Jeremy Hunt to promise further tax cuts as pre-general election battle hots up
Jeremy Hunt will promise further tax cuts if the Tories win the next general election and will accuse the Labour Party of not being honest about how it will fund its spending pledges.
The chancellor will give a speech in London on Friday in which he will accuse his shadow, Rachel Reeves, of resorting to “playground politics” with her criticism of the high levels of taxation on UK households.
Mr Hunt will also reiterate his ambition to eradicate the national insurance tax – which the Tories have already slashed twice in a bid to move the polls – where they currently lag 20 points behind Labour.
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Labour has attacked the policy as an unfunded £46bn pledge and likened it to the policies that saw Liz Truss resign from office after just 44 days as prime minister.
The chancellor was previously forced to make clear that his desire to abolish the “unfair” national insurance tax would not happen “any time soon”.
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The chancellor described national insurance as a “tax on work” and said he believed it was “unfair that we tax work twice” when other forms of income are only taxed once.
The overall tax burden is expected to increase over the next five years to around 37% of gross domestic product – close to a post-Second World War high – but Mr Hunt will argue the furlough scheme brought in during the pandemic and the help the government gave households for heating both needed to be paid for.
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Last week: National Insurance to be axed ‘when it’s affordable’
“Labour like to criticise tax rises this parliament thinking people don’t know why they have gone up – the furlough scheme, the energy price guarantee and billions of pounds of cost-of-living support, policies Labour themselves supported,” he will say.
“Which is why it is playground politics to use those tax rises to distract debate from the biggest divide in British politics – which is what happens next.
“Conservatives recognise that whilst those tax rises may have been necessary, they should not be permanent. Labour do not.”
James Murray, Labour’s shadow financial secretary to the Treasury, said: “There is nothing Jeremy Hunt can say or do to hide that fact that working people are worse off after 14 years of economic failure under the Conservatives.”
Sir Keir Starmer has apologised to his health secretary after allies of the prime minister accused him of plotting a coup.
Sky News understands Sir Keir spoke briefly to Wes Streeting on Wednesday evening, though did not share details about the briefing campaign.
Politics Hub: Follow latest updates
Speaking at Prime Minister’s Questions earlier in the day, he denied authorising the attacks on Mr Streeting, who was accused of planning a leadership challenge after the budget later this month.
Mr Streeting said the allegations are “not true”, telling Sky News’ Mornings With Ridge And Frost that whoever was behind the briefings had been “watching too much Celebrity Traitors”.
He insisted he was loyal to the prime minister, who has been under mounting pressure as he and the Labour Party flounder behind Reform in the polls.
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Health secretary insists he’s ‘a faithful’
Downing Street went on the attack on Tuesday night to ward off any potential challenge to Sir Keir after the budget, which could see the government announce manifesto-breaking tax rises.
Sir Keir and Rachel Reeves have refused to rule out raising income tax, national insurance, or VAT.
One senior figure told Sky News political editor Beth Rigby while a post-budget challenge is unlikely, it could come if next May’s elections – including in London and Wales – go badly for Labour.
Labour face a challenge from Reform on the right and parties like the Greens and Plaid Cymru on the left.
Read more: How No 10 plunged itself into crisis
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Starmer backs Streeting at PMQs
Also under pressure is the prime minister’s chief of staff, Morgan McSweeney, after Mr Streeting hit out at a “toxic culture” inside Number 10.
Sir Keir failed to say he had “full confidence” in him at PMQs in response to questions from Kemi Badenoch, but the prime minister’s political spokesperson later insisted to journalists that he does retain his backing.
Sky News understands Mr McSweeney was not discussed when Sir Keir and Mr Streeting spoke last night.
Labour chairwoman Anna Turley said the prime minister will investigate the source of the claims against the health secretary, telling ITV: “This is not what he wants to see and he’s determined to drive it out.”
US President Donald Trump has signed off on a funding bill passed by the House of Representatives on Wednesday, officially bringing an end to the record 43-day government shutdown.
The funding bill went through the Senate on Monday and passed the House of Representatives on Wednesday, with Trump signing the bill just hours later to get the government back up and running.
Healthcare funding was one of the sticking points that halted the bill, with Democrats pushing to increase support, while Republicans sought to address the issue after the bill had passed.
After signing the bill, President Trump indicated that he may be willing to work with the Democrats to iron out these issues.
“I’m always willing to work with anyone, including the other party,” Trump said, adding:
“We’ll work on something having to do with health care. We can do a lot better.”
The latest shutdown, which has become an almost annual affair, was the longest on record at 43 days.
The bill itself enables funding to support government operations until Jan. 30, and gives more time for Democrats and Republicans to strike a deal for broader funding plans across 2026.
What does it mean for crypto
The reopening of the government will see staff return to crypto-related agencies, such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Crypto ETF issuers have been waiting for the SEC to approve a host of potential spot-crypto exchange-traded fund applications. Meanwhile, the CFTC has already pushed forward with plans for a Nov. 19 confirmation hearing of Mike Selig, Trump’s top pick to head the agency.
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The Treasury should now also be positioned to sift through public feedback on the stablecoin-focused GENIUS Act, which was compiled between early October and the start of November.
Despite this, the crypto markets have responded flatly to the end of the government shutdown, with Bitcoin price action being minimal.
In past instances, the resumption of the US government has led to major rallies.
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The longest US government shutdown on record is finally set to conclude, with the House of Representatives voting through a contested funding bill on Wednesday.
The bill is now headed to US President Donald Trump, who is expected to sign it Wednesday night.
Both Democratic and Republican lawmakers staunchly debated the bill in the House of Representatives, ahead of a final vote that ultimately ended in favor of the bill, with 222 votes in favor and 209 against.
According to a statement obtained by Fox News Digital, US President Donald Trump has already indicated that he will sign the bill, which would officially end the shutdown. The BBC reports that Trump plans to sign the bill at 9:45 pm local time during a private dinner with business leaders.
“The Administration urges every Member of Congress to support this responsible, good faith product to finally put an end to the longest shutdown in history,” the statement read.
Related: SEC chair pledges no ‘lax enforcement’ on crypto under market structure
The funding bill would cover most of the government’s expenses through to the end of January next year.
The bill saw neither side of the political aisle willing to budge. Democrats were pushing to halt the bill, demanding more funding for healthcare and the cost-of-living crisis. Republicans were not willing to address these concerns in the bill, instead calling for the government to reopen and promising to address these issues afterward.
The government shutdown has halted the progress of crypto bills and also left a significant number of spot-crypto exchange-traded fund applications sitting on the Securities and Exchange Commission’s desk.
Meanwhile, other bills — such as the comprehensive market structure bill — that have made some progress even during the shutdown, will now be able to gain more traction.
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