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Russia is trying to create “mayhem” on the UK’s streets, the head of the MI5 has warned.

In a wide-ranging speech, the organisation’s director general Ken McCallum said Britain faces an increased threat from “Putin’s henchmen” and “plot after plot” from Iran.

He also revealed a growing number of children are being investigated for terrorism in the UK.

It comes as Islamic terrorism is also re-emerging, with Mr McCallum saying “the trend that concerns me most [is] the worsening threat from Al Qaeda and in particular from Islamic State“.

“After a few years of being pinned well back, they’ve resumed efforts to export terrorism,” he added.

Over the last month, more than a third of MI5‘s top priority investigations have had links to organised overseas terrorist groups.

Mr McCallum revealed that, overall, MI5 and the police have disrupted 43 “late-stage” terrorist plots since March 2017.

He said some plotters planned mass murder through the use of firearms and explosives.

EMBARGOED TO 1300 TUESDAY OCTOBER 8 

Ken McCallum, Director General of MI5, delivers the annual Director General's speech at Thames House in central London. Picture date: Tuesday October 8, 2024. PA Photo. See PA story POLITICS MI5. Photo credit should read: Yui Mok/PA Wire
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Ken McCallum, director general of MI5, spoke of the threats facing the UK. Pic: PA

The split of MI5’s counter-terrorism work is roughly 75% Islamist and 25% extreme right-wing, although Mr McCallum described a “dizzying range of beliefs and ideologies” as people access a range of online hatred, conspiracy theories and disinformation.

In his first speech of its kind in two years, Mr McCallum said his team had “a hell of a job on its hands” and painted a picture of a multifaceted threat facing the UK, with resurgent terrorist organisations such as Al Qaeda and IS, in addition to state terrorism from countries such as Iran and Russia.

Ukraine war latest: Putin’s troops reach outskirts of key city

Mr McCallum said state threat work has risen 48% in a year, revealing that since January 2022, MI5 and the police have responded to 20 potentially lethal Iran-backed plots.

He said the threat from Iran has increased “at an unprecedented scale”, warning that it – along with Russia – were “using proxies” such as organised criminals to “do their dirty work”.

More than 750 Russian diplomats, many of them spies, have been expelled from Europe since Russian President Vladimir Putin invaded Ukraine.

While this has dented Russian intelligence services, Mr McCallum said they are on a “sustained mission to generate mayhem on British and European streets” with “arson, sabotage and more”.

He had a message to criminals considering taking on work for hostile states, saying: “If you take money from Iran, Russia or any other state to carry out illegal acts in the UK, you will bring the full weight of the national security apparatus down on you. It’s a choice you’ll regret.”

UK faces ‘most complex threat environment we’ve ever seen’

Today’s speech from MI5’s boss doesn’t just lay out the range of threats to the UK, it makes clear how dramatically the job of protecting Britain has changed in recent years.

Ken McCallum talks of an early career “crammed full of terrorist threats” but says, while that hasn’t gone away, they now sit alongside “state-backed assassination and sabotage plots,” and on top of this there is a major European land war that is pulling on resources.

It all adds up to “the most complex and interconnected threat environment we’ve ever seen” and without saying it, one could take from this speech that the director general wants all the resources he can get from this new government’s spending review.

That said, the current terror level threat remains at “substantial” – two points below its highest level. Events in the Middle East have spilled over into hate crimes, but not yet a major act of terrorism – no significant plots are detected on this front.

But another element, not to be underestimated, is the far-right, which filled the gaps in MI5’s work when Islamic terrorism was receding. It remains a big factor, 25% of the threat, particularly when it comes to young people being radicalised.

I asked Mr McCallum about this in an off-camera briefing. Whereas Islamic terrorism takes its inspiration from extremist preachers or propaganda from terrorist groups such as Islamic State, where are these far-right extremists drawing their inspiration from?

The MI5 boss answered: “We don’t tend to see prominent radicalisers [among this group]”. He described a “pick-n-mix ideology” and a “crowd-sourced model” where people pull on hatred and misinformation from a multitude of mostly online sources.

That one in eight of the people his organisation investigates are under 18 years was, he said, “not something I expected to see”.

What’s clear is that it is hard to overstate how significant the online world is in enabling and inspiring today’s terrorists, and it seems to be getting to them at a younger age.

Mr McCallum says that in all forms of extremism “lone individuals indoctrinated online continue to make up most of the threats”.

But he added: “Sorting the real plotters from the armchair extremists is an exacting task.”

Mr McCallum also offered counter-sabotage support to businesses through MI5’s protective security arm, the National Protective Security Authority (NPSA).

But the statistic that 13% of people under investigation were children was one of the most unexpected developments – it is a three-fold increase in three years.

