Devolved nations demand urgent meeting with chancellor as Tory top team doubles down on plan to cut spending
The devolved governments of the UK want an urgent meeting with Chancellor Kwasi Kwarteng to discuss immediate action to reverse the damaging effects of the mini-budget.
In a joint letter, the finance ministers of Wales, Scotland and Northern Ireland are warning that the government’s spending plans are a “huge gamble” that will mean another decade of austerity.
It comes as one of Liz Truss‘s closest political allies doubled down on the government’s economic policy, with warnings that major cuts in public spending are to come.
Levelling Up Secretary Simon Clarke, who is among the prime minister’s inner circle, told The Times that the British people need to expect significant cuts in public spending, because for too long the West has been living in a “fool’s paradise”.
Following on from Chancellor Kwasi Kwarteng‘s tax-cutting mini-budget, he said the government needs to make sure the “extremely large” state is in “full alignment with a lower tax economy”.
It has led to fears another period of austerity is just around the corner, with the hardest hit likely to be those reliant on welfare.
In their letter to Mr Kwarteng, Welsh Finance Minister Rebecca Evans joined finance ministers from Scotland and Northern Ireland in highlighting the profound impact of “the largest set of unfunded tax cuts for the rich in over 50 years” stating it was “a huge gamble on public finances and the health of our economy”
They warned against being condemned to another decade of austerity and expressed deep concern over reports that UK government departments would be asked to make spending cuts to balance the budget, which may have profound consequences for devolved budget settlements already eroded by inflation.
But Mr Clarke told The Times: “Western Europe is just living in a fool’s paradise whereby we can be ever less productive relative to our peers, and yet still enjoy a very large welfare state and persist in thinking that the two are somehow compatible over the medium to long term.
“They’re not. We need to address that… if we want those strong public services then we are going to have to pay for them.
“It is important that we look at a state which is extremely large, and look at how we can make sure that it is in full alignment with a lower tax economy.”
It comes on the eve of the Conservative Party conference and the chancellor defending his mini-budget by saying the government “had no other choice” than to do “something different” to spark the economy.
The mini-budget resulted in a tumultuous week which saw the pound fall to an all-time low against the dollar and the Bank of England being forced to spend billions to prevent a collapse of the pensions industry.
‘What the Thatcher government was doing in the 1980s’
Mr Clarke admitted it had been an “uncomfortable week” and defended Ms Truss, but said she would not be deflected from policies they predicted would be unpopular, and suggested her task was analogous to that faced by Margaret Thatcher in the 1980s.
“If I was to describe one word for Liz… it is purposeful,” he said. “She knew – and this was certainly something we discussed during the summer – that this would not be a comfortable process.
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PM acknowledges ‘some disruption’ to UK economy following mini-budget
“[She knew] particularly early on, there would be real potential unpopularity to be courted in seeking to say things and do things which weren’t going to be easy or quick wins. Frankly, she is doing what she believes is right.
“In some ways, there is an analogy with the 1980s and what the Thatcher government was seeking to do in terms of a reset moment where you fundamentally revisit how not just the previous government but multiple governments.”
‘We intend to be extremely rigorous’
Wales Secretary Sir Robert Buckland told Sky News that, while the government would work within its existing three-year spending review package, families could expect to find out what ministers are planning in the next few weeks.
Mr Buckland said he hopes the government’s upcoming announcements will be seen by the market as displaying “fiscal discipline”.
He appeared to confirm what Mr Clarke was suggesting when he said: “We intend to be extremely rigorous when it comes to bearing down on public expenditure.
“That will be developed in the weeks ahead. We’ve got a whole range of announcements coming out on not just spending, but supply-side reforms.
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Chair of OBR Richard Hughes says chancellor will be updated on Friday
“Whether it’s childcare… or… broadband connectivity, all these things add up to an overall package that is designed to, first of all, facilitate growth in the economy, but secondly to emphasise that the government is responsible.”
‘We had to do something different’
Overnight, Mr Kwarteng said the public expected public spending to be tightly controlled.
He wrote in The Daily Telegraph: “The British taxpayer expects their government to work as efficiently and effectively as possible, and we will deliver on that expectation.
