Is chancellor’s spending review the start of a ‘national renewal’ – or too good to be true?

Published

24 hours ago

June 12, 2025

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If you sat through the entire spending review speech delivered by Rachel Reeves in the House of Commons, you might have been lulled into a sense that the UK was awash with a wealth of riches as the chancellor sprinkled billions across the land.

There were billions for social housing, nuclear power stations, rail lines and research and development to power the economy.

There was money for schools, the police, the NHS, and defence spending, as the chancellor sketched out her roadmap for Britain for years to come, with an acknowledgement that the government – and particularly this chancellor – had endured a difficult first year.

“We are renewing Britain. But I know that too many people in too many parts of our country are yet to feel it…the purpose of this spending review is to change that,” she said.

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There was £113bn of borrowing to fund capital investment and an extra £190bn over the course of the parliament for public services, fuelled by those contentious tax rises in the budget last autumn. This was a Labour chancellor turning her back on austerity.

“In place of decline, I choose investment. In place of retreat, I choose national renewal,” she said.

The chancellor deserves credit for the capital investment, which she hopes will unlock jobs and power economic growth. But when something sounds too good to be true, it normally is.

For me, former shadow chancellor John McDonnell hit the nail on the head on Wednesday night as he remarked rather wryly to me that “the greater the applause on the day, the greater the disappointment by the weekend”.

Could tax hikes be needed?

Because, in talking up the prospect of national renewal, the chancellor glossed over what the “hard choices” mean for all of us.

There are questions now swirling about where the cuts might fall in day-to-day budgets for those departments which are unprotected, with local government, the Home Office, the Foreign Office, and the Department for Environment all facing real-terms cuts.

My colleague Ed Conway, analysing the government figures, found cuts in the schools budget for the last two years of this parliament – the chancellor’s top line figure showed an overall rise of 0.6% over the five-year period of this Labour government.

There are questions too over whether council tax bills might be increased in order to top up local government and police budgets.

Ms Reeves told me in an interview after her speech that they won’t, but she has predicated increases in police funding and local government funding coming locally, rather than from central government, so I will be watching how that will play out.

Even with the increase in health spending – the NHS is getting a 3% boost in its annual budget – there are questions from health experts whether it will be enough for the government to hit a routine operations target of treating 92% of patients within 18 weeks.

My point is that this might not be – to again quote Mr McDonnell – “mathematical austerity”, but after over a decade where public dissatisfaction in public services has grown, the squeeze of day-to-day spending could make it hard for the chancellor to persuade working people this is a government delivering the change for them.

There is pressure to reverse some of the welfare cuts, and pressure to lift the two-child benefit cap, while the pressure to reverse the winter fuel allowance has already resulted in Reeves this week making a £1.25bn unfunded spending commitment (she will set out how she is paying for it at the next budget).

Will voters feel the ‘renewal’?

Reeves told me on Wednesday there was no need for tax rises in the autumn because the spending envelope had already been set, and the money now divvied out. It’s a very live question as to whether that can hold if the economy weakens.

She did not rule out further tax rises when I asked her last week, while Treasury minister Emma Reynolds told my colleague Ali Fortescue on Wednesday night: “I’m not ruling it in, I’m not ruling it out.”

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The gamble is that, by investing in infrastructure and getting spades in the ground, and tilting limited public money into the NHS, the government can arrive at the next election with enough ‘proof points’ to persuade voters to stick with them for another five years.

On Wednesday, the chancellor laid the foundations she hopes will turn the government’s fortunes around. The risk is that voters won’t feel the same by the time they are asked to choose.

UK

Air India confirms 241 dead after plane crash – with one Briton surviving

Published

3 hours ago

June 13, 2025

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Air India confirms 241 dead after plane crash - with one Briton surviving

Air India has confirmed that 241 people on board a flight to London Gatwick have died after the aircraft crashed shortly after take-off – with just one person surviving.

The Boeing 787-8 Dreamliner, which was carrying 53 Britons, crashed into a doctors’ hostel in a residential area moments after taking off from Ahmedabad airport, in western India.

India plane crash latest: Follow live updates

Air India has said 229 passengers and 12 crew died. Authorities have not confirmed how many people on the ground were killed or injured.

