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Rishi Sunak has said Jeremy Hunt will still be chancellor at the next election after criticism his number two did not have enough economic vision.

The prime minister, for the first time, confirmed to Sky News that Mr Hunt will remain chancellor when the next general election comes around in January 2025.

“Of course,” Mr Sunak said when asked by Sky News’ deputy political editor Sam Coates.

Mr Hunt was criticised by businesses following a keynote speech in January about the government’s plan to boost economic growth as they complained it offered no new policies.

The chancellor also signalled the upcoming spring budget, to be announced by him on Wednesday, will not contain big tax cuts – despite calls from some Tory MPs – because of the need to focus on curbing high inflation.

But Mr Sunak insisted the budget will deliver on the three economic pledges he set out when he became prime minister: to halve inflation, grow the economy and reduce debt.

“It’s important to get public sector pay settlements right, important to reduce debt to make sure we’re not passing on burdens for the next generation,” he said.

“It also ensures we’re reducing inflation and keeping interest rates low.”

Read more:

What to look our for in Jeremy Hunt’s first budget
UK to spend extra £5bn on military to counter China and Russia threats

Prime Minister Rishi Sunak on the deck of the decommissioned and now museum, USS Midway Aircraft Carrier in San Diego, during his visit to the US for meetings with US President Joe Biden and Prime Minister of Australia Anthony Albanese as part of Aukus, a trilateral security pact between Australia, the UK, and the US. Picture date: Sunday March 12, 2023.
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Mr Sunak on the deck of the decommissioned and now museum, USS Midway Aircraft Carrier in San Diego

Mr Sunak acknowledged that recent high interest rates have caused “damage” for banks, in reference to the UK arm of Silicon Valley Bank having to be rescued on Monday after its parent company in the US, SVB America, collapsed.

The PM said the government – and Mr Hunt – are focused on growing the economy in “the best way to provide jobs for people around the country”.

“That’s what the chancellor is going to deliver on Wednesday, what the government will deliver,” he added.

“People should be confident we’ve already delivered, we’ve brought about enormous improvement since I took over as prime minister last year and we’ll continue to deliver.”

Mr Sunak was speaking in San Diego where he is meeting US President Joe Biden and Australian PM Anthony Albanese as part of the AUKUS project to develop nuclear-powered submarines for the Australian navy.

He said the programme was not purely in reaction to the rising “systemic challenge” from China.

The PM told Sky News: “This partnership represents something much bigger.

“We’re building the next generation of attack submarines with world-beating technology that we will be able to share with each other.

“Not just in the Pacific, but the Atlantic and around the world, it’ll improve security around the world and provide jobs.”

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The fight for the Arctic – where climate change is giving Russia room to manoeuvre

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The fight for the Arctic - where climate change is giving Russia room to manoeuvre

The twin threats of climate change and Russian malign activity in the Arctic must be taken “deadly seriously,” David Lammy has warned.

Sky News joined him on the furthest reaching tour of the Arctic by a British foreign secretary.

We travelled to Svalbard – a Norwegian archipelago that is the most northern settled land on Earth, 400 miles from the North Pole.

It is at the heart of an Arctic region facing growing geopolitical tension and feeling the brunt of climate change.

Mr Lammy told us the geopolitics of the region must be taken “deadly seriously” due to climate change and “the threats we’re seeing from Russia”.

We witnessed the direct impact of climate change along Svalbard’s coastline and inland waterways. There is less ice, we were told, compared to the past.

Foreign Secretary David Lammy and Norway's Foreign Minister Barth Eide view the melting Blomstrandbreen glacier during a boat trip on Kongsfjorden, an inlet on the west coast of Spitsbergen, during his visit to Svalbard, Norway. Stefan Rousseau/PA Wire
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David Lammy and Norway’s Foreign Minister Barth Eide view the melting Blomstrandbreen glacier. Pic: PA

The melting ice is opening up the Arctic and allowing Russia more freedom to manoeuvre.

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“We do see Russia’s shadow fleet using these waters,” Mr Lammy said. “We do see increased activity from submarines with nuclear capability under our waters and we do see hybrid sabotage of undersea cables at this time.”

In Tromso, further south, the foreign secretary was briefed by Norwegian military commanders.

Foreign Secretary David Lammy at SvalSat, a satellite ground station which monitors climate, on Plataberget near Longyearbyen in Svalbard, during his visit to Norway. Picture date: Thursday May 29, 2025. Photo credit should read: Stefan Rousseau/PA Wire
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The foreign secretary visiting SvalSat, a satellite ground station which monitors climate in Svalbard. Pic: PA

Vice Admiral Rune Andersen, the Chief of Norwegian Joint Headquarters, told Sky News the Russian threat was explicit.

“Russia has stated that they are in confrontation with the West and are utilising a lot of hybrid methods to undermine Western security,” he said.

