Liz Truss’s tax and spending plans sow consternation among economists

Analysis: experts are lining up to warn that her policies will increase inflation and leave the UK with higher debt

Liz Truss claims her economic agenda of tax cuts and public spending will revitalise the UK economy, but it is not just her rival prime ministerial candidate Rishi Sunak arguing that the measures will be self-defeating.

Economists have lined up to warn that her £30bn package – including the reversal of this year’s national insurance rise, the suspension of green levies on power bills, and the cancellation of a sharp rise in corporation tax in 2023 – will increase inflation and leave the government with higher debt bills.

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Serious Fraud Office chief found to have made errors over major corruption trial

Independent review criticises Lisa Osofsky personally after two businessmen’s convictions were overturned

Britain’s most senior anti-bribery prosecutor has been personally criticised in an independent review that examined flaws in a major corruption trial.

Lisa Osofsky, the director of the Serious Fraud Office (SFO), was judged to have made a “number of mistakes and misjudgments” in her handling of a prosecution which has ultimately resulted in the convictions of two businessmen being overturned.

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Half of Russian spies in Europe expelled since Ukraine invasion, says MI6 chief

Richard Moore says 400 intelligence officers operating under diplomatic cover have been expelled

Half of all the Russian spies operating under diplomatic cover around Europe have been expelled since the start of the war in Ukraine, the chief of MI6 has told a US security conference.

Richard Moore, who heads British foreign intelligence, said the expulsions of about 400 Russian diplomats from countries in continental Europe, including France and Germany, had dramatically reduced the Kremlin’s espionage capabilities.

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Ten UK sex offenders travelled to Poland after Ukraine invasion, says NCA

Ten said they were providing aid, did not inform police of their intent to travel and were asked to leave

Ten British sex offenders travelled to Poland after Russia’s invasion of Ukraine, under the guise of humanitarian aid, according to British police.

In the six weeks after the outbreak of war, the individuals, all of whom had convictions for sex offences, travelled to Poland. The offenders were supposed to inform British police of their intent to travel, a spokesperson for the National Crime Agency said, and declare any convictions upon arrival.

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UK cybersecurity chiefs back plan to scan phones for child abuse images

Heads of GCHQ and NCSC say client-side scanning could protect children and privacy at the same time

Tech companies should move ahead with controversial technology that scans for child abuse imagery on users’ phones, the technical heads of GCHQ and the UK’s National Cybersecurity Centre have said.

So-called “client-side scanning” would involve service providers such as Facebook or Apple building software that monitors communications for suspicious activity without needing to share the contents of messages with a centralised server.

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Rise in insurance fraud fuelled by cost of living crisis, says UK insurer

Zurich UK says fraudulent property claims from 1 January to 31 May 25% higher than in same period in 2021

A growing number of financially squeezed households are “turning to crime” by submitting bogus insurance claims, with data revealing a sharp rise in cases over the past year.

Zurich UK, one of Britain’s biggest insurers, said the cost of living crisis was fuelling the increase in insurance fraud, where people exaggerate or make up claims for items such as jewellery and electrical goods.

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TikTok is fastest growing news source for UK adults, Ofcom finds

App is used by 7% of adults for news with nearly half turning to TikTokers rather than conventional outlets for updates

Watch out Huw Edwards, the TikTokers are coming. The social video platform is the fastest growing news source for UK adults, according to a survey, but nearly half of people using it for current affairs turn to fellow TikTokers rather than conventional news organisations for their updates.

TikTok is used by 7% of adults for news, according to the UK’s communications watchdog, up from 1% in 2020. The growth is primarily driven by young users, with half of its news followers aged 16 to 24.

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Rishi Sunak and Liz Truss reach final two of Tory leadership race – as it happened

The final two will face each other in a TV debate on Monday before weeks of hustings with Conservative members

In an analysis of the yesterday’s public sector pay awards published this morning, the Institute for Fiscal Studies thinktank says the new prime minister will have to decide whether to increase departmental spending budgets, to fund the higher-than-expected pay awards, or to require the awards to be funded from existing budgets, requiring cuts elsewhere. It says:

One option is to top up spending plans to at least partially fund the costs of higher-than-expected pay awards, shoring up departments’ ability to deliver on the government’s public service objectives (such as clearing the NHS backlog). This would come at the cost of higher borrowing and reduced fiscal room for the tax cuts seemingly desired by the entire field of would-be prime ministers.