Mr McCallum said MI5 is seeing “far too many cases where very young people are being drawn into poisonous online extremism”.

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He added: “Extreme right-wing terrorism in particular skews heavily towards young people, driven by propaganda that shows a canny understanding of online culture.”

Speaking later in an off-camera briefing, Mr McCallum said the fact that one in eight of the people his organisation investigates are under-18 was “not something I expected to see”.

As yet, the conflict in the Middle East has had little impact on UK terrorism.

Mr McCallum referenced last October’s knife attack in Hartlepool but said: “We are powerfully alive to the risk that events in the Middle East trigger terrorist action in the UK… [but] thus far, while our police colleagues have responded to rising public order, hate crime and community safety challenges, we haven’t – yet – seen this translate at scale into terrorist violence.”

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Boy dies after ‘getting into difficulty’ in lake in southeast London

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Boy dies after 'getting into difficulty' in lake in southeast London

A 15-year-old boy has died after “getting into difficulty” in a lake in southeast London, police say.

Officers and paramedics were called shortly after 3pm on Friday to Beckenham Place Park in Lewisham.

The Metropolitan Police said a boy “was recovered from the lake” at around 10.42pm the same day.

“He was taken to hospital where he was sadly pronounced dead. His death is being treated as unexpected but not believed to be suspicious,” according to the force.

The boy’s family has been told and are being supported by specialist officers.

The force originally said the child was 16 years old, but has since confirmed his age as 15.

In the earlier statement, officers said emergency services carried out a search and the park was evacuated.

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google street view inside Beckenham Place park, Lewisham where a 16 y/o boy is missing after getting into difficulty in a lake
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Emergency teams were called to Beckenham Place Park on Friday afternoon

Beckenham Place Park, which borders the London borough of Bromley, covers around 240 acres, according to the park’s website.

The lake is described as 285 metres long, reaching depths of up to 3.5 metres.

It is designed as a swimming lake for open-water swimming and paddle boarding.

A London Ambulance Service spokesperson said on Friday: “We were called at 3.02pm this afternoon to reports of a person in the water.

“We sent resources to the scene, including an ambulance crew, an incident response officer and members of our hazardous area response team.”

Emergency teams have not explained how the boy entered the water, or whether he was accompanied by others.

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Man charged with murder of 16-year-old boy in Huddersfield

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Man charged with murder of 16-year-old boy in Huddersfield

A man has been charged with the murder of a 16-year-old boy in Huddersfield.

Alfie Franco, 20, will appear before Leeds Magistrates’ Court on Saturday, West Yorkshire Police said.

The suspect, from Kirkburton in West Yorkshire, is also charged with possessing a knife in a public place.

Police were called to a stabbing in Ramsden Street, Huddersfield, at about 2.45pm on Thursday.

The victim suffered a single knife wound to the neck and died later in hospital.

Police said “multiple” enquiries into the stabbing are still ongoing.

A male and a female were arrested on suspicion of assisting an offender, and have been released on bail.

Anyone with information about the incident or footage that could be helpful is urged to contact West Yorkshire Police’s Homicide and Major Enquiry Team.

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‘We will see closures’: The industries hit hardest by national insurance hike

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'We will see closures': The industries hit hardest by national insurance hike

The cost of having staff is going up this Sunday as the increase in employers’ national insurance kicks in.

Chancellor Rachel Reeves announced in the October budget employers will have to pay a 15% rate of national insurance contributions (NIC) on their employees from 6 April – up from 13.8%.

She also lowered the threshold at which employers pay NIC from £9,100 a year to £5,000 a year, meaning they start paying at an earlier point on staff salaries.

This is on top of the national minimum wage rising, the business relief rate for hospitality, retail and leisure reducing from 75% to 40% and the rising cost of ingredients and services.

Sky News spoke to people working in some of the industries that will be hardest hit by the rise in NIC: Nurseries, hospitality, retail, small businesses and care.

NURSERIES

Nearly all (96% of 728) nurseries surveyed by the National Day Nurseries Association (NDNA) said they will have no choice but to put up fees because of the NIC rise, leaving parents to pick up the shortfall.

More on Cost Of Living

The NDNA has warned nurseries could close due to the rise, with 14% saying their business is at risk, 69% reducing spending on resources and 39% considering offering fewer places with government-funded hours as 92% said they do not cover their costs.

Sarah has two children, with her youngest starting later this month, but they were just informed fees will now be £92 a day – compared with £59 at the same nursery when her eldest started five years ago.

“I’m not sure how we will afford this. Our salaries haven’t increased by 50% during this time,” she said.

“We’re stuck as there aren’t enough nursery spaces in our area, so we will have to struggle.”

Karen Richards, director of the Wolds Childcare group in Nottinghamshire, has started a petition to get the government to exempt private nurseries – the majority of providers – from the NIC changes as she said it is unfair nurseries in schools do not have to pay the NIC.

