The government has announced it will keep its cap on energy prices for a further three months as part of Jeremy Hunt’s first full budget.
The Energy Price Guarantee (EPG) – which limits the unit cost of gas and electricity that people pay – had been expected to rise to £3,000 next month, meaning another hike in household bills.
But just hours before the chancellor was due to deliver his statement to Parliament, the Treasury confirmed the figure would now remain at £2,500 until June, saying the typical home would save £160 on energy bills as a result.
Prime Minister Rishi Sunak said the extension of the EPG – which is thought will cost £3bn – would “give people some peace of mind”.
Mr Hunt added: “With energy bills set to fall from July onwards, this temporary change will bridge the gap and ease the pressure on families, while also helping to lower inflation too.”
However, the energy bills support scheme, which saw households getting around £66 taken off their bills each month, will still come to an end in March.
More on Budget
Related Topics:
Labour’s shadow chief secretary to the Treasury, Pat McFadden, welcomed the announcement, saying his party had been calling for it for some time.
“I don’t mind if we lead the way as long as they do the right thing,” he told Sky News. “And I think it’s important to do that because the cost of living crisis has not gone away.
Advertisement
“People are really struggling to pay their bills and as things stood, those bills were scheduled to go up another £500 a year in a couple of weeks time, so I think it’s right to extend that guarantee.”
But his colleague, shadow climate secretary Ed Miliband, criticised the government for “refusing to implement a proper windfall tax to make the oil and gas giants pay their fair share”, adding: “That means they are leaving billions on the table that could be used to help families with the cost of living.”
The SNP’s economy spokesman, Stewart Hosie, also said the policies did not go far enough, calling the chancellor “truly pathetic” for not keeping the energy bills support scheme.
“With energy companies making record profits, and the wholesale price of gas falling, there is no excuse for this shameful Tory decision, which will hammer household incomes and push even more families into poverty, hardship and debt,” he added.
And the Liberal Democrats echoed his criticism with a call for further bill cuts.
Their economic spokeswoman, Sarah Olney, said: “Instead of a sticking plaster for another three months, we need meaningful action now.”
Please use Chrome browser for a more accessible video player
0:46
Treasury committee chair expects some ‘generous measures’ in budget
The move is the latest early reveal from Mr Hunt’s budget, with the chancellor expected to detail his plans in full from 12.30pm – after Prime Minister’s Questions.
Sky News also understands he will promise to provide 30 hours of childcare a week to parents of one and two-year-olds – at a cost of £4bn for the Treasury – and give a further cash injection to the sector to increase the availability of existing free childcare for three to four-year-olds.
But Labour MP Stella Creasy said the policy was “economically illiterate” as it would “stoke up demand without producing the supply“.
She told Sky News: “I welcome the fact that childcare now on the political agenda.
“But I really worry this announcement, if it’s not backed up with the money needed to actually properly fund these places and properly expand the places – bear in mind that half of local authorities tell us they don’t have the places they need at the moment to meet demand – then this government could end up crashing the childcare system just as they crashed the economy.”
Plans are also being considered to loosen staff-to-child ratios for two-year-olds, which could make the cost of childcare a little cheaper – though some in the sector have warned against it, saying it could undermine the quality of care.
Ms Creasy said: “I would love to have a conversation with the chancellor after he spent a day looking after five two-year-olds on his own all day, because I think most parents and indeed most providers wouldn’t think that was a good idea.”
Please use Chrome browser for a more accessible video player
0:42
Greening: Childcare funding ‘good news’ for parents
The policies fit into what is expected to be the wider theme of the budget – encouraging people back to work.
In that vein, Mr Hunt is expected to raise the lifetime allowance for pension savings from £1m to £1.8m – a record level – and could also lift the annual tax-free allowance for pensions from £40,000 to £60,000 to incentivise professionals out of retirement.
There could also be changes to aid long-term sick, disabled people and benefit claimants to return to work.
