Jeremy Hunt to unveil package of tax hikes and spending cuts in autumn statement to plug £54bn black hole

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3 years ago

November 17, 2022

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Jeremy Hunt will promise to weather an economic “storm” by raising taxes, cutting public spending and scaling back energy support to fill a £54bn black hole in the nation’s finances.

The chancellor will insist to MPs on Thursday that his autumn statement puts the UK on a “balanced path to stability” as he tackles the “enemy” of inflation, which has soared to a 41-year high.

But the measures could put him on a collision course with Tory MPs on the right of his party who are already voicing anger about the prospect of some of the plans.

Dominic Raab says tomato throwing incident ‘never happened’ – politics latest

An 11th hour petition from two dozen Tory MPs, led by Jonathan Gullis, has been sent to the chancellor asking him not to hike fuel duty in the statement.

The package will be in the form of £30bn of spending cuts and £24bn in tax rises over the next five years – a stark contrast to Kwasi Kwarteng’s unfunded tax-slashing spending splurge two months ago.

Among the measures, annual energy bills for a typical household will stay capped at £2,500, but this will rise to £3,000 in April 2023, when support will become more targeted with additional payments for low-income households and pensioners, Sky’s political editor Beth Rigby understands.

On tax rises, those with the broadest shoulders will bear most of the burden, but there will be pain all around.

The chancellor is expected to lower the threshold for paying the highest rate of tax to £125,000 – down from the existing £150,000.

This is a marked difference to Liz Truss’s plans to scrap the 45p rate altogether, giving the highest earners an average tax cut of £10,000.

Analysis says lowering the threshold will bring an extra 246,000 people into the highest bracket at a cost to them of around £580 each a year, which in turn would raise the Treasury £1.3bn a year.

Mr Hunt is also expected to announce a freeze on personal income tax and national insurance tax thresholds lasting until 2028.

Sometimes referred to as a “stealth tax”, freezing tax thresholds drags more earners into paying higher rates of tax.

Mr Hunt has already hinted he will make it easier for local authorities to increase council tax, with reports suggesting the threshold for raising bills without a referendum could increase from 2.99% to 5%.

There is also expected to be a big increase in the windfall tax on energy companies, and a new tax on electricity generators.

Labour has previously said a windfall tax extension could raise an additional £50bn, and criticised what it calls the “loophole” that allows gas and oil firms to offset their tax liability if they invest back into the UK.

On spending cuts, departments are expected to be told to live within an envelope of the March Spending Review, when inflation at was 3%.

With inflation now at 11.1%, that amounts to a real-terms cut across the board, meaning tough choices will be necessary.

However, there will be some exceptions, with the NHS expected to get more money.

There is also likely to be some protection for the schools budget, Sky’s deputy political editor Sam Coates understands.

“There will inevitably be some good news after the weeks of doom-laden warnings,” he said.

Mr Sunak and Mr Hunt have spent weeks warning that tough choices lay ahead.

However, the prime minister told Sky News on Tuesday that “fairness and compassion” will be at the heart of his decisions.

It is understood the chancellor will keep the triple lock for pensioners in his autumn statement – honouring a manifesto commitment.

He is also expected to uprate benefits in line with inflation, rather than earnings (a controversial move that would have saved £5bn).

The government has not confirmed what measures will be in the statement, but there has been a constant stream of measures reportedly being considered.

This “pitch rolling” helps markets get an idea of what is coming down the road and avoids spooking traders.

When Ms Truss and Mr Kwarteng made several surprise announcements in their mini-budget in September, it contributed to the financial chaos which saw the pound crash and the Bank of England forced to intervene to prevent pension funds from collapsing.

Analysis released on Monday by the independent Resolution Foundation think tank found the mistakes they made cost the UK £30bn, doubling the sum the Treasury says will have to be raised.

Mr Hunt will say that his “difficult decisions” are necessary to keep mortgage rates low and tackle the rocketing energy and food prices intensifying the cost of living crisis.

