LONDON: The British government on Monday axed almost all of its debt-fueled tax cuts unveiled last month to avert fresh markets chaos, in a humiliating climbdown for embattled Prime Minister Liz Truss.
The shock move by new finance chief Jeremy Hunt, parachuted into the job on Friday to replace sacked Kwasi Kwarteng, leaves Truss’ position in a precarious state after a series of embarrassing U-turns.
Hunt estimated the tax changes would raise about £32 billion ($36 billion) per year, after economists estimated the government faced a £60-billion black hole. He also warned of tough spending cuts.
The chancellor of the exchequer said no government could control markets — but stressed his action would give certainty over public finances and help secure growth.
“The prime minister and I agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago,” Hunt told parliament, flanked by a grim-faced Truss.
“I want to be completely frank about the scale of the economic challenge we face,” he added, detailing the domestic and international headwinds confronting Britain.
The chancellor also announced the formation of an economic advisory council, featuring four experts outside of government.
Hours earlier, he had used a brief televised statement to announce the dramatic reversals to nervous markets, conceding last month’s budget from his predecessor had harmed the public purse.
“The most important objective for our country right now is stability,” Hunt had noted.
Hunt scrapped plans to axe the lowest rate of income tax, and curbed the government’s flagship energy price freeze — pulling the plug in April instead of late 2024.
After April, his department will “review” its energy support package, he said.
A proposed reduction in shareholder dividend tax was also binned, along with planned tax-free shopping for tourists and a freeze on alcohol duty.
The announcement comes as Truss’ governing Conservative party tanks in the opinion polls amid the reversals and Britain’s worsening cost-of-living crisis.
Truss fired her close friend Kwarteng on Friday after their recent tax-slashing budget sparked markets chaos — fueling intense speculation over her political future one month after taking office.
“No government can control the markets but every government can give certainty about the sustainability of public finances,” Hunt added Monday.
His action sent the British pound soaring against the dollar and euro, while bond yields dipped.
Last month’s notorious budget had sent bond yields spiking and the pound collapsing to a record dollar-low on fears of rocketing UK debt.
Tax reductions financed via huge borrowing were the centerpiece of last month’s ill-fated budget.
Truss had already staged two embarrassing budget U-turns, scrapping tax cuts for the richest earners and on company profits, and is now facing calls to resign even from her own MPs.
“There will be more difficult decisions I am afraid, on both tax and spending, as we deliver our commitment to get debt falling as a share of the economy over the medium term,” Hunt cautioned.
“All departments will need to redouble their efforts to find savings, and some areas of spending will need to be cut.”
Hunt already stated that he was not taking anything off the table” amid speculation of cutbacks on areas like defense, hospitals and schools.
He met over the weekend with the governor of the Bank of England, Andrew Bailey, and the head of the Debt Management Office for talks.
In the wake of the earlier turmoil, the BoE launched emergency buying of UK government bonds — a policy that ended Friday.
The budget furor has reportedly sparked a plot to oust the prime minister.
UK media reported senior Conservative MPs were plotting to unseat Truss, aghast at her short tenure.
Monday’s latest massive U-turn comes after Truss was elected Tory leader on a tax-slashing platform that analysts dubbed “Trussonomics.”
“That sound you can hear is the death knell for Trussonomics, with the vast majority of her tax cutting plans now consigned to the bin,” said Laura Suter, head of personal finance at stockbroker AJ Bell.
“People have had yogurt in their fridge that’s lasted longer than some of the government’s planned tax cuts,” she added.
In two weeks’ time, Hunt will unveil his medium-term fiscal plan alongside independent economic forecasts from the Office for Budget Responsibility.
But the main opposition Labour party, riding high in the polls, said the ruling Tories were responsible for “chaos and fiasco.”
“This is a Tory crisis, made in Downing Street, but ordinary working people are paying the price,” its finance spokeswoman Rachel Reeves told parliament.