“Not all the measures we announced last week will be universally popular. But we had to do something different. We had no other choice.”
The chancellor insisted he would produce a “credible plan” to get public finances on track with a “commitment to spending discipline”.
On Friday night, Ms Truss acknowledged for the first time that “there has been disruption” to the UK economy following last week’s mini-budget.
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‘Liz Truss is a danger to the economy’ says Starmer
Asked on Friday whether she accepted this was a crisis of the government’s own making, the prime minister said: “It was very, very important that we took urgent steps to deal with the costs that families are facing this winter, putting in place the energy price guarantee for which we’ve had to borrow to cover the cost… but also making sure that we are not raising taxes at a time where there are global economic forces caused by the war in Ukraine that we need to deal with.
“I recognise there has been disruption. But it was really, really important that we were able to get help to families as soon as possible.”
Nick Thomas-Symonds, shadow international trade secretary, told Sky News on Saturday: “This is a Tory crisis, made in Downing Street… They’ve crashed the economy by handing out enormous unfunded tax cuts to the very wealthiest people, and it’s going to be working people across the country that pay the price for this.
“They’ve also trashed our international reputation… and… what the government has done is going to lead to economic pain for people that they have chosen… What the government needs to do is recall Parliament and withdraw this budget.”
Truss and Kwarteng met top officials from Britain’s Office for Budget Responsibility (OBR) on Friday.
Mr Kwarteng intends to publish an updated set of economic forecasts from the Office for Budget Responsibility (OBR) and a medium-term fiscal plan setting out how he plans to bring down government debt on 23 November.
UK
Family of man who committed murder after escaping from mental health unit say they were ‘failed’ by NHS trust
The family of a man who committed murder during an escape from a secure mental health unit have told Sky News they were “failed” by the trust that was meant to be caring for him.
Joshua Carroll is currently waiting to be sentenced for the murder of Headley Thomas, known as Barry, after beating him to death in a park in Trafford, Manchester, in September 2022.
At the time of the attack, Joshua was in the care of Greater Manchester Mental Health Trust (GMMH). He was being treated as an inpatient at Park House, a unit which has now closed down.
Joshua’s mum and sister say he escaped from the unit 21 times – and they repeatedly complained to the trust and asked for help.
Headley Thomas, who was known as Barry
Leanne Carroll, Joshua’s sister, told Sky News: “The night it happened, Joshua had come to my house. And it was just a normal ‘oh Joshua has escaped from hospital again’. Nothing appeared any different.”
She says they didn’t find out about what had happened until Joshua was arrested weeks later – and “everything fell apart from there”.
Julie and Leanne Carroll
“My heart broke,” said Joshua’s mum, Julie Carroll. “It’s just a horrible, horrible situation.”
Joshua had been diagnosed with conditions including schizoaffective disorder, and had been in and out of inpatient care for around 15 years, his family said.
They showed me more than 20 pages of complaints and responses from GMMH about his repeated escapes, dating back eight years before the murder.
After Joshua’s fourth escape from Park House, his family asked for him to be moved to another unit, saying they were concerned about security.
This didn’t happen, with the trust citing capacity issues. His family complained once again about his escapes just five weeks before the murder, in August 2022.
“We are very, very angry and disappointed,” said Julie. “You think if your child is in hospital, and they are very poorly, that they are going to be looked after – they will be safe and they will be secure. But that wasn’t the case for Josh.”
Julie Carroll says her “heart broke” after her son’s crime came to light
Although Joshua was convicted of murder, Leanne says his family hold GMMH partly responsible.
“If you had done your job properly – none of this would have happened,” she said. “Two families wouldn’t have been destroyed and so many hearts wouldn’t have been broken.”
Since 2022, GMMH has been served with several Section 29A warning notices by the Care Quality Commission. These are issued when the commission decides a service needs to make significant improvements, and there is a risk of harm.
In the case of GMMH, their concerns included “ward security systems not consistently keeping people safe”.
Dr John Mulligan is a clinical psychologist for GMMH, working in the community for the early intervention in psychosis service, and a representative for the union Unite.
