Cost-of-living crisis for councils will make levelling up a distant dream

Analysis: after cash injections during Covid, local councils now face a world of precarity and pain

It was only a year ago that the national spending watchdog was praising the government for injecting billions into council budgets in England to help them cope with Covid-19. Ministers are never happy to splash the cash, but without it, the National Audit Office said, local government would have collapsed.

We are now in, if not quite system-failure territory, then at least a world of mass municipal precarity and pain. Rampaging inflation, fuelled by soaring energy and fuel costs, have left councils with their own cost of living crisis, and a budget hole of almost £2bn. Once again, they are asking ministers for financial help.

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Schools and libraries face huge cuts after soaring costs create £1.7bn shortfall

Exclusive: Emergency council cuts feared across England caused by inflation and higher energy costs

School-building projects, swimming pools and libraries have been earmarked for emergency funding cuts because town halls have been hit by an unexpected £1.7bn hole in their budgets, the Guardian can reveal.

Rampant inflation and soaring energy bills mean that council leaders have been forced to rip up financial plans from a few months ago, with higher than anticipated staff pay bills also contributing to their newfound deficits. Without help from Whitehall, it will leave them no option but to cut services and put up council tax next April.

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Geidt doubles down on claims No 10 wanted to break international law

PM’s former ethics adviser says reason given by Downing Street for his resignation was a ‘distraction’

Boris Johnson’s former ethics adviser has said the reason given by Downing Street for his resignation was a “distraction” and doubled down on claims that the government wanted to break international law.

After he dramatically quit this week, Christopher Geidt said his explanation had used too much “cautious language” leading to “some confusion about the precise cause of my decision”.

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Keir Starmer and Angela Rayner return questionnaires to Durham police

Labour leader and deputy have promised to resign if found to have breached Covid rules by eating curry and drinking beer at event

Keir Starmer and Angela Rayner have returned questionnaires to Durham constabulary, giving their account of a gathering during last year’s local election campaign, the Labour party has confirmed.

The pair have both promised to resign if they are found to have breached Covid rules by eating a curry and drinking a beer at the event, which was caught on camera.

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Government’s Rwanda asylum policy is ‘absolutely shameful’, says Lady Amos

Labour peer who is first black member of Order of the Garter says scheme threatens to undermine UK’s global standing

Sending asylum seekers to Rwanda is an “absolutely shameful” policy that threatens to undermine Britain’s potential to lead in a changing world, the Labour peer Valerie Amos has said.

Lady Amos, who this week became the first black member of the Order of the Garter, said the scheme “sends a message” to other countries about “how seriously we take our responsibilities” to the UN’s security council and charter on refugees.

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Boris Johnson promises Ukraine UK-led troop training scheme on Kyiv visit

PM announces programme including battle skills and counter-explosive tactics that will take place outside Ukraine

Boris Johnson has announced that the UK will oversee a new three-week training programme for Ukrainian soldiers, as he visited Kyiv for the third time this year for talks with the Ukrainian president, Volodymyr Zelenskiy.

The prime minister had been expected to address Conservative MPs at the Northern Research Group conference in Doncaster on Friday, but pulled out at the last minute.

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‘Frankly insulting’: Rwanda resents its portrayal in UK asylum row

Kigali government seeks to shift narrative with managed tours of processing facilities and accommodation for deportees

Rwanda has been caught in the eye of a British political storm this week, and its officials are not happy with how the country has been portrayed.

It was preparing to welcome asylum seekers on Tuesday until a dramatic 11th-hour ruling by the European court of human rights.

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Election guru Lynton Crosby attending PM’s morning meetings

Greater role for head of polling company coincides with prime minister’s shift to the right

Lynton Crosby, the election guru and businessman, has been attending Boris Johnson’s 8.30am meetings in No 10, showing he is more involved in the prime minister’s decision making than previously thought.

The Australian political strategist, whose advisory firm has represented tobacco as well as oil and gas interests, is known to have been helping Johnson remotely over his leadership woes but his involvement in the regular meetings shows he appears to have taken a much greater role than before.

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‘Boris Johnson thinks he’s honest’: Devon candidate declines to say if PM trustworthy

Helen Hurford, Tory candidate in Tiverton and Honiton, blames media for stopping public from moving on from Partygate

The Conservative candidate in Tiverton and Honiton has blamed the media for preventing the public from “moving on” from Partygate and twice declined to say that Boris Johnson was honest.

In an interview with the Guardian, Helen Hurford acknowledged the party faced a very tight battle to retain the previously ultra-safe seat and criticised what she called the media’s “persistent regurgitating of Partygate”. Asked if she believed Boris Johnson was fundamentally honest, Hurford twice refused to say.

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No 10 refuses to say if ethics adviser will be replaced following Lord Geidt’s resignation after being put in ‘impossible position’ – live

Boris Johnson ‘carefully considering’ whether to appoint new ethics adviser after Lord Geidt’s resignation

Ellis has finished. He has not told us anything new about why Geidt resigned.

Ellis says the powers of the independent adviser on ministers’ interests have changed.

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Grant Shapps tells rail staff not to ‘risk striking yourself out of a job’

Unions accuse transport secretary of threats and intimidation of workers, and government of trying to make political capital out of the strike

The transport secretary has told rail staff not to “risk striking yourself out of a job”, before industrial action that will close much of the railway next week.

