Jeremy Hunt promises ‘permanent cuts in taxation’ before pre-election budget

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1 year ago

March 5, 2024

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Jeremy Hunt has promised to help families with “permanent cuts” in tax on the eve of the budget on Wednesday.

The chancellor, who is expected to announce a 2p reduction to national insurance (NI) in what could be the last major fiscal event before the next election, said “lower tax means higher growth”.

While he did not confirm what taxes he plans to slash, Sky News understands that a cut to NI is on the cards and the 5p freeze on fuel duty will be extended.

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What 2p cut to national insurance means for your pay

Mr Hunt is also said to be considering:

• A new levy on vaping products

• Help for first time buyers, such as 99% mortgages

• A tax on air passenger duty for business class travel

• Cutting back plans to increase departmental spending to save money

Labour said that whatever is announced, it won’t be enough to “undo the economic vandalism of the last decade” – and the tax burden is still set to rise to a record high.

With Sir Keir Starmer’s party ahead by around 20 points in the polls, some Tory MPs want Mr Hunt to go further and cut personal income tax with an election approaching.

This is seen as a more headline-grabbing measure that benefits more voters, including pensioners.

But the chancellor is said to have decided against this after forecasts from the UK’s fiscal watchdog, the Office for Budget Responsibility (OBR), gave him less fiscal headroom than hoped.

‘Conservatives know lower tax means higher growth’

A 2p cut to income tax would cost around £14bn, whereas the 2p cut to NI will cost around £10bn.

Combined with the 2p cut to NI announced in November, the move will save 27 million workers £900 on average.

In comments released by the Treasury on Tuesday night, Mr Hunt said: “Of course, interest rates remain high as we bring down inflation.

“But because of the progress we’ve made… delivering on the prime minister’s economic priorities, we can now help families with permanent cuts in taxation.

“We do this not just to give help where it is needed in challenging times. But because Conservatives know lower tax means higher growth. And higher growth means more opportunity and more prosperity.”

Mr Hunt added that growth “cannot come from unlimited migration”, but “can only come by building a high-wage, high-skill economy”.

He also took aim at Labour, claiming a government under Sir Keir Starmer would “destroy jobs” and “risk family finances with new spending that pushes up tax”.

Politics latest:
Will another NI cut appeal to voters?

Tories ‘overseeing 14 years of economic failure’ – Labour

But shadow chancellor Rachel Reeves said Labour is “now the party of economic responsibility” as she accused the Tories of overseeing “14 years of economic failure” with the overall tax burden still rising.

She said: “The Conservatives promised to fix the nation’s roof, but instead they have smashed the windows, kicked the door in and are now burning the house down.

“Taxes are rising, prices are still going up in the shops and we have been hit by recession. Nothing the chancellor says or does can undo the economic vandalism of the Conservatives over the past decade.

“The country needs change, not another failed budget or the risk of five more years of Conservative chaos”.

How will Hunt pay for Budget 2024 giveaway?

Experts have warned that a 2p national insurance cut would not be enough to stop the tax burden rising because of previously announced freezes to personal tax thresholds.

There are also questions about whether Mr Hunt can afford to pay for the measure.

He has said he will not pay for tax cuts with borrowing, meaning a combination of spending cuts and tax rises elsewhere will be necessary.

Revenue-raisers Mr Hunt is said to be considering include reducing the scope of non-dom tax relief, which Labour has said it would scrap to fund services such as the NHS.

A new levy on vaping is on the cards, as is a tax on air passenger duty for business class travel and a tax crackdown on those who rent out second homes for holiday lets.

The chancellor is also considering cutting back plans to increase departmental spending by just 0.75% a year, instead of 2%, to raise around £5bn.

While this would create more scope for tax cuts, it would likely prove controversial given the pressure already on public services, with a spate of local councils going bankrupt in recent months.

Lib Dem leader Sir Ed Davey – who will be targeting Mr Hunt’s “Blue Wall” seat at the election – described the Conservatives as “the great tax swindlers” and said they should be prioritising the NHS.

He said: “Rishi Sunak has led the economy into a recession and forced families to pick up the tab. They have no shame.

