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Increased funding for social housing is needed to meet ambitious government building targets, according to experts.

Representatives of England’s housing associations estimate they need funding for affordable homes to be nearly doubled to £4.6bn a year alongside other funding and policy measures.

Ahead of this week’s budget, the Treasury has teased a £500m boost to the current affordable homes programme, which is currently under target and out of funds.

This will bring average spending on the programme, which ends in 2026, to around £2.5bn a year across its five-year total run.

Responding to the announcement, the National Housing Federation said it welcomed the “vital” short-term top-up.

But the sector will have to wait until the spring for clarity on future funding arrangements.

In a letter obtained by Sky News, representatives of the Chartered Institute for Housing, the National Housing Federation, and homelessness charities Crisis and Shelter warn Rachel Reeves that without “significant new investment” in social housing the government’s long-term housing plans will fail.

They have each made their own funding recommendations to the chancellor and agree that “ambitious” public investment is essential because the private sector can’t meet the building target alone.

“While the government’s 1.5 million homes target is warmly supported, our organisations have emphasised that this can only be achieved via a major increase in output by both the private and social housing sectors,” the letter states.

It cites a recent report by Savills suggesting the government will fall short of its target by almost a third without boosting the social sector and supporting first-time buyers.

Letter signed by leaders of several housing organizations
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A letter signed by leaders of several housing organisations, shared exclusively with Sky News

The National Housing Federation estimates that housing associations have the capacity to contribute 200,000 social homes towards the government’s overall building target but estimates this will require a funding package of £6.6bn a year from the next spending review.

That’s £4.6bn to build social housing plus an additional £2bn a year required to cover increasingly expensive building upgrades and maintenance costs, which have sucked money out of current budgets.

This would be a major increase on current spending and doesn’t include other potential costs for the government like the recently announced Brownfield Land Fund.

But in historic terms, it’s a small fraction of what has been invested previously.

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Growing pressure on housing system

In 1976, housebuilding accounted for almost all government housing spending, at £22.7bn in inflation-adjusted prices.

This was around the last time England built homes at anything like the scale now being proposed, but back then nearly half of housebuilding was funded by government directly.

Since then, building has been left increasingly to the private sector and the balance in building vs benefits spending has reversed. In 2022, spending on building was down to £3.9bn a year, overshadowed by a £28.6bn benefits bill to support people through various types of housing subsidies.

Shifting spending away from building towards benefits can work when there is enough housing supply, as these subsidies can be more flexible to people’s changing housing circumstances.

But soaring spending on benefits in recent years is symptomatic of growing pressure on the housing system.

Despite attempts to control expenditure through cuts and benefit freezes under the previous government, a lack of available affordable housing has meant spending has repeatedly surpassed official forecasts.

Shrinking social housing sector

A record 117,000 homeless households are now in temporary accommodation, while the social housing waiting list has grown to 1.6 million in England, driven by rising housing costs while social housing stock has been diminished by a decrease in new building combined with right to buy sell-offs.

The proportion of social houses has reached a new low, nearly halving in the past 50 years from 28% of housing stock in 1973 to 16% by 2023.

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Gavin Smart, chief executive of the Chartered Institute of Housing, told Sky News: ”We completely support the government’s goal of building 1.5 million homes.

“But that goal will be missed without supporting investment by the government.

“Boosting the supply of social rented housing is critical to tackle homelessness, enabling local authorities to move people more rapidly out of expensive temporary accommodation and reduce these costs that are currently crippling public finances. We need a sustainable housing system that supports a vibrant economy.”

In response to the letter, the Ministry for Housing Communities and Local Government said it remains committed to fixing the housing crisis and to targets, including “the biggest increase in social and affordable housebuilding in a generation”.

A spokesperson said: “We will set out details of future government investment in social and affordable housing at the next spending review, so social housing providers can plan for the future and help us to achieve this.”

