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.
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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.
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“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.”
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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.”
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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.”
Amid serious concerns over the editorial mistakes made by the BBC, the downfall of its leaders has been greeted with undisguised glee by many on the right of British politics.
Former prime minister Liz Truss was quick off the mark to retweet gloating posts from Donald Trump and White House press secretary Karoline Leavitt with clapping emojis.
Ms Truss argued not just for the abolition of the licence fee, but for the end of nationalised broadcasting altogether.
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Her former cabinet colleague Suella Braverman has also called for the licence fee to be scrapped.
It’s an idea long advocated by Nadine Dorries during her time as culture secretary. The recent Reform convert is particularly pessimistic about the BBC’s future – telling me she believes its “core bias” has worsened in recent years.
“I’m afraid the resignation of Tim Davie will change nothing,” she said. “Under this Labour government overseeing the new appointment… it will probably get worse.”
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2:17
Why ‘Teflon Tim’ resigned from BBC
All three politicians were close allies of Boris Johnson, who has been instrumental this week in piling the pressure on the BBC.
He dramatically threatened in the Daily Mail to boycott the licence fee until Tim Davie explained what happened with the Trump Panorama documentary – or resigned.
Shadow culture secretary Nigel Huddleston told Sky News “we want them to be successful” – but he and his boss Kemi Badenoch are calling for wide-ranging editorial reforms to end what they describe as “institutional bias”.
Their list calls for changes to BBC Arabic, its coverage of the US and Middle East, and “basic matters of biology”, by which they mean its stories on trans issues.
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0:47
‘Catastrophic failure’ at BBC
The irony of demanding editorial changes from a supposedly independent organisation dealing with allegations of bias has been lost in the furore.
Similarly, Nigel Farage is calling for the government to appoint a new director-general from the private sector who has “a record of coming in and turning companies and cultures around”.
As part of its editorial independence, the appointment of the BBC’s next editor-in-chief is meant to be entirely down to its own independent board – and out of the hands of ministers.
The government’s own response to the scandal has therefore been relatively muted. In a statement, Culture Secretary Lisa Nandy thanked Mr Davie for his long service to public service broadcasting – and paid tribute to the BBC as “one of our most important national institutions”.
Image: Tim Davie and Deborah Turness. Pics: PA
Before the news of the resignations broke, she had been expressing her “complete confidence” in how the BBC’s leadership were dealing with the “serious allegations” described in the leaked memo from Michael Prescott, a former external adviser to the corporation’s editorial standards committee.
The departure of Mr Davie and the CEO of BBC News Deborah Turness just hours later seemed to be something of a shock.
A more detailed government response is sure to come when parliament returns from recess on Monday.
The Culture Media and Sport Committee of MPs – which has played an active role in the scandal by writing to the BBC chairman and demanding answers – is due to receive its response on Monday, which is expected to include an apology for the Panorama edits.
Its chair Dame Caroline Dinenage described Mr Davie’s resignation as “regrettable” but said that “restoring trust in the corporation must come first”.
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1:29
Ex-Panorama staffer: ‘Worst crime imaginable’
So far, the only British political leader prepared to mount an outspoken defence of the BBC is Sir Ed Davey.
The Liberal Democrat argues that seeing the White House take credit for Mr Davie’s downfall – and attacking the BBC – “should worry us all”.
He’s called on the PM and all British political leaders to stand united in “telling Trump to keep his hands off it”.
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4:13
What did the BBC do to anger Trump?
Given the diplomatic contortions Sir Keir Starmer has gone through to develop close relations with the current president, this seems entirely unlikely.
But for a prime minister already juggling an overflowing in-tray of problems, controversy over the national broadcaster as the government prepares to enter negotiations about renewing its charter for the next decade is another political tripwire in waiting.
The worst offending areas for uninsured driving in the UK have been revealed – as a hit-and-run victim described how he was “left for dead” with catastrophic injuries.
