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Britain faces four years of economic pain because the government has made life difficult for businesses following the budget, the co-founder of BrewDog has told Sky News.

James Watt has also suggested the UK is work-shy and only hard graft will lead to prosperity, which is lacking in the country.

It comes on the day Work and Pensions Secretary Liz Kendall announces a new review named “Keep Britain Working” in an effort to support people with long-term illnesses or disabilities back into work, while trying to lower the ballooning welfare bill.

Work and Pensions Secretary Liz Kendall. Pic: PA
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Work and Pensions Secretary Liz Kendall. Pic: PA

The review will be led by former John Lewis chairman Sir Charlie Mayfield at a time when around 3.7 million people of working age receive health-related benefits, which is 1.2 million more than in February 2020.

Britain is now spending more on incapacity and disability benefits (almost £65bn) than defence – and that figure is set to rise.

Mr Watt, who stepped down as BrewDog chief executive last May, made headlines earlier this month after posting a video with fiancee Georgia Toffolo in which they said they do not believe in a “work-life balance”.

He is launching an entrepreneurial competition show named House Of Unicorns in a bid to find a start-up company with a £2m prize.

He said: “I think the Labour government certainly haven’t helped businesses and haven’t helped founders.

“I think the budget is really, really bad for the UK and caused a lot of damage. And I think the UK attitude towards success and attitude towards entrepreneurs doesn’t help us.

“When you contrast that with the American attitude towards success that is one of the reasons you see so many more founders and entrepreneurs in America versus the UK at the moment.”

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‘UK economy is heading towards recession’

Mr Watt was scathing about the country’s economic prospects, saying: “The UK economy is heading towards a recession, we have debt levels which are way too high, we are trying to tax our way to economic prosperity, which I don’t think will work at all.

“And all the chancellor has done is make it very, very difficult for businesses to employ people, which I think in turn is going to lead to four years of economic pain.”

Asked whether he thought British workers were work shy, Mr Watt told Sky News: “I think you just have to look at the data, we are 18% less productive than America, we are 13% less productive than the French. And we often joke about the French being lazy.”

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How the budget might impact employees

Work and pensions secretary defends budget

But the work and pensions secretary defended the budget, insisting it was not a tax on jobs.

On a visit to Coca-Cola’s headquarters, Ms Kendall told Sky News: “We have seen a tick up in youth unemployment and I’m really concerned about that.

“We’ve got now one million young people not in education, employment or training. That is terrible for their future life chances, because we know if you’re out of work and you don’t have skills when you’re young, it can have lifelong consequences.

“That’s why we will have a youth guarantee. So every young person is earning or learning. No ifs, no buts.”

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What does budget mean for young people?

‘We won’t means test’ pension triple lock – Liz Kendall

Ms Kendall also doubled down on her commitment to the state pension triple lock despite the necessity to cut the welfare bill.

“We won’t means test it,” she said. “We committed to the triple lock because we believe current pensioners and future pensioners deserve to be able to plan with security.”

Mr Watt however is the latest in a line of business leaders who have warned the budget will lead to companies laying people off this year.

It comes as new figures released this week showed an increase in unemployment and a fall in vacancies at a time in which the population continues to grow.

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Protesters throw powder on Tower Bridge during London Marathon

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Protesters throw powder on Tower Bridge during London Marathon

Two pro-Palestinian demonstrators have thrown red powder on Tower Bridge – just moments before leading runners in the London Marathon went past.

The protesters were arrested on suspicion of causing a public nuisance and remain in custody, said the Metropolitan Police.

A video shared by Youth Demand, which is calling for a trade embargo on Israel, shows two people jumping over a barrier that separates spectators from the race course.

The pair, wearing t-shirts that say “Youth Demand: Stop Arming Israel”, are then seen standing in the middle of the road on the bridge.

Pic: LNP
Image:
Pic: LNP

They throw red powder in the air as an official marathon car goes past displaying the race time.

A motorbike with a cameraman on board continues along the route, while a second motorbike stops and one of the riders gets off and pushes the pair out of the way, just before the men’s elite runners pass.