It remains to be seen how much this future investment may be, with the generational increase suggested starting from a low base.

Bristol embodies the housing crisis

Bristol is at the forefront of England’s housing crisis. At 49% of income, average rents are higher compared to earnings than anywhere else in the country, up from 41% in 2015. House prices have risen to nine times average earnings over the same period.

While building more homes for the private market is welcomed by the local sector, they stress that there needs to be buyers for them.

Estate agent Sean McCarthy, Land and New Homes Director at C J Hole. Pic: Sky News
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Estate agent Sean McCarthy

Estate agent Sean McCarthy, land and new homes director at C J Hole, told Sky News: “The change in interest rates has impacted a lot of the buying power of purchasers, especially first-time buyers, and has definitely taken some buyers out of the market.

“That’s probably been one of our biggest challenges on the new homes market, certainly in the last 12 months.

“More housing is great, but we also need more housing at an affordable level so people can get on the ladder. And any assistance with regards to a government-backed incentive that would enable people to get out of renting and into homeownership would be very welcomed by us.”

Meanwhile, the social housing waiting list in Bristol has increased by nearly 13,000 households since 2015.

Sky News met nurse and travel agent Esther Umambo, a single parent to four-year-old daughter Annabelle.

Esther Ymambo
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Esther Umambo

They have been waiting for social housing for four years, since Annabelle was born, but Esther says she holds out little hope of securing a tenancy while the number of people in need continues to grow.

“There’s loads and loads of people in front of us. I think a lot of people are in the same situation. Single parents, but also couples,” she said.

Bristol has one of the largest social housing waiting lists in the country for its population size, with now more than 20,000 households waiting for accommodation.

“Rent has increased massively over the past five years. It’s very difficult to afford, I came into Bristol about 15 years ago and the rent is just going up and up.”

Rent for her one-bedroom flat is £1,200, and she gets by for now by juggling two jobs and relying on Universal Credit. But she and her daughter share a bedroom, and there will come a point soon where this is no longer viable.

Esther's daughter Annabelle
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Esther’s daughter Annabelle

“We manage at the moment. I consider myself lucky to be honest, just by being able to work two jobs. Some people are not able to work. But as she grows up, she needs her own room as well,” she explained.

It leaves her feeling frustrated at the situation. She said: “They need to build housing that is affordable for people like me. I’m just a normal person, but the rent can’t keep going up and up and up. I mean, who’s going to be able to afford to live in Bristol in the next 10 years?”

Ed Kehoe has been homeless for five years in Bristol, moving from “pillar to post” while he has grappled with mental health and addiction struggles. For now, he has been placed in temporary accommodation while he awaits more permanent housing, but it’s not easy.

“The system is not working. We’ve got a massive, massive homeless problem in this city. And people are not allocated to the correct property and the correct services,” he said.

“It’s really difficult. It’s harsh out there, you know, people are ending up on the streets because of it. The system needs to change.”

Ed Kehoe
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Ed Kehoe outside his temporary home in Bristol

Targets are ‘too crude’

Bristol is an example of an urban area with an acute housing crisis where proposed housing targets have, counterintuitively, been downgraded.

They’ve been revised from 3,400 additional homes a year down to a proposed 3,000. This is still a larger number than has been achieved in recent years however, which was around 1,800 additional homes a year from 2021 to 2023.

House building site in Bristol

The government has reinstated mandatory building targets for local authorities, with a new formula devised to calculate how many homes each area should be aiming towards. This has shifted focus away from urban areas and puts more building pressure on the north of England.

Targets have been put forward for consultation with local authorities in proposed reforms to the National Planning Policy Framework. These targets are not an entirely new concept but had been scrapped by Michael Gove under the previous Conservative government.

Other areas have had large uplifts in their building targets. In Westmorland and Furness in the North West, for example, where targets have been increased by 530% from current targets and 341% of current building rates with an ask to add 1,430 new homes per year. However, data suggests that this already among the most affordable areas in England, with rents at 21% compared to average incomes.

