Jeremy Hunt warns of making ‘difficult decisions’ on spending and tax – as he admits government went ‘too far, too fast’
Jeremy Hunt has admitted the government went “too far, too fast” and that he will have to take some “very difficult decisions” on spending and tax to get the economy back up and running.
Earlier, the new chancellor admitted there “were mistakes” in Liz Truss and Kwasi Kwarteng’s mini-budget in an interview with Sky News.
But in an apparent bid to restore trust in the government’s handling of the economy, Mr Hunt released a statement on Saturday night saying his focus is on “growth underpinned by stability”.
“The drive on growing the economy is right – it means more people can get good jobs, new businesses can thrive and we can secure world-class public services. But we went too far, too fast,” he said.
He appeared to warn the public that the road ahead will not be easy, saying the government has to “be honest with people”.
“We are going to have to take some very difficult decisions both on spending and on tax to get debt falling but the top of our minds when making these decisions will be how to protect and help struggling families, businesses and people,” he said.
“I will set out clear and robust plans to make sure government spending is as efficient as possible, ensure taxpayer money is well spent and that we have rigorous control over our public finances.”
Mr Hunt was appointed as the new chancellor on Friday, following Mr Kwarteng’s sacking after just 38 days in the job.
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Hunt: There were mistakes
While some Tory MPs welcomed the new appointment as “an experienced pair of hands”, others questioned why Mr Kwarteng was the one who had to go when he was pursuing policies Ms Truss espoused in her leadership campaign.
Meanwhile, the Sunday Times is reporting that Mr Hunt will delay a planned 1p reduction to the basic rate of income tax by one year after the country’s fiscal watchdog warned that the public finances were in a worse state than expected.
Soaring interest rates
It comes as the Bank of England (BoE) said interest rates will have to be raised higher than initially hoped in the face of inflationary pressure.
In August, the bank said it expected the rate of inflation to peak at 13% this year – and remain above 10% for a few months before falling.
But now, BoE governor Andrew Bailey says the realities of inflation might require a stronger interest rates response from the central bank.
Jeremy Hunt and Andrew Bailey. Pic: HM Treasury
Mr Bailey said he spoke to Mr Hunt on Friday and had a “meeting of minds” on the issue of “fiscal sustainability”.
Taking questions in Washington, he said: “I can tell you that I spoke to Jeremy Hunt, the new chancellor, yesterday. I can tell you that there was a very clear and immediate meeting of minds between us about the importance of fiscal sustainability and the importance of taking measures to do that.”
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He continued: “It’s not appropriate for me to constrain the choices he makes but the very clear message I would give and it is a clear message for everybody, including a clear message for markets.
“I can tell you there is a very clear and immediate meeting of minds on the importance of stability and sustainability.”
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‘Mistakes’ in mini-budget
Reflecting on the government’s recent mini-budget, Mr Hunt told Sky News that “it was a mistake when we were going to be asking for difficult decisions across the board on tax and spending to cut the rate of tax paid by the very wealthiest”.
He added that it was also an error to “fly blind” by not accompanying the “fiscal event” with an economic forecast by the Office for Budget Responsibility, which many argue sent the financial markets into turmoil.
On tax cuts, he said: “We won’t have the speed of tax cuts we were hoping for and some taxes will go up.”
Asked if this would mean a return to austerity, he replied: “I don’t think we’re talking about austerity in the way we had it in 2010. But we’re going to have to take tough decisions on both spending and tax.”
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‘It was a mistake to fly blind’
Mr Hunt’s appointment has so far failed to dampen speculation of an imminent coup against Ms Truss.
Rishi Sunak, the defeated leadership contender and former chancellor, as well as Defence Secretary Ben Wallace, have been among the names flagged as potential replacements.
Elsewhere, there was speculation that including the Ministry of Defence (MoD) in any round of spending cuts could spark a clash with Mr Wallace.
A MoD source said he will hold Ms Truss to the pledges made.
Ms Truss promised to increase defence spending to 3% of GDP by 2030 in the wake of the war in Ukraine.
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A woman who accused Conor McGregor of raping her has said “justice has been served” after she won her civil case against the Irish mixed martial arts fighter.
Nikita Hand has been awarded €248,603 (£206,000) in damages after a jury at Dublin’s High Court found McGregor assaulted her in a Dublin hotel in 2018.
McGregor, 36, made no comment as he swiftly left court following the decision on Friday evening.
He had previously told the court he had consensual sex with Ms Hand in a penthouse at the Beacon Hotel in December 2018.
Speaking outside court after the decision, an emotional Ms Hand said the weeks of her civil case against the fighter have been a “nightmare” and has impacted not only her life but her daughter’s, friends and loved ones.
“I would like to start off by saying I’m overwhelmed and touched by the support I have received from everybody,” the mother-of-one said.
Ms Hand said the civil case had been a ‘nightmare’. Pic: Brian Lawless/PA
“It’s something that I’ll never forget for the rest of my life.
“Now that justice has been served, I can now try and move on and look forward to the future with my family and friends and daughter.”
