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Speaker Kevin McCarthy (R-Calif.) is trying to ramp up pressure on President Biden to negotiate a package of fiscal reforms in exchange for raising the debt limit, but Democrats still refuse to sit down with him, setting the stage for a high-stakes standoff this summer.  

McCarthy on Tuesday tried to kickstart negotiations by laying out his first broad proposals for spending reforms in a letter to Biden.  

He called for cutting nondefense discretionary spending, reclaiming unspent COVID-19 relief funding, strengthening work requirements for social safety net programs and creating policies to lower energy costs and secure the U.S.-Mexico border to stem the flow of illegal drugs. 

McCarthy accused the president of putting the economy at risk by refusing to address the nation’s $31 trillion debt.  

“I am incredibly concerned that you are putting an already fragile economy in jeopardy by insisting upon your extreme position of refusing to negotiate any meaningful changes to out-of-control government spending alongside an increase of the debt limit,” he wrote.   

But McCarthy also admitted Tuesday that he is growing pessimistic about reaching any deal with the White House, which has steadfastly ignored his calls for spending cuts and instead rolled out a budget proposal this month that called for nearly $5 trillion in tax increases.  

“I am more concerned than I have ever been to be able to get this debt ceiling done because he refuses to meet with anybody and misleads the American public,” McCarthy said of Biden in an interview with MSNBC on Tuesday. 

Democrats, meanwhile, say they won’t negotiate with McCarthy until he shows he has the votes to pass a package of fiscal reforms with top-line spending numbers.  

Senate Majority Leader Chuck Schumer (D-N.Y.) on Tuesday dismissed McCarthy’s letter as not doing anything to advance the discussion and said it showed the Speaker is feeling pressure to show conservatives in the House that he’s getting somewhere with the president.  

“I think he’s really feeling pressure, but he has no solution. So he keeps saying the same thing, ‘sit down and negotiate.’ But as I said, if you sit down and negotiate, we have a plan, he doesn’t. What are they going to do? Talk about the weather?” Schumer said, also calling McCarthy’s broad suggestions “vague” and “amorphous.”  

“No, he didn’t advance the ball. It was just another sign of the pressure he’s under but he’s not moving forward,” he added.  

Biden on Tuesday evening responded to McCarthy’s letter, asking him to submit a budget plan before Congress leaves for a two-week recess on Thursday “so that we can have an in-depth conversation when you return.”

But he added, “As I have repeatedly said, that conversation must be separate from prompt action on the Congress’ basic obligation to pay the Nation’s bills and avoid economic catastrophe.”

Rep. Patrick McHenry (R-N.C.), one of McCarthy’s closest friends in the House, told Punchbowl Tuesday that the Speaker is losing hope of getting anywhere with Biden. 

“I’ve never seen him more pessimistic about an issue than he is about the debt ceiling increase,” he said. “At the moment, I don’t see how we get there. And this a marked change from where I’ve been.” 

McHenry said he didn’t “even see a path” to a debt ceiling agreement.  

There’s a growing expectation among senators in both parties that Biden and McCarthy won’t be able to come to any debt limit agreement, and that Senate Minority Leader Mitch McConnell (R-Ky.) will step in later this year to cut a deal to avoid a national default, as he has done in the past.  

Republican lawmakers say McCarthy needed to do something to get the stalled talks moving. He and Biden last met at the White House on Feb. 1.  

“I think it’s a good move. Let’s get people back to the table again, and hopefully this will act as a jumpstart,” Senate Republican Whip John Thune (S.D.) said.  

Members discussed McCarthy’s letter during a House GOP conference meeting on Tuesday morning, and Republicans across the ideological spectrum expressed approval of McCarthy’s outline — including members of the House Freedom Caucus and allied hard-line members. 

“I extend my gratitude to Mr. McCarthy, Speaker McCarthy,” said Rep. Andy Biggs (R-Ariz.), a former chairman of the House Freedom Caucus. “His letter to President Biden this morning is a positive move.” 

“The conference is united. Speaker McCarthy in this conference is largely saying the same thing, talking about cutting 3 to 4 trillion dollars in spending, going back to 2019 nondefense discretionary spending, ’20 to ’22 spending overall,” said Rep. Bob Good (R-Va.).  

