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The chancellor has announced the budget for 2023.

The UK will now not enter a technical recession this year, the independent forecasters, the Office for Budget Responsibility (OBR) has said.

Inflation will more than halve and reduce to 2.9% by the end of the year, the OBR expects.

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The announcements as they happen

Here are the key points:

Parents – working 16 hours a week – of children aged nine months to five years will get 15 hours free childcare to encourage caregivers to enter the workforce.

This will be staggered from April 2024 to ensure enough places. Children up to two years old will get 15 hours free from April 2024, children from nine months up will benefit from September 2024, and from September 2025 every single working parent of a child under five will have access to 30 hours free childcare per week.

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pensions

The lifetime allowance – the total amount workers can accumulate in their pension savings before paying extra tax – has been abolished. Mr Hunt hopes it will stop 80% of NHS doctors from receiving a tax charge.

The pensions annual tax-free allowance will rise by 50% from £40,000 to £60,000.

Tax relief of 11p has been announced on draft drinks served in pubs from 1 August.

An extension of the 5p cut in fuel duty, at a cost of £6bn, has been announced for a year. Fuel duty will also be frozen for the next 12 months.

The government will abolish the work capability assessment for disabled people and separate benefit entitlement from an individual’s ability to work. The aim is to enable disabled people to seek work without fear of losing their benefits.

A new programme called universal support will also fund extra support for disabled people to find work.

A new apprenticeship, called a returnership, will be created for those aged 50 and older wanting to return to work. Mr Hunt said it will makes existing skills programmes more appealing for older workers and focus on previous experience.

An extra £400m will increase mental health and musculoskeletal workplace support to stop people being forced to leave work due to sickness.

As corporation tax on profits over £250,000 is due to rise from 19% to 25% in April, businesses will be able to offset 100% of UK investments against their profits to bring down tax bills. The OBR said it will increase business investment by 3% for every year. Mr Hunt announced the measure for the next three years but intends to make it permanent “as soon as we can responsibly do so”.

An “enhanced credit” has been introduced for small and medium-sized businesses if they spend 40% or more of their total expenditure on research and development. They can claim credit worth £27 for every £100 spent.

As expected, the government is extending the energy price guarantee (EPG) which keeps the average household bill at £2,500 until the end of June by capping the unit price of electricity. The typical bill was due to rise to £3,000 from 1 April. Under the EPG the government effectively caps household costs and reimburses energy companies for the difference between that, and the cost of buying power on wholesale markets.

The energy rebate scheme – paid direct to customers in six instalments of £66 and £67 a month – has not been extended and will end this month.

The so-called “prepayment premium”, whereby those using prepayment meters are charged more for their gas and electricity, will be scrapped from July, enabling four million families to save £45 a year on their bills.

Investment zones

Twelve new investment zones or “potential Canary Wharfs” will be eligible for £80m in funding to boost business there, with at least one each in Scotland, Wales and Northern Ireland.

There will also be £200m extra funding for local regeneration projects.

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An extra £200m a year – in addition to the £500m already allocated – will be made available to tackle “the curse” of potholes.

Public leisure centres and pools will share a £63m fund to help with costs.

From next year medicines and technologies approved by other trusted global regulators will be eligible for “near automatic” sign-off.

defence

Defence spending will rise to £11bn over the next five years.

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

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Hundreds of barbers, car washes and American sweet shops raided in money laundering crackdown

Hundreds of barber shops and other cash-heavy businesses have been targeted in a three-week money laundering blitz.

Police went to 265 premises, including vape shops, nail bars, American-themed sweet shops and car washes across England in a crackdown on high street crime.

The National Crime Agency (NCA) said 35 arrests were made, 97 people suspected to be victims of modern slavery were placed under police protection, and bank accounts containing more than £1m were frozen.

More than £40,000 in cash, some 200,000 cigarettes, 7,000 packs of tobacco, and more than 8,000 illegal vapes were also seized during Operation Machinize, which involved 19 different police forces and regional organised crime units.