Dr John Mulligan
He and his colleagues have been going on strike repeatedly across the past seven months, saying they just don’t have the staffing levels they need to keep people safe.
“Thankfully, violent incidents among our service users are quite rare, they are much more likely to be the victims of violence and aggression,” he said. “But serious incidents are happening regularly. Far too regularly.
“It’s very upsetting for staff and for patients and families.”
Joshua Carroll . Pic: Greater Manchester Police
Salli Midgley, chief nurse at the Greater Manchester Mental Health NHS Foundation Trust said: “On behalf of GMMH, we express our heartfelt condolences to Headley Thomas’s loved ones at this very sad time.
“Our thoughts and sympathies remain with everyone who has been affected by this most devastating incident. We are deeply sorry that it happened while Joshua Carroll was under our care.
“Under the trust’s new leadership, we have been working closely with NHS England, our commissioners and the CQC to create better, safer and well-led services for all.”
The Carroll family asked for Joshua to be moved to a different unit after his escapes
She continued: “A huge amount of progress has already been made but we know we still have a lot to do to improve our services.
“As part of this work, we are currently carrying out an in-depth investigation into the care and treatment provided to Mr Carroll, and the circumstances leading to Mr Thomas’ death, the findings of which will be shared with NHS England.
“We are unable to comment further on this case whilst the investigation is ongoing.”
Barry Thomas’s family told Sky News mental health is a very serious issue – but they believe Joshua Carroll tried to “play down his actions”.
They said: “Let’s all remember that a life was taken. Our brother, father, and uncle. The evidence the police gathered was in plain sight for all to see.
“We, the family, would like to thank all the police involved for the work they have done, in bringing justice for Barry.”
UK
Hashem Abedi: Manchester bomb plotter moved back to Belmarsh prison after guards attacked in jail in Durham
The Manchester Arena bomb plotter Hashem Abedi has been moved back to Belmarsh prison after an alleged attack at HMP Frankland on Saturday.
Three prison officers at the high-security jail in County Durham were attacked with cooking oil before being stabbed with an improvised weapon.
Abedi has been transferred to Belmarsh prison in southeast London where he’d previously been found guilty of attacking a prison officer in 2020, along with two other convicted terrorists.
Belmarsh is considered the most high-security prison in the UK.
Abedi has been moved to the only available highly-controlled ‘suite’ cell in the country – a standalone self-contained unit monitored by a minimum of five people at any one time, and a prison dog.
There are only four such cells across England and Wales.
Abedi was convicted of assisting the Manchester terror plot, in which his brother Salman Abedi killed himself and 22 other people by detonating a bomb in a rucksack at an Ariana Grande concert in May 2017.
Hashem Abedi was sentenced in 2020 to at least 55 years in prison after being found guilty of 22 counts of murder over the atrocity.
Salman Abedi before the concert attack. File pic: PA
Meanwhile, the government has said it will commission a review into the incident at HMP Frankland, after suspending access to cooking facilities in separation units, which is where the alleged attack took place.
Sky News understands the Prison Officers Association, after visiting staff who were on duty at the category A jail this week, have written to Prime Minister Sir Keir Starmer calling for urgent action in order to protect prison staff in the high-security estate.
The union wants to see prison officers working there given stab-proof vests, access to tasers in certain situations, and not just a suspension of self cooking facilities in separation units but a full ban.
Separation units house the country’s most dangerous and violent criminals.
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Belmarsh prison in southeast London. File pic: PA
There have been a series of violent attacks across prisons in England and Wales, only days apart.
On Sunday, convicted killer John Mansfield was found dead at a category A prison, HMP Whitemoor, in Cambridgeshire. Police said they arrested a 44-year-old man on suspicion of murder.
Sky News also understands there was an incident on Tuesday lunchtime at HMP Lowdham Grange in Nottinghamshire.
A specialist ‘response group’ consisting of officers from outside the prison were deployed to bring the situation under control, along with a ‘hostage’ situation, while prisoners climbed on the roof and netting. The situation was brought under control within an hour.
Prisons minister Lord Timpson said it was “another sign of the problems we are facing in our prison with prisons that are overcrowded and violent”.
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