In a speech in which Grant Shapps said he was “appealing directly to workers” instead of unions, he claimed the strikes were “a bid to derail reforms that are critical to the network’s future, and designed to inflict damage at the worst possible time”.

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Lord Geidt letter says request from Boris Johnson put him in ‘odious position’

Ethics adviser who quit says PM asked him to consider matter that risked deliberate breach of ministerial code

Boris Johnson placed his ethics adviser in an “impossible and odious” position by asking him to “risk a deliberate and purposeful breach of the ministerial code”, letters from the adviser show.

Johnson revealed in his reply that he had asked Christopher Geidt to consider plans by the government to continue some steel tariffs – a move that could break World Trade Organization terms – but hinted he was unsatisfied with the explanation.

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Raab says court was wrong to block Rwanda deportation flight

Decision by European court of human rights strengthens case for overhaul of UK laws, says deputy PM

A last-minute court ruling that prevented the first asylum seekers being forcibly removed to Rwanda was wrong and has strengthened the case for overhauling Britain’s human rights laws, Dominic Raab has said.

The deputy prime minister urged the European court of human rights (ECHR) to “respect the limits of its mandate”, though rejected calls from some Conservative MPs to cut ties with the Strasbourg-based body.

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UK food price rises could hit 15% over summer, report says

Ukraine war, China lockdowns and Brexit help push up inflation, with products that rely on wheat worst hit

Food price rises in the UK could hit 15% this summer – the highest level in more than 20 years – with inflation lasting into the middle of next year, according to a report.

Meat, cereals, dairy, fruit and vegetables are likely to be the worst affected as the war in Ukraine combines with production lockdowns in China and export bans on key food stuffs such as palm oil from Indonesia and wheat from India, the grocery trade body IGD warns.

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Labour launches review of business funding to support startups

Rachel Reeves says Labour wants to make Britain the best place in the world to start and grow a business

Labour has launched a review of business startup funding driven by a group of industry leaders including the former Goldman Sachs chief economist and Conservative Treasury minister Jim O’Neill as it attempts to improve its credentials with business.

Announcing the review amid concern over the strength of the British economy, Rachel Reeves, the shadow chancellor, said Labour wanted to make Britain the best place in the world to start and grow a business.

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Why is the ECB still fiddling over a potential eurozone crisis? | Nils Pratley

Christine Lagarde is failing to heed the lesson of last decade’s crisis: act quickly and act clearly

Perhaps the European Central Bank was feeling left out as the financial world turned its attention to the US Federal Reserve’s interest rate hike. But emergency meetings of major central banks are supposed to produce more substance than the weak offering that emerged from Frankfurt after a morning of contemplation: a plan to accelerate work on a “new anti-fragmentation instrument”.

The fragmentation in question is the widening of bond yields between eurozone countries. In short, as interest rate rises have come into view, weaker economies are having to pay meaningfully greater rates to borrow than the likes of Germany – about 2.4 percentage points more in the case of Italy.

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No 10 revives prospect of UK leaving European convention on human rights after Labour calls Rwanda plans ‘a shambles’ – live

Downing Street refuses to rule out withdrawing from European convention on human rights after Yvette Cooper challenges Priti Patel over Rwanda

This is what Šefčovič said about the UK bill in his opening statement.

Let there be no doubt: there is no legal nor political justification whatsoever for unilaterally changing an international agreement.

Opening the door to unilaterally changing an international agreement is a breach of international law as well.

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‘Deep concern’ over fate of Dom Phillips in Brazil, says Boris Johnson

Prime minister says UK government will provide any support needed after journalist’s disappearance in Amazon

Boris Johnson has said the UK government is “deeply concerned” about the circumstances surrounding the disappearance of the British journalist Dom Phillips, after Theresa May called on the prime minister to make the case “a diplomatic priority”.

May raised Phillips’s case during prime minister’s questions, citing correspondence with Phillips’ niece Dominique Davis, one of her constituents. Johnson said the UK had offered to provide support to Brazilian search teams looking for Phillips and his travelling partner, Bruno Pereira, an Indigenous expert.

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Boris Johnson using Jedi mind trick on country over economy, says Starmer

Labour leader says PM is spouting nonsense, telling people ‘they’ve never had it so good’, in bad-tempered PMQs

Keir Starmer has accused Boris Johnson of trying to fool the public with “nonsense” about a booming economy, as an often bad-tempered prime minister’s questions saw the pair square up over stagnant growth and tax rises.

In an extended Star Wars-referencing section, Starmer said Johnson was trying to “perform Jedi mind tricks on the country” by insisting the economy was buoyant, also mocking the PM by saying his backbenchers compared him to Jeremy Corbyn.

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UK to challenge court ruling that halted Rwanda deportations, says minister

Thérèse Coffey says she is sure government will go back to European court of human rights over decision

The UK is likely to challenge the European court of human rights ruling that stopped the deportation to Rwanda of people seeking asylum and is already preparing for the next flight, a cabinet minister has said.

Thérèse Coffey, the work and pensions secretary, played down the idea that the UK could withdraw from the European convention on human rights in response to the court’s decision, which halted the flight on Tuesday night.

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