As a result of the Mr Hunt’s announcements, the tax burden in the UK will also now be at its highest since the Second World War, and there are stark warnings about increased bills and higher unemployment as the recession takes hold – as well as predictions the economy will still shrink 1.4% in 2023.
But most of the difficult decisions on spending have been postponed until after the next general, due in 2024.
Both the Resolution Foundation and the Institute for Fiscal Studies will lay out their own analysis of the plans later this morning, but Treasury analysis already suggests around 55% of households will be worse off as a result of the measures.
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Meanwhile, Labour has blamed “12 weeks of Conservative chaos” and “12 years of Conservative economic failure” for the bleak outlook.
Shadow chancellor Rachel Reeves accused the government of forcing the UK economy into a “doom loop where low growth leads to higher taxes, lower investments and squeezed wages, with the running down of public services”.
During his statement, Mr Hunt distanced himself from the philosophy of Liz Truss’s short-lived government – which promised billions of unfunded tax cuts and sent the markets into turmoil.
Yet, while the chancellor froze tax thresholds, lowered the point the higher rate of income tax kicks in and extended the windfall tax on energy firms (the latter, a Labour policy) amid other measures, he also promised more spending on the NHS, social care and education, as well as re-committing to uprating pensions and benefits in line with inflation.
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Hunt questioned over autumn statement
Mr Hunt also pledged to continue support for energy bills from April next year – though raising the cap to £3,000 for the average household.
Speaking to reporters after the announcement, he said the government was “helping every bit as much as we can” to reduce the impact of the recession on households and businesses, as well as protecting public services.
But he pointed to those spending decisions, adding: “As soon as the recession is behind us, then, yes, we will consolidate to make sure that we’re balancing our books – and I think that’s what people would want.”
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’12 weeks of Conservative chaos’ – Rachel Reeves
While many in his party were supportive of the “difficult decisions”, the chancellor made in light of the energy crisis, the war in Ukraine and the fallout from the pandemic – as well as Ms Truss’s tenure in office – other Tories warned against hiking taxes while the country is in a recession.
Former party leader Sir Iain Duncan Smith told Sky News: “My worry is they’ve estimated that they will get certain revenues from their tax rises [but] those tax rises could end up damaging the economy and they won’t get the revenues thereafter, which means they’ll be back again looking for more.
“[There] is every chance that tax increases don’t yield what you think they will, so this could lead to a deeper recession. We need to watch that very carefully and see where it goes.”
And former Wales Secretary David Jones told the Telegraph that the if high taxes continue, “the prospects of Tories winning the next election… are going to become more remote”.
Opposition parties were also quick to condemn the plan, with Liberal Democrat MP Sarah Olney saying it will “cause untold pain for everyone”, and the SNP’s Kirsty Blackman saying it “ushered in a new era of damaging austerity cuts”.
MPs will debate the measures in the Commons on Monday and Tuesday next week.
The Metropolitan Police has said 890 people were arrested at a protest against the banning of Palestine Action as a terror group on Saturday – including 17 on suspicion of assaulting officers.
A total of 857 individuals were arrested in Parliament Square in Londonunder the Terrorism Act 2000 over alleged offences, the force said.
It added that a further 33 were arrested for other offences, with 17 of those detained on suspicion of assaulting officers. The Met Police did not say what the other 16 arrests were for.
Deputy Assistant Commissioner Claire Smart, who led the policing operation, thanked Met Police officers for their “professionalism and tireless work despite the level of abuse that they faced”.
Image: Pic: PA
Ms Smart said: “The violence we encountered during the operation was coordinated and carried out by a group of people, many wearing masks to conceal their identity, intent on creating as much disorder as possible.
“Many of those individuals have now been arrested and we have begun securing charges.”
Defend Our Juries, which organised the demonstrations, insisted the rally was “the picture of peaceful protest”.
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‘Do I look like a terrorist?’ nurse at protest asks Sky News
Ms Smart also claimed that the “contrast between this demonstration and the other protests we policed yesterday, including the Palestine Coalition march attended by around 20,000 people, was stark”.