She told Sky News she will have to find about £183,000 next year to cover the increase across her five nurseries and reducing staff numbers is “not off the table” but it is more likely they will reduce the number of children they have.

Joeli Brearley, founder of Pregnant Then Screwed, said parents are yet again having to pay for the price for the government's actions. Pic: Pregnant Then Screwed
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Joeli Brearley, founder of Pregnant Then Screwed, said parents are yet again having to pay the price for the government’s actions. Pic: Pregnant Then Screwed

Joeli Brearley, founder of the Pregnant Then Screwed campaign group, told Sky News: “Parents are already drowning in childcare costs, and now, thanks to the national insurance hike, nurseries are passing even more fees on to families who simply can’t afford it.

“It’s the same story every time – parents pay the price while the government looks the other way. How exactly are we meant to ‘boost the economy’ when we can’t even afford to go to work?”

Purnima Tanuku, executive chair of the NDNA, said staffing costs make up about 75% of nurseries’ costs and they will have to find £2,600 more per employee to pay for the NIC rise – £47,000 for an average nursery.

“The government says it wants to offer ‘cheaper childcare’ for parents on the one hand but then with the other expects nurseries to absorb the costs of National Insurance Contributions themselves,” she told Sky News.

“High-quality early education and care gives children the best start in life and enables parents to work. The government must invest in this vital infrastructure to make sure nurseries can continue to deliver this social and economic good.”

HOSPITALITY

The hospitality industry has warned of closures, price rises, lack of growth and shorter opening hours.

Dan Brod, co-owner of The Beckford Group, a small southwest England restaurant and country pub/hotel group, said the economic situation now is “much worse” than during COVID.

The group has put plans for two more projects on hold and Mr Brod said the only option is to put up prices, but with the rising supplier costs, wages, business rates and NIC hike they will “stay still” financially.

Read more:
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Dan Brod, co-owner of The Beckford Group, said the government does not value hospitality as an industry. Pic: The Beckford Group
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Dan Brod, co-owner of The Beckford Group, said the government does not value hospitality as an industry. Pic: The Beckford Group

He told Sky News: “What we’re nervous about is we’re still in the cost of living crisis and even though our places are in very wealthy areas of the country, Wiltshire, Somerset and Bath, people are feeling the situation in their pockets, people are going out less.”

Mr Brod said they are not getting rid of any staff as their business strongly depends on the quality of their hospitality so they are having to make savings elsewhere.

“I’m still optimistic, I still feel that humans need hospitality but we’re not valued as an industry and the social benefit is never taken into account by government.”

Chef/owner Aktar Islam, who runs two Michelin starred Opheem in Birmingham, said the rise will cost him up to £120,000 more this year. Pic: Opheem
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Chef/owner Aktar Islam, who runs Opheem in Birmingham, said the rise will cost him up to £120,000 more this year. Pic: Opheem

Aktar Islam, owner/chef at two Michelin-starred Opheem in Birmingham, said the NIC rise will cost him up to £120,000 more in staff costs a year and to maintain the financial position he is in now they would have to make “another million pounds”.

He got emails from eight suppliers on Thursday saying they were raising their costs, and said he will have to raise prices but is concerned about the impact on diners.

The restaurateur hires four commis chefs to train each year but will not be able to this year, or the next few.

“It’s very short-sighted of the government, you’re not going to grow the economy by taxing hospitality out of existence, these sort of businesses are the lifeblood of our economy,” he said.

“They think if a hospitality business closes another will open but people know it’s tough, why would they want to do that? It’s not going to happen.”

The chef sent hundreds of his “at home” kits to fellow chefs this week for their staff as an acknowledgement of how much of a “s*** show” the situation is – “a little hug from us”.

RETAIL

Some of the UK’s biggest retailers, including Tesco, Boots, Marks & Spencer and Next, wrote to Rachel Reeves after the budget to say the NIC hike would lead to higher consumer prices, smaller pay rises, job cuts and store closures.

The British Retail Consortium (BRC), representing more than 200 major retailers and brands, said the costs are so significant neither small or large retailers will be able to absorb them.

Andrew Bailey, the governor of the Bank of England, told the Treasury committee in November that job losses due to the NIC changes were likely to be higher than the 50,000 forecast by the Office for Budget Responsibility (OBR).

Big retailers have warned the NIC rise will lead to higher prices, job cuts and store closures. File pic: PA
Image:
Big retailers have warned the NIC rise will lead to higher prices, job cuts and store closures. File pic: PA

Nick Stowe, chief executive of Monsoon and Accessorize, said retailers had the choice of protecting staff numbers or cancelling investment plans.

He said they were trying to protect staff numbers and would be increasing prices but they would likely have to halt plans to increase store numbers.