Several police officers then jump over the barrier and detain the pair, the footage shows.

More on London Marathon 2025

There appeared to be no impact on the marathon.

More than 56,000 participants were expected to take part in the 26.2-mile race through the capital.

Sabastian Sawe of Kenya won the men’s elite race in a time of two hours, two minutes and 27 seconds, while Ethiopia’s Tigst Assefa shattered the women’s-only world record in two hours, 15 minutes and 50 seconds.

Assefa beat the previous best of two hours, 16 minutes and 16 seconds set last year in London by Kenyan Peres Jepchirchir.

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Pic: LNP
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Pic: LNP

The Metropolitan Police said in a statement: “At around 10.38am, two protesters from Youth Demand jumped over barriers at Tower Bridge and threw red paint on to the road.

“Marathon event staff intervened to remove the protesters from the path of the men’s elite race which was able to pass unobstructed.”

The force added that they were “quickly supported by police officers who arrested the protesters on suspicion of causing a public nuisance”.

The Met said the paint “appeared to be chalk-based” and was not expected to “present a hazard to runners yet to pass this point”.

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Kemi Badenoch does not rule out local coalitions with Reform after next week’s council elections

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Kemi Badenoch does not rule out local coalitions with Reform after next week's council elections

Kemi Badenoch has not ruled out forming coalitions at a local level with Reform after the council elections next week.

Speaking to Sunday Morning with Trevor Phillips, the Conservative leader did however categorically rule out a pact with Nigel Farage’s party on a national level.

“I am not going into any coalition with Nigel Farage… read my lips,” she said.

However, she did not deny that deals could be struck with Reform at a local level, arguing that some councils might be under no overall control and in that case, “you have to do what is right for your local area”.

“You look at the moment, we are in coalition with Liberal Democrats, with independents,” she said. “We’ve been in coalition with Labour before at local government level.

“They [councillors] have to look at who the people are that they’re going into coalition with and see how they can deliver for local people.”

She added: “What I don’t want to hear is talks of stitch-ups or people planning things before the results are out. They have to do what is right for their communities.”

More on Electoral Dysfunction

A total of 23 councils are up for grabs when voters go to the polls on Thursday 1 May – mostly in places that were once deemed Tory shires, until last year’s general election.

It includes 14 county councils, all but two of which have been Conservative-controlled, as well as eight unitary authorities, all but one of which are Tory.

Ms Badenoch has set expectations low for the Tories, suggesting they could lose all the councils they are contesting.

The last time this set of councils were up for election was in 2021, when the Conservative Party was led by Boris Johnson who was riding high from the COVID vaccine bounce.

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Counter-terrorism police investigating after two women injured in Leeds

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Counter-terrorism police investigating after two women injured in Leeds

Counter-terrorism police are investigating after an incident involving a crossbow and a firearm left two women injured in Leeds.

Police were called to Otley Road at 2.47pm on Saturday to reports of a “serious incident involving a man seen with weapons”, West Yorkshire Police said.

Officers arrived at the scene to find two women injured – and a 38-year-old man with a self-inflicted injury. All three were taken to hospital, with the man held under arrest, but their injuries are not believed to be life-threatening.

“Two weapons have been recovered from the scene, which were a crossbow and a firearm,” Counter Terrorism Policing North East said in a statement.

The incident happened on the ‘Otley Run’ pub crawl, with one venue saying it was closed for the evening due to “unforeseen circumstances”.

Officers guard one of the crime scenes in Leeds
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Officers guard one of the crime scenes

Officers inside the cordon in Leeds
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Officers inside the cordon in Leeds

Counter Terrorism Policing’s statement added: “Due to the circumstances surrounding the incident, Counter Terrorism Policing North East have taken responsibility for leading the investigation with the support of West Yorkshire Police.

“Extensive enquiries continue to establish the full circumstances and explore any potential motivation.”

Home Secretary Yvette Cooper described it as a “serious violent incident” and said she was being kept updated by police.

“Thank you to the police and emergency services for their swift response,” she said. “My thoughts are with the victims and all those affected by this attack.”

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