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The UK’s economic outlook will be “challenging” for the next two years, Jeremy Hunt says.

The chancellor presented his autumn statement to parliament on Thursday, littered with stealth taxes and curbs on government spending amounting to £55bn in an attempt to plug the black hole in the public finances.

But the independent Office for Budget Responsibility (OBR) warned the disposable incomes of UK households would fall by 7.1% over the next two years – the lowest level since records began in 1956/7, and taking incomes down to 2013 levels.

Politics live: Tax burden reaches highest level since WWII

Speaking to Sky News, Mr Hunt said it was “a difficult time for everyone” but tax hikes and spending cuts are needed to get the economy “on an even keel”.

“Over the next two years it is going to be challenging,” he said.

“But I think people want a government that is taking difficult decisions, has a plan that will bring down inflation, stop those big rises in the cost of energy bills and the weekly shop, and at the same time is taking measures to get through this difficult period.”

More on Autumn Statement 2022

The chancellor insisted that his autumn statement is a “very Conservative package” following criticism from some Tory MPs.

“The Office for Budgetary Responsibility said yesterday that what we’re doing is actually recession shallow, it’s saving jobs,” he said.

“But what I would say to my Conservative colleagues is there is nothing Conservative about spending money that you haven’t got, there is nothing Conservative about not tackling inflation, there is nothing Conservative about ducking difficult decisions that put the economy on track.

“And we’ve done all of those things and that is why this is a very Conservative package to make sure we sort out the economy.

“None of this is easy, but it’s the right thing to do.”

Former business secretary Jacob Rees-Mogg accused the chancellor of taking the “easy option” in Thursday’s autumn statement rather than bearing down harder on public spending.

He said the country needed lower taxes to drive up growth.

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Hunt questioned over autumn statement

Probed on how it can be fair that pensions will go up by inflation when public sector workers will not see pay increase alongside prices, Mr Hunt said the elderly do not have the ability to work more to improve their take home pay.

Well, I think the truth is, first of all, pensioners have retired. They don’t have the ability to work more or work longer hours in the way that people of working age do,” the chancellor said.

“But I think it is wrong to say that only the poorest pensioners are feeling the squeeze at the moment.

“I think this is something that’s affecting everyone and I think it’s right.

“Having made that promise to pensioners in our manifesto that we would have this triple lock, I think this is exactly the kind of tough time that people want it to kick in.

“And so that’s why I think it’s the right thing to do.”

The chancellor added: “We’re not pretending that this isn’t going to be a difficult time for everyone. But what we have is a plan.”

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’12 weeks of Conservative chaos’ – Rachel Reeves

In yesterday’s autumn statement, Mr Hunt announced economic policies which the government hopes will help to rebalance the nation’s finances after the economic turmoil which followed former chancellor Kwasi Kwarteng’s mini-budget.

These included:

• Income tax thresholds being frozen for two more years until April 2028

• Top level of income tax now being paid on earnings over £125,140 instead of £150,000

• Pensions triple lock will remain – with pensioners to see a 10.1% increase in weekly payments in line with inflation

• Benefits to also rise in line with inflation – by 10.1%

• Energy cap to rise from £3,000 a year to £2,500 a year beyond April

• UK minimum wage to rise from £9.50 to £10.42 an hour for those aged over 23

• Windfall tax on oil giants’ profits to rise from 25% to 35% and be extended by two years until March 2028

• Additional cost of living payments of £900 for those on benefits and £300 for pensioners

• Spending on public services in England to rise slower than planned

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As a result of 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 election, due in 2024.

Treasury analysis suggests around 55% of households will be worse off as a result of the measures.

Read more: Jeremy Hunt’s autumn statement had all the hallmarks of a Labour budget

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”.

Ms Reeves told Sky News she is “really worried about what’s going to happen to people’s living standards next year from April” and said a Labour government would have done more “to alleviate some of that pressure on the ordinary working person”.

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What does the autumn statement mean?