The other option is to stick to existing spending plans, instead requiring public services to make some painful cuts: to other budgets, to headcount, or to the range and quality of service provision. Reducing the government’s public services ‘offer’ is a coherent response to a series of global economic shocks that make us poorer as a nation. But the government should be honest about what that implies for the NHS, local government, and other public services.

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Tea strain: MPs’ stab at being funny gets steeped in ridicule

Twitter complaints of sexism and dated views pour in after 1922 Committee tries jest with teapot amid Tory leadership contest

Attempts to inject some levity into the Conservative leadership contest on social media fell flat on Wednesday when a photograph tweeted of the 1922 Committee led to criticism that it was sexist and outdated.

With the announcement of the two remaining candidates for the UK prime minister role about to be announced (at 4pm this Wednesday) or at “tea time” as it was described, the photograph showed members of the committee representing Tory backbenchers posing with teacups in hand and a teapot.

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Judge acted unlawfully over hearing on Prince Philip’s will, court told

The Guardian is attempting to overturn decision that prevented media from attending hearing

A leading judge acted unlawfully by authorising a secret court hearing in which he decided that Prince Philip’s will should be kept secret without notifying the media, an appeal court has heard.

On Wednesday the Guardian opened its legal case to overturn the decision that prevented media from attending the hearing, arguing that it was a serious interference with the principle of open justice.

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Anticolonial hero statue to occupy Trafalgar Square fourth plinth from September

Antelope by Samson Kambalu depicts John Chilembwe wearing hat in defiance of colonial rule in Nyasaland, now Malawi

A sculpture of a preacher who was killed in an anticolonialist uprising in what is now Malawi will be unveiled in September on the fourth plinth in Trafalgar Square.

Antelope by Samson Kambalu is the 14th contemporary artwork to be commissioned for public display in the historic central London square.

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UK inflation hits fresh 40-year high of 9.4% as fuel prices rise

Annual rate in June up from May’s 9.1% figure and exceeds analysts’ expectations

Rising petrol and diesel prices for motorists and dearer food pushed Britain’s annual inflation rate to a fresh 40-year high of 9.4% last month.

Figures from the Office for National Statistics showed the government’s preferred measure of the cost of living – the consumer prices index – was up from May’s 9.1% figure.

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Saif Gaddafi: the London life of the former playboy who could lead Libya

A cache of emails and documents sheds light on the would-be ruler’s activities at a time when he was entering public life

The organiser said it would be “the most amazing party ever done in Punta del Este”, a glamorous seaside resort in Uruguay. He offered his client a sound system, a DJ, decorators, fireworks and “naked models swimming in the pool”. The client – a fixer with close ties to the rulers of Libya – turned down the fireworks.

It appears the fixer wired the organiser $34,300 – and asked him for a whole roast lamb to be delivered every day to the party villa between 30 December 2006 and 6 January 2007. He would be joined there by fellow Libyans and his boss, Saif al-Islam Gaddafi, who was due to fly in from South Africa.

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Plantwatch: green allies – the plants that helped UK’s war effort

With medical and food supplies hit, volunteers foraged in the British countryside for useful species


In the second world war tonnes of deadly nightshade leaves and roots were collected to extract atropine, a drug used for eye operations. Foxgloves were harvested for digitalis, the powerful drug used for regulating abnormal heart rhythms – abundant foxgloves found in the Chilterns were rich in digitalis. And in the first world war sphagnum moss found in bogs was used as a highly absorbent and naturally antiseptic wound dressing, and a million dressings a month were sent to military hospitals around the world by the end of the conflict.

These were some of more than 80 wild plant species recruited during the world wars to make up for the vital pharmaceutical supplies that had been imported from Germany but which were cut off in wartime. There were other valuable wild plants, such as rose hips made into a syrup rich in vitamin C, which was in short supply because of severely limited fruit supplies.