Republicans also derided the White House for seeming to attempt to run out the clock by refusing to sit down with McCarthy. That would then put pressure on Republicans to agree to a clean debt ceiling increase over the summer, possibly only days away from a default.   

“I also don’t know why the President feels that it’s important to wait. That seems like a delay tactic,” said Rep. Dusty Johnson (R-S.D.), chairman of the Main Street Caucus.  

 Schumer says Democrats have a plan: to vote and pass a clean bill to raise the debt limit.  

And Democrats point out that Biden submitted his $6.8 trillion budget plan to Congress on March 9.  

 Schumer also criticized McCarthy for calling for trillions of dollars in spending reforms without laying out in more detail how he would achieve those savings.  

“Today he said, ‘What about $4 trillion in cuts?’ Well, what are they? A number is not a plan, especially a plan that is so vague and amorphous,” he told reporters. “The reason he doesn’t want to do it in my humble judgment is that he can’t get 218 votes for any plan.”  

But McCarthy argued Schumer does not yet having the votes to pass a clean debt ceiling increase — necessitating the need for negotiation with Biden. 

“If they think they can just raise the debt limit, why don’t they do it in the Senate tomorrow?” McCarthy said. 

White House press secretary Karine Jean-Pierre noted in a statement Tuesday that Republicans agreed to pass clean debt limit increases three times under former President Trump.   Man stops traffic to help teacher, children escape Nashville school shooting Florida board bans ‘This Book Is Gay’ from middle school libraries

“Business leaders and economists have warned that the threat of a default risks the livelihoods of American small businesses, retirees, and working families and would hand a massive win to China — and recent events underscore the need for Congress to address the debt limit as soon as possible. It’s time for Republicans to stop playing games, pass a clean debt ceiling bill, and quit threatening our economic recovery,” she said.  

Thune, who is standing in for McConnell while the Kentucky lawmaker recuperates from a concussion, said McCarthy didn’t coordinate his letter ahead of time with Senate Republicans but said his proposals will attract broad GOP support.  

“I know that he’s working with his members … I think those are all items that there’d probably be general, pretty broad agreement among Republicans in both the House and Senate on,” he said. 

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Entertainment

Olivier Awards: US actor says ‘special relationship firmly intact’ despite Trump’s tariffs

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Olivier Awards: US actor says 'special relationship firmly intact' despite Trump's tariffs

British star Lesley Manville and American actor John Lithgow have won the acting categories at this year’s Olivier Awards, which recognise excellence in London theatre.

Lithgow, 79, played Roald Dahl in Giant, which is about the children’s author wondering whether to make a public apology.

While accepting his award he appeared to reference the current controversy over Donald Trump’s second term as US president.

The Conclave star quipped: “It’s not always easy to welcome an American into your midst, and at this particular moment, it’s probably a little more complicated than usual.”

He also told the audience at the Royal Albert Hall that the “special relationship is still firmly intact”, despite Mr Trump imposing tariffs on British exports to the US.

His co-star, English actor Elliot Levey, took best actor in a supporting role.

Giant was also named best new play.

Lesley Manville was best actress. Pic: PA
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Lesley Manville was best actress. Pic: PA

Manville, 69, was honoured for her performance in the Greek tragedy Oedipus at the Wyndham’s Theatre.

She said she felt “emotional” while accepting her statuette because it was a production she had “felt very strongly about being” in.

Manville, who played Princess Margaret in The Crown, added that she was taking an early flight to Dublin on Monday to do some filming, and would not be getting “much sleep tonight”.

Romola Garai was best actress in a supporting role. Pic: PA
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Romola Garai was best actress in a supporting role. Pic: PA

Best actress in a supporting role went to Romola Garai for her performance in The Years, based on a memoir by French writer Annie Ernaux.

Garai, whose film credits include Scoop and Atonement, was nominated in the same category for Giant.

Elliot Levey was best actor in a supporting role. Pic: PA
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Elliot Levey was best actor in a supporting role. Pic: PA

Dame Imelda Staunton won a fifth Olivier, for best actress in a musical for the London revival of classic musical Hello, Dolly!

