Chancellor Jeremy Hunt sets out stall to halt ‘vicious circle’ of tax hikes as pressure mounts
Chancellor Jeremy Hunt has vowed to tackle the “vicious circle of ever-rising taxes” by revamping public services and the welfare system.
The cabinet minister argued the state needed to become “more productive”, not bigger, as he pointed to the use of artificial intelligence to realise frontline efficiencies and reduce the burden on the public purse.
He also said the government was looking at welfare changes, with 100,000 people a year moving off work on to benefits “without any obligation” to look for a job.
Mr Hunt made his comments as the Conservative Party annual conference gets under way in Manchester this weekend, with some senior party figures demanding tax cuts.
It follows a report published this week that said the Tories will have overseen, between the 2019 election and the next general election, the biggest set of tax rises since at least the Second World War.
Analysis by the Institute for Fiscal Studies (IFS) thinktank said taxes will have increased to around 37% of national income, equivalent to around £3,500 more per household.
But despite the growing pressure, Mr Hunt told The Times newspaper: “We’re not in a position to talk about tax cuts at all.”
He added: “We need a more productive state, not a bigger state.”
“We need a state that doesn’t just deliver the services it currently delivers, but actually improves the services it delivers and recognises that there’s going to be more calls on those services with an ageing population,” he said.
“But we need to find a formula that doesn’t mean that we’re on a vicious circle of ever-rising taxes.”
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More than 30 Tory MPs, including Liz Truss, Prime Minister Rishi Sunak’s short-lived predecessor, and former home secretary Dame Priti Patel, have vowed not to back further tax hikes.
Ms Truss, whose mini-budget 12 months ago triggered market turmoil in response to unfunded tax cuts and ultimately forced her from office, tweeted on Friday: “We should always seek to reduce the tax burden, especially when there’s so much pressure on family budgets.”
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In his Times interview, Mr Hunt also called for a more upbeat tone about the economy and said people needed to “shrug off a bit of the pessimism”.
Mr Hunt, who took over from Ms Truss’s sacked chancellor Kwasi Kwarteng, said: “When I started the job there was a lot of doom and gloom about Britain, our prospects.
“What I have realised now nearly a year on is that there is just far too much declinism.
“If you look at the fundamentals of the British economy we have had our setbacks like everyone else, we are the fastest-growing large European country, not just since the pandemic but since Brexit, since 2010.
“That’s a period when we’ve had a once-in-a-century pandemic, a global financial crisis that we were particularly exposed to, and a 1970s-style energy shock. Despite all of that the British economy has been very resilient.”
His remarks came after it was revealed the UK economy grew faster than had first been thought between January and March this year.
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Data published by the Office for National Statistics shows UK economic growth was 0.3% from January to March, better than the 0.1% first announced.
The revision put the country’s economy ahead of both Germany and France in terms of post-pandemic performance but behind allies such as the United States, Canada, Japan and Italy.
Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.
A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.
The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.
He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.
Ellis Cox who was shot dead in June 2024. Pic: Merseyside Police
His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.
“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.
“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”
Mum Carolyn Cox (left) and aunt Julie O’Toole (right) are looking for answers
Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.
To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.
DCI Steve McGrath does not believe Ellis was involved in criminality
Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.
“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.
He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.
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Mrs Cox also appealed for people to come forward with information.
“If you know anything, don’t let us get to [his] next birthday and still know nothing.
“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”
UK
Reward of £20,000 offered to identify parents of three siblings abandoned as babies over eight years
A £20,000 reward is being offered for information that leads to the identification of the parents of three siblings found abandoned in London over eight years.
The Metropolitan Police said that despite more than 450 hours of CCTV being reviewed, the parents of the three children, known as Elsa, Roman and Harry, remain unidentified.
However, it is believed their mother has lived in an area of east London “over the past six years”.
Elsa was believed to be less than an hour old when she was found by a dog walker on 18 January last year, in East Ham, east London.
