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The chancellor will dismiss “gloom” about the prospects for the UK economy and say the government will bring about long-term prosperity in a plan “energised” by Brexit.

Mr Hunt will deliver an upbeat message in a keynote speech today, where he will say the government has a plan to use “British genius and British hard work” to boost economic growth and make the country “the world’s next Silicon Valley”.

He will go on to say the UK is “poised to play a leading role in Europe and across the world in the growth sectors which will define this century”.

According to advance extracts from his speech released by the Treasury, he will also say “declinism about Britain was wrong in the past and it is wrong today”.

Speaking at Bloomberg’s European headquarters in London, Mr Hunt is also expected to continue to resist calls from some Tory MPs for tax cuts to kickstart flagging economic growth.

Instead he will say the UK should exploit the opportunities provided by the UK’s withdrawal from the EU to raise productivity while using the proceeds of growth to support public services.

Mr Hunt will say that some of the “gloom” about the current economic outlook is based on statistics that “do not reflect the whole picture”.

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“Like every G7 country, our growth was slower in the years after the financial crisis than the years before it,” he will say.

“But since 2010, the UK has grown faster than France, Japan and Italy. Since the Brexit referendum, we have grown at about the same rate as Germany.

“If we look further ahead, the case for declinism becomes weaker still. The UK is poised to play a leading role in Europe and across the world in the growth sectors which will define this century.”

Mr Hunt will also say: “Our plan for the years that follow is long-term prosperity based on British genius and British hard work.

“(And) world-beating enterprises to make Britain the world’s next Silicon Valley.”

The chancellor will add: “It is a plan necessitated, energised and made possible by Brexit which will succeed if it becomes a catalyst for the bold choices we need to take.

“Our plan for growth is a plan built on the freedoms which Brexit provides. It is a plan to raise productivity.

“It is a plan to use the proceeds of growth to support our public services at home, to support businesses in the new low-carbon economy and to support democracy abroad.

“It is the right course for our country and the role in the world to which we aspire.”

Mr Hunt will also use his speech to announce that the government is to proceed with reforms to so-called “Solvency II” – an EU directive that governs the amount of funds British insurers are required to hold in reserve.

The Treasury pointed to an estimate by the Association of British Insurers which suggested the changes could unlock up to £100bn of private investment into UK infrastructure and clean energy – such as nuclear power – over the coming decade.

His address will come after a cabinet away day at Chequers yesterday, where Mr Hunt told ministers they must maintain their “disciplined approach” if they are to get inflation under control.

The chancellor is facing calls from some Tory MPs to cut taxes in his budget in March to inject growth into the economy.

But at Chequers, both he and Prime Minister Rishi Sunak emphasised the priority remained inflation which was only predicted to fall because of the “tough decisions” taken to stabilise the economy following former PM Liz Truss’s catastrophic mini-budget tax giveaway.

“The chancellor said it would be necessary to retain this disciplined approach in order to reduce inflation, because it is the greatest driver of the cost of living,” according to a No 10 readout of the meeting.

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Conservatives suffer worst local election results in years – with London and West Midlands mayoral votes still to come

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Conservatives suffer worst local election results in years - with London and West Midlands mayoral votes still to come

The Conservative Party has suffered its worst electoral defeat in years, losing more than half of its councillors who stood for re-election across England.

Labour hailed a “truly historic” result in Rishi Sunak’s own backyard of York and North Yorkshire, where David Skaith smashed Tory Keane Duncan by almost 15,000 votes.

The region, which was electing a mayor for the first time, covers Mr Sunak’s Richmond constituency and is an area Labour has historically struggled to compete in.

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The results as they come in

Speaking at Northallerton Town Football Club, Sir Keir Starmer said: “We’ve had a positive campaign here, and I am very, very proud to stand here as leader of the Labour Party to celebrate this historic victory.

“And it is a historic victory – these are places where we would not have usually had a Labour Party success but we’ve been able to create that success and persuade people to vote for us.”

Sir Keir also renewed his demand that the prime minister call a general election.

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‘This win is not a one-off’ – Starmer

The party also had successes in the North East and East Midlands mayoral votes and in the Blackpool by-election.

There was a sliver of hope for the government, with Lord Ben Houtchen holding on to his role as the mayor of Tees Valley.

Analysis: Labour’s future success is less clear-cut after the local elections

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PM on ‘disappointing’ election results

Appearing alongside Lord Houchen at a victory rally, Rishi Sunak said: “I’ve got a message for the Labour Party too because they know that they have to win here in order to win a general election – they know that.

“They assumed that Tees Valley would stroll back to them – but it didn’t.”

This victory is likely to have quelled talk of rebellion among disenchanted Tory MPs who had threatened to oust the prime minister if the results proved a disaster, but it remains to be seen whether the Tories can hold on to the West Midlands mayoralty.

