‘Axis of upheaval’ adds urgency to review of UK defence spending

Deepening military and trade links between Russia, China, Iran and North Korea are making western powers uneasy

Gen Roly Walker, the head of the British army, has described it as the “axis of upheaval”. George Robertson, the new head of the UK’s defence review, has called the countries the “deadly quartet”. Either way, less than a month into a Labour government, an emerging geopolitical alignment is being highlighted as a threat.

The concerns centre on the growing military and trade links between Russia, China, Iran and North Korea. Though the four are some way from a cold war-style bloc acting in concert, they have enhanced bilateral ties since Moscow’s invasion of Ukraine in a manner that has fuelled anxiety among defence officials and policymakers.

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Winter fuel payments to be restricted as Reeves says there is £22bn spending shortfall – UK politics live

Chancellor suggests budget, on 30 October, will involve tax rises and cuts to spending and benefits

Downing Street has refused to comment on a report saying junior doctors are being offered a pay rise worth about 20% over two years.

In a story for the Times, Steven Swinford reports:

The British Medical Association’s (BMA) junior doctors committee has recommended an offer that includes a backdated pay rise of 4.05 per cent for 2023-24, on top of an existing increase of between 8.8 per cent and 10.3 per cent.

Junior doctors will be given a further pay rise of 6 per cent for 2024-25, which will be topped up by a consolidated £1,000 payment. This is equivalent to a pay rise of between 7 per cent and 9 per cent.

As we’ve said before, we’re committed to working to find a solution, resolving this dispute, but I can’t get into detailed running commentary on negotiations.

We’ve been honest with the public and the sector about the economic circumstances we face. But the government is determined to do the hard work necessary to finally bring these strikes to an end.

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Hospital and road projects face cuts to plug £22bn fiscal hole, Reeves says

Social care and winter fuel payments also targeted as chancellor accuses Tories of covering up scale of fiscal shortfall

Rachel Reeves has scrapped the social care cap and curbed winter fuel payments, as well as announcing big cuts to hospital and road projects, as she seeks to plug what she called a £22bn hole in public spending that was “covered up” by the Conservative government.

In a statement to the Commons that mixed detailed economics and partisan politics, the chancellor justified the cuts with the repeated mantra: “If we cannot afford it, we cannot do it.”

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UK should stop arming Israel after ICJ advisory ruling, top lawyer says

Exclusive: Philippe Sands KC says non-binding opinion will nevertheless be seen as ‘authoritative statement of law’

The UK should stop arming Israel in order to comply with the historic advisory opinion by the UN’s top court that member states should not “render aid or assistance” to the occupation of the Palestinian territories, a lawyer who represented Palestine has said.

In a broad and damning ruling published this month, the international court of justice (ICJ), found that Israel’s settlement policies and occupation of the territories were in breach of international law. It also said UN member states were under an obligation to neither recognise the occupation as lawful nor abet it.

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Rachel Reeves paves way for cuts and tax rises to fill shortfall left by Tories

Chancellor will announce pause in work on a number of infrastructure projects, saying Conservatives ‘covered up’ true state of finances

Rachel Reeves will lay the ground for cuts to public spending, tax rises and delays to some major infrastructure projects on Monday as she sets out the toxic inheritance the Labour government inherited from the Tories.

She is expected to pause work on a string of infrastructure projects, including Boris Johnson’s flagship plan to build 40 new hospitals and the proposed two-mile road tunnel bypassing Stonehenge.

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Tories ‘deliberately covered up’ true state of public finances, says minister

Steve Reed hits out at Conservatives’ handling of public services as chancellor prepares to detail ‘£20bn black hole’

The last Conservative government “deliberately covered up” the true state of public finances, a cabinet minister has said, as the chancellor prepares to detail a “£20bn black hole” in the public finances.

The environment secretary, Steve Reed, said his cabinet colleagues “always knew” the inheritance from the Tories was “going to be bad”, but that since coming to office they had found “additional pressures” that had not been disclosed by the Tories.

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‘Will the kids eat or not?’ In Keir Starmer’s constituency, families struggle with poverty

Alongside prosperity in Holborn and St Pancras are thousands of households for whom lifting the two-child benefit cap could mean an end to hunger

• The two-child benefit cap: what is it, does it work and how much would it cost to scrap it?