The maps below show how new targets relate to housing affordability and social housing waiting lists in England.

The areas with the highest housing costs and greatest demand for social housing waiting lists on the left, are not the areas with the biggest uplift in building targets, shown on the right.

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“There are issues around the targets. I think they’re too crude,” said Glen Bramley, Professor of Urban Studies at Heriot-Watt University.

“They are too high for London, given actual experience and acceptable standards for density and greenspace, and also too high in some of the economically weaker parts of the north of England where there isn’t going to be enough buyers who can buy market housing at a viable level for private developers to be that interested,” he explained.

This can lead to issues with poor planning and haphazard development where small numbers of homes are completed “miles away” from services or adequate infrastructure.

“Some of the targets for the most prosperous areas where demand is greatest, where the labour market is very tight, and where there are real affordability problems could be more ambitious,” he added, including areas across the south which are already well served by transport and other infrastructure.

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Builders can only build if buyers can buy

The addition of 1.5 million homes, equivalent to 300,000 a year, would be unrivalled in historic terms.

Even when housebuilding peaked at over 350,000 in 1968, high rates of demolition meant that net additions were below 200,000. 

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“The new government’s approach on planning is very positive thus far,” said Steve Turner, executive director of the Home Builders Federation (HBF), which represents private housebuilders in England.

“There’s a clear commitment to deliver more homes and, as we’ve seen on the planning side, to take difficult policy decisions that the industry wholeheartedly welcomes.”

Roadblocks to success

These measures include the reintroduction of housing targets for local authorities and tackling the thorny issue of building on England’s greenbelt by proposing development on poor quality or previously developed land, newly defined as the ‘grey belt’.

But while most of the policy announcements so far have been focussed on unblocking the planning constraints which have been blamed for England’s sluggish housebuilding in recent years, there are a number of other potential roadblocks to success.

“While the planning reforms are very helpful, they don’t address the demand side of the equation,” a senior executive of one of England’s largest private housing developers told Sky News.

For commercial sensitivity reasons, he has requested to remain anonymous.

“We know the biggest driver of demand for new housing is affordability. With mortgage rates where they are, the cost of mortgages for new home buyers and first-time buyers is high and therefore that is limiting demand for new homes,” he added.

“Recent trading statements from the biggest housebuilders show a drop in the number of active building sites as a result. The number of housing completions is actually set to drop over the next couple of years. So, in terms of delivering a significant increase in output, they’re starting from a low base.”

Plan for mortgage guarantee scheme

The government has proposed a mortgage guarantee scheme but there are no current plans for buyer support schemes like Help to Buy, which have been controversial in the past for their potential contributions to raising house prices.

And issues of affordability are unlikely to be resolved even with increased building supply.

Sky News analysis of changes in house price affordability compared to rates of housebuilding illustrates that areas in England that increased housing stock the most since 2015 have also become proportionally more expensive compared to earnings over the same period.

Sevenoaks in Kent added 11 homes per 1,000 population from 2015 to 2023, but still saw the biggest increase in house prices relative to earnings, increasing from 5.9 to 10.9 as a multiple of average earnings.

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This is in part because of pent-up demand, and also because new build properties are more expensive than houses on the second-hand market.

Further challenges ahead

There are a number of other challenges ahead when it comes to ramping up planning processes and building supply, according to Steve Turner from the HBF.

He explained: “We estimate that the nutrients issue where there’s currently a moratorium on housebuilding in 74 local authority areas is currently blocking around 160,000 homes.

“The government has said it will bring a solution on that, and we need to see that come forward.

“There’s also a clear issue at the minute in terms of local authority planning department capacity.”

The government has said it will recruit an additional 300 planners for local authorities, which while a “welcome recognition of the issue”, only amounts to roughly one additional planner per local authority, and could represent a big drag on the capacity to accelerate planning approvals.

