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Chancellor Jeremy Hunt has insisted his tax cuts are about “long-term growth” for the economy, calling it “silly” to think they were instead about the timing of the next election.

The Conservative Party has been told to be ready for a general election from 1 January, a senior government source told Sky News’s political editor Beth Rigby, with a vote being called as early as May if Wednesday’s autumn statement goes down well with voters.

In his speech to the Commons, Mr Hunt announced a raft of measures that some see as a pre-election giveaway, including reducing national insurance for employees from 12% to 10% and scrapping it entirely for the self-employed.

But economists have pointed out that the overall tax burden will remain at a record high because of the continued freeze on tax thresholds.

Politics live: ‘Clear choice’ at next election, says Hunt

The chancellor told Sky News he hadn’t chosen “the most populist tax cuts”, with most of the policies aimed at boosting business growth.

But he denied the NI cuts were there to win over voters ahead of a campaign, saying: “It’s silly to think about this in terms of the timing of the next election. We’re trying to make the right decisions for long-term growth of the economy.”

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The tax cuts came amid long-standing pressure from the Tory backbenches to reduce the burden on both the public and business, which has been sat at a 70-year high.

But a general election is also looming, with the government having to call the ballot by January 2025 at the latest, and the Conservatives are still lagging behind Labour in the polls.

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Hunt: It will ‘take time’ to lower taxes

A senior government source told Beth Rigby that the Tories’ campaign director, Issac Levido, is due to join the party’s headquarters on a full-time basis from the new year in order to make sure they are ready for the election as soon as possible.

Another senior source also told Sky News’ political editor that the plan was to “prepare for November” but be “ready for May”, in case the tax cuts help them narrow the gap, giving them a better chance of winning an historic fifth term in office.

But it also gives them an option if the measures go down badly on their own backbenchers and a confidence vote is called on Prime Minister Rishi Sunak’s leadership, allowing him to trigger a snap election.

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Mr Hunt defended the fact the tax burden had been so high in recent years, telling Sky News’ Kay Burley “it was right to help families” through COVID and the cost of living crisis, but that comes at a cost.

“I also think it’s right to make a start in bringing down taxes,” he added. “But the taxes that I brought down are not the crowd pleasers that were on the tip of everyone’s tongues, inheritance tax or income tax.

“They’re the taxes that are going to help businesses grow, and that is the way that we will increase our long term prosperity, raise wages, raise living standards. And that was the choice that a Conservative government made yesterday.”

He added: “What I do acknowledge is that we’re going to show discipline in public spending. It’s not going to grow in real terms as fast as some people would like.

“But that is happening because I’m choosing to cut taxes mainly for business, and to help businesses recruit more people.

“I accept that we are going to have to make difficult decisions, not do all the spending that everyone would want. But what I would say in the longer run is if you want to put more money into the NHS, you need a strong economy.”

The chancellor also attempted to draw a line in the sand between the Tories and Labour, adding: “What Conservatives say is the only way that we’ll increase prosperity for families up and down the country is by making businesses more competitive. It’s what economists call supply side measures.

“The Labour approach is to boost demand in the economy by raising borrowing by £28bn a year. I agree that has a short term impact, but the longer term result of increasing borrowing is more debt, higher debt payments, that means that taxes have to go up to pay for them, that makes our economy less competitive.

“So there is a very big difference between the Conservative approach and the Labour approach. And why, in the end, do people vote Conservative in elections? It’s because they trust us to make decisions for the long term growth of the economy. That’s what we did yesterday.”

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UK growth ‘a dead end’ under Tories

Giving her assessment of the autumn statement, Labour’s shadow chancellor, Rachel Reeves said there “wasn’t anything… that remotely compensates for the tax increases that we have had under the Conservatives these last four years” and the tax burden under the Tories was just set to increase.

Speaking to Sky News, she added: “In the end, how do you know if you’re better off? It’s your bank balance.

