Reeves to announce major change to fiscal rules releasing £50bn for spending

After weeks of speculation, chancellor will tell IMF in Washington that UK’s debt measure will be redefined to permit borrowing for investment

Rachel Reeves will announce at the International Monetary Fund a plan to change Britain’s debt rules that will open the door for the government to spend up to £50bn extra on infrastructure projects.

After weeks of speculation, the chancellor will confirm at the fund’s annual meetings in Washington on Thursday that next week’s budget will include a new method for assessing the UK’s debt position – a move that will permit the Treasury to borrow more for long-term capital investment.

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Project to build German EV microchip factory put on hold

US firm Wolfspeed and German car parts supplier ZF postpone plans over doubts about viability

A project to build a €3bn factory making microchips for electric vehicles once hailed as part of a “return of the industrial revolution” in Germany has been put on hold, as the crisis in the country’s hi-tech manufacturing industry deepens.

The US company Wolfspeed and the German car parts supplier ZF have postponed plans to build an EV chip factory, adding to problems caused by a delay to two large-scale factories belonging to the US chip giant Intel and possible factory closures being considered by Volkswagen.

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Putin calls for alternative international payment system at Brics summit

Russian president’s goal to de-dollarize world economy alarms members that do not want bloc to turn against west

Vladimir Putin has opened the expanded Brics summit by issuing a call for an alternative international payments system that could prevent the US using the dollar as a political weapon.

But the summit communique indicated that little progress had been made on an alternative payment system.

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Lloyds backs Reeves budget plans despite mooted tax increases

Bank expects ‘constructive, pro-growth agenda’ by chancellor next week and seeks to be part of it

Lloyds Banking Group has backed the Labour government’s forthcoming budget and played down the impact of any tax increases, which it said would probably be part of a “constructive, pro-growth agenda”.

The chief financial officer of the UK’s biggest mortgage lender, William Chalmers, said he would welcome a budget package that was consistent with government pledges to kickstart growth and investment in key areas such as energy, infrastructure and housing.

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UK watchdog formally investigates Carlsberg’s £3.3bn takeover of Britvic

CMA sets 18 December deadline for initial review as it considers whether deal could reduce competition

The UK’s competition watchdog has launched a formal investigation into the £3.3bn takeover of the UK soft drinks maker Britvic by the Danish brewer Carlsberg.

The Competition and Markets Authority (CMA) has set a deadline of 18 December for the first phase of its investigation into the deal.

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Coalition’s building standards freeze could see a ‘Grenfell Tower inferno’ in Australia, Labor says

Peter Dutton’s proposed 10-year freeze to national building codes would be a shame, one industry leader says, ‘given the serious impacts of our changing climate’

The industry minister, Ed Husic, has accused the opposition of condemning Australians to live in “shoddy” homes that could result in a “Grenfell Tower inferno” onshore, after it revealed plans to freeze building standard improvements for a decade if elected.

The proposal has already drawn criticism from housing experts and the independent ACT senator David Pocock, but some industry groups have also distanced themselves from the 10-year freeze to national building codes.

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Thorpe rebuffs Indigenous leaders’ criticism of protest – as it happened

This blog is now closed

More on news media bargaining code and funding of media publishers

One of the committee’s key recommendations was a digital platform levy on companies like Meta and Google, which some have described as a tech tax to fund public interest journalism.

So in parts of Europe, for example, there’s a 2% digital services tax. You could look at a public interest journalism levy.

The issue that we have fundamentally here is the … offshoring of the digital platform’s profits, where currently they pay very little tax because they argue that they don’t operate in Australia, even though they’re getting this enormous profit yield of the advertising on their platforms. So that’s another thing that has to be resolved within legislation in order to impose a tax.

But simply imposing a tax and feeding [it] into media organisations … won’t fix the issue if Meta continues to deprecate news content – that is, reduce the exposure of news content to its consumers.

