’s meant to be the other way around!”

He has never forgotten the moment Riverdance took the world by storm, with a spellbinding fusion of music and dance.

He said: “It broke rules. I think the thing about Riverdance is that it doesn’t have to conform to the rules and balances that were in place beforehand.

“Everything carried a purpose to it, culminating in that incredible night where it was nothing but electricity from start to finish.”

To date, the various casts have produced 70 marriages, and 130 “Riverdance babies”, three of whom have now performed themselves.

The new generation will take Riverdance to new audiences, with an anniversary tour opening in the United States in January.

Riverdance will come to the UK in August, performing across 30 venues until the end of the year.

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Pilotless passenger drones and driverless taxis as China pushes boundaries of how we travel

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Pilotless passenger drones and driverless taxis as China pushes boundaries of how we travel

Have you ever dreamed of flying in an unmanned drone, from city to city?

It sounds like the stuff of fantasy, but in China pilotless passenger drones are a reality.

You can’t catch them like a taxi just yet. But a company called EHang is waiting for the government to approve a commercial licence to start operating short flights around the city of Guangzhou.

EHang’s vice president, He Tianxing, says: “We believe the future must be an era of low altitude, and every city will gradually develop into a city in the sky.

“All human beings aspire to have a pair of wings, and everyone wants to fly freely like a bird.”

Currently, the battery of the two-seater EH216-S allows it to fly for about 25 minutes.

There is no pilot and the craft follows a pre-programmed route.

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Sky News watched it take off from the company’s headquarters in Guangzhou, fly over a port and land again.

Its blades whizzed noisily, but it appeared to fly effortlessly, leaving those on the ground itching for a ride on board.

EHang’s first model was called EH184. “It looked like an octopus, very cool, but more importantly people saw a drone that could carry people,” Mr He says.

He Tianxing, Vice President of EHang, a Chinese company making autonomous aerial vehicles
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He Tianxing, vice president of EHang

This is part of what China calls its “low-altitude economy”. This refers to making money from passenger and delivery drones at an airspace of elevations of up to 1,000 metres.

The government is handing out financial incentives and licences to develop the sector.

Inside a driverless taxi in Wuhan
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Inside a driverless taxi in Wuhan

Wuhan’s different vision for public transport

More than 600 miles away from Guangzhou, the city of Wuhan has a different vision for its public transport.

It’s betting on driverless taxis and has a pilot programme operating around 400 in the city, reportedly aiming to reach upwards of 1000.

The process goes like this: order the car with an app on your phone, it shows up within minutes, you punch in a pin and away you go.

A driverless taxi on the road in Wuhan
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A driverless taxi on the road in Wuhan

US fears over Chinese technology

With no driver at the wheel, it veers seamlessly through the traffic. Occasionally it was a bit jerky. But overall, it was a relaxed novelty drive through the city.

But the technology behind it is so intelligent and sophisticated that the US is moving to ban Chinese and Russian driverless technology from the country.

The US says it is necessary for national security, because the censors and cameras inside the cars can collect critical information.

China though is not worried. It has millions of customers at home.

Speaking earlier this year, Chinese premier Li Qiang said: “We will consolidate and enhance our leading position in industries like intelligent connected new-energy vehicles… and the low altitude economy.”

Read more: ‘World first’ driverless bus service in Scotland axed

On the streets of Wuhan, Mr Kim is catching a driverless taxi for the first time with his young daughter and believes in its reliability.

“We don’t worry because we trust it. It can show how high-tech our city has become,” he says. “We are proud of it.”

But taxi driver Mr Deng is less convinced.

“It’s certainly not as convenient as cars operated by people, because we can react on site,” he says. “If there’s no driver, the roads will be paralysed.”

China is steering its high-tech industries into a bold new world and pushing the boundaries of how we travel.

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