“Families across Britain make sacrifices every day to live within their means, and so too must governments because the United Kingdom will always pay its way,” he is expected to say.

But Tories on the right of the Conservative Party are already voicing anger about the prospect of raising taxes.

Among the Tory critics, former cabinet minister Esther McVey has warned she will not support tax rises without the scrapping of the “unnecessary vanity project” of HS2.

Former business secretary Jacob Rees-Mogg told ITV’s Peston he would vote for the budget so as to not bring the government down, but warned he opposes tax increases, which he believes “risks making a recession worse”.

Labour has also warned that Britain is “falling behind on the global stage”.

Shadow chancellor Rachel Reeves said: “The country is being held back by 12 years of Tory economic failure and wasted opportunities and working people are paying the price.

“What Britain needs in the autumn statement are fairer choices for working people, and a proper plan for growth.”

And Sharon Graham, the general secretary of the Unite union, warned Mr Hunt “workers are ready to take a stand”.

“He can choose to inject investment into the NHS and deliver a fair pay deal – or he can leave it as it is today, in danger of fatal collapse,” she said.

World

Giving up territory would be ‘unacceptable’, says Ukraine’s armed forces chief

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4 hours ago

December 5, 2025

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Giving up territory would be 'unacceptable', says Ukraine's armed forces chief

It would be “unacceptable” for Ukraine to “simply give up territory” in any peace deal with Russia, the head of the Ukrainian armed forces has told Sky News.

General Oleksandr Syrskyi said a “just peace” can only be achieved if fighting is halted along current frontlines and then for negotiations to take place.

Signalling a complete lack of trust in claims by the Kremlin that it wants to end its war, he accused Vladimir Putin of using an attempt by Donald Trump to broker peace talks as “cover” while Russian troops try to capture more land by force on the battlefield.

Ukraine peace talks – latest

The rare intervention offers the clearest indication yet of the Ukrainian military’s red lines as Washington tries to negotiate a settlement that – according to an initial draft – would require Kyiv to surrender the whole of the Donbas region in the east of the country to Moscow.

President Volodymyr Zelenskyy, backed by the UK and other European allies, has been trying on the diplomatic front to strengthen Ukraine’s position.

But President Putin has said Russia would either seize the Donbas militarily or Ukrainian troops would have to withdraw.

Europe’s fate at stake

Speaking frankly, General Syrskyi, commander-in-chief of the armed forces of Ukraine, signalled that his country’s soldiers would fight on if diplomacy fails – and he warned that the fate of the whole of Europe is at stake.

In an exclusive interview in the basement of a building in eastern Ukraine – the location of which we are not disclosing for security reasons – he said Ukraine’s main mission “is to defend our land, our country, and our population”.

“Naturally, for us it is unacceptable to simply give up territory. What does it even mean – to hand over our land? This is precisely why we are fighting; so we do not give up our territory.”

Many troops have died fighting for Ukraine since Russia first seized the peninsula of Crimea and attacked the regions of Donetsk and Luhansk, which comprise the Donbas, in 2014.

Hundreds of thousands of Ukrainian civilians were then mobilised to fight alongside professional soldiers following Putin’s full-scale invasion in February 2022.

Russia well short of original goal

Nearly four years on, Russia occupies almost a fifth of Ukraine, including large parts of the Donbas, but well short of an original goal of imposing a pro-Kremlin government in Kyiv.

Asked whether the sacrifice of those people who gave their lives defending their country would be in vain if Ukraine is forced to hand over the land it still controls in the Donbas to Moscow, General Syrskyi, speaking in Ukrainian through a translator, said: “You know, I do not even allow myself to consider such a scenario.

“All wars eventually end, and of course we hope ours will end as well. And when it does, a just peace must be established.

“In my understanding, a just peace is peace without preconditions, without giving up territory. It means stopping along the current line of contact.”

The commander then broke into English to say that this means: “Stop. A ceasefire. And after that negotiations, without any conditions.”

Switching back into Ukrainian, he said: “Any other format would be an unjust peace, and for us it is unacceptable.”

