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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).

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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.

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Beth Rigby asks: ‘Is it time for you to level with people?’

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.

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After the spring statement we end more or less where we began

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.

Rachel Reeves holds a press conference at the Downing Street Briefing Room.
Pic: PA
Image:
Rachel Reeves. Pic: PA

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.

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Grooming gang victims being denied compensation because of criminal records

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Grooming gang victims being denied compensation because of criminal records

Victims of grooming gangs and modern slavery are being denied compensation by a government scheme because of their criminal records, Sky News has learned.

Analysis of official figures by Sky News’ Data & Forensics team shows more than 11,000 victims of crime over the last decade have been denied payouts because of their unspent convictions, including children.

The Criminal Injuries Compensation Authority can award money to victims of violent crime, including sexual abuse.

It is the only government compensation scheme for victims – for those unable to work due to injuries, the money can be vital.

But, if an applicant has a criminal record, they are automatically refused compensation with limited exceptions.

Those with unspent convictions sometimes receive reduced sums.

Sky News has found that at least 130 children with criminal records have received reduced awards over the last 10 years, including 50 victims of sex abuse, four victims of brain damage, and one child who lost sight in an eye.

This rule on unspent convictions is based on the idea that public funds should only compensate blameless victims of crime and not, for example, a gang member who was injured in a fight.

But many argue the policy punishes those who have been forced to offend by exploiters, as well as victims of child sexual abuse.

‘I was frustrated that I wasn’t being believed’

Arthur Sherry, 43, from Perranporth in Cornwall was regularly abused by his babysitter from the age of five, including suffering rape.

In 2008, he reported it to Devon and Cornwall Police, alongside two other victims. He alleges the police did not believe him, and charges were not brought against his abuser.

Arthur Sherry, who was abused as a child, says he was denied compensation because of his criminal record
Image:
Arthur Sherry, who was abused as a child, says he was denied compensation because of his criminal record

Arthur became angry and descended into addiction as a “coping mechanism”, becoming suicidal, and was repeatedly arrested for minor offences, such as making false calls to the emergency services.

“I wasn’t getting support from any agencies, and no one asked me, ‘Why is this man ringing the emergency services all the time?'”

“It was a cry for help. I was frustrated that I wasn’t being believed.”

Eventually, Arthur’s abuser, Shaun Burton, was convicted of multiple offences against children, including 11 counts of indecency with a child in relation to Mr Sherry.

But when Arthur, who suffers from complex PTSD, subsequently tried to make a claim through the Criminal Injuries Compensation Authority in 2013, it was rejected because of his criminal record and because he submitted his application beyond CICA’s time limit.

He was not allowed to appeal the decision.

Arthur, aged 12 in the picture, was regularly abused by his babysitter, Shaun Burton, from the age of five
Image:
Arthur, aged 12 in the picture, was regularly abused by his babysitter, Shaun Burton, from the age of five

Many survivors of grooming gangs have criminal records due to being exploited and coerced.

While the government recently announced plans to disregard child prostitution convictions for these victims, many are urging authorities to go further and pardon all related offences.

Former victims’ commissioner Dame Vera Baird said: “They were not exercising their own free will and voluntarily committing crime, so there should be a discretion to look at that and say, ‘No, that wasn’t their fault’.

“They should get compensation for all the evil that was done to them by that gang.”

In 2022, the Independent Inquiry into Child Sexual Abuse recommended that the government amend the Criminal Injuries Compensation Scheme so that “applicants with unspent convictions are not automatically excluded where offences are likely to be linked to the circumstances of their sexual abuse as a child”.

The government has refused to act on this recommendation.

However, Labour MP Sarah Champion has tabled an amendment to the upcoming Victims and Courts Bill, hoping to implement it, as well as widen eligibility to the scheme.

“Victims are seen as running a cannabis farm and get a conviction, before it actually turns out that they were a victim of modern slavery.

“These people, who are very clearly recognised as victims and survivors, aren’t getting the money that’s owed to them. The system is broken and the ministers need to get rid of it.”

'I was frustrated that I wasn't being believed,' Arthur tells Sky News' Alice Porter
Image:
‘I was frustrated that I wasn’t being believed,’ Arthur tells Sky News’ Alice Porter

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A government spokesperson said: “Last year, more than £164m was paid out under the Criminal Injuries Compensation Scheme to victims, and we are going further by removing the time limit for civil personal injury claims and doubling Home Office funding for services supporting adult victims and survivors of child sexual abuse.

“Changes to the way we compensate victims have been considered by successive governments, and our priority must always be to treat all victims of violence equally.”

Devon and Cornwall Police said: “Tackling sexual offending is a key priority for Devon & Cornwall Police and we are working hard to bring offenders to justice.

“We take reports of all sexual offences seriously and will carry out thorough investigations into reports, looking at all viable lines of enquiry.”

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From ‘Xmas gifts’ to piles of cash: How ex-Reform MEP was caught doing Russia’s bidding

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From 'Xmas gifts' to piles of cash: How ex-Reform MEP was caught doing Russia's bidding

Nathan Gill was at Manchester airport, about to board a flight to Russia, when accepting bribes finally caught up with him.

Gill, the former leader of Reform UK Wales and a one-time member of the European Parliament, who on Friday was jailed for 10-a-half-years, was stopped by police before boarding and had his phone seized in 2021.

