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.
World
UK joins NATO operation to bolster Europe’s eastern flank after Russian drone incursions into Poland
NATO is to bolster Europe’s eastern flank, including the use of UK military resources, after Russia’s “reckless and unacceptable” violation of Polish airspace.
NATO Secretary-General Mark Rutte announced operation ‘Eastern Sentry’ on Friday, involving the deployment of equipment on the border with Belarus, Russia and Ukraine to deter potential Russian aggression.
Poland shot down Russian drones which flew over the country on Wednesday, something the military alliance has portrayed as an attempt by Moscow to test NATO’s military response.
It underlines long-held concerns about the potential expansion of Russia’s three-year war in Ukraine.
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Michael Clarke: Russia looking to frighten NATO
Russia said its drones went astray because they were jammed, but European leaders believe the incursions were a deliberate provocation by Russia.
“It’s reckless and unacceptable. We can’t have Russian drones entering allied airspace,” Mr Rutte told a news conference.
Mark Rutte described Russian drones entering Polish airspace as ‘reckless’. Pic: Reuters
He added that allies, including the UK, France, Germany and Denmark, have so far committed to the mission with others set to join.
In a statement, the UK’s Ministry of Defence said: “The UK is fully committed to playing our part in NATO’s Eastern Sentry following the reckless and dangerous airspace violations by Russia”. It added that the details of the UK’s contribution would be announced soon.
Yvette Cooper visited Ukraine on Friday, her first visit to the country since becoming foreign secretary after a cabinet shake-up by Sir Keir Starmer.
Ms Cooper described her trip, which included a meeting with the country’s president, Volodymyr Zelenskyy, as a demonstration of solidarity with Ukraine.
“The UK will not stand idly by as Putin continues his barbaric invasion of Ukraine,” Ms Cooper said, noting what she said was the Russian president’s “complete disregard for sovereignty” by sending drones into NATO airspace.
Yvette Cooper met Volodymyr Zelenskyy in Kyiv on Friday. Pic: Valentyn Ogirenko/Reuters
Pic: Valentyn Ogirenko/Reuters
Prince Harry also made a surprise visit to Kyiv on Friday, where he met with wounded service members.
NATO already has substantial forces in eastern Europe, including thousands of troops, but the alliance did not explain how many additional forces would be involved in the new operation.
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Prince Harry’s surprise visit to Ukraine
Speaking at the alliance’s Brussels headquarters, US General Alexus Grynkewich told reporters the additional resources will enable the alliance to “plug gaps in the line” and concentrate forces wherever they’re needed while improving communications across NATO’s entire eastern flank.
NATO detailed a modest number of additional military assets – including two F-16 fighter jets and a frigate from Denmark, three Rafale fighter jets from France and four Eurofighter jets from Germany.
The announcement also coincided with a joint military exercise involving thousands of Russian and Belarusian troops, which began on Friday.
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Meanwhile, new measures were announced by the UK against Russia on Friday.
They included bans on 70 vessels the UK says are part of Russia’s “shadow fleet” that transports Russian oil in defiance of sanctions.
Some 30 individuals and companies – including Chinese and Turkey-based firms – were also sanctioned for their part in supplying Russia with electronics, chemicals, explosives and other weapons components.
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Donald Tusk, the Polish prime minister, dismissed Donald Trump’s suggestion that the drone incursion into Poland may have been “a mistake”.
“We would also wish that the drone attack on Poland was a mistake,” Mr Tusk wrote on X. “But it wasn’t. And we know it.”
US-led efforts to steer Moscow and Kyiv toward a peace settlement have so far failed to progress.
Kremlin spokesperson Dmitry Peskov said talks to end the war were currently on “pause” even though channels of communication remain open.
Thousands of troops are taking part in a joint military exercise between Russia and Belarus, as tensions with the EU run high following a Russian drone incursion into Polish airspace earlier this week.
The Zapad joint military exercise which began on Friday will involve drills in both Russia and Belarus as well as in the Baltic and Barents seas, the Russian defence ministry said.