In the months that followed it was found that she had two siblings who were also abandoned in similar circumstances, in the same area of London, in 2017 and 2019.
On Saturday, police said the independent group Crimestoppers had offered a £20,000 reward for information passed to the charity, which will expire on 18 April.
Detective Inspector Jamie Humm, of the Met’s child abuse investigation team, said: “We have carried out extensive inquiries over the past year to try and locate Elsa’s parents.
Baby Roman. Pic: Met Police/PA
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“This has involved reviewing over 450 hours of CCTV and completing a full DNA structure of the mother.
“We have serious concerns for the wellbeing of the parents, especially the mother, and are continuing to work closely with Newham Council and appeal for the public’s help for information.
“I believe that someone in the area will have been aware of the mother’s pregnancies and that within the community there may be (or) have been concerns for this mother’s welfare.
“Thanks to the DNA work of forensic colleagues, police will be able to eliminate any unconnected person quickly and easily, as such I would ask you to contact police with confidence.”
The baby was found at the junction of Greenway and High Street South in Newham. Pic: PA
Elsa was found wrapped in a towel in a reusable shopping bag, of which police have also released a new image, and was kept warm by the dog walker. She was uninjured.
Police said at the time that it was “highly likely” that she was born after a “concealed pregnancy”.
The Boots bag in which Baby Elsa was found abandoned by a dog walker in Newham on 18 January 2024. Pic: Met Police/PA
The BBC reported that at an initial court hearing, East London Family Court was told it took doctors three hours to record Elsa’s temperature because of the cold, and the Met Office said that temperatures dropped to as low as -4C on the night she was found.
Hospital staff named her Elsa in a reference to the character from the film Frozen.
The police investigation into the identity of the children’s parents continues, and anyone with information is asked to call police on 101 or post @MetCC ref Operation Wolcott.
People can also contact Crimestoppers anonymously at any time on 0800 555 111 or via Crimestoppers-uk.org.
Fresh appeals have been made for information on what would have been the 20th birthday of Ellis Cox, who was shot dead in Liverpool last June.
A number of people have been arrested in connection with the murder at Liver Industrial Estate, but no one has been charged yet.
The 19-year-old’s family and police have paid tribute to him and called for those with information to come forward.
He was shot in the back after a confrontation between his friends and another group of up to three males on Sunday 23 June.
Ellis Cox who was shot dead in June 2024. Pic: Merseyside Police
His mother Carolyn paid tribute in an appeal to coincide with what would have been his 20th birthday.
“He was so kind… so laid back, so calm, so mature for his age. And he was just funny. Very funny.
“He was my baby… no mum should have to bury a child. He was my life. And I don’t know what to do without him.”
Mum Carolyn Cox (left) and aunt Julie O’Toole (right) are looking for answers
Ellis’ mum described him as ‘kind” and “funny. Pic: Merseyside Police
Meanwhile, his aunt Julie O’Toole said he was “the sort of person I think you’d be hard pressed to find anyone to say anything negative about. He was loyal, fiercely loyal… everything was about his family”.
To pay tribute to Ellis, Liverpool City Council will be lighting up the Cunard Building and Liverpool Town Hall in orange on Saturday.
DCI Steve McGrath does not believe Ellis was involved in criminality
Detective Chief Inspector Steve McGrath, the senior investigating officer, spoke about the information gathered so far, six months on from Mr Cox’s murder.
“I’m satisfied that the group that he was with was probably the target… and I would say that’s got something in relation to do with localised drug dealing in that area. But Ellis had no involvement in that whatsoever,” he said.
He added that police are looking for “really significant pieces of evidence now”, including “trying to recover the firearm that was used in relation to this, looking to recover the bikes that were used by the offenders”.
Read more from Sky News:
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Missing sisters made earlier visit to same bridge
Mrs Cox also appealed for people to come forward with information.
“If you know anything, don’t let us get to [his] next birthday and still know nothing.
“We need to get justice for Ellis. And we need to get the people who took him from us off the streets.”
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