While they interrogated him, his home in Anglesey was raided, with detectives discovering more electronics and cash piles of €5,000 (£4,400) and $5,000 (£3,800) respectively.

Nathan Gill being questioned. Pic: Met Police
Image:
Nathan Gill being questioned. Pic: Met Police


The evidence on Gill’s phone would damn him – he was in contact with a pro-Russian politician in Ukraine, Oleg Voloshyn, and had agreed to boost pro-Russia viewpoints in exchange for money.

Voloshyn would dictate the statement, and Gill would repeat it – in some cases, almost word for word – in the media or the European Parliament.

In one instance, Gill appeared on the now-banned Ukrainian TV channel, 112 Ukraine, which was known for its pro-Russian stance.

In the interview, he was critical of the Ukrainian decision to open criminal proceedings against Viktor Medvedchuk, the owner of the television channel and a personal friend of Vladimir Putin.

Nathan Gill. Pic: Met Police
Image:
Nathan Gill. Pic: Met Police

Speaking to the outlet, he said he was “very concerned” about the investigation, and wondered whether it was meant to silence “opposition politicians”.

Prosecutors said messages on Gill’s phone showed that this was at his paymaster’s instruction, with Voloshyn offering a “reward” if he would say that it was unacceptable to persecute a person for their political convictions.

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Voloshyn also offered the MEP €2,000 (£1,750) if he would express concern that Mr Medvedchuk could no longer mediate with Russia on Ukraine’s behalf, the court heard.

He added that “V” – understood to be Mr Medvedchuk – did not believe Ukrainian President Volodymyr Zelenskyy had “true intentions to pursue a peace agenda”, prosecutors said.

Bundles of cash were recovered from Gill's home. Pic: Met Police
Image:
Bundles of cash were recovered from Gill’s home. Pic: Met Police

Sure enough, Gill appeared on 112 Ukraine saying it was “very sad” that Mr Medvedchuk felt he no longer had Mr Zelensky’s backing to act as a mediator with Russia, and suggested that using him “would be a sensible thing to do”.

The messages traded in innuendo, referring to the exchange of “Xmas gifts” or “postcards” instead of money.

But as the pair grew more comfortable with each other, they bargained more explicitly, with the sum of “£5k” quoted for Gill’s work.

Dominic Murphy, head of Counter Terrorism Command at the Met Police, said Gill had also offered access to other MEPs.

“This is where we get into that slightly odd situation where it feels very much like a real effort to undermine democracy here,” he said.

“This is Nathan Gill reaching out to individuals that he knows, who are Brits, who might be willing to be paid to go and make speeches.”

Commander Murphy declined to name names, but said there was an ongoing investigation and that other people had been spoken to.

None of the pro-Brexit MEPs Gill allegedly approached have been interviewed under caution.

Pic: Met Police
Image:
Pic: Met Police

Police confirmed there was no evidence to suggest Reform UK leader Nigel Farage was involved.

Gill was stopped at Manchester Airport on 13 September 2021, under schedule 3 of the Counter Terrorism and Borders Security Act 2019.

He offered police no explanation for his actions and answered no comment in a March 2022 police interview.

But the 52-year-old is believed to have had financial problems.

Mr Murphy added that while Gill appeared to have pro-Russian sympathies, he was primarily motivated by money.

The ex-MEP has been jailed for 10-and-a-half years after pleading guilty to eight counts of bribery between December 2018 and July 2019.

Following an investigation by counter-terrorism police, officers said they believe Gill likely took a minimum of £40,000 in cash and was offering to introduce other British MEPs so they could be bribed.

Voloshyn was picked up by the authorities on a trip to the US in 2021, which enabled the FBI to discover his end of the conversation.

He is now believed to be in Russia, but has been sanctioned by the UK government over allegations of trying to destabilise Ukraine.

Nathan Gill pleaded guilty to eight counts of bribery over pro-Russian statements. Including to media outlet 112 Ukraine. Pic: Met Police
Image:
Nathan Gill pleaded guilty to eight counts of bribery over pro-Russian statements. Including to media outlet 112 Ukraine. Pic: Met Police

He remains wanted in both Britain and Ukraine.

A Reform UK spokesman said: “Mr Gill’s actions were reprehensible, treasonous and unforgivable.

“We are glad that justice has been served and fully welcome the sentence Nathan Gill has received.”

Mr Farage, the Reform UK leader, said: “An investigation into Russian and Chinese influence over British politics would be welcome.”

The MP for Clacton previously described his former colleague as a “bad apple” and said he was “shocked” after Gill pleaded guilty to eight counts of bribery.

He said: “Any political party can find in their midst all sorts of terrible people.

“You can never, ever guarantee 100% that everyone you meet in your life, you shake hands with in the pub, is a good person.”

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BBC board member resigns – and criticises ‘governance issues’ at top of corporation

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BBC board member resigns - and criticises 'governance issues' at top of corporation

A BBC board member has resigned after criticising “governance issues” at the top of the corporation.

Shumeet Banerji confirmed the news in a letter on Friday, according to BBC News.

It comes after the corporation’s director-general Tim Davie and chief executive of BBC News Deborah Turness resigned earlier this month after a row over the editing of a Panorama documentary on Donald Trump.

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

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