Connect with us

Published

on

The Office for Budget Responsibility has halved the UK growth forecast for 2025 from 2% to 1%, Chancellor Rachel Reeves has said.

However, the fiscal watchdog said that while growth has been downgraded for this year, it had been upgraded for every year after for the rest of this parliament – which is due to end in 2029.

The chancellor said she is “not satisfied with the numbers” for this year as she delivered her long-awaited spring statement in the House of Commons this afternoon.

Politics latest: Follow live updates

But, she explained, the OBR has forecast growth to hit 1.9% in 2026, 1.8% in 2027, 1.7% in 2028, and 1.8% in 2029.

She told MPs: “There are no shortcuts to economic growth. It will take long-term decisions. It will take hard yards. It will take time for the reforms we are introducing to be felt in the every day economy.

Please use Chrome browser for a more accessible video player

Rachel Reeves has confirmed that the OBR has downgraded the UK’s economic growth forecast for this year from 2% to 1%.

“It is right that the Office for Budget Responsibility consider the evidence and look carefully at measures before recognising a growth impact in their forecast.”

The chancellor pointed to changes to the National Planning Policy Framework, saying mandatory housing targets and bringing “grey belt” land into scope for development will “permanently increase the level of real GDP by 0.2% by 2029-30”.

This will bring an “additional £6.8bn in our economy and by 0.4% of GDP within the next 10 years”, she said.

Ms Reeves also highlighted reforms to the pension system and a national wealth fund, adding it was part of a “serious plan” for economic growth.

Also announced in the spring statement today:

  • The budget will move from a deficit of £36.1bn in 2025/26 and £13.4bn in 2026/27, to a surplus of £6bn in 2027/28, £7.1bn in 2028/29 and £9.9bn in 2029/30;
  • The Office for Budget Responsibility estimates Labour’s cuts to the welfare budget will save £4.8bn, with changes going further than initially thought;
  • Reeves says the health element of universal credit will be cut by half and frozen for new claimants;
  • There are no more tax rises today, but the chancellor claims she’ll raise an extra billion pounds by cracking down more on tax evasion;
  • Day-to-day spending will be protected, other than the aid budget, with spending increasing above inflation every year;
  • The defence budget will get a £2.2bn boost for next year, paving the way for spending eventually hitting 2.5% of GDP;
  • House building will hit a 40-year-high thanks to Labour’s planning reforms.

The chancellor confirmed that a voluntary redundancy scheme is set to launch for civil servants as part of her mission to “make government leaner”. She said this will deliver £3.5bn in “day-to-day savings by 2029-30”.

Please use Chrome browser for a more accessible video player

Sky’s Economics and Data Editor Ed Conway goes through the latest economic data following the chancellor’s spring statement.

Shortly afterwards, Conservative leader Kemi Badenoch accused Labour of financial “chaos”.

She said the spring statement was “all smoke and mirrors”, adding: “I remember the last budget when Rachel Reeves said she was smashing glass ceilings, now it feels like the roof is falling over all our heads.”

A handful of Labour MPs were unimpressed with the moves around welfare, with Debbie Abrahams – the MP for Oldham East and Saddleworth – claiming “all the evidence points to cuts in welfare leading to severe poverty and worsened health conditions”.

An impact assessment into Labour’s welfare reforms, which include narrowing the eligibility criteria for personal independence payments (PIP), found there could be an additional 250,000 people in “relative poverty” by 2030 due to the changes.

Richard Burgon, the Labour MP for Leeds East, said “taking away the personal independence payments” from disabled people is an “especially cruel choice”.

Continue Reading

UK

Heathrow bosses ‘warned about substation’ days before major power outage, MP committee hears

Published

on

By

Heathrow bosses 'warned about substation' days before major power outage, MP committee hears

Heathrow Airport bosses had been warned of a potential substation failures less than a week before a major power outage closed the airport for a day, a committee of MPs has heard.

The chief executive of Heathrow Airline Operators’ Committee Nigel Wicking told MPs of the Transport Committee he raised issues about resilience on 15 March after cable and wiring took out lights on a runway.

A fire at an electricity substation in west London meant the power supply was disrupted to Europe’s largest airport for a day – causing travel chaos for around 200,000 passengers.

“I’d actually warned Heathrow of concerns that we had with regard to the substations and my concern was resilience”, Mr Wicking said.

“So the first occasion was to team Heathrow director on the 15th of the month of March. And then I also spoke to the chief operating officer and chief customer officer two days before regarding this concern.

“And it was following a number of, a couple of incidents of, unfortunately, theft, of wire and cable around some of the power supply that on one of those occasions, took out the lights on the runway for a period of time. That obviously made me concerned.”

Mr Wicking also said he believed Heathrow’s Terminal 5 could have been ready to receive repatriation flights by “late morning” on the day of the closure, and that “there was opportunity also to get flights out”.

However, Heathrow chief executive Thomas Woldbye said keeping the airport open during last month’s power outage would have been “disastrous”.

There was a risk of having “literally tens of thousands of people stranded in the airport, where we have nowhere to put them”, Mr Woldbye said.

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

Please refresh the page for the fullest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest news.

Continue Reading

UK

Zhenhao Zou: More than 20 new potential victims come forward after ‘prolific’ rapist jailed for assaulting 10 women

Published

on

By

Zhenhao Zou: More than 20 new potential victims come forward after 'prolific' rapist jailed for assaulting 10 women

Another 23 female potential victims have reported that they may have been raped by Zhenhao Zou – the Chinese PhD student detectives believe may be one of the country’s most prolific sex offenders.