Every 20 minutes, someone in the UK is hit by an uninsured or hit-and-run driver, the Motor Insurers’ Bureau (MIB) said, based on claims from over 26,000 victims each year.
Every day, at least one person is so seriously injured by an uninsured or hit-and-run driver that they need life-long care and every week, at least one person is killed by an uninsured driver, according to the bureau.
Thurrock in Essex is the worst offending area for uninsured driving, according to claim data from the MIB, a non-profit organisation created to protect people from the impact of uninsured and hit-and-run drivers.
Four different postal areas in Birmingham are among the 15 hotspots highlighted by the MIB, with areas in Peterborough, Manchester, Belfast and Havering also named due to housing a large number of defendants per 1,000 residents.
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One of the victims of an uninsured driver is cyclist Cahal O’Reilly, 55, who was five miles from the ferryport in Holyhead, Wales, when he was hit from behind in September 2021.
He was thrown on to the windscreen and 20m through the air until he landed on the side of the road, seriously injured.
The uninsured driver, who police estimate was driving at 70mph, fled the scene.
Image: Mr O’Reilly suffered catastrophic injuries, including a broken neck and back. Pic: MIB
‘Left for dead’
“I was left for dead, bleeding to death on the side of the road,” Mr O’Reilly told Sky News.
“Nobody knows how long I was on the floor for. When I came to my senses, I could taste my own blood and feel the road on my cheek.”
He realised he was “pretty seriously injured” when he could not move his ankles, and lay still until help arrived.
A passing motorist, who initially thought Mr O’Reilly’s lifeless form was debris before realising it was a body, called the emergency services.
Mr O’Reilly was left with serious injuries, including a broken back and neck, shattered pelvis, smashed bone in his leg, and dislocated shoulder and required several surgeries in the days after the crash.
Image: Police said Mr O’Reilly would be dead if he had not worn his helmet. Pic: MIB
Image: The back tire of Mr O’Reilly’s bicycle was completely ripped apart. Pic: MIB
“I suffered a polytrauma, which is multiple horrendous injuries,” Mr O’Reilly said. “The police said if I hadn’t been wearing a helmet, I would be dead, and officers didn’t think I would make it.
“The hospital consultant told my wife that most people don’t survive the impact, the time until the ambulance arrives, and 22 hours of operations in 48 hours.”
Doctors had to use rods to reconnect Mr O’Reilly’s knee and ankle on his right leg, as the bottom of his foot “was just hanging on by skin and muscle”, and use an arterial skin graft from his left arm to help patch up the damage to his smashed leg.
Mr O’Reilly, who lives in Wandsworth, south London, also had to wear a neck brace for more than five months to stabilise his shattered neck and had to learn how to walk again, with serious setbacks on the way.
Image: Mr O’Reilly had to learn how to walk again after extensive surgery. Pic: MIB
‘Challenging’ recovery
“My pelvis and back fused and healed very quickly, but my leg took the main force of initial impact, with bits of my leg tissue found in the headlight of the car,” Mr O’Reilly said.
Just when he started seeing some progress in the rehab for his leg, about 18 months after the crash, doctors discovered that the metal work supposed to hold the bones together was falling apart, causing a serious infection in his leg.
Mr O’Reilly required another surgery and was told that if the bone did not heal, his leg would have to be amputated.
Image: Mr O’Reilly’s blood and tissue were found in the headlights of the driver’s car. Pic: MIB
Four years on from the horrifying crash, he was told that his bone had finally fused last month.
“If you walk past me in the street, you wouldn’t know now, but the process to get there was very difficult and psychologically quite challenging,” Mr O’Reilly said.
The former British Army major hopes he will be able to return to work as a business consultant next year.
He is now campaigning with the MIB to stop uninsured drivers from hitting the roads, as he wants “nobody to go through what I had to go through”.
“We have to do something in this country,” he said. “People are morally making a choice where they don’t care about their fellow citizens and fail to insure their car and make sure it is properly taxed. Something like that is a social responsibility.”