Officers also found two cannabis farms containing a total of 150 plants, while 10 shops have been shut down.

The NCA estimates that £12bn of criminal cash is generated in the UK each year with businesses such as barber shops, vape shops, nail bars, American-themed sweet shops and car washes often used by criminals.

Goods seized during their visit to a vape shop in Rochdale.
Pic: GMP/PA
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Goods seized during a visit to a vape shop in Rochdale. Pic: GMP/PA

Police officers at a shop in Tameside. 
Pic: GMP/PA
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Police officers at a shop in Tameside. Pic: GMP/PA

Rachael Herbert, deputy director of the National Economic Crime Centre at the NCA, said: “Operation Machinize targeted barber shops and other high street businesses being used as cover for a whole range of criminality, all across the country.

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“We have seen links to drug trafficking and distribution, organised immigration crime, modern slavery and human trafficking, firearms, and the sale of illicit tobacco and vapes.

“We know cash-intensive businesses are used as fronts for money laundering, facilitating some of the highest harm and highest impact offending in the UK.”

Pic: NCA
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Money laundering crackdown. Pic: NCA

Security minister Dan Jarvis said the operation “highlights the scale and complexity of the criminality our towns and cities face”.

“High street crime undermines our security, our borders, and the confidence of our communities, and I am determined to take the decisive action necessary to bring those responsible to justice,” he said.

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Kara Alexander: Dagenham mother who murdered her two young sons in the bath jailed

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Kara Alexander: Dagenham mother who murdered her two young sons in the bath jailed

A skunk-smoking mother who murdered her two young sons in the bath while in a psychotic state has been jailed for life with a minimum term of more than 21 years.

Kara Alexander was found guilty of drowning Elijah Thomas, two, and Marley Thomas, five, at the home they shared in Dagenham, east London, in December 2022.

Alexander, 47, who had denied two counts of murder, was convicted at Kingston Crown Court in February.

Post-mortems on the boys found they had either been drowned or suffocated – but Alexander accepted at trial that she had placed them in the bath before they “accidentally” drowned.

Returning to Kingston Crown Court on Friday, Mr Justice Bennathan sentenced Alexander to life imprisonment with a minimum term of 21 years and 252 days.

The judge referred to the children’s father finding his deceased sons next to one another as “the stuff of nightmares”.

Mr Justice Bennathan said: “On the evening of 15 December 2022, you’d been smoking skunk.

“You’d been doing so every night for weeks, probably much longer. At some stage, both the boys were in their pyjamas ready for bed, with Elijah also wearing his nappy.

“You drowned them both by your deliberate acts.”

The judge said Alexander “unspeakably” held the boys under water for “up to a minute or two”.

“The bath was probably still run from their normal evening routine and I do not think for a moment that your dreadful acts were pre-meditated,” he said.

The judge said Alexander dried the boys, put them in clean pyjamas and laid them together, tucked in under duvets, on the same bunk bed.

“The next morning, their father, worried by your unusual silence, came and found them. The stuff of nightmares,” he said.

The jury heard how the boys’ father was due to have them that weekend and became increasingly concerned when he had not heard back from Alexander.

When he arrived at their home, she told him the children were upstairs sleeping.

When the father returned downstairs to call for help, Alexander had run away. It took the police around an hour to find her.

The Metropolitan Police said forensic analysis of Alexander’s phone, which had been found in a filled sink, showed it had been in regular use in the run-up to the murders, but on the day the children were found, no calls were made or messages sent.

This led detectives to believe that she had intentionally been avoiding people following their deaths.

Prosecutors said they built their case on showing the boys could not have accidentally drowned and that the only reasonable explanation for their deaths was that Alexander caused them to drown.

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Man who murdered taxi driver after being refused cigarette is jailed

The judge said there was every sign Alexander was a “caring and affectionate” mother to both children before the events of 15 December 2022.

He pointed out that their father said Alexander “never shouted or raised her voice at the boys” and “never showed violence to the boys”.

The judge said: “From all that I have read and seen of you, I have no doubt that every day when you awake you will remember and grieve for the little boys whose lives you snatched away.”