The airline said it “offers its deepest condolences to the families of the deceased”.

“Our efforts now are focused entirely on the needs of all those affected, their families and loved ones,” the statement continued.

The sole survivor is British man Vishwash Kumar Ramesh, who was travelling on the flight with his brother.

He told the Hindustan Times newspaper he heard a “loud noise” around 30 seconds after take-off before the Boeing 787-8 Dreamliner went down.

“It all happened so quickly,” he said, adding that he suffered “impact injuries” to his chest, eyes and feet. “When I got up, there were bodies all around me. I was scared. I stood up and ran.”

The passengers included 169 Indian nationals, 53 British nationals, seven Portuguese nationals and one Canadian national.

In a statement posted on Facebook, Gloucester Muslim Community said Akeel Nanabawa, his wife Hannaa and their four-year-old daughter Sara had died in the crash.

They said: “No words can truly ease the pain of such a profound loss, but we pray that the family may find solace in the tremendous outpouring of compassion and solidarity from communities across the world.”

Also on the flight were married couple Fiongal and Jamie Greenlaw-Meek from west London. They had posted a video from the airport on their Instagram feed shortly before boarding.

Videos show the aircraft, which departed from Ahmedabad to London Gatwick at 1.38pm local time, struggling to gain altitude in the seconds after taking off.

It then begins to descend and a fireball can be seen as the plane crashes, with massive plumes of thick black smoke rising into the sky.

Other images show the aircraft’s tail after it crashed into the roof of the BJ Medical College Hostel in the Meghaninagar area.

Tata Sons, which owns the airline, said it will give around £86,000 to the families of each person who died, cover the medical expenses of those injured, and provide support to rebuild the medical hostel.

Ahmedabad airport said the plane crashed “shortly after take-off, outside the airport”. Flights were suspended until shortly after 4pm local time.

In a statement, London Gatwick said the flight was due to land at 6.25pm UK time on Thursday and a reception centre for relatives of those on board was set up where information and support will be provided.

Flight tracking website Flightradar said a signal was last received from the aircraft less than a minute after take-off.

It is the first ever crash of a Boeing 787 Dreamliner, according to the Aviation Safety Network database.

The model, a widebody, twin-engine plane, has made five million journeys in the 14 years since its first passenger flight.

Sir Keir Starmer said the scenes emerging were “devastating”. He added: “Our hearts and our thoughts are absolutely with the friends and families of all of those affected.”

The prime minister said the British government is in “constant contact” with the Indian authorities and has dispatched an investigation team of its own.

The King said he and the Queen were “desperately shocked by the terrible events” in a post on X.

“Our special prayers and deepest possible sympathy are with the families and friends of all those affected by this appallingly tragic incident across so many nations, as they await news of their loved ones,” he said.

The foreign office said the UK is “working with local authorities in India to urgently establish the facts and provide support to those involved”.

British nationals who require consular assistance are advised to call 020 7008 5000, while Air India has set up hotlines to provide information on 1800 5691 444 for those calling within India and +91 806 2779 200 for foreign nationals.

India’s prime minister Narendra Modi said in a post on X: “The tragedy in Ahmedabad has stunned and saddened us.

“It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it.”

India’s worst aviation tragedy in decades

It’s the worst aviation tragedy the country has seen in decades, writes Sky News India correspondent Neville Lazarus.

The images of the aircraft plunging to the ground into a fireball and the horizon filled with black smoke will haunt the nation for a very long time.

Some 242 passengers, including children and 12 crew members, were on the ill-fated flight.

The aircraft, which lost altitude soon after take-off, crashed into residential quarters of BJ Medical College doctors in Ahmedabad’s Meghaninagar area.

Images of parts of the plane can be seen hanging precariously on the building of the hostel, having caused severe damage.

A large number of residents are feared dead in the speciality doctors’ buildings, which have 94 flats and about 200 people living in them.

The nation is in shock as bodies, some beyond recognition, are being brought into hospitals across the city. There are many injured and some in critical condition.

India’s civil aviation minister Ram Mohan Naidu Kinjarapu said he was “shocked and devastated” to learn about the crash.

