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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.”

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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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UK

Nigel Farage says he ‘can’t be pushed or bullied’ after Elon Musk said Reform needs new leader

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Nigel Farage says he 'can't be pushed or bullied' after Elon Musk said Reform needs new leader

Nigel Farage has told Sky News he “can’t be pushed or bullied” by anybody after Elon Musk said the Reform MP “doesn’t have what it takes” to lead his party. 

In an interview with Sky’s political correspondent Ali Fortescue, Mr Farage said he has spoken with the billionaire owner of X since his criticism on 5 January, when Mr Musk said: “The Reform Party needs a new leader. Farage doesn’t have what it takes.”

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Asked if the pair are still friends, Mr Farage said: “Of course we’re friends. He just says what he thinks at any moment in time.”

He added he has “been in touch” with Mr Musk, though wouldn’t divulge what they had discussed.

“Look, he said lots of supportive things. He said one thing that wasn’t supportive. I mean, that’s just the way it is,” Mr Farage said.

Nigel Farage and Reform UK treasurer Nick Candy with Elon Musk. Pic: PA
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Musk and Farage met in December. Pic: PA

Asked if he was afraid to criticise the tech mogul, the Clacton MP said the situation was “the opposite”, and he openly disagreed with Mr Musk on his views on far-right activist Tommy Robinson.

Mr Farage said: “What he [Musk] was saying online was that effectively Tommy Robinson was a political prisoner and I wouldn’t go along with that.

“If I had gone along with that, he wouldn’t have put out a tweet that was against me.

“By the way, you know, I can’t be pushed or bullied or made to change by anybody.

“I stick to what I believe.”

Mr Musk has endorsed Robinson and claimed he was “telling the truth” about grooming gangs, writing on X: “Free Tommy Robinson”.

But Mr Farage said that Robinson, who is serving an 18-month jail term for contempt of court, isn’t welcome in Reform UK and neither are his supporters.

He said: “If people within Reform think Tommy Robinson should be a member of Reform and play a central role in Reform, that disagreement is absolutely fundamental.

“I’ve never wanted to work with people who were active in the BNP. I’ve made that clear right throughout the last decade of my on/off political career. So that’s what the point of difference is.”

Despite their disagreement, Mr Farage said he is confident Mr Musk will continue to support Reform and “may well” still give money to it.

The entrepreneur has previously spoken positively about Reform UK and there have been suggestions he could make a multi-million-pound donation in its favour.

Devolution plans ‘denial of democracy’

Mr Farage was speaking from Reform’s South East of England Conference, one of a series of regional events aimed at building up the party’s support base.

Elsewhere in the interview, he hit out at the Labour government’s devolution plans which could see some local elections scheduled for May postponed.

This would apply when councils seek permission to reorganise, so that smaller district authorities merge with other nearby ones to give them more sway over their area.

Mr Farage, who is hoping to make gains in the spring contests, claimed the plans are not about devolution but about “elections being cancelled”.

“I thought only dictators cancelled elections. This is unbelievable and devolution or a change to local government structures is being used as an excuse,” he said.

Reform UK leader Nigel Farage speaking during the Reform UK East of England conference at Chelmsford City Racecourse. Picture date: Saturday January 4, 2025.
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Reform UK leader Nigel Farage earlier this month. Pic: PA

He claimed Tory-controlled councils are “grabbing it like it’s a life belt”, because they fear losing seats to Reform.

“It’s an absolute denial of democracy,” he added.

Mr Farage was also asked why many Reform members don’t like to speak on camera about why they support his party.

He said he did not accept there was a toxicity associated with Reform and claimed there was “institutional bias against anybody that isn’t left of centre”.

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Police search for missing sisters last seen three days ago near Aberdeen river

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Police search for missing sisters last seen three days ago near Aberdeen river

Specialist search teams, police dogs and divers have been dispatched to find two sisters who vanished in Aberdeen three days ago.

Eliza and Henrietta Huszti, both 32, were last seen on CCTV in the city’s Market Street at Victoria Bridge at about 2.12am on Tuesday.

The siblings were captured crossing the bridge and turning right onto a footpath next to the River Dee in the direction of Aberdeen Boat Club.

Henrietta Huszti. Pic: Police Scotland
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Henrietta Huszti. Pic: Police Scotland

Eliza Huszti. Pic: Police Scotland
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Eliza Huszti. Pic: Police Scotland

Police Scotland has launched a major search and said it is carrying out “extensive inquires” in an effort to find the women.

Chief Inspector Darren Bruce said: “Local officers, led by specialist search advisors, are being assisted by resources including police dogs and our marine unit.”

Aberdeenshire Drone Services told Sky News it has offered to help in the search and is waiting to hear back from Police Scotland.

The Huszti sisters. Pic: Police Scotland
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CCTV of the sisters. Pic: Police Scotland

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The sisters, from Aberdeen city centre, are described as slim with long brown hair.

Police said the Torry side of Victoria Bridge where the sisters were last seen contains many commercial and industrial units, with searches taking place in the vicinity.

The force urged businesses in and around the South Esplanade and Menzies Road area to review CCTV footage recorded in the early hours of Tuesday in case it captured anything of significance.

Drivers with relevant dashcam footage are also urged to come forward.

CI Bruce added: “We are continuing to speak to people who know Eliza and Henrietta and we urge anyone who has seen them or who has any information regarding their whereabouts to please contact 101.”

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UK

Britain’s gas storage levels ‘concerningly low’ after cold snap, says owner of British Gas

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Britain's gas storage levels 'concerningly low' after cold snap, says owner of British Gas

Britain’s gas storage levels are “concerningly low” with less than a week of demand in store, the operator of the country’s largest gas storage site said on Friday.

Plunging temperatures and high demand for gas-fired power stations are the main factors behind the low levels, Centrica said.

The UK is heavily reliant on gas for its home heating and also uses a significant amount for electricity generation.

As of the 9th of January 2025, UK storage sites are 26% lower than last year’s inventory at the same time, leaving them around half full,” Centrica said.

“This means the UK has less than a week of gas demand in store.”

The firm’s Rough gas storage site, a depleted field off England’s east coast, makes up around half of the country’s gas storage capacity.

Gas storage was already lower than usual heading into December as a result of the early onset of winter.

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Combined with stubbornly high gas prices, this has meant it has been more difficult to top up storage over Christmas.

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