Ukraine’s contingency plans

While Ukraine’s will and ability to fight are key in confronting Russia’s much larger army, so too is the supply of weapons, ammunition and other assistance from Kyiv’s allies, most significantly the US.

But, with the White House under Donald Trump, becoming less predictable, the Ukrainian military appears to be considering contingency plans in case US aid stops.

Asked whether Ukraine would be able to continue fighting if President Trump did halt support, General Syrskyi said: “We are very grateful to our American partners and all our allies who have been supporting us throughout this war with weapons and equipment.

“We hope they will continue providing full support. But we also hope that our European partners and allies, if necessary, will be ready to provide everything required for our just war against the aggressor.

“Because right now we are defending not only ourselves, but all of Europe. And it is crucial for all Europeans that we continue doing so, because if we are not here, others will be forced to fight in Europe.”

General’s assessment of fighting on ground

A decorated commander, with the call sign “snow leopard”, General Syrskyi has been conducting combat operations against Russia’s invasion for more than a decade.

He was made military chief in February 2024 after President Volodymyr Zelenskyy sacked the previous top commander. General Valerii Zaluzhnyi is now Kyiv’s ambassador to London.

General Syrskyi offered his assessment of the fight on the ground, saying:

• Ukrainian troops still control the northern part of the fortress city of Pokrovsk in the Donbas and will keep battling to retake the rest of it, contrary to Russian claims to have captured what has been a key target for Moscow for the past 16 months.

• Russia is firing between 4,000 to 5,000 one-way attack drones at Ukrainian positions along the frontline every day as well as 1,500 to 2,000 drones that drop bombs. But Ukraine is firing the same volume – and even more – back. “In terms of drones, there is roughly parity. At the moment, we are deploying slightly more FPV [first person view] drones than the Russians.”

• Russia’s armed forces still have double the volume of artillery rounds of Ukraine’s, but the range and lethality of drone warfare mean it is harder to use artillery effectively. Now, 60% of strikes are carried out by drones.

• More than 710,000 Russian soldiers are deployed along a frontline that stretches some 780 miles (1,255km), with the Russian side losing around 1,000 to 1,100 soldiers a day, killed or wounded “and a majority are killed”.

The Russian army is currently “attempting to advance along virtually the entire frontline,” General Syrskyi said.

Where are the harshest battles?

The fiercest battles are around Pokrovsk, as well as the northeastern city of Kupiansk, in Kharkiv region, the Lyman area, also in the Donbas, and near a small city called Huliaipole, in the Zaporizhzhia region of southeastern Ukraine.

“The Ukrainian army is conducting a strategic defensive operation, aiming to contain the enemy’s advance, prevent them from breaking deeper, inflict maximum losses, and carry out counter-offensive actions in those sectors where we see the enemy is vulnerable,” the commander said.

“Our strategy is to exhaust the Russian army as much as possible, prevent its advance, hold our territory, while simultaneously striking the enemy in the near rear, the operational depth, and… into Russia itself, with the aim of undermining its defence capability and industrial capacity.”

He is referring to a capability Ukraine has developed to launch long-range drones, laden with explosives, deep into Russia to strike military targets as well as oil refineries.

The operation is aimed at destroying fuel for the tanks, warships and jets that are attacking Ukraine and – crucially – reducing oil revenues that help to fund Russia’s war machine.

Sea drones crash into Russia’s warships

The Ukrainian military is also deploying explosive sea drones that are smashed into Russian warships as well as tankers used to transport sanctioned Russian oil.

Asked if his forces were ready – and had sufficient manpower – to keep fighting if necessary, General Syrskyi said: “We have the resources to continue conducting military operations.”

Yet Ukraine is suffering from a shortage of troops on the frontline.

Soldiers and wider society are also exhausted and facing another winter of war.

No sign of Moscow winding down war effort

President Putin has an advantage when it comes to troop numbers and firepower over time, which makes continued support to Kyiv from its allies more vital than ever.

General Syrskyi cautioned that Moscow showed no sign of winding down its war effort despite the Russian leader telling President Trump he is prepared to negotiate.