The Metropolitan Police launched an international appeal after Zou, 28, was convicted of drugging and raping 10 women following a trial at the Inner London Crown Court last month.

Detectives have not confirmed whether the 23 people who have come forward add to their estimates that more than 50 other women worldwide may have been targeted by the University College London student.

Metropolitan Police commander Kevin Southworth said: “We have victims reaching out to us from different parts of the globe.

“At the moment, the primary places where we believe offending may have occurred at this time appears to be both in England, here in London, and over in China.”

Metropolitan Police commander Kevin Southworth
Image:
Metropolitan Police commander Kevin Southworth

Zou lived in a student flat in Woburn Place, near Russell Square in central London, and later in a flat in the Uncle building in Churchyard Row in Elephant and Castle, south London.

Read more: How a student described as ‘smart and charming’ was unmasked as a prolific sexual predator

More on China

He had also been a student at Queen’s University Belfast, where he studied mechanical engineering from 2017 until 2019. Police say they have not had any reports from Belfast but added they were “open-minded about that”.

“Given how active and prolific Zou appears to have been with his awful offending, there is every prospect that he could have offended anywhere in the world,” Mr Southworth said.

“We wouldn’t want anyone to write off the fact they may have been a victim of his behaviour simply by virtue of the fact that you are from a certain place.

“The bottom line is, if you think you may have been affected by Zhenhao Zou or someone you know may have been, please don’t hold back. Please make contact with us.”

***ONLY USE IF HE IS CONVICTED OF AT LEAST TWO RAPES***It is feared Zou may have carried out dozens more sex crimes. Pic: Met Police
Image:
Pic: Met Police

Zou used hidden or handheld cameras to record his attacks, and kept the footage and often the women’s belongings as souvenirs.

He targeted young, Chinese women, inviting them to his flat for drinks or to study, before drugging and assaulting them.

Zou was convicted of 11 counts of rape, with two of the offences relating to one victim, as well as three counts of voyeurism, 10 counts of possession of an extreme pornographic image, one count of false imprisonment and three counts of possession of a controlled drug with intent to commit a sexual offence, namely butanediol.

Please use Chrome browser for a more accessible video player

Moment police arrest rapist student

Mr Southworth said: “Of those 10 victims, several were not identified so as we could be sure exactly where in the world they were, but their cases, nevertheless, were sufficient to see convictions at court.

“There were also, at the time, 50 videos that were identified of further potential female victims of Zhenhao Zou’s awful crimes.

“We are still working to identify all of those women in those videos.

“We have now, thankfully, had 23 victim survivors come forward through the appeal that we’ve conducted, some of whom may be identical with some of the females that we saw in those videos, some of whom may even turn out to be from the original indicted cases.”

Mr Southworth added: “Ultimately, now it’s the investigation team’s job to professionally pick our way through those individual pieces of evidence, those individual victims’ stories, to see if we can identify who may have been a victim, when and where, so then we can bring Zou to justice for the full extent of his crimes.”

Mr Southworth said more resources will be put into the investigation, and that detectives are looking to understand “what may have happened without wishing to revisit the trauma, but in a way that enables [the potential victims] to give evidence in the best possible way.”

The Metropolitan Police is appealing to anyone who thinks they may have been targeted by Zou to contact the force either by emailing survivors@met.police.uk, or via the major incident public portal on the force’s website.

Continue Reading

UK

Girl, 11, who went missing after entering River Thames named

Published

on

By

Girl, 11, who went missing after entering River Thames named

An 11-year-old girl who went missing after entering the River Thames has been named as Kaliyah Coa.

An “extensive search” has been carried out after the incident in east London at around 1.30pm on Monday.

Police said the child had been playing during a school inset day and entered the water near Barge House Causeway, North Woolwich.

A recovery mission is now said to be under way to find Kaliyah along the Thames, with the Metropolitan Police carrying out an extensive examination of the area.

Location of Barge House Causeway, North Woolwich, where 11-year-old girl Kaliyah Coa went into the River Thames on 31/03
Image:
Barge House Causeway is a concrete slope in North Woolwich leading into the Thames

Chief Superintendent Dan Card thanked members of the public and emergency teams who responded to “carry out a large-scale search during a highly pressurised and distressing time”.

He also confirmed drone technology and boats were being used to “conduct a thorough search over a wide area”.

He added: “Our specialist officers are supporting Kaliyah’s family through this deeply upsetting time and our thoughts go out to all those impacted by what has happened.”

More from UK

“Equally we appreciate this has affected the wider community who have been extremely supportive. You will see extra officers in the area during the coming days.”

Read more from Sky News:
What is Trump’s liberation day about?
Woman rescued 91 hours after quake
‘Exceptional’ codebreaker dies at 101

On Monday, Kerry Benadjaoud, a 62-year-old resident from the area, said she heard of the incident from her next-door neighbour, who “was outside doing her garden and there was two little kids running, and they said ‘my friend’s in the water'”.

When she arrived at the scene with a life ring, a man told her he had called the police, “but he said at the time he could see her hands going down”.

Barge House Causeway is a concrete slope that goes directly into the River Thames and is used to transport boats.

Residents pointed out that it appeared to be covered in moss and was slippery.

Continue Reading

Trending