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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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.
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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.
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 spending will rise to £11bn over the next five years.
The White House is considering inviting Volodymyr Zelenskyy to a meeting between Donald Trump and Vladimir Putin in Alaska, according to reports in the US.
A senior US official and three people briefed on internal discussions have told Sky News’ US partner network NBC News that the Trump administration is now considering inviting the Ukrainian president to the summit.
“It’s being discussed,” one of the people briefed on the talks was quoted as saying.
The sources said a visit by Mr Zelenskyy has not been finalised – and it is unclear whether the Ukrainian leader will be in Alaska for the summit.
However, the senior administration official said it is “absolutely” possible.
“Everyone is very hopeful that would happen,” the official said.
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Asked whether the US had officially invited Mr Zelenskyy to Alaska, a senior White House official said: “The President remains open to a trilateral summit with both leaders. Right now, the White House is focusing on planning the bilateral meeting requested by President Putin.”
Mr Trump told reporters at the White House on Friday before the Alaska summit was confirmed that “we’re getting very close to a deal” that would end the war.
The US president added there will be “some swapping of territories to the betterment of both sides”.
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1:31
US diplomacy ‘totally amateur’
Zelenskyy suggests he’s unwilling to give up territory
However, the Ukrainian president warned on Saturday that allowing Russia to keep territory it has occupied in Ukraine will result in another invasion.
He said allowing Mr Putin to annex Crimea in 2014 didn’t prevent Russia forces from occupying more parts of Ukraine during the current conflict.
Mr Zelenskyy added: “Now, Putin wants to be forgiven for seizing the south of our Kherson region, Zaporizhzhia, the entire territory of Luhansk and Donetsk regions, and Crimea. We will not allow this second attempt to partition Ukraine.
“Knowing Russia – where there is a second, there will be a third.”
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2:28
Zelenskyy: Ukraine will not give land to ‘occupier’
NATO allies say Ukraine must be involved in negotiations
The reports Mr Zelenksyy could be invited to Alaska come as Ukraine and several NATO allies have reportedly been privately concerned Mr Trump might agree to Mr Putin’s proposals for ending the war without taking their positions into account.
In a joint statement on Saturday night, UK Prime Minister Sir Keir Starmer and the leaders of France, Italy, Germany, Poland, Finland and the European Commission said Ukraine’s future cannot be decided without Kyiv.
They said: “Ukraine has the freedom of choice over its own destiny. Meaningful negotiations can only take place in the context of a ceasefire or reduction of hostilities.
“The path to peace in Ukraine cannot be decided without Ukraine.
“We remain committed to the principle that international borders must not be changed by force.
“The current line of contact should be the starting point of negotiations.”
Image: From left: Volodymr Zelenskyy, Donald Trump and Vladimir Putin. Pics: AP
UK hosts Ukrainian officials ahead of summit
British Foreign Secretary David Lammy had earlier hosted a meeting of top Ukrainian officials and European national security advisers alongside US vice-president JD Vance on Saturday ahead of the Trump-Putin meeting.
The meeting took place at the foreign secretary’s official country retreat, Chevening, in Kent, where Mr Vance is staying at the start of a UK holiday.
After the meeting, Mr Lammy said: “The UK’s support for Ukraine remains ironclad as we continue working towards a just and lasting peace.”
Image: From left: Rustem Umerov, David Lammy, JD Vance and Andriy Yermak. Pic: X/David Lammy
It is understood that the meeting had been called at Washington’s request, and included representatives from the US, Ukraine, France, Germany, Italy, Finland and Poland as well as the UK.
Ukraine was represented by Rustem Umerov, secretary of the country’s national security and defence council, and the head of Mr Zelensky’s office, Andriy Yermak.
In a post on social media, Mr Yermak said the allies’ positions were “clear” that “a reliable, lasting peace is only possible with Ukraine at the negotiating table, with full respect for our sovereignty and without recognising the occupation”.
Ahead of the meeting at Chevening, Sir Keir discussed the talks in a call with Mr Zelenskyy on Saturday and also spoke to French President Emmanuel Macron.
A Downing Street spokeswoman said Sir Keir and Mr Macron “discussed the latest developments in Ukraine, reiterating their unwavering support for President Zelenskyy and to securing a just and lasting peace for the Ukrainian people”.
Although close to Russia geographically – less than three miles away at the narrowest point – it’s a very long way from neutral ground.
The expectation was they would meet somewhere in the middle. Saudi Arabia perhaps, or the United Arab Emirates. But no, Vladimir Putin will be travelling to Donald Trump’s backyard.
It’ll be the first time the Russian president has visited the US since September 2015, when he spoke at the UN General Assembly. Barack Obama was in the White House. How times have changed a decade on.
The US is not a member of the International Criminal Court, so there’s no threat of arrest for Vladimir Putin.
But to allow his visit to happen, the US Treasury Department will presumably have to lift sanctions on the Kremlin leader, as it did when his investment envoy Kirill Dmitriev flew to Washington in April.
And I think that points to one reason why Putin would agree to a summit in Alaska.
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Instead of imposing sanctions on Russia, as Trump had threatened in recent days, the US would be removing one. Even if only temporary, it would be hugely symbolic and a massive victory for Moscow.
The American leader might think he owns the optics – the peace-making president ordering a belligerent aggressor to travel to his home turf – but the visuals more than work for Putin too.
Shunned by the West since his invasion, this would signal an emphatic end to his international isolation.
Donald Trump has said a ceasefire deal is close. The details are still unclear but there are reports it could involve Ukraine surrendering territory, something Volodymyr Zelenskyy has always adamantly opposed.
Either way, Putin will have what he wants – the chance to carve up his neighbour without Kyiv being at the table.
And that’s another reason why Putin would agree to a summit, regardless of location. Because it represents a real possibility of achieving his goals.
It’s not just about territory for Russia. It also wants permanent neutrality for Ukraine and limits to its armed forces – part of a geopolitical strategy to prevent NATO expansion.
In recent months, despite building US pressure, Moscow has shown no intention of stopping the war until those demands are met.
It may be that Vladimir Putin thinks a summit with Donald Trump offers the best chance of securing them.
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