“And the truth is that this will be the first parliament ever where real disposable incomes are going to be lower at the end of it than they were at the beginning.

“People can see that when they look at their bank statements, when they log in to their bank accounts and see that the taxes that are being taken, the mortgage payments that are going out, the gas and electricity bills… that again are going to rise in January, all putting big pressure on the family finances and the tax increases that have already been announced [are more] than the chancellor gave back yesterday.”

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Eight arrests in connection with two separate terrorism investigations

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Eight arrests in connection with two separate terrorism investigations

Eight men have been arrested by the Metropolitan Police in two unconnected but “significant” terrorism investigations.

In one operation on Saturday, counter-terror officers arrested five men – four of whom are Iranian nationals – as they swooped in on various locations around the country. All are in police custody.

The Met said the arrests related to a “suspected plot to target a specific premises”.

In an update shortly after midnight, the force said: “Officers have been in contact with the affected site to make them aware and provide relevant advice and support, but for operational reasons, we are not able to provide further information at this time.”

Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “Counter-terrorism policing, supported by police and colleagues from across the country, have conducted arrests in two really significant operations, both of which have been designed to keep the public safe from threats.

“There are several hundred officers and staff working on this investigation, and we will work very hard to ensure we understand the threats to the wider public.”

He refused to say if the plot was related to Israel, but described it as “certainly significant” and said “it is unusual for us to conduct this scale of activity”.

He also asked the public to “avoid speculation and some of the things that are being posted online”.

MI5 director general Ken McCallum said in October that the intelligence agency had responded to 20 “potentially lethal” Iran-backed plots since 2022. He warned of the risk of an “increase or broadening of Iranian state aggression in the UK”.

Read more: Terror arrests came in context of raised warnings about Iran

Children ‘petrified’ by armed police

Rochdale resident Kyle Warren, who witnessed one of the arrests at a neighbouring house, said his children had been playing in the garden when they came running into the house, saying a man in a mask had told them to go inside.

“Obviously, I was a bit worried,” Mr Warren told Sky News’ Lisa Dowd, and so he went into the garden to investigate.

“As we’ve come out, we just heard a massive bang, seen loads of police everywhere with guns, shouting at us to get inside the house.”

Kyle Warren said his children were 'petrified'
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Kyle Warren said his children were ‘petrified’

From upstairs in his house, he then heard “loads of shouting in the house” and saw a man being pulled out of the back of the house, “dragged down the side entry and thrown into all the bushes and then handcuffed”.

There were about 20 to 30 officers with guns, he believes.

“It’s just shocking, really. You don’t expect it on your doorstep.”

His daughters were “petrified… I don’t think they’ve ever seen a gun, so to see 20 masked men with guns running round was quite scary for them”.

Mr Warren, who only moved into his house a year ago, said he had “never really seen anyone going in or out” of the house and actually thought it was empty.

One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash
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One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash

One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash
Image:
One suspect was arrested in Cheadle Hulme, Greater Manchester. Pic: Sarah Cash

Arrests and searches around the country

The Met added officers were carrying out searches at a number of addresses in the Greater Manchester, London and Swindon areas in connection with the investigation.

It said those detained were:

• A 29-year-old man arrested in the Swindon area
• A 46-year-old man arrested in west London
• A 29-year-old man arrested in the Stockport area
• A 40-year-old man arrested in the Rochdale area
• A man whose age was not confirmed arrested in the Manchester area.

Passenger footage of a police van in Stockport over the terrorism arrest SQUARE OR PORTRAIT
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A 29-year-old man was arrested in the Stockport area

Terror arrests in separate investigation

Police also arrested three further Iranian nationals in London on Saturday as part of another, unrelated counter-terror investigation.

The suspects were detained under section 27 of the National Security Act 2023, which allows police to arrest those suspected of being “involved in foreign power threat activity”.

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Home Secretary Yvette Cooper said: “These were two major operations that reflect some of the biggest counter state threat and counter terrorism operations that we have seen in recent years.

