TfL funding deal means tube fares must rise and bus services be cut

Sadiq Khan accepts ‘far from ideal’ settlement but says it secures long-term future for transport network

Tube fares will rise and more bus services will be cut in the capital, the mayor, Sadiq Khan, warned, after Transport for London agreed to accept a £1.2bn funding settlement from the government.

The deal, slightly improved from a “final offer” made in July by the transport secretary, Grant Shapps, was welcomed by TfL as allowing it to avert the “managed decline” of its transport network.

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UK asylum seeker deal leaves Rwanda hostel residents homeless

Survivors of Rwandan genocide were told to vacate hostel two days after Priti Patel signed £120m deal

Former residents of a hostel in Rwanda who were forced to leave under a controversial deal to house asylum seekers flown from the UK say they have been left homeless and destitute while the property remains unused.

The men, all of whom are survivors of the Rwandan genocide, had lived in Hope Hostel in Kigali for up to eight years. But they were told to vacate two days after Priti Patel, the British home secretary, signed a £120m agreement to send refugees arriving in the UK by small boats to the east African country.

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Gypsies and Travellers fear missing out on energy bills support

Government urged to ensure thousands living in park homes in Great Britain receive £400 payments

Gypsy and Traveller groups are calling on the government to ensure thousands of households living in park homes are not excluded from its energy bills support scheme this winter as bills soar.

The scheme will pay out a total of £400 to all households in Great Britain with a domestic electricity connection between October and March, with monthly payments administered by their energy supplier.

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Eurostar to axe direct trains from London to Disneyland Paris over Brexit

High-speed rail firm blames departure from EU and Covid for decision to halt service next summer

Eurostar has decided to stop direct services from London to Disneyland Paris from next summer, citing the fallout from Brexit and Covid.

The high-speed train operator said on Tuesday it was scrapping trains running from the British capital to the Disneyland site in Marne-la-Vallée, in the eastern Paris suburbs.

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Labour criticises chancellor’s trip to US for ‘chinwag’

Nadhim Zahawi to go on fact-finding trip to discuss measures on energy costs in what are likely to be his last days in post

Nadhim Zahawi will spend what are likely to be his final few days as chancellor in the US on a fact-finding trip to discuss measures to tackle soaring energy costs.

Zahawi, who took over as chancellor eight weeks ago and is likely to be replaced if, as widely expected, Liz Truss is unveiled as the next Conservative leader, will also discuss the Ukraine war and cooperation on financial services.

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Scottish refuse workers’ strike to continue as union rejects pay offer

Unite says offer from Scotland’s councils is unacceptable and ‘represents a waste of precious time’

Refuse workers in Scotland will continue to strike next week after the Unite union rejected the latest offer from local authorities.

Council cleansing staff across much of the country are striking over pay. A strike in Edinburgh that led to rubbish building up in the streets during the city’s festival fringe – the busiest time of year for the city – is due to end on Tuesday morning. But further action in other council areas is planned.

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Leading Tories call on new PM to tackle crisis facing schools over soaring costs

Exclusive: warnings of damage to children’s education for years to come without major intervention

‘It’s heartbreaking’: England’s school leaders on budget shortfalls

Leading Conservatives including two former Tory education secretaries have urged the incoming prime minister to address rising cost pressures on schools as a matter of urgency, as head teachers struggle to pay soaring energy and wage bills.

With the start of the new academic year just days away, many schools in England are already overwhelmed by energy price rises in excess of 200% – with worse to come – plus the additional cost of unfunded pay rises and mounting inflation.

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Boris Johnson wants to ‘do a Berlusconi’ back to power, says Rory Stewart

Former Tory rival says outgoing PM aims to return to No 10 in style of other deposed populists

Boris Johnson is “hoping to do a Berlusconi” and make a “populist return” to Downing Street after being ousted by his own MPs, according to a former Conservative cabinet minister.

In an interview with the Guardian, Rory Stewart said people needed to be reminded Johnson was forced to quit – over a slew of scandals – because some supporters wanted Johnson to “come back”.

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New Tory leader urged to scrap MPs’ break for party conferences amid cost of living crisis

Exclusive: Ministers encouraged to stay at Westminster to devise emergency plans to address cost of living crisis

The next Conservative leader has been urged to scrap MPs’ four-week break for party conference season and told it would be “immoral and insulting” to go “missing in action” during the worsening cost of living crisis.

With the Commons due to go into recess for a month in mid-September for the parties’ annual conventions, ministers were encouraged to remain in Westminster to devise and debate emergency plans for supporting struggling people through the winter.

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Rising energy costs ‘will force thousands of corner shops to close’

Association of Convenience Stores urges chancellor to provide more financial support for small shops

Thousands of corner shops will be forced to close due to surging energy costs unless the government steps in with emergency support, a trade body has said.

