Rishi Sunak promises to cut taxes as autumn statement looms

Published

10 months ago

November 20, 2023

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Rishi Sunak has promised he will cut taxes now the government has achieved its pledge to halve inflation by the end of the year.

The prime minister has been under pressure from many in his party to reduce the tax burden – which currently sits at a 70-year high – ahead of the next election, and rumours have been swirling that such policies could be announced in the autumn statement on Wednesday.

Politics live: Vallance giving evidence to COVID inquiry

Making a speech in north London on his economic plans, Mr Sunak said his “argument has never been that we shouldn’t cut taxes – it’s been that we can only cut taxes once we have controlled inflation and debt”.

And with the change in inflation – confirmed last week by the Office for National Statistics (ONS) to have dropped to 4.6% – it was time for the government to “begin the next phase” of its plan and “turn our attention to cutting tax”.

The prime minister did not reveal what taxes would be for the chop, but they are expected to be confirmed on Wednesday when Chancellor Jeremy Hunt delivers his statement in the Commons.

Can the chancellor lift the gloom? Watch live coverage on Sky News of the autumn statement from 11am on Wednesday.

During his speech, Mr Sunak celebrated the fall in inflation – though it still remains more than double the Bank of England target of 2% – saying it showed “when we make a major economic commitment, we will deliver it”.

Then moving on to the big question ahead of the autumn statement, he said: “I want to cut taxes, I believe in cutting taxes, what clearer expression could there be of my governing philosophy than the belief that people, not government, make the best decisions about their money.

“But doing that responsibly is hard. We must avoid doing anything that puts at risk our progress of controlling inflation, and no matter how much we might want them to, history shows that tax cuts don’t automatically pay for themselves.

“And I can’t click my fingers and suddenly wish away all the reasons that taxes had to increase in the first place – partly because of COVID and Putin’s war in Ukraine, and partly because we want to support people to live in dignity in retirement with a decent pension and good health care which will cost more as the population ages.”

But the prime minister added: “Now that inflation has halved and our growth is stronger, meaning revenues are higher, we can begin the next phase and turn our attention to cutting tax.”

The prime minister said the government “can’t do everything at once”, and it would take “discipline” to “prioritise” what should be reduced.

However, he promised to make the reductions “in a serious, responsible way, based on fiscal rules”, adding: “Over time we can and we will cut taxes.”

Sunak’s argument has flaws – he’ll have to work hard to win it

Sam Coates

Deputy political editor

@SamCoatesSky

Well, that was wild. Today, Rishi Sunak appeared to have perfected the art of the low-key big speech.

The prime minister announced tax cuts are coming right now, set out the five long-term priorities he’ll fight the election on and made his most aggressive attack on the Tory right’s belief in self-funding tax cuts.

All done on a hugely busy political day, competing with the COVID inquiry, CBI annual conference featuring the chancellor, an AI event with the deputy prime minister on the day a refreshed plan for foreign aid spending was being released and Lord Cameron’s formal arrival in the Lords.

At the heart of Sunak’s speech was an argument that having reduced inflation and debt, now everyone can share in the rewards. A prime minister – justifiably – wanting to share some of the credit for Wednesday’s tax cut announcement in the autumn statement.

This is his argument: “We could only cut taxes once we’ve controlled inflation and debt… and the official statistics show that promise has now been met.”

There are there problems with this statement from the prime minister. The first is that he has met only one, not both of his inflation targets – his government’s other is to get it back down to 2%, and at 4.6% it’s still very high by the standards of the last 20 years.

Secondly, debt is not going down – in absolute terms it is rising. Sunak means, but does not say, that debt is falling as a proportion of GDP, a slight of hand that matters.

Thirdly, he is boasting about growth, saying: “Our growth is stronger.” Yes, stronger than the March budget, but the last quarterly GDP figures came in at 0.0%, nil growth, and the latest indications from business point to all but no growth and maybe even recession in the coming months.

Instead what has changed is circumstance – the election, even at its furthest away point, is getting closer, while his colleagues are circling on a range of topics and he feels more unstable than at any point since the start of the year after the Rwanda court defeat.

This is an argument he is going to have to work very hard if he wants to win.

Over the weekend, Mr Hunt insisted the focus of the upcoming budget would be on growth for business, telling Sky News he wanted to help create a “productive, dynamic, fizzing economy”.

