Jeremy Hunt: Budget ‘absolutely not’ last throw of the dice before general election
Jeremy Hunt has told Sky News his spring budget is “absolutely not” the last throw of the dice before a general election – as he refused to rule out another fiscal event before the country goes to the polls.
Speaking to political editor Beth Rigby, the chancellor said the “working assumption” in Downing Street is that the election will be held in the autumn.
Prime Minister Rishi Sunak has previously suggested this will be the case, but there was speculation he could call the vote earlier if major tax cuts in the spring budget were announced.
While Mr Hunt today confirmed a further 2p reduction to national insurance (NI), there was no “rabbit out of the hat” moment some Tory MPs were hoping for, such as a cut to personal income tax.
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Asked if the budget was the “last throw of the dice” before an election, Mr Hunt said: “Absolutely not. We have produced today a budget that shows that we are turning a corner.”
Asked if Downing Street is working towards an autumn election, and potentially another fiscal event, he said: “That’s the working assumption. But in the end, it’s a choice the prime minister makes.”
As well as confirming a 2p cut to NI, Mr Hunt today announced the current system for non-dom tax status will be abolished, the freeze on fuel duty will be extended and a new duty on vaping products.
Some Tory MPs wanted him to go further and cut income tax or unfreeze tax thresholds to give them a fighting chance at the next election – with Labour currently around 20 points ahead in the polls.
The prime minister himself promised to cut income tax by 1p by the end of this parliament back when he was chancellor in 2022.
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Mr Hunt told Sky News it was “important all politicians keep their promises”.
However, asked whether the income tax promise still holds, he pointed to his decision to reduce NI for workers instead, saying “that is what’s going to help to grow the economy”.
He added: “A lot of things have changed since 2022. I think the premise of what the prime minister was saying is if you stick to the plan, I will bring taxes down. And I think he is more than delivering that.”
The 2p cut to national insurance announced today comes on top of a 2p cut announced in the autumn statement and means workers will save on average £900 a year.
However, the overall tax burden is still set to rise to the highest level on record by the end of the decade because of the six-year freeze on personal tax thresholds dragging people into high tax brackets.
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The independent Resolution Foundation thinktank said the biggest net beneficiaries of the national insurance cut, combined with threshold freezes, are those earning £50,000, while those earning £19,000 or less will actually be worse off.
Labour accused Mr Hunt of using the budget to “give with one hand and take even more with the other”, calling it the “last desperate act of a party that has failed”.
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Treasury minister confirms Tories want to ‘eliminate’ national insurance entirely
Mr Hunt signalled in his budget that the Conservatives ultimately want to axe national insurance.
Economic Secretary to the Treasury, Bim Afolami, confirmed later to Sky News that the government’s long-term aim is to eliminate it.
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Speaking on the Politics Hub with Sophy Ridge, he said it won’t happen in the next “few months”, but the long-term aim is to “eliminate that double taxation of work because it’s unfair”.
He added: “And this isn’t just some ideological thing – it means it can help grow our economy because we’ll increase the number of people who are working in our economy, increase the number of hours that they work.
“And the OBR, the Bank of England, all the independent forecasters recognise this will increase the growth rate of our economy.”
The dates for Donald Trump’s state visit to the UK have been announced, with the US president due to be welcomed by the King from 17 to 19 September.
Buckingham Palace also confirmed that President Trump and first lady Melania will be hosted by the King and Queen at Windsor Castle.
It was expected that the three-day state visit would take place in September after Mr Trump let slip earlier in April that he believed that was when his second “fest” was being planned for.
Windsor was also anticipated to be the location after the US president told reporters in the Oval Office that the letter from the King said Windsor would be the setting. Refurbishment works at Buckingham Palace also meant that Windsor was used last week for French President Emmanuel Macron’s visit.
This will be Mr Trump’s second state visit to the UK, an unprecedented gesture towards an American leader, having previously been invited to Buckingham Palace in 2019.
Donald Trump and Melania Trump posing with Charles and Camilla in 2019. Pic: Reuters
He has also been to Windsor Castle before, in 2018, but despite the considerable military pageantry of the day, and some confusion around inspecting the guard, it was simply for tea with Queen Elizabeth II.
Further details of what will happen during the three-day visit in September will be announced in due course.
On Friday, Sky News revealed it is now unlikely that the US president will address parliament, usually an honour given to visiting heads of state as part of their visit. Some MPs had raised significant concerns about him being given the privilege.
But the House of Commons will not be sitting at the time of Mr Trump’s visit as it will rise for party conference season on the 16 September, meaning the president will not be able to speak in parliament as President Macron did during his state visit this week. However, the House of Lords will be sitting.
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In February this year, Prime Minister Sir Keir Starmer presented the US president with the letter from the King inviting him to visit during a meeting at the White House.
After reading it, Mr Trump said it was a “great, great honour”, adding “and that says at Windsor – that’s really something”.
