Poorer families risk £1,000 hit from earnings-related benefits rise

Below-inflation rise would save exchequer tenth of £40bn to be given out through tax cuts, says thinktank

If the government raises benefits in line with earnings rather than inflation next year, it would drastically cut the incomes of poorer working-age families, while saving less than a tenth of the cost of recent tax cuts, a leading economic thinktank has calculated.

Such a change, which would mean a significant real-terms cut given that wages are rising at 5.5% with inflation close to 10%, could see the effective income of some families reduced by up to £1,000 a year, the Resolution Foundation said.

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UK’s 13-year housing market boom to end in 2023, surveyors predict

RICS report says rise in repossessions will add to supply while soaring interest rates price buyers out of market

Homeowners will struggle to make mortgage repayments and repossessions will rise next year as soaring interest rates and falling prices mark the end of the UK’s 13-year housing market boom, according to a sobering report from the Royal Institution of Chartered Surveyors (RICS).

The number of inquiries from potential homebuyers fell for a fifth month in a row in September, while sales fell to the lowest level since May 2020 when the housing market all but ground to a halt during the early stages of the coronavirus pandemic, it said.

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UK’s Brexit divorce bill stood at £36.7bn in 2021, EU audit reveals

Settlement was down from £41.7bn, reflecting payments already made to cover UK obligations

The UK’s Brexit “divorce bill” stood at €41.8bn (£36.7bn) in 2021, according to the EU’s official auditors.

The European court of auditors’ annual report revealed that the UK was expected to make €10.9bn in payments to the EU during 2022.

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No 10 warns of ‘difficult decisions’ on public spending despite Truss’s vow to avoid cuts – UK politics live

Statement from No 10 comes straight after PM told MPs she was ‘absolutely’ committed to avoiding public spending cuts

Sajid Javid, the former Tory chancellor, has been speaking at an event organised by the Legatum Institute thinktank this morning. As Chris Smyth from the Times reports, Javid said the turmoil in the markets was caused by the fact that the tax cuts in the mini-budget went “way beyond” what Liz Truss promised during the leadership campaign, and by the fact that her energy bills bailout was also much bigger than expected.

The government has drawn up a plan to cap the unit cost of gas and electricity for two years. Labour proposed its own plan to freeze energy bills, but it only proposed a commitment for six months.

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Only UK parliament can approve a Scottish independence poll, court told

All four nations would have interest in referendum so Westminster has authority, UK government lawyer tells supreme court

Judges sitting in the UK’s highest court have been told Westminster is the ultimate authority on Scotland’s future because Scottish independence is of “critical importance” to the future of the UK.

Sir James Eadie KC, a senior lawyer acting for the UK government, said the union between Scotland and England was “the constitutional foundation of the modern British state”, and mattered to everyone in the UK.

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Liz Truss insists tax cuts will go ahead despite public spending promise

PM suggests borrowing will rise as she surprises MPs by saying she has no plans to cut public spending

Liz Truss has said the Conservatives will push ahead with tax cuts without cutting public spending, instead allowing borrowing to rise over the next few years.

Senior economists had warned on Wednesday that such a strategy, if set out by Kwasi Kwarteng in the chancellor’s fiscal plan at the end of this month, would be likely to spook investors, creating renewed market turmoil.

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First ever amber alert for NHS blood supplies could mean cancelled surgery

Hospitals ordered to protect stocks as they fall to critical level amid shortage of staff to take donations

The NHS has declared its first ever amber alert over blood supplies after they fell to a critically low level, prompting warnings that hospitals in England may be forced to cancel operations to protect their stocks.

An NHS Blood and Transplant (NHSBT) official confirmed that overall blood stocks in NHS England were at three days’ worth and levels of O-type had dropped to less than two days’. The normal standard is to hold at least six days’ worth of blood in stock at all times.

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Maya Jama to succeed Laura Whitmore as Love Island host

DJ and presenter will take over when the reality TV show returns for ninth series early next year

Maya Jama is to succeed Laura Whitmore as the host of Love Island, it has been announced. ITV said Jama would take over when the reality TV show returns for its ninth series early next year.

“I’ve always been such a massive Love Island fan and I’m so excited to be hosting one of the nation’s favourite shows,” Jama said. “I can’t wait to get into the villa to meet all of the islanders.”

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Leah Croucher murder inquiry opened after remains found in Milton Keynes

Rucksack also found near site of 2019 disappearance, but formal identification expected to take some time

Detectives investigating the disappearance of Leah Croucher three and a half years ago have launched a murder investigation after discovering human remains at an address in Milton Keynes.

Thames Valley police made the discovery along with other items, including a rucksack, at a property in Loxbeare Drive, Furzton, on Monday after receiving a tipoff from a member of the public.

In the UK and Ireland, Samaritans can be contacted on 116 123, or email jo@samaritans.org or jo@samaritans.ie. In the US, the National Suicide Prevention Lifeline is 1-800-273-8255. In Australia, the crisis support service Lifeline is 13 11 14. Other international helplines can be found at befrienders.org.

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Lockdown babies slower to meet some milestones, study finds

Irish research shows infants were slightly less likely to speak, point or wave at 12 months but were more likely to crawl

Babies born during the first lockdown met fewer developmental milestones aged one compared with those born before the pandemic – although they may have been faster to crawl, data suggests.

About 600,000 babies were born in Britain, and a further 60,000 in Ireland, during 2020 – when Covid restrictions and mask wearing put a stop to many social activities, including toddler rhyme-times, antenatal group outings and cuddles with grandparents. Since then, parents and psychologists have pondered the impact of such enforced isolation on babies’ social development.