UK axes ‘almost all’ budget tax cuts in humiliation for Truss
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UK axes ‘almost all’ budget tax cuts in humiliation for Truss
- Monday’s U-turn comes after Truss was elected Tory leader on a tax-slashing platform that analysts dubbed ‘Trussonomics’
- The Labour party, riding high in the polls, said the ruling Tories were responsible for ‘chaos and fiasco’
Don’t let deep sea become ‘wild west’, Guterres tells world leaders
- United Nations Secretary General Antonio Guterres said on Monday the world could not let the deepest oceans “become the wild west,” at the start in France of a global summit on the seas
World leaders are attending the UN Ocean Conference in Nice as nations tussle over contentious rules on mining the seabed for critical minerals and the terms of a global treaty on plastic pollution.
US President Donald Trump has brought urgency to the debate around deep-sea mining, moving to fast-track US exploration in international waters and sidestepping global efforts to regulate the nascent sector.
The International Seabed Authority, which has jurisdiction over the ocean floor outside national waters, is meeting in July to discuss a global mining code to regulate mining in the ocean depths.
Guterres said he supported these negotiations and urged caution as countries navigate these “new waters on seabed mining.”
“The deep sea cannot become the wild west,” he said, to applause from the plenary floor.
Many countries oppose seabed mining, and France is hoping more nations in Nice will join a moratorium until more is known about the ecological impacts of the practice.
French President Emmanuel Macron said a moratorium on deep-sea mining was “an international necessity.”
“I think it’s madness to launch predatory economic action that will disrupt the deep seabed, disrupt biodiversity, destroy it and release irrecoverable carbon sinks — when we know nothing about it,” the French president said.
The deep sea, Greenland and Antarctica were “not for sale,” he said in follow up remarks to thunderous applause.
Brazilian President Luiz Inacio Lula da Silva called for “clear action” from the seabed authority to end a “predatory race” among nations seeking critical minerals on the ocean floor.
“We now see the threat of unilateralism looming over the ocean. We cannot allow what happened to international trade to happen to the sea,” he said.
Macron said a global pact to protect marine life in international waters had received enough support to become law and was “a done deal.”
The high seas treaty struck in 2023 requires ratifications from 60 signatory countries to enter into force, something France hoped to achieve before Nice.
Macron said about 50 nations had ratified the treaty and 15 others had formally committed to joining them.
This “allows us to say that the high seas treaty will be implemented,” he said.
Other commitments are expected on Monday in Nice, where around 60 heads of state and government have joined thousands of business leaders, scientists and civil society activists.
On Monday, the United Kingdom is expected to announce a partial ban on bottom trawling in half its marine protected areas, putting the destructive fishing method squarely on the summit agenda.
Bottom trawling involves huge fishing nets indiscriminately dragging the ocean floor, a process shockingly captured in a recent documentary by British naturalist David Attenborough.
Macron said on Saturday that France would restrict trawling in some of its marine protected areas but was criticized by environment groups for not going far enough.
On Sunday, French environment minister Agnes Pannier-Runacher hinted at “important announcements” during Nice about the creation of new marine protected areas.
Samoa led the way this past week, announcing that 30 percent of its national waters would be under protection with the creation of nine marine parks.
Just eight percent of global oceans are designated for marine conservation, despite a globally agreed target to achieve 30 percent coverage by 2030.
But even fewer are considered truly protected, as some countries impose next to no rules on what is forbidden in marine zones or lack the finance to enforce any regulations.
Nations will face calls to cough up the missing finance for ocean protection.
Small island states are expected in numbers at the summit to demand money and political support to combat rising seas, marine trash and the plunder of fish stocks.
The summit will not produce a legally binding agreement at its close like a climate COP or treaty negotiation.
But diplomats and other observers said it could mark a much-needed turning point in global ocean conservation if leaders rose to the occasion.
“We say to you, if you are serious about protecting the ocean, prove it,” said President Surangel Whipps Jr of Palau, a low-lying Pacific nation.
Italians head to polls in referendum on citizenship and labor, but vote risks sinking on low turnout
Italians head to polls in referendum on citizenship and labor, but vote risks sinking on low turnout
- Opinion polls published in mid-May showed that only 46 percent of Italians were aware of the issues driving the referendums
ROME: Italians headed to the polls Monday on the second and final day of referendums that would make it easier for children born in Italy to foreigners to obtain citizenship, and on providing more job protections. But partial data showed a low turnout, well below the required 50 percent plus one threshold, risking to invalidate the vote.
