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A reduction in national insurance would be a “union tax cut”, the prime minister has said ahead of the budget next week.

Rishi Sunak told journalists at the Scottish Conservative conference in Aberdeen on Friday that while he could not comment on what the chancellor Jeremy Hunt will announce on 6 March, he could see the case for trimming the levy – which is paid by workers across the UK – over income tax.

When asked about the fact a cut in the headline rate of income tax may not benefit voters in Scotland if the SNP government chooses not to pass it on, he said national insurance had been cut in January because it is a “tax on work” and benefits all parts of the nation.

Politics latest: PM delivers Downing Street address

“I’m sure people will appreciate that I can’t comment on any fiscal policy in advance of the budget,” he said.

“But to your broader point, the chancellor and UK government chose to cut national insurance, for lots of reasons but first and foremost because it’s a tax on work and I believe in a country and society where hard work is rewarded.”

He added: “It’s also important to us to be a government that delivers for people in every part of the United Kingdom.

“It’s a union tax cut and a tax cut for everyone in work and the contrast between what we’re doing and what the SNP are doing couldn’t be starker.

“I want to make life easier for people, I want to give them the peace of mind there’s a brighter future for them and their families.”

Jeremy Hunt, pictured at last year's budget, is under pressure to deliver for his parties electoral hopes
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Jeremy Hunt will give his budget on 6 March

Some Conservative MPs have been pushing for a pre-election cut to income tax in the hope of boosting the Conservatives’ flagging popularity.

It was also one of the promises of Mr Sunak’s leadership campaign.

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In Scotland, where the Conservatives are up against the SNP in all of the seats they hold and are targeting, the prime minister has dubbed the SNP the “high tax capital of the United Kingdom”, with Scots earning around £28,000 a year already paying more income tax than those who live in England due to policy decisions at Holyrood.

MSPs passed the final budget for the next financial year this week, including a new income tax band being created, which will see those on a salary between £75,000 and £125,140 paying 45%; while a 1% increase to the highest rate of tax – for those earning more than £125,140 – will take it to 48p in the pound.

In passing the budget, deputy first minister Shona Robison insisted Scotland’s tax system was “progressive” and will provide £500m in funding for the NHS.

Scotland Secretary Alister Jack confirmed he had been lobbying the chancellor for a cut in national insurance – rather than income tax.

Mr Sunak would not comment on reports the government is considering raising revenue by increasing the windfall tax on oil and gas companies, or may force “non-doms” to pay UK tax on foreign income – both ideas Labour has put forward.

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Indian authorities seize $190M in crypto tied to BitConnect Ponzi scheme

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Indian authorities seize 0M in crypto tied to BitConnect Ponzi scheme

Indian authorities have seized nearly $190 million worth of crypto tied to the notorious BitConnect Ponzi scheme, which collapsed in 2018.

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‘Once in a generation moment’: Starmer vows to ‘keep US and Europe together’ amid Russia threat

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US officials heading to Saudi Arabia for Russia-Ukraine peace talks

The prime minister has spoken of a “once in a generation moment” for the UK, US and Europe to work together and warned against NATO “divisions” – as two senior American officials head to Saudi Arabia for peace talks between Russia and Ukraine.

Sir Keir Starmer said the UK will “work to ensure we keep the US and Europe together” amid the threat faced from Russia.

His comments came after the Ukrainian president cautioned: “The old days are over when America supported Europe just because it always had.”

Earlier on Saturday, US officials confirmed Europe would not be involved in the upcoming peace talks between Russia and Ukraine.

Analysis: Peace talks risk short-term win that rewards Putin

Washington also sent a questionnaire to European capitals to ask what they could contribute to security guarantees for Kyiv.

“It’s clear Europe must take on a greater role in NATO,” said Sir Keir on Saturday night.

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“We cannot allow any divisions in the alliance to distract from the external enemies we face.”

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Zelenskyy warns against the ‘danger’ of the Russian army

The French president is thought to be convening crisis talks between European leaders and NATO, which the prime minister will attend.

Sir Keir will then take messages from that meeting to Washington DC when he meets US President Donald Trump the week after, according to Downing Street sources.

During a talk at a security conference in Munich, Poland’s foreign minister Radosław Sikorski said he was “very glad that President Macron has called our leaders to Paris” to discuss “in a very serious fashion” the challenges posed by Mr Trump.

Meanwhile, US national security adviser Mike Waltz and special envoy Steve Witkoff are thought to be going to Saudi Arabia for peace talks between Ukraine and Russia, according to two sources familiar with the matter who spoke to Sky News’ US partner network NBC News.

On Wednesday, Mr Trump said there had been an agreement to begin negotiations about ending the war in Ukraine, after holding phone calls with Russia’s Vladimir Putin and Ukraine’s Volodymyr Zelenskyy.

The Ukrainian president alluded to the conversations at the Munich Security Conference on Saturday, suggesting Europe should be playing a role in the negotiations as well.

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‘We need a European army’

“Ukraine will never accept deals made behind our backs without our involvement, and the same rule should apply to all of Europe,” Mr Zelenskyy said.

“The old days are over when America supported Europe just because it always had.”

He told world leaders it is time for the creation of an “armed forces of Europe”, adding his army was “not enough”.

Following his call with President Putin, Mr Trump posted on Truth Social saying: “We both agreed, we want to stop the millions of deaths taking place in the War with Russia/Ukraine.”

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‘Unlikely’ Ukraine gets old borders back

Mr Trump had told White House reporters he did not see any way “that a country in Russia’s position” could allow Ukraine to join NATO and that it was unlikely Ukraine would get all of its occupied land back.

It comes after Sir Keir told Mr Zelenskyy in recent days that Ukraine was still on an “irreversible path” to joining NATO.

However, on Saturday, the US special envoy for Ukraine Keith Kellogg said peace talks could focus on territorial concessions from Russia and targeting Mr Putin’s oil revenues.

“Russia is really a petrostate,” he said as he suggested Western powers needed to do more to enforce sanctions on Russia.

Mr Zelenskyy said the main issue in peace talks was to “not allow everything to go according to Putin’s plan”.

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Tether working with US lawmakers to shape stablecoin policy: report

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Tether working with US lawmakers to shape stablecoin policy: report

According to data from CoinMarketCap, Tether has a market capitalization of over $142 billion — making it the largest stablecoin issuer.

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