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The home secretary has said that “we’re not going to save the planet by bankrupting the British people” in response to reports the government is looking at watering down some of its key green pledges

Among the changes being considering are the pushing back of a ban on the sales of new vehicles with internal combustion engines (ICE) from 2030 to 2035 – and a weakening of plans to phase out gas boilers by 2035.

Suella Braverman told Sky News that, while the government remains committed to the goal of achieving net zero greenhouse gas emissions by 2050, “we need to put economic growth first”.

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“We need to put household costs and budgets first. We need to put the cost of living first,” she added.

“And we’re only going to achieve that net zero target whereby people and the British people can go about their daily lives using their cars, using the facilities that are available.”

The chair of Ford UK says a delay to the 2030 deadline for selling ICE vehicles would undermine the “ambition, commitment and consistency” they need from the UK government.

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The 2030 ban on ICE vehicles is considered a key plank of the government’s goal of achieving net zero because experts say it will encourage people to switch to zero-emission electric vehicles sooner.

Climate scientists say that urgent cuts are needed to the world’s greenhouse gas emissions if we are to stop temperatures rising to a potentially catastrophic extent.

Prime Minister Rishi Sunak is set to lay out further details of his plans in a speech in the coming days. The reported change in stance has led at least one Tory MP to “seriously” consider putting in a letter of no confidence in Mr Sunak’s leadership.

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In a statement, Mr Sunak said: “No leak will stop me beginning the process of telling the country how and why we need to change.

“As a first step, I’ll be giving a speech this week to set out an important long-term decision we need to make so our country becomes the place I know we all want it to be for our children.”

Conservative MPs are particularly angry at the potential delay to the ending of the sale of internal combustion engines to 2035.

One branded the move “anti-business” given how much has been invested into electric vehicles (EV) and the associated infrastructure.

Could watering down net zero pledges trigger Tory civil war?



Mhari Aurora

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An unusual late-night statement from the prime minister triggered by leaks to the media regarding the government’s plans to water down its net zero pledges: Rishi Sunak is continuing to draw the battlelines for the next general election.

Green policy is a contentious topic for both main parties – Keir Starmer, like Sunak, has been heavily criticised for abandoning his green pledges.

But as politicians struggle to balance the cost of going green with boosting the UK’s recovering economy, how much political pain could this really inflict on the prime minister?

Despite a vocal group of critics, behind the scenes many Tory MPs are keen on the climbdown.

One Tory backbencher told Sky News that being “pragmatic and outcome-focused beats virtue signalling every time”.

And Marco Longhi, a Tory MP with a red wall constituency, told me the PM’s decision was extremely welcome.

He said: “While fully behind efforts to deliver a greener planet I am not going to support policies that are only affordable by the richest.”

And at a time when the Conservative party is 19 points behind in the polls – with Labour on 44 points and the Tories lagging on 26 points – Rishi Sunak is keen to make some bold policy decisions in an attempt to close that gap.

However, it remains to be seen whether this is the smartest policy area in which to do that.

According to a YouGov poll from August, 33% of those surveyed said they believe the government should be spending more on the environment and climate change, and 49% believe Sunak’s government isn’t doing enough to reduce carbon emissions.

So, with tentative public support for a green economy, Sunak’s predicted climbdown is an electoral gamble he will be hoping pays off at the ballot box.

They told Sky’s deputy political editor Sam Coates that a push back on the petrol and diesel ban would mean breaking a promise the prime minister made to Conservative MPs privately.

One minister said they would be “staggered” if the ban was delayed, telling Sky News: “Every automotive company is investing in EV, we’ve just given Tata all this money to make batteries, it’s bonkers.”

He was referring to plans by the owner of Jaguar Land Rover to build an electric car battery factory in the UK.

Tory MPs Chris Skidmore, Alok Sharma and Sir Simon Clarke all complained publicly about the potential watering down of the pledges.

