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Rishi Sunak has said the UK is “not seeking a confrontation” with Yemen’s Houthi fighters, but it will strike again if their attacks in the Red Sea continue – as a minister warned things “may get more tricky” in the region.

Royal Air Force (RAF) jets took part in a second wave of joint US-UK action against the group on Monday night after further attacks on the vital shipping lane.

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PM says UK ‘not seeking confrontation’ with Houthis

The prime minister told MPs on Tuesday: “We are not seeking a confrontation. We urge the Houthis and those who enable them to stop these illegal and unacceptable attacks.

“But, if necessary, the United Kingdom will not hesitate to respond again in self-defence.

“We cannot stand by and allow these attacks to go unchallenged. Inaction is also a choice.”

Meanwhile, Transport Secretary Mark Harper warned the situation could get worse in the Red Sea while speaking at an event in London.

More on Houthi Rebels

Mr Harper said he had met with shipping executives last week to discuss the situation, saying they supported the UK’s action.

“They recognise things may get more tricky before they get better, but it is very important that we degrade both the Houthis intent to attack shipping and their capability to do so,” he added.

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Tell MPs about airstrikes ‘ASAP’

Four RAF Typhoons and a pair of Voyager tankers were involved in the latest action.

Several targets were hit at two military sites north of Yemen’s capital Sanaa.

Mr Sunak said the strikes were aimed at sites the Houthis use to support their attacks on shipping and “all intended targets were destroyed”.

The Houthis, who are backed by Iran, have been targeting shipping they claim is linked to Israel in the context of the conflict with Hamas.

But the UK and its allies have warned the attacks are indiscriminate and have included targeting Royal Navy and allied warships.

The Red Sea route leading to and from the Suez Canal is one of the world’s most important shipping routes and there are concerns the cost of diverting vessels away from it, around southern Africa, will fuel inflation and damage the global economy.

Outlining the UK’s wider approach to the situation, Mr Sunak said new sanctions would be announced “in the coming days” and in the long term, the UK must “end the illegal flow of arms to the Houthi militia”.

He said this would include “working closely with our allies and partners to disrupt and deter the supply of weapons and components”.

“We are going to use the most effective means at our disposal to cut off the Houthis’ financial resources where they are used to fund these attacks,” he added.

“We are working closely with the United States on this and plan to announce new sanction measures in the coming days.”

Mr Sunak also said the UK will continue to deliver aid to Yemen, which is embroiled in a civil war.

Middle East latest:
Houthis warn UK and US to ‘expect a response’

Questions escalating about where Houthi strikes may lead


Tamara Cohen

Tamara Cohen

Political correspondent

@tamcohen

Rishi Sunak said the threat to UK vessels in the Red Sea was “ongoing and imminent” – hence the need for a small circle of trust.

We now know only key ministers attended an emergency COBRA meeting with Lord Cameron during the early evening yesterday.

The full cabinet, the leader of the opposition and the Commons Speaker were informed at around 10pm, when the strikes were under way.

But as the Houthis have carried out another 12 attacks in the 10 days since the last airstrikes the UK took part in, there is little sense their campaign is at an end.

Many of the questions asked by MPs earlier today were about whether this is now a prolonged campaign.

The prime minister insisted no decision had been taken on whether it would continue – but further strikes had not been ruled out.

He and Sir Keir Starmer both emphasised they do not take the Houthis at their word that this is about the conflict in Gaza, saying the attacks are indiscriminate and, as Mr Sunak put it, “serving their own selfish ends”.

“Those who make that link do the Houthis’ work for them,” he said, while Sir Keir said he “totally rejects the Houthi claims”.

Liberal Democrat leader Sir Ed Davey – who also backed the strikes on the Houthis “as long as they remain limited” – is among those calling for a Commons vote on the action, along with the SNP.

There are no plans for one, although there will be a longer debate tomorrow, and this is currently a vote the government would win with overwhelming support.

What is escalating are questions about where this may lead.

Sir Keir Starmer said he backed the “targeted action to reinforce maritime security in the Red Sea”.

He told MPs: “The Houthi attacks must stop. They are designed to destabilise us so we must stand united and strong, they bring danger to ordinary civilians who are working hard at sea, so we must protect them, and they aim to disrupt the flow of goods, food and medicines, so we must not let them go unaddressed.”

It follows criticism that the Labour leader and the Commons speaker were not briefed on the operation ahead of time.

Sir Keir and Sir Lindsay Hoyle were informed by Downing Street at the time of the strikes rather than before – as was the case in the last round of action on 11 January.

MPs will get the chance to debate the situation on Wednesday but will not be given a vote on the military action.

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Labour: ‘We back this targeted action’

The prime minister’s official spokesman said he was “acting in line with precedence”, given military action is a prerogative matter.

However, many MPs want a vote, as they are concerned about the conflict in the Middle East escalating.