“This reflects the complexity of the kinds of challenges to our national security that we continue to face.”

Earlier, she thanked police and security services in a statement, and called the incidents “serious events that demonstrate the ongoing requirement to adapt our response to national security threats”.

Last year, the government placed the whole of the Iranian state – including its intelligence services – on the enhanced tier of the new foreign influence registration scheme.

It means anyone asked by Iran to carry out actions for the state must declare it, or face prison time.

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Terror arrests came in context of raised warnings about Iran, with ongoing chaos in its own backyard

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Terror arrests came in context of raised warnings about Iran, with ongoing chaos in its own backyard

These are two separate and unrelated investigations by counter-terror officers.

But the common thread is nationality – seven out of the eight people arrested are Iranian.

And that comes in the context of increased warnings from government and the security services about Iranian activity on British soil.

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Counter terror officers raid property

Last year, the director general of MI5, Ken McCallum, said his organisation and police had responded to 20 Iran-backed plots presenting potentially lethal threats to British citizens and UK residents since January 2022.

He linked that increase to the ongoing situation in Iran’s own backyard.

“As events unfold in the Middle East, we will give our fullest attention to the risk of an increase in – or a broadening of – Iranian state aggression in the UK,” he said.

The implication is that even as Iran grapples with a rapidly changing situation in its own region, having seen its proxies, Hezbollah in Lebanon and Hamas in Gaza, decimated and itself coming under Israeli attack, it may seek avenues further abroad.

More on Iran

The government reiterated this warning only a few weeks ago, with security minister Dan Jarvis addressing parliament.

“The threat from Iran sits in a wider context of the growing, diversifying and evolving threat that the UK faces from malign activity by a number of states,” Jarvis said.

“The threat from states has become increasingly interconnected in nature, blurring the lines between: domestic and international; online and offline; and states and their proxies.

“Turning specifically to Iran, the regime has become increasingly emboldened, asserting itself more aggressively to advance their objectives and undermine ours.”

Read more:
Anybody working for Iran in UK must register or face jail, government announces

As part of that address, Jarvis highlighted the National Security Act 2023, which “criminalises assisting a foreign intelligence service”, among other things.

So it was notable that this was the act used in one of this weekend’s investigations.

The suspects were detained under section 27 of the same act, which allows police to arrest those suspected of being “involved in foreign power threat activity”.

Those powers are apparently being put to use.

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Pictured: Boy killed in Gateshead industrial estate fire – 14 children arrested on suspicion of manslaughter

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Pictured: Boy killed in Gateshead industrial estate fire - 14 children arrested on suspicion of manslaughter

Tributes have been paid to 14-year-old Layton Carr who died in a fire at an industrial estate.

Eleven boys and three girls, aged between 11 and 14 years, have been arrested on suspicion of manslaughter after the incident in Gateshead on Friday. They remain in police custody.

Drone view showing the aftermath of a fire at Fairfield industrial park at Bill Quay, Gateshead
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Police were alerted to a fire at Fairfield industrial park in the Bill Quay area

Firefighters raced to Fairfield industrial park in the Bill Quay area shortly after 8pm, putting out the blaze a short time later.

Police then issued an appeal for a missing boy, Layton Carr, who was believed to be in the area at the time.

In a statement, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.

Layton’s next of kin have been informed and are being supported by specialist officers, police added.

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Teenager dies in industrial estate fire

A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.

Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”

One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”

Another added: “My boy ❤️ my baby cousin, my Layton. Nothing will ever come close to the pain I feel right now. Forever 14. I’ll miss you sausage.”

A third said: “Rest in peace big lad such a beautiful soul taken far to soon my thoughts are with you Gee stay strong girl hear for u always.”

Read more from Sky News:
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Compensation scheme scrapped for child sexual abuse victims

Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”

She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.

They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.

A cordon remains in place at the site while police carry out enquiries.

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