As Mr Hunt took part in the broadcast round Friday morning, economic think-tank the Resolution Foundation published analysis suggesting his autumn statement’s tax rises would deliver a 3.7% income hit to typical households.

The foundation said the statement had piled further pressure on the “squeezed middle” and that the focus on “stealthy” tax threshold freezes to raise revenue would extend far beyond high earners.

The think tank also found that the budget would reverse much of the government’s levelling up agenda.

“The £15 billion of cuts to capital investment announced yesterday will undo 80% of the remaining increases in public investment announced by previous chancellor Rishi Sunak, which underpinned the levelling-up agenda,” it said.

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Peter Sullivan who has spent 38 years in jail for murder has conviction quashed

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Peter Sullivan who has spent 38 years in jail for murder has conviction quashed

A man who has spent 38 years in prison for murder has had his conviction quashed – but insisted he is “not angry” or “bitter”.

The Court of Appeal ruling in the case of Peter Sullivan ends what’s thought to be the longest-running miscarriage of justice in British history.

He was found guilty of the 1986 murder of 21-year-old Diane Sindall, who had been beaten, raped and left in an alleyway in Bebington, Merseyside.

Diane Sindall. Pic: Merseyside Police/PA Wire
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Diane Sindall was murdered in 1986. Pic: Merseyside Police/PA Wire

Mr Sullivan – who was jailed in 1987 – had always maintained his innocence and first tried to challenge his conviction in 2016, but the Criminal Cases Review Commission (CCRC) declined to refer the case, and he lost his own appeal bid in 2019.

Two years later, he again asked the CCRC to refer his case and new tests, ordered by the commission, revealed Mr Sullivan’s DNA was not present on samples preserved at the time.

At a hearing on Tuesday, lawyers for Mr Sullivan told the Court of Appeal in London that the new evidence showed that Ms Sindall’s killer “was not the defendant”.

Mr Sullivan attended the hearing via video link from HMP Wakefield, listening to his conviction being quashed with his head down and arms folded before appearing to weep and putting his hand to his mouth.

A relative in court also wept as the judgment was read out.

‘The truth shall set you free’

In a statement following the ruling, Mr Sullivan – now 68 – said: “I lost my liberty four decades ago over a crime I did not commit.

“What happened to me was very wrong, but does not detract that what happened… was a heinous and most terrible loss of life.”

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Peter Sullivan case explained

He added: “It is said the truth shall set you free. It is unfortunate that it does not give a timescale as we advance towards resolving the wrongs done to me.

“I am not angry, I am not bitter.

“I am simply anxious to return to my loved ones and family as I’ve got to make the most of what is left of the existence I am granted in this world.”

Outside court, Mr Sullivan’s sister Kim Smith said she was “ecstatic” at seeing her brother’s conviction quashed.

She told reporters: “We lost Peter for 39 years and at the end of the day, it’s not just us; Peter hasn’t won, and neither has the Sindall family. They’ve lost their daughter, they are not going to get her back.

“We’ve got Peter back and now we’ve got to try and build a life around him again. We feel sorry for the Sindalls and it’s such a shame this has had to happen in the first place.”

Mr Sullivan's sister, Kim Smith, said she was "ecstatic" about her brother's conviction being quashed. Pic: PA
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Mr Sullivan’s sister Kim Smith said she was ‘ecstatic’ after the ruling. Pic: PA

Barristers for the Crown Prosecution Service (CPS) said the DNA evidence was “sufficient fundamentally to cast doubt on the safety of the conviction” and that there was “no credible basis on which the appeal can be opposed”.

Lord Justice Holroyde, sitting with Mr Justice Goss and Mr Justice Bryan, said in light of the new DNA evidence “it is impossible to regard the appellant’s conviction as safe” as he quashed the conviction.

Hunt for DNA match

Merseyside Police has confirmed detectives are now “carrying out an extensive investigation in a bid to identify who the new DNA profile belongs to, as to date there is no match on the national DNA database”.