But there could be upset from some of his own backbenchers as the chancellor is not expected to meet Tory demands for tax cuts, and will keep the planned rise in corporation tax from 19p to 25p.
However, former Conservative chancellor Lord Lamont warned against a rebellion, saying Mr Hunt had “done a good job” to “restore confidence” in the economy after Liz Truss’ disastrous mini-budget last year sent the markets into turmoil.
He told Sky News: “I think it’s very important that that is not disturbed by people being unhappy about no tax cuts today.
“I don’t think there are going to be tax cuts today. I don’t think there should be tax cuts today. I don’t think you’re going to [have] tax cuts when you have 10% inflation.
“You only deal with inflation by slowing in a controlled way. The economy dies. So it’s not the day or the time for tax cuts.”
During his speech, Mr Hunt is expected to reference the “difficult decisions” taken to stabilise the markets following the so-called mini-budget – the event that saw him brought in to reverse policies and calm the markets.
“Today, we deliver the next part of our plan: a budget for growth,” Mr Hunt will say.
“Not just growth from emerging out of a downturn. But long-term, sustainable, healthy growth that pays for our NHS and schools, finds good jobs for young people, provides a safety net for older people… all whilst making our country one of the most prosperous in the world.”
Four teenagers and a 45-year-old man have been found guilty of murdering two boys, aged 15 and 16, who were attacked with machetes in a case of mistaken identity.
The convictions follow a five-week trial at Bristol Crown Court.
The jury heard how Max Dixon and Mason Rist were killed in a case of mistaken identity on 27 January, after being wrongly identified as being responsible for a house attack in the Hartcliffe area of the city earlier that evening.
Antony Snook, 45, Riley Tolliver, 18, and three boys aged 15, 16 and 17 were all on trial each charged with two counts of murder.
As the jury foreman returned the guilty verdicts, none of the defendants showed any reaction from the dock, as they sat impassively and stared straight ahead.
The fatal stabbings in Knowle West lasted just 33 seconds – with both boys suffering what the court heard were “unsurvivable” injuries and “instant severe blood loss”.
Both died in hospital in the early hours of 28 January.
Detective Superintendent Gary Haskins, the case’s senior investigating officer from Avon and Somerset Police, told Sky News that Max and Mason had nothing to do with the house attack.
“Those boys were not known to their attackers, they were best friends, two beautiful children just going about their lives and attacked for no reason whatsoever,” he said.
Much of the prosecution’s case was based on CCTV and doorbell videos, including a camera on Mason’s own house which captured footage of the knife attack against him.
The pair were seen leaving Mason’s home at around 11.15pm and were going for a pizza.
Prosecutor Ray Tully KC told the jury that the boys were set upon by the group who had been travelling in Snook’s Audi Q2.
He said the group were “out for revenge”, “acting as a pack” to hunt down those responsible and “tooled up” with fearsome weapons.
After the attackers fled, Max and Mason were left bleeding in the street.
The investigation involved more than 230 police officers and staff – with thousands of pieces of evidence analysed.
Hundreds mourned victims at school
The teenage victims were in year 11 together at the Oasis Academy John Williams secondary school and were preparing to sit their GCSEs this summer.
The school’s headteacher Victoria Boomer-Clark told Sky News that everyone rallied to support fellow pupils and staff.
She said: “After the boys were tragically murdered, for us first and foremost we were thinking about the families and how they were coping with the absolute tragedy and shock of that.
“I can remember trying to prepare for that Monday morning and my memories now are how exceptionally strong our young people are and how we have a real sense of community.
“Unbeknownst to us the young people had arranged to hold a vigil on the playground during breaktime on that first Monday. We had hundreds of young people and staff coming together in silence.”
Ms Boomer-Clark said the boys would have attended school prom this summer.
“We had a wall that was lit up in red for Mason and Liverpool football club and a wall in blue for Park Knowle Football Club,” she said. “The year group came together and supported each other through it.”
Detective had never seen ‘horrific’ weapons before
Detective Superintendent Gary Haskins said: “The weapons used in the attack on Mason and Max were simply horrific.
