Jeremy Hunt to defend autumn statement amid warning of record fall in living standards
Jeremy Hunt will continue to defend his autumn statement today as experts warn of a record fall in living standards across the country.
The chancellor presented his economic plan to parliament on Thursday, littered with stealth taxes and curbs on government spending amounting to £55bn in an attempt to plug the black hole in public finances.
But the independent Office for Budget Responsibility warned the disposable incomes of UK households would fall by 7.1% over the next two years – the lowest level since records began in 1956/7, and taking incomes down to 2013 levels.
Politics live: Top Tory warns ‘jury is out’ on chancellor’s plans
As a result of the Mr Hunt’s announcements, the tax burden in the UK will also now be at its highest since the Second World War, and there are stark warnings about increased bills and higher unemployment as the recession takes hold – as well as predictions the economy will still shrink 1.4% in 2023.
But most of the difficult decisions on spending have been postponed until after the next general, due in 2024.
Both the Resolution Foundation and the Institute for Fiscal Studies will lay out their own analysis of the plans later this morning, but Treasury analysis already suggests around 55% of households will be worse off as a result of the measures.
Meanwhile, Labour has blamed “12 weeks of Conservative chaos” and “12 years of Conservative economic failure” for the bleak outlook.
Shadow chancellor Rachel Reeves accused the government of forcing the UK economy into a “doom loop where low growth leads to higher taxes, lower investments and squeezed wages, with the running down of public services”.
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During his statement, Mr Hunt distanced himself from the philosophy of Liz Truss’s short-lived government – which promised billions of unfunded tax cuts and sent the markets into turmoil.
Yet, while the chancellor froze tax thresholds, lowered the point the higher rate of income tax kicks in and extended the windfall tax on energy firms (the latter, a Labour policy) amid other measures, he also promised more spending on the NHS, social care and education, as well as re-committing to uprating pensions and benefits in line with inflation.
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Hunt questioned over autumn statement
Mr Hunt also pledged to continue support for energy bills from April next year – though raising the cap to £3,000 for the average household.
Speaking to reporters after the announcement, he said the government was “helping every bit as much as we can” to reduce the impact of the recession on households and businesses, as well as protecting public services.
But he pointed to those spending decisions, adding: “As soon as the recession is behind us, then, yes, we will consolidate to make sure that we’re balancing our books – and I think that’s what people would want.”
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’12 weeks of Conservative chaos’ – Rachel Reeves
While many in his party were supportive of the “difficult decisions”, the chancellor made in light of the energy crisis, the war in Ukraine and the fallout from the pandemic – as well as Ms Truss’s tenure in office – other Tories warned against hiking taxes while the country is in a recession.
Former party leader Sir Iain Duncan Smith told Sky News: “My worry is they’ve estimated that they will get certain revenues from their tax rises [but] those tax rises could end up damaging the economy and they won’t get the revenues thereafter, which means they’ll be back again looking for more.
“[There] is every chance that tax increases don’t yield what you think they will, so this could lead to a deeper recession. We need to watch that very carefully and see where it goes.”
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And former Wales Secretary David Jones told the Telegraph that the if high taxes continue, “the prospects of Tories winning the next election… are going to become more remote”.
Opposition parties were also quick to condemn the plan, with Liberal Democrat MP Sarah Olney saying it will “cause untold pain for everyone”, and the SNP’s Kirsty Blackman saying it “ushered in a new era of damaging austerity cuts”.
MPs will debate the measures in the Commons on Monday and Tuesday next week.
It is an earthquake for the MAGA ecosystem.
Donald Trump and Marjorie Taylor Greene were a formidable alliance on the Republican Party’s hard-right flank.
For years, the congresswoman for Georgia embodied the combative, conspiracy-tinged politics that define Trump’s presidency.
She called him “the father of the America First movement,” campaigned to be his running mate, and was quick to defend him.
“David Cameron can kiss my ass,” she told Sky News when asked about the former UK Prime Minister’s concerns about US fading support for Ukraine.
