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Jeremy Hunt has revealed he is reversing “almost all” of the tax cuts announced in his predecessor’s mini-budget and is scaling back support on energy bills.

In an emergency statement, the chancellor said a 1p cut to income tax will be delayed “indefinitely” until the UK’s finances improve instead of being introduced in April 2023 as announced in Kwasi Kwarteng’s mini-budget three weeks ago.

Mr Hunt, who only stepped into the job on Friday, said the government’s energy price guarantee will only be universal until April – not for two years as originally planned.

After April, the scheme will be more targeted following a review into how to support people’s energy bills from that time, he said.

Hunt goes further than expected – as Tory MPs say it’s ‘when not if’ Truss goes – follow latest on politics

“The government has today decided to make further changes to the mini-budget, and to reduce unhelpful speculation about what they are, we’ve decided to announce these ahead of the medium-term fiscal plan, which happens in two weeks,” Mr Hunt said.

He said the government was reversing “almost all” the tax measures announced in the mini-budget that have not yet started going through parliament.

The new tax measures would bring in £32 billion after economists estimated the government was facing a £60bn black hole in public finances with the mini-budget announcements.

The changes Mr Hunt revealed include:

  • No cuts to dividend tax rates
  • Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
  • No new VAT-free shopping scheme for overseas visitors to the UK
  • No freeze on alcohol duty rates
  • Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
  • Energy price guarantee only until April 2023.

Mr Hunt promised: “The objective is to design a new approach that will cost the taxpayer significantly less than planned, whilst ensuring enough support for those in need.

“Any support for businesses will be targeted to those most affected and the new approach will better incentivise energy efficiency.

“The most important objective for our country right now is stability.”

As Mr Hunt revealed the tax cut reversals, the pound strengthened by more than 1.2% to 1.139 against the US dollar and UK government bonds rallied further, with yields on 30-year gilts easing back by around 10%.

Widely seen as the most powerful person in government now, Mr Hunt added that there will be “more difficult decisions” on tax and spending” and said all government departments “will need to redouble their efforts to find savings, and some areas of spending will need to be cut”.

The mini-budget tax cuts that will not be reversed as they are already going through parliament, are: Cancelling the Health and Social Care Levy tax due to take place in April 2023 and the stamp duty cut.

Ms Truss’ spokesman said Monday’s decision was taken jointly by the PM and Mr Hunt over the weekend and again admitted the mini-budget went “too far, too fast”.

But he sidestepped questions about whether Ms Truss would resign after another Tory joined those who started publicly calling for her to go over the weekend.

Sky News’ political editor Beth Rigby said this row back on the mini-budget is a major blow for Liz Truss, just six weeks into her premiership.

“The entire platform of the Truss administration is gone, is gone. It’s done,” she said.

“It’s genuinely shocking in terms of how a prime minister and her cabinet got this so wrong and had to reverse in such a dramatic way.”

“It’s not just the tax decisions in the mini-budget that the new chancellor now says are just not viable.

“He’s now saying that the policy platform, her big shock and awe announcement as it was billed in the run-up to that announcement is also just economic, not viable. And that is another body blow to the prime minister today.”

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‘We think she should go’ – Labour

Scottish First Minister Nicola Sturgeon used a news conference about Scottish independence shortly after Mr Hunt’s statement to say the government turmoil is “a self-inflicted crisis for Liz Truss” and “is humiliating in quite an unprecedented way”.

“I think the sooner this prime minister and this entire government departs office, the better that will be for everyone.” she added.

Labour’s shadow chancellor, Rachel Reeves, said Mr Hunt’s statement shows “the damage has been done” and said “this is a Tory crisis made in Downing Street, paid by working people with higher mortgage and higher borrowing costs”.

She said the Conservatives have “lost all credibility” and families will continue to endure huge costs.

“We’re still flying blind with no OBR forecasts and no clarity on the impact of their mistakes,” she added.

In a bid to calm the markets, the Treasury announced at 6am on Monday Mr Hunt was going to reveal parts of his medium-term fiscal plan – which was due to take place on 31 October.

Over the weekend, Mr Hunt promised to slow down Ms Truss’ tax cuts and said “some taxes will go up” as he worked on tearing up the mini-budget that has caused weeks of economic turmoil.

His comments were welcomed by the Bank of England’s governor, Andrew Bailey, who said there had been an “immediate meeting of minds on the importance of stability and sustainability” when he spoke to Mr Hunt on Friday.

The decision for Mr Hunt to make a statement on Monday was made after meetings between the chancellor, Ms Truss, Mr Bailey and the head of the Debt Management Office on Sunday night.

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‘Physical threat’ from Iran on people living in UK has ‘increased significantly’, watchdog says

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'Physical threat' from Iran on people living in UK has 'increased significantly', watchdog says

The threat of physical attacks by Iran on people living in the UK has increased “significantly” since 2022, according to a new report by parliament’s intelligence watchdog.