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Workforce capacity in the construction industry is also a looming issue.

“We’re going to need tens of thousands of new people to be able to build those homes. The newly created Skills England needs to work closely with industry so that grant funding for that is used in a way that means we’re bringing enough of the right kind of people through into training,” added Mr Turner.

“I think we also need to look at how you provide access to foreign labour.”

And developers are also waiting for stability in housing associations’ finances in order to be able to start building projects, where there are requirements for housing associations to take on a proportion of the homes as affordable housing.

“Housing associations are not in the market at the moment for taking on additional stock as they’ve got huge financial pressures on them to upgrade their existing stock, but also in terms of building safety issues,” said Mr Turner.

“That’s creating an issue, both in terms of affordable housing provision, but also holding up the developments of private housing as well. Government needs to find a way to ensure that housing associations are adequately funded such that they can continue to take on additional affordable housing.”

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With additional reporting and production by Michelle Inez Simon, visual investigations producer.


The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling, we aim to better explain the world while also showing how our journalism is done.

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David Fuller: Offences committed by hospital worker who sexually abused dozens of corpses ‘could happen again’

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David Fuller: Offences committed by hospital worker who sexually abused dozens of corpses 'could happen again'

An inquiry into the case of a hospital worker who sexually abused dozens of corpses has concluded that “offences such as those committed by David Fuller could happen again”.

It found that “current arrangements in England for the regulation and oversight of the care of people after death are partial, ineffective and, in significant areas, completely lacking”.

The first phase of the inquiry found Fuller, 70, was able to offend for 15 years in mortuaries without being suspected or caught due to “serious failings” at the hospitals where he worked.

Phase 2 of the inquiry has examined the broader national picture and considered if procedures and practices in other hospital and non-hospital settings, where deceased people are kept, safeguard their security and dignity.

What were Fuller’s crimes?

Fuller was given a whole-life prison term in December 2021 for the murders of Wendy Knell and Caroline Pierce in Tunbridge Wells, Kent, in 1987.

During his time as a maintenance worker, he also abused the corpses of at least 101 women and girls at Kent and Sussex Hospital and the Tunbridge Wells Hospital before his arrest in December 2020.

His victims ranged in age from nine to 100.

Phase 1 of the inquiry found he entered one mortuary 444 times in the space of one year “unnoticed and unchecked” and that deceased people were also left out of fridges and overnight during working hours.

‘Inadequate management, governance and processes’

Presenting the findings on Tuesday, Sir Jonathan Michael, chair of the inquiry, said: “This is the first time that the security and dignity of people after death has been reviewed so comprehensively.

“Inadequate management, governance and processes helped create the environment in which David Fuller was able to offend for so long.”

He said that these “weaknesses” are not confined to where Fuller operated, adding that he found examples from “across the country”.

“I have asked myself whether there could be a recurrence of the appalling crimes committed by David Fuller. – I have concluded that yes, it is entirely possible that such offences could be repeated, particularly in those sectors that lack any form of statutory regulation.”

Sir Jonathan called for a statutory regulation to “protect the security and dignity of people after death”.

After an initial glance, his interim report already called for urgent regulation to safeguard the “security and dignity of the deceased”.

On publication of his final report he describes regulation and oversight of care as “ineffective, and in significant areas completely lacking”.

David Fuller was an electrician who committed sexual offences against at least 100 deceased women and girls in the mortuaries of the Kent and Sussex Hospital and the Tunbridge Wells Hospital. His victims ranged in age from nine to 100.

This first phase of the inquiry found Fuller entered the mortuary 444 times in a single year, “unnoticed and unchecked”.

It was highly critical of the systems in place that allowed this to happen.

His shocking discovery, looking at the broader industry – be it other NHS Trusts or the 4,500 funeral directors in England – is that it could easily have happened elsewhere.

The conditions described suggest someone like Fuller could get away with it again.

