Connect with us

Published

on

Liz Truss has pledged not to cut public spending to balance the books in her first PMQs since the chancellor’s contentious mini-budget – despite a leading economics-focused think tank warning the government is billions short of the sums needed.

The prime minister insisted she was “absolutely” not planning public spending reductions, but vowed that taxpayers’ money would be used well.

Her pledge comes as the government continues to be under pressure for the market turmoil that erupted after the government announced its £45bn package of unfunded tax cuts last month.

Speaking to Sky News after PMQs, Mel Stride, the Chair of the Treasury Select Committee, said that Chancellor Kwasi Kwarteng should not take the reversal of some of his tax cuts “off the table”.

He said that “holding the line” on the measures announced in his mini-budget will be even more difficult following Ms Truss’ comments on public spending, and that 31 October – the date of the chancellor’s debt-cutting plan being published – is a moment for a “reset”.

Please use Chrome browser for a more accessible video player

Tories ‘must get back to being fiscally responsible’

He told political editor Beth Rigby: “(Chancellor Kwarteng) has to be so careful that he doesn’t take any chances, he has to be sure the markets are going to like what they hear, that’s why I think rowing back on the tax cuts have to remain on the table.

“It’s extraordinarily important that whatever the chancellor comes forward with on the 31st, that it cuts it with the market.

More on Conservatives

“If there is any doubt in his mind about anything he is doing, he would do well to think again, he has got to play it ultra safe.”

Truss says last thing country needs is a general election – politics latest

Economists have suggested that to gain a grip on the national finances, the government will have to make spending cuts or tax rises worth tens of billions of pounds.

The “Green Budget”, from the Institute for Fiscal Studies and Citi, the investment bank, warned this week that the chancellor would have to cut spending or raise taxes by £62bn if he is to stabilise or reduce the national debt, as he has repeatedly promised in recent weeks.

That shortfall is a direct consequence of the measures announced since the Truss government took office, which include its reversal of various tax increases such as corporation tax and national insurance and its energy price guarantee.

Chancellor Kwasi Kwarteng would instead have to carry out dramatic cuts, the think tank said, potentially reducing government investment and slashing public spending on departments that have already been squeezed during the austerity years.

The cost of government spending increased on Wednesday, with the pound falling against the dollar.

Please use Chrome browser for a more accessible video player

‘Will she reverse “kamikaze budget”?’

‘Kamikaze budget’

At PMQs, Sir Keir Starmer reminded Ms Truss that during her leadership campaign over the summer she had pledged: “I’m not planning public spending reductions.”

Asked if she was going to stick to that, the prime minister replied: “Absolutely… We are spending almost £1tn of public spending. We were spending £700bn back in 2010.

“What we will make sure is that over the medium term the debt is falling. But we will do that not by cutting public spending but by making sure we spend public money well.”

The Labour leader once again called for the government to reverse their “kamikaze budget”, warning Conservative MPs that voters will not forgive their party if they “defend” it.

‘Ducking responsibility’

Sir Keir also accused the prime minister of “ducking responsibility” for the consequences of her government’s economic policies and of being “lost in denial”.

“Who voted for this?” he questioned.

Ms Truss responded: “The way that we will get our country growing is through more jobs, more growth, more opportunities, not through higher taxes, higher spending and his friends in the union stopping hard-working people getting to work.”

‘No-fault’ evictions pledge

Also during PMQs, Ms Truss committed to honouring a 2019 Tory manifesto pledge to scrap “no-fault” evictions of private renters in England.

There had been reports earlier this week that the government could try and shelve the commitment.

On Tuesday, Downing Street said no decisions had been made on whether to pause a promised ban on Section 21 notices, which allow landlords to evict a tenant without giving a reason.

Labour MP Graham Stringer asked Ms Truss: “Can the PM reassure the 11 million private renters in this country that she will carry out her commitment to get rid of no-fault evictions?”

Ms Truss replied: “I can.”

Please use Chrome browser for a more accessible video player

‘PM ignoring mini-budget damage’

Energy help

The prime minister also announced that Jacob Rees-Mogg, the business secretary, is working on a scheme to help households and businesses bring down their energy costs.

Last Friday, Ms Truss ruled out launching an energy-saving public information campaign after warnings from the National Grid Electricity System Operator that planned three-hour power blackouts could be imposed in some areas.

Only two days ago Downing Street had defended Ms Truss’s decision not to launch a “bespoke” energy-saving public information campaign during the energy crisis, saying it is down to individuals to decide what is right for them.

