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The UK’s economic outlook will be “challenging” for the next two years, Jeremy Hunt says.

The chancellor presented his autumn statement 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 the public finances.

But the independent Office for Budget Responsibility (OBR) 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: Tax burden reaches highest level since WWII

Speaking to Sky News, Mr Hunt said it was “a difficult time for everyone” but tax hikes and spending cuts are needed to get the economy “on an even keel”.

“Over the next two years it is going to be challenging,” he said.

“But I think people want a government that is taking difficult decisions, has a plan that will bring down inflation, stop those big rises in the cost of energy bills and the weekly shop, and at the same time is taking measures to get through this difficult period.”

More on Autumn Statement 2022

The chancellor insisted that his autumn statement is a “very Conservative package” following criticism from some Tory MPs.

“The Office for Budgetary Responsibility said yesterday that what we’re doing is actually recession shallow, it’s saving jobs,” he said.

“But what I would say to my Conservative colleagues is there is nothing Conservative about spending money that you haven’t got, there is nothing Conservative about not tackling inflation, there is nothing Conservative about ducking difficult decisions that put the economy on track.

“And we’ve done all of those things and that is why this is a very Conservative package to make sure we sort out the economy.

“None of this is easy, but it’s the right thing to do.”

Former business secretary Jacob Rees-Mogg accused the chancellor of taking the “easy option” in Thursday’s autumn statement rather than bearing down harder on public spending.

He said the country needed lower taxes to drive up growth.

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Hunt questioned over autumn statement

Probed on how it can be fair that pensions will go up by inflation when public sector workers will not see pay increase alongside prices, Mr Hunt said the elderly do not have the ability to work more to improve their take home pay.

Well, I think the truth is, first of all, pensioners have retired. They don’t have the ability to work more or work longer hours in the way that people of working age do,” the chancellor said.

“But I think it is wrong to say that only the poorest pensioners are feeling the squeeze at the moment.

“I think this is something that’s affecting everyone and I think it’s right.

“Having made that promise to pensioners in our manifesto that we would have this triple lock, I think this is exactly the kind of tough time that people want it to kick in.

“And so that’s why I think it’s the right thing to do.”

The chancellor added: “We’re not pretending that this isn’t going to be a difficult time for everyone. But what we have is a plan.”

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’12 weeks of Conservative chaos’ – Rachel Reeves

In yesterday’s autumn statement, Mr Hunt announced economic policies which the government hopes will help to rebalance the nation’s finances after the economic turmoil which followed former chancellor Kwasi Kwarteng’s mini-budget.

These included:

• Income tax thresholds being frozen for two more years until April 2028

• Top level of income tax now being paid on earnings over £125,140 instead of £150,000

• Pensions triple lock will remain – with pensioners to see a 10.1% increase in weekly payments in line with inflation

• Benefits to also rise in line with inflation – by 10.1%

• Energy cap to rise from £3,000 a year to £2,500 a year beyond April

• UK minimum wage to rise from £9.50 to £10.42 an hour for those aged over 23

• Windfall tax on oil giants’ profits to rise from 25% to 35% and be extended by two years until March 2028

• Additional cost of living payments of £900 for those on benefits and £300 for pensioners

• Spending on public services in England to rise slower than planned

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As a result of 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 election, due in 2024.

Treasury analysis suggests around 55% of households will be worse off as a result of the measures.

Read more: Jeremy Hunt’s autumn statement had all the hallmarks of a Labour budget

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”.

Ms Reeves told Sky News she is “really worried about what’s going to happen to people’s living standards next year from April” and said a Labour government would have done more “to alleviate some of that pressure on the ordinary working person”.

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What does the autumn statement mean?

As Mr Hunt took part in the broadcast round Friday morning, economic think-tank the Resolution Foundation published analysis suggesting his autumn statement’s tax rises would deliver a 3.7% income hit to typical households.

The foundation said the statement had piled further pressure on the “squeezed middle” and that the focus on “stealthy” tax threshold freezes to raise revenue would extend far beyond high earners.

The think tank also found that the budget would reverse much of the government’s levelling up agenda.

“The £15 billion of cuts to capital investment announced yesterday will undo 80% of the remaining increases in public investment announced by previous chancellor Rishi Sunak, which underpinned the levelling-up agenda,” it said.

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UK stops some intelligence sharing with US over boat strikes in Caribbean

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UK stops some intelligence sharing with US over boat strikes in Caribbean

The UK has stopped sharing some intelligence with the US on suspected drug trafficking boats in the Caribbean following concerns over America’s strikes against the vessels.