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MasterChef is ‘bigger than individuals’ and ‘can survive’, BBC says

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MasterChef is 'bigger than individuals' and 'can survive', BBC says

BBC director-general Tim Davie has said MasterChef can survive its current scandal as it is “much bigger than individuals” – but the corporation must “make sure we’re in the right place in terms of the culture of the show”.

On Monday, it was revealed an independent review into “inappropriate behaviour” by MasterChef presenter Gregg Wallace had upheld more than half of the allegations against him.

A few hours later, Wallace’s former MasterChef co-presenter, John Torode, said an allegation he used “racial language” was upheld in the report as part of a review.

After the report was published, Wallace, 60, said he was “deeply sorry” for causing any distress, and never set out to “harm or humiliate”.

Torode, 59, said he had “no recollection of the incident” and said he “did not believe that it happened,” and said he was “shocked and saddened by the allegation”.

Mr Davie said the BBC’s leadership team would not “tolerate behaviour that is not in line with our values,” while BBC chair Samir Shah acknowledged there were still pockets within the broadcaster where “powerful individuals” can still “make life for their colleagues unbearable”.

They said several BBC staff members had been dismissed in the last three months, following an independent review into workplace culture.

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Wallace, who was sacked from MasterChef last week, is not included in that count as he was not directly contracted by the corporation, but employed by independent production company Banijay.

The corporation has yet to decide if the unseen MasterChef series – filmed with both Wallace and Torode last year – will be aired or not.

BBC Broadcasting House in Portland Place, London. Pic: Jordan Pettitt/PA
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BBC Broadcasting House in Portland Place, London. Pic: Jordan Pettitt/PA

News of the findings in the Gregg Wallace report came just hours before the BBC was deemed to have breached its editorial guidelines by failing to disclose that the child narrator of a Gaza documentary was the son of a Hamas official.

Media watchdog Ofcom subsequently launched its own investigation into the programme.

While the 2024-25 annual report showed a small rise in trust overall for the corporation, Mr Davie acknowledged it had been a year which saw the reputation of the BBC damaged by “serious failings” in the making of the documentary.

The BBC boss acknowledged: “It was important that the BBC took full responsibility for those failings and apologised for them,” and later in response to a question, called the documentary – Gaza: How To Survive A Warzone – “the most challenging editorial issue I’ve had to deal with”.

He went on: “The importance of fair balance reporting, the need for high-quality homegrown programming in the face of massive pressure, I think has never, ever been greater. And I believe my leadership and the team I’ve assembled can really help the BBC thrive in that environment and very competitive environment.”

BBC Director-General Tim Davie. Pic: PA
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BBC Director-General Tim Davie. Pic: PA

BBC boss has chair’s ‘full support’

Despite a series of failings in recent months – including livestreaming the controversial Bob Vylan set at Glastonbury last month – Mr Davie insisted he can “lead” the organisation in the right direction.

When asked if he would resign, he replied: “I simply think I’m in a place where I can work to improve dramatically the BBC and lead it in the right way.

“We will make mistakes, but I think as a leadership and myself, I’ve been very clear, and I think we have been decisive.”

He said the organisation was setting a “global standard” for media.

Mr Shah, reiterated his support for Mr Davie.

“Tim Davie and his team, and Tim in particular, has shown very strong leadership throughout all this period and he has my full support.”

The report also revealed its top earners, which saw former Match Of The Day host Gary Lineker top the chart once again.

Meanwhile, Australian children’s cartoon Bluey proved a boon for the broadcaster, and was the most watched show in the US across all genres – with 55 billion minutes viewed.

The top 10 shows watched over Christmas 2024 were also all from the BBC.

Recent annual reviews have been overshadowed by the Huw Edwards scandal and allegations of a toxic environment around flagship show Strictly Come Dancing.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

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Sycamore Gap tree stump ‘showing signs of life’ as men face sentencing for felling landmark

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Sycamore Gap tree stump 'showing signs of life' as men face sentencing for felling landmark

The iconic Sycamore Gap tree “can never be replaced” but its stump is showing signs of life, the National Trust has said, as the two men who felled it face sentencing.