Mr Kwarteng has already dropped plans to abolish the 45% tax rate on earnings over £150,000 after internal criticism of the policy, though he has insisted he remains committed to the rest of his mini-budget.

Asked what happens after the Bank stops buying bonds on Friday, the chancellor said: “Well, it’s a matter for the governor.”

Click to subscribe to the Sophy Ridge on Sunday podcast

Continue Reading

World

Israeli airstrike on Beirut causes more shock to a country already rocked to its core

Published

on

By

Israeli airstrike on Beirut causes more shock to a country already rocked to its core

The Israeli airstrike in the southern suburbs of Beirut came as the Lebanese caretaker government was having an emergency meeting to discuss the previous two days of pager and radio explosions.

It caused yet more shock in a nation which considers itself battle-hardened after years of strife, disaster and wars.

But Lebanon has been truly rocked to its core by the string of attacks over the past few days.

“These are war crimes,” one Lebanese minister told us.

Follow the latest updates on the Middle East

Please use Chrome browser for a more accessible video player

Watch Yalda Hakim’s interview with Lebanon’s energy minister

The Israeli military said it had targeted and killed a senior Hezbollah military commander. They named him as Ibrahim Aqil – a man with a $7m US bounty on his head.

He’s been on the US most wanted list for more than forty years after being accused of being involved in the bombing of the US embassy and US marine barracks in 1983 which killed hundreds.

But the Hezbollah stronghold of Dahieh is a heavily populated crowded residential area and packed with shops, markets, and high-rise apartments.

The strike appeared to have flattened an entire block, flipping cars and leaving other vehicles covered in a heavy blanket of thick dust and rubble.

Damage caused by an Israeli air attack on a southern suburb of Beirut. Pic: AP
Image:
Damage caused by an Israeli air attack on a southern suburb of Beirut. Pic: AP

Several people could be seen in video footage filmed by neighbours, trapped under piles of rubble.

The Lebanese health authority keeps on updating the number of people killed in the strike, with the latest figures reaching 14.

There are more than 60 injured, with some of those believed to be in critical condition. Children are said to be among the dead, missing and injured.

Please use Chrome browser for a more accessible video player

Aftermath of IDF strike on Lebanon

‘Our actions speak for themselves’

The Israeli military immediately claimed success – saying that, along with Aqil, the strike had wiped out about 10 of his elite Radwan Force.

According to an IDF spokesman, who did not provide any evidence, Aqil’s team had been planning an attack into northern Israel similar to the Hamas attack on 7 October.

The Israeli Prime Minister Benjamin Netanyahu issued a very short statement on X, saying: “Our goals are clear and our actions speak for themselves.”

Both the prime minister and defence minister have vowed to restore security to the north of Israel so the 60,000 residents who have fled the cross-border attacks can return to their homes.

An estimated 120,000 Lebanese have also been forced out of their homes along the border.

The airstrike in the capital is the second in Beirut in two months – both, according to the IDF, targeted at senior Hezbollah commanders.

According to sources being quoted in Lebanese media, the Hezbollah group of senior leaders was meeting in an underground basement of a large housing block when the missile penetrated.

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

‘Things are escalating by the minute’

It is unlikely to be seen as a justifiable precision attack – or a “targeted strike”, as described by the Israeli military – if the Lebanese government ministers’ reactions are anything to go by.

We spoke to several as they arrived for their emergency cabinet meeting in the hour before the attack.

They were already incensed by the back-to-back coordinated booby trap explosions of communication devices across the country. Israel has yet to confirm or deny its involvement in the blasts.

Speaking about the pager and radio explosions across Lebanon earlier this week, the country’s environment minister and head of its disaster management committee Nasser Yassin said: “It’s genocidal, it’s indiscriminate and a violation of international humanitarian law and every other law.

“We have an insane leadership on the southern end of our borders who don’t want to be indicted by the International Court of Justice.”

The head of the country’s disaster management, Nasser Yassin
Image:
The head of the country’s disaster management committee, Nasser Yassin

The information minister Ziad Makary called the explosions of communication devices “a new crime… it’s a war crime and not something that would pass easily trying to kill three thousand or four thousand civilians as we see them”.

The information minister Ziad Makary
Image:
The information minister Ziad Makary

And Amin Salam, the economy minister, warned: “Things are escalating by the minute.

“There’s more tension, more provocation. We have been doing our best to get to a peaceful solution but the escalation is unprecedented.

“It’s an act of terror, regardless of who was targeted.”

Most intense border fighting in nearly a year

The airstrike in Beirut came after a marked increase in cross-border exchanges – the most intense in nearly a year.