It’s been one of Cat Onyac’s better days. Her two children are concentrating on their crochet project, sitting in the sunshine at HvH Arts in north London. And they’ve eaten. “All the children get a hot meal,” she says.

The family is at a summer scheme for children in Camden on the edge of Keir Starmer’s constituency, and food is just as important as learning photography, painting or music.

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Wealth taxes could raise £10bn to help plug Tory budget hole, say economists

Reforms to inheritance and capital gains taxes could reduce £20bn shortfall and combat UK’s widening wealth gap

Rachel Reeves could quickly find around £10bn a year to plug half of the fiscal hole left by the Conservatives if she were to raise taxes on soaring levels of unearned wealth, according to leading economists.

New research by the independent Resolution Foundation published today finds that Britain is a country of “booming wealth” but “busted wealth taxes”, leaving ample potential for the chancellor of the exchequer to raise desperately needed funds by raising taxes on the richest.

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How bad are Britain’s finances? Five questions on the state of the UK economy | Phillip Inman

Several factors restrict the Labour government’s room for manoeuvre in its agenda for growth

The economic outlook is improving, but a recovery from last year’s recession will be long and arduous without a boost to public investment.

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Rachel Reeves to delay some of Tories’ ‘unfunded’ road and hospital projects

Chancellor attempts to plug £20bn hole in spending but will commit to above-inflation public sector pay rise

Rachel Reeves is to delay a number of “unfunded” road and hospital projects on Monday as part of the Treasury’s anticipated plans to plug an apparent £20bn hole in spending left by the Conservatives, while committing to an above-inflation public sector pay rise.

The chancellor is expected to argue she has inherited capital projects that are “unfunded with unfeasible timelines” as part of her Treasury audit report to the Commons. The audit will be seen as an indication of the government’s early commitments and priorities.

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Britain drops its challenge to ICC arrest warrants for Israeli leaders

Labour government announces its biggest step yet in overhauling the UK’s approach to the Middle East

Labour has announced its biggest step yet in overhauling the UK’s approach to the Middle East, dropping its opposition to an international arrest warrant against Benjamin Netanyahu despite pressure from Washington not to do so.

Downing Street announced on Friday that the government would not submit a challenge to the jurisdiction of the international criminal court, whose chief prosecutor, Karim Khan, is seeking a warrant against the Israeli prime minister.

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Mel Stride becomes fourth Tory MP to announce leadership bid – UK politics live

Former work and pensions secretary joins James Cleverly, Tom Tugendhat and Robert Jenrick in announcing he will stand

The cost of England’s four biggest killer diseases could rise to £86bn a year by 2050, prompting calls for a crackdown on alcohol, junk food and smoking.

The ageing population means the annual cost of cancer, heart disease, dementia and stroke combined will go from the £51.9bn recorded in 2018 to £85.6bn in 2050 – a rise of 61%.

More importantly, you must now come clean on where the axe will fall under your plans and whether you intend to cut public services, raise taxes or both – having previously denied you would do either.”

The excuses currently being lined-up will set alarm bells ringing that the Labour government plans to continue Tory cuts and public services will be starved of the cash they need – just as we have seen with the failure to scrap the two-child benefit cap this week.

The SNP is ready and willing to work in cooperation with the Labour government to deliver the change voters in Scotland were promised – but we also have a duty to stand up for Scotland’s interests and hold the Labour government to account where real change isn’t forthcoming.”

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NatWest takes £24m hit from abandoned ‘Tell Sid’-style campaign

Bank left with costs from Sir Trevor McDonald-fronted campaign after early election halted rollout

NatWest was forced to spend £24m on the former Conservative government’s aborted “Tell Sid”-style campaign featuring Sir Trevor McDonald, which would have resulted in a chunk of the bank’s state-owned shares being sold to the general public in a highly anticipated privatisation drive.

The price tag emerged when the bank released its second-quarter results and announced it was snapping up a number of mortgages from the smaller rival Metro Bank for £2.4bn.

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England’s health watchdog ‘not fit for purpose’, says Wes Streeting

Health secretary’s comments follow finding that Care Quality Commission struggling to identify performance issues in hospitals and care homes

Wes Streeting has called England’s healthcare watchdog “not fit for purpose” after an interim report found significant failings were hampering its ability to identify poor performance at hospitals, care homes and GP practices.

The health and social care secretary promised to “grip the crisis” at the Care Quality Commission (CQC) by taking immediate action to increase oversight of the body and giving patients more confidence in their care.