She added: “You can express your support for a cause without committing an offence under the Terrorism Act or descending into violence and disorder, and many thousands of people do that in London every week.
“We have a duty to enforce the law without fear or favour. If you advertise that you are intending to commit a crime, we have no option but to respond accordingly.”
Defend Our Juries previously estimated 1,500 had gathered for the rally on Saturday, where many held signs saying: “I oppose genocide. I support Palestine Action.”
Image: Pic: PA
Image: Pics: PA
The group has been banned as a terror group since 5 July after MPs voted overwhelmingly in favour of the move proposed by then-home secretary Yvette Cooper, making it illegal to express support for the group.
It came shortly after two Voyager aircraft suffered around £7m worth of damage at RAF Brize Norton in Oxfordshire on 20 June.
Defence Secretary John Healey told Sky’s Sunday Morning With Trevor Phillips that he expects newly appointed Home Secretary Shabana Mahmood to be “just as tough” as her predecessor on Palestine Action.
He said: “I expect her to defend the decision the government has taken to proscribe Palestine Action because of what some of its members are responsible for, and were planning for.”
The Met Police previously said the consequences for those charged under the Terrorism Act include a maximum sentence of six months’ imprisonment.
The Home Office is set to appeal against the High Court ruling allowing Palestine Action’s co-founder, Huda Ammori, to proceed with a legal challenge against the government over the group’s ban.
Defence Secretary John Healey has told Sky News the government is considering using military barracks to house asylum seekers, as an estimated 1,000 people arrived in the UK on small boats on Saturday.
“We are looking at the potential use of military and non-military sites for temporary accommodation for the people who come across on these small boats that may not have a right to be here,” he told Sunday Morning With Trevor Phillips.
“I’m looking really hard at it. I’m looking at it with the Home Office, and I recognise that the loss of confidence of the public over recent years in Britain’s ability to control its borders needs to be satisfied. And we have to deal with this problem with the small boats,” Mr Healey added.
Fresh small boat arrivals were spotted on Sunday, after an estimated 1,000 people arrived on Saturday – when French authorities said 24 people were rescued while trying to cross the Channel.
The figures compare to a relatively recent lull in crossings. In the previous seven days (30 August to 5 September) the Home Office recorded no small boat arrivals.
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Zia Yusuf, head of policy at Reform UK, told Trevor Phillips that Britain has become a “soft touch” on migration, before suggesting between 15 and 25 detention sites will need to be built to detain asylum seekers. He described these as “purpose-built modular steel structures”.
“We can look around the world at where things have worked and worked well. President Trump stood up 3,000 detention beds in eight days. That was this year in the state of Florida – using steel modular structures,” Mr Yusuf said.
He added that the president’s crackdown has significantly reduced illegal border crossings and suggested the same could happen in the English Channel to deter migrants.
“These are unarmed, largely men in dinghies, we don’t need a particularly formidable military to be able to take them to a detention centre,” he said.
Image: Zia Yusuf from Reform UK said he believes Britain has become a “soft touch” on migration
Officials believe this contributed to the lowest number of boats crossing the Channel in August since 2019.
But, despite the 3,567 arrivals in August being the lowest since 2021, when looking across the whole of 2025, the figure of 29,003 is the highest on record for this point in a year.
“The context to all of this is a huge shake-up at the Home Office, and I think something of an admission that [Yvette] Cooper, despite her years of experience, could not get a grip… of this problem of people coming across the Channel in small boats and then ending up in asylum hotels,” she added.
As Sky’s Home EditorJason Farrell writes, Ms Mahmood has become the home secretary of a country where the national flag is being hoisted as a symbol of dissatisfaction – with anger at the arrival of desperate migrants crossing the Channel in small boats.
Sir Keir’s sweeping changes
Sir Keir Starmer has announced sweeping changes to his ministerial team in the Home Office as his government works to get a grip of illegal migration to the UK.
Here’s a list of who has been moved, besides the home secretary.
Dame Angela Eagle, who was border security and asylum minister, has been moved to the environment department.
Dame Diana Johnson, who was policing and crime minister, has been moved to the Department for Work and Pensions (DWP).