Door-stepped by my colleague Martha Kelner, she said: “We don’t give a crap about your country or your reporting.
“The Trump administration is doing a great job and I stand by their statements,” she added.
“I’m thankful to President Trump that he is leading us out of wars.”
Watch Sky’s Martha Kelner’s encounter with Taylor Greene from earlier this year…
But in recent months, she had expressed concerns about Trump’s involvement in the Middle East, Ukraine and elsewhere.
It escalated when she stood with victims of sex offender Jeffrey Epstein to demand justice and joined Democrats in demanding a vote on the release of all files.
Just days ago, President Trump told reporters Taylor Greene had “lost her way”, but something triggered a war of words late on Friday.
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‘Shame on everyone that protected Epstein’
The president had taken questions on Air Force One, with two reporters citing Taylor Green’s demand that the files be released.
Moments later, President Trump posted on Truth Social that he was withdrawing his endorsement of the congresswoman.
He branded her a “ranting lunatic”, “wacky Marjorie”, and said all she ever does is “COMPLAIN, COMPLAIN, COMPLAIN.”
Her reply came very quickly, in a post claiming she had sent the president text messages about Jeffrey Epstein.
“Apparently this is what sent him over the edge. The Epstein Files,” she posted.
Read more on Jeffrey Epstein:
Ghislaine Maxwell ‘wants Trump to commute sentence’
What Epstein’s right-hand woman said about Trump and Andrew
She accused him of “coming after” her to “scare all the other Republicans” before next week’s vote to release the Epstein files.
“It’s astonishing how hard he’s fighting to stop the Epstein files from coming out that he actually goes to this level,” she added.
For years, they were joined at the hip – Trump the movement’s figurehead, Taylor Greene its megaphone – but it has now descended into open hostility.
Epstein, the story that won’t go away, has just cost Trump one of his most loyal allies, and rocked the internal dynamics of his political movement.
At least nine people have been killed and 32 injured after a cache of confiscated explosives detonated inside a police station in Indian-administered Kashmir.
The accidental blast occurred late on Friday in the Nowgam area of Srinagar, as forensic and police personnel were evaluating the explosive material, according to police director-general Nalin Prabhat.
Most of the dead were officers and forensic staff, police said, adding that several of the injured remained in a critical condition.
The massive explosion tore through the police station, setting the building and several vehicles on fire.
“The intensity of the blast was such that some body parts were recovered from nearby houses, around 100-200m away from the police station,” a police source said.
A series of smaller successive blasts slowed rescue operations.
A police official lays flowers on a coffin at a ceremony for the victims. Pic: Reuters
The police station blast comes just days after a deadly car explosion in New Delhi on Monday, which killed at least eight people near the city’s historic Red Fort.
The car explosion occurred hours after police in Kashmir said they had dismantled a suspected militant cell operating from the region, arresting at least seven people, including two doctors from Indian cities.
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Police also seized a large quantity of bomb-making material in Faridabad, near New Delhi.
Indian security forces have conducted multiple raids across Kashmir during their investigation, questioning hundreds and detaining dozens.
Relatives protest following the blast. Pic: Reuters
Authorities said DNA testing identified the car’s driver as a Kashmiri doctor, and government forces demolished his family home in Pulwama district on Thursday night.
In the past, security forces have demolished the homes of individuals they allege were linked to militants opposing Indian rule in Kashmir as a form of punishment.
India and Pakistan both claim all of Kashmir, though each controls only part of the territory.
Militants in the Indian-administered region have been fighting against New Delhi since 1989, with India labeling it Pakistan-backed terrorism.
Pakistan denies the claim, saying that many Kashmiris view it as a legitimate struggle for independence.
World
Donald Trump withdraws support for Marjorie Taylor Greene after she calls for Epstein files to be released
Donald Trump has withdrawn support for Republican Congresswoman Marjorie Taylor Greene – which she claims is over her support for releasing files about Jeffrey Epstein.
In comments made on Truth Social, Mr Trump said he would support any challenger who wants to take Ms Greene’s seat in Georgia.