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Analysis: Local election results

Of the 107 councils that held elections on Thursday, 102 have declared their full results, with the Conservatives losing more than half of the seats it has been defending so far.

Some 468 Tory councillors lost their seats as the party lost control of 12 councils.

Sky’s election coverage plan – how to follow

The weekend: Sophy Ridge will host another special edition of the Politics Hub on Saturday from 7pm until 9pm. And Sunday Morning with Trevor Phillips will take a look back over what’s happened from 8.30am until 10am.

How do I watch?: Freeview 233, Sky 501, Virgin 603, BT 313, YouTube and the Sky News website and app. You can also watch Sky News live here, and on YouTube.

The Electoral Dysfunction podcast with Beth Rigby, Jess Phillips and Ruth Davidsonis out now, and Politics at Jack and Sam’s will navigate the big question of where the results leave us ahead of a general election on Sunday.

You can also follow the latest on our politics page

Labour won control of eight councils as it gained 173 seats, while the Liberal Democrats gained 100 seats, the Greens 67, and Reform UK picked up two.

Read more:
The winners and losers
Charts tell story of Conservative collapse
Who is Labour’s new MP in Blackpool South?

However, Labour suffered setbacks in Oldham and Kirklees, where it lost control of the councils after victories for independent candidates opposing its stance on Gaza.

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Sky News elections analyst Professor Michael Thrasher says although the results are bad news for the Tories, they do not put Labour on course for an overall majority in the Commons in a general election.

Further results are expected over the weekend, including key mayoral contests in London and the West Midlands.

Labour’s Sadiq Khan is attempting to secure re-election in London, while Conservative Andy Street is defending his position in the West Midlands.

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Sky News general election projection

Rumours had swirled in London since the polls closed that Mr Khan could have suffered a shock defeat to Conservative Susan Hall, however Sky News understands both parties now believe the incumbent will remain in City Hall.

The results of those elections are expected to arrive at 10pm in London and 2.15pm in the West Midlands.

Lord Ben Houchen and Prime Minister Rishi Sunak celebrate in Teesside following his re-election as Tees Valley Mayor. Picture date: Friday May 3, 2024.
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Lord Ben Houchen’s re-election on Teesside was a crumb of comfort for the Tories. Pic: PA

Other results still to be announced include council elections in the South and West of England where the Liberal Democrats and Greens hope to make progress.

There are also metro mayoral elections yet to declare a winner in Greater Manchester, Liverpool City, North Tyneside, South Yorkshire and West Yorkshire.

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Sky News projection: Labour on course to be largest party – but short of overall majority

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Sky News projection: Labour on course to be largest party - but short of overall majority

After counting more than two million votes cast in the English council elections, a provisional National Share Estimate shows the Conservatives on just 26% of the vote, a 19-point drop compared with the 2019 general election and one of its worst ever performances in any set of local elections.

Labour‘s vote rises from 33% in 2019 to 35% on the current estimate, after more than half the wards have now declared.

The Liberal Democrats are on 16%, an increase of five percentage points on the 2019 election. This follows a familiar pattern where the party does better in council elections than in parliamentary elections.

Local election results: Relief for Sunak in key mayoral race

Other parties, such as the Greens, Reform, and independents, are projected to be on 22%.

This figure assumes also that votes for the nationalist parties in Scotland and Wales, places where no local elections took place, are unchanged from the previous election. The same condition applies to the 18 seats in Northern Ireland.

National estimated share

Assuming these changes in vote share occur uniformly across each of the newly drawn parliamentary constituencies in place for the next general election, Labour wins 294 seats and would overtake the Conservatives – but falls 32 seats short of gaining an overall majority.

The Conservatives fall from 372 seats on the new boundaries to just 242 seats, a projected loss of 130 seats. The Liberal Democrats rise from eight to 38 seats.

As is usual in such projections, there are individual constituencies where the count of local votes shows a party “winning” a constituency when the uniform swing suggests otherwise.

HOC projection

Two such examples are Aldershot and Plymouth Moor View, both of which fall to Labour when we aggregate local votes in wards lying within those constituencies.

Employing the same procedure, however, Labour’s seat tally suffers when local votes in constituencies such as Blackburn and Oldham West were “won” by independents when actual votes are counted.

Labour easily retains these constituencies when uniform swing is considered.

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The large vote for others highlights a growing tendency in local elections for some voters to support a range of smaller parties.

This year that tendency is exaggerated still further with the swing away from Labour towards independents in certain parts of the country.

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UK plans to ramp up weapons production for Ukraine and Western defence as Lord Cameron reveals envoy will oversee ‘national priority’

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UK plans to ramp up weapons production for Ukraine and Western defence as Lord Cameron reveals envoy will oversee 'national priority'

The UK will appoint a new envoy to oversee a plan to ramp up the production of weapons and ammunition, which is now a “national priority”, the foreign secretary has revealed.

