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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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Special educational needs children ‘segregated and left to struggle in wrong schools to save money’

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Special educational needs children 'segregated and left to struggle in wrong schools to save money'

Children with special educational needs are being “segregated” and left to struggle in the wrong schools because councils are trying to “save on costs”, parents have told Sky News. 

Maire Leigh Wilson, whose four-year-old son has Down syndrome, says she “shudders to think” where he would be now had she not been in a “constant battle” with her council.

“I think he would probably just be at the back of a classroom, running around with no support and no ability to sign or communicate,” she said.

Mrs Leigh Wilson wanted her son Aidan to go to a mainstream school with additional specialist support, but her council, who decide what is known as a child’s Education Health and Care Plan (EHCP), wanted him to attend a special school.

The number of EHCPs being appealed by parents has risen “massively”, according to education barrister Alice De Coverley.

She said councils are struggling to meet the volume of demand with “stretched budgets”, and parents are also more aware of their ability to appeal.

Mrs De Coverley said more than 90% of tribunals are won by parents, in part because councils do not have the resources to fight their cases.

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She said, in her experience, parents of children with special educational needs will put “anything on the line, their homes, their jobs”.

On whether she thinks the system is rigged against parents, Mrs De Coverley said: “I’m not sure it’s meant to be. But I think that parents are certainly finding it very tough.”

She added the number of “unlawful decisions” being made by local authorities means parents who can afford it are being “utterly burnt out” by legal challenges.

Read more:
Three in four parents of SEND children forced to give up work or cut hours

Maire Leigh Wilson with her son, Aiden, four
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Maire Leigh Wilson with her son, Aidan, four

Mrs Leigh Wilson’s case was resolved before making it to court.

Her council, Hounslow in southwest London, said they complete more than four in five new EHCPs within the statutory 20-week timescale, twice the national average.

Hounslow Council said they “put families at the heart of decision-making” and young people in the area with special educational needs and disabilities achieve, on average, above their peers nationally.

They admitted there are areas of their offer “that need to be further improved” and they are “working closely with families as a partnership”.

“We have a clear and credible plan to achieve this, and we can see over the last 18 months where we have focused our improvement work, the real benefits of an improved experience for children, young people, and their families,” a Hounslow Council spokesman said.

He added the council had seen the number of EHCPs double in the last decade and they “share parents’ frustrations amid rising levels of national demand, and what’s widely acknowledged as a broken SEND system”.

Emma Dunville wanted her son, Albie, to go to a special school but the council took too long to assess him
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Emma Dunville wanted her son, Albie, to go to a special school but the council took too long to assess him

Emma Dunville, a friend of Mrs Leigh Wilson whose son also has Down’s syndrome, describes her experience trying to get the right education provision for her child as “exhausting mentally and physically”.

She said: “For the rest of his life we’ll be battling, battling, battling, everything is stacked up against you.”

Unlike Mrs Leigh Wilson, Mrs Dunville wanted her son Albie to go to a special school, but she had to wait more than a year for an assessment with an education psychologist to contribute to the council’s decision, which meant she missed the deadline for an EHCP.

“The people making these decisions just don’t see that all children with Down’s syndrome are totally different and can’t be seen as the same.”

The guidelines are that if there are not enough local authority-employed education psychologists they should seek a private assessment, but her local authority did not do that.

Mrs Dunville said her son has been “segregated” in a mainstream school, where they are “trying their best” but “it’s just not the right setting”.

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In a time of change Sky News spent a critical year on a farm

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In a time of change Sky News spent a critical year on a farm

Many months before farmers found themselves on the front pages of newspapers, after protesting in Whitehall against the new government’s inheritance tax rules, we at Sky News embarked upon a project.

Most of our reports are relatively short affairs, recorded and edited for the evening news. We capture snapshots of life in households, businesses and communities around the country. But this year we undertook to do something different: to spend a year covering the story of a family farm.

We had no inkling, at the time, that farming would become a front-page story. But even back in January, 2024 was shaping up to be a critical year for the sector. This, after all, was the year the new post-Brexit regime for farm payments would come into full force. Having depended on subsidies each year for simply farming a given acreage of land, farmers were now being asked to commit to different schemes focused less on food than on environmental goals.

This was also the first full year of the new trade deals with New Zealand and Australia. The upshot of these deals is that UK farmers are now competing with two of the world’s major food exporters, who can export more into Britain than they do currently.

You can watch the Sky News special report, The Last Straw, on Sky News at 9pm on Friday

Read more
How climate change and red tape could be jeopardising UK access to affordable food
Rhetoric rises in farmer inheritance tax row – with neither side seemingly prepared to budge

On top of this, the winter that just passed was a particularly tough one, especially for arable farmers. Cold, wet and unpredictable – even more so than the usual British weather. It promised to be a challenging year for growing.

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With all of this in mind, we set out to document what a year like this actually felt like for a farm – in this case Lower Drayton Farm in Staffordshire. In some respects, this mixed farm is quite typical for parts of the UK – they rear livestock and grow wheat, as well as subcontracting some of their fields to potato and carrot growers.

A look at farming reimagined

But in other respects, the two generations of the Bower family here, Ray and Richard, are doing something unusual. Seeing the precipitous falls in income from growing food in recent years, they are trying to reimagine what farming in the 21st century might look like. And in their case, that means building a play centre for children and what might be classified as “agritourism” activities alongside them.

The Bower family
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The Bower family

The upshot is that while much of their day-to-day work is still traditional farming, an increasing share of their income comes from non-food activity. It underlines a broader point: across the country, farmers are being asked to do unfamiliar things to make ends meet. Some, like the Bowers, are embracing that change; others are struggling to adapt. But with more wet years expected ahead and more changes due in government support, the coming years could be a continuing roller coaster for British farming.

With that in mind, I’d encourage you to watch our film of this year through the lens of this farm. It is, we hope, a fascinating, nuanced insight of life on the land.

You can watch the Sky News special report, The Last Straw, on Sky News at 9pm on Friday

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The future of trust is onchain

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The future of trust is onchain

Onchain reputation could reshape trust in digital interactions.

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