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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.

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.

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‘I’m not so careful with what I say’ – is Trump feeling more invincible than ever?

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'I'm not so careful with what I say' - is Trump feeling more invincible than ever?

It was one sentence among the many words Donald Trump spoke this week that caught my attention.

Midway through a jaw-dropping news conference where he sensationally claimed to have “found an answer on autism”, he said: “Bobby (Kennedy) wants to be very careful with what he says, but I’m not so careful with what I say.”

The US president has gone from pushing the envelope to completely unfiltered.

Last Sunday, moments after Charlie Kirk‘s widow Erika had publicly forgiven her husband’s killer, Mr Trump told the congregation at his memorial service that he “hates his opponents”.

President Donald Trump embraces Charlie Kirk's widow Erika. Pic: AP
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President Donald Trump embraces Charlie Kirk’s widow Erika. Pic: AP

Twenty-four hours later, he drew fierce rebuke from medical experts by linking the use of Tylenol (paracetamol) during pregnancy to increased risk of autism.

The president treats professional disapproval not as a liability but as evidence of authenticity, fuelling the aura that he is a challenger of conventions.

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‘Paracetamol use in pregnancy perfectly safe’

On Tuesday, he went to the United Nations, where his frustrations over a stalled escalator and teleprompter failure were the prelude to the most combative address.

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“I’m really good at this stuff. Your countries are going to hell,” he told his audience, deriding Europe’s approach to immigration as a “failed experiment of open borders”.

Mr Trump addresses the UN General Assembly in New York. Pic: Reuters
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Mr Trump addresses the UN General Assembly in New York. Pic: Reuters

Then came a U-turn on Ukraine, suggesting the country could win back all the land it has lost to Russia.

Most politicians would be punished for inconsistency, but Mr Trump recasts this as strategic genius – framing himself as dictating the terms.

It is hard to keep track when his expressed hopes for peace in Ukraine and Gaza are peppered with social media posts condemning the return of Jimmy Kimmel to late-night television.

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Trump’s major shift in Ukraine policy

Perhaps most striking of all is his reaction to the indictment of James Comey, the FBI director he fired during his first term.

In theory, this should raise questions about the president’s past conflicts with law enforcement, but he frames it as vindication, proof that his enemies fall while he survives.

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Ex-FBI chief: ‘Costs to standing up to Trump’

Mr Trump has spent much of his political career cultivating an image of a man above the normal consequences of politics, law or diplomacy, but he appears to feel more invincible than ever.

Read more from Sky News:
Musk and Prince Andrew named in latest Epstein files
Trump: ‘Looks like we have a deal’ to end war in Gaza

From funerals to world summits, world peace to public health, he projects the same image: rules are for others.

It is the politics of the untouchable.

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Russia launches massive attack on Kyiv – as Poland scrambles jets and closes airspace

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Russia launches massive attack on Kyiv - as Poland scrambles jets and closes airspace

Russia has launched a massive drone attack on Ukraine’s capital this morning, injuring at least six people, Kyiv’s military administration has said.

Poland closed the airspace near two of its southeastern cities, Lublin and Rzeszow, as its air force scrambled jets in response to Russia’s attack on Kyiv.

Drones flew over Kyiv and anti-aircraft fire rang out through the night in what independent monitors said was one of the biggest strikes on the city since the Ukraine war began in February 2022.

The attack started at around 6am local time and many regions across the country are under air raid alert.

Some residents have fled to metro stations deep underground for safety as the attack continues.

Poland said it had closed its airspace near the two cities until at least 4am GMT due to “unplanned military activity related to ensuring state security”, flight tracking service Flightradar24 said.

“In connection with the activity of the Russian Federation’s long-range aviation carrying out strikes on the territory of
Ukraine, Polish and allied aircraft have begun operating in our airspace,” the military said in a post on X.

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It described the actions as preventive and aimed at securing airspace and protecting citizens.

It comes as Russian foreign minister Sergei Lavrov was expected to address allegations made against Moscow that it has violated the airspace of several of its neighbours in recent weeks, as he spoke in New York at the 80th UN General Assembly.

A NATO air defence mission was recently carried out over Poland in response to “unprecedented” Russian drone incursions above the country.

During his address, Mr Lavrov, who has been Russia’s foreign minister for 21 years, says his country had no intention of attacking any NATO or EU member state but warned of a “decisive response” if any “aggression” was directed towards Moscow.

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Sergei Lavrov warns NATO and EU countries over ‘aggression’ towards Russia

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Sergei Lavrov warns NATO and EU countries over 'aggression' towards Russia

Vladimir Putin’s top diplomat says Russia has no intention of attacking any NATO or EU member state but warned of a “decisive response” if any “aggression” was directed towards Moscow.

Sergei Lavrov, Russia‘s foreign minister of 21 years, was speaking in New York at the 80th UN General Assembly, where he said threats against his country by Western nations were becoming “increasingly common”.

He was expected to address allegations made against Moscow that it has violated the airspace of several of its neighbours in recent weeks, heightening tensions across Europe.

Estonia said Russian fighter jets flew into its airspace last week and remained there for 12 minutes, while a NATO air defence mission was recently carried out over Poland in response to “unprecedented” Russian drone incursions above the country.

Romania and Latvia also reported that single Russian drones had violated their airspace this month.

“Threats of force against Russia, accused of practically planning an attack on the North Atlantic Alliance and the European Union, are becoming increasingly common,” Mr Lavrov said in New York.

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“President Putin has repeatedly debunked such provocations. Russia has never had and does not have such intentions, but any aggression against my country will be met with a decisive response.”

At the start of the week, US President Donald Trump told the UN that NATO nations should shoot down Russian planes in their airspace.

‘They will regret it’

After his UN address, Mr Lavrov held a news conference, where he insisted again that Moscow “has nothing to hide” over the allegations against it.

He was then asked by US correspondent Mark Stone what the Kremlin’s response would be if a nation shot down a Russian drone or plane in Russian airspace.

“Try to understand that a drone, when it is flying not over our territory, but if it crosses someone’s border but has left our airspace, probably everyone has the right to do with that drone whatever they consider necessary to ensure their security.

“But if there are attempts to shoot down any flying object, or indeed any object at all, on our territory, in our airspace, then I think people will seriously regret it, undertaking such a gross violation of our territorial integrity, our sovereignty.”

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Watch: Sergei Lavrov answers Sky News question in New York

‘Hypocrisy’ over Gaza comments

At the start of his UN speech, Mr Lavrov took time to criticise Israel’s actions in the Middle East, accusing it of trying to “blow up” the region and saying it had “no justification” for the “brutal killings” of Palestinians in Gaza.

“The illegal use of force against the Palestinians and aggressive actions against Iran, Qatar, Yemen, Lebanon, Syria and Iraq today threaten to blow up the entire Middle East.”

He also hit out at Israeli plans to annex the West Bank: “There is no justification for plans to annex the West Bank. This is essentially a coup d’etat in diplomatic terms.”

Israel has repeatedly claimed that it does not target civilians in Gaza and says its military actions across the Middle East are strategically vital for its self-defence.

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Mark Stone reflects on Sergei Lavrov’s UN address

Mark Stone said Mr Lavrov’s comments on Israel’s actions will be seen as highly hypocritical given Russia’s war in Ukraine which began in February 2022.

“Lavrov said Israel is bombing schools, it is bombing hospitals in Gaza,” Stone said.

“Well, remember Mariupol and the rest of those cities in Ukraine, where Russia has and continues to do just the same thing? There’s a certain hypocrisy there, for sure.”

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