Lisa Brankin, the chair of Ford UK, highlighted that her company had invested £430m in UK development and manufacturing facilities, with more cash to come to fit the 2030 timeframe.

Ms Brankin said: “This is the biggest industry transformation in over a century and the UK 2030 target is a vital catalyst to accelerate Ford into a cleaner future.

“Our business needs three things from the UK government: ambition, commitment and consistency. A relaxation of 2030 would undermine all three.

“We need the policy focus trained on bolstering the EV market in the short term and supporting consumers while headwinds are strong: infrastructure remains immature, tariffs loom and cost-of-living is high.”

A spokesperson for Jaguar Land Rover said: “We are committed to and on track to offer pure electric variants across our brands by 2030 and welcome certainty around legislation for the end of sale of petrol and diesel powered cars.

“We are investing £15bn over the next five years to electrify our luxury brands, which is key to JLR reaching net zero carbon emissions across our supply chain, products, and operations by 2039.”

Stellantis, the owner of Vauxhall, Fiat, Alfa Romeo and DS said: “Clarity is required from Governments on important legislation, especially environmental issues that impact society as a whole.”

BMW MINI, which announced plans to construct its electric Mini in Oxford, said it “neither sought or was made any promises” about the timings of an ICE ban when the decision was made.

Asked about the EV industry, Ms Braverman said: “I’m not going to prejudge what the prime minister is going to set out in detail.

Read more:
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“But I would say I do commend him for taking difficult decisions, long-term decisions in the national interest and in the interest of the British people.”

Asked about the concerns raised by her Conservative MPs, Ms Braverman said “everyone should just wait until they hear the detail from the prime minister himself”.

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Darren Jones, Labour’s shadow chief secretary to the Treasury, said we will need to wait for the reaction of the car companies to the anticipated policy change.

He told Sky News that “part of the problem” is Mr Sunak’s “weak leadership”, and the way in which the changes first surfaced through a leak and with a “late night press release from the prime minister’s bunker”.

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Thwarted Telegraph suitor Efune says ‘British bid is best’

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Thwarted Telegraph suitor Efune says 'British bid is best'

The British-born newspaper-owner whose takeover of The Daily Telegraph appears to have been thwarted by a £500m deal with RedBird Capital Partners has called on the title’s stakeholders to rally behind his bid instead.

In an opinion piece to be published later on Friday, Dovid Efune, publisher of The New York Sun, will say that his offer is “now within sight of the finish line, with the bulk of the needed funding committed”.

Mr Efune has been assembling a bid for the right-leaning newspapers for months, with a series of funding options having been explored.

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He now has backing from Nadhim Zahawi, the former Conservative Cabinet minister whose interest in the Telegraph was revealed last year by Sky News, and Jeremy Hosking, a prominent and wealthy City investor.

In his opinion piece, Mr Efune described the Telegraph as a “crown jewel”, adding that British journalism was the envy of the world.

“It is no coincidence that a meaningful portion of America’s largest newsrooms are run by British journalists,” he wrote in a piece shared exclusively with Sky News.

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“These include the Wall Street Journal, the Washington Post and CNN.

“You might say that journalists, editors and journalism writ large are among Britain’s greatest exports.”

Referring to the Barclay family, which owned the Telegraph for about two decades, Mr Efune said the newspapers had “functioned as something of a piggy bank for its previous owners, and as a useful form of real estate collateral”.

“The Telegraph’s achievements and advancements despite these handicaps are impressive. But it deserves better,” he wrote.

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Mr Efune said the £500m RedBird takeover – which is likely to involve minority ownership stakes for Abu Dhabi state-backed IMI and Lord Rothermere, the Daily Mail proprietor – had “significant hurdles to overcome”.

“Since The Telegraph first came on the market I’ve dedicated much time and resources to finding a solution,” he said.

“Some details of these efforts have become public. Much has not.

