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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.

Budget live:
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.

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

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Five people guilty in case of mistaken-identity double murder of teenage boys

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Five people guilty in case of mistaken-identity double murder of teenage boys

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.

Mason Rist and Max Dixon were stabbed in January this year. Pic: Family handout via Avon and Somerset Police/PA
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Mason Rist and Max Dixon were stabbed in January this year. Pic: Family handout via Avon and Somerset Police/PA

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.

CCTV shown in court allegedly shows the 16 and 17-year-olds minutes after the attack wit a large knife
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CCTV shown in court allegedly shows the 16 and 17-year-olds minutes after the attack with a large knife

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.

Senior Investigating Officer Detective Superintendent Gary Haskins
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Detective Superintendent Gary Haskins

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.

CCTV of the actual attack was shown in court this week
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CCTV of the actual attack was shown in court previously

Five people, Antony Snook, 45, Riley Tolliver, 18, and three boys aged 15, 16 and 17, were all accused of the murders
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Five people – Antony Snook, 45, Riley Tolliver, 18, and three boys aged 15, 16 and 17 – were all accused of the murders

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.”

Oasis Academy John Williams headteacher Victoria Boomer-Clark
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Oasis Academy John Williams headteacher Victoria Boomer-Clark

Detective had never seen ‘horrific’ weapons before

The murders came before a new law was introduced banning ownership of zombie-style knives and machetes.

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.”

One of the knives recovered ONLY USE IN CASE OF GUILTY VERDICT
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One of the knives recovered

One of the knives recovered ONLY USE IN CASE OF GUILTY VERDICT
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One of the knives recovered

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.”

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Snook will be sentenced on 19 November at Bristol Crown Court.

The other four defendants will be sentenced on 16 December following the preparation of pre-sentence reports.

Police are continuing to investigate the Hartcliffe house attack and search for those responsible.

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UK economy grows by 0.1% between July and September – slower than expected

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UK economy grows by 0.1% between July and September - slower than expected

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.

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.

Read more from Sky News:
Chancellor vows to rip up financial red tape
Massive winter fuel payment ‘cut’ no one ever talks about

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.

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Meeting the deeply radical anti-tax group that is ‘growing in popularity’

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Meeting the deeply radical anti-tax group that is 'growing in popularity'

“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”.

Sky News meets members of the Sovereign Project
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The Sovereign Project claims to now have 20,000 paying members in the UK

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

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!”

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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.

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.”

Sky News meets members of the Sovereign Project
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Sky’s Tom Cheshire (second left) meets ‘Sovereign Pete’ (left) and other groups members

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.”

People protest in Sunderland city centre following the stabbing attacks on Monday in Southport.
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Violence broke out in numerous towns and cities in August. Pic: PA

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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.”

Professor Christine Sarteschi, an expert in Sovereign Citizens at Chatham University, Pittsburgh
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Professor Christine Sarteschi

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.

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