Chancellor’s difficult decisions in spring statement could just be the start

Published

7 months ago

March 26, 2025

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It might not have been a budget, but the spring statement felt like one.

There was red pen all over the chancellor’s economic plans as Rachel Reeves sought to repair deteriorating public finances by cuts that will hit the poorest in society.

Faced with a deteriorating economic outlook and rising debt repayment costs, the chancellor was in a tight spot having made her big call back in October when she executed a – her words – “once in a generation” £70bn tax and spend budget to improve public services and drive economic growth.

Five months in, the budget is not living up to what was billed.

She confirmed on Wednesday that the £9.9bn surplus forecast in 2029/30 had been wiped out, leaving the public finances in the red.

Cue a £14bn repair job to restore her fiscal cushion as Reeves told the House of Commons her fiscal rule to fund day-to-day government spending from tax receipts not borrowing by the end of the decade was “non-negotiable”.

No more borrowing and no more tax hikes (for now).

The chancellor instead announced billions of spending cuts to make her sums add up and the cuts were hard to stomach for the Labour movement as they watched a Labour chancellor cut the welfare bill by £4.8bn.

The government’s own assessments estimate that 3.2m families on universal credit will be on average £1,720 worse off a year by 2029/30 while 250,000 adults and 50,000 more children are set to be pushed into relative poverty, according to the government’s own impact assessment.

I don’t need to tell you how uncomfortable this is for many Labour MPs and the clamour against cuts was plain to see, not only in the Commons as MPs stood up to rail against “cruel cuts” and urge the chancellor to think again, but outside Downing Street too as protesters gathered.

For now, MPs, and government insiders, tell me they don’t scent a full-blown rebellion. One seasoned MP told me that while MPs are very concerned about how these cuts will be implemented and reaction from constituents, they also “generally still recognise the tough circumstances” with “no one in doubt Rachel Reeves is serious about turning around public finances”.

Government figures argue they do not think the fall-out from the cuts will be as bad as their own assessment, pointing out that the calculations don’t take into account the rise in national living wage, the government’s poverty plan for around 700,000 vulnerable families and changes to employment support as part of the welfare reform that should help people back into work.

But that does not mean the difficulties are not piling up for this chancellor even if on Wednesday she managed to buy a bit of political space as she repaired her black hole, avoided an emergency budget and could at least point to upgrades to the growth forecasts after 2026.

There was also a rabbit of sorts – the chancellor looks very happy about this – as she announced that the government’s planning reforms would add nearly £7bn to the economy over the next five years.

This is something to grasp on to for a politician groping around for a bit of good news and something to sell to her MPs: Stick with me the growth plan is going to work.

But what is plain to see is that this is a repair job rather than a fix.

As the Office of Budget Responsibility itself noted, the £9.9bn headroom Reeves has re-built to stick to her fiscal rules is flimsy and fragile and could easily be wiped out by trade wars, an interest rate shock or market volatility in these deeply uncertain times.

So, the question on everyone’s lips is will she have to come back for more in a few months? When I asked her at this afternoon’s press conference, she said only that the government was, as demonstrated on Wednesday, “determined to live within its means”.

But it’s obvious that further tax rises or spending cuts could soon be on the cards if she remains determined to stick to her fiscal rules and not borrow more.

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What is clear too is that the appetite for further spending cuts from her own party is pretty much exhausted.

Labour MPs were vocal about that in the chamber, demanding taxes on the rich rather than benefits cuts on the poor, while those who are sticking with the chancellor now also know all too well that pressure will build to raise revenue elsewhere.

The chancellor may have managed to navigate a difficult day, but the months ahead look set to become harder still. The difficult decisions now could be just the start.

UK

‘Victory for Virginia’, says family of Prince Andrew’s accuser – as royal gives up all his titles

Published

5 hours ago

October 18, 2025

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'Victory for Virginia', says family of Prince Andrew's accuser - as royal gives up all his titles

The family of Virginia Giuffre has said Prince Andrew’s decision to give up his titles, including the Duke of York, is “vindication for our sister and survivors everywhere”.

“This is not just a victory for her, but for every single survivor of the horrific crimes perpetrated by [Jeffrey] Epstein and his co-conspirators,” they said in a statement.

Andrew will no longer be known as the Duke of York, in a move which finally completes his banishment from royal life. However, he will remain a prince, as the son of Queen Elizabeth II.

His former wife, Sarah Ferguson, will also no longer use her title of The Duchess of York, it is understood.

In a statement, Prince Andrew said: “In discussion with The King, and my immediate and wider family, we have concluded the continued accusations about me distract from the work of His Majesty and the Royal Family.

“I have decided, as I always have, to put my duty to my family and country first. I stand by my decision five years ago to stand back from public life.

