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The chancellor has told banks “in no uncertain terms” they must pass on higher interest rates to savers.

Jeremy Hunt faced pressure from both Labour and his own Conservative backbenchers on the matter during a statement about support to mortgage holders agreed on Friday.

Labour’s Dame Angela Eagle – a Treasury minister under Gordon Brown – called on the banks to stop their “profiteering”.

The debate is over the speed at which rising interest rates are applied to savings accounts.

MPs wanted to know what was being done to ensure people’s nest eggs were growing as fast as their mortgage repayments are going up, as both are impacted by the Bank of England’s base rate.

Dame Angela noted that banks had made more than “£4bn extra” this quarter due to paying out below the current interest level but charging borrowers close to the Bank of England base rate.

The Bank of England last week hiked the base rate from 4.5% to 5%.

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Hunt: ‘We want to do all we can’

According to figures from Moneyfactscompare.co.uk, a typical easy-access savings rate was 2.35% – and the average easy-access ISA rate was 2.47%.

The chancellor met with senior figures from financial institutions like Lloyds, NatWest, Barclays and Virgin Money at the end of last week.

Mr Hunt told Dame Angela: “It is taking too long for the increases in interest rates to be passed on to savers, particularly with instant access accounts – the rates are more frequently being passed on to people who have fixed notice accounts, but she’s right there was an issue there.

“I raised that issue in no uncertain terms with the banks when I met them, and I’m working on a solution because I think it is an issue that needs resolving.”

Conservative MP Mark Pritchard also voiced concerns.

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What’s going on with mortgages?

He asked the chancellor what could be done to pass on interest rate increases to savers.

Mr Hunt told his party colleague that the passing on of rate hikes “can definitely happen better than it is now”.

Another Conservative MP, Robin Walker, called on Mr Hunt to “encourage the banks to pass on interest rates to savers”.

He said: “Will he recognise, though, that with so many people owning their properties outright and not having a mortgage on them today, actually increasing the payment for people who save is a very important element to tackling inflation.

“Can I wish him every success in his further conversations to encourage the banks to pass on interest rates to savers.”

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Chancellor Jeremy Hunt replied: “If more people are encouraged to save, that is technically counter-inflationary and is something to be encouraged.”

People spending money rather than save can cause inflation, as more people looking to buy things increases demand and therefore puts up prices.

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Why hastily declared ceasefires tend to be fragile

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Why hastily declared ceasefires tend to be fragile

Ceasefires that are suddenly declared tend to be pretty fragile.

Stable ceasefires usually require a lot of preparation so that everyone on both sides knows what is supposed to happen, and – more importantly – when.

And they normally agree on how it will be monitored so one side cannot seize a quick advantage by breaking it suddenly.

Israel-Iran live updates: Trump swears live on camera as he rages at Israel and Iran

An ambulance burned by Israeli attacks stands on a street, amid the Iran-Israel conflict, in Tehran, Iran, June 23, 2025. Majid Asgaripour/W
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An Israeli attack in Tehran, Iran, ahead of the ceasefire. Pic: Majid Asgaripour/WANA via Reuters

Without such preparations, and sometimes even with them, ceasefires will tend to be breached – perhaps by accident, perhaps because one side does not exercise full control over its own forces, perhaps as a result of false alarms, or even because a third party – a guerrilla group or a militia, say – choose that moment to launch an attack of their own.

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Timeline of Israel-Iran conflict so far

The important question is whether a ceasefire breach is just random and unfortunate, or else deliberate and systemic – where someone is actively trying to break it.

Either way, ceasefires have to be politically reinforced all the time if they are to hold.

Read more from Sky News:
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Furious Trump lashes out at Israel and Iran

All sides may need to rededicate themselves to it at regular intervals, mainly because, as genuine enemies, they won’t trust each other and will remain naturally suspicious at every twitch and utterance from the other side.

This is where an external power like the United States plays a critical part.

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If enemies like Israel and Iran naturally distrust each other and need little incentive to “hit back” in some way at every provocation, it will take US pressure to make them abide by a ceasefire that may be breaking down.

Appeals to good nature are hardly relevant in this respect. An external arbiter has to make the continuance of a ceasefire a matter of hard national interest to both sides.

And that often requires as much bullying as persuasion. It may be true that “blessed are the peacemakers”.

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Five key takeaways from Volodymyr Zelenskyy’s interview with Sky News

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Five key takeaways from Volodymyr Zelenskyy's interview with Sky News

Volodymyr Zelenskyy has given a wide-ranging interview to Sky News in which he was asked about the prospect of Russia attacking NATO, whether he would cede land as part of a peace deal and how to force Vladimir Putin to the negotiating table.

The Ukrainian president spoke to chief presenter Mark Austin.

Here are the five key takeaways from their discussion.