“I’ve been a detective for many, many years and I’ve had the misfortune of investigating some serious offences.
“In all my service I’ve not seen a weapon like the one we saw used on those two boys.
“There is no place for a weapon of that type in society for any reason whatsoever.”
The detective praised the boy’s families, who attended court throughout the trial.
He added: “I’m humbled by the families involved in this investigation. They’ve been at court every day, they’ve seen things at court that no parent should ever be exposed to. They saw the attacks on their children, but they maintain their dignity, their courage and their love for their family.
“How can you replace what they’ve lost? They’ve lost two beautiful sons, and I can only hope that the verdicts will bring some form of closure. It will never close completely.”
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
The UK economy grew by 0.1% between July and September, according to the Office for National Statistics (ONS).
However, despite the small positive GDP growth recorded in the third quarter, the economy shrank by 0.1% in September, dragging down overall growth for the quarter.
The growth was also slower than what had been expected by experts and a drop from the 0.5% growth between April and June, the ONS said.
Economists polled by Reuters and the Bank of England had forecast an expansion of 0.2%, slowing from the rapid growth seen over the first half of 2024 when the economy was rebounding from last year’s shallow recession.
And the metric that Labour has said it is most focused on – the GDP per capita, or the economic output divided by the number of people in the country – also fell by 0.1%.
Reacting to the figures, Chancellor of the Exchequer Rachel Reeves said: “Improving economic growth is at the heart of everything I am seeking to achieve, which is why I am not satisfied with these numbers.
“At my budget, I took the difficult choices to fix the foundations and stabilise our public finances.
“Now we are going to deliver growth through investment and reform to create more jobs and more money in people’s pockets, get the NHS back on its feet, rebuild Britain and secure our borders in a decade of national renewal,” Ms Reeves added.
The sluggish services sector – which makes up the bulk of the British economy – was a particular drag on growth over the past three months. It expanded by 0.1%, cancelling out the 0.8% growth in the construction sector.
Advertisement
The UK’s GDP for the most recent quarter is lower than the 0.7% growth in the US and 0.4% in the Eurozone.
The figures have pushed the UK towards the bottom of the G7 growth table for the third quarter of the year.
It was expected to meet the same 0.2% growth figures reported in Germany and Japan – but fell below that after a slow September.
The pound remained stable following the news, hovering around $1.267. The FTSE 100, meanwhile, opened the day down by 0.4%.
The Bank of England last week predicted that Ms Reeves’s first budget as chancellor will increase inflation by up to half a percentage point over the next two years, contributing to a slower decline in interest rates than previously thought.
Announcing a widely anticipated 0.25 percentage point cut in the base rate to 4.75%, the Bank’s Monetary Policy Committee (MPC) forecast that inflation will return “sustainably” to its target of 2% in the first half of 2027, a year later than at its last meeting.
The Bank’s quarterly report found Ms Reeves’s £70bn package of tax and borrowing measures will place upward pressure on prices, as well as delivering a three-quarter point increase to GDP next year.
“If you are a member of something, it means you’ve accepted membership. Anything with ‘ship’ on the end, it’s giving you a clue: it’s telling you that’s maritime law. That means you’ve entered into a contract.”
This isn’t your standard legal argument and it is becoming clear that I am dealing with an unusual way of looking at the world.
I’m in the library of a hotel in Leicestershire, a wood-panelled room with warm lighting, and Pete Stone, better known as Sovereign Pete, is explaining how “the system” works. Mr Stone is in his mid-50, bald with a goatee beard and wearing, as he always does for public appearances, a black T-shirt and black jeans.
With us are six other people, mainly dressed in neat jumpers. They’re members of the Sovereign Project (SP), an organisation Mr Stone founded in 2020, which, he says, now has more than 20,000 paying members.
As arcane as this may sound, it represents a worldview that is becoming more influential – and causing problems for authorities. Loosely, they’re defined as “sovereign citizens” or “freemen on the land”.