“So we do everything so that if the enemy continues the war, and you can see that although we want peace, a fair peace, the enemy continues its offensive, using these peace talks as cover,” he said.

“There are no pauses, no delays in their operations. They keep pushing their troops forward to seize as much of our territory as possible under the cover of negotiations.”

He added: “So we are just forced to wage this war… protecting our people, our cities and towns, and our land.”

The commander said this is what motivates his soldiers.

“If we do not do this, we can see clearly what the Russian army leaves behind, only ruins, only deaths.”

As for whether the UK and other European nations should be preparing their people for the possibility of a wider war with Russia, the general said: “Of course, the armed forces of every country ensure reliable protection of their citizens, their children, and their territory.

“With the existence of aggressive states, above all the Russian Federation and its allies, this issue is extremely urgent.

“Everything must be done to ensure the capability to maintain a level of defence, and armed forces modern enough to repel aggression, both individually and in support of the allies.”

World

Major city may have to evacuate as water supplies run low

Published

10 hours ago

December 5, 2025

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Major city may have to evacuate as water supplies run low

Iran’s capital is counting down to “day zero” – the day the water runs out and the taps run dry.

Reservoirs that supply Tehran’s 15 million residents are almost empty.

The Karaj dam, which supplies a quarter of the city’s drinking water, is just 8% full.

Water rationing has begun in some areas, with the flow from taps reduced or even stopped altogether overnight.

President Masoud Pezeshkian has urged people to use water sparingly – or the city, or at least parts of it, may even have to evacuate.

So what’s going on?

Rain should start falling in the autumn after Iran’s hot dry summer.

But according to the country’s National Weather Forecasting Centre, this has been the driest September to November period in half a century, with rainfall 89% below the long-term average.

The combination of low rainfall and high heat has lasted for more than five years, leaving the country parched.

But the weather – and the shadow of climate change – aren’t the only factors in Tehran’s water crisis.

According to the Centre for Strategic and International Studies, the population of the city has almost doubled from 4.9 million in 1979 to 9.7 million today.

But water consumption has risen even faster, quadrupling from 346 million cubic metres in 1976 to 1.2 billion cubic metres now. Increasing wealth has allowed more people to buy washing machines and dishwashers.

To supplement supplies from reservoirs, Tehran has had to turn to natural aquifers underground, which provide between 30% and 60% of its tap water in recent years.

But that puts the city in direct competition with farmers who draw on the water to irrigate crops.

Levels are falling by 101 million cubic metres a year around Tehran, according to analysis in the journal Science Advances. That’s water that has accumulated from many decades of rain – and will take at least as long to replenish.

Professor Kaveh Madani, the former deputy head of Iran’s environment department and now director of the United Nations University Institute for Water, Environment and Health, said chronic mismanagement of natural resources has led to what he calls water bankruptcy.

He told Sky News: “These things were not created overnight.

“They’re the product of decades of bad management, lack of foresight, overreliance and false confidence in how much infrastructure and engineering projects can do in a country that is relatively water short.”

Government ministers blame the water shortage on climate change, water leaks from pipes and the 12-day war with Israel.

Whatever the reason, it underlines the threat of water scarcity to global cities. Tehran is not alone.

Cape Town in South Africa narrowly avoided taps running dry eight years ago after a city-wide effort to save water.

Even London, known for its rain, is at risk. Supplies haven’t kept up with population growth and booming demand.

As Tehran has found, droughts that are being made more likely and more severe with climate change can expose the fragility of water supply.

World

Everything you need to know about World Cup 2026

Published

10 hours ago

December 5, 2025

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Everything you need to know about World Cup 2026

England and other qualified teams are finally set to find out who they’ll be facing in the group stages of the 2026 FIFA men’s World Cup today.

It’s guaranteed to be the biggest World Cup ever, with 48 teams competing instead of the usual 32.

Here’s everything you need to know.

When is the World Cup draw?

The draw, which determines which teams face which in the group stages, will take place on in Washington DC from 12pm local time, or 5pm UK time tonight.