Labour MP Apsana Begum said the strikes in Yemen “escalates risks” in the region, but the prime minister said it was wrong to “draw a link” between the action in the Red Sea and the war in Gaza.

As the prime minister spoke, the government published its legal position on the situation.

It said action to “downgrade the Houthi’s capabilities and deter further attacks was lawfully taken”.

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Thiel-backed Erebor wins US approval as Silicon Valley Bank rival emerges

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Thiel-backed Erebor wins US approval as Silicon Valley Bank rival emerges

Thiel-backed Erebor wins US approval as Silicon Valley Bank rival emerges

Erebor’s green light from US regulators is among the most significant bank charter approvals tied to digital assets since the 2023 regional banking crisis.

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China Merchants Bank tokenizes $3.8B fund on BNB Chain in Hong Kong

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China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

China Merchants Bank tokenizes .8B fund on BNB Chain in Hong Kong

CMBI’s tokenization initiative with BNB Chain builds on its previous work with Singapore-based DigiFT, which tokenized its fund on Solana in August.

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Chancellor admits tax rises and spending cuts considered for budget

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Chancellor admits tax rises and spending cuts considered for budget

Rachel Reeves has told Sky News she is looking at both tax rises and spending cuts in the budget, in her first interview since being briefed on the scale of the fiscal black hole she faces.

“Of course, we’re looking at tax and spending as well,” the chancellor said when asked how she would deal with the country’s economic challenges in her 26 November statement.

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Ms Reeves was shown the first draft of the Office for Budget Responsibility’s (OBR) report, revealing the size of the black hole she must fill next month, on Friday 3 October.

She has never previously publicly confirmed tax rises are on the cards in the budget, going out of her way to avoid mentioning tax in interviews two weeks ago.

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Chancellor pledges not to raise VAT

Cabinet ministers had previously indicated they did not expect future spending cuts would be used to ensure the chancellor met her fiscal rules.

Ms Reeves also responded to questions about whether the economy was in a “doom loop” of annual tax rises to fill annual black holes. She appeared to concede she is trapped in such a loop.

Asked if she could promise she won’t allow the economy to get stuck in a doom loop cycle, Ms Reeves replied: “Nobody wants that cycle to end more than I do.”

She said that is why she is trying to grow the economy, and only when pushed a third time did she suggest she “would not use those (doom loop) words” because the UK had the strongest growing economy in the G7 in the first half of this year.

What’s facing Reeves?

Ms Reeves is expected to have to find up to £30bn at the budget to balance the books, after a U-turn on winter fuel and welfare reforms and a big productivity downgrade by the OBR, which means Britain is expected to earn less in future than previously predicted.

Yesterday, the IMF upgraded UK growth projections by 0.1 percentage points to 1.3% of GDP this year – but also trimmed its forecast by 0.1% next year, also putting it at 1.3%.

The UK growth prospects are 0.4 percentage points worse off than the IMF’s projects last autumn. The 1.3% GDP growth would be the second-fastest in the G7, behind the US.

Last night, the chancellor arrived in Washington for the annual IMF and World Bank conference.

Read more:
Jobs market continues to slow
Banks step up lobbying over threat of tax hikes

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The big issues facing the UK economy

‘I won’t duck challenges’

In her Sky News interview, Ms Reeves said multiple challenges meant there was a fresh need to balance the books.

“I was really clear during the general election campaign – and we discussed this many times – that I would always make sure the numbers add up,” she said.

“Challenges are being thrown our way – whether that is the geopolitical uncertainties, the conflicts around the world, the increased tariffs and barriers to trade. And now this (OBR) review is looking at how productive our economy has been in the past and then projecting that forward.”

She was clear that relaxing the fiscal rules (the main one being that from 2029-30, the government’s day-to-day spending needs to rely on taxation alone, not borrowing) was not an option, making tax rises all but inevitable.

“I won’t duck those challenges,” she said.

“Of course, we’re looking at tax and spending as well, but the numbers will always add up with me as chancellor because we saw just three years ago what happens when a government, where the Conservatives, lost control of the public finances: inflation and interest rates went through the roof.”

Pic: PA
Image:
Pic: PA

Blame it on the B word?

Ms Reeves also lay responsibility for the scale of the black hole she’s facing at Brexit, along with austerity and the mini-budget.

This could risk a confrontation with the party’s own voters – one in five (19%) Leave voters backed Labour at the last election, playing a big role in assuring the party’s landslide victory.

The chancellor said: “Austerity, Brexit, and the ongoing impact of Liz Truss’s mini-budget, all of those things have weighed heavily on the UK economy.

“Already, people thought that the UK economy would be 4% smaller because of Brexit.

“Now, of course, we are undoing some of that damage by the deal that we did with the EU earlier this year on food and farming, goods moving between us and the continent, on energy and electricity trading, on an ambitious youth mobility scheme, but there is no doubting that the impact of Brexit is severe and long-lasting.”

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