Their fundamental point is that nobody is required to obey laws they have not specifically consented to – especially when it comes to tax. They have hundreds of thousands of followers in the UK across platforms including YouTube, Facebook and Telegram.
Increasingly, they are coming into conflict with governments and the law. Sovereign citizens have ended up in the High Court in recent months, challenging the legalities of tax bills and losing on both occasions.
More on Leicestershire
Related Topics:
In October, four people were sentenced to prison for the attempted kidnapping of an Essex coroner, who they saw as acting unlawfully. The self-appointed “sheriffs” attempted to force entry to the court, one of them demanding: “You guys have been practising fraud!”
Please use Chrome browser for a more accessible video player
0:49
Moment ‘cult’ tries to kidnap coroner
The Sovereign Project is not connected to any of those cases, nor does it promote any sort of political action, let alone violence.
Advertisement
Instead, they are focused on issues like questioning the obligation to pay taxes, as Mr Stone explains, referencing the feudal system that operated in the Middle Ages.
“Do you know about the feudal system when people were slaves and were forced to pay tax?” he asks.
“Now, unless the feudal system still operates today, and we still have serfs and slaves, then the only way that you can pay taxes is to have a contract, you have to agree to it and consent to it.”
Another member, Karl Deans, a 43-year-old property developer who runs the SP’s social media, says: “We’re not here to dodge tax.”
Local government tends to be a target beyond just demands for tax. Mr Stone speaks of “council employee crimes”.
I ask whether, considering the attempted kidnapping in Essex, there is a danger that people will listen to these accusations of crimes by councils and act on them.
“Well that’s proved,” Mr Stone says. “We only deal with facts.”
Evidence suggests this approach is becoming an issue for councils across the UK, as people search online for ways to avoid paying tax.
Sky News analysis shows that out of 374 council websites covering Great Britain, at least 172 (46%) have pages responding to sovereign citizen arguments around avoiding paying council tax. They point out that liability for council tax is not dependent on consent, or a contract, and instead relies on the Local Government Finance Act 1992, voted on by Parliament.
But the Sovereign Project’s worldview extends beyond council tax. It is deeply anti-establishment, at times conspiratorial. Stone suggests the summer riots may have been organised by the government.
“The sovereign fraternity operates above all of this,” he says. “We look down at the world like a chessboard. We see what’s going on.”
He explains that, really, the UK government isn’t actually in control: there is a shadow government above them.
“These are the people who control government,” he explains.
“A lot of people say this could be the crown council of 13, this could be a series of Italian families.”
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
Professor Christine Sarteschi, an expert in sovereign citizens at Chatham University, Pittsburgh, says she’s worried about the threat sovereign citizens may pose to the rule of law, especially in the US where guns are readily available.
“The movement is growing and that’s evidenced by seeing it in different countries and hearing about different cases. The concern is that they will become emboldened and commit acts of violence,” she says.
“Because sovereigns truly believe in their ideas and if they feel very aggrieved by, you know, the government or whomever they think is oppressing them or controlling them… they can become emotionally involved.
“That emotional involvement sometimes leads to violence in some cases, or the belief that they have the power to attempt to overthrow a government in some capacity.”
Much of this seems to be based on an underlying and familiar frustration at the state of this country and of the world.
Mr Stone echoes some of the characteristic arguments also made by the right, that there is “two-tier policing”, that refugees arriving in the UK are “young men of fighting age”, that the government is using “forced immigration to destroy the country”.
Another SP member, retired investment banker David Hopgood, 61, says: “I firmly believe it is the true Englishman – and woman – of this country – that has the power to unlock this madness that’s happening in the West.
“We’ve got the Magna Carta – all these checks and balances. We just need to pack up, go down to Parliament and say: It’s time to dismiss you. You’re not fit for purpose.”
The members of the Sovereign Project are unfailingly patient and polite in explaining their understanding of the world.
But there is no doubt they hold a deeply radical view, one that is apparently growing in popularity.