“With His Majesty’s agreement, we feel I must now go a step further. I will therefore no longer use my title or the honours which have been conferred upon me.

“As I have said previously, I vigorously deny the accusations against me.”

Why is this happening now?

The decision comes following increased pressure on Prince Andrew after continuing reports of his relationship with paedophile financier Jeffrey Epstein, and his relationship with an alleged Chinese spy.

The posthumous memoir of Virginia Giuffre, who died in April, is due to be released on Tuesday. She had accused Andrew of sexual assault, and sued him in August 2021.

The book will go on sale a week after an email emerged showing Andrew told Epstein “we are in this together”, three months after he said he had stopped contact with the convicted sex offender.

On Friday evening, the US House Oversight Committee also released documents from Epstein’s estate showing “Prince Andrew” listed as a passenger on the financier’s private jet – the so-called Lolita Express – from Luton to Edinburgh in 2006, alongside Ghislaine Maxwell.

He was also listed on another flight to West Palm Beach, Florida, in 2000.

The flight logs have been reported on for years but the release may have added to pressure.

“The situation has become untenable and intolerable, and this week in particular, the tipping point had been reached,” said Sky News royal correspondent Laura Bundock.

What is Prince Andrew giving up?

Prince Andrew is giving up his Duke of York title
His knighthood as a Knight Grand Cross of the Royal Victorian Order (GCVO)
His Garter role as a Royal Knight Companion of the Most Noble Order of the Garter
Christmas with the Royal Family at Sandringham
He had already stopped using his HRH title and and was stripped of military patronages by the Queen in 2022
He will retain his dukedom, which can only be removed by an Act of Parliament, but will not use it
He will also remain a prince as he was born the son of Elizabeth II

It is understood the changes will take effect immediately, with the Giuffre family calling for the King to go further and “remove the title of Prince”.

King ‘glad’ of the outcome

The King is glad of the outcome, it is understood, and the decision was taken in close consultation with His Majesty and other members of the Royal Family.

Andrew will continue to be known as Prince Andrew and will remain living at the Windsor Estate at the Royal Lodge.

The move does not impact the position of his daughters, Princess Beatrice and Princess Eugenie.

For the second year running, he is not expected to attend the Royal Family’s annual Christmas celebrations at Sandringham.

‘An unwelcome distraction’

Sky News royal correspondent Rhiannon Mills said: “This is quite an extraordinary move. I think it shows that, actually, things had gone too far.

“Prince Andrew, and allegations about him and Virginia Giuffre, were continuing to be too much of a distraction for the Royal Family.”

Jack Royston, chief royal correspondent at Newsweek, told Sky News: “This does not go far enough.”

There should be an acknowledgement from the Royal Family, he said, “irrespective of whether Prince Andrew denies the substantive allegations against him [that] it was morally wrong for him to grovel to Jeffrey Epstein”.

The Guardian’s former royal correspondent Stephen Bates also told Sky News: “He’s shown no sign of any sort of contrition. He continues to deny all the allegations against him. And he speaks of his duty to the family. Well, it’s a bit late to be thinking about that.”

What is Prince Andrew accused of?

Prince Andrew has denied allegations made by Ms Giuffre – one of Epstein’s victims – of sexual assault.

She had filed a civil lawsuit against him, accusing him of sexually assaulting her on three occasions after she was introduced to him by Epstein.

In a 2019 interview with BBC Newsnight, Andrew said he had no knowledge of ever meeting Ms Giuffre, claiming a well-known image of them together had been doctored.

The case was settled outside court for a sum believed to have been around £12m.

Following Ms Giuffre’s death in April, aged 41, her family said she “lost her life to suicide” at her farm in Western Australia.

Giuffre’s family: ‘Victory for Virginia’

In a statement, the family of Ms Giuffre said they supported Andrew’s decision but repeated accusations that he had made misleading statements. Andrew has repeatedly denied any wrongdoing.

Analysis: Prince Andrew giving up titles was clearly not entirely his decision

It is extraordinary that it has come to this but the distraction had to stop.

The statement comes straight from Prince Andrew, the tone of it very personal as he says he is putting his “duty to my family and country first”.

But this was clearly not entirely his decision.

From the first sentence, where he says “in discussion with the King”, we’re left in no doubt that his brother must have said enough was enough.

UK

Prince Andrew giving up titles was clearly not entirely his decision

Published

5 hours ago

October 18, 2025

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Prince Andrew giving up titles was clearly not entirely his decision

It is extraordinary that it has come to this but the distraction had to stop.

The statement comes straight from Prince Andrew, the tone of it very personal as he says he is putting his “duty to my family and country first”.

But this was clearly not entirely his decision.

From the first sentence, where he says “in discussion with the King”, we’re left in no doubt his brother must have said enough was enough.