Detectives are also contacting individuals identified in the original investigation to request voluntary DNA samples.

That initial investigation was the largest in the force’s history and, for many officers, the “frenzied” nature of the attack made it the worst case they had ever encountered.

Ms Sindall, who was engaged to be married, had just left her shift as a part-time barmaid at a pub in Bebington when her small blue van ran out of petrol.

Diane Sindall
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Diane Sindall was killed after finishing her shift as a barmaid

She was walking to an all-night garage when she was attacked.

Mr Sullivan, who was 29 at the time and described as a loner, initially denied the attack but later signed a confession.

Questions have since been raised about whether he had proper legal representation during police interviews. Evidence related to bite marks on Ms Sindall’s body, considered crucial at the trial, has also since been called into question.

At the time of Mr Sullivan’s trial in 1987, DNA technology was not available and subsequent requests for new tests had been refused.

‘Nobody felt safe’

On the grass verge close to where Ms Sindall’s body was found, a memorial stone has been placed in memory of her and “and all of our sisters who have been raped and murdered”.

Her murder sent a chill through the community and led to the creation of the Rape and Sexual Abuse Centre on Merseyside. “Nobody felt safe, it was a very scary time,” said the centre’s Jo Wood.

A memorial to Diane Sindall
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A memorial to Ms Sindall on a grass verge near where her body was found

She says the uncertainty has resurfaced. “There’s someone out who killed Diane Sindall,” said solicitor Ms Myatt.

“The biggest fear we’ve got is of the unknown and now we’ve got an unknown. We don’t know who it might be. Who knows who this person is? Are we going to encounter him?

“We might have encountered him, we don’t know, we just know that he’s out there.”

Ms Sindall’s family told Sky News they did not want to comment on the case.

Mel John, landlord of the pub where Ms Sindall worked on the night of her death, said: “I’m glad he’s being released if he’s innocent. It has been a long time.”

Mr Sullivan is also aware, his solicitor says, of the impact on Ms Sindall’s family.

“We are very sensitive and respectful to the fact that there is a victim, Diane Sindall and her family, that will be affected by this process,” the solicitor said.

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Tory MP Patrick Spencer charged with sexual assaults at Groucho Club

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Tory MP Patrick Spencer charged with sexual assaults at Groucho Club

Tory MP Patrick Spencer has been charged with two counts of sexual assault at London’s Groucho Club.

The charges follow two alleged incidents involving two different women at the private members’ club, in Soho, in August 2023, the Crown Prosecution Service (CPS) said.

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Mr Spencer – who is the Conservative MP for Central Suffolk and North Ipswich – will appear at Westminster Magistrates’ Court on Monday 16 June.

A Conservative Party spokesman said Mr Spencer, 37, has been suspended by the Tories and had the whip withdrawn.

The Groucho Club in Soho, London. Pic: PA
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The Groucho Club in Soho, London. Pic: PA

The Metropolitan Police said he was charged after attending a voluntary interview at a London police station on 13 March this year.

Frank Ferguson, head of the CPS special crime and counter terrorism division, said: “Following a review of the evidence provided by the Metropolitan Police Service, we have authorised two counts of sexual assault against Patrick Spencer MP.

“The charges follow two alleged incidents involving two separate women at the Groucho Club in central London in August 2023.

“The Crown Prosecution Service reminds all concerned that criminal proceedings against this defendant are now active and that he has the right to a fair trial.

“It is extremely important that there should be no reporting, commentary or sharing of information online which could in any way prejudice these proceedings.”

Mr Spencer was first elected to Parliament last year with a majority of 4,290.

It is understood he was asked not to attend the parliamentary estate by the Tory chief whip while police enquiries were ongoing.

A Conservative Party spokesman said: “The Conservative Party believes in integrity and high standards. We have taken immediate action.

“Patrick Spencer MP has been suspended from the Conservative Party, and the whip withdrawn, with immediate effect.

“The Conservative Party cannot comment further on an ongoing legal case.”

