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.
It’s a year since the US put Donald Trump back in the White House and I’ve spent this anniversary week in Florida and in Pennsylvania – two worlds in one country where I found two such contrasting snapshots of Trump’s America.
There are many ways to reflect on the successes and failures of the past year. Different issues matter to different people. But the thing which matters to all Americans is money.
The cost of living was a key factor in Donald Trump’s victory. He promised to make the country more affordable again. So: how’s he done?
On Wednesday, exactly a year since Americans went to the polls, the president was in Miami. He had picked this city and a particular crowd for his anniversary speech.
I was in the audience at the America Business Forum as he told wealthy entrepreneurs and investors how great life is now.
“One year ago we were a dead country, now we’re considered the hottest country in the world.” he told them to cheers. “Record high, record high, record high…”
The vibe was glitzy and wealthy. These days, these are his voters; his crowd.
“After just one year since that glorious election, I’m thrilled to say that America is back, America is back bigger, better, stronger than ever.” he said.
“We’ve done really well. I think it’s the best nine months, they say, of any president. And I really believe that if we can have a few more nine months like this, you’d be very happy. You’d be very satisfied.”
There was little question here that people are happy.
Image: Liz Ciborowski says Trump has been good for the economy
“Trump’s been a good thing?” I asked one attendee, Liz Ciborowski.
“Yes. He has really pushed for a lot of issues that are really important for our economy,” she said.
“I’m an investor,” said another, Andrea.
“I’m a happy girl. I’m doing good,” she said with a laugh.
Image: Andrea says she’s happy with how the economy is faring
A year on from his historic victory, the president was, notably, not with the grassroots folk in the places that propelled him back to the White House.
He had chosen to be among business leaders in Miami. Safe crowd, safe state, safe space.
But there was just one hint in his speech which seemed to acknowledge the reality that should be a concern for him.
“We have the greatest economy right now,” he said, adding: “A lot of people don’t see that.”
That is the crux of it: many people beyond the fortunate here don’t feel the “greatest economy” he talks about. And many of those people are in the places that delivered Trump his victory.
That’s the untold story of the past year.
A thousand miles to the north of Miami is another America – another world.
Steelton, Pennsylvania sits in one of Donald Trump’s heartlands. But it is not feeling the beat of his greatest economy. Not at all.
At the local steel union, I was invited to attend a meeting of a group of steel workers. It was an intimate glimpse into a hard, life-changing moment for the men.
The steel plant is shutting down and they were listening to their union representative explaining what happens next.
Image: David Myers used to be employed at the steelworks
The conversation was punctuated with all the words no one wants to hear: laid off, severance, redundancy.
“For over 100 years, my family has been here working. And I was planning on possibly one day having my son join me, but I don’t know if that’s a possibility now,” former employee David Myers tells me.
“And…” he pauses. “Sorry I’m getting a little emotional about it. We’ve been supplying America with railroad tracks for over a century and a half, and it feels weird for it to be coming to an end.”
Cleveland Cliffs Steelton plant is closing because of weakening demand, according to its owners. Their stock price has since surged. Good news for the Miami crowd, probably. It is the irony between the two Americas.
Down at the shuttered plant, it’s empty, eerie and depressing. It is certainly not the image or the vision that Donald Trump imagined for his America.
Pennsylvania, remember, was key to propelling Trump back to the White House. In this swing state, they swung to his promises – factories reopened and life more affordable.
Up the road, conversations outside the town’s government-subsidised homes frame the challenges here so starkly.
“How much help does the community need?” I asked a man running the local food bank.
Image: Elder Melvin Watts is a community organiser
“As much as they can get. I mean, help is a four-letter word but it has a big meaning. So help!” community organiser Elder Melvin Watts said.
I asked if he thought things were worse than a year ago.
“Yes sir. I believe they needed it then and they need it that much more now. You know it’s not hard to figure that out. The cost of living is high.”
Nearby, I met a woman called Sandra.
Image: Sandra says it’s getting harder to make ends meet
“It’s been harder, and I’m a hard-working woman.” she told me. “I don’t get no food stamps, I don’t get none of that. You’ve got to take care of them bills, eat a little bit or don’t have the lights on. Then you have people like Mr Melvin, he’s been out here for years, serving the community.”
Inside Mr Melvin’s food bank, a moment then unfolded that cut to the heart of the need here.
A woman called Geraldine Santiago arrived, distressed, emotional and then overwhelmed by the boxes of food available to her.
“We’ll help you…” Mr Melvin said as she sobbed.
Image: Geraldine’s welfare has been affected by the shutdown
Geraldine is one of 40 million Americans now not receiving the full nutritional assistance programme, known as SNAP, and usually provided by the federal government.
SNAP benefits have stopped because the government remains shut down amid political deadlock.
I watched Geraldine’s rollercoaster emotions spilling out – from desperation to gratitude at this moment of respite. She left with a car boot full of food.
A year on from his victory, Donald Trump continues to frame himself as the “America First” president and now with an economy transformed. But parts of America feel far, far away.
Pirates firing machine guns and rocket-propelled grenades have boarded a tanker off the coast of Somalia.
Greek shipping company Latsco Marine Management confirmed its vessel, Hellas Aphrodite, had been attacked in the early hours of Thursday.
The tanker, which was carrying fuel, was en route from India to South Africa when a “security incident” took place, the firm said.
“All 24 crew are safe and accounted for and we remain in close contact with them,” it added in a statement.
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The crew members took shelter in the ship’s “citadel”, or fortified safe room, and remain there, an official from maritime security company Diaplous said.
The United Kingdom Maritime Trade Operations (UKMTO) agency issued an alert to warn ships in the area.
It located the vessel 560 nautical miles southeast of Eyl, Somalia, in the Indian Ocean. Eyl became famous in the mid-2000s as the centre of a string of piracy attacks.
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“The Master of a vessel has reported being approached by one small craft on its stern. The small craft fired small arms and RPGs [rocket-propelled grenades] towards the vessel,” UKMTO said in a statement.
EU forces move in on tanker
The European Union’s Operation Atalanta, a counter-piracy mission around the Horn of Africa, said one of its assets was “close to the incident” and “ready to take the appropriate actions”.
That EU force has responded to other recent pirate attacks in the area and had issued a recent alert that a pirate group was operating off Somalia and assaults were “almost certain” to happen.
Private security firm Ambrey has claimed that Somali pirates were operating from an Iranian fishing boat they had seized and had opened fire on the tanker.
Thursday’s attack comes after another vessel, the Cayman Islands-flagged Stolt Sagaland, found itself targeted in a suspected pirate attack that included both its armed security force and the attackers shooting at each other, the EU force said.
The vessel’s operator Stolt-Nielsen confirmed there was an attempted attack, early on 3 November, which was unsuccessful.
Somali pirate gangs have been relatively inactive in recent years. In May 2024, suspected pirates boarded the Liberian-flagged vessel Basilisk. EU naval forces later rescued the 17 crew members.
Meanwhile, the last hijacking took place in December 2023, when the Maltese-flagged Ruen was taken by assailants to the Somali coast before Indian naval forces freed the crew and arrested the attackers.
Hellas Aphrodite was en route from Sikka, India, to Durban, South Africa.
The Malta-flagged tanker is described as an oil/chemical tanker, 183m long and 32m wide, which was built in 2016, according to vesselfinder.com.