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Here are all the main announcements from Chancellor Jeremy Hunt’s autumn statement to MPs:

Energy bills

• Energy bill aid for households extended beyond April for a further year through energy price guarantee, but average annual bill will be £3,000 from current £2,500. Amounts to around £500 support for households.

• Additional cost of living payments next year of £900 to households on means-tested benefits; £300 to pensioner households and £150 for individuals on disability benefit.

Autumn statement – latest reaction

• An additional £1bn of funding to enable a further twelve month extension to the household support fund.

• Government will proceed with the Sizewell C new nuclear plant with £700m investment by taxpayer to bolster energy security and diversify further from harmful carbon.

• New funding, from 2025, of a further £6bn in energy efficiency.

• Working age and disability benefits uprated by inflation with an increase of 10.1% at cost of £11bn.

• Over 600,000 more people on Universal Credit to be forced to meet with a work coach in a bid to get more into the workforce and better-paid jobs.

• Increase in social rents to be capped at a maximum of 7% in 2023/24.

• National Living Wage to rise by 9.7% from April to an hourly rate of £10.42, an annual pay rise worth over £1600 to a full time worker.

Pensions

• Pension credit to rise by 10.1%, worth up to £1470 for a couple and £960 for a single pensioner. This delivers on promise under the so-called triple-lock.

Tax

• Reduces the threshold at which the 45p rate becomes payable from £150,000 to £125,140.

• Maintains freeze on the income tax personal allowance, higher rate threshold, main national insurance thresholds and the inheritance tax thresholds for a further two years – to April 2028.

• Dividend allowance will be cut from £2,000 to £1,000 next year and then to £500 from April 2024.

• The annual exempt amount for capital gains tax will be cut from £12,300 to £6,000 next year and then to £3,000 from April 2024.

• From April 2025, electric vehicles will no longer be exempt from vehicle excise duty.

• Stamp duty cuts announced in the mini-budget will remain in place, but only until 31 March 2025.

• While the employer’s National Insurance contributions threshold is frozen until April 2028, the employment allowance will be retained at its new, higher level of £5,000 until March 2026.

• R&D tax relief for SMEs deduction rate cut to 86% and the credit rate to 10% but increase the rate of the separate R&D expenditure credit from 13% to 20%.

• Windfall tax on major oil and gas producers raised to 35% from 25%. A 45% energy profits levy rate to be imposed on electricity generators to raise a combined £14bn next year.

• Nearly two thirds of properties will not pay a penny more in business rates next year. Says thousands of pubs, restaurants, and small high street shops will benefit to the tune of £14bn over five years.

Business support

• By the end of next year, changes to EU regulations in five growth industries: digital technology, life sciences, green industries, financial services and advanced manufacturing will have been decided.

• Plan to help make Britain the “new Silicon Valley” will also see public funding for R&D (research and development) increased to £20bn by 2024/5.

• “We will deliver the core Northern Powerhouse Rail”. Promises existing funding for HS2 to Manchester, East West Rail., new hospitals programme and gigabit broadband rollout.

NHS

• Adult social care secures additional grant funding of £1bn next year and £1.7bn the year after. Says this means an increase in funding available for the social care sector of up to £2.8bn and £4.7bn respectively.

• Increases the NHS budget, in each of the next two years, by an extra £3.3bn.

• To invest an extra £2.3bn per year in our schools.

• An extra £1.5bn for the Scottish government, £1.2bn for the Welsh government and £650m for the Northern Ireland Executive.

Economy

• Office for Budget Responsibility (OBR) forecasts borrowing in this financial year of £177bn, £140bn in 2023/4.

• OBR sees “overall” UK growth in 2022 of 4.2% but economy now in recession. Contraction of 1.4% expected in 2023.

• OBR sees a rise in unemployment from 3.6% today to 4.9% in 2024.

• OBR sees an average inflation rate this year of 9.1% and 7.4% next year.

• Two new fiscal rules: Underlying debt must fall as a percentage of gross domestic product by the fifth year of a rolling five-year period, and that public sector borrowing must be below 3% of GDP over the same period.

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China’s premier air show wows spectators – but the West won’t have liked seeing Russia’s jets

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China's premier air show wows spectators - but the West won't have liked seeing Russia's jets

Outgoing US President Joe Biden is set to meet his Chinese counterpart Xi Jinping today for what is likely to be his last time as US president.

The two leaders are expected to hold talks on the sidelines of a meeting of Asia-Pacific leaders in the Peruvian capital, Lima.

It comes against the backdrop of increasing tension in the US-China relationship with a potential trade war looming under a Trump presidency, several China hawks tapped for US cabinet positions and China’s growing status among global south countries as an emerging leader of an alternative world order.

This week China was focused on events in the southern city of Zhuhai.

First there was a car ramming attack at Zhuhai’s sports stadium which left 25 people dead. A shocking event that was heavily censored in China.

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What happened at Zhuhai sports centre?