But the chancellor also said “everything is on the table” when asked about swirling rumours over possible tax cuts.

Sky’s deputy political editor Sam Coates understands taxes on personal incomes will fall in Wednesday’s statement, as the government also seeks to help households with the cost of living crisis.

In the latest edition of the Politics at Jack and Sam’s podcast, by Sky News and Politico, he said the cut was unlikely to be on the basic rate of income tax though.

Click to subscribe to Politics at Jack and Sam’s wherever you get your podcasts

However, the head of the Institute for Fiscal Studies, Paul Johnson, warned there was “no headroom there at all” for major tax cuts.

The economist said chancellors could “always find a few billion in a budget or an autumn statement if they want to”, but the public finances were “in such a mess” due to the amount being spent on debt interest, that there wasn’t a lot of wriggle room for Mr Hunt.

During his speech, Mr Sunak also promised to “clamp down” on welfare fraudsters, calling it a “national scandal” and “an enormous waste of human potential” that around two million people of working age were not in employment.

The government is said to be considering a big squeeze on benefits in order to find savings, effectively cutting working age welfare payments for millions of people.

The prime minister said: “We believe in the inherent dignity of a good job, and we believe that work, not welfare is the best route out of poverty.

“So we must do more to support those who can work to do so, and we will clamp down on welfare fraudsters because the system must be fair for taxpayers who fund it.”

Mr Sunak also used his speech to launch an attack on Labour for having “no experience” in business, and accused Sir Keir Starmer and the shadow chancellor Rachel Reeves of offering “fairy tale” answers to the questions of how to grow the economy.

But Labour’s national campaign coordinator, Pat McFadden, said: “The Tories have failed to deliver on so many pledges from the past. Why should people believe they will deliver on pledges for the future?

“It sums up this Conservative Party to claim things will be better tomorrow when they can’t even fix the problems of today.”

UK

Ex-Harrods director reveals how ‘paranoid’ Mohamed al Fayed created toxic culture at store

Published

7 hours ago

September 22, 2024

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Ex-Harrods director reveals how 'paranoid' Mohamed al Fayed created toxic culture at store

A former Harrods director told Sky News he does not see how security at the department store “wouldn’t have known” about Mohamed al Fayed’s behaviour towards women.

Five women have alleged they were raped by Fayed, who died last year at the age of 94, with several others alleging sexual misconduct.

A legal team representing alleged victims confirmed on Saturday morning they have “had over 150 new inquiries” since the airing of a BBC documentary on Fayed.

The Harrods’ ex-director, who reported directly to Fayed, said: “There was security everywhere, all the phones and offices were bugged, with cameras everywhere.

“I just put it down to paranoia, wanting to know he was getting his pound of flesh from us. The nature of the man was to set everyone against each other, to set directors against each other.

“Whether Fayed’s own offices or stuff had surveillance, I wouldn’t know. But to get into his suite of offices you had to have an appointment, PAs had to arrange it, it was very secure.”

He added: “The only thing I was aware of was that someone said he had lots of PAs and they were all blondes. I thought that he just wanted to surround himself with pretty women.”

The former director, who spoke to Sky News on the condition of anonymity, said the culture at Harrods was toxic.

“It was very much keep your head down, no one helped each other. It wasn’t a team as you knew Fayed was trying to catch everyone out.

“He was always trying to make fun of people in front of others, which he thought was very funny.”

Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.

The department store has also set up a page on its website inviting former employees to come forward if they have allegations.

Meanwhile, Education Secretary Bridget Phillipson has defended Sir Keir Starmer after it emerged the Crown Prosecution Service (CPS) declined to bring charges against Fayed while the prime minister was director of public prosecutions.

The CPS considered bringing charges against the former Harrods chairman in 2009 and 2015 but concluded there was not “a realistic prospect of a conviction”.

The minister told Sky News that tackling violence against women was a “personal priority” while Sir Keir was head of the CPS as director of public prosecutions between 2008 and 2013.

“I don’t know the details of what happened in 2009, there sometimes can be issues with the evidence that’s presented by the police, whether that can lead to a conviction,” Ms Phillipson said.

“The first time that I ever knew who Keir Starmer was when I saw him on television as director of public prosecutions, talking about the personal priority that he attached to tackling violence against women and girls, so he’s got a personal commitment to it.