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IMF warns Trump trade tariffs could dent global economy as it upgrades UK outlook

New report upgrades outlook for UK economy with growth now forecast at 1.1% rather than 0.7%

The International Monetary Fund has warned the trade tariffs favoured by US presidential candidate Donald Trump could hurt global growth, as it upgraded its forecast for the UK economy.

The Washington-based organisation said tariffs trigger tit-for-tat trade wars that impoverish the economies involved in the dispute and the wider global economy.

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‘Utter ruin’: Gaza economy would take 350 years to return to pre-conflict level, UN says

Report says ‘intense military operations in Gaza have left unprecedented humanitarian, environmental and social catastrophe’

Gaza’s economy has been left in “utter ruin” by the year-long war between Israel and Hamas, and it would take 350 years to return to its pre-conflict levels, the United Nations has warned.

In a report on the economic costs of the war prepared by its trade and development wing (Unctad), the UN said the fighting since Hamas killed more than 1,000 Israelis on 7 October last year had devastated the remnants of Gaza’s economy and infrastructure.

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Thousands greet royals at opera house – as it happened

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The opposition leader, Peter Dutton, has been speaking with ABC RN about a range of issues – including Lidia Thorpe’s actions at King Charles’ parliamentary reception yesterday.

Dutton argued that “sometimes people make it all about themselves, and I think that’s what yesterday was.” He said it “didn’t advance anyone’s cause” and “add[s] to the self promotion … that she seeks.”

The vast majority of people have been very welcoming the king’s visit, and I think it’s been an opportunity to underscore the stability in our democracy, our rule of law, separation of powers, all of those institutions that we inherited from our British heritage.

That’s part of the success story of our country, and it’s a good reminder during his visit [that] if we change it, I think we want to be very careful about the system we’re changing to and whether or not we would be a safer, more secure, community and environment for decades to come or not.

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Regulators urged to examine UK business dealings with Bangladeshi ex-minister

HMRC and FCA asked to look into property deals with Saifuzzaman Chowdhury now under investigation for corruption in Dhaka

British regulators have been urged by MPs to examine the relationship between London estate agents, lawyers and lenders and a former Bangladeshi government minister under investigation for alleged corruption.

Saifuzzaman Chowdhury was the land minister in Bangladesh until earlier this year, when the government of Sheikh Hasina was spectacularly toppled, after her regime’s violent suppression of student protests.

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Indie brewers ditch ‘craft beer’ tag as drinkers are ‘misled’ by global brands

Survey shows many consumers unaware that previously standalone businesses now owned by big corporations

Small breweries in the UK are ditching the term “craft beer” in favour of “indie beer”, warning that global corporations have bamboozled many drinkers into believing that formerly independent brands are still artisanal hidden gems.

In a survey by YouGov that marks a new phase of the bitter war over what constitutes “craft beer”, consumers were asked to say whether 10 beer brands were made by “independent craft breweries”.

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Developers to directly fund schools, parks and public transport under Victorian trial

Program that ties new infrastructure to housing projects will start in 2027 in 10 Melbourne ‘activity centres’, premier says

The Victorian premier, Jacinta Allan, says an overhaul of the state’s infrastructure contribution scheme will ensure communities that build more homes will receive funding for key amenities like schools and parks.

With her government’s third housing policy announcement in as many days, Allan on Tuesday flagged a revamped statewide pilot infrastructure contribution program.

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Microsoft introduces ‘AI employees’ that can handle client queries

US company gives customers the ability to build own virtual agents as well as releasing 10 off-the-shelf bots

Microsoft is introducing autonomous artificial intelligence agents, or virtual employees, that can perform tasks such as handling client queries and identifying sales leads, as the tech sector strives to show investors that the AI boom can produce indispensable products.

The US tech company is giving customers the ability to build their own AI agents as well as releasing 10 off-the-shelf bots that can carry out a range of roles including supply chain management and customer service.

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Employment rights bill will cost firms £5bn per year but benefits will justify costs, government says – as it happened

Analysis from business and trade department says bill will significantly strengthen workers’ right. This live blog is closed

In the past the weirdest budget tradition was the convention that the chancellor is allowed to drink alcohol while delivering the budget speech. But since no chancellor has taken advantage of the rule since the 1990s (and no one expects Rachel Reeves to be quaffing on Wednesday week), this tradition is probably best viewed as lapsed.