“We are on highest alert,” he said. “I am personally monitoring the situation and have directed all aviation and emergency response agencies to take swift and coordinated action.

“Rescue teams have been mobilised, and all efforts are being made to ensure medical aid and relief support are being rushed to the site.”

Aviation expert Julian Bray told Sky News he understands the pilot managed to make a mayday call, meaning the crew was aware of a problem before the crash.

Air India was acquired by Tata Group from the Indian government in January 2022 after racking up billions of pounds of losses.

The group now operates more than 8,300 weekly flights on 312 routes, connecting more than 100 domestic and international destinations with a fleet of 300 aircraft.

The airline’s chairman Natarajan Chandrasekaran described the incident as a “tragic accident” and a “devastating event” and said emergency response teams were at the site.

“At this moment, our primary focus is on supporting all the affected people and their families,” he said.

“We are doing everything in our power to assist the emergency response teams at the site and to provide all necessary support and care to those impacted.”

A Boeing spokesperson said: “We are in contact with Air India regarding Flight 171 and stand ready to support them. Our thoughts are with the passengers, crew, first responders and all affected.”

UK

British crash survivor told family ‘I don’t know how I’m alive’ seconds after plane came down

Published

15 hours ago

June 12, 2025

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British crash survivor told family 'I don't know how I'm alive' seconds after plane came down

The British man who survived the Air India plane crash told his family “I don’t know how I’m alive” in a phone call seconds after the plane came down, his brother has told Sky News.

Vishwash Kumar Ramesh is the only passenger reported to have survived after Air India Flight 171 crashed into a building shortly after take-off in Ahmedabad, Gujarat on Thursday afternoon.

India plane crash – latest updates

Relatives confirmed they had spoken to him since the crash – but they have not been able to contact his brother who was also believed to be on board.

Speaking from Leicester, Mr Ramesh’s brother Nayan told Sky News’ Shamaan Freeman-Powell that their father was on the phone to Vishwash while the plane was still on the runway.

“My dad called him,” the 27 year old said. “And Vishwash said ‘oh we’re going to take off soon.”

Two minutes later, their father received a video call from Mr Ramesh to say the plane had crashed and he had survived.

“He video called my dad as he crashed and said ‘Oh the plane’s crashed. I don’t know where my brother is. I don’t see any other passengers. I don’t know how I’m alive – how I exited the plane’,” Nayan said.

Vidhi Chaudhary, a senior police officer in Ahmedabad, said Mr Ramesh was “near the emergency exit” and “managed to escape by jumping out the emergency door”.

Mr Ramesh earlier told the Hindustan Times that he heard a “loud noise” around 30 seconds after take-off – and before the plane went down.

“It all happened so quickly,” he told the newspaper, adding he had received “impact injuries” to his chest, eyes and feet.

“When I got up, there were bodies all around me. I was scared. I stood up and ran. There were pieces of the plane all around me.

“Someone grabbed hold of me and put me in an ambulance and brought me to the hospital.”

Sky News India correspondent Neville Lazarus spoke to Mr Ramesh in hospital and he said he was “okay”.

I spoke to survivor in hospital

Vishwash Kumar Ramesh was conscious, half sitting on his bed in blue hospital scrubs when I walked into the ward. He had bruises on his hands and face and was speaking to an attendant and some plain clothes police men.

I introduced myself and asked how he was. He acknowledged with a nod and said he was ok. By then the police and the hospital administrators stopped me going any further and ushered me out of the ward.

Dr Shariq told me he was the first to attend to Mr Ramesh when the ambulance brought him to the trauma centre.

“He was alright, had few cuts on his hands and face. There was nothing majorly wrong at all. He limped a bit. But he was mentally shaken up.”

Conscious and alert is how he described his condition.

A thorough check-up was done and he was shifted to the special ward.

A miracle survivor is what everyone is calling him here. And that he is. Surviving a crash of that magnitude is nothing short of a miracle.

Outside his ward and across is the mortuary where dozens of relatives and friends have gathered to identify their loved ones. Wails and cries break out every time an ambulance arrives.

The process of identifying bodies is taking place with DNA matching from relatives.

