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Rishi Sunak said there is “more to come” in terms of tax cuts, in a fresh hint the Tories could offer a pre-election giveaway.

The prime minister said he wanted to slash taxes “when we can responsibly do so”, echoing comments made by the chancellor this week.

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Talking to Sky News on the fringes of the World Economic Forum in Davos, Jeremy Hunt said on Thursday that “the direction of travel” was for the UK to emulate successful low-tax economies.

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Sunak confronted by former NHS worker

Mr Sunak, speaking to broadcasters during a visit to Hampshire, said the 2p cut to the main rate of national insurance that came into force this month had already been a “tax cut for 27 million people in work”.

He continued: “And we said that we do want to cut taxes for future events when we can responsibly do so.

“Our priorities are very clear. It is controlling spending and welfare so that we can cut people’s taxes.

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“The plan is working, because we are already doing it – stick with it and there is more to come.”

Tax experts and opposition MPs have disputed calling the national insurance change a “cut”, saying the benefits are effectively cancelled out by the government’s previous freezing of tax thresholds.

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Chancellor says he wants to cut taxes

Mr Sunak introduced the freezes when he was chancellor back in 2021 and as prime minister extended the time they would need to be in place, from 2026 to 2028.

The Institute for Fiscal Studies said this means that even with the national insurance cut, this will be the biggest tax-rising parliament on record, with taxes expected to reach a post-war high by the time of the election.

The bleak forecast has seen Mr Sunak come under pressure from Tory MPs to cut more taxes to turn around his party’s fortunes in the polls – but his room for manoeuvre is limited if he wants to meet his target of getting debt falling as a proportion of gross domestic product (GDP).

The prime minister has suggested cuts could be funded by tightening welfare rules, with the government seeking to bring in reforms which make it harder for people to claim out-of-work and sick benefits.

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With an election expected this year, the spring budget will be one of the last chances for ministers to announce tax cuts.

Speaking from Davos, Mr Hunt said while he has yet to see the fiscal numbers ahead of the March event, he is hopeful of reducing taxes.

“I look around the world and I see that the parts of the world like the United States, like Asia, that are growing the fastest, have the most dynamic economies, tend to be places with lower taxes,” he said.

“And that was why in the autumn statement, we decisively cut taxes.

“So my priority in the budget will be growth – because if I can grow the economy, that will mean that then we have more money for the NHS, we can relieve the pressure on families, we can invest in our brilliant armed forces.”

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Starmer v Streeting: What’s going on?

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Starmer v Streeting: What's going on?

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What is going on?

Sam and Anne share notes on the late night WhatsApp chats following a day of briefings about Sir Keir Starmer’s future (and the WhatsApps keep coming as we record).

The message from the PM’s team was if there’s a leadership challenge – from the someone in his own cabinet or elsewhere – he’d stand and fight.

Allies of Team Starmer have pointed a finger at Wes Streeting.

He’s denied any plot and has got an opportunity on the morning round to bolster that.

As one government figure said to Sam – “bonkers”. If the PM doesn’t trust the health secretary – how does he stay?

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New law could help tackle AI-generated child abuse at source, says watchdog

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New law could help tackle AI-generated child abuse at source, says watchdog

Groups tackling AI-generated child sexual abuse material could be given more powers to protect children online under a proposed new law.

Organisations like the Internet Watch Foundation (IWF), as well as AI developers themselves, will be able to test the ability of AI models to create such content without breaking the law.

That would mean they could tackle the problem at the source, rather than having to wait for illegal content to appear before they deal with it, according to Kerry Smith, chief executive of the IWF.

The IWF deals with child abuse images online, removing hundreds of thousands every year.

Ms Smith called the proposed law a “vital step to make sure AI products are safe before they are released”.

An IWF analyst at work. Pic: IWF
Image:
An IWF analyst at work. Pic: IWF

How would the law work?

The changes are due to be tabled today as an amendment to the Crime and Policing Bill.

The government said designated bodies could include AI developers and child protection organisations, and it will bring in a group of experts to ensure testing is carried out “safely and securely”.

The new rules would also mean AI models can be checked to make sure they don’t produce extreme pornography or non-consensual intimate images.

“These new laws will ensure AI systems can be made safe at the source, preventing vulnerabilities that could put children at risk,” said Technology Secretary Liz Kendall.

“By empowering trusted organisations to scrutinise their AI models, we are ensuring child safety is designed into AI systems, not bolted on as an afterthought.”

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AI child abuse image-maker jailed

AI abuse material on the rise

The announcement came as new data was published by the IWF showing reports of AI-generated child sexual abuse material have more than doubled in the past year.

According to the data, the severity of material has intensified over that time.

The most serious category A content – images involving penetrative sexual activity, sexual activity with an animal, or sadism – has risen from 2,621 to 3,086 items, accounting for 56% of all illegal material, compared with 41% last year.

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The data showed girls have been most commonly targeted, accounting for 94% of illegal AI images in 2025.

The NSPCC called for the new laws to go further and make this kind of testing compulsory for AI companies.

“It’s encouraging to see new legislation that pushes the AI industry to take greater responsibility for scrutinising their models and preventing the creation of child sexual abuse material on their platforms,” said Rani Govender, policy manager for child safety online at the charity.

“But to make a real difference for children, this cannot be optional.

“Government must ensure that there is a mandatory duty for AI developers to use this provision so that safeguarding against child sexual abuse is an essential part of product design.”

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Coinbase Business launches in Singapore to reshape payments with USDC

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Coinbase Business launches in Singapore to reshape payments with USDC

Coinbase Business, a new business platform from major US crypto exchange Coinbase, has launched in Singapore, marking the company’s first international expansion.

After introducing Coinbase Business in June, Coinbase has rolled out the platform in Singapore as its first international market outside of the US, the company announced on Wednesday.

Targeting startups and small businesses, Coinbase Business provides an “all-in-one crypto operating platform” that allows users to send and receive payments in Coinbase-backed stablecoin USDC (USDC), manage crypto assets and automate financial workflows.

“By leveraging the speed and stability of digital dollars like USDC, we offer businesses a platform that enables seamless and secure trading, with instant settlement, minimal fees, and zero chargebacks,” the company said.

Strategic cooperation with Standard Chartered

Coinbase is rolling out the service in cooperation with Standard Chartered, its local banking partner, to enable Singapore dollar transfers for both retail and business clients.

With Standard Chartered’s support, Coinbase Business provides Singapore businesses with a suite of tools, including crypto trading, global payouts, payment links with a 1% transaction fee and asset management with rewards on USDC holdings.

Source: Coinbase Singapore

Coinbase Business’s launch in Singapore builds on Coinbase’s long-standing collaboration with the Monetary Authority of Singapore (MAS), the country’s financial regulator.

In October 2023, MAS granted Coinbase a Major Payment Institution (MPI) license, allowing the exchange to expand its digital payment token services to both individual and institutional clients in Singapore.

Related: Coinbase debuts token sale platform with Monad launch

Last month, Coinbase announced participation in the MAS BLOOM (Borderless, Liquid, Open, Online, Multi-currency) program, which aims to expand financial settlement capabilities by enabling the use of tokenized bank liabilities and regulated stablecoins.

“This collaboration with the MAS demonstrates how we are actively working to build the regulated, compliant infrastructure that underpins the next era of finance,” Coinbase noted.