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Chancellor Jeremy Hunt has tempered expectations of tax cuts in Wednesday’s budget as he announced an £800m package of technology reforms designed to free up time for frontline public sector workers.

As part of Treasury reforms, police will use drones to assess incidents such as traffic collisions and artificial intelligence will be deployed to cut MRI scan times by a third.

The department said the changes have the potential to deliver £1.8bn worth of benefits to public sector productivity by 2029.

Follow latest: PM rails against ‘extremist forces’

In a statement, the chancellor said: “We shouldn’t fall into the trap of thinking more spending buys us better public services.

“There is too much waste in the system and we want public servants to get back to doing what matters most: teaching our children, keeping us safe and treating us when we’re sick.

“That’s why our plan is about reaping the rewards of productivity, from faster access to MRIs for patients to hundreds of thousands of police hours freed up to attend burglaries or incidents of domestic abuse.”

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Darren Jones, Labour’s shadow chief secretary to the Treasury, said the announcement amounted to “spin without substance”.

Read more: What to expect from this week’s budget – from tax cuts to vaping

Meanwhile, Mr Hunt told The Sunday Telegraph that he “won’t take any risks” after previous speculation he may cut income tax.

The newspaper said the chancellor is due to meet Prime Minister Rishi Sunak on Sunday evening to make a final decision on whether a 2p cut is affordable.

Mr Hunt said that bringing down the current tax burden is a “long path” and that the financial forecasts setting out how much so-called “headroom” he has to meet his fiscal rules had “gone against us”.

Pic: PA
Prime Minister Rishi Sunak (left) and Chancellor of the Exchequer Jeremy Hunt in East Yorkshire. Picture date: Monday February 26, 2024.
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Rishi Sunak and Jeremy Hunt last year. Pic: PA

According to The Sunday Times, the Office for Budget Responsibility told the chancellor on Wednesday that he has £12.8bn of headroom to play with – more than £2bn less than the figure the Treasury is said to have previously been basing its calculations on.

Mr Hunt is under pressure to deliver tax cuts in what could be the last economic set piece from the Conservative government before the next general election.

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Why don’t we know when the UK election is?

The tax burden is reaching record levels, with it expected to rise to its highest point since the Second World War before the end of this decade as the country looks to pay back heavy borrowing used for support during COVID-19 and the energy spike in the aftermath of Russia’s invasion of Ukraine.

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No 10 and No 11 are said to be weighing up if it is possible to administer such a cut or whether to reduce national insurance contributions further, having sliced it by two percentage points in the autumn statement.

The cut in November did not reduce taxation for pensioners – a key voter demographic for the Tories – as they do not pay national insurance.

Mr Hunt is said to be preparing to raise £300m by changing the preferential tax regime for holiday lets in the budget.

Another £500m may be raised by introducing a levy on vapes.

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What public finance figures mean for the budget

He also is thought to be considering abolishing the non-dom status as a potential way of raising revenue.

Non-domiciled status allows foreign nationals who live in the UK, but are officially domiciled overseas, to avoid paying UK tax on their overseas income or capital gains.

Mr Sunak’s wife Akshata Murty has previously enjoyed non-dom status.

Watch Jeremy Hunt appear on Sunday Morning With Trevor Phillips on Sky News from 8.30am.

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Remembrance Sunday commemorations in pictures – as King leads event at Cenotaph in Whitehall

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Remembrance Sunday commemorations in pictures - as King leads event at Cenotaph in Whitehall

The King led the nation’s Remembrance Sunday commemorations as he laid a wreath at the Cenotaph during a two-minute silence.

Charles, who is still receiving cancer treatment, paid his respects without the Queen, who did not attend events in central London due to a chest infection.

He appeared alongside his son Prince William and daughter-in-law, Kate, Princess of Wales, who carried out two consecutive public engagements for the first time this year after her cancer treatment ended.

Sunday was the King’s third Remembrance service as monarch.