Addressing other victims of sexual assault, Ms Hand continued: “I hope my story is a reminder that no matter how afraid you might be: Speak up, you have a voice and keep on fighting for justice.
“You can stand up for yourself if something happens to you – no matter who the person is – and justice will be served.”
McGregor and partner Dee Devlin leave the High Court. Pic: Brian Lawless/PA
Ms Hand told the court McGregor pinned her to a bed, choked her three times and “brutally raped and battered” her.
The civil court jury was told she was left with extensive injuries, including purple and blue bruising along her hands and wrists, a bloodied scratch to her breast and tenderness to her neck.
But lawyers for the fighter contested the lawsuit and accused her of attempted “extortion”.
They pointed to CCTV footage of Ms Hand arriving at and leaving the hotel with McGregor and a second man, James Lawrence, whom she also accused of sexual assault.
Both McGregor and Lawrence denied any wrongdoing. While Ms Hand won her case against McGregor, she lost her claim against Lawrence.
On Monday, McGregor’s legal team told jurors it did not matter if they did not like or even loathed the famous fighter, urging them to look at the evidence and not his character.
McGregor and Ms Hand knew each other and had occasionally been in contact on social media, the civil trial heard.
Before the assault, Ms Hand had contacted the fighter, who picked up her and a friend in his car.
McGregor “came on to her”, but she did not want to have sexual intercourse with him as she was on her period, the court heard.
World
Arrest warrants issued for Israeli PM Netanyahu and former defence secretary Gallant and senior Hamas commander over alleged war crimes
Arrest warrants have been issued for Israeli Prime Minister Benjamin Netanyahu, former defence secretary Yoav Gallant and a senior Hamas commander by the International Criminal Court (ICC).
The warrants against the senior Israeli figures are for alleged war crimes and crimes against humanity related to the war in Gaza that Israel launched following the 7 October attacks by Hamas.
The prime minister’s office said the warrants against him and Gallant were “anti-semitic” and said Israel “rejects with disgust the absurd and false actions”.
Another warrant was issued for the arrest of Hamas leader Mohammed Diab Ibrahim al Masri for alleged war crimes and crimes against humanity.
Al Masri, also known as Mohammed Deif, was the mastermind behind the 7 October attacks. It is unclear if he is still alive, following an airstrike that Israel claimed killed him earlier this year.
Neither Israel nor the US are members of the ICC. Israel has rejected the court’s jurisdiction and denies committing war crimes in Gaza.
US President Joe Biden described the warrants against Israeli leaders as “outrageous”, adding “whatever the ICC might imply, there is no equivalence – none – between Israel and Hamas”.
Former Israeli prime minister Naftali Bennett said the warrants for Netanyahu and Gallant were a “mark of shame” for the ICC.
The court originally said it was seeking arrest warrants for the three men in May for the alleged crimes and today announced that it had rejected challenges by Israel and issued warrants of arrest.
The new UK Labour government said in the summer it would not oppose the ICC’s right to issue the warrants.
Benjamin Netanyahu addresses the UN general assembly. Pic: Reuters
Warrants for Netanyahu and Gallant
In its update, the ICC said it found “reasonable grounds to believe” that Netanyahu and Gallant “bear criminal responsibility” for alleged crimes.
These, the court said, include “the war crime of starvation as a method of warfare; and the crimes against humanity of murder, persecution, and other inhumane acts”.
Netanyahu previously spoke of his “disgust” at the suggestion the ICC would seek an arrest warrant for him.
The Board of Deputies of British Jews said the ICC’s decision sent a “terrible message”.
“The court has minimised how Hamas fights – deliberately from within civilian infrastructure and cruelly using Palestinian civilians as human shields, tragically leading to many casualties,” the board said.
“Democratic governments, and people around the world, should consider how they would have responded to an October 7th perpetrated against their country, involving mass murder, rape, and hostage-taking.
“We should all be focused on defeating the Hamas terrorists, liberating the hostages, ensuring that civilians in Gaza receive all necessary aid and working towards a sustainable peace for Israelis and Palestinians to prevent these horrible conflicts in the future.
“The decision of the ICC is counter-productive in all these respects.”
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A video released by Hamas in 2005 shows a man identified as Mohammed Deif. Pic: AP
Warrant for Hamas leader
The ICC also said it has issued an arrest warrant for Hamas leader Al Masri, saying it has “reasonable grounds to believe” that he is responsible for crimes against humanity including murder, extermination, torture, rape, as well as war crimes including taking hostages.
Discussing the 7 October attacks, the court said: “In light of the coordinated killings of members of civilians at several separate locations, the Chamber also found that the conduct took place as part of a mass killing of members of the civilian population, and it therefore concluded that there are reasonable grounds to believe that the crime against humanity of extermination was committed.”
In its statement, the ICC said the prosecution was not in a position to determine whether Al Masri is dead or alive, so was issuing the arrest warrant.
The court previously said it was seeking an arrest warrant for Ismail Haniyeh, the leader of Hamas who was subsequently killed in July.
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