Less than an hour’s drive away the country was holding its premier air show.

It was a military enthusiast’s dream, and not even intermittent rain could keep the crowds of tens of thousands of people away from relishing in the roar of jets in the skies above Zhuhai.

China’s fighter jet fleet

One of the main drawcards was China’s newest stealth fighter the J-35A. It will join the country’s J-20 in service for the People’s Liberation Army Air Force (PLAAF).

A J-35A stealth aircraft flies during the exhibition. Pic: Reuters
Image:
A J-35A stealth aircraft flies during the exhibition. Pic: Reuters

The J-10C was China’s aerobatics star of the show. There were daily displays of its prowess in sky-high manoeuvres and formations that impressed onlookers, leaving a streak of colours across the cloudy rain-clogged sky.

Pic from Nicole Johnston and team
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China’s aerobatic team

China’s military modernsiation programme is continuing apace

It boasts the largest navy in the world and the largest armed forces by active-duty personnel.

The People’s Liberation Army (PLA) Airforce is developing fast too.

Dr Nicole Leveringhaus, a China security expert from King’s College London, says: “China started with very little. It was devastated by wars on many fronts in the 30s and 40s. Its defence industry was depleted. In 70-plus years it’s built itself up and now we’re seeing the results.

“It’s an impressive feat to go from a bloated land-based peasant guerrilla army to what it has to today.”

Chinese pride and nationalism on display

Enjoying the air show spectacle, military fan Liu Liansong said: “I think the air show is great. It is a firm manifestation of the air force’s development from scratch. We as Chinese people feel very proud.”

Defence exhibition near Beijing
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Inside the air show


Defence exhibition near Beijing

The air show included massive exhibition halls of military hardware, from drones to robotics, firearms and mock missiles. Merely getting from one end of the venue to the other through densely packed crowds was a mission.

Russia in the air

The other crowd puller this week was Russia’s aerobatic air force unit, performing daily theatrics at dizzying speeds.

It is another sign of the deepening ties between China and Russia.

Defence exhibition
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Russia’s aerobatic team shows off for the crowd

One Russian tourist and recreational pilot, Yulia, told Sky News: “Both sides are looking for good communication in business, aviation and in many spheres including tourism.”

The secretary of Russia’s security council and former defence minister Sergei Shoigu also visited the air show, viewing both Chinese and Russian-made jets.

In Beijing, secretary Shoigu was quoted by Russian state media as saying: “I see the most important task as countering the policy of ‘dual containment’ of Russia and China pursued by the United States and its satellites.”

Defence exhibition near Beijing
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One of Russia’s jets up close

Defence exhibition near Beijing

The West is increasingly frustrated by China’s support of Russia. The US has sanctioned two Chinese companies, accusing them of being involved in the production of Russian aerial drones used on the battlefield.

China insists it is not supplying weapons to Russia.

One of the companies, Xiamen Limbach Aircraft Engine Co, had a small stand in one of the exhibition halls. Its representatives declined Sky News’ request for an interview.

Tariff war brewing

Despite the raw military might on display in Zhuhai, in China there is uncertainty and unease about what an impending Donald Trump presidency will mean for global trade.

Defence exhibition near Beijing.

President-elect Trump has threatened blanket tariffs of up to 60% on Chinese products exported to the US.

This would be a serious blow to China’s target GDP growth and comes at a time when the country’s economy faces deep-set challenges.

Read more:
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At the other end of the country, in Beijing analysts are weighing up the impact of possible tariffs and the Chinese government’s options to respond.

Senior Asia analyst Chim Lee, from The Economist Intelligence Unit, is not optimistic that a US-China agreement to minimise the damage can be reached.

Senior Asia Analyst Chim Lee
Image:
Senior Asia analyst Chim Lee

“I think both sides have recognised that the era of making deals is passed,” Mr Lee said.

“We’re going to see China starting with some targeted measures, tariffs it feels more comfortable to impose,” he explained. “But there are also areas where China is starting to be a bit more aggressive.”

This action could include export controls on China’s production of critical minerals and retaliatory tariffs on US agriculture exports.

Trade competition, military posturing and complicated geo-political alliances have set the stage for a challenging next phase in US-China relations.

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Pictures show moment Israeli bomb exploded at Beirut apartment block

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Pictures show moment Israeli bomb exploded at Beirut apartment block

New pictures show the moment of impact as an Israeli missile hit a Beirut apartment block and exploded.

The block was one of five buildings destroyed by airstrikes on Friday alone.

Israel launched airstrikes in the southern suburbs of Beirut in a fourth consecutive day of intense attacks.

There were no immediate reports of casualties.

An Associated Press photographer captured a sequence of images showing an Israeli bomb approaching and hitting a multi-storey apartment building in Beirut’s Tayouneh area.

A bomb dropped from an Israeli jet prepares to hit a building in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
A bomb dropped from an Israeli jet prepares to hit a building in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)

Richard Weir, a senior crisis, conflict and arms researcher at Human Rights Watch, reviewed the close-up photos to determine what type of weapon was used.