“In particular, I’ve sought to recruit the best-suited investor group to step into the fray.

“That means fully aligned partners, committed to the work of unlocking The Telegraph’s significant potential.”

He described the process as “a turbulent undertaking” which had “faced unwelcome interference along the way”.

“Our group is unique in that, firstly, it is distinctly British, with, as of this moment, the leadership and vast majority of funders being British citizens.

“I, for one, was born in Manchester and raised in Brighton.

“My family owes a great debt of gratitude to this country.

“My grandmother was saved by Britain’s grace and welcome at the age of nine, fleeing Nazi Germany on the Kindertransport.”

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Mr Efune said his family had made a significant contribution to the UK, with his grandfather, Peter Kalms, helping to build the electrical goods retailer Dixons into a household name.

“My great uncle Michael was killed as a tail-gunner in a Lancaster Bomber over Germany.

Mr Efune described his backers as “accomplished British patriots who care deeply about The Telegraph’s future”.

“Our acquisition group is also distinctly devoted to journalism,” he wrote.

“We don’t come with a team of financial engineers or restructuring gurus.

“We’re seasoned and committed newspaper builders, and have a detailed and clear vision for The Telegraph’s growth. We will pursue it vigorously.

“This includes specific and in some cases significant improvement strategies on the nuts and bolts of each of the primary revenue pillars of the business.

“In our view, the oft-heard moniker “Torygraph” far undersells this opportunity.

“In its soul, the paper that braved the Blitz and trumpeted the wartime speeches of Churchill bears a far higher calling.

“It is independent, pugnacious, meticulous, unapologetic and free.

“It is the journalistic bulwark of Western civilisation and a living reminder of Britain’s great gifts to humanity.

Mr Efune added that in a world characterised by turbulent geopolitics, “the need for The Telegraph’s elevation couldn’t be greater”.

“Many beacons of the Western press have dimmed, and we are all poorer as a result.

“The Telegraph’s time is now. Its horizons are endless.

“We’re confident our British group represents the best custodianship of this national treasure by some distance.”

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British taxpayers’ £10.2bn loss on bailout of RBS

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British taxpayers' £10.2bn loss on bailout of RBS

British taxpayers are set to swallow a loss of just over £10bn on the 2008 rescue of Royal Bank of Scotland (RBS) as the government prepares to confirm that it has offloaded its last-remaining shares in the lender as soon as next week.

Sky News can reveal the ultimate cost to the UK of saving RBS – now NatWest Group – from insolvency is expected to come in at about £10.2bn once the proceeds of share sales, dividends and fees associated with the stake are aggregated.

The final bill will draw a line under one of the most notorious bank bailouts ever orchestrated, and comes nearly 17 years after the then chancellor, Lord Darling, conducted what RBS’s boss at the time, Fred Goodwin, labelled “a drive-by shooting”.

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Insiders believe a statement confirming the final shares have been sold could come in the latter part of next week, although there is a chance that timetable could be extended by a number of days.

The chancellor, Rachel Reeves, is likely to make a statement about the milestone, although insiders say the Treasury and the bank are keen to simply mark the occasion by thanking British taxpayers for their protracted support.

A stock exchange filing disclosing that taxpayers’ stake had fallen below 1% was made last week, down from over 80% in the years after the £45.5bn bailout.

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The stake now stands at 0.26%, meaning the final shares could be offloaded as early as the middle of next week, depending upon demand.

Total proceeds from a government trading plan launched in 2021 to drip-feed NatWest stock into the market have so far reached £12.8bn.

Based on the bank’s current share price, the remaining shares should fetch in the region of £400m, taking the figure to £13.2bn.

In addition, institutional share sales and direct buybacks by NatWest of government-held stock have yielded a further £11.5bn.

Dividend payments to the Treasury during its ownership have totalled £4.9bn, while fees and other payments have generated another £5.6bn.