The US has reported carrying out 14 strikes since September on boats near the Venezuelan coast.

The death toll from the US attacks in the Pacific and the Caribbean Sea has risen to more than 70, as the US escalates a military build-up in the Caribbean Sea.

Downing Street did not deny reporting by CNN that the UK is withholding intelligence from the US to avoid being complicit in US military strikes it believes may breach international law.

Britain, which controls several territories in the Caribbean where it bases intelligence assets, has long assisted the US in identifying vessels suspected of smuggling narcotics based on intelligence gathered in its overseas territories in the region.

The USS Gravely destroyer arrives to dock for military exercises in Port-of-Spain, Trinidad and Tobago on 26 October (AP Photo/Robert Taylor)
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The USS Gravely destroyer arrives to dock for military exercises in Port-of-Spain, Trinidad and Tobago on 26 October (AP Photo/Robert Taylor)

That information helped the US Coast Guard locate the ships, seize the drugs and detain their crews, CNN cited sources as saying.

But since the Trump administration started carrying out strikes on alleged drug trafficking boats in early September, UK officials have become concerned their intelligence may be used to acquire targets for the attacks they believe may be illegal.

The intelligence-sharing pause began more than a month ago, CNN reported, quoting sources as saying Britain shares UN’s human rights chief Volker Turk’s assessment that the strikes amount to extrajudicial killing.

The reports could provide an awkward backdrop for a meeting between Foreign Secretary Yvette Cooper and her US counterpart Marco Rubio, expected on Wednesday at the G7 foreign ministerial summit in Canada.

A Number 10 spokesman did not deny the move when asked about the pause in intelligence sharing.

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‘We will treat them EXACTLY how we treated al Qaeda’ – US carries out another lethal strike in Caribbean

“We don’t comment on security or intelligence matters,” the official said in response to repeated questions.

“The US is our closest partner on defence, security and intelligence, but in line with a long-standing principle, I’m just not going to comment on intelligence matters.”

He added that “decisions on this are a matter for the US” and that “issues around whether or not anything is against international law is a matter for a competent international court, not for governments to determine”.

A Pentagon official told CNN the department “doesn’t talk about intelligence matters”.

On Monday, US secretary of war Pete Hegseth said on X that the previous day, “two lethal kinetic strikes were conducted on two vessels operated by Designated Terrorist Organizations”.

He said: “These vessels were known by our intelligence to be associated with illicit narcotics smuggling, were carrying narcotics, and were transiting along a known narco-trafficking transit route in the Eastern Pacific.

“Both strikes were conducted in international waters and 3 male narco-terrorists were aboard each vessel. All 6 were killed. No U.S. forces were harmed.”

The United Nations human rights chief has described the US strikes on alleged drug dealers off the coast of South America as “unacceptable” and a violation of international human rights law.

Venezuela says they are illegal, amount to murder and are aggression against the sovereign South American nation.

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Hundreds of Russian troops roll into key frontline Ukrainian city ‘Mad Max-style’, video appears to show

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Hundreds of Russian troops roll into key frontline Ukrainian city 'Mad Max-style', video appears to show

Hundreds of Russian troops have pushed deeper into eastern Ukrainian cities ‘Mad Max-style’, video released by the Russians appears to show.

The troops were seen rolling through the fog on motorbikes, with some on the roofs of battered cars and vans, apparently into the city of Pokrovsk, as Russia said its forces had also pressed further into Kupiansk on Tuesday.

Ukraine has acknowledged the presence of the troops on its territory, although Reuters news agency says that when the video was shot is yet to be verified.

The fight to gain hold of Pokrovsk, a strategic point on a large road and rail artery in the Donetsk region, has been raging for well over a year, in Vladimir Putin’s push to gain control of the whole of Ukraine’s industrial east.

Situation on the battlefield
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Situation on the battlefield

The Donbas region comprises the neighbouring regions of Luhansk and Donetsk.

Ukraine’s military said around 300 Russian soldiers were now inside Pokrovsk and that Moscow had intensified efforts to get more troops in over the past few days – using dense fog for cover from drones.

It said Ukrainian forces were fighting Russian groups in the city.

Russian soldiers enter Pokrovsk in this screen grab obtained from a social media video released on 10 November, 2025. Pic: Reuters
Image:
Russian soldiers enter Pokrovsk in this screen grab obtained from a social media video released on 10 November, 2025. Pic: Reuters

Moscow says taking Pokrovsk, dubbed “the gateway to Donetsk” by Russian media, would give it a platform to push north towards the two largest remaining Ukrainian-controlled cities in the Donetsk region – Kramatorsk and Sloviansk.