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Rising costs pose threat to independent film-making in UK, says BFI

Indie productions struggling to compete with well-financed, studio-backed projects, research shows

There are serious questions about the long-term viability of independent film-making in Britain, the British Film Institute (BFI) has said.

Making Oscar-winning films such as The King’s Speech and Slumdog Millionaire has become all the more difficult, with “significant challenges” putting the sector on a downward trend, research shows.

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Green upgrades could cut UK energy bills by £1,800 a year, finds study

Homeowners can boost property value by average of £10,000, shows research by WWF and ScottishPower

Britons could cut their annual energy bills while slashing their carbon emissions and boosting the price of their home, research has shown.

A study by WWF and ScottishPower has found that installing green technologies could reduce energy bills by up to £1,878 a year and cut home carbon emissions by more than 95% over the lifetime of their installation.

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UK people of colour four times more likely to live in areas ‘at higher risk from heatwaves’

Study found that the most at-risk neighbourhoods were also among the most ethnically diverse and have lower carbon footprints than average

People of colour are four times more likely to live in areas at high risk from heatwaves in the UK as the climate heats up, according to experts.

Researchers at the University of Manchester and Friends of the Earth found one in three people from minority ethnic groups lived in areas most exposed to extreme heat, compared with just one in 12 white people.

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Storms threaten more disruption on heels of record-breaking UK heat

After temperatures reached 40C, scientists warn of such episodes every three years if emissions are not lowered

Hundreds of firefighters battled blazes across England on Tuesday as temperatures surged to a historic high of 40.3C, capping two days of extreme heat that scientists warn is “a wake up call” for the climate emergency.

The temperature is set to drop by up to 10C in some areas on Wednesday, with heavy showers and thunderstorms predicted in parts of northern England and southern Scotland, with the potential for localised flooding, lightning strikes, transport disruption and power cuts.

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UK officials raised concerns over Rwanda policy, documents show

Charity says disclosures in legal case paint picture of home secretary desperate to push policy through

The Home Office pushed through its policy of sending asylum seekers to Rwanda despite repeated concerns from UK government officials, it has emerged from documents submitted to a high court hearing.

The government disclosed the documents, which raise numerous concerns about the Rwanda plans, ahead of a full hearing later this year into the lawfulness of the policy.

On 10 February 2021, the UK high commissioner to Rwanda said the UK should not do a deal with Rwanda because the African country had been accused of recruiting refugees to conduct armed operations in neighbouring countries.

On 18 February 2021, Rwanda was identified as one of 14 countries assessed as presenting substantial issues in relation to asylum systems and human rights. Rwanda received an amber/red rating from the government owing to significant human rights concerns.

A Foreign, Commonwealth and Development Office memo dated 20 May 2021 urged No 10 not to get involved with the Rwanda deal owing to significant human rights concerns.

An internal memo criticised the “limited evidence about whether these proposals will be a sufficient deterrent for those seeking to enter the UK illegally”.

A detailed internal memo that appears to be dated 12 April 2022, the day before a memorandum of understanding was signed between UK and Rwanda, stated that the “fraud risk is very high” in the deal because UK was paying so much money upfront to Rwanda.

A document from the day the memorandum was signed stated that the first group of asylum seekers due to be flown to Rwanda could “test” Rwanda’s refugee determination processes.

When the UK government conducted an independent assessment of Rwanda’s human rights record, the Home Office showed it to Rwanda to comment on the final draft and allowed officials to suggest amendments.

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Tory leadership race live: Kemi Badenoch eliminated as Rishi Sunak tops poll of MPs

Candidates for next prime minister reduced to three ahead of final MPs’ vote on Wednesday

Penny Mordaunt’s supporters do believe that No 10 has removed the whip from Tobias Ellwood to stop him voting for her in the leadership ballot (contrary to what Nadine Dorries claims - see 11.21am), Newsnight’s Nicholas Watt reports.

Nadine Dorries, the culture secretary and Boris Johnson loyalist, has dismissed as “ridiculous” claims that Tobias Ellwood has had the Tory whip removed to stop him voting against the Johnson candidate in the leadership contest. (See 10.08am and 10.45am.)

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