Adam Carruthers, 32, and Daniel Graham, 39, drove 30 miles through a storm from Cumbria to Northumberland on 27 September 2023 before felling the landmark in less than three minutes.

Prosecutors said their “moronic mission” caused more than £620,000 worth of damage to the tree and more than £1,000 worth of damage to Hadrian’s Wall, where it fell.

They took a wedge as a trophy, which has never been recovered, and seemed to revel in the media coverage, exchanging messages and voice notes about the story going “wild” and “viral”.

Footage of the moment the tree was felled was played during the men’s trial at Newcastle Crown Court, where they both denied but were found guilty of two counts of criminal damage.

Adam Carruthers and Daniel Graham. Pic: Northumbria Police/PA
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Adam Carruthers and Daniel Graham. Pic: Northumbria Police/PA

An image of the Sycamore Gap standing, which was shown in evidence. This image was taken at approx. 5.20pm on Wednesday 27 September 2023.
Pic: CPS
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A picture of the tree taken hours before it was felled. Pic: CPS

In a victim impact statement read at their sentencing hearing, National Trust general manager Andrew Poad, said the “iconic tree can never be replaced”.

“While the National Trust has cared for it on behalf of the nation, it belonged to the people,” he wrote.

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“It was a totemic symbol for many; a destination to visit whilst walking Hadrian’s Wall, a place to make memories, take photos in all seasons; but it was also a place of sanctuary – a calming, reflective space that people came to year after year.

“While what was lost cannot be replaced, the stump is showing signs of life, with new shoots emerging at the base – as the decades progress, there is hope that some may grow and establish.”

Mr Poad said the “outpouring of emotion” to the felling was “unprecedented”, with one message from a member of the public described it as “like losing a close family member”.

Pictures were shown in court of a “celebration room” in memory of the tree, including a note which says: “How dare he steal our JOY,” while another reads: “Nature at it’s best over 300 years. Humanity at its worst over one night”.

Mr Poad added: “The overwhelming sense of loss and confusion was felt across the world.

“When it became clear that this was a malicious and deliberate act the question was why anyone would do this to such a beautiful tree in such a special place, it was beyond comprehension.”

Both men deny all charges against them.
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The pair were found guilty of criminal damage

Graham has a previous caution for theft after he cut up a “large quantity of logs using a chainsaw”, the court heard.

He also has convictions for violence including battery and public order offences, which were said to be “relationship-based”, while Carruthers has no previous cautions or convictions.

The tree, which had stood for more than 100 years in a dip in the landscape, held a place in popular culture and was featured in the 1991 Kevin Costner film Robin Hood: Prince Of Thieves.

It also formed part of people’s personal lives, as the scene of wedding proposals, ashes being scattered and countless photographs.

A 6ft section of the trunk is now on public display at The Sill: National Landscape Discovery Centre, around two miles from where it once stood, while 49 saplings taken from the tree have been conserved by the National Trust.

Graham and Carruthers, who were once close friends, gave no explanation for why they targeted the tree, and since their arrests, they have fallen out and come to blame each other.

At their trial, Graham claimed Carruthers had a fascination with the sycamore, saying he had described it as “the most famous tree in the world” and spoken of wanting to cut it down, even keeping a piece of string in his workshop that he had used to measure its circumference.

Carruthers denied this and told the court he could not understand the outcry over the story, saying it was “just a tree”.

Prosecutor Richard Wright KC said the pair have now accepted they went on the mission in pre-sentencing reports.

But Carruthers claimed he was “drunk” and didn’t realise what happened until the next day, while Graham said it was “only when the blade made contact with the tree he realised it was serious,” the court heard.

Mr Wright added: “The court can be sure they were sober, prepared and planned to do exactly what they did.”

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