Helen Dickinson, head of the BRC, told Sky News the national living wage rise and NIC increase will cost businesses £5bn, adding more than 10% to the cost of hiring someone in an entry-level role.

A further tax on packaging coming in October means retailers will face £7bn in extra costs this year, she said.

“This huge cost burden will undoubtedly reduce investment in stores and jobs and is likely to lead to higher prices,” she added.

SMALL BUSINESSES

A massive 85% of 1,400 small business owners surveyed by the Federation of Small Businesses (FSB) in March reported rising costs compared with the same time last year, with 47% citing tax as the main barrier to growth – the highest level in more than a decade.

Just 8% of those businesses saw an increase in staff numbers over the last quarter, while 21% had to reduce their workforce.

Kate Rumsey, whose family has run Rumsey’s Chocolates in Wendover, Buckinghamshire and Thame, Oxfordshire, for 21 years, said the NIC rise, minimum wage increase and business relief rate reduction will push her staff costs up by 15 to 17% – £70,000 to £80,000 annually.

To offset those costs, she has had to reduce opening hours, including closing on Sundays and bank holidays in one shop for the first time ever, make one person redundant, not replace short-term staff and introduce a hiring freeze.

The soaring price of cocoa has added to her woes and she has had to increase prices by about 10% and will raise them further.

Kate Rumsey, who runs Rumsey's Chocolates in Buckinghamshire and Oxfordshire, said they are being forced to take a short-term view to survive. Pic: Rumsey's Chocolates
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Kate Rumsey, who runs Rumsey’s Chocolates in Buckinghamshire and Oxfordshire, said they are being forced to take a short-term view to survive. Pic: Rumsey’s Chocolates

She told Sky News: “We’re very much taking more of a short-term view at the moment, it’s so seasonal in this business so I said to the team we’ll just get through Q1 then re-evaluate.

“I feel this is a bit about the survival of the fittest and many businesses won’t survive.”

Tina McKenzie, policy chair of the FSB, said the NIC rise “holds back growth” and has seen small business confidence drop to its lowest point since the first year of the pandemic.

With the “highest tax burden for 70 years”, she called on the chancellor to introduce a “raft of pro-small business measures” in the autumn budget so it can deliver on its pledge for growth.

She reminded employers they can claim the Employment Allowance, which has doubled after an FSB campaign to take the first £10,500 off an employer’s annual bill.

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National Insurance rise impacts carers

CARE

The care sector has been warning the government since the October that budget care homes will be forced to close due to the financial pressures the employers’ national insurance rise will place on them.

Care homes receive funding from councils as well as from private fees, but as local authorities feel the squeeze more and more their contributions are not keeping up with rising costs.

The industry has argued without it the NHS would be crippled.

Raj Sehgal, founding director of ArmsCare, a family-run group of six care homes in Norfolk, said the NIC increase means a £360,000 annual impact on the group’s £3.6m payroll.

In an attempt to offset those costs, the group is scrapping staff bonuses and freezing management salaries.

It is also considering reducing day hours, where there are more staff on, so the fewer numbers of night staff work longer hours and with no paid break.

Raj Sehgal said his family-owned group of care homes will need £360,000 extra this year for the NIC hike
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Raj Sehgal said his family-owned group of care homes will need £360,000 extra this year for the NIC hike

Mr Sehgal said: “But what that does do unfortunately, is impact the quality you’re going to be able to provide, at a time when we need to be improving quality, but something has to give.

“The government just doesn’t seem to understand that the funding needs to be there. You cannot keep enforcing higher costs on businesses and not be able to fund those without actually finding the money from somewhere.”

He said the issue is exacerbated by the fact local authority funding, despite increasing to 5%, will not cover the 10% rise.

“It’s going to be a really, really tough ride. And we are going to see a number of providers close their doors,” he warned.

Nadra Ahmed, executive co-chair of the National Care Association, said those who receive, or are waiting to access, care as well as staff will feel the impact the hardest.

“As providers see further shortfalls in the commissioning of care services, they will start to limit what they can do to ensure their viability or, as a last resort exit the market,” she said.

“This is very short-sighted, with serious consequences, which alludes to the understanding of this government.”

Government decided to ‘wipe the slate clean’

A Treasury spokesperson told Sky News the government is “pro-business” but has “taken the difficult but necessary decisions to wipe the slate clean and properly fund our public services after years of declines”.

“Our budget choices have already delivered an NHS with falling waiting lists, a £3.7bn rescue package for social care, and vital protection for Britain’s small businesses,” they said.

“We’re making tough choices today to secure a better tomorrow through our Plan for Change. By investing in economic growth and early years education while capping corporation tax, we’re putting more money in working people’s pockets and giving every child the best start in life.”

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