Jeremy Corbyn says ‘discussions are ongoing’ after Zarah Sultana claimed she would ‘co-lead new party’ with him – as it happened

This blog is now closed, you can read more on this story here

My colleague Lauren Almeida, who is running the Guardian’s business live blog, has shared the following:

Rachel Reeves has not given herself enough fiscal headroom to manage public finances, Charlie Bean, the former deputy of the Bank of England has said, and has to “neurotically fine tune taxes”.

About £10bn – that’s a very small number in the context of overall public spending. Government spending is about one and a quarter trillion so £10bn is a small number … and it is a small number in the context of typical forecasting errors.

You can’t forecast the future perfectly both because you can’t forecast the economy and you can’t forecast all the elements of public finances …. The forecasts are imprecise and there is no way you can avoid that. That is a fact of life.

In light of reports of atrocities committed by the Israeli government in Gaza and reports of the UK’s collaboration with Israeli military operations, it is increasingly urgent to confirm whether the UK has contributed to any violations of international humanitarian law through economic or political cooperation with the Israeli government since October 2023, including the sale, supply or use of weapons, surveillance aircraft and Royal Air Force bases.

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Jeremy Corbyn confirms talks about forming new party with Zarah Sultana

Corbyn says ‘discussions are ongoing’ after MP’s surprise announcement, and is understood to be reluctant to take title of party leader

Jeremy Corbyn has confirmed he is in discussions about creating a new leftwing political party, hours after the MP Zarah Sultana announced she was quitting Labour to co-lead the project.

Sultana, the MP for Coventry South who had the Labour whip suspended last year for voting against the government over the two-child limit on benefits, said on Thursday night she was quitting Labour and would “co-lead the founding of a new party” with Corbyn.

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MP Zarah Sultana says she will ‘co-lead’ new party as she quits Labour for Corbyn group

Coventry South MP, who lost whip last year, surprises some in Corbyn’s Independent Alliance with news of formal plans

MP Zarah Sultana, suspended from Labour, has announced she is resigning from the party to join Jeremy Corbyn’s Independent Alliance.

Sultana declared she will “co-lead the founding of a new party” – even though, while there was an agreement in principle to form one, the timing and leadership had not been settled, the Guardian understands.

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Labour’s 10-year health plan for the NHS is bold, radical – and familiar

The health service transformation proposed for England faces daunting challenges that overwhelmed earlier attempts at reform

The government’s 10-year health plan to revive, modernise and future-proof the NHS in England has arrived as the service is facing a dual crisis. It has been unable for a decade now to provide the rapid access – to GPs, A&E care, surgery, ambulances and mental health support – which people need and used to get.

Normalisation of anxiety-inducing, frightening and sometimes fatal delay has produced a less tangible, but also dangerous, crisis: of public satisfaction, born of a profound loss of trust that the NHS will be there for them or their loved ones when they need it.

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Will Labour’s 10-year health plan usher in a ‘new era’ for the NHS in England?

Major health service reforms have had mixed results, and more emphasis on tech, community-based care and prevention has been tried before

Keir Starmer and Wes Streeting say the 10-year health plan will usher in a “new era for the NHS” in England. Their promised transformation will ensure it works in a more patient-friendly way and offers faster care, with health professionals providing a greater range of services in the same place and spotting illness earlier.

The “three big shifts” in the way the health service operates will involve it becoming more tech-based, moving significant amounts of care into community settings and giving greater priority to preventing illness rather than treating it.

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Wednesday briefing: ​​Has Starmer’s welfare reform bill victory left a fractured Labour party in its wake?

In today’s newsletter: After frantic late negotiations, the government’s welfare overhaul has ​passed – now saving almost none of the money that the government said was crucial to its success

Good morning. To his loveless landslide, Keir Starmer can now add a vapid victory. Last night, the government’s flagship welfare reform bill passed its second reading in the House of Commons by 335 votes to 260 – a majority of 75. But after last-minute concessions from the government to secure the bill’s passage, a set of measures whose intended savings had already fallen from £5bn to £2.5bn a year, now looks like recouping much closer to nothing.

The central climbdown, where plans for deep cuts to the personal independence payment (Pip) in the future were shelved, has been celebrated by disabled people and the charities who represent them. They had feared that the support they rely on was about to be ripped away. But it is also a measure of how disastrous the whole process has been for Starmer.

Israel-Gaza war | Donald Trump says that Israel has accepted conditions of a ceasefire after US-Israeli talks and urged Hamas to agree. The US president did not give details of the terms and there is no indication that Hamas will accept them.

NHS | Three bosses at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter, police have said. The three, who have not been named, were arrested as part of the investigation into the actions of leaders at the Countess of Chester hospital.

UK news | The home secretary is coming under increasing pressure to abandon plans to ban Palestine Action, as UN experts and hundreds of lawyers warned that proscribing the group would conflate protest and terrorism.

US news | The jury in the high-profile federal sex-trafficking and racketeering conspiracy trial of Sean “Diddy” Combs concluded the day without a verdict on Tuesday, unable to come to a decision on one of the five counts. The judge advised the jury to “keep deliberating”.

Extreme heat | Outdoor working has been banned during the hottest parts of the day in more than half of Italy’s regions, as an extreme heatwave that has smashed June temperature records in Spain and Portugal continues to grip large swathes of Europe.