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Cost of England’s four biggest killer diseases could hit £86bn by 2050

Study predicts overall economic cost of cancer, heart disease, dementia and stroke will rise by 61%

The cost of England’s four biggest killer diseases could rise to £86bn a year by 2050, prompting calls for a crackdown on alcohol, junk food and smoking.

The ageing population means the annual cost of cancer, heart disease, dementia and stroke combined will go from the £51.9bn recorded in 2018 to £85.6bn in 2050 – a rise of 61%.

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Rachel Reeves expected to reveal £20bn shortfall in public finances

Chancellor may raise some taxes in the autumn due to what Labour describes as its ‘shocking inheritance’ from Tories

Rachel Reeves is expected to reveal a £20bn hole in government spending for essential public services on Monday, paving the way for potential tax rises in the autumn budget.

Labour sources said the blame lay with the Tory government, describing it as a “shocking inheritance” and accusing the former chancellor of “presiding over a black hole and still campaigning for tax cuts”.

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Labour defends Great British Energy plan amid concern over funding – UK politics live

Ed Miliband said GB Energy would be a crucial tool to tackle the UK’s energy security concerns

The former Lib Dem leader Vince Cable is testifying at the inquiry into the Post Office Horizon scandal today. My colleague Mark Sweney will be sharing updates on that in the live blog here:

“The days of government ministers waging culture wars against civil servants are over,” chancellor of the duchy of Lancaster, Pat McFadden, has said.

Yesterday I met the civil service unions together with my colleague, the new minister [Georgia Gould]. We had a very positive discussion covering a whole range of issues.

I made it clear that the days of government ministers waging culture wars against civil servants are over. Instead, we want a civil service that’s motivated, valued and helps the government deliver its priorities. And on this specific issue of pay, the government will have more to say on civil service pay before the summer recess.”

We do value civil servants, and of course we want all public servants to be properly and fairly rewarded, and, like any public expenditure, what’s spent on pay has to be balanced against other priorities and fair to taxpayers as a whole.”

Departments do have flexibility on pay, they can direct pay towards the needs of their own workforces.”

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Former Lib Dem leader Vince Cable testifies at inquiry into Post Office Horizon scandal – business live

Cable was business secretary from 2010-15 when the government privatised the Post Office

Cable has agreed with a description of Post Office management as “thugs in suits”, and had a goal of rebalancing the relationship between bosses and subpostmasters during his time in post.

He recounted a story about challenging 8 Post Office closures in his constituency, before he entered government, and being treated poorly by the organisation’s “middle management”.

Mr Bates has, I believe, described them as ‘thugs in suits’ and I recognise the description,” said Cable in his witness statement. “And [the Post Office] dealt with us in an arrogant way when we campaigned against closures.


In my first meeting with Paula Vennells [Post Office chief executive] I suggested this is what the Post Office should do,” he said. “We perhaps should have been more modest and had postmasters on the board, which would have achieved some of our aims, which I think has now happened.

Problems with Horizon barely came across my desk,” he said. “When they did it was usually in a very uncontroversial way and not drawn to my attention as an issue I should focus on. General reason is that the officials who were briefing me and ministers on the subject hadn’t seen it as a particular problem.

In hindsight, I should have been told at the outset what Horizon was,” he said. “That competent people … were suggesting there was a risk factor and I should have been told about Mr Bates and the justice group. I never heard his name until I’d been in the job five years. I wasn’t briefed on them.

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Robert Jenrick enters race to become next Tory leader

Former minister becomes third MP to formally join race after James Cleverly and Tom Tugendhat threw hats into the ring

Robert Jenrick, the former immigration minister who quit Rishi Sunak’s cabinet over the prime minister’s failure to take a tougher approach to immigration, has entered the race to become Conservative leader.

The Tory MP’s campaign manager, Danny Kruger, said he was best placed to win back voters who deserted the party for Reform at the general election. He is the third MP, after James Cleverly and Tom Tugendhat, to join the contest.

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Eluned Morgan to become first female Welsh first minister

Morgan was only candidate to put herself forward to replace Vaughan Gething as Welsh Labour leader

Eluned Morgan has been confirmed as the new leader of Welsh Labour and is to become the first female first minister of Wales.

Lady Morgan, 57, the health secretary in the Labour-led Welsh government, was the only candidate to put herself forward to replace Vaughan Gething.

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