“The bomb and components visible in the photographs, including the strake, wire harness cover, and tail fin section, are consistent with a Mk-84 series 2,000-pound class general purpose bomb equipped with Boeing’s joint directed attack munition tail kit,” he told AP.

A bomb dropped from an Israeli jet hits a building in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
Thick smoke and flames erupt from an Israeli airstrike on Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
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Pics: AP

Smoke covers a building that collapses following an Israeli airstrike in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
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Smoke covers a building that collapses following the strike. Pic: AP

Deadly strikes as bombardment stepped up

Israel stepped up its bombardment this week – an escalation that has coincided with signs of movement in US-led diplomacy towards a ceasefire.

The Israeli military said its fighter jets attacked munitions warehouses, a headquarters and other Hezbollah infrastructure. It issued a warning on social media identifying buildings ahead of the strikes.

Meanwhile, an Israeli airstrike killed five members of the same family in a home in Ain Qana in the southern province of Nabatiyeh, Lebanon’s state media said.

The report said a mother, father and their three children were killed but didn’t provide their ages.

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Three other Israeli strikes killed six people and wounded 32 in different parts of Tyre province on Friday, also in south Lebanon, the report said.

Video footage also showed a building being struck and turning into a cloud of rubble and debris that billowed into Horsh Beirut, the city’s main park.

Civil defense workers extinguish a fire as smoke rises from the site of an Israeli airstrike in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
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Residents check the site of the airstrike in Tayouneh, Beirut. Pic: AP

Residents check the site of an Israeli airstrike in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)
Residents check the site of an Israeli airstrike in Tayouneh, Beirut, Lebanon, Friday, Nov. 15, 2024. (AP Photo/Hassan Ammar)

More than 3,200 people have been killed in Lebanon during 13 months of fighting between Israel and Hezbollah – most of them since mid-September.

About 27% of those killed were women and children, according to Lebanon’s health ministry.

Israel dramatically escalated its bombardment of Lebanon from September, vowing to cripple Hezbollah and end its barrages in Israel.

Friday’s strikes come as Lebanon’s caretaker prime minister has asked Iran to help secure a ceasefire in the war between Israel and Hezbollah.

The prime minister appeared to urge Ali Larijani, a top adviser to Iran’s supreme leader, Ali Khamenei, to convince the militant group to agree to a deal that could require it to pull back from the Israel-Lebanon border.

Iran is a main backer of Hezbollah and for decades has been funding and arming the Lebanese militant group.

On Thursday, Eli Cohen, Israel’s energy minister and a member of its security cabinet, said that prospects for a ceasefire with Lebanon were the most promising since the conflict began.

The Washington Post reported Israel’s Prime Minister Benjamin Netanyahu was rushing to advance a Lebanon ceasefire to deliver an early foreign policy win to his ally, US President-elect Donald Trump.

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Elon Musk hints 80-hour-a-week DOGE job for ‘high-IQ revolutionaries’ will be unpaid

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Elon Musk hints 80-hour-a-week DOGE job for 'high-IQ revolutionaries' will be unpaid

“Super high-IQ revolutionaries” who are willing to work 80+ hours a week are being urged to join Elon Musk’s new cost-cutting department in Donald Trump’s incoming US government.

The X and Tesla owner will co-lead the Department Of Government Efficiency (DOGE) with former Republican presidential candidate Vivek Ramaswamy.

And in a post on X, the official DOGE account put out a call to arms for people to sign up and help “dismantle government bureaucracy”.

The post said: “We are very grateful to the thousands of Americans who have expressed interest in helping us at DOGE.

“We don’t need more part-time idea generators.

“We need super high-IQ small-government revolutionaries willing to work 80+ hours per week on unglamorous cost-cutting.

“If that’s you, DM this account with your CV. Elon & Vivek will review the top 1% of applicants.”

Read more:
Who is in Trump’s top team?
Trump’s cabinet signals tough stance on China

Elon Musk speaks after President-elect Donald Trump spoke during an America First Policy Institute gala at his Mar-a-Lago estate. Pic: AP Photo/Alex Brandon
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Elon Musk speaking at an event held at Donald Trump’s Mar-a-Lago estate. Pic: AP Photo/Alex Brandon

In a reply to an interested party, Mr Musk suggested the lucky applicants would be working for free.

“Indeed, this will be tedious work, make lost of enemies & compensation is zero,” the world’s richest man wrote.

“What a great deal!”

When announcing the new department, President-elect Donald Trump said Mr Musk and Mr Ramaswamy “will pave the way for my administration to dismantle government bureaucracy, slash excess regulations, cut wasteful expenditures, and restructure federal agencies”.

Mr Musk has previously made clear his desire to see cuts to “government waste” and in a post on his X platform suggested he could axe as many as three-quarters of the more than 400 federal departments in the US, writing: “99 is enough.”

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