Image: Mr O’Reilly is campaigning with the MIB to stop uninsured motorists. Pic: MIB
£1bn cost of uninsured drivers
Uninsured driving costs the government £1bn a year, including compensation for victims, emergency services, medical costs and loss of productivity.
An uninsured vehicle is seized every four minutes across the UK, with almost 120,000 seized so far this year, the MIB said.
What are the penalties for driving without insurance?
Police can issue a fixed penalty of £300 and six penalty points to anyone caught driving a vehicle they are not insured to drive.
If the case goes to court, the penalties can increase to an unlimited fine and the culprit can be disqualified from driving.
Police also have the power to seize and, in some cases, destroy a vehicle that has been driven uninsured.
The bureau has launched a week-long road safety initiative in collaboration with police forces across the UK, including targeted enforcement in problem areas and public education to urge people to check their insurance status.
“Our aim is to end uninsured driving, which means working closely with the police across the UK to remove dangerous vehicles from our roads,” Martin Saunders, head of enforcement at MIB, said.
“At the same time, we are ramping up our support for motorists who want to drive legally, providing them with the knowledge they need to have the right cover in place.”
“While not being the only reason, the current debate around BBC News has understandably contributed to my decision,” Mr Davie wrote in a note sent to staff.
“Overall, the BBC is delivering well, but there have been some mistakes made and as director-general I have to take ultimate responsibility.”
Image: Tim Davie is stepping down as director-general after five years. Pic: PA
Mr Davie has been in the role for five years and at the BBC for 20 in total, having previously worked as director of marketing, director of audio and music, and chief executive of BBC Studios.
Here are the controversies the broadcaster has faced in recent years.
The Trump documentary edit
A memo sent in the summer by a former external adviser to the BBC’s editorial standards committee, highlighting the edit of a Donald Trump speech as well as other concerns about impartiality, was first reported by The Daily Telegraph on Tuesday.
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4:13
What did the BBC do to anger Trump?
The concerns regard clips spliced together from sections of a speech made by the US president on 6 January 2021, featured in the Panorama programme Trump: A Second Chance?
It made it appear that Mr Trump told supporters he was going to walk to the US Capitol with them to “fight like hell”, although the quotes were made during separate parts of the speech. The episode was broadcast by the BBC the week before last year’s US election.
Bob Vylan at Glastonbury
Image: Bob Vylan frontman Bobby Vylan on stage at Glastonbury. Pic: PA
In July, punk-rap duo Bob Vylan led chants of “death to the IDF” while on stage at Glastonbury, a performance which was live-streamed as part of the BBC’s coverage of the festival.
The BBC’s Executive Complaints Unit received four complaints about the performance relating to incitement to violence, terrorism or ethnic cleansing, hate speech and expressions of antisemitism.
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1:09
Trump hits out at ‘dishonest’ BBC
In a ruling given in September, it found the stream of the performance had breached its editorial standards.
Following the backlash over the Glastonbury gig, Bob Vylan said in a post on Instagram that “we are not for the death of Jews, Arabs or any other race or group of people”.
MasterChef
Image: Pic: Ken McKay/ITV/Shutterstock
In the same month, presenter Gregg Wallace was sacked from cooking show MasterChef after an investigation into historical allegations of misconduct upheld multiple accusations against him. These first emerged towards the end of 2024.
Wallace, who co-presented the show for almost 20 years, said he was “deeply sorry for any distress caused” and that he “never set out to harm or humiliate”, but also said in a statement released ahead of the publication of a summary of the report that he had been “cleared of the most serious and sensational accusations” made against him.
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5:05
Mark Stone: Trump enjoys ‘having a scalp’ as BBC director-general resigns
His co-presenter John Torode left the show the following week after an allegation he used an “extremely offensive racist term” was upheld, the BBC said.
In October, Wallace announced he was suing the broadcaster for “distress and harassment”.