King Charles at the Cenotaph on Sunday. Pic: PA
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King Charles at the Cenotaph on Sunday. Pic: PA

King Charles waits to lay his wreath. Pic: PA
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The King waits to lay his wreath. Pic: PA

Catherine, Princess of Wales on the balcony. Pic: PA
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Catherine, Princess of Wales on the balcony. Pic: PA

The Prince of Wales during the Remembrance Sunday service. Pic: PA
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The Prince of Wales during the Remembrance Sunday service. Pic: PA

The Princess of Wales (left) and the Duchess of Edinburgh watch from the balcony. Pic: PA
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The Princess of Wales (left) and the Duchess of Edinburgh watch from the balcony. Pic: PA

Members of the Royal Family stand before the Cenotaph. Pic: PA
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Members of the Royal Family stand before the Cenotaph. Pic: PA

The Royal British Legion’s veteran parade along Whitehall featured 10,000 veterans from 326 different armed forces and civil organisations.

Similar memorial events took place in Edinburgh, Cardiff, and Belfast, as well as smaller towns and cities.

Politicians from the four nations laid wreaths in capital cities, while veterans and their families also gathered for events in Portsmouth, the home of this year’s D-Day anniversary commemorations, and the National Memorial Arboretum in Staffordshire.

Military veterans during a minute of silence during a Remembrance Sunday service in Guildhall Square, Portsmouth.
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Veterans in Portsmouth on Sunday. Pic: PA

People gather at the National Memorial Arboretum in Alrewas, Staffordshire. Pic: PA
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People gather at the National Memorial Arboretum in Alrewas, Staffordshire. Pic: PA

Thousand of people, including Prime Minister Sir Keir Starmer and eight of his predecessors, watched as the nation fell silent at 11am.

Among the former leaders were Rishi Sunak, Liz Truss, Boris Johnson, Theresa May, Lord David Cameron, Gordon Brown, Sir Tony Blair, and Sir John Major.

Kemi Badenoch, the new Conservative Party leader, also laid a wreath alongside the prime minister.

Sir Keir Starmer and Kemi Badenoch lay wreaths on Sunday. Pic: PA
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Sir Keir Starmer and Kemi Badenoch lay wreaths on Sunday. Pic: PA

Sir David Cameron, Gordon Brown, Sir Tony Blair, and Sir John Major. Pic: PA
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Lord David Cameron, Gordon Brown, Sir Tony Blair, and Sir John Major. Pic: PA

On Saturday evening, the Prince and Princess of Wales attended the Festival of Remembrance at the Royal Albert Hall, along with the King.

Hours beforehand, Buckingham Palace announced Queen Camilla would not be attending either of the Remembrance events. It is understood there is no cause for concern but that doctors did not want to hinder her recovery or put anyone else at risk.

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Princess of Wales at Remembrance Sunday

Members of the RAF Pipes and Drums band in Edinburgh. Pic: PA
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Members of the RAF Pipes and Drums band in Edinburgh. Pic: PA

First Minister Michelle ONeill lays a wreath at Belfast City Hall. Pic: PA
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First Minister Michelle ONeill lays a wreath at Belfast City Hall. Pic: PA

This year marks the 80th anniversary of the D-Day landings of the Second World War and the 25th anniversary of the end of the war in Kosovo.

It also marks the 75th anniversary of NATO and the 120th anniversary of the Entente Cordiale between the UK and France.

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UK is ready to fight a war but will need to be stronger in future, head of armed forces warns

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UK is ready to fight a war but will need to be stronger in future, head of armed forces warns

The UK is ready to fight a war, the head of the armed forces has insisted, after the defence secretary recently suggested the military is not prepared for a conflict.

Admiral Sir Tony Radakin also stressed the importance of continuing to back Ukraine when asked about the potential impact of the re-election of Donald Trump on Russia’s war.

He said more than 1,500 Russian troops had been killed or injured in the warzone every day during October. That equates to more than 46,000 people – equivalent to more than half of the British Army.

