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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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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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China’s Xi believes in destiny – and it’s bad news for the West

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China's Xi believes in destiny - and it's bad news for the West

China put on a show of military strength and diplomatic pulling power in Beijing this week that should worry us all.

At the heart of it was one all-powerful man.

Xi Jinping is emerging as the emperor of a rising China bent on reshaping the world in its image.

He wears the garb of his communist forebears, but he is much more than just another heir to Chairman Mao.

Xi increasingly has more in common with China’s imperial past.

He has disposed of rivals and term-limit rules, making him potentially ruler for life.

Xi believes it is China’s destiny to return to its rightful place as the centre of the world. A new world order dominated by China is approaching he believes, hastened by the Trump administration’s willingness to dismantle the current Pax Americana and western disarray over Ukraine.

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The Chinese weapons that will worry America

China has a right to assert itself more robustly on the world stage, of course, but it’s the manner of that assertion and the risks of collision with the West that should give cause for concern.

Xi has ruthlessly crushed dissent at home with quasi genocidal repression in Xinjiang, a cultural holocaust in Tibet and brutal suppression of human rights in Hong Kong.

Next in his sights is Taiwan. It is claimed by the Chinese communists as part of their One China project.

That opens up one fault line between Xi’s rising China and Western nations.

China’s more and more open support of Putin’s war in Ukraine is of course another.

Western impotence and failure to bring enough pressure on Russia to end the conflict has allowed it to metastasize into a much bigger one.

Read more from Sky News:
Xi presents his vision of the future
Who is Kim Jong Un’s sister Kim Yo Jong

The three autocrat amigos in Beijing on Wednesday. Pic: Reuters
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The three autocrat amigos in Beijing on Wednesday. Pic: Reuters

On one side in the East, authoritarian governments lining up to support Russia. And on the other, democratic countries supporting Ukraine.

This week’s jamboree of autocrats in Beijing seems to have tipped things more in their favour. Good news for regimes using Orwellian surveillance, censorship, and repression to control their people and keep a grip on power.

Bad news for the rest of us who prefer a future organised around democracy, freedom, and the rule of law.

Dictators rejoice. Democrats beware.

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‘At night we don’t sleep’: How a West Bank family are facing harassment by young Israeli settlers

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'At night we don't sleep': How a West Bank family are facing harassment by young Israeli settlers

The further we go, the rougher the terrain becomes, jolting the car as we drive along a mountain track strewn with rocks.

And then we round a corner and there is a sleeping dog, a circle of chairs and two women smiling and beckoning us to follow them.

This is Fatima and her mother-in-law, Fadda. They live in a makeshift camp perched on a rocky ledge.

Fatima (left) and Fadda say they are afraid their homes could be set alight
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Fatima (left) and Fadda say they are afraid their homes could be set alight

Behind their tent is a cave, in which there are chickens and a bed. In front of it is the path where we now stand, and then a precipice that looks down upon a ravine.

They invite us into a tent to talk. Sweet tea is brought out, and so is the story of how their home was demolished, their car stolen, their peace destroyed and why they now have to hide their flock of sheep.

But before all that, Fatima takes us out and points at a ridge behind their camp.

We can see a small black structure, just visible against the dark rock. “That is where they are,” she says. “The settlers come down from there.”

The family say settlers are constantly coming to their camp home to harass them
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The family say settlers are constantly coming to their camp home to harass them

Every day, people come down to her home. Unwelcome visitors.

“We’d be baking bread, and they would come, lay out their mattresses and just sit there. When we told them to leave, they’d return with more settlers and an armed soldier.”

And the soldier, always, would be on the side of the settlers.

“At night we don’t sleep,” says Fadda, smiling through the pain.

“We stay awake waiting for the settlers. Four or five of them come in their cars each night, sometimes on motorcycles, right up to our doorstep to terrify the children.

“We sit through the night, afraid they’ll set fire to our homes and belongings, trying to force us to flee with our kids.”

We see videos, shared widely on social media, of Fadda confronting a young settler who has come to menace the family.

Fadda confronted a young settler in a video shared on social media
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Fadda confronted a young settler in a video shared on social media

He stands right in front of her, staring her straight in the eyes, trying to push her forward. Fadda responds by standing her ground, smiling gently at him.

“This happens every single day,” says Fatima. “If we didn’t stand up for ourselves, we would have left long ago. The problem is, they’re children.

“They send the kids down on purpose to provoke us, to push us off our land. That’s why we’ve had to build this resilience.”