“He turned the CPS around while he was leading it to focus on that. But, clearly, if there have been issues that should be considered, that should happen.”

A Downing Street spokesperson said Sir Keir did not handle Fayed’s case, adding it “did not cross his desk”.

The CPS also provided early investigative advice to the Metropolitan Police in 2018, 2021 and 2023 following allegations made against Fayed.

However, a full file of evidence was never received by the CPS in each of these instances and they were given no further action by police.

Former Victims’ Commissioner Dame Vera Baird accused the CPS of only taking “cases they could win”, saying the organisation was “a den of negativity for all sexual offence allegations and for the people who made them”.

She told Sky News: “They have always been valued for the proportion of cases they win. So you do 20 [cases] and you [win] 15 – 75%, that’s good. But if you only do 10 because 10 are really, really safe, then you get nine of them – that is a super rate of conviction.

“Their interest mitigated for all of that time against the interests of people who severely needed to have the help of the criminal justice system to get over the awful way that they were treated by their assailants. And now it’s very clear that Mr Fayed was one of those.“

She also said the CPS’s treatment of women may have affected its decision to not take charges against Fayed.

“Women who come forward with complaints of this kind are underestimated and undervalued, and to some extent seen as a liability who [is] likely to be volatile or emotionally not very well, largely because of the way they’ve been treated,” she said.

But Dame Vera defended Sir Keir for his “ahead of the game” approach to violence against women while he was director of public prosecutions.

“They were doing their best and for instance, the CPS was the first ever government organisation to have a violence against women and girls strategy.

“Keir initiated a report by a very highly-regarded lawyer about how the CPS should systematically get away from the myths about prosecution and about sex offences, that it impeded them from taking cases forward. That was a very strong thing to do.”

UK

Crown Prosecution Service acknowledges it twice failed to prosecute Mohamed al Fayed over sex abuse claims

Published

18 hours ago

September 22, 2024

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Crown Prosecution Service acknowledges it twice failed to prosecute Mohamed al Fayed over sex abuse claims

The Crown Prosecution Service (CPS) has acknowledged it had twice failed to bring charges against Mohamed al Fayed for sexual abuse.

The former Harrods owner, who died last year at the age of 94, was described as a “monster” earlier this week by lawyers representing alleged sexual abuse victims.

Women say he raped and sexually assaulted them while they worked at the luxury department store, and accused him of “cherry-picking” women to be brought to his executive suite.

As the legal team said they have heard more than 150 inquiries into Fayed’s alleged crimes, a CPS spokesperson has now said evidence against the Egyptian businessman was provided to prosecutors by the Metropolitan Police twice.

In 2008, Fayed was accused of indecent assault against a 15-year-old girl, which he denied. The CPS did not prosecute the case when it was presented in 2009 over conflicting evidence.

He was then alleged to have raped a woman in 2013, which was reinvestigated by police in 2015 but did not lead to any charges.

While the CPS did review both files, the spokesperson said: “To bring a prosecution the CPS must be confident there is a realistic prospect of conviction – in each instance, our prosecutors looked carefully at the evidence and concluded this wasn’t the case.”

It marks the first time the service acknowledged the 2015 investigation. The CPS also provided the Met Police with early investigative advice for Fayed in 2018, 2021 and 2023.

Full evidence was never received for these instances and the police took no further action.

It comes after the victims’ legal team confirmed on Saturday they had received “over 150 new inquiries” after a BBC documentary on Fayed aired.

It also follows the former head of royal protection saying he warned the Royal Family about Fayed’s reputation before Princess Diana took Prince Harry and Prince William on holiday with the businessman’s son.

Dai Davies told Sky News people were aware of the Egyptian businessman’s reputation as far back as the 1990s, and said: “This was a man who I would be concerned [about] if a relative of mine was going on holiday with him, let alone the future king and his brother and their mother, Princess Diana.”

He added he was “horrified” before the late princess went on holiday with Fayed and his wife to their residence in St Tropez in July 1997.

“I was aware that he had tried very hard to ingratiate himself with the Royal Family,” he said, “and obviously knowing, as I did, the reputation he was alleged [to have] then, I was concerned, and I took the opportunity to inform the Royal Family.”

Buckingham Palace told Sky News it had no comment on the allegations.

