The chancellor has ruled out mortgage bill support for fear it would increase inflation.
Answering questions in the House of Commons, Jeremy Hunt told MPs that “schemes which involve injecting large amounts of cash into the economy, right now will be inflationary”.
Despite expressing sympathy for people with higher mortgage costs he said, “we won’t do anything that would mean we prolong inflation“.
He had been asked by Tory MPs about reintroducing a “bold Conservative idea” of mortgage interest relief at source, otherwise known as Miras, a 1980s policy that gave mortgage holders tax relief on their interest payments.
Both Mr Hunt and the economic secretary to the Treasury, Andrew Griffith, said such a policy introduction would worsen inflation.
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How will mortgage rises affect you?
Instead, Mr Hunt said he would meet the main mortgage lenders later this week, to ask them what help and flexibility they can offer to those struggling with expensive mortgages and householders in arrears.
The answers echo statements from Prime Minister Rishi Sunak and from Treasury sources who said the government goal of halving inflation would be derailed by financial supports for mortgage bills.
Mortgage payments have been consistently rising, particularly since May, when the consumer price index method of assessing inflation did not come down as far as expected and core inflation – the rate of price rises excluding the volatile food and energy sectors – increased to a 30-year-high.
As a result, it’s expected interest rates will be even higher than previously thought, as the Bank of England hikes its base interest rate to bring inflation down to 2%. The next likely rise will be made on Thursday.
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Mortgage providers are already pricing in that increase in the rates they’re offering and on Monday the interest rate on the average two-year deal rose to 6.01%.
Price caps on food were also ruled out by Mr Hunt in the Commons on Tuesday, following the news that the rate of grocery inflation was 16.5% over the four weeks to 11 June.
“I don’t believe capping prices is the right long term solution”, he said, but added he will be meeting regulators next week, “to talk further about what needs to be done with respect to supermarkets”, he said.
Twelve British soldiers were injured in a major traffic pile-up in Estonia, close to the border with Russia, local media have reported.
Eight of the troops – part of a major NATO mission to deter Russian aggression – were airlifted back to the UK for hospital treatment on Sunday after the incident, which happened in snowy conditions on Friday, it is understood.
Five of these personnel have since been discharged with three still being kept in the military wing of the Queen Elizabeth Hospital in Birmingham.
The crash happened at an intersection at around 5pm on Friday when the troops were travelling in three minibuses back to their base at Tapa.
Two civilian cars, driven by Estonians, are thought to have collided, triggering a chain reaction, with four other vehicles – comprising the three army Toyota minibuses and a third civilian car – piling into each other.
According to local media reports, the cars that initially collided were a Volvo S80, driven by a 37-year-old woman and a BMW 530D, driven by a 62-year-old woman.
The Estonian Postimees news site reported that 12 British soldiers were injured as well as five civilians. They were all taken to hospital by ambulance.
The British troops are serving in Estonia as part of Operation Cabrit, the UK’s contribution to NATO’s “enhanced forward presence” mission, which spans nations across the alliance’s eastern flank and is designed to deter attacks from Russia.
Around 900 British troops are deployed in Estonia, including a unit of Challenger 2 tanks.
A spokesperson for the Ministry of Defence said: “Several British soldiers deployed on Operation CABRIT in Estonia were injured in a road traffic incident last Friday, 22nd November.
“Following hospital treatment in Estonia, eight personnel were flown back to the UK on an RAF C-17 for further treatment.
“Five have since been discharged and three are being cared for at the Royal Centre for Defence Medicine, Queen Elizabeth Hospital Birmingham. We wish them all a speedy recovery.”
Defence Secretary John Healey said: “Following the road traffic incident involving British personnel in Estonia, my thoughts are with all those affected, and I wish those injured a full, swift recovery.
“Thanks to the Royal Centre for Defence Medicine at Queen Elizabeth Hospital Birmingham for their excellent care.”
Two Britons are believed to be among more than a dozen people missing after a boat sank in the Red Sea off the Egyptian coast.
The yacht, called Sea Story, had 44 people on board, including 31 tourists of varying nationalities and 13 crew.
Authorities are searching for 16 people, including 12 foreign nationals and four Egyptians, the governor of the Red Sea region said, adding that 28 other people had been rescued.