“The Conservatives must put the NHS at the heart of the budget. It is no wonder the economy isn’t growing when millions of people are stuck on NHS waiting lists, unable to work.”

Watch Sky News’s coverage of the Budget live from 11am on Wednesday.

Politics

Government to decide on ‘postcode pricing’ plan for electricity bills by summer

Published

2 hours ago

April 24, 2025

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Government to decide on 'postcode pricing' plan for electricity bills by summer

The government will decide by the summer on controversial proposals to charge some households more for their electricity than others, Sky News understands.

The energy secretary Ed Miliband has been mulling over plans for “zonal pricing”, which would see different regions of the country pay different rates, based on supply and demand levels in the local area.

The idea is to attract industry to build in low-cost areas, and incentivise new electricity generation in regions where people need it most.

Supporters say zonal pricing could lower everyone’s bills to some extent by making the system more efficient – but some would fall more than others.

Critics, including renewable energy generators, warn the plans would create a postcode lottery for bills and put investors off certain areas, risking jobs.

It is not yet clear how the changes would be passed on to household bills. But it could see people in the south of England pay much more than those in parts of Scotland – though not, the government hopes, more than they do now.

Mr Miliband is expected to make his recommendation to fellow government ministers in the coming weeks, before the government decides either way by the middle of this year.

They are keen to resolve the issue – which was also considered under the last Tory government – before businesses start bidding for fresh renewable power contracts in summer.

UK still ‘vulnerable and exposed’

It comes as the UK government hosts a summit on energy security in London today, lobbying other countries to leave fossil fuels behind.

Mr Miliband said the government’s push to generate more clean power at home was as much about energy security as it was about fighting climate change.

“As long as energy can be weaponised against us, our countries and our citizens are vulnerable and exposed,” he said in a speech.

But he also said North Sea oil and gas would “continue to play an important role” in the UK energy mix, fuelling campaigners’ fears it may yet allow the Rosebank oil and gas field to go ahead, despite hurdles in court and the government’s own concerns.

Mr Miliband quoted a message from King Charles that said the “transition to more sustainable energy sources can itself lead to more resilient and secure energy systems”.

Trump’s representative invokes God

US President Donald Trump’s junior representative at the summit, acting assistant secretary Tommy Joyce, quoted the Bible in his address.

He urged delegates to “remember God’s golden rule, and that is that we should love our neighbour as ourselves”.

That means helping them out of poverty through access to affordable energy, according to Mr Joyce.

About 750 million people in the world still have no access to electricity, and team Trump says American oil, gas and coal are the answer.

However, a report by RMI suggests that new wind and solar are the cheapest option for new electricity in 82% of the world – though for some countries are hard to finance upfront.

Mr Joyce also continued Trump’s ongoing attacks on climate policies, criticising what he described as “so-called renewables” and the “net zero agenda”.

‘Most delicate debate’

Before the summit, a senior UN official said the idea that the switch to clean power compromised energy security and affordability “is just not true”.

“We really need to dispel this notion,” said the source, speaking on the condition of anonymity. “If you are dependent on volatile and expensive fossil fuel imports, fossil fuels equal energy insecurity.”

A senior official from Brazil, which in November is hosting the COP30 UN climate summit, also this week said there had been a “rather successful” attempt by some to frame energy security and the switch to clean energy as a question of “either/or”.

“We don’t believe it is.”

He called it “one of the most delicate debates” of the moment.

Politics

Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks

Published

4 hours ago

April 24, 2025

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Upbit and Bithumb suspend Synthetix token deposits, citing sUSD risks

South Korean exchanges Upbit and Bithumb have suspended deposits for Synthetix (SNX) tokens after it was flagged by the Digital Asset Exchange Alliance (DAXA) for potential risks.

DAXA, the self-regulatory organization establishing industry standards for South Korean exchanges, designated SNX as a cautionary item.

Assets receiving this designation typically undergo rigorous evaluations to determine whether trading can continue or if delisting is necessary.

Exchanges may take action, such as adding a warning tag to the asset and urging investors to take caution when engaging with it. Trading platforms can also perform additional measures, like blocking deposits or suspending trading support temporarily.

Upbit and Bithumb block SNX deposits

In response to the designation, the biggest exchanges in South Korea said they are blocking deposits for SNX tokens on their platforms.

