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Chancellor Jeremy Hunt has hinted that cuts to public services may be used to pay for an election-year reduction in taxes.

On the Politics at Jack and Sam’s podcast, it was revealed Mr Hunt was considering a last minute further cut to public spending to boost the tax giveaway in the spring budget.

Mr Hunt is set to deliver the 2024 Budget at Wednesday lunchtime. The government is using the fiscal event to try and win back voters ahead of the general election expected to take place later this year.

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Speaking to broadcasters on Monday, Mr Hunt repeated his stance that low-tax economies are “growing the fastest” and are “more dynamic, more energetic, more entrepreneurial”.

He said: “So we do want to move to a lower taxed economy, but we’re only going to do so in a way that is responsible and recognises that there are things that taxes pay for, that we couldn’t cut taxes by borrowing.

“We’ll do so in a responsible way. But if we can spend money on public services more efficiently, then that will mean less pressure on taxpayers.”

Paul Johnson, the director of the Institute for Fiscal Studies, told Sky News on Sunday that any tax cuts proposed this week would have to be “undone” after the election.

Read more:
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Unfunded tax cuts ‘deeply unconservative’ – Hunt

When is the budget? Timings and how to watch

Jeremy Hunt is set to deliver the budget this week. Pic: PA
Image:
Jeremy Hunt is set to deliver the budget this week. Pic: PA

One measure that has been mooted as a cash-raiser for Treasury coffers is ending or reducing “non-dom” tax breaks.

Mr Hunt has refused to be drawn on whether he will adopt the measure.

But one Tory MP – Simon Clarke – has warned colleagues they should be “very, very careful what we wish for” when it comes to the proposed change, reposting on social media a thread about the claimed benefits to the UK economy of the status.

Non-doms only have to pay tax on money earned in the UK, while their overseas income and wealth are not subject to UK tax – and they can benefit from the status for up to 15 years.

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Labour’s shadow education secretary Bridget Phillipson said it would be an “abject humiliation” for the Tories if they implemented Labour’s nom-dom policy given cabinet ministers had “spent years rubbishing this idea”.

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Crypto influencers are replacing VCs, and that’s a good thing

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Crypto influencers are replacing VCs, and that’s a good thing

Crypto influencers are replacing VCs, and that’s a good thing

Crypto influencers democratize early-stage investing by offering transparent, accessible opportunities that VCs keep behind closed doors for the elite.

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UK, Australia, Germany, Italy and New Zealand condemn Israel’s plan for new operation in Gaza

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UK joins four countries in condemning Israel's plan for new operation in Gaza

The UK and four allies have criticised Israel’s decision to launch a new large-scale military operation in Gaza – warning it will “aggravate the catastrophic humanitarian situation” in the territory.

The foreign ministers of Britain, Australia, Germany, Italy and New Zealand said in a joint statement that the offensive will “endanger the lives of hostages” and “risk violating international humanitarian law”.

It comes a day after Israel’s security cabinet approved an operation to take military control of Gaza City – and concluded a full takeover of the enclave is required to end the conflict.

It marks another escalation in the war in Gaza, sparked by the Hamas attack of 7 October 2023.

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Can Netanyahu defeat Hamas ideology?

In their joint statement, the UK and its allies said they “strongly reject” the decision, adding: “It will endanger the lives of the hostages and further risk the mass displacement of civilians.

“The plans that the government of Israel has announced risk violating international humanitarian law. Any attempts at annexation or of settlement extension violate international law.”

The countries also called for a permanent ceasefire as “the worst-case scenario of famine is unfolding in Gaza”.

It comes as Sky News analysis has found that airdrops of aid are making little difference to Gaza’s hunger crisis, and pose serious risks to the population – with a father-of-two killed by a falling package.

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Revealed: The dangers of airdrops

Meanwhile, France, Canada, Qatar, the United Arab Emirates and the United Nations all criticised Israel’s plan for a full occupation of Gaza.

Israeli Prime Minister Benjamin Netanyahu “expressed his disappointment” with German Chancellor Friedrich Merz’s in phone call on Friday after Berlin decided it would stop selling arms to Israel.

In a post on X, the Israeli prime minister’s office added: “Instead of supporting Israel’s just war against Hamas, which carried out the most horrific attack against the Jewish people since the Holocaust, Germany is rewarding Hamas terrorism by embargoing arms to Israel.”

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Inside plane dropping aid over Gaza

US ambassador hits out at Starmer

Earlier on Friday, the US Ambassador to Israel, Mike Huckabee, criticised Sir Keir Starmer after he said Israel’s decision to “escalate its offensive” in Gaza is “wrong”.

Mr Huckabee wrote on X: “So Israel is expected to surrender to Hamas & feed them even though Israeli hostages are being starved? Did UK surrender to Nazis and drop food to them? Ever heard of Dresden, PM Starmer? That wasn’t food you dropped. If you had been PM then UK would be speaking German!”

Read more:
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How life and colour has been stripped from Gaza

In another post around an hour later Mr Huckabee wrote: “How much food has Starmer and the UK sent to Gaza?

“@IsraeliPM has already sent 2 MILLION TONS into Gaza & none of it even getting to hostages.”

Sir Keir has pledged to recognise a Palestinian state in September unless the Israeli government meets a series of conditions towards ending the war in Gaza.

The UK and its allies criticised Israel as US President JD Vance and UK Foreign Secretary David Lammy met at Chevening House in Kent on Friday.

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Lammy-Vance bromance: Will it last?

Mr Vance described a “disagreement” about how the US and UK could achieve their “common objectives” in the Middle East, and said the Trump administration had “no plans to recognise a Palestinian state”.

He said: “I don’t know what it would mean to really recognise a Palestinian state given the lack of functional government there.”

Mr Vance added: “There’s a lot of common objectives here. There is some, I think, disagreement about how exactly to accomplish those common objectives, but look, it’s a tough situation.”

The UN Security Council will meet on Saturday to discuss the situation in the Middle East.

Ambassador Riyad Mansour, permanent observer of the State of Palestine to the United Nations, said earlier on Friday that a number of countries would be requesting a meeting of the UN Security Council on Israel’s plans.

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BlackRock launching a SOL ETF in first wave would be ‘messed up’ — Analyst

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<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

<div>BlackRock launching a SOL ETF in first wave would be 'messed up' — Analyst</div>

BlackRock hasn’t filed for a Solana ETF, but ETF analyst James Seyffart says they shouldn’t be allowed to jump in at the last minute after other issuers’ hard work.

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