But it’s not just Vladimir Putin they’re worried about. Norwegian observers are concerned by US president Donald Trump’s strange relationship with the Russian leader too.

Vladimir Putin chairs a security council meeting at the Kremlin. Pic: AP
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Norwegian observers are concerned about the Russian leader – and Trump being ‘too soft’ on him. Pic: AP

Karsten Friis, a Norwegian defence and security analyst, told Sky News: “If he’s too soft on Putin, if he is kind of normalising relations with Russia, I wouldn’t be surprised.

“I would expect Russia to push us, to test us, to push borders, to see what we can do as Europeans.”

Changes in the Arctic mean new challenges for the NATO military alliance – including stepping up activity to deter threats, most of all from Russia.

More from Sky News:
Trump doubles down on Putin criticism
Why Russian troops are gathering near ‘fortress city’

In Iceland, we toured a NATO airbase with the foreign secretary.

There, he said maintaining robust presence in the Arctic was essential for western security.

“Let’s be clear, in this challenging geopolitical moment the high north and the Arctic is a heavily contested arena and we should be under no doubt that NATO and the UK need to protect it for our own national security.”

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This is also about distracting Russia, drawing away resources that could have been used in the war in Ukraine and deterring it in the future.

Because the more Arctic opens up, the more this once pristine wilderness is becoming the arena of national rivalry and potentially conflict.

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‘What did they do to be burned and bombed?’: Charity calls on UK to offer Gaza children life-saving treatment

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'What did they do to be burned and bombed?': Charity calls on UK to offer Gaza children life-saving treatment

A British charity has written to the prime minister and foreign secretary, urging them to allow seriously ill children from Gaza into the UK to receive life-saving medical treatment.

Warning: This article contains images readers may find distressing

The co-founder of Project Pure Hope told Sky News it was way past the time for words.

“Now, we need action,” Omar Dinn said.

He’s identified two children inside Gaza who urgently need help and is appealing to the UK government to issue visas as a matter of urgency.

Israel-Gaza latest: Netanyahu reportedly accepts US ceasefire plan

Britain has taken only two patients from Gaza for medical treatment in 20 months of Israeli bombardment.

A boy stands in ruins in Gaza
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Children are among the bulk of the casualties in Gaza

“Most of the people affected by this catastrophe that’s unfolding in Gaza are children,” he continued. “And children are the most vulnerable.

“They have nothing to do with the politics, and we really just need to see them for what they are.

“They are children, just like my children, just like everybody’s children in this country – and we have the ability to help them.”

Gaza: Fight for Survival Sky News teaser/promo image

Sky News has been sent video blogs from British surgeons working in Gaza right now which show the conditions and difficulties they’re working under.

They prepare for potential immediate evacuation whilst facing long lists, mainly of children, needing life-saving emergency treatment day after day.

Dr Victoria Rose in Gaza
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Dr Victoria Rose is a British surgeon working in southern Gaza’s last remaining hospital

Dr Victoria Rose told us: “Every time I come, I say it’s really bad, but this is on a completely different scale now. It’s mass casualties. It’s utter carnage.

“We are incapable of getting through this volume. We don’t have the personnel. We don’t have the medical supplies. And we really don’t have the facilities.

“We are the last standing hospital in the south of Gaza. We really are on our knees now.”

One of her patients is three-year-old Hatem, who was badly burned when an Israeli airstrike hit the family apartment.

Manal with her one-year-old son Karam
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Karam, aged one, has a birth defect that could be easily fixed with surgery


His pregnant mother and father were both killed, leaving him an orphan. He has 35 percent burns on his small body.

“It’s a massive burn for a little guy like this,” Dr Rose says. “He’s so adorable. His eyelids are burnt. His hands are burnt. His feet are burnt.”

Hatem’s grandfather barely leaves his hospital bedside. Hatem Senior told us: “What did these children do wrong to suffer such injuries? To be burned and bombed? We ask God to grant them healing.”

Hatem, aged three, in a hospital bed in Gaza
Hatem's grandfather at his bedside
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Hatem Senior


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The second child identified by the charity is Karam, who, aged one, is trying to survive in a tent in deeply unhygienic surroundings with a protruding intestine.

He’s suffering from a birth defect called Hirschsprung disease, which could be easily operated on with the right skills and equipment – unavailable to him in Gaza right now.

Read more:
Gaza doctor’s nine children killed
How the new Gaza aid rollout collapsed

Manal with her one-year-old son Karam
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Karam, aged one, has a birth defect that could be easily fixed with surgery


Karam’s mother Manal told our Gaza camera crew: “No matter how much I describe how much my son is suffering, I wouldn’t be able to describe it enough. I swear I am constantly crying.”

Children are among the bulk of casualties – some 16,000 have been killed, according to the latest figures from local health officials – and make up the majority of those being operated on, according to the British surgical team on the ground.

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How the rollout of new Gaza aid system collapsed into chaos

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