The Chief of the Defence Staff used the Russian casualty figure to underline the cost to Vladimir Putin of his invasion, but analysts say the Kremlin has proven itself more than capable of absorbing high attrition rates without changing its war aims.

Admiral Sir Tony Radakin in the gardens of Buckingham Place , following the coronation of King Charles III and Queen Camilla, in London, Saturday, May 6, 2023. (Andrew Milligan/Pool via AP)
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Admiral Sir Tony Radakin 2023. Pic: Andrew Milligan/Pool via AP

Admiral Radakin was speaking in an interview on Sunday Morning With Trevor Phillips to mark Remembrance Sunday.

Asked if the UK could fight a war at scale, he said: “Absolutely. So our servicemen and women will always be ready to serve their nation and to do as the government of the day directs us to do.”

Last month, however, John Healey, the new Labour defence secretary, told a Politico podcast that the armed forces were not ready to fight after being hollowed out and under-funded during 14 years of Conservative rule.

In reality, the hollowing out and under-funding also took place under the previous Labour government.

John Healey joins serving military personnel to hand out poppies and collect donations for the Royal British Legion Appeal at Victoria Station.
Pic: PA
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John Healey joined serving military personnel to hand out poppies at Victoria Station in October. Pic: PA

Pressed by Trevor Phillips on whether the army, Royal Navy and Royal Air Force had the capabilities to fight a war, Admiral Radakin said: “We do have the capabilities. And then the reassurance is that we do that alongside our allies.

“And for those biggest fights, then we will always do them with our allies.”

He conceded, though, that the UK needs to be “even stronger in the future”.

Admiral Radakin added: “Some of that is about having deeper stockpiles. Some of that is being better at bringing technology and learning the lessons from Ukraine… And some of that is also recognising that you need to have a defence industry that can better support those demands.

“We’re in a more dangerous world.”

Members of the 24th Separate Mechanized Brigade named after King Danylo attend military exercises in Donetsk.
Pic: King Danylo Separate Mechanized Brigade/Reuters
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Ukrainian troops continue to fight Russia’s invasion. Pic: King Danylo Separate Mechanized Brigade/Reuters

Rescuers work at a site of a regional oncology hospital hit by a Russian air strike, amid Russia's attack on Ukraine, in Zaporizhzhia, Ukraine November 7, 2024. REUTERS/Stringer
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Russian airstrikes are still targeting Ukrainian cities. Pic: Reuters

The top commander repeatedly stressed the importance of being part of NATO to be able to counter the biggest threats faced by the UK.

But the re-election of Donald Trump to the White House has raised new concerns about US support for the transatlantic alliance. The United States is by far its most powerful member.

Pic: AP
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Pic: AP

The president-elect threatened to quit NATO when he was US commander-in-chief the first time around, and he has repeatedly berated member states that do not meet a minimum spending commitment of 2% of national income.

Mr Trump is also expected to take a different approach to the war in Ukraine to Joe Biden, saying he will end the fighting – but without yet explaining how.

Ukrainian servicemen prepare to fire at Russian positions from a US-supplied M777 howitzer in Kharkiv region, Ukraine. File pic: AP
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Ukrainian servicemen prepare to fire at Russian positions from a US-supplied M777 howitzer in Kharkiv region. File pic: AP

A Russian drone attack on the Ukrainian city of Odesa has killed one person and injured 13 others.
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The aftermath of a Russian strike on Ukraine. Pic: AP

Trevor Phillips asked Admiral Radakin how confident he was that the United States would continue to stand “shoulder to shoulder” with Ukraine.

The defence chief declined to speculate on potential US policy so soon after the election.

Instead, he said: “What you’re seeing is a Russia that is making tactical gains and is seizing more territory, but is doing that at enormous cost, enormous cost in terms of its soldiers – over 1,500 people a day are either killed or wounded in October.”