It comes after weeks of the MAGA ally breaking ranks from the president – and according to a post on X after his withdrawal, she believes it’s over a possible vote on releasing all of the Epstein files.
Read more: Marjorie Taylor Greene – the MAGA ally known for embracing conspiracies and insulting journalists
After the US government shutdown ended, a petition to vote on the full release of the files about disgraced pedophile financier Epstein received enough signatures – including Ms Greene’s – to bring it to a vote in the House of Representatives.
While such a vote does not yet have a date, Mr Trump has called the files a “hoax” and accused the Democrats of using them “to try and deflect from their disastrous SHUTDOWN”.
Earlier this week, thousands of documents from Epstein were released, which reference Mr Trump, Andrew Mountbatten-Windsor and Peter Mandelson, among others.
Read more: What do Epstein documents say about Trump, Andrew and Mandelson?
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The new Epstein files: The key takeaways
Trump attacks ‘Wacky’ Majorie
In his post on Truth Social overnight, Mr Trump said: “all I see “Wacky” Marjorie do is COMPLAIN, COMPLAIN, COMPLAIN!
“It seemed to all begin when I sent her a Poll stating that she should not run for Senator, or Governor, she was at 12%, and didn’t have a chance (unless, of course, she had my Endorsement – which she wasn’t about to get!).”
The president went on to claim “she has told many people that she is upset that I don’t return her phone calls anymore”, before adding: “I can’t take a ranting Lunatic’s call every day.
“I understand that wonderful, Conservative people are thinking about primarying Marjorie in her District of Georgia, that they too are fed up with her and her antics and, if the right person runs, they will have my Complete and Unyielding Support.”
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Will new Epstein emails hurt Trump?
Greene: Trump’s fight to stop files ‘astonishing’
Around an hour later, Ms Greene responded on X to say “President Trump just attacked me and lied about me”, and shared text messages to him and a White House aide about releasing information on the deceased pedophile financier Jeffrey Epstein.
“Of course he’s coming after me hard to make an example to scare all the other Republicans before next weeks vote to release the Epstein files,” she added on social media.
“It’s astonishing really how hard he’s fighting to stop the Epstein files from coming out that he actually goes to this level.”
Read more: Why this is dangerous terrain for Trump
Marjorie Taylor Greene was an ardent supporter of MAGA and became a Republican Congresswoman in 2021. File pic: AP
She then said “most Americans wish he would fight this hard to help the forgotten men and women of America… that’s what I voted for”.
“I have supported President Trump with too much of my precious time, too much of my own money, and fought harder for him even when almost all other Republicans turned their back and denounced him,” she added.
“But I don’t worship or serve Donald Trump… I remain the same today as I’ve always been and I will continue to pray this administration will be successful because the American people desperately deserve what they voted for.”
Watch Sky’s Martha Kelner’s encounter with Greene from earlier this year…
Earlier this week, Mr Trump accused the MAGA loyalist of “catering to the other side” after she criticised his focus on foreign policy, which she described as “America Last”.
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Trump rebukes MAGA ally over foreign policy
Epstein took his own life in prison in 2019 while awaiting a trial for sex trafficking charges and was accused of running a “vast network” of underage girls for sex. He pleaded not guilty.
Following a conviction for soliciting prostitution from a minor in 2008, he was registered as a sex offender.
It comes after Democrats on the House Oversight Committee published several emails, which they said “raises questions about Trump and Epstein’s relationship, Trump’s knowledge of Epstein’s crimes”, and the president’s relationship to Epstein’s victims.
Mr Trump has consistently denied knowledge of Epstein’s crimes and called claims linking him to the financier a “hoax”.
Read more on Jeffrey Epstein:
Ghislaine Maxwell ‘wants Trump to commute sentence’
What Epstein’s right-hand woman said about Trump and Andrew
The White House also said the “selectively leaked emails” were an attempt to “create a fake narrative to smear President Trump”.
Republicans retaliated by releasing more than 20,000 pages from Epstein’s files and accusing Democrats of “cherry-picking” their documents.
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