She has said in a post on X that it was an “honour” to work with police officers, and she is “delighted” to be moving to the DWP.
Dan Jarvis has been given a role in the Cabinet Office, in addition to his post as security minister in the Home Office.
And Sarah Jones, who was industry minister, has been moved to the Home Office.
Prince Harry will carry out a rare public engagement outside of London this week, as he heads back to the UK for a visit with “no negativity”.
After a tumultuous five years, the Duke of Sussex and his team are hoping this may be a trip that can help begin to “put the trials and tribulations behind them” and herald a reset, according to sources close to the royal.
It’s been confirmed the duke will be in Nottingham on Tuesday, visiting a youth organisation that he’s maintained strong personal contact with since moving to America.
Harry, who is no longer a working royal, is set to carry out a run of engagements and make a substantial donation to BBC Children in Need to support work tackling violence affecting young people.
Image: Prince Harry, last seen in the UK in April 2025. Pic: AP Photo/Alberto Pezzali
It is not known if he will meet with his estranged brother, the Prince of Wales, or his father, the King.
The King is currently in Balmoral with the Queen, and so far, no engagements have been announced for the couple this coming week.
The monarch last met his youngest son face-to-face more than 18 months ago, when the duke made a transatlantic dash to see his father after hearing about his cancer diagnosis. The pair spent less than an hour together.
‘There is no negativity with this trip,’ say sources close to Harry
Harry’s past visits to the UK, since stepping away from royal life, have often been shrouded in secrecy with any public moments taking place in London. This will also be the first time in a while that he isn’t returning due to a court case.
Sources close to Harry suggest that already means “there is no negativity with this trip” saying that “Harry is really looking forward to coming back to do what he loves”, focusing on his charity work.
“It’s a moment to put the trials and tribulations of the last few years behind us,” they added.
But Harry and his team are well aware that there will be considerable interest in whether or not he will see his father, the King. Hopes of reconciliation and a potential meeting were ramped up earlier in the summer when members of Harry’s team were photographed meeting with the King’s communications secretary for the first time. Both sides aren’t commenting on any possible contact between Harry and his father this week.
When Harry arrives in London on Monday the King will be in Scotland, marking Queen Elizabeth’s death and his Accession Day. But it’s understood that Harry is due to be in the UK for most of the coming week. The strain in the relationship between father and son was emphasised by Harry in an interview he gave after he lost his legal challenge against the Home Office over his security.
We also understand that his team have tried to “pack in as much as possible” in the coming days, with a number of private meetings and public visits to other organisations with which he has longstanding links.
We are told he will not be meeting lawyers.
Ultimately it appears that Prince Harry and his team are hoping this visit will have a different, more upbeat tone, compared to other recent trips to the UK, in what feels like a reset for the duke.
It has been suggested that he may have wanted to make the trip longer but as he’s “financially responsible” for the visit, including the travel and security bill for him and his team, his time here comes at a considerable cost.
Harry last visited the Community Recording Studio (CRS) in Nottingham’s St Ann’s area to mark World Mental Health Day in 2019, just two months before he and the Duchess of Sussex announced they were stepping down as senior working royals and moving to North America.
Image: The Duke of Sussex last visited the Community Recording Studio in Nottingham in 2019. Pic: PA
He is planning to hold a private briefing with Children in Need, the Police and Crime Commission, the CRS and community outreach group Epic Partners in Nottingham, stage informal catch-ups with some of the young people he met before, and watch performances from CRS artists and make a short speech.
Harry appears to be focusing on his philanthropic ventures while his wife, Meghan, works on her lifestyle brand, As Ever. She is not expected to join him on the trip to the UK.
Image: Meghan is not expected to join the duke on his trip. Pic: Netflix
Senior aides to the King and the duke were pictured together in London this July in what was reported to be an initial step towards opening channels of communication between the two sides.
Harry levelled repeated accusations at the King, Queen, William and Kate in his Oprah interview, Netflix documentary, and memoir Spare. But he outlined hopes for a “reconciliation” with his family in a BBC interview in May.
His sit-down with the BBC came in the wake of a court battle over his security in the UK. His level of security was changed after the couple stepped down as senior royals.