Mr Justice Bennathan said Alexander was in a psychotic state when she killed her sons and that it was cannabis induced.

He said Alexander had a previous psychotic episode in 2016 in which cannabis also probably played a part, but acknowledged he could not be sure she was aware that the drug could trigger another psychotic state.

In his sentencing remarks, Mr Justice Bennathan warned of the dangers of drugs.

He said: “The heavy use of skunk or other hyper-strong strains of cannabis can plunge people into a mental health crisis in which they may harm themselves or others.

“If any drug user does not know that, it’s about time they did.

“At your trial, Kara Alexander, the three psychiatrists who gave evidence disagreed about a number of things, but on that they were unanimous.

“It will comfort nobody connected to this case, but if these events bring home that message to even a few people, some slight good may come from what is otherwise an unmitigated tragedy.”

Detective Chief Inspector Paul Waller, who led the investigation, said: “This is an incredibly tragic case, which has left a father without his two beloved boys and a family without two young brothers.

“Kara Alexander will spend the next two decades behind bars, where the memory of what she has done will haunt her forever.

“To the family and friends of Elijah and Marley, while no amount of time will erase the pain of such a loss, I hope this sentence serves to bring some semblance of justice.

“I hope you can now move on with your life, remembering the boys as you knew them, and treasuring the happy times you spent with them.”

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‘I don’t look at myself as a dying person anymore’: New drug that slows incurable breast cancer now available on the NHS

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'I don't look at myself as a dying person anymore': New drug that slows incurable breast cancer now available on the NHS

A groundbreaking new cancer treatment, hailed by patients as “game-changing”, will be available via the NHS from today.

The drug capivasertib has been shown in trials to slow the spread of the most common form of incurable breast cancer.

Taken in conjunction with an already-available hormonal therapy, it has been shown in trials to double how long treatment will keep the cancer cells from progressing.

“I don’t look at myself anymore as a dying person,” says Elen Hughes, who has been using the drug since February this year.

“I look at myself as a thriving person, who will carry on thriving for as long as I possibly can.”

Ellen Hughes has been using the drug capivasertib
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Elen Hughes says capivasertib has extended her life and improved its quality

Mrs Hughes, from North Wales, was first diagnosed with primary breast cancer in 2008.

Eight years later, then aged 46 and with three young children, she was told the cancer had returned and spread.

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She says that capivasertib, which she has been able to access via private healthcare, has not only extended her life but improved its quality with fewer side effects than previous medications.

It also delays the need for more aggressive blanket treatments like chemotherapy.

New breast cancer drug capivasertib
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Capivasertib is now available from the NHS

“What people don’t understand is that they might look at the statistics and see that [the therapy] is effective for eight months versus two months, or whatever,” says Mrs Hughes.

“But in cancer, and the land that we live in, really we can do a lot in six months.”

Mrs Hughes says her cancer therapy has allowed her “to see my daughter get married” and believes it is “absolutely brilliant” that the new drug will be available to more patients via the NHS.

The National Institute for Health and Care Excellence approved capivasertib for NHS-use after two decades of research by UK teams.

Professor Nicholas Turner, from the Institute of Cancer Research which led the study, told Sky News it was a “great success story for British science”.

Professor Nicholas Turner, from the Institute of Cancer Research which led the study
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Professor Nicholas Turner wants urgent genetic testing of patients with advanced breast cancers to see if they could benefit

The new drug is suitable for patients’ tumours with mutations or alterations in the PIK3CA, AKT1 or PTEN genes, which are found in approximately half of patients with advanced breast cancer.

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Breast cancer cases and deaths set to surge – study

Prof Turner says hundreds of patients could see the benefit in the immediate future, with thousands more people identified over time.

“We need new drugs that will help our existing therapies work for longer, and that’s where this new drug, capivasertib comes in,” says Prof Turner.

“It doubles how long hormone therapy treatment works for, giving patients precious extra time with their families.”

He called for urgent genetic testing of patients with advanced breast cancers to see if they could benefit.

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