The Israeli military said Hezbollah had spent the early part of the day firing nearly 200 rockets across the border into Israel.

Many of them were intercepted by the Iron Dome defence system.

This followed the Israeli bombing of more than 50 targets in the south of Lebanon overnight – which the IDF said hit launchers and weapons stores.

The Israeli military is suffering losses too – there were two funerals today for Israeli soldiers killed on their northern border – but it’s Hezbollah which seems to be paying a far heavier price right now.

Read more from Sky News:
Iran mulls next move as fears of war grow
Israel’s history of secret operations

Hezbollah unilaterally entered this latest war on 8 October, much to the frustration of Lebanon’s caretaker government, and a day after the Hamas attack on southern Israel.

Hezbollah have repeatedly said their actions are in support of Gaza and have continued to insist they will only stop once there’s a ceasefire.

But right now, the fighting group allied to Iran – and designated a terror group by the US and UK – appears to be very much on the backfoot after three attacks in four days.

Meanwhile, Israel is ploughing on despite the cries of indignation and condemnation from the international community.

Additional reporting from Beirut with camera Jake Britton, specialist producer Chris Cunningham and Lebanon producers Jihad Jineid and Sami Zein.

Continue Reading

World

Why Western allies calculate there is hope for avoiding all-out war between Israel and Iran-backed Hezbollah

Published

on

By

Why Western allies calculate there is hope for avoiding all-out war between Israel and Iran-backed Hezbollah

Even after exploding pagers, thousands of casualties and the killing of a top Hezbollah commander in an Israeli airstrike, the UK and other allies are still hoping that all-out war between Israel and the Iran-backed militant group in Lebanon can be avoided.

But events are unfolding at a dizzying pace – far faster than governments can react – and each new attack raises the chance of escalation into wider, regional confrontation.

A big unknown is how Iran will respond.

Hezbollah is regarded as its most powerful proxy – and Tehran directly suffered from the pager bombs with its own ambassador to Lebanon being injured.

Adding to the pressure, the Iranian regime has yet to carry out any major retaliation for the killing by Israel of a top Hamas leader – Ismail Haniyeh – in Tehran in July.

 Ismail Haniyeh. Pic: AP
Image:
Ismail Haniyeh. Pic: AP

Iran launched a barrage of drones and missiles against Israel in April in response to an attack on an Iranian consular building in Damascus. Israeli air defences, bolstered by the US, the UK and other allies, ensured that strike failed.

Tehran will not want to fall short a second time – or else risk looking weak.

Doing nothing is also not an option.

The same is true for Hezbollah.

Please use Chrome browser for a more accessible video player

Hezbollah: ‘Enemy crossed all red lines’

But a calculation by Western allies when considering the timing and scope for Hezbollah’s next move appears to be that the group’s ability to retaliate in any meaningful way for the damage it has suffered is in disarray, following the targeting of thousands of its fighters’ pagers and walkie-talkies.

Israel is accused of turning the devices into remotely detonated bombs in an unprecedented attack on Tuesday and Wednesday that left dozens of people dead and thousands wounded across Lebanon, including an undisclosed number of Hezbollah members. Israel has neither confirmed nor denied its involvement.

The blasts also devastated the group’s communication channels making it much harder to muster a speedy response – though Hassan Nasrallah, the leader, has vowed retribution.

A second factor behind the West’s hope for calm heads is a belief that neither Israel nor Hezbollah nor Iran want a full-blown war.

Read more:
UK fears Britons might need evacuating from Lebanon
Top Hezbollah commander ‘killed in Israeli strike’

Please use Chrome browser for a more accessible video player

Lebanon minister: ‘Israel has committed war crimes’

Israel does not yet appear to have the scale of troops on its northern border that would be needed for a large-scale ground offensive – though a ground attack is only one option.

Only striking from the air is another.

On Thursday, Israel Defence Forces launched their most intense barrage of airstrikes into southern Lebanon since the start of this latest round of hostilities almost a year ago.

The Israeli government has said it wants to enable tens of thousands of its citizens to return to their homes close to the border with Lebanon in the north from where they were forced to flee in the wake of increased Hezbollah rocket attacks.

At the same time, Nasrallah has promised to prevent this from happening, which puts the two sides on a direct collision course.

It means the risk of escalation remains high.

Against such uncertainty, David Lammy, the British foreign secretary, chaired a meeting of the government’s emergency COBRA committee on Friday.

He discussed the crisis and the UK’s ability to deal with what would be a hugely complex and risky evacuation operation of British nationals from Lebanon should the situation deteriorate significantly.