One hospital staff member told me “some are charred beyond recognition and it’s really bad.”

‘Miracle’ he escaped

Nayan Kumar Ramesh said he was supposed to be collecting his brother from Gatwick Airport on Thursday and the whole family planned to come together for a gathering this weekend.

“I’ve got no words to describe it,” he said. “It’s a miracle that he survived – but what about the other miracle for my other brother.”

Asked how he and his relatives were feeling, he replied: “Devastated. I’m scared to fly now – to even sit on a plane.”

Footage shared widely on social media showed Mr Ramesh limping away from the crash site and being led towards emergency services.

He told Indian media he has lived in London for 20 years. According to the Hindustan Times report, Mr Ramesh is 40 – but official flight documents list his age as 38.

He told the newspaper his brother was sitting in a different row on the plane. “We visited Diu. He was travelling with me and I can’t find him anymore. Please help me find him.”

Three Britons dead

Three Britons have been confirmed to have died in the crash – all members of the same family.

Akeel Nanabawa, his wife Hannaa, and their four-year-old daughter Sara were among those who perished on the plane, Gloucester Muslim Community said on Facebook.

The aircraft departed Ahmedabad for London Gatwick at 1.38pm local time on Thursday, carrying 242 passengers and crew members.

They included 169 Indian nationals, 53 British nationals, seven Portuguese nationals and one Canadian national, the airline said.

According to tracking website Flightradar, a signal was last received from the plane less than a minute after it took off.

It then crashed into a medical school’s residential quarters in Meghaninagar, Ahmedabad, the largest city in Gujarat state.

In a statement, London Gatwick said the flight was due to land at 6.25pm UK time on Thursday and a reception centre for relatives of those on board is being set up where information and support will be provided.

The UK Foreign Office said it is “working with local authorities in India to urgently establish the facts and provide support to those involved”.

British nationals who require consular assistance are advised to call 020 7008 5000, while Air India has set up hotlines to provide information on +91 806 2779 200 for foreign nationals or 1800 5691 444 if calling from India.

Initially, an Ahmedabad city police commissioner claimed there appeared to be no survivors.

The local police chief later said that at least 204 bodies had been recovered from the crash site, according to Reuters.

Thursday’s is the first crash of a Boeing 787 Dreamliner in its history, according to the Aviation Safety Network database.

The model, a widebody, twin-engine plane, has made five million journeys in the 14 years since its first passenger flight.

Meanwhile, India’s prime minister Narendra Modi offered his condolences in a post on X.

“The tragedy in Ahmedabad has stunned and saddened us,” he wrote. “It is heartbreaking beyond words. In this sad hour, my thoughts are with everyone affected by it.”

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UK

Thousands of Poundland jobs at risk as shops to close after company sold

Published

21 hours ago

June 12, 2025

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Thousands of Poundland jobs at risk as shops to close after company sold

Thousands of jobs are at risk after discount high street chain Poundland was sold – with dozens of shops expected to shut.

Poundland has been sold for a headline figure of €1 to investment firm and former Laura Ashley owners Gordon Brothers, confirming Sky News reporting.

Its previous owners, the Poland-based Pepco Group, however, are to be repaid tens of millions of pounds as part of the sale.

Poundland employs roughly 16,000 people across an estate of over 800 shops in the UK and Ireland.

Around 100 stores are expected to close, and rent reviews are also expected to be negotiated with Poundland landlords.

The chain, known for selling products for £1, was put on the market earlier this year after a downturn in trading. Employers’ tax hikes announced by Chancellor Rachel Reeves in the November budget increased the financial pressure on high street retailers.

As part of the deal, a restructuring plan requiring High Court approval will take place. Details of that restructuring will be communicated in “due course”, owners Pepco said.

It will retain a minority stake in Poundland.

Pepco said the deal would help it shift away from food and drinks, improve its revenue growth and boost its profitability

Stephan Borchert, Pepco Group’s chief executive, said: “This transaction will strongly support our accelerated value creation programme by simplifying the group and focusing on our successful Pepco business.

“Poundland remains a key player in UK discount retail, with millions of customers annually and a well-loved brand and proposition.”