The Association of Convenience Stores (ACS) has written to the chancellor, Nadhim Zahawi, saying that without financial support its members will be driven out of business. “We will see villages, housing estates, neighbourhoods and high streets lose their small shops,” the letter says.

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Jacob Rees-Mogg to sell London offices as civil servants work from home

Minister had urged staff to go into office and attacked FCA over working from home

Jacob Rees-Mogg has revealed he is planning to sell off £1.5bn worth of government offices in London due to the proportion of civil servants continuing to work from home.

The minister for Brexit opportunities and government efficiency will publish a strategy next week that includes selling property assets over the next three years, with staff working in fewer buildings as part of a new network of government “hubs”, the Telegraph reported.

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Liz Truss ponders VAT cut of 5 percentage points amid cost of living crisis

Tory leadership frontrunner understood to have discussed move, with final decision coming after contest ends

Liz Truss is considering whether to reduce VAT by five percentage points across the board, which could save families £1,300 a year, it was reported.

The foreign secretary is understood to have discussed the move with her advisers but no final decisions will be taken until the Conservative leadership contest concludes on 5 September, according to the Sunday Telegraph.

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Unions threaten ‘waves of industrial action’ over UK cost of living crisis

Move could see synchronised strikes in autumn as new prime minister takes office

Britain is facing a wave of coordinated industrial action by striking unions this autumn in protest at the escalating cost of living crisis, the Observer can reveal.

A series of motions tabled by the country’s biggest unions ahead of the TUC congress next month demand that they work closely together to maximise their impact and “win” the fight for inflation-related pay rises.

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Labour pledges to strengthen the BBC’s independence and protect funding

Party would insulate broadcaster from political pressure, says shadow culture secretary, as Liz Truss prepares to wage war on it

Labour has pledged to strengthen the BBC’s political independence and retain it as a publicly-owned, public service broadcaster at the heart of British life, amid signs that a Tory government led by Liz Truss would wage war on the corporation.

Lucy Powell, the shadow culture secretary, told the Observer she is examining a series of reforms to insulate the BBC from political pressures, including ending “revolving door” appointments of people in politics to top posts in the corporation, and extending the charter renewal period from 10 to 15 or 20 years to reduce pressures on BBC leaders to toe the government line.

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‘She has no choice’: Liz Truss faces U-turn on energy if she enters No 10, MPs say

If foreign secretary wins the Tory leadership contest she looks set to have to change course on ‘handouts’ despite campaign pledges

For months, everyone in government had known that Friday was energy cap day, and at 7am the bad news duly dropped. Phones pinged as the nation woke to Ofgem’s confirmation that typical gas and electricity bills were to rise by a frightening 80%.

Millions of people would be unable to cope, said charities. Even those on low or middle earnings who had some savings could see them entirely wiped out. It was a full-on national crisis, albeit long predicted.

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‘Wise and kind’ Labour peer Giles Radice dies at 85

Keir Starmer praises an ‘unrivalled social democratic thinker’ who was vital to party regaining power in 1997

Keir Starmer has paid tribute to former Labour politician Giles Radice, after reports he has died aged 85.

The party leader praised the peer and former MP as a “wise and kind man” and “unrivalled social democratic thinker”.

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Liz Truss taking risk by not announcing energy plan – if she has one

Tory MPs are jittery while Keir Starmer is gaining traction with his plan for a price freeze

It is the biggest energy crisis for decades, with experts warning that people may freeze to death this winter and many will turn off their heating altogether.

But Liz Truss’s leadership campaign has barely reacted to the news that bills will have almost tripled in a year, beyond the vague promise of help to come.

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Rising energy bills put millions of UK households at risk of winter catastrophe

Experts say 80% price cap increase will plunge people into destitution and cause avoidable deaths

Millions of households are bracing for a winter catastrophe of rising energy bills that experts say will plunge people into destitution and cause an increase in avoidable deaths without urgent government support.

After Britain’s energy industry regulator confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill to £3,549 a year, there were stark warnings about its potentially devastating effects.

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Economic watchdog confirms it could scrutinise Truss’s cost of living plans

MPs say it is vital tax and spending measures proposed by potential new prime minister are examined by OBR

Liz Truss has been challenged to open up her prospective emergency tax cuts and spending plans to scrutiny if she becomes prime minister and makes immediate moves to tackle the cost of living crisis.

The Office for Budget Responsibility (OBR), which produces independent forecasts based on major fiscal announcements by the government, revealed preparatory work had been under way for about a month to publish fresh economic forecasts in September.

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Dominic Raab made Parole Board’s ‘difficult job next to impossible’

Justice secretary criticised by senior officials after board is ‘last to hear’ about important policy changes

Dominic Raab was accused by a senior Parole Board official of making a “difficult job next to impossible” after making big policy changes without notice, newly uncovered documents show.

Members of the Parole Board also said the justice secretary would have to increase the number of prison places by 800 every year if he was to force through major changes.

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