Lord Cameron, speaking on a visit to Ukraine, also underlined the importance of supporting the Ukrainian war effort against Russia, warning that the world was at an “absolutely critical tipping point” and Kyiv must prevail or else Europe faced a “very dangerous future”.

However, he cautioned against an idea from French President Emmanuel Macron to consider sending NATO troops to Ukraine to join the fight if Russia’s Vladimir Putin achieves a breakthrough, saying that such a move would be a “dangerous escalation”.

“I don’t think it is right to have NATO soldiers killing Russian soldiers,” the foreign secretary said in an interview in the western city of Lviv on Friday, having met President Volodymyr Zelenskyy and other top ministers in Kyiv on Thursday.

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Moscow rages over Cameron remarks

In this photo provided by the Ukrainian Presidential Press Office, Ukrainian President Volodymyr Zelenskyy, left, shakes hands with Britain's Foreign Secretary David Cameron in Kyiv, Ukraine, Thursday, May 2, 2024. (Ukrainian Presidential Press Office via AP)
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Ukrainian President Volodymyr Zelenskyy, left, shakes hands with Lord Cameron this week. Pic: Ukrainian Presidential Press Office/AP

Lord Cameron made the two-day trip to reaffirm the UK’s commitment to Ukraine, which most recently includes a promise to transfer more of the British military’s own stockpiles of weapons, including precision-guided bombs and air defence missiles.

The UK has also promised at least £3bn worth of military assistance annually.

But Western nations are failing to deliver munitions to Ukraine’s frontline as quickly as Russia is rearming its military, with Russian troops gaining ground in the east in recent months.

President Putin put his economy on a war footing when he launched his full-scale invasion of Ukraine in February 2022 – something NATO allies are only slowly starting to move towards.

Rishi Sunak said last week he would increase UK defence spending to 2.5% of national income by 2030 – claiming this equated to an additional £75bn in investment.

He also said he was putting the UK defence industry on a “war footing” and added £10bn of new funding would be dedicated to domestic munitions production over the next decade.

Read more:
UK cities ‘increasingly vulnerable’ to attacks from the air
Is the UK preparing properly amid rising risk of war?

Lord Cameron met Lviv's mayor during his visit to Ukraine
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Lord Cameron met Lviv’s mayor during his visit to Ukraine

‘We need to build up our own stocks’

Asked how Britain could force defence companies like BAE Systems, Thales and Babcock – that have to answer to their shareholders, not the government – to increase production lines at the required rate and scale without some kind of legislation to force them to act, Lord Cameron revealed the plan for a new envoy for defence production.

“There is a specific munitions strategy of £10bn which will do exactly what you are talking about – the ramping up of production,” he said.

“But crucially I think we can go further than that in terms of a specific defence envoy with the ability from the prime minister to go out and make sure we are doing those muti-year deals with the defence suppliers because we need not only to provide more weapons to Ukraine, we need to build up our own stocks.

“So this is very important, it is a national priority.

“The prime minister is giving the lead and I think the industry will respond.”

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Pushed on whether the new envoy – whose identity has not yet been revealed – would be the modern-day equivalent of someone like Lord Beaverbrook, who was tasked with expanding aircraft production during the Second World War, Lord Cameron said: “It is the 21st century so there won’t be a Lord Beaverbrook.”

But he signalled that the envoy’s ability to approach industry with a commitment to fund multi-year contracts for munitions would be key – and could also drive down cost.

“It is possible to go to the defence contractors and say to them: ‘You are not going to get the price you might have hoped for year after year after year because we are going to make a contract with you over the coming years to make sure we replenish our ammunition, our artillery, our long rage fires, our missiles’ – those crucial things vital for Ukraine but also vital for our own defence.”

As for why the government needed to appoint a specific envoy to this role, Lord Cameron said: “You need I think to have that direct line to the prime minister to make sure we are making this the national priority it clearly is.”

Cameron warns of ‘dangerous future’

Turning to the war in Ukraine, the foreign secretary said Europe faced “two futures” – one in which Ukrainian forces, backed by Western weapons, are able to push out the Russian invaders and secure what he called a “just peace”.

“That is a footing on which you can see great security and prosperity for us and for Europe,” he said.

But he warned: “A future in which Putin is successful and Ukraine is pushed back is I think a very dangerous future.”

Nations such as Moldova and even the NATO states of the Baltics would be worried that President Putin might turn his attention towards them next, Lord Cameron said.

In addition, the authoritarian regimes in Iran and China would be watching closely.

“I think we are at an absolutely crucial tipping point in global affairs,” Lord Cameron added.

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