The previous evening, he had called for an immediate ceasefire by both sides following a meeting in Paris with his American, French, German and Italian counterparts.

But less than 24 hours later, Israel said it had killed Ibrahim Aqil, one of Hezbollah’s most senior commanders, in a strike on a southern suburb of Beirut – another significant blow to the group and yet one more reason for Hezbollah and Iran to want to retaliate.

Continue Reading

World

Lebanese minister accuses Israel of ‘committing war crimes’ in a ‘blatant way’ after ‘terror’ of pager blasts

Published

on

By

Lebanese minister accuses Israel of 'committing war crimes' in a 'blatant way' after 'terror' of pager blasts

A Lebanese government minister has accused Israel of committing war crimes “in a blatant way and without immediate condemnation”, in an interview with Sky News. 

Walid Fayad, the country’s energy minister, also said Lebanon was “losing faith” in the UN and international laws.

He called this week’s pager attacks a move “from targeted terror to distributed and blind terror”.

Communication devices used by Hezbollah members, such as pagers and walkie-talkies, exploded on Tuesday and Wednesday, killing at least 37 people and injuring thousands.

The blasts increased fears of an all-out war in the Middle East.

Lebanon and Hezbollah say Israel was behind the pager attacks. Israel has neither denied nor confirmed its involvement.

Follow live Middle East updates

Hezbollah fighters carry the coffins of fallen four comrades who were killed Monday after their handheld pagers exploded, during their funeral procession in the southern suburb of Beirut, Lebanon, Wednesday, Sept. 18, 2024. (AP Photo/Bilal Hussein)
Image:
Hezbollah fighters carry the coffins of fallen comrades who were killed after their handheld pagers exploded. Pic: AP

“What I am shocked not to see is an immediate, overwhelming condemnation by all countries of the world,” Mr Fayad told The World With Yalda Hakim.

“What we have seen in front of our own eyes is civilian people in the supermarkets or going about their business in the city of Beirut and anywhere else in Lebanon dying or getting injured.”

Mr Fayad added: “This attack was perpetrated deliberately in a clear contradiction with and disobedience to all humanitarian international laws or UN resolutions with respect to Israel and Lebanon. What we are seeing is very alarming because the world is silent on a very large scale.”

He said Lebanon is losing faith “with the international laws, with the ability of the UN to enforce any law and order at world scale and at regional scale”.

He continued: “We would be certainly asking for the implementation of UN resolutions and for the implementation of the latest security council decision asking Israel to stop its attacks on the Palestinians and on the Lebanese.”

Lebanon's energy minister Walid Fayad
Image:
Lebanon’s energy minister Walid Fayad

Reflecting on the approaching anniversary of the 7 October attack on Israel, in which Hamas killed 1,200 people and took around 250 hostages, Mr Fayad said: “We are looking at one year of useless conflict where Israel is not making any accomplishments with these conflicts other than total destruction for the Palestinian people and not only the people themselves, but also the infrastructure.”

Since Israel’s military response began last October, more than 41,000 Palestinians have been killed in Gaza, according to the Hamas-run health ministry there. The ministry’s count does not differentiate between fighters and civilians.

A population of more than 2.3 million people has also been displaced by the conflict in Gaza.

Read more from Sky News:
Attack on Hezbollah is warning to governments
Hezbollah chief’s message means devastation will continue
Middle East is ‘closest to regional war since 1970s’

Mr Fayad also criticised President Joe Biden and Antony Blinken, the US secretary of state, saying that “sometimes they can be driven by national priorities”.

He said: “You have a situation in the US where it’s currently the election race time, and there are lobbies that are very strong in the US and where any change in the establishment’s policy or stance might have a bearing.”

Follow Sky News on WhatsApp
Follow Sky News on WhatsApp

Keep up with all the latest news from the UK and around the world by following Sky News

Tap here

Mr Fayad urged world leaders to prevent “escalation into a much broader conflict” on the Israel-Lebanon border.

“World leaders happen to have a lot of leverage whether in the supply of ammunition or in the supply of financial support to the state of Israel,” he added.

“It is in their hands to use this leverage to put a stop to these atrocities and to start going in the right direction, a direction that allows… peace and stability in the region rather than complete chaos and risking everybody’s lives and escalation into a much broader conflict.”

Despite the minister’s calls for de-escalation, Israel said it hit Beirut in a “targeted” strike on Friday afternoon after Hezbollah fired 140 rockets into Israel.

Continue Reading

Trending