Mayors to score wins in the budget after PM intervenes – but fears remain over councils facing bankruptcy

Published

8 months ago

October 27, 2024

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Mayors are set to be one of the big winners in the budget after Sir Keir Starmer personally intervened to ensure they have more freedom to spend cash and boost growth, Sky News understands.

England’s dozen metro mayors have been working together to push the prime minister, Rachel Reeves and Angela Rayner for more powers and cash after years of frustration at the way the Treasury allocates money for projects and salaries.

But there is deep concern that Ms Reeves, the chancellor, may only allocate money to some key areas but not others.

There is agreement among all the mayors who spoke to Sky News that the squeeze on local government budgets – which metro mayors work alongside – will cause further councils to go bankrupt and hamper their ability to regenerate their local regions.

In the budget on Wednesday mayors believe they will get:

A so-called “single pot” of money allowing them much greater freedom to allocate funds where they deem most necessary;
Greater flexibility to raise local taxes. In Liverpool City Region, metro mayor Steve Rotherham is pushing a “tourist tax” of £1 per night on the city’s hotels to fund local tourist projects. There are hopes among some mayors they will get more flexibility in the way they can spend locally raised taxes, known as precepts;
Multi-year budget settlements to allow for longer-term planning.
The mayors are pushing for more powers in a range of areas from transport, where they are hopeful of some success, to skills, where they see the Department for Education reluctant to release their grip.

Sky News understands that Sir Keir has repeatedly said in meetings that he believes metro mayors, who have planning powers and work with clusters of local authorities, must be put at the heart of the push for growth across England.

‘Massively frustrating’ Treasury

Liverpool City Mayor Mr Rotherham told Sky News that he has been told that mayors “can become the delivery arm of national government” across a whole range of projects, including retrofitting homes, improving transport and productivity and skills.

However, several mayors who spoke to Sky News sounded a warning that they need to break free from the Treasury’s way of deciding what should get funded if growth is as big a priority as the government says.

Mr Rotherham said the Treasury has been “massively frustrating to date” and “we are pushing to see changes.”

He called for urgent reform to the Treasury manual for evaluating the value for money of big projects – known as the Treasury Green Book.

He claimed that this way of measuring value is biased against more long-term projects, making true reform impossible.

Councils ‘on the brink of bankruptcy’

Meanwhile, Ben Houchen, the Conservative mayor of Teesside, said: “The Treasury is a very difficult department to deal with.

“The officials, I think, have a very narrow view – they know the cost of everything and the value of nothing.”

He warned the chancellor that if, as expected, she announces lots of big infrastructure and growth projects on Wednesday but also squeezes on the day-to-day running costs of government, then the initiatives unveiled next week may never happen.

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“If you allocate money for big projects like train stations or roads, or whatever it might be, big infrastructure – that’s one thing,” he said.

“But to deliver that, you’ve got to have the day-to-day spending to employ people, get through planning – all of that stuff in the background that takes money, revenue, day-to-day spending.

“So allocating a big cheque is one thing. That doesn’t necessarily mean that we’re going to see those projects come into fruition if the money isn’t there to develop those projects in the first place.”

Mr Houchen said local councils in the Tees Valley were in a bad financial situation.

“You’ve got local councils, which is what most people interact with on a daily basis, in a very difficult situation.

“The quality and experience of the staff aren’t there. Money is extremely tight.

“Things like adult and children social services in Tees Valley for instance usually accounts for about 80% of a council’s entire budget, just on adult and children’s social services. So it’s in a very difficult state. I’m acutely aware, not just across the Tees Valley but across the country, there are lots of councils on the brink of bankruptcy.

“You’ve seen a couple of those already under the previous government. Without more revenue funding and funding for the types of departments like local government, that’s not going to change that outcome, and we could still see loads of capital spending, but we could still see governments going bust, services not improving and actually continuing to deteriorate.”

If councils fail, communities ‘fall over’

Richard Parker, the new Labour mayor of the West Midlands, also agreed funding was squeezed for councils.

“Birmingham has lost £1bn worth of funding over the last 10 years… that’s been taken out of some of the poorest and most vulnerable communities, and it’s made those communities even more vulnerable.

“And I can’t afford our councils to fail because if our councils fail, the communities they support fall over.

“So I understand the criticality of the situation.

“I’m hoping the government will start, as they’ve been saying, to make longer plans for funding for local government, so they get an opportunity to plan ahead and plan for the future rather than working to short-term budgetary cycles of a year.”

Mr Parker made clear that getting more powers over skills – which some other mayors think unlikely at the moment – will be a key driver for growth.

‘Too many people in low-paid jobs’

“I actually then need some revenue support, some more powers over particularly post-16 education,” he said.

“We’ve got around a quarter of the workforce in the West Midlands with low skills in those skills, which means that too many people in work are in low-paid jobs.

“And I’ve got twice as many young people out of work than the national average.

“So I’ve got to help these people get access to the skills they need to build careers here and get access to better-paid jobs and indeed the jobs that investors need to fill who are coming into this region.”

Education Secretary Bridget Phillipson, deputy leader of Reform UK Richard Tice, former governor of the Bank of England Mervyn King, and director of the Institute for Fiscal Studies Paul Johnson will be on the Sunday Morning with Trevor Phillips show on Sky News from 8.30am this morning.

UK

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

Published

4 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

16 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.”

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

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UK

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

Published

22 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.”