The fact we’re being guided that the King is glad of this outcome says it all; for the monarch and the wider family, the questions of what they were going to do about Andrew had to stop.

After years of upset caused by his association with convicted paedophile Jeffrey Epstein, he has done the family one favour by personally announcing that he will no longer use his titles.

For the King to forcibly remove them would have taken up precious parliamentary time and weeks of column inches.

To be clear, his titles aren’t removed, they remain extant but inactive like his HRH title.

But Andrew won’t use them any more, and that will be humiliation enough for a man who has already been stripped of his military affiliations, his charity patronages and his ability to have any kind of public profile.

This ends the questions on what more the monarch could do to show how the family felt about the accusations, the upset and the embarrassment caused.

Will it stop the stories, the allegations and the interest in Prince Andrew? That is far less certain.

But in what is his first public statement since that ill-fated Newsnight interview in 2019, it is striking that he signs it off by saying: “I vigorously deny the accusations against me.”

UK

Everything we know about Prince Andrew’s titles decision

Published

5 hours ago

October 18, 2025

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Everything we know about Prince Andrew's titles decision

Prince Andrew has announced he is giving up his royal titles, including the Duke of York.

The decision is understood to have been made in close consultation with King Charles and other members of the Royal Family.

Prince Andrew said continued accusations against him were distracting from the King’s work.

He had been accused by Virginia Giuffre, who died in April, of sexual assault. He denies this.

Which titles is he giving up?

Prince Andrew is giving up his Duke of York title. Sky News understands this will be immediate.

He will also give up his knighthood as a Knight Grand Cross of the Royal Victorian Order (GCVO) and his Garter role as a Royal Knight Companion of the Most Noble Order of the Garter.

He will retain the dukedom, which can only be removed by an Act of Parliament, but will not use it.

Prince Andrew will also remain a prince, as the son of Queen Elizabeth II.

Why is this happening now?

Ms Giuffre, who was one of billionaire paedophile Jeffrey Epstein’s victims, alleged Prince Andrew sexually assaulted her on three occasions when she was 17, and sued him in 2021.

In her posthumous memoir Nobody’s Girl, due to be published on Tuesday, she alleged he was “entitled” and “believed having sex with me was his birthright”.

Prince Andrew has always denied the allegations.

He has also always claimed that a well-known image of them together was doctored. Before her death, which her family said was by suicide, the case was settled outside of court for a sum believed to have been around £12m.

Ms Giuffre’s posthumous memoir goes on sale a week after an email emerged showing Andrew told Epstein “we are in this together”.

The email was reportedly sent three months after he said he had stopped contact with the convicted sex offender.

He was also listed on another flight to West Palm Beach, Florida, in 2000.

The flight logs have been reported on for years but the release may have added to pressure.

“The situation has become untenable and intolerable, and this week in particular, the tipping point had been reached,” said royal correspondent Laura Bundock.

It is understood that the changes will take effect immediately.

The Giuffre family has called for the King to go further and “remove the title of Prince”.

Prince Andrew’s decision to relinquish his titles also comes following increased pressure over his relationship with an alleged Chinese spy.

Will this affect his ex-wife and daughters?

Sky News understands that Andrew will continue to live at the Windsor Estate at the Royal Lodge. His ex-wife, Sarah Ferguson, will also remain living at the Royal Lodge.

But for the second year running, he will not attend the Royal Family’s annual Christmas celebrations at Sandringham, it is understood.

Andrew’s ex-wife will also no longer use her Duchess of York title.

She was dropped by numerous charities last month after it emerged that she wrote to convicted sex offender Epstein, calling him a “supreme friend”, despite publicly disowning him in the media.

The decision over Andrew’s titles will not impact on the position of his daughters, Princess Beatrice and Princess Eugenie, it is understood.

Sky News royal correspondent Rhiannon Mills says the move may not stop the influx of negative stories about him.

She said: “This ends the questions on what more the monarch could do to show how the family felt about the accusations, the upset and the embarrassment caused.

“Will it stop the stories, the allegations and the interest in Prince Andrew? That is far less certain. But in what is the prince’s first public statement since that ill-fated Newsnight interview in 2019, it is striking that he signs it off by saying, ‘I vigorously deny the accusations against me’.”

What did Prince Andrew say in his statement?

In his statement, Prince Andrew said: “In discussion with The King, and my immediate and wider family, we have concluded the continued accusations about me distract from the work of His Majesty and the Royal Family.

“I have decided, as I always have, to put my duty to my family and country first. I stand by my decision five years ago to stand back from public life.

“With His Majesty’s agreement, we feel I must now go a step further. I will therefore no longer use my title or the honours which have been conferred upon me.

“As I have said previously, I vigorously deny the accusations against me.”