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Chancellor Jeremy Hunt has refused to commit to tax cuts ahead of the next election, despite growing calls from inside his party.

His cabinet colleague Michael Gove told Sky News on Sunday that he wanted to see “the tax burden reduced” by the time the public goes to the polls.

But speaking to Kay Burley this morning, Mr Hunt said “big tax cuts now… would be inflationary”, and “nothing is going to compromise [the] battle” to bring that figure down.

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Asked if we could see a headline tax cut before the next election, he said: “It’s very difficult to see having that kind of tax cut this year.”

And pushed on whether he would commit to the pensions triple lock at the next election, Mr Hunt said – after a long pause – that the decision would come in the autumn statement.

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Tories battle over taxes

The comments came ahead of the chancellor’s speech to the Conservative Party conference in Manchester this afternoon, where he is due to announce a rise in the living wage and stronger benefits sanctions.

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But it also came before the return of former prime minister Liz Truss to the annual event, where she will speak at the Great British Growth Rally to demand a cut in corporation tax – a policy that was part of her disastrous mini-budget just 12 months ago.

Some Conservative backbenchers have long called for tax cuts from Number 11 as the current burden on households is at a 70-year high.

But the row reignited on the first day of this year’s conference after Mr Gove’s remarks to Sky News – followed by Prime Minister Rishi Sunak’s refusal to sign up for the pledge.

Pushed on whether there would be tax cuts ahead of the next election, Mr Hunt said: “I would love to see tax cuts for working people and obviously tax cuts for everyone.

“[However], if we gave big tax cuts now, that would put more money in people’s pockets [but] that would be inflationary. And right now, we are in a big battle which is succeeding to bring down inflation.”

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The chancellor echoed the comments from Mr Sunak that “the fastest thing we can do” to help households is to reduce inflation, before adding: “Do we want to move to lower taxes as soon as we can? Yes, but it means difficult decisions and we’re prepared to take those difficult decisions.”

But like the prime minister, he would not commit to a timetable, saying he did not have “a crystal ball” and it would be wrong to “make a prediction one way or the other”.

“I can’t tell you what the state of the economy is going to be going forward,” said Mr Hunt. “What I can say is that it’s very difficult to see having that kind of tax cut this year.

“Public finances don’t allow that. Our interest payments are predicted to be much higher than at the spring budget and it would be inflationary.

“But if you’re asking me, is it something that I’m willing to put us on a path to doing, I do want us to have lower taxes and I’m prepared to take the difficult decisions to make that happen”.

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Montana’s Bitcoin reserve bill rejected by House lawmakers

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Montana’s Bitcoin reserve bill rejected by House lawmakers

Montana’s House of Representatives voted 41-59 against a bill that could have seen the US state establish a Bitcoin reserve.

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Starmer says ‘US is right’ about UK and Europe needing to take more responsibility for defence

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Starmer says 'US is right' about UK and Europe needing to take more responsibility for defence

Sir Keir Starmer has said the United States “is right” about the UK and Europe needing to take more responsibility for defence and security.

The prime minister, speaking at the Scottish Labour conference in Glasgow on Sunday, said he is clear Britain “will take a leading responsibility” in protecting the continent.

“Instability in Europe always washes up on our shores,” he said.

“And this is a generational moment. I’ve been saying for some time that we Europeans – including the United Kingdom – have to do more for our defence and security. The US is right about that.”

He added “we can’t cling to the comforts of the past” as it is “time to take responsibility for our security”.

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Donald Trump sparked an emergency meeting of European leaders this week after he said European NATO members should spend more on defence, while the US should spend less.

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Sir Keir has said he will set out a path for the UK to spend 2.5% of GDP on defence, up from the current 2.3%, but has not indicated when that will be.

It is believed he may announce the details when he visits Mr Trump in Washington DC on Thursday, bringing forward the announcement that was expected in the spring when a defence spending review is published.

The prime minister reiterated the UK will “play our role” if required in Ukraine following a peace agreement after he earlier this week said the UK would send troops to be part of a peacekeeping force.

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Sir Keir will meet Donald Trump in the White House on Thursday. Pic: AP

However, his comments caused a row with Germany and Italy who said it was premature to commit to boots on the ground, although France agreed with the UK.

Sir Keir said: “As we enter a new phase in this conflict, we must now deepen our solidarity even further.”

He added: “There can be no discussion about Ukraine without Ukraine.

“And the people of Ukraine must have long-term security.”

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This week has seen US officials meet their Russian counterparts in Saudi Arabia to discuss Ukraine – which has been met with indignation by Ukrainian President Volodymyr Zelenskyy as none of his team were invited.

No Europeans were invited either, sparking concern the US is pandering to Vladimir Putin.

Sir Keir has promised Mr Zelenskyy he will make the case for safeguarding Ukraine’s sovereignty when he meets with Mr Trump, who has called the Ukrainian president a dictator.

Mr Trump also said Sir Keir and French President Emmanuel Macron, who will visit the White House too this week, “haven’t done anything” to end the war.

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Starmer announces £200m for Grangemouth

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Starmer announces £200m for Grangemouth

The prime minister has announced £200m for Grangemouth ahead of the closure of Scotland’s last oil refinery.

Sir Keir Starmer, speaking at the Scottish Labour conference on Sunday, said the cash would come from the National Wealth Fund for an “investment in Scotland’s industrial future”.

Grangemouth oil refinery, on the banks of the Firth of Forth, is set to cease operation this summer and transition into an import terminal, making 400 workers redundant.

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Sir Keir said: “We will grasp the opportunities at Grangemouth, work alongside partners to develop viable proposals, team up with business to get new industries off the ground and to attract private investors into the partnership we need.

“We will allocate £200m from the National Wealth Fund for investment in Grangemouth.”

The money comes on top of a £100m “growth plan” already in place for the area.

Scotland’s first minister, the SNP’s John Swinney, welcomed the announcement and said it is “important that the Scottish and UK governments work together on securing the future for the workforce”.

A general view of the Grangemouth Oil Refinery, on the Firth of Forth, near Falkirk, Scotland. PRESS ASSOCIATION Photo. Picture date: Friday December 2, 2016. Photo credit should read: Jane Barlow/PA Wire
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The plant will become an import terminal. Pic: Jane Barlow/PA

Sir Keir said the new investment will be a partnership with the private sector, and he is expecting three times the amount the government is putting in to come from private investors.

The prime minister said he believes the transition to clean energy is a “golden opportunity for Britain, especially for Scotland”, and is essential for national security as it “gets Putin’s boots off our throat”.

However, he said oil and gas are also “vital for our security” so will be “part of the future of Scotland for decades to come”.

As well as the investment in Grangemouth’s future, Sir Keir said every person made redundant will get 18 months full pay and a skills and training offer “backed up with up to £10m”.

Any business in Grangemouth that takes on those workers will get National Insurance relief, he also said.

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Petroineos, which owns Grangemouth, announced last September it was to close Grangemouth by this summer because it was unable to compete with sites in Asia, Africa and the Middle East.

The refinery is understood to have been losing about £395,000 a day when it made the announcement and was on course to lose about £153m this year.

The company said the decision would “safeguard fuel supply for Scotland” by converting the site into a terminal able to import petrol, diesel, aviation fuel and kerosene into Scotland.

However, it said that would only need a workforce of fewer than 100 employees.

Petroineos announced its intention to close the plant in November 2023 but union leaders had hoped it could remain open for longer to provide time for a green alternative to be established there.

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