But Sam Coates from Sky News has discovered another weird budget ritual. On his Politics at Jack and Sam’s podcast, he says:

Someone messaged me to say: ‘Did you know that over in the Treasury as they’ve been going over all these spending settlements, in one of the offices, its full of balloons. And every time an individual department finalises its settlements, one of the balloons is popped.’

There couldn’t be a more important time for us to have this conversation.

The NHS is going through what is objectively the worst crisis in its history, whether it’s people struggling to get access to their GP, dialling 999 and an ambulance not arriving in time, turning up to A&E departments and waiting far too long, sometimes on trolleys in corridors, or going through the ordeal of knowing that you’re waiting for a diagnosis that could be the difference between life and death.

We feel really strongly that the best ideas aren’t going to come from politicians in Whitehall.

They’re going to come from staff working right across the country and, crucially, patients, because our experiences as patients are also really important to understanding what the future of the NHS needs to be and what it could be with the right ideas.

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Israeli airstrikes on Lebanon hit branches of Hezbollah-linked bank

Strikes targeted Al-Qard Al-Hassan buildings in Beirut’s southern suburbs, south Lebanon and the Bekaa valley

Israel carried out a series of airstrikes on the southern suburbs of Beirut, south Lebanon and the Bekaa valley early on Monday morning, hitting buildings belonging to the Hezbollah-run banking institution Al-Qard Al-Hassan.

At least 10 airstrikes were carried out in the southern suburbs of the capital, with an entire building collapsing and a jet of fire streaming into the air in the Chiyah neighbourhood. A building close to Lebanon’s only commercial airport was also struck, video footage showing a smoke plume billowing while a nearby plane sat on the runway.

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Disney says it will name CEO Bob Iger’s second successor in 2026

The House of Mouse taps former Morgan Stanley CEO as its new board chair, who will lead search for Iger’s replacement

Walt Disney said it would announce another replacement for CEO Bob Iger in early 2026 and named a veteran of Morgan Stanley as board chair on Monday, for the first time announcing a timetable for succession at the storied media and entertainment company.

James Gorman will step down as executive chair of Morgan Stanley at the end of 2024 and take on the position at Disney in January. He had served as CEO of the Wall Street bank for 14 years and is credited with transforming it into a wealth management powerhouse.

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Harris edges out Trump on key economic questions, new poll shows

Poll shows more voters support US vice-president’s tax and housing policies compared with the Republican nominee

Donald Trump has lost his advantage over Kamala Harris on who is best qualified to manage the economy, new polls suggest.

With millions of voters already casting early ballots for the presidency ahead of election day on 5 November, a fresh Associated Press/NORC poll says Harris, the Democratic nominee, has taken a slight lead when it comes to some key economic questions that concern middle-class voters.

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UK interest rates to fall to 2.75% by next autumn, Goldman Sachs predicts

Economists at investment bank say markets are underestimating likely extent of action by Bank of England

Interest rates are on course to fall to 2.75% by next autumn after the Bank of England reduces the cost of borrowing at each of its nine next meetings, a leading investment bank has predicted.

Economists at Goldman Sachs said that, according to their assessment of the long-term level of interest rates consistent with achieving the government’s 2% inflation target, markets were underestimating the likely extent of the action by Threadneedle Street’s nine-strong monetary policy committee (MPC).

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Top female footballers urge Fifa to end deal with Saudi ‘nightmare sponsor’

Letter to governing body accuses Saudis of using sports to ‘distract from the regime’s brutal human rights reputation’

More than 100 professional female footballers have signed a letter calling on Fifa to end its sponsorship deal with the state-owned Saudi Arabian oil company, Aramco, accusing Saudi authorities of “brutal human rights violations”.

A four-year deal signed in April will see Aramco, which is 98.5% state-owned, sponsor major tournaments including the men’s World Cup in 2026 and the Women’s World Cup in 2027.

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