In February, Sir Keir Starmer revealed a letter from the King inviting Donald Trump to the UK. Pic: Reuters
In the letter, the King suggested they might meet at Balmoral or Dumfries House in Scotland first before the much grander state visit. However, it is understood that, although all options were explored, complexities in both the King and Mr Trump’s diaries meant it wasn’t possible.
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This week, it emerged that Police Scotland are planning for a summer visit from the US president, which is likely to see him visit one or both of his golf clubs in Aberdeenshire and Ayrshire, and require substantial policing resources and probably units to be called in from elsewhere in the UK.
Precedent for second-term US presidents, who have already made a state visit, is usually tea or lunch with the monarch at Windsor Castle, as was the case for George W Bush and Barack Obama.
A small plane has crashed at Southend Airport in Essex.
Essex Police said it was at the scene of a “serious incident”.
Images posted online showed huge flames and a large cloud of black smoke, with one witness saying they saw a “fireball”.
A police statement said: “We were alerted shortly before 4pm to reports of a collision involving one 12-metre plane.
“We are working with all emergency services at the scene now and that work will be ongoing for several hours.
“We would please ask the public to avoid this area where possible while this work continues.”
A huge fireball near the airport. Pic: Ben G
It has been reported that the plane involved in the incident is a Beech B200 Super King Air.
According to flight-tracking service Flightradar, it took off at 3.48pm and was bound for Lelystad, a city in the Netherlands.
One man, who was at Southend Airport with his family around the time of the incident, said the aircraft “crashed headfirst into the ground”.
John Johnson said: “About three or four seconds after taking off, it started to bank heavily to its left, and then within a few seconds of that happening, it more or less inverted and crashed.
“There was a big fireball. Obviously, everybody was in shock in terms of witnessing it. All the kids saw it and the families saw it.”
Mr Johnson added that he phoned 999 to report the crash.
Southend Airport said the incident involved “a general aviation aircraft”.
Four flights scheduled to take off from Southend this afternoon were cancelled, according to its website.
Flightradar data shows two planes that had been due to land at Southend were diverted to nearby airports London Gatwick and London Stansted.
Plumes of black smoke. Pic: UKNIP
Essex County Fire and Rescue Service said four crews, along with off-road vehicles, have attended the scene.
Four ambulances and four hazardous area response team vehicles are also at the airport, as well as an air ambulance, the East of England Ambulance Service said.
Its statement described the incident as “still developing”.
Fire engines at the airport
David Burton-Sampson, the MP for Southend West and Leigh, posted on social media: “I am aware of an incident at Southend Airport. Please keep away and allow the emergency services to do their work.
“My thoughts are with everyone involved.”
Local councillor Matt Dent said on X: “At present all I know is that a small plane has crashed at the airport. My thoughts are with all those involved, and with the emergency services currently responding to the incident.”
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UK
Heidi Alexander says ‘fairness’ will be government’s ‘guiding principle’ when it comes to taxes at next budget
Another hint that tax rises are coming in this autumn’s budget has been given by a senior minister.
Speaking to Sunday Morning with Trevor Phillips, Transport Secretary Heidi Alexander was asked if Sir Keir Starmer and the rest of the cabinet had discussed hiking taxes in the wake of the government’s failed welfare reforms, which were shot down by their own MPs.
Trevor Phillips asked specifically if tax rises were discussed among the cabinet last week – including on an away day on Friday.
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Tax increases were not discussed “directly”, Ms Alexander said, but ministers were “cognisant” of the challenges facing them.
Asked what this means, Ms Alexander added: “I think your viewers would be surprised if we didn’t recognise that at the budget, the chancellor will need to look at the OBR forecast that is given to her and will make decisions in line with the fiscal rules that she has set out.
“We made a commitment in our manifesto not to be putting up taxes on people on modest incomes, working people. We have stuck to that.”
Ms Alexander said she wouldn’t comment directly on taxes and the budget at this point, adding: “So, the chancellor will set her budget. I’m not going to sit in a TV studio today and speculate on what the contents of that budget might be.
“When it comes to taxation, fairness is going to be our guiding principle.”
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Afterwards, shadow home secretary Chris Philp told Phillips: “That sounds to me like a barely disguised reference to tax rises coming in the autumn.”
He then went on to repeat the Conservative attack lines that Labour are “crashing the economy”.
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Chris Philp also criticsed the government’s migration deal with France
Mr Philp then attacked the prime minister as “weak” for being unable to get his welfare reforms through the Commons.
Discussions about potential tax rises have come to the fore after the government had to gut its welfare reforms.
Sir Keir had wanted to change Personal Independence Payments (PIP), but a large Labour rebellion forced him to axe the changes.
With the savings from these proposed changes – around £5bn – already worked into the government’s sums, they will now need to find the money somewhere else.
The general belief is that this will take the form of tax rises, rather than spending cuts, with more money needed for military spending commitments, as well as other areas of priority for the government, such as the NHS.
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