US President Donald Trump will join FIFA’s Gianni Infantino at the John F Kennedy Center – a performing arts venue where Mr Trump is chairman – to decide the fixtures.

Due to the increased number of countries taking part in the tournament, the format of the group stages has changed slightly. Instead of 32 teams being divided into eight groups, this year will see 12 groups of four.

The top two teams in each group, plus the eight best third-placed teams, will advance to a round of 32.

For the draw, Spain, Argentina, France and England – the four highest ranked teams – will be placed in the same pot for the draw, and are guaranteed not to meet each other until the semi-finals.

The three host nations are also guaranteed not to meet early, having been put in Pot 1 with the top teams.

The draw seedings are as follows:

Pot 1: Spain, Argentina, France, England, Brazil, Portugal, Netherlands, Belgium, Germany, United States, Mexico, Canada.

Pot 2: Croatia, Morocco, Colombia, Uruguay, Switzerland, Japan, Senegal, Iran, South Korea, Ecuador, Austria, Australia.

Pot 3: Norway, Panama, Egypt, Algeria, Scotland, Paraguay, Tunisia, Ivory Coast, Uzbekistan, Qatar, Saudi Arabia, South Africa.

Pot 4: Jordan, Cape Verde, Ghana, Curacao, Haiti, New Zealand, European playoff winner 1, European playoff winner 2, European playoff winner 3, European playoff winner 4, Intercontinental playoff winner 1, Intercontinental playoff winner 2.

You’ll be able to watch the ceremony via FIFA’s website or YouTube channel, while the BBC and BBC iPlayer will also be showing the draw.

Sky Sports will be offering live coverage of the draw, including analysis and reaction as the groups and fixtures are revealed.

FIFA says the draw is scheduled to take about 45 minutes during a show lasting about an hour and a half.

On 6 December at 5pm UK time, FIFA will put out another broadcast in which it will reveal all match venues and kick-off times.

Could Trump be getting a prize?

In November, FIFA revealed it had created a new worldwide peace prize, and that it would hand it out for the first time during the draw ceremony.

It said it would be given to “individuals who have taken exceptional and extraordinary actions for peace” – with no indication that potential recipients were limited to the world of sports.

It has prompted speculation the award will go to Donald Trump, who has long campaigned for a Nobel Peace Prize.

Mr Infantino, who has built up a strong relationship with the US president, backed him for the Nobel prize, writing on Instagram in October that Mr Trump “definitely deserves” the award for his efforts toward a peace deal in Gaza.

The award ultimately went to Venezuela’s opposition leader Maria Corina Machado.

When asked later if Mr Trump would get FIFA’s award, Mr Infantino laughed and said: “On the 5th of December, you will see.”

When and where is the World Cup?

The tournament runs from 11 June to 19 July 2026 and will be played at 11 sites in America, three in Mexico and two in Canada.

A total of 48 countries will be involved – up from 32 in 2022 – and 104 games will be played overall – up from 64.

The host nations automatically qualify and will play all three of their group stage matches on home soil.

The final will take place at the New York New Jersey (MetLife) Stadium – home of the New York Giants and New York Jets.

All stadiums where games will be played include:

America:
• Atlanta Stadium
• Boston Stadium
• Dallas Stadium
• Houston Stadium
• Kansas City Stadium
• Los Angeles Stadium
• Miami Stadium
• New York New Jersey Stadium
• Philadelphia Stadium
• San Francisco Bay Area Stadium
• Seattle Stadium

Mexico:
• Estadio Azteca Mexico City
• Estadio Guadalajara
• Estadio Monterrey

Canada:
• Toronto Stadium
• BC Place Vancouver Stadium

Trump threatening to change host cities

Despite the stadiums already being selected, Donald Trump has threatened to remove Democrat-run city of Los Angeles from hosting, along with the Boston area.

Boston itself is not a host area, but the home of the NFL’s New England Patriots is being used by FIFA for seven matches, 30 miles away in Foxborough, Massachusetts.