Posting on X on Tuesday, Ukraine’s President Volodymyr Zelenskyy said: “The front: our main focus right now is on the Pokrovsk direction and the Zaporizhzhia region, where the Russians are increasing the number and scale of assaults.

“The situation there remains difficult, in part because of weather conditions that favor the attacks. But we continue to destroy the occupier, and I thank every one of our units, every warrior involved in defending Ukraine’s positions.”

Destruction in Pokrovsk on 1 November. Pic: AP
Image:
Destruction in Pokrovsk on 1 November. Pic: AP

Moscow and Kyiv have given different accounts of the battle for Pokrovsk. Moscow has for days said the city is surrounded, while Kyiv has denied Moscow controls the city and said on Monday that it was still able to supply neighbouring Myrnohrad.

Moscow has been threatening Pokrovsk for more than a year, attempting to surround it and threaten supply lines, rather than use the deadly frontal assaults it used to take the city of Bakhmut in 2023.

Russian war bloggers published a video on Tuesday showing what they said were Russian forces entering Pokrovsk along a road enveloped in fog, in what some Telegram users said looked like scenes from the Mad Max action film series, many of which are set in a post-apocalyptic landscape.

The date of the footage has not been independently verified.

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Satellite image shows armoured vehicles in the eastern Ukrainian city of Pokrovsk, Donetsk region, on 3 November, 2025. Pic: Reuters
Image:
Satellite image shows armoured vehicles in the eastern Ukrainian city of Pokrovsk, Donetsk region, on 3 November, 2025. Pic: Reuters

Russia said it had taken 256 buildings and that Moscow’s forces were actively advancing to the northwest and east of Pokrovsk as well as around the railway station.

Russia has executed a pincer movement around the city and was close to closing it, open-source battlefield maps from both sides show, though Kyiv has counter-attacked around the town of Dobropillia.

Ukraine’s top military commander, Oleksandr Syrskyi, said in an interview with the New York Post that Russia was concentrating some 150,000 troops in a push to capture Pokrovsk, with mechanised groups and marine brigades forming part of this drive.

Russia said its forces had taken full control of the eastern part of Kupiansk in Ukraine’s Kharkiv region. A Russian commander, who gave his call sign as Hunter, said his troops had taken control of an oil depot on the eastern edge of Kupiansk.

In a video statement issued by Russia’s defence ministry, he said his forces had also taken control of a series of train stops along the railway to Kupiansk Vuzlovyi, a settlement around 6km (4 miles) south of the centre of Kupiansk itself.

Russia also said its troops had taken control of the settlement of Novouspenivske in the southeastern Zaporizhzhia region.

Ukraine withdrew from some villages, including Novouspenivske, due to intense attacks involving more than 400 artillery strikes per day, RBC-Ukraine news agency cited a military spokesperson as saying.

Russia’s military says it now controls more than 19% of Ukraine, or some 116,000 square km (44,800 square miles), up from 18% nearly three years ago, according to Ukrainian maps tracking frontline changes.

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Dozens of protesters storm COP30 venue in Brazil

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Dozens of protesters storm COP30 venue in Brazil

Dozens of protesters have forced their way into the COP30 climate summit venue and clashed with security guards at the entrance.

Shouting angrily, the protesters demanded access to the UN compound where thousands of delegates from nations around the world are attending this year’s UN climate summit.

Some waved flags with slogans calling for land rights or carried signs, saying “our land is not for sale”.

An indigenous leader from the Tupinamba community near the lower reaches of the Tapajos River in Brazil told Reuters that they were upset about ongoing development in the forest.

“We can’t eat money,” said Gilmar, who uses only one name.

Security guards pushed the protesters back and used tables to barricade the entrance.

A Reuters witness saw one security guard being rushed away in a wheelchair while clutching his stomach.

Another guard with a fresh cut above his eye told the news agency he had been hit in the head by a heavy drumstick thrown from the crowd. Security confiscated several batons.

The protesters dispersed shortly after the clash.

They had been in a group of hundreds who marched to the venue in the Amazon city of Belem.

Security guards later allowed delegates to exit the venue, having earlier asked them to move back inside until the area was clear.

COP30, which started on 10 November and ends on 21 November, comes at a precarious time for climate action.

The conference has been met with controversy over its location in the Brazilian city, on the outskirts of the Amazon rainforest.

Brazil’s President Luiz Inácio Lula da Silva has highlighted Indigenous communities as key players in COP30 negotiations.

Dozens of Indigenous leaders arrived earlier this week by boat to take part in the talks and demand more say in how forests are managed.

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