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National Symphony Orchestra of Ukraine announces UK tour

Biggest tour in orchestra’s history reflects boom in interest in Ukrainian culture since Russian invasion

The National Symphony Orchestra of Ukraine (NSOU) has announced its first UK tour in more than 20 years, and the biggest in its history, to reflect venues and audiences’ newfound interest in Ukrainian culture since the Russian invasion.

During the three-week tour the orchestra will play works by Ukrainian composers such as Borys Lyatoshynsky alongside classical greats such as Finland’s Jean Sibelius and Germany’s Richard Strauss across 17 venues in October and November 2023. No Russian music will be played.

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Children’s commissioner demands ambition, not ‘tinkering’, in childcare reform

Dame Rachel de Souza says No 10’s focus on carer-to-child ratios is ‘depressing’ and now is the time to redefine childcare

The children’s commissioner for England has poured cold water on Liz Truss’s proposal to scrap regulations governing child-to-staff ratios in nurseries, describing it as tinkering around the edges and calling instead for ambitious and transformative reform of the childcare sector.

In an interview with the Guardian, Dame Rachel de Souza said children’s safety and wellbeing must be “paramount” in any plans to reform childcare and she said she thought it was “really depressing” if the current conversation about childcare focused purely on ratios.

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One in five families in Liz Truss’s seat would lose out under real-term benefit cuts

Research from the Joseph Rowntree Foundation shows impact of increasing benefits in line with earnings, not inflation

At least one in five working-age families in most UK constituencies – including in Liz Truss’s seat – would lose out by hundreds of pounds on average if real-terms benefit cuts go ahead, a study has found.

The scale of the impact of a below-inflation rise on already struggling households and by extension, local shops and businesses, is revealed in a study by the Joseph Rowntree Foundation (JRF). It would amount to the biggest-ever real terms cut to benefits in a single year.

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UK trade regulators struggling to cope due to poor Brexit planning, MPs say

Commons committee warns there are still shortages of staff to deal with UK’s new status as a third country

UK regulators are struggling to cope with the post-Brexit trading environment because of “poor preparation and planning”, a House of Commons committee investigation has found.

Almost two years after the UK quit the EU, there are still shortages of vets, toxicologists, lawyers and economists to deal with the UK’s new status as a “third country”, found the public accounts committee report, Regulating After EU Exit.

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Power giants to face windfall tax after all as Liz Truss delivers U-turn

Prime minister accused of ‘another screeching U-turn’ having previously rejected calls to impose levy

Renewable power companies will have their revenues capped in England and Wales, after the government bowed to pressure to clamp down on runaway profits.

The announcement late on Tuesday night provoked immediate accusations that Downing Street had performed “another screeching U-turn” – having previously rejected calls to impose a windfall tax on power giants.

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The Bank of England’s lifeboat is in choppy waters with its bond buying

Pensions hedging crisis shows how the City never seems equipped to handle the next big financial hazard

Pension funds have found themselves embroiled in a byzantine world of exotic financial trading that many of them appear to have badly misunderstood.

On Tuesday, a third rescue mission in little more than a fortnight was announced by the Bank of England, which is reprising its role in the 2008 financial crisis as the City’s lifeboat.

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British businessman charged over helping Russian oligarch evade US sanctions

Graham Bonham-Carter was arrested after being accused of funding properties purchased by Oleg Deripaska and expatriating his artwork

A British businessman has been charged with conspiring to violate sanctions imposed by the US government on a Russian oligarch.

The US Department of Justice (DoJ) said Graham Bonham-Carter was arrested on Tuesday after being accused of funding properties purchased by Oleg Deripaska and expatriating his artwork, which Bonham-Carter denies.

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Pound falls sharply against dollar after Bank confirms bond-buying end date

Sterling falls more than a cent to below $1.10 after Andrew Bailey tells pension firms they have ‘got to get this done’

The pound has fallen sharply against the dollar after Andrew Bailey warned the Bank of England would not extend its emergency intervention in financial markets beyond this week, after the turmoil sparked by the government’s mini-budget.

Sterling skidded by more than a cent against the dollar to below $1.10 after the Bank’s governor insisted the £65bn scheme to purchase UK government bonds would not be continued beyond the deadline on Friday.

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Refugee wrongly labelled child murderer says decades of his life wasted

Mayooran Thangaratnam fled Sri Lanka for the UK in 2003 after brutal murder of his father but was repeatedly refused asylum

A refugee who was wrongly recorded as being a child murderer by the Home Office says delays in his case have led to him wasting almost two decades of his life.

Mayooran Thangaratnam, a 41-year-old Tamil from Sri Lanka, fled to the UK in 2003 at the age of 23 and claimed asylum. He provided evidence to the Home Office from media reports that his father, a journalist who passed information to the UN about the Sri Lankan government’s persecution of Tamils, was murdered by Sri Lankan forces and that his life was also in danger.

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Starmer’s chief of staff to leave job as Labour leader unveils major party shake-up – UK politics live

Latest updates: Labour leader hoping to put party on war footing ahead of next election

In the supreme court Dorothy Bain KC, the lord advocate, the Scottish government’s most senior law officer, is now setting out her case.

Here is the 50-page submission to the court setting our her case that was released in July.

Despite the political context of this reference, the questions the court has to decide are limited to technical questions of law. The court will decide them by applying legal principles.

The court will require time after the hearing to prepare its judgement. The hearing is the tip of the iceberg. We also have more than 8000 pages of written material to consider.

Therefore, as usual, is likely to be some months before we get our judgement.

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