“If we think there’s going to be a sign of any trouble, I would ask Gianni [Infantino] to move that to a different city,” Mr Trump said in November, as protests against his government have taken place in both cities.

FIFA has told Sky News the US government does have the right to determine if cities are safe for the World Cup.

In a statement, FIFA said: “Safety and security are the top priorities at all FIFA events worldwide.

“Safety and security are obviously the governments’ responsibility, and they decide what is in the best interest for public safety.

“We hope every one of our 16 host cities will be ready to successfully host and fulfil all necessary requirements.”

Scott LeTellier, who was managing director of the 1994 World Cup in America, suggested the cities in question shouldn’t worry about Mr Trump’s threats, as changing the stadiums would require “some kind of national emergency that would give the government the authority to cancel an event”.

“I don’t see even a remote chance of that happening,” he said.

What teams could still qualify?

Out of an available 48 spots, 42 teams have already qualified.

The line-up automatically includes the three host nations, America, Mexico and Canada. While 16 of the spots are reserved for European teams – made up of the 12 UEFA qualifying group winners and the other four coming via play-offs.

Remaining qualifying spots are divided between the other confederations:
• CONMEBOL (South America) gets a minimum of six
• CONCACAF (North/Central America and Caribbean) gets a minimum of six
• AFC (Asia) gets eight
• CAF (Africa) gets nine
• OFC (Oceania) is guaranteed one spot.

For the first time since 1998, Scotland have bagged themselves a place through qualifying while Jordan, Curacao, Cape Verde and Uzbekistan will all make their World Cup debuts.

The final slots at the tournament will be decided through play-offs.

On one side, a new inter-confederation tournament will see two teams from CONCACAF and one team each from CONMEBOL, AFC, CAF and OFC to battle it out for two spots in the World Cup.

The six teams that have qualified for these play-offs are: Bolivia, Congo DR, Iraq, Jamaica, New Caledonia and Suriname.

European, or UEFA, play-offs work slightly differently, with 16 teams battling it out for four available spaces.

This tournament is made up of the 12 runners-up from the European Qualifiers groups and the four best-ranked group winners of the 2024/25 UEFA Nations League that did not finish their group stage in first or second place.

On 20 November, a draw to determine who is set to play who in the eight semi-final matches on 26 March 2026 was made by FIFA. The winners will advance to the four final-stage matches on 31 March.

Should Wales and Northern Ireland both win their first-round games, they will then face each other, putting two home nations up against one another.

Will there be a half-time show?

Following in the footsteps of the NFL’s Superbowl, FIFA has confirmed that a half-time show will be performed during the World Cup final on 19 July.

Despite other finals having had musical acts before, this will be the first half-time show.

Earlier this year, FIFA’s Mr Infantino said British band Coldplay is behind the decision-making on multiple artists who will perform – none have been confirmed so far.

Meet the mascots – and the ball

As there are three host nations, this year’s World Cup also comes with three mascots.

Maple the moose, Zayu the jaguar and Clutch the bald eagle will represent host countries Canada, Mexico and America respectively.

Also reflecting the three co-hosts is the official World Cup match ball – Trionda – which means three waves in Spanish.

The ball features a swirled pattern incorporating red, green and blue, with each section representing a host nation.

How much are tickets?

FIFA says the cheapest tickets are from $60 (£45) in the group stage. But the most expensive tickets for the final are $6,730 (£5,094).

Initially, FIFA suggested tickets would be sold using dynamic pricing, meaning fans would pay different prices according to demand.

Variable pricing – fluctuating based on demand – had never been used at a World Cup before, raising concerns about affordability.

FIFA has now backed away from it, saying allocations would be set at a fixed price for the duration of the next ticket sales phase.

How you can get tickets

Tickets for the World Cup have been released in three phases, each with slightly different rules on who can buy the tickets and how.

Phase one was a Visa Presale Draw for people with a valid, unexpired Visa debit card, credit card, or reloadable prepaid card enabled with 3D Secure. This phase has now closed.