Campaigners for the change in the citizenship law say it will help second-generation Italians born in the country to non- European Union parents better integrate into a culture they already see as theirs.
Partial data from Italy’s Interior Ministry published at 2100 GMT on Sunday showed that national turnout stood at 22.7 percent, just over half of the 41 percent registered at the same time of the day in the latest comparable referendum held in 2011. The polling stations close later Monday at 1300 GMT.
The new rules, if passed, could affect about 2.5 million foreign nationals who still struggle to be recognized as citizens.
The measures were proposed by Italy’s main union and left-wing opposition parties. Premier Giorgia Meloni showed up at the polls on Sunday evening but didn’t cast a ballot — an action widely criticized by the left as antidemocratic, since it won’t contribute to reaching the necessary threshold to make the vote valid.
“While some members of her ruling coalition have openly called for abstention, Meloni has opted for a more subtle approach,” said analyst Wolfango Piccoli of the Teneo consultancy based in London. ”It’s yet another example of her trademark fence-sitting.’’
Rights at stake
Supporters say this reform would bring Italy’s citizenship law in line with many other European countries, promoting greater social integration for long-term residents. It would also allow faster access to civil and political rights, such as the right to vote, eligibility for public employment and freedom of movement within the EU.
“The real drama is that neither people who will vote ‘yes’ nor those who intend to vote ‘no’ or abstain have an idea of what (an) ordeal children born from foreigners have to face in this country to obtain a residence permit,” said Selam Tesfaye, an activist and campaigner with the Milan-based human rights group Il Cantiere.
Activists and opposition parties also denounced the lack of public debate on the measures, accusing the governing center-right coalition of trying to dampen interest in sensitive issues that directly impact immigrants and workers.
In May, Italy’s AGCOM communications authority lodged a complaint against RAI state television and other broadcasters over a lack of adequate and balanced coverage.
Opinion polls published in mid-May showed that only 46 percent of Italians were aware of the issues driving the referendums. Turnout projections were even weaker for a vote scheduled for the first weekend of Italy’s school holidays, at around 35 percent of around 50 million electors, well below the required quorum.
“Many believe that the referendum institution should be reviewed in light of the high levels of abstention (that) emerged in recent elections and the turnout threshold should be lowered,” said Lorenzo Pregliasco, political analyst and pollster at YouTrend.
Some analysts note, however, that the center-left opposition could claim a victory even if the referendum fails on condition that the turnout surpasses the 12.3 million voters who backed the winning center-right coalition in the 2022 general election.
Ukraine says Russia launched 479 drones in the war’s biggest overnight drone bombardment
- Ukraine’s air defenses destroyed 277 drones and 19 missiles in mid-flight
KYIV, Ukraine: Russia launched 479 drones at Ukraine in the war ‘s biggest overnight drone bombardment, the Ukrainian air force said Monday.
Apart from drones, 20 missiles of various types were fired at different parts of Ukraine, according to the air force, which said the barrage targeted mainly central and western areas of Ukraine.
Ukraine’s air defenses destroyed 277 drones and 19 missiles in mid-flight, an air force statement said, claiming that only 10 drones or missiles hit their target.
It was not possible to independently verify the claim.
Russia’s aerial attacks usually start late in the evening and end in the morning, because drones are harder to spot in the dark.
Russia has relentlessly battered civilian areas of Ukraine with Shahed drones during the more than 3-year war. The attacks have killed more that 12,000 Ukrainian civilians, according to the United Nations.
Russia says it targets only military targets.
‘Better if he was dead’: Kenyan mother’s search for son year after protests
- Susan Wangari has lost count of the morgues, hospitals and police stations she has visited in search of her son, who went missing at the height of Kenya’s mass protests last June
NAIROBI: Susan Wangari has lost count of the morgues, hospitals and police stations she has visited in search of her son, who went missing at the height of Kenya’s mass protests last June.