Upbit announced that it had added a trading caution ticker and suspended token deposits. The exchange said it had been monitoring the developments related to the Synthetix USD (sUSD) depegging. It added that this event may damage investors through potential volatility, as SNX is used as collateral for sUSD.

The exchange added that it had determined a lack of use cases for the asset, which may cause investors to suffer losses. Upbit said it would conduct a comprehensive review to decide whether to delist the asset or resume normal operations for the token.

Bithumb has also blocked deposits for SNX and added a cautionary tag for the token. However, the exchange said this decision could be overturned depending on internal circumstances. If the reason for the designation is resolved, Bithumb said it would lift the restrictions.

Korbit and Coinone also published investor alerts to caution traders. The two exchanges added cautionary tags to SNX tokens to alert investors who may want to trade the token.

Cointelegraph reached out to Synthetix for comment but did not get a response by publication.

sUSD struggles to recover dollar peg

On April 10, the sUSD stablecoin dropped to a five-year low of $0.83 after struggling to maintain its dollar peg in the first quarter of 2025. With the stablecoin being collateralized by the project’s native asset, Cork Protocol co-founder Rob Schmitt compared the token to Terra USD (UST), which collapsed in 2022. However, Schmitt said that sUSD has a “more manageable” debt system.

On April 18, the stablecoin dipped further to $0.68, with SNX falling by 26% in a 30-day period. A Synthetix spokesperson told Cointelegraph that their team has short, medium and long-term plans to mitigate the risks.

On April 21, Synthetix founder Kain Warwick threatened SNX stakers with “the stick” if they didn’t take up a newly launched staking mechanism to fix the sUSD depeg. The executive said they may put extra pressure on stakers if they don’t see enough momentum on the newly implemented mechanism.

Since the warning, sUSD prices increased by 27%. On April 24, the stablecoin briefly reached $0.87. However, the token has still failed to recover its dollar peg.

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Shaquille O’Neal reaches settlement in FTX lawsuit, terms remain secret

Published

5 hours ago

April 24, 2025

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Shaquille O’Neal reaches settlement in FTX lawsuit, terms remain secret

Shaquille O’Neal has settled with investors who claim losses from the collapse of cryptocurrency exchange FTX, according to an April 23 filing in the US District Court for the Southern District of Florida.

The settlement amount remains confidential, with terms expected to be disclosed after investors formally request preliminary court approval, according to court documents.

O’Neal and other celebrities and athletes were accused of promoting FTX and allegedly contributing to investor losses by endorsing the now-bankrupt exchange.

The case is part of a broader multidistrict litigation effort, where investors are seeking up to $21 billion in damages from FTX insiders, advisers and promoters, far exceeding the $9.2 billion available through bankruptcy proceedings.

Other celebrities embroiled in similar legal troubles for their roles in FTX include NFL quarterback Tom Brady, supermodel Gisele Bündchen, billionaire investor Kevin O’Leary, former NBA player Udonis Haslem, David Ortiz, Naomi Osaka and others.

Notably, FTX investors faced challenges in serving O’Neal with legal papers during the early stages of the lawsuit over his promotion of the collapsed exchange.

Lawyers representing the victims described O’Neal as “running from the lawsuit,” after multiple failed attempts to deliver court documents. Legal teams reportedly spent months trying to reach the NBA legend, resorting to creative methods, including attempting service during NBA games and at his residences.

O’Neal finalizes $11 million settlement over Astrals NFT project

The settlement with FTX investors comes as O’Neal recently agreed to pay $11 million to resolve a class-action lawsuit tied to his involvement in the Solana-based Astrals NFT project.

In May 2023, O’Neal was served with the Astral NFT lawsuit during an NBA game at Miami’s Kaseya Center, formerly the FTX Arena. The class-action lawsuit involved his promotion of the Astrals NFT project, alleging that the NFTs promoted by O’Neal were unregistered securities.

In August 2024, a Miami federal court judge ruled that O’Neal would need to defend some of the claims brought against him in the case.

Astrals is a Solana-based project featuring 10,000 NFTs, a metaverse called Astralworld and a decentralized autonomous organization (DAO) with a governance token called Galaxy.

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