Preliminary reports suggested a sudden large wave struck the vessel, capsizing it within about five minutes, governor Amr Hanafi said.
“Some passengers were in their cabins, which is why they were unable to escape,” he added in a statement.
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Passengers rescued from sunken tourist boat
The people who were rescued only suffered minor injuries such as bruises and scrapes with none needing hospital treatment.
A Foreign, Commonwealth and Development office spokesperson said: “We are providing consular support to a number of British nationals and their families following an incident in Egypt and are in contact with the local authorities.”
The foreign nationals aboard the 34-metre-long vessel, owned by an Egyptian national, included Americans, Belgians, British, Chinese, Finns, Germans, Irish, Poles, Slovakians, Spanish, and Swiss.
Sea Story had no technical problems, obtained all required permits before the trip, and was last checked for naval safety in March, according to officials.
The four-deck, wooden-hulled motor yacht was part of a multi-day diving trip when it went down near the coastal town of Marsa Alam following warnings about rough weather.
Officials said a distress call was received at 5.30am local time on Monday.
The boat had left Port Ghalib in Marsa Alam on Sunday and was scheduled to reach its destination of Hurghada Marina on 29 November.
Some survivors had been airlifted to safety on a helicopter, officials said.
The firm that operates the yacht, Dive Pro Liveaboard in Hurghada, said it has no information on the matter.
According to its maker’s website, the Sea Story was built in 2022.
A motion has been filed to drop the charges against Donald Trump of plotting to overturn the 2020 US presidential election result.
Mr Trump was first indicted on four felonies in August 2023: Conspiracy to defraud the United States, conspiracy to obstruct an official proceeding, obstruction of and an attempt to obstruct an official proceeding, and conspiracy against rights.
The president-elect pleaded not guilty to all charges and the case was then put on hold for months as Mr Trump’s team argued he could not be prosecuted.
On Monday, prosecutors working with special counsel Jack Smith, who had led the investigation, asked a federal judge to dismiss the case over long-standing US justice department policy, dating back to the 1970s, that presidents cannot be prosecuted while in office.
It marks the end of the department’s landmark effort to hold Mr Trump accountable for the attack on the US Capitol on 6 January 2021 when thousands of Trump supporters assaulted police, broke through barricades, and swarmed the Capitol in a bid to prevent the US Congress from certifying Joe Biden’s 2020 election victory.
Trump plays blinder as accusers forced to turn blind eye over Capitol riots
In winning the White House, he avoids the so-called ‘big house’.
Whether or not prison was a prospect awaiting Donald Trump is a moot point now, as he now enjoys the protection of the presidency.
The delay strategy that he pursued through a grinding court process knocked his federal prosecution past the election date and when his numbers came up, he wasn’t going down.
Politically, and legally, he has played a blinder.
Mr Smith’s team had been assessing how to wind down both the election interference case and the separate classified documents case in the wake of Mr Trump’s election victory over vice president Kamala Harris earlier this month, effectively killing any chance of success for the case.
In court papers, prosecutors said “the [US] Constitution requires that this case be dismissed before the defendant is inaugurated”.
They said the ban [on prosecuting sitting presidents] “is categorical and does not turn on the gravity of the crimes charged, the strength of the government’s proof, or the merits of the prosecution, which the government stands fully behind”.
Mr Trump, who has said he would sack Mr Smith as soon as he takes office in January, and promised to pardon some convicted rioters, has long dismissed both the 2020 election interference case and the separate classified documents case as politically motivated.
He was accused of illegally keeping classified papers after leaving office in 2021, some of which were allegedly found in his Mar-a-Lago home in Florida.
The election interference case stalled after the US Supreme Court ruled in July that former presidents have broad immunity from prosecution, which Mr Trump’s lawyers exploited to demand the charges against him be dismissed.
Mr Smith’s request to drop the case still needs to be approved by US District Judge Tanya Chutkan.
At least 1,500 cases have been brought against those accused of trying to overthrow the election result on 6 January 2021, resulting in more than 1,100 convictions, the Associated Press said.
More than 950 defendants have been sentenced and 600 of them jailed for terms ranging from a few days to 22 years.