The Curious Case Of Benjamin Button won best new musical, a best actor musical award for Lark Rise To Candleford actor John Dagleish, and the outstanding musical contribution award.

The annual event was co-hosted by British singer Beverley Knight and Pose star Billy Porter.

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UK

Suspended surgeon at Addenbrooke’s Hospital in Cambridge named

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Suspended surgeon at Addenbrooke's Hospital in Cambridge named

The suspended surgeon at Addenbrooke’s Hospital in Cambridge has been named as paediatric consultant Kuldeep Stohr.

Eight hundred patients operated on by Ms Stohr are having their cases urgently re-examined, after an external review found nine children whose care fell below expected standards.

The initial review was ordered after concerns were raised by her colleagues.

Sky News has seen a copy of the interim report which details several issues relating to complex hip surgeries performed by the surgeon.

One of the parents whose child was identified in the review showed us a recent letter from the hospital which reported “problems with both judgement and technique” in her child’s surgery.

Ms Stohr, who has been suspended since the end of January, said in a statement: “I always strive to provide the highest standards of care to all my patients.

“I am co-operating fully with the trust investigation and it would not be appropriate to comment further at this time.”

Tammy Harrison
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Tammy Harrison: ‘It was hell’

Left in agonising pain

Tammy Harrison, 12, has cerebral palsy and had surgeries carried out by Ms Stohr. Her operations didn’t work, leaving her in agonising pain.

She said: “My first one was just like trauma. I couldn’t get out of bed for eight weeks. I was either stuck in bed or stuck on the sofa. It was hell.”

Her mum, Lynn, told Sky News: “There is nothing that can put Tammy back to where she was now and that’s the sad thing.

“If I could just click my fingers and have the child back that I had I would do it with a blink of an eye.”

Lynn Harrison
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Ms Stohr operated on Lynn Harrison’s daughter

So far, there’s been no confirmation of any wrongdoing in Tammy’s care.

But her family have a meeting at the hospital this week to find out more.

Read more from Sky News:
Who are the two MPs deported by Israel?
Father and daughter who died in caravan park fire named

The trust has asked a panel of specialist clinicians to review all the planned operations carried out by Ms Stohr at Addenbrooke’s. One hundred emergency trauma cases will also be looked at.

Addenbrooke’s is a major regional trauma centre and treats serious emergency patients from all over the region.

One clinician at the hospital told Sky News that the review of so many patients was “creating a lot of extra work”, which was “slowing things down” for other patients awaiting treatment.

Addenbrooke's Hospital. File pic: PA
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Addenbrooke’s Hospital. File pic: PA

At least one extra locum consultant has been helping the team, as they work through the caseload.

Trust apologises

Sky News has been told Cambridge University Hospitals Trust had wanted to identify Ms Stohr before but had been threatened with a legal injunction.

The trust has apologised unreservedly to families and patients. But what’s troubling many is the fact concerns were raised about Ms Stohr a decade ago.

Chief executive of Cambridge University Hospitals Trust, Roland Sinker, has set up another review to examine whether opportunities were missed, and action could have been taken sooner.

The Department of Health described the ongoing situation as “incredibly concerning.”

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U.S. crude oil falls below $60 a barrel to lowest since 2021 on tariff-fueled recession fears

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U.S. crude oil falls below  a barrel to lowest since 2021 on tariff-fueled recession fears

A view shows disused oil pump jacks at the Airankol oil field operated by Caspiy Neft in the Atyrau Region, Kazakhstan April 2, 2025. 

Pavel Mikheyev | Reuters

U.S. oil prices dropped below $60 a barrel on Sunday on fears President Donald Trump’s global tariffs would push the U.S., and maybe the world, into a recession.

Futures tied to U.S. West Texas intermediate crude fell more than 3% to $59.74 on Sunday night. The move comes after back-to-back 6% declines last week. WTI is now at the lowest since April 2021.

Worries are mounting that tariffs could lead to higher prices for businesses, which could lead to a slowdown in economic activity that would ultimately hurt demand for oil.

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Oil futures, 5 years

The tariffs, which are set to take effect this week, “would likely push the U.S. and possibly global economy into recession this year,” according to JPMorgan. The firm on Thursday raised its odds of a recession this year to 60% following the tariff rollout, up from 40%.

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