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The chancellor has warned the British public he is preparing “for the worst” as he draws up his autumn statement.

Jeremy Hunt told Sky News the Office for Budget Responsibility’s (OBR) official economic forecasts would be considerably worse than at the budget – a signal there may be spending cuts or possibly even tax rises ahead.

“I am very much hoping for the best but I do need to prepare for the worst because I think we can see that the world is a very dangerous place right now,” he said.

“The numbers are definitely worse than what I faced in the spring.

“Debt interest is likely to be £20bn to 30bn higher this year than was predicted in spring. So yes, it’s a very challenging environment in the short term.”

The comments, delivered on the fringes of the International Monetary Fund’s annual meetings in Morocco, are particularly significant because the Treasury has now seen the OBR’s projected economic forecasts which will feed into next month’s autumn statement.

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Chancellor Jeremy Hunt is “hoping for the best” but “preparing for the worst” when preparing for the autumn statement.

Referring both to the events in Israel and the ongoing war between Russia and Ukraine, Mr Hunt said: “from the point of view of the British economy, we have to recognise that the world is an unstable place.

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Gas prices are four times higher than they were before the invasion of Ukraine. And it isn’t just what’s happening in Israel – we have the biggest war in Europe that we’ve seen in our lifetimes. Here in Africa, there is instability just a little bit further south, over the border from Morocco.

“So when we are managing the British economy, we have to be very prudent with our public finances. Be very careful not to overextend with reckless borrowing because we need the economy to be resilient.

I’m very optimistic about our long term future, but in the short term, we have to recognise that there may be shocks.”

The chancellor’s comments come amid speculation the UK may slip into a shallow recession in the coming months, as higher interest rates continue to put pressure on household finances.

However, the IMF conference has been overshadowed by news of the atrocities in Israel and the fightback from Israeli forces.

Mr Hunt said: “This is the most appalling, brutal, murderous terrorism that I think I can remember seeing in my adult lifetime.

“There have been absolutely gruelling pictures. And I think we have to make sure as a world that we are absolutely united in our condemnation because of what has happened.

“And I think it reminds us, unfortunately, that all this horror is not something that humanity’s put behind us.”

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Russian oil still seeping into UK – the reasons why sanctions are not working

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Russian oil still seeping into UK - the reasons why sanctions are not working

The Russian state has been making more money from its oil and gas industry in the past three months than in any comparable period since the early days of the Ukraine invasion, it has emerged.

The figures underline that despite the imposition of various sanctions on fossil fuel exports from Russia since February 2022, the country is still making significant sums from them. This is in part because rather than preventing Russia from exporting oil, gas and coal, they have simply changed the geography of the global fossil fuels business.

In the three months to April, Russia made a monthly average of 1.2 trillion rubles (£10.4bn) from its oil and gas revenues, according to Sky analysis of figures collected by Bloomberg.

That is the highest three-month average since April 2022.

It comes amid elevated oil prices and concerns that sanctions on Russia are failing to prevent the country earning money and waging war on Ukraine.

Before the invasion of Ukraine, the world’s biggest recipients of Russian oil experts were the European Union, the US and China. Since then, the UK, US and EU have banned the import of crude oil or refined products from Russia.

G7 nations have also introduced a price cap which aims to prevent any Western companies – from shipping firms to insurers – from assisting with any Russian oil exports for anything more than $60 a barrel.

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However, Russia continues to export just as much oil as it did before the invasion of Ukraine and the imposition of the price cap.

Sanctions experts say the price cap has been a qualified success, since it has slightly reduced the potential revenues enjoyed by the Kremlin, if it intends to ship that oil via most commercial ships. In response, Russia is reported to have built up a so-called “dark fleet” of ships carrying Russian oil without obeying those sanctions.

The top three destinations for Russian oil are now China, India and Turkey. The UK now imports considerably more oil and oil products from the Middle East than before, making it more reliant on the Gulf.

However, Russian fossil fuel molecules are still being exported to the UK, albeit indirectly, because the sanctions imposed by western nations do not cover oil products refined elsewhere.

The upshot is that Indian refineries are importing a record amount of oil from Russia, and Britain is importing a record amount of oil from Indian refineries – up by 176% since the invasion of Ukraine.

At least some Russian oil still powers the cars in Britain and the planes refilling in British airports, but because it is impossible to trace the fossil fuels molecule by molecule, it is hard to know precisely how much.

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‘No indication of malicious activity’ as e-gates back working at UK airports after travel chaos

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'No indication of malicious activity' as e-gates back working at UK airports after travel chaos

A “nationwide issue” with e-gates at airports has been resolved after causing travel chaos across the country, the Home Office has said.

It said the system was back up and running and there was “no indication of malicious cyber activity”.

Social media images and footage showed long queues at the passport scanning gates at several airports overnight.

Passengers also reported being held on planes after they landed, while others said the delays caused them to miss trains.

Queues at Gatwick Airport. Pic: Paul Curievici/PA
Image:
Queues at Gatwick Airport. Pic: Paul Curievici/PA

Heathrow, Gatwick and Stansted airports were affected, as well as Manchester, Bristol and Southampton, along with Edinburgh, Glasgow and Aberdeen.