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The Groucho Club, in Dean Street, opened in 1985 and became a renowned meeting place for A-list celebrities and others, including actors, comedians and media executives.

The club was named after the comedian and actor Groucho Marx, who reportedly once said he would refuse to join any club that would have him as a member.

It was originally set up as a more relaxed alternative to traditional gentlemen’s clubs, according to the venue’s website, which adds that members should be in the creative industry “and share the club’s maverick spirit”.

Before becoming an MP, Mr Spencer worked in finance for private equity firm IPGL, a company chaired by his father, former Conservative Party treasurer Lord Michael Spencer.

He later took a job at the Centre for Social Justice think thank before becoming a senior adviser at the Department for Education.

He made his maiden speech in the Commons in July last year during a debate on the MPs’ code of conduct relating to second jobs, during which he said the “most important thing to the people across my constituency” was “restoring a sense of moral probity and public spiritedness to our political system”.

Sky News has contacted Mr Spencer for comment.

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Man arrested over arson attacks after fire at Sir Keir Starmer’s house

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Man arrested over arson attacks after fire at Sir Keir Starmer's house

A 21-year-old man has been arrested over a series of arson attacks, police have said, after a fire at a house owned by Prime Minister Sir Keir Starmer.

The suspect was arrested in the early hours of Tuesday on suspicion of arson with intent to endanger life, according to the Metropolitan Police.

He remains in custody.

Emergency services were called to fires at the doors of two homes in north London within 24 hours of each other – one just after 1.35am on Monday in Kentish Town and the other on Sunday in Islington. Both properties are linked to Sir Keir.

Sir Keir Starmer house
Metropolitan Police
Fire Pic: LNP
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Police are investigating links to several fires, which they are treating as suspicious. Pic: LNP

Detectives were also checking a vehicle fire last Thursday on the same street as the Kentish Town property to see whether it is connected.

Part of the area was cordoned off as police and London Fire Brigade (LFB) investigators examined the scene.

Neighbours described hearing a loud bang and said police officers were looking for a projectile.

A police officer is seen in Kentish Town, north London. Police are investigating a fire at Sir Keir Starmer's house in north London. Picture date: Monday May 12, 2025.
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Emergency services were deployed to the scene in Kentish Town, north London, on Monday. Pic: PA

A forensics officer is seen in Kentish Town, north London. Police are investigating a fire at Sir Keir Starmer's house in north London. Picture date: Monday May 12, 2025.
Image:
Pic: PA

The prime minister is understood to still own the home, which was damaged by fire on Monday, but nobody was hurt. Pictures showed scorching at the entrance to the property.

Sir Keir used to live there before he and his family moved into 10 Downing Street after Labour won last year’s general election. It is believed the property is being rented out.

In the early hours of Sunday, firefighters dealt with a small fire at the front door of a house converted into flats in nearby Islington, which is also linked to the prime minister.

Sir Keir Starmer house
Metropolitan Police
Fire Pic: LNP
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Counter-terror police are leading the investigation. Pic: LNP

In a statement, police said: “As a precaution and due to the property having previous connections with a high-profile public figure, officers from the Met’s Counter Terrorism Command are leading the investigation into this fire.

“Enquiries are ongoing to establish what caused it. All three fires are being treated as suspicious at this time, and enquiries remain ongoing.”

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The prime minister’s official spokesman said: “I can only say that the prime minister thanks the emergency services for their work and it is subject to a live investigation. So I can’t comment any further.”

Kemi Badenoch has condemned the suspected arson attacks.

Writing on X, the Conservative leader said: “This is a shocking incident. My thoughts are with the prime minister and his family. No one should face these sorts of threats, let alone people in public service.

“It’s an attack on our democracy and must never be tolerated.”

Shadow justice secretary Robert Jenrick told Sky News on Tuesday: “It’s important that the prime minister and anyone in public life has their family, their homes, protected.

“It is absolutely wrong, disgraceful, for any individual to take the kind of action that we saw against the prime minister’s home.”

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