Read more from Deborah Haynes:
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How Israel’s retaliatory strike against Iran unfolded
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Admiral Radakin also pointed out how the war prompted NATO to grow, with Finland and Sweden joining.

“At the strategic level, Russia is losing,” he said.

“Russia wanted to subjugate Ukraine. It’s never going to subjugate Ukraine.

“And that’s what we should be really clear about – that we continue our support for President Zelenskyy and his people in their existential fight.”

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‘Renegade’ UK could be spared from Donald Trump’s tariffs, US governor says

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'Renegade' UK could be spared from Donald Trump's tariffs, US governor says

The UK could be spared the impact of Donald Trump’s proposed trade tariff increases on foreign imports, a US governor has told Sky News.

In the aftermath of the Republican candidate’s decisive election win over Kamala Harris this week, attention is turning to what the former president will do on his return to the White House.

Mr Trump has said he wants to raise tariffs – taxes on imported products – on goods from around the world by 10%, rising to 60% on goods from China, as part of his plan to protect US industries.

But there are fears in foreign capitals about what this could do to their economies. Goldman Sachs has downgraded its forecast for the UK’s economic growth next year from 1.6% to 1.4%, while EU officials are anticipating a reduction in exports to the US of €150bn (£125bn).

Donald Trump
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Donald Trump says he wants to impose tariffs on foreign goods

However, New Jersey governor Phil Murphy – a Democrat – says he believes Mr Trump may consider not including the UK in the tariff plans.

Speaking on Sunday Morning with Trevor Phillips, the governor said he cannot speak for the president-elect but he has a “good relationship” with him.

His gut feeling is that Mr Trump will not impose tariffs on goods from allies like the UK. “But if I’m China, I’m fastening my seatbelt right now,” he said.

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Mr Murphy said that Mr Trump may look favourably at the UK after its departure from the European Union.

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The president-elect is considering offering the UK a special deal that would exempt British exports from billions of pounds of tariffs, according to The Telegraph.

“Donald Trump (has) some sympathy with the renegade who has courage,” Mr Murphy continued. “I think there’s some of that. I think that’s a card that can be played. We’ll see.”

Asked about whether UK Prime Minister Sir Keir Starmer can build a rapport with the incoming president, Mr Murphy said: “I’ve been able to find common ground with President Trump, and I’m a proud progressive, although I’m a cold-blooded capitalist, which is probably the part of me that President Trump resonates with.”

Chancellor Rachel Reeves has said she is “confident” trade flows with the United States will continue despite the tariff proposal.

Will Brexit help UK in Trump trade talks?


Jon Craig - Chief political correspondent

Jon Craig

Chief political correspondent

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Could Brexit help Sir Keir Starmer and the UK government in trade negotiations with President Trump – who calls himself “tariff man” – and the US?

The suggestion – ironic, given the PM’s hostility to Brexit and his pledge for a “reset” with the EU – has been made by a Trump ally and confidant, albeit a leading Democrat.

The claim comes from Phil Murphy, governor of New Jersey, in an interview for Sunday Morning with Trevor Phillips on Sky News.

Murphy says he has a good relationship with Trump, who has a palatial home he calls the Summer White House, a 500-acre estate and a golf club at Bedminster, New Jersey, just 45 minutes from Trump Tower in New York.

He says his “gut feeling” is that Trump has sympathy with the UK for having the courage to pull out of the EU, “this big bureaucratic blob” and “that’s a card that can be played” by the UK in trade talks.

Really? As Trevor politely pointed out, that might benefit the UK if the prime minister was Nigel Farage rather than Sir Keir.

Mr Farage, however, speaking at a Reform UK regional conference in Exeter, described Trump as a “pro-British American president” who’d give the UK “potentially huge opportunities”.

But there’s one problem, according to the Reform UK leader. Favours from Trump will only come, he claims, “if we can overcome the difficulties that the whole of the cabinet have been rude about him”.

You can watch the full interview with Governor Phil Murphy as well as other guests on Sunday Morning with Trevor Phillips from 8.30am.

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