In aggregate, that means total proceeds from NatWest since 2008 are expected to hit £35.3bn.

Under Rick Haythornthwaite and Paul Thwaite, now the bank’s chairman and chief executive respectively, NatWest is now focused on driving growth across its business.

It recently tabled an £11bn bid to buy Santander UK, according to the Financial Times, although no talks are ongoing.

Mr Thwaite replaced Dame Alison Rose, who left amid the crisis sparked by the debanking scandal involving Nigel Farage, the Reform UK leader.

Sky News recently revealed that the bank and Mr Farage had reached an undisclosed settlement.

During the first five years of NatWest’s period in majority state ownership, the bank was run by Sir Stephen Hester, now the chairman of easyJet.

Sir Stephen stepped down amid tensions with the then chancellor, George Osborne, about how RBS – as it then was – should be run.

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Lloyds Banking Group was also in partial state ownership for years, although taxpayers reaped a net gain of about £900m from that period.

Other lenders nationalised during the crisis included Bradford & Bingley, the bulk of which was sold to Santander UK, and Northern Rock, part of which was sold to Virgin Money – which in turn has been acquired by Nationwide.

NatWest declined to comment on Friday, while the Treasury has been contacted for comment.

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Energy price cap: Typical yearly energy bill to fall by £129 from July, Ofgem announces

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Energy price cap: Typical yearly energy bill to fall by £129 from July, Ofgem announces

Households on the energy price cap will see a 7% reduction in their average annual payments from 1 July, the industry regulator has announced while urging households to seek out the “better deals out there”.

The default cap – which is reviewed every three months – will see a typical household using gas and electricity and paying by Direct Debit stump up an average annual £1,720, Ofgem said.

That is down from the current April-June figure of £1,849 and reflects a reduction in wholesale gas prices.

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The lower cap, however, will be £152 higher than the same three-month period last year.

It does not affect the millions of households to have taken a time-limited fixed deal.

Nevertheless, it represents some relief for families grappling with the cost of living aftershock that saw many essential bills rise by well above the rate of inflation last month.

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Cost of living impacts families

Ofgem also confirmed further bill savings through a £19 average cut, from July, in standing charges for households paying by both direct debit and prepayment, following an operating cost and debt allowances review.

The price cap does not limit total bills because householders still pay for the amount of energy they consume.

The watchdog’s announcements were made just days after fresh forecasts suggested that bills linked to the cap could come down further from both October and January, given recent wholesale market price trends.

Industry data specialist Cornwall Insight estimated on Friday that the price cap was currently on course to rise only slightly in October – by less than £1 a month.

Wholesale gas costs last winter had been relatively stable until a cold snap hit much of Europe in January and early February, driving up demand at a time of weaker stocks.

Other risk factors ahead include extended EU gas storage rules and global conflicts, not least the continuing Russia-Ukraine war that sparked the 2022 energy price spike and cost of living crisis in the first place.

Tim Jarvis, director general of markets at Ofgem, said: “A fall in the price cap will be welcome news for consumers, and reflects a reduction in the international price of wholesale gas. However, we’re acutely aware that prices remain high, and some continue to struggle with the cost of energy.

“The first thing I want to remind people is that you don’t have to pay the price cap – there are better deals out there, so it’s important to shop around, and talk to your existing supplier about the best deal they can offer you. And changing your payment method to direct debit or smart pay as you go can save you up to £136.”

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Ofgem said that a minority of homes, 35%, were on a fixed rate deal.

Price comparison sites lined up after the price cap announcement to urge households still on the default tariff to investigate a switch.

Tom Lyon, director at Compare the Market said: “If anyone is worried about potentially higher energy bills later this year, they could consider locking in a fixed rate deal now.

“Fixed rate deals also protect you from price hikes if the oil and gas markets are volatile. Beyond your energy bills, it’s important to search and compare other household bills, such as your car insurance, credit cards, or broadband, to see if you can make savings.”

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