Iran poses a “wide-ranging, persistent and unpredictable threat” to the UK, according to the Intelligence and Security Committee.

It also said Iran’s intelligence services were “willing and able – often through third party agents – to attempt assassination within the UK, and kidnap from the UK”.

Iran's supreme leader Ayatollah Ali Khamenei.
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Iran’s supreme leader Ayatollah Ali Khamenei. Pic: Office of the Iranian Supreme Leader/West Asia News Agency/Reuters

The report said there have been 15 murder or kidnap attempts against British citizens or UK-based individuals since the beginning of 2022 and August 2023.

Sky News has approached the Iranian embassy for a comment.

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Millions of Iranians unite in mourning

The report authors add: “Whilst Iran’s activity appears to be less strategic and on a smaller scale than Russia and China, Iran poses a wide-ranging threat to UK national security, which should not be underestimated: it is persistent and crucially – unpredictable.”

The committee also says that while the threat is often focused on dissidents and other opponents to the regime, there is also an increased threat to Jewish and Israeli interests in the UK.

More on Iran

The report warns that while Iran has not developed a nuclear weapon, it has taken steps towards that goal.

It found that Iran had been “broadly compliant” with the 2015 Joint Comprehensive Plan of Action (JCPOA), aimed at limiting its nuclear ambitions.

But since Donald Trump withdrew from that deal in 2018, the report said the nuclear threat had increased and Tehran “had the capability to arm in a relatively short period”.

The UK government is also accused of “fire-fighting” rather than developing a real understanding of Iran.

Iranian President Masoud Pezeshkian and military commanders watch as military equipment passes by during the National Army Day parade
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Iran’s president oversees a parade in Tehran in April showing off the country’s military hardware. Pic: West Asia News Agency/Reuters

An Iranian missile is seen during the National Army Day parade ceremony in Tehran
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Missiles are paraded through the capital during the recent National Army Day ceremony. Pic: West Asia News Agency/Reuters

The report says: “The government’s policy on Iran has suffered from a focus on crisis management, driven by concerns over Iran’s nuclear programme, to the exclusion of other issues.

“As one of our expert witnesses told the committee: ‘Strategy is not a word that I think has crossed the lips of policy makers for a while, certainly not in relation to Iran’.”

The committee concluded its evidence-taking in August 2023, the result of two years of work, but the report authors say their conclusions “remain relevant”.

But the report authors questioned whether UK sanctions against individuals would “in practice deliver behavioural change. Or in fact unhelpfully push Iran towards China”.

The committee also said the British government should consider proscribing the Iranian Revolutionary Guards Corps (IRGC), although some argue it would limit the UK’s ability to talk to and influence Iran.

Read more from Sky News:
Who is Iran’s supreme leader?
Defiant Khamenei makes appearance
Anger in Iran over US and Israeli strikes

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Responding to the report, a UK government spokesperson said: “The government will take action wherever necessary to protect national security, which is a foundation of our plan for change.

“We have already placed Iran on the enhanced tier of the foreign influence registration scheme and introduced further sanctions against individuals and entities linked to Iran, bringing the total number of sanctions to 450.”

British security services say Tehran uses criminal proxies to carry out its work in Britain.

In December, two Romanians were charged after a journalist working for a Persian language media organisation in London was stabbed in the leg. In May, three Iranian men appeared in court charged with assisting Iran’s foreign intelligence service and plotting violence against journalists.

Earlier this year, the UK government said it would require the Iranian state to register everything it does to exert political influence in the UK, because of what it called increasingly aggressive activity.

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‘A constant game of cat and mouse’: Inside the crackdown on illegal moped delivery drivers

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'A constant game of cat and mouse': Inside the crackdown on illegal moped delivery drivers

The first thing you notice when immigration officers stop a possible illegal moped delivery driver is the speed in which the suspect quickly taps on their mobile.

“We’re in their WhatsApp groups – they’ll be telling thousands now that we’re here… so our cover is blown,” the lead immigration officer tells me.

“It’s like a constant game of cat and mouse.”

Twelve Immigration Enforcement officers, part of the Home Office, are joining colleagues from Avon and Somerset Police in a crackdown on road offences and migrants working illegally.

Police chase suspected illegal immigrant working as a delivery drivers

The West of England and Wales has seen the highest number of arrests over the last year for illegal workers outside of London.

“It is a problem… we’re tackling it,” Murad Mohammed, from Immigration Enforcement, says. He covers all the devolved nations.

“This is just one of the operations going on around the country, every day of the week, every month of the year.”

Murad Mohammed from Immigration Enforcement
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Murad Mohammed, from Immigration Enforcement, says his team are attempting to tackle the issue

Just outside the Cabot Circus shopping complex, we stop a young Albanian man who arrived in the UK on the back of a truck.