Gary Lineker
Image: Pic: PA 2024
No stranger to controversy during his last few years at the BBC, Gary Lineker stepped down from hosting Match Of The Day and World Cup coverage in May.
It came after he apologised unreservedly for sharing a social media postfrom the Palestine Lobby group that had been illustrated with a rat – which has been used to represent Jewish people in antisemitic propaganda, including Nazi Germany.
He said he had not known about the rat’s symbolism.
“I would never consciously repost anything antisemitic – it goes against everything I stand for,” Lineker said in a statement as he confirmed his resignation. “However, I recognise the error and upset that I caused, and reiterate how sorry I am. Stepping back now feels like the responsible course of action.”
The former England star had previously been temporarily suspended from the BBC in March 2023, after an impartiality row over comments he made criticising the then Conservative government’s asylum policy.
His temporary suspension led pundits Ian Wright and Alan Shearer to both announce they would not appear on Match of the Day, and a shortened show went ahead without commentary, pundit analysis, or post-match interviews.
The incident sparked a report, which decided that high-profile BBC presenters outside of its news coverage should be able to express their views on political issues as long as they stop short of campaigning.
Gaza documentary
Image: Mr Davie and BBC chairman Samir Shah were questioned about the documentary by the Culture, Media and Sport Committee earlier this year. Pic: PA
Gaza: How To Survive A Warzone was pulled from BBC iPlayer in February after it emerged that the 13-year-old boy narrating the programme was the son of a deputy minister in the Hamas-run government.
The documentary was made by independent production company Hoyo Films.
A BBC review into the controversial programme said three members of the independent production company knew about the role of the boy’s father – but no one within the corporation was aware.
In October, an Ofcom investigation found the documentary had breached the broadcasting code.
Huw Edwards
Image: Huw Edwards appeard in court in September 2024. Pic: PA
In April 2024, veteran news presenter Huw Edwards resigned from the BBC, nine months after coming off air following accusations of paying a teenager thousands of pounds for sexually explicit pictures.
Just a few months later, it emerged he had remained one of the broadcaster’s highest-paid stars of the year, despite his suspension.
Days later, new allegations emerged – and he was charged and pleaded guilty in court to three counts of “making” indecent images of children, after receiving the illegal images as part of a WhatsApp conversation.
The court heard how he paid up to £1,500 to a paedophile who sent him 41 illegal images between December 2020 and August 2021, seven of which were of the most serious type.
The disgraced broadcasteravoided jail, but was given a six-month suspended sentence.
Strictly Come Dancing
Image: Pic: BBC
Ahead of the 2024 series of BBC favourite Strictly Come Dancing, producers said they would introduce staff chaperones into all future rehearsals.
It followed the departure of two professional dancers following complaints about their behaviour.
Following an investigation, the BBC upheld “some, but not all” of the allegations made against Giovanni Pernice by his 2023 dance partner Amanda Abbington.
Another professional dancer, Graziano Di Prima, also left the show amid reports of alleged misconduct.
Apology over Diana interview
Image: Diana, Princess of Wales, during her interview with Martin Bashir for the BBC in 1995. Pic: PA
In 2021, a report into Martin Bashir‘s bombshell 1995 programme with Princess Diana found the journalist had “deceived and induced” her brother to secure the interview.
By using fake bank statements, Mr Bashir made a “serious breach” of BBC guidelines on straight-dealing, the Lord Dyson report concluded.
Mr Davie, who was not at the BBC at the time the programme was made, issued a “full and unconditional” apology after the findings were released, and the corporation sent written apologies to Prince William and Prince Harry, as well as to Prince Charles and Earl Spencer.
Mr Bashir also apologised and said the faking of bank statements was a “stupid thing to do” and “an action I deeply regret”, but added he felt it had “no bearing whatsoever on the personal choice by Princess Diana to take part in the interview”.
Former director-general Lord Hall, who was the BBC’s director of news and current affairs when the Diana interview was screened, said he accepted the corporation’s 1996 inquiry into how the sit-down was secured “fell well short of what was required”.