Fulham FC, which was owned by Fayed between 1997 and 2013, also said it is “deeply troubled” by the dozens of “disturbing” sexual abuse allegations against the businessman.

Harrods said in a statement on Thursday it was “utterly appalled” by the allegations of abuse and apologised to Fayed’s alleged victims.

The department store has also set up a page on its website inviting former employees to come forward if they have allegations.

UK

Anthony Joshua defeated by Daniel Dubois in IBF world heavyweight title at Wembley Stadium

Published

22 hours ago

September 22, 2024

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Anthony Joshua defeated by Daniel Dubois in IBF world heavyweight title at Wembley Stadium

Anthony Joshua missed out on the chance to become a three-time heavyweight world champion after he was stopped by British rival Daniel Dubois in the fifth round.

Dubois, 27, knocked down Joshua towards the end of the opening round with an overhand right to the 34-year-old’s chin.

The IBF heavyweight champion then dropped Joshua at the end of round three and twice in the fourth.

A right hook ended the fight with a knockout for Dubois’ first defence of the title.

The fighters went toe to toe at London’s Wembley Stadium in front of a record 96,000 fans.

‘We came up short’

Minutes after retaining the IBF championship, Dubois shouted to the crowd “are you not entertained?” before saying: “I’m a gladiator, you know?

“I’m just a warrior to the bitter end. I’m just ready to go. I want to go to the top level of this game and reach my potential. God bless you all.”

Joshua said the loss would not stop him from rebuilding despite admitting “we came up short”.

“You know I’m ready to kick off in the ring, but I’m going to keep my cool, keep very professional, and give respect to my opponent,” he said.

“I’m always saying to myself I’m a fighter for life… We keep rolling the dice. I had a sharp opponent, a fast opponent and a lot of mistakes from my end, but that’s the game.”

Dubois’ victory has sent a message to the whole heavyweight division

Jacquie Beltrao

Sports presenter

Daniel Dubois will feel like he has fulfilled his destiny here at Wembley. His father has trained him to be a champion boxer since he was tiny.

He held the IBF belt, but he has gone in there tonight and defended it in spectacular fashion – he is now in every conversation going forward.

What now for AJ? Can he face rebuilding? And will he even want to?

The Wembley ring walk is notoriously long, and Dubois looked nervous – but so did Joshua, who has done this many times before in front of a full house.

Perhaps he was thinking of what was at stake – the chance to be a three-time heavyweight champion of the world.

But 27-year-old Dubois holds the belt and was keen to prove he was a worthy champion quickly.

Many wondered if Dubois would freeze on the biggest stage: Question asked and answered emphatically.

It was a crushing defeat for Joshua – most were not expecting such a one-sided victory.

Dubois will now most likely take on the winner of Fury v Usyk 2 for all the belts. But the manner of his victory has sent a message to the whole heavyweight division.

Hearn: AJ will want rematch

Promoter Eddie Hearn then said “it was the first round” where Joshua lost, “after that he was fighting on heart and desire”.

Hearn added: “When you are in there with a massive puncher this is what can happen. He never stopped trying to get up, even when he couldn’t get up.

“Daniel deserves credit, he’s a real world champion. Congratulations to him… I’m sure [Joshua will] exercise that rematch clause, it’s a given, it’s a dangerous fight because he’s growing in confidence all the time but he’ll believe he can beat him.”

British champion Dubois, who before tonight had never fought at Wembley, was elevated to the IBF title holder after Oleksandr Usyk relinquished the belt.

Joshua outweighed Dubois by four pounds, despite a career-heaviest weight for his rival, ahead of the fight.

Among those watching was Tyson Fury, the former WBC heavyweight champion, who took a ringside seat.

Liam plays Oasis hits

Fury is set to fight Usyk for the other three titles in a rematch on 21 December.

Ahead of the fight, Liam Gallagher played some of Oasis’ biggest hits to the sold-out crowd.

The 52-year-old frontman walked on to a massive cheer and said “yes Wembley vibes in the air,” before launching into Rock ‘N’ Roll Star, Supersonic and Cigarettes & Alcohol.

He and Noel Gallagher will play Wembley for their first of seven reunion shows at the stadium on 25 July – 307 days away.

Other famous faces ringside were Irish MMA fighter Conor McGregor, former boxer Ricky Hatton, Spice Girl Emma Bunton and Love Island presenter Maya Jama.