She last saw Emmanuel Mukuria, 24, on the morning of June 25, 2024, the day that thousands of Kenyan youths thronged the streets of Nairobi and stormed parliament in protest at planned tax rises and corruption.
“It would be better if my son were dead; at least I could visit his grave,” she told AFP.
Rights groups say at least 60 people were killed during the protests in June and July, and more than 80 abducted by the security forces since then, with dozens still missing.
Mukuria’s friends say he was arrested during the protests in the city center, where he worked as a minibus tout.
“We do not have peace in this house,” his mother, 50, told AFP during a visit to her single-room home in the Kasarani slum area.
“I sleep lightly at night in case he comes knocking at my window like he always did,” she said.
“Every time we hear that bodies have been found somewhere, we are anxious to know whose they are.”
Two men told her they shared a cell with Mukuria, but they are too afraid to speak publicly about their ordeal.
One was only released in February, giving her hope that her son is still alive in captivity.
“They told me they were beaten and questioned about the protests. They were being asked who paid them to participate,” Wangari said.
Last month, President William Ruto, in a clear admission that security forces had engaged in kidnappings, said all those abducted during the protests had been “returned to their families.”
Rights groups say dozens are still missing and police have shown little progress in investigating the disappearances despite Ruto claiming an “accountability mechanism” was put in place.
Questioned by AFP, the president’s office said the police were “handling the brief,” while a police spokesman referred AFP back to the president’s office.
The police spokesman said they had no information on Mukuria’s case. An officer-in-charge at the station where Wangari reported him missing said the matter was still under investigation.
Many other families are still dealing with the aftermath of the violence.
Rex Masai, 29, was the first to die during the protests, shot and killed in the city center on June 20.
The inquest into his death is still dragging on.
“We are hoping for the best but we are not near the truth,” Masai’s mother Gillian Munyao told AFP at her home, where a photo of her dreadlocked son hangs on the wall.
She found her son lying lifeless in a pool of blood at a clinic where he was taken that day.
The state prosecutor has said a lack of witnesses has delayed progress in the case.
One potential witness was scared off for fear he might be “forcibly disappeared” by the police, Munyao said.
Hussein Khalid, head of rights group Vocal Africa, blamed a “lack of cooperation by the authorities.”
“When you get evidence, the unfortunate bit is you have to take it to the police themselves,” he said.
He lost count of the number of funerals he attended after the protests, estimating between 20 and 30.
“Was it necessary to unleash this kind of brute force against young, innocent Kenyans?” he said.
Politicians have shown little interest in accountability or learning from the unrest.
“People were killed, we sympathized, we moved on,” Bashir Abdullahi, a member of the ruling coalition, told parliament during a debate on the protests last month.
But for victim’s families, the search for justice “means a lot,” said Masai’s father, Chrispin Odawa.
“The wound will never heal,” he said.
As the UN Ocean Conference opens in France, a push to turn promises into protection
- A major focus of the summit is the push to ratify the High Seas Treaty, which would enable conservation in international waters
- France claims progress but has been criticized for weak enforcement in many protected areas. The conference will also address climate funding
NICE:The third UN Ocean Conference opens Monday as pressure mounts for nations to turn decades of promises into real protection for the sea.
The summit comes as just 2.7 percent of the ocean is effectively protected from destructive extractive activities, according to the nonprofit Marine Conservation Institute. That’s far below the target agreed under the “30x30” pledge to conserve 30 percent of land and sea by 2030.
Atop this year’s agenda is ratification of the High Seas Treaty. Adopted in 2023, the treaty would for the first time allow nations to establish marine protected areas in international waters, which cover nearly two-thirds of the ocean and are largely ungoverned.
“It’s the Wild West out there with countries just fishing anywhere without any sort of regulation, and that needs to change,” said Mauro Randone, regional projects manager at the World Wildlife Fund’s Mediterranean Marine Initiative. “The high seas belong to everyone and no one practically at the same time, and countries are finally committing to establish some rules.”
The ocean is critical in stabilizing Earth’s climate and sustaining life. It generates 50 percent of the oxygen we breathe, absorbs around 30 percent of carbon dioxide emissions and captures more than 90 percent of the excess heat caused by those emissions. Without a healthy ocean, experts warn, climate goals will remain out of reach.
