What happened
The UK's upcoming Budget is expected to include tax rises to address a £35bn funding gap, according to the Institute of Fiscal Studies (IFS). The gap is attributed to high inflation and the UK's defence spending pledge. Meanwhile, the Russia-Ukraine war continues, with Russia attacking a power plant in Ukraine just hours after US President Donald Trump claimed to have brokered a ceasefire on energy sites.
Ukrainian President Volodymyr Zelensky has stated that he was unaware of the ceasefire deal, and Russia has continued to strike energy sites. The US has threatened to cut off weapons supplies to Ukraine as part of efforts to stop it attacking Russian energy infrastructure.
In other news, the UK government is preparing to slash funds for heat pump subsidies to increase defence spending. The programme is not expected to be abolished, but hundreds of millions of pounds could be cut from its £2.7bn budget.
