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.
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.”
More on Budget
Related Topics:
Darren Jones, Labour’s shadow chief secretary to the Treasury, said the announcement amounted to “spin without substance”.
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”.
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.
Please use Chrome browser for a more accessible video player
0:59
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.
Spreaker
This content is provided by Spreaker, which may be using cookies and other technologies.
To show you this content, we need your permission to use cookies.
You can use the buttons below to amend your preferences to enable Spreaker cookies or to allow those cookies just once.
You can change your settings at any time via the Privacy Options.
Unfortunately we have been unable to verify if you have consented to Spreaker cookies.
To view this content you can use the button below to allow Spreaker cookies for this session only.
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.
Please use Chrome browser for a more accessible video player
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.
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.
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.
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.
Advertisement
Kemi Badenoch, the new Conservative Party leader, also laid a wreath alongside the prime minister.
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.
Please use Chrome browser for a more accessible video player
0:44
Princess of Wales at Remembrance Sunday
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.
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.
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.
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.
Advertisement
“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.”
The top commander repeatedly stressed the importance of being part of NATO to be able to counter the biggest threats faced by the UK.
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.
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.”
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).
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.
More from US
Mr Murphy said that Mr Trump may look favourably at the UK after its departure from the European Union.
Follow Sky News on WhatsApp
Keep up with all the latest news from the UK and around the world by following Sky News
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.”
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.