NATO ‘at risk of attack’

Mr Zelenskyy said plans for NATO members to increase defence spending to 5% of GDP by 2035 are “very slow” and warned Russia could attack a NATO country within five years to test the alliance.

“We believe that, starting from 2030, Putin can have significantly greater capabilities,” he said. “Today, Ukraine is holding him up, he has no time to drill the army.”

But while Mr Zelenskyy conceded his ambition to join NATO “isn’t possible now”, he asserted long term “NATO needs Ukrainians”.

US support ‘may be reduced’

Asked about his views on the Israel-Iran conflict, and the impact of a wider Middle East war on Ukraine, Mr Zelenskyy accepted the “political focus is changing”.

“This means that aid from partners, above all from the United States, may be reduced,” he said.

“He [Putin] will increase strikes against us to use this opportunity, to use the fact that America’s focus is changing over to the Middle East.”

On the subject of Mr Putin’s close relationship with Iran, which has supplied Russia with attack drones, Mr Zelenskyy said: “The Russians will feel the advantage on the battlefield and it will be difficult for us.”

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Ukrainian president Volodymyr Zelenskyy speaking to Mark Austin
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Ukraine’s president Volodymyr Zelenskyy speaking to Mark Austin

Trump and Putin ‘will never be friends’

Mr Zelenskyy was sceptical about Mr Putin’s relationship with Donald Trump.

“I truly don’t know what relationship Trump has with Putin… but I am confident that President Trump understands that Ukrainians are allies to America, and the real existential enemy of America is Russia.

“They may be short-term partners, but they will never be friends.”

On his relationship with Mr Trump, Mr Zelenskyy was asked about whether he felt bullied by the US president during their spat in the Oval Office.

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“I believe I conducted myself honestly. I really wanted America to be a strong partner… and to be honest, I was counting on that,” he said.

In a sign of potential frustration, the Ukrainian president added: “Indeed, there were things that don’t bring us closer to ending the war. There were some media… standing around us… talking about some small things like my suit. It’s not the main thing.”

Read more:
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Analysis: Putin exploits Trump

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Putin and peace talks

Mr Zelenskyy was clear he supported both a ceasefire and peace talks, adding that he would enter negotiations to understand “if real compromises are possible and if there is a real way to end the war”.

But he avoided directly saying whether he would be willing to surrender four annexed regions of Ukraine, as part of any peace deal.

“I don’t believe that he [Putin] is interested in these four regions. He wants to occupy Ukraine. Putin wants more,” he said.

“Putin is counting on a slow occupation of Ukraine, the reduction in European support and America standing back from this war completely… plus the removal of sanctions.

“But I think the strategy should be as follows: Pressure on Putin with political sanctions, with long-range weapons… to force him to the negotiating table.”

Russia ‘using UK tech for missiles’

On Monday, Mr Zelenskyy met Sir Keir Starmer and agreed to share battlefield technology, boosting Ukraine’s drone production, which Mr Zelenskyy described as a “strong step forward”.

But he also spoke about the failure to limit Russia’s access to crucial technology being used in military hardware.

He said “components for missiles and drones” from countries “including the UK” were being used by Russian companies who were not subject to sanctions.

“It is vitally important for us, and we’re handing these lists [of Russian companies] over to our partners and asking them to apply sanctions. Otherwise, the Russians will have missiles,” he added.

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Zelenskyy interview: An embattled wartime leader struggling to make himself heard

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Zelenskyy interview: An embattled wartime leader struggling to make himself heard

He’s an embattled wartime leader struggling to make himself heard.

For Ukrainian President Volodymyr Zelenskyy the war in Iran could not have come at a worse time.

Suddenly, the world’s attention is on a different conflict and – most crucially so – is the attention of the most powerful man in the world, Donald Trump.

Read the interview here

Sky's Mark Austin meets Volodymyr Zelenskyy
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Sky’s Mark Austin meets Volodymyr Zelenskyy

But this is a big 24 hours for Zelenskyy, a meeting with Sir Keir Starmer in Downing Street, followed by the NATO summit in The Hague.

When I sat down with Mr Zelenskyy in the last few hours, he had two main issues on his mind.

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Firstly, the proposed spending pledge by NATO countries of 5% of GDP by 2035 – that he said was too slow and warned that Putin would be ready with a new army within five years.

He said the Russian leader would likely attack a NATO country within a few years to test Article 5.

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Zelenskyy visits King at Windsor Castle

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Western brands on Russian shelves despite sanctions

Then he was on to sanctions, which, he told me, were not working.

Countries, including the UK, were allowing dual-use components used in the production of drones and missiles to still get into Russian hands, and that must be blocked.

He also still insisted there would be no negotiations without a ceasefire.

This war is not going well for Ukraine right now.

Nearly three-and-a-half years into it, the fighting goes on, and Mr Zelenskyy appears to be a defiant president determined to see it through.

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