He’s on an expensive and fast-looking e-bike, with a new-looking Just Eat delivery bag.

He says he just uses it for “groceries” – but the officer isn’t buying it. He’s arrested, but then bailed instantly.

A man inspects the Just Eat food delivery bag of a suspected illegal immigrant working as a delivery driver

We don’t know the specifics of his case, but one officer tells me this suspected offence won’t count against his asylum claim.

Such is the scale of the problem – the backlog, loopholes and the complexity of cases – that trying to keep on top of it feels impossible.

This is one of many raids happening across the UK as part of what the government says is a “blitz” targeting illegal working hotspots.

Angela Eagle, the border security and asylum minister, joins the team for an hour at one of Bristol’s retail parks, scattered with fast food chains and, therefore, delivery bikes.

Angela Eagle, Minister for Border Security and Asylum
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Border security and asylum minister, Angela Eagle, speaks to Sky News

She says arrests for illegal working are up over the last year by 51% from the year before, to more than 7,000.

“If we find you working, you can lose access to the hotel or the support you have [been] given under false pretences,” she said.

“We are cracking down on that abuse, and we intend to keep doing so.”

A suspected illegal immigrant working as a delivery driver being arrested

There are reports that asylum seekers can rent legitimate delivery-driver accounts within hours of arriving in the country – skipping employment legality checks.

Uber Eats, Deliveroo, and Just Eat all told Sky News they’re continuing to strengthen the technology they use to remove anyone working illegally.

But a new Border Security Bill, working its way through Parliament, could see companies fined £60,000 for each illegal worker discovered, director disqualifications and potential prison sentences of up to five years.

“I had them all in to see me last week and I told them in no uncertain terms that we take a very tough line on this kind of abuse and they’ve got to change their systems so they can drive it out and off their platforms,” the minister tells me.

Read more:
Welfare bill passes final Commons stage after another concession
Ex-Tory chairman defects to Reform
Wealth tax could be coming to the UK – what is it?

The gig economy – so prevalent in every city – creates another incentive for those wanting to risk their lives coming to the UK illegally.

More than 20,000 migrants have crossed the English Channel to the UK in 2025 – a record number at this point of the year.

A suspected illegal immigrant working as a delivery driver holds his helmet

For some of those who arrive, a bike and a phone provide a way to repay debts to gang masters.

There were eight arrests today in Bristol, one or two taken into custody, but it was 12 hours of hard work by a dozen immigration officers and the support of the police.

As two mopeds are pushed onto a low-loader, you can’t help but feel, despite the best intentions, that at the moment, this is a losing battle.

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This flimsy vessel carrying migrants could reach British waters in a few hours’ time

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This flimsy vessel carrying migrants could be hours away from reaching British waters

We see the boat from a distance – the orange of the life jackets reflected in the rising sun.

And as we draw closer, we can make out dozens of people crowded on board as it sets off from the shore, from a beach near Dunkirk.

There is no sign of any police activity on the shore, and there are no police vessels in the water.

Instead, the migrants crammed into an inflatable dinghy are being watched by us, on board a private boat, and the looming figure of the Minck, a French search and rescue ship that soon arrives.

Picture to go with Adam Parsons' eyewitness of migrants crossing on 10/07/25
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Minck, a French search and rescue ship, shadows the boat

The dinghy meanders. It’s not heading towards Britain but rather hugging the coast.

A few of the passengers wave at us cheerfully, but then the boat starts to head back towards the shore.

Picture to go with Adam Parsons' eyewitness of migrants crossing on 10/07/25
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Sky’s Adam Parsons at the scene

As it nears a different beach, we see a police vehicle – a dune buggy – heading down to meet it.

Normal practice is for French police officers to slice through the material of any of these small boats that end up back on shore.

Two police officers get out of the buggy and wait. A police helicopter arrives and circles above, performing a tight circle over the heads of the migrants.

The police think they might be about to go back on to the beach; in fact, these passengers know that most of them are staying put.

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The boat stops a short distance from the shore and four people jump out. As they wade towards the beach, the boat turns and starts to head back out to sea.

We see the two police officers approach these four men and have a brief conversation.

They don’t appear to check the bags they are carrying and, if they do question them about why they left the boat, it is the most cursory of conversations.

In reality, these people probably don’t speak French but they were almost certainly involved in arranging this crossing, which is against the law. But all four walk away, disappearing into the dunes at the back of the beach.

Read more:
Why do so many from around the world try to cross the Channel?
Channel crossings rise by 50% in first six months of 2025

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Why do migrants want to come to the UK?

We follow the boat as it chugs off in the direction of Britain, carrying around 50 people.

The Minck returns to shadowing its progress, but its job is limited to offering help if the boat gets into trouble.

Otherwise, if the engine keeps working, then this flimsy vessel will reach British waters in a few hours’ time.

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