Belarusian defence officials initially said about 13,000 troops would participate in the drill, but in May, its defence ministry said that would be cut nearly in half.
It comes just two days after Poland, with support from its NATO allies, shot down Russian drones over its airspace.
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Poland’s Prime Minister Donald Tusk on Friday morning hit back at a suggestion by US President Donald Trump on Thursday that the incursion may have been a “mistake”.
He said in a post on X: “We would also wish that the drone attack on Poland was a mistake. But it wasn’t. And we know it.”
Russia said its forces had been attacking Ukraine at the time of the incursions and that it had not intended to hit any targets in Poland.
Friday also saw Foreign Secretary Yvette Cooper travelling to Ukraine’s capital of Kyiv on the same day the UK announced fresh sanctions against Moscow.
Prince Harry was also in Kyiv for a surprise visit to help with the recovery of military personnel seriously injured in the three-year war with Russia.
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Prince Harry arrives in Kyiv
Ms Cooper, who was appointed foreign secretary last week, posted about her visit on X saying: “The UK’s support for Ukraine is steadfast. I am pleased to be in Kyiv on my first visit as Foreign Secretary.”
The UK’s new sanctions include bans on 70 vessels that Britain says are part of Russia’s “shadow fleet” that transports Russian oil in defiance of sanctions already in place.
Yvette Cooper with Volodymyr Zelenskyy in Kyiv. Pic: Valentyn Ogirenko/PA
Some 30 individuals and companies – including Chinese and Turkey-based firms – have also been sanctioned for their part in supplying Russia with electronics, chemicals, explosives and other weapons components.
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Meanwhile on the frontline, Ukrainian drones struck Russia’s oil-loading Primorsk port overnight, an SBU official said.
The attack caused fires and suspended oil-loading operations, the official added.
Russian defence systems also intercepted and destroyed 221 Ukrainian drones overnight.
Prince Harry has made a surprise visit to the Ukrainian capital of Kyiv, a spokesperson for the royal has said.
Harry, who served 10 years in the British Army, visited the city at the invitation of the Ukrainian government.
The Duke of Sussex travelled to the capital to help with the recovery of military personnel seriously injured in the three-year war with Russia.
Pic: Railway of Ukraine Ukrzaliznytsia/AP
Foreign Secretary Yvette Cooper will also be travelling to Kyiv on Friday in what will be her first foreign trip since being appointed to the job last week.
Her visit coincides with the UK launching a new package of Russia-related sanctions targeting ships carrying Russian oil as well as companies and individuals supplying electronics, chemicals and explosives used to make Russian weapons.
It comes as Russia and Belarus began a major joint military exercise on on NATO’s doorstep on Friday, just two days after Poland, with support from its NATO allies, shot down suspected Russian drones over its airspace.
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Drones shot down in Poland
The Zapad-2025 exercise – a show of force by Russia and its close ally – will involve drills in both countries and in the Baltic and Barents seas, the Russian defence ministry said.
Meanwhile on the frontline, Russian defence systems intercepted and destroyed 221 Ukrainian drones overnight,
including nine over the Moscow region, the ministry said on Friday.
The duke told the Guardian while on an overnight train to Kyiv: “We cannot stop the war but what we can do is do everything we can to help the recovery process.
“We can continue to humanise the people involved in this war and what they are going through.
“We have to keep it in the forefront of people’s minds. I hope this trip will help to bring it home to people because it’s easy to become desensitised to what has been going on.”
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Harry, who served two tours in Afghanistan, previously travelled to Ukraine in April, when he visited war victims as part of his work with wounded veterans.
The prince visited the Superhumans Center, an orthopaedic clinic in Lviv that treats and rehabilitates wounded military personnel and civilians.
Earlier this week, Harry said the King is “great” after he reunited with him at Clarence House for a private tea.
It was their first meeting in 19 months and lasted just 54 minutes.
The last time the father and son saw each other was in February 2024 when the prince flew to the UK after the monarch announced his cancer diagnosis.
Harry and his wife Meghan Markle have lived in California since they quit roles as senior working royals in March 2020.
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