The treaty will only come into force once 60 countries ratify it. As of Monday, just 32 countries had. Advocates hope UNOC can build enough momentum to cross the threshold, which would allow for the first official Oceans Conference of Parties.
“Two-thirds of the ocean is areas beyond national jurisdiction — that’s half our planet,” said Minna Epps, director of global ocean policy the International Union for Conservation of Nature. “We cannot possibly protect 30 percent of the ocean if it doesn’t include the high seas.”
South Korea, France and the European Union have championed the treaty, but most large ocean nations have yet to ratify it, including the rest of the G20. Thousands of attendees are expected in Nice — from delegates and heads of state to scientists and industry leaders. The United States has yet to confirm a formal delegation.
Moving from protections on paper to something real
Beyond new commitments, the conference highlights the growing gap between marine protection declarations and real-world conservation.
France, the conference co-host, claims to have surpassed the 30 percent target for marine protection. But environmental groups say only 3 percent of French waters are fully protected from harmful activities like bottom trawling and industrial fishing.
In 2024 alone, more than 100 bottom-trawling vessels were recorded spending over 17,000 hours fishing within France’s six marine nature parks, according to ocean advocacy group Oceana.
“The government declares these as protected areas, but this is a lie,” said Enric Sala, founder of National Geographic Pristine Seas marine reserve project. “Most of it is political box-ticking. It’s all paper parks.”
That criticism is echoed across the continent. A new World Wildlife Fund report found that although more than 11 percent of Europe’s marine area is designated for protection, just 2 percent of EU waters have management plans in place.
Fabien Boileau, director of marine protected areas at France’s Office for Biodiversity, acknowledged the presence of bottom trawling in French protected areas, but said it was part of a phased strategy.
“In France, we made the choice to designate large marine protected areas with relatively low levels of regulation at first, betting that stronger protections would be developed over time through local governance,” he said. “Today, we’re gradually increasing the number of zones with stricter protections within those areas.”
France’s Port-Cros: A model for conservation
While many marine protected areas struggle with enforcement, others show what real protection can achieve. Off the southern coast of France, Port-Cros National Park is one of the oldest marine reserves in the Mediterranean. There, strict anchoring bans have allowed vast seagrass meadows to grow undisturbed. Massive groupers patrol rocky outcrops, brightly colored nudibranchs munch on algae, and schools of large corbs glide through the shallows, undisturbed by fishing lines.
“Thanks to the protections that have been in place since 1963, we can observe species that are much larger than elsewhere in the Mediterranean and at a much higher density than in other areas,” said Hubert Flavigny, manager of Mio Palmo dive center in Hyeres, France.
Still, such examples remain exceptions.
Advocates say industrial fishing lobbies continue to resist stricter protections, despite evidence that well-managed reserves boost long-term fisheries through the “spillover effect,” whereby marine life flourishes in nearby waters.
“Protection is not the problem — overfishing is the problem,” said Sala. “The worst enemy of the fishing industry is themselves.”
Frustrated by government inaction, environmental groups have taken enforcement into their own hands. In May, Greenpeace dropped 15 limestone boulders into France’s Golfe du Lion, aiming to physically block bottom trawling in a marine area that has long been designated for protection. The protected zone was established in 2008 to preserve deep-sea ecosystems, yet 12 trawlers continue to operate there, despite scientific warnings of ecological collapse, according to activist group MedReAct. The Golfe is now one of the most overfished areas in the Mediterranean.
What will UNOC deliver?
The conference will feature 10 panels on topics such as blue finance, sustainable fisheries and plastic pollution. Deep sea mining is expected to feature in broader discussions, while small island states are likely to use the platform to advocate for increased climate adaptation funding. The outcome of these discussions will form the basis of the Nice Ocean Action Plan — a declaration of voluntary commitments to be adopted by consensus and presented at the United Nations in New York this July.
“There cannot be a healthy planet without a healthy ocean,” said Peter Thomson, UN special envoy for the ocean. “It’s urgent business for us all.”