Fadda says the settlers come 'right up to our doorstep to terrify the children'
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Fadda says the settlers come ‘right up to our doorstep to terrify the children’

Their tale of suffering is desperate. They tell me the family used to live in a house, which was demolished by the Israel military.

An hour later we drive past its remains – a huge pile of twisted metal and rubble. Their car has been taken so they have to walk to distant shops under the baking sun.

Mobile phones have been stolen along with computers and animals. Their flock of sheep is now kept in another place, hidden from sight.

‘This is our land’

“The situation has become really bad,” says Fatima. “Not just for us, but for the whole West Bank.”

And yet the family is determined to stay. “This is our land,” say both women, almost in unison. The brutal truth is also that they have nowhere else to go.

The West Bank is dotted with Israeli settlements, from top to bottom, some large and long-established, with thousands of residents and a sprawling infrastructure; some small and very new, with just a few caravans parked on a hilltop.

All of them are based on the idea of extending the reach of the Israeli state by placing its people all over the West Bank, or at least turning a blind eye to them moving there.

The fact that these settlements are, by widespread consent, illegal under international law has not stopped them from proliferating. Quite the opposite.

Not only are they growing in number and size, but the Israeli government is lending them ever more support and legitimacy.

Read more:
Inside the conflict forcing Palestinians from their homes
West Bank: The city locked down by armed troops

Bezalel Smotrich wants Israel to annex more than 82% of the West Bank. Pic: Reuters
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Bezalel Smotrich wants Israel to annex more than 82% of the West Bank. Pic: Reuters

Now, the far-right finance minister, Bezalel Smotrich, has declared that it’s time for Israel to annex more than 82% of the West Bank.

His logic can be summed up like this: we’re not safe with neighbours like this, and according to the Bible, it should be our land anyway.

Not everyone will agree, and perhaps most outside Israel will strongly disagree, but Smotrich is, as always, unapologetic and unabashed.

“Beyond our Biblical, historical and moral right to the entire land of Israel, the political and security role of sovereignty is to ensure that a Palestinian Arab terror state is never established in our land,” he said.

“Enemies should be fought, not provided with comfortable lives.”

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The West Bank has, for decades, been a crucible for ever-growing mistrust and dislike. It has seen waves of terrible violence and chronic divisions.

There is no sign of things improving, but plenty of suggestions that they are getting worse.

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‘Miss Palestine’ Nadeen Ayoub to compete in global pageant to show ‘we are human beings’

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'Miss Palestine' Nadeen Ayoub to compete in global pageant to show 'we are human beings'

A woman who will appear as Miss Palestine in a global beauty pageant has said she wants to represent her culture and “show the world that we are human beings”.

Nadeen Ayoub told Sky News she wants to “speak up about Palestine and to carry the voices of those that are unheard”.

Speaking on The World With Yalda Hakim, she said she became Miss Palestine in 2022 and will now head to Thailand in November to compete against dozens of others at Miss Universe.

“I don’t want people to be thinking when they hear the word Palestine, to just be thinking of suffering and pain,” said Ms Ayoub.

“So just like we hear the word ‘Italy’ and we think of beautiful things, like the Amalfi Coast and pizza and pasta.

“When we think of other nations, we think of their heritage and their culture and their identity, and we see them as human beings.

“I want the same thing for Palestine to show the world that we are human beings, and that is simply my message.”

Ms Ayoub was partly raised in the US and Canada and now reportedly splits her time between Dubai, Ramallah, and Amman.

She was supposed to compete in Miss Universe following success as Miss Palestine at another pageant in 2022.

However, she told Sky News she delayed her entry until now after the Hamas attack on Israel sparked the Gaza war.

The 27-year-old has been criticised by some for calling the dire situation there a “genocide” during an interview last month. Israel denies all accusations of genocide.

Among her critics is the runner-up in the Miss Israel contest, who questioned Ms Ayoub’s inclusion in November’s pageant and urged her to speak out against Hamas.

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Read more from Sky News:
At least 15 killed after Lisbon’s funicular derails

Mic catches Putin and Xi discussing organ transplants

“Miss Universe stands for unity, peace and co-existence – and if she stands for all of those things then let’s have it,” Adela Cojab Moadeb told the NY Post.

“I would welcome an advocate who stands against extremism and stands for the right of all people to exist.”

Ms Ayoub declined to comment in her Sky News interview, stressing her message is to “show the world that we Palestinians have an identity of creativity, of talents, of heritage, of culture”.

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