One passenger at Stansted Airport told Sky News they had missed several coaches to central London because of the issues, and only cleared the airport after nearly three hours in line.

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Travel chaos across UK airports

“Not much info given. No water handed out. Babies crying,” they said.

Another at Luton Airport said it took around 80 minutes from leaving their flight from Amsterdam to get through border control.

One traveller said they were held on their plane at Stansted for around an hour and a half after landing.

“We weren’t told much other than the e-gates were down but had no idea how long it would take,” they told Sky News.

“After that not much was said other than we couldn’t disembark till the other five planes ahead of us did.”

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Queues at Heathrow Airport
E-gates at Heathrow Airport
Image:
Queues and closed e-gates at Gatwick Airport

‘No indication of malicious cyber activity’

A Home Office spokesperson said: “E-gates at UK airports came back online shortly after midnight.

“As soon as engineers detected a wider system network issue at 7.44pm last night, a large-scale contingency response was activated within six minutes.

“At no point was border security compromised, and there is no indication of malicious cyber activity.”

Queues seen at Manchester Airport. Pic: @GoggleBizTog
Image:
Queues at Manchester Airport. Pic: @GoggleBizTog

The queue at Gatwick Airport. Pic: Paul Uwagboe/PA
Image:
The queue at Gatwick Airport. Pic: Paul Uwagboe/PA

E-gate system crashed last year

The disruption came after Border Force workers staged a four-day strike at Heathrow Airport in a dispute over working conditions last week.

The union said workers were protesting against plans to introduce new rosters, which they claim will see around 250 of them forced out of their jobs at passport control.

The UK’s e-gates system also crashed in May last year, causing long queues and several hours of delays for passengers.

At the time travel expert Paul Charles told Sky News underinvestment in the UK’s transport infrastructure had left these systems “hanging by a thread”.

Have you been affected? Send us a message on WhatsApp or email news@skynews.com if you want to send us pictures and video.

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Renewable power reaches record 30% of global electricity

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Renewable power reaches record 30% of global electricity

Experts have hailed a “critical turning point” as renewable power generated a record-breaking 30% of the world’s electricity last year, new data has found.

It raises hopes that the peaking of global greenhouse gas emissions is on the horizon.

But there are concerns many countries are being held up in their switch to clean power because they cannot access the cash needed to fund it.

Last year’s renewable power “milestone” was driven by yet another booming year for wind and especially solar.

China, Brazil and the Netherlands led the way in terms of fast roll-outs, thinktank Ember said in its annual Global Electricity Review.

China alone accounted for 51% of new solar generation and 60% of new wind, even as it continued to build vast amounts of new coal power too.

Christiana Figueres, former United Nations climate chief, called 2023 a “critical turning point”.

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She said “outdated” fossil fuels now can’t compete with the “exponential innovations and declining cost curves in renewable energy and storage”.

“All of humanity and the planet upon which we depend will be better off for it,” she added.

In the last two decades, solar and wind have defied expectations and grown far faster than expected, surging from just 0.2% of global power generation in 2000 to 13.4% in 2023.

Dave Jones, Ember’s head of global insights, said the huge growth was due to “matured” policies and technologies and a plummet in costs.

The cost of solar power halved last year despite a surge in demand, thanks to an explosion in manufacturing capacity.

Meanwhile problems that had held up wind power – such as inflationary costs – began to resolve, unlocking more projects.

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China ramps up coal power despite pledge to control it

A ‘genuinely ambitious’ renewables target

At the COP28 climate summit in Dubai last year leaders pledged to triple renewable power capacity by 2030.

The “genuinely ambitious” target shows leaders are backing renewables, which are the “main tools that we have in the box today to deliver the big emissions reductions we need”, rather than riskier technology, such as that to remove carbon dioxide from the atmosphere, Mr Jones said.

Ember suggests the global burning of fossil fuels in the power sector probably peaked in 2023 and will start to fall this year, along with the pollution and emissions they bring.

As the power sector accounts for the largest share of global emissions, that means global emissions could start to fall soon too.

That is good news for curbing climate change, although scientists have repeatedly warned that emissions are not falling fast enough to limit global warming to agreed safer levels.

Mr Jones said the pace of emissions falls “depends on how fast the renewables revolution continues”.

Joab Okanda, a senior adviser for Christian Aid, based in Kenya, said the roll-out would be “so much faster with the right investment” in African nations, which often face much higher borrowing costs than other countries.

Hanan Morsy, deputy executive secretary and chief economist at the UN’s Economic Commission for Africa, said the continent holds “big potential in renewable energy”.

“Yet a dismally small share of less than 2% of global renewable energy investments are made on the continent. The continent can’t develop further without access to energy.”

He called for financial reforms to bring in affordable and new types of funding.

Financing the clean transition in developing nations, which have typically contributed the least to climate change, will be a key issue at this year’s UN climate summit, COP29 in Azerbaijan.

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