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No 10 guts welfare bill in big new concession as minister says Pip cuts planned for 2026 shelved until after Timms review – UK politics live

Switch to four-point Pip eligibility rule may never happen at all as Stephen Timms says government will ‘remove clause five from the bill’

Compass, the leftwing group urging Labour to be more pluralistic, has put out a statement condemning the UC and Pip bill. Its director, Neal Lawson, said:

If your own friends are telling you to put the brakes on, then something has clearly gone wrong. Despite the government’s line, this legislation does not advance Labour values. It is fundamentally at odds with them, and with the views of the mainstream of the party and civil society.

MPs from across the House, and especially the Labour side, must back Rachael Maskell’s reasoned amendment. This bill’s creation of a three-tiered social security system would condemn thousands to poverty and could lose Labour the next election.

A bill of this magnitude should have been co-produced with disabled people and our organisations from the very start.

Now, ministers scramble to promise ‘consultation’ as one small part of the process. That is too little, too late. Co-production is not a rushed tick-box exercise tagged onto legislation already steaming through Parliament. It means disabled people shaping the system at every step – not just commenting on the detail of changes already baked in.

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Pressure grows on Yvette Cooper to abandon plans to ban Palestine Action

UN experts and hundreds of lawyers warn that proscribing group would conflate protest and terrorism

The home secretary is coming under increasing pressure to abandon plans to ban Palestine Action, as UN experts and hundreds of lawyers warned that proscribing the group would conflate protest and terrorism.

In two separate letters to Yvette Cooper, the Network for Police Monitoring (Netpol) lawyers’ group and the Haldane Society of Socialist Lawyers said that proscribing the group would set a dangerous precedent.

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DWP says 150,000 more people pushed into poverty by benefit cuts, not 250,000 as forecast said before U-turn – UK politics live

Analysis says, allowing for concessions to welfare bill announced last week, cuts will still push people into relative poverty

The Department for Work and Pensions has just published an analysis saying that, allowing for the concesssions announced last week, the welfare cuts will still push an extra 150,000 people into relative poverty.

Here is the key chart from the document.

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Starmer’s disability benefit concessions are not enough, says rebel Labour whip

Exclusive: Vicky Foxcroft, who resigned as whip over welfare bill, urges ministers to work with affected people on changes

The Labour whip who resigned in protest against disability benefit cuts has said Keir Starmer’s concessions do not yet go far enough to win her over, as No 10 launched a fresh attempt to stem the revolt against its welfare bill.

Vicky Foxcroft, who quit her frontbench role over the welfare bill a little more than a week ago, urged the government to work jointly on the changes with disabled people and to publish the review of the system before bringing in cuts.

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Extra cost of being disabled in UK to rise by almost 12% in five years, says Scope report

Estimate by disability charity published on eve of MPs’ vote on restricting welfare payments for new claimants

The extra cost of being disabled is on course to rise by almost 12% to £14,688 in five years, according to a new estimate published on the eve of a controversial vote to restrict welfare payments for new claimants.

A threatened rebellion by more than 120 Labour MPs forced the government into a last-minute climbdown on its welfare bill, by exempting claimants to planned cuts in personal independence payments (Pip), England’s main disability payment.

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Starmer says welfare concessions are ‘common sense’ but dodges funding question – UK politics live

No 10 has offered significant concessions to the rebels, estimated to cost around £3bn a year, amid fears over Tuesday’s vote

Stephen Kinnock, the care minister, was the government voice on the airwaves this morning. Here are the main points he made about the welfare bill U-turn.

Kinnock rejected claims that the U-turn was a sign of weakness. When it was put to him on the Today programme that this move, coming after the U-turns on winter fuel payments and a national inquiry into grooming gangs, showed that if Keir Starmer was pushed, he would give in, Kinnock replied:

I think if you talk to people out there in the country, they respond very positively to politicians listening, engaging, recognising that you don’t get everything right from day one every time, and making the adjustments and the changes that are needed.

And this prime minister will always put the country first. He puts country before party, and he does the right thing for the country.

He defended having a “staggered” approach to changing benefit rules. Asked about the Tory claim that the government was creating a “two-tier benefits system” (see 8.30am), he replied:

Whenever you bring forward change to a complex system, you always have to decide between do you make the change for everybody that’s in that system, in one big move, or do you do it in a more staggered way? What’s clear from the announcement today is that it’s going to be a more staggered process.

He declined to say how much the U-turn would cost. He told Times Radio:

The full details around what we are laying out, what I’ve summarised really today, is going to be laid out in parliament, and then the chancellor will set out the budget in the autumn the whole of the fiscal position and this will be an important part of that.

He said he was now confident that the UC and Pip bill will pass its second reading on Tuesday.

All of the MPs I’ve spoken to who signed the reasoned amendment – MPs from across the party, not just on the left – are sticking to their position because we understand that we are answerable to our constituents.

If the government doesn’t pull the bill, doesn’t consult properly with disabled people and come back to MPs with a serious proposal that protects the dignity of disabled people, I will vote against and I will be far from the only one.

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Keir Starmer says he ‘deeply regrets’ island of strangers speech

Immigration speech was criticised for echoing Enoch Powell’s ‘rivers of blood’ rhetoric

Keir Starmer has said he “deeply regrets” a speech in which he described the UK as being in danger of becoming an island of strangers without tough curbs on immigration.

The prime minister made the remarks in an interview with the Observer, saying he should have read the speech more carefully and “held it up to the light a bit more”.

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Starmer aide Morgan McSweeney under fire after Labour welfare rebellion

Backbenchers feel PM’s chief of staff missed strength of feeling over cuts – and there are deeper tensions at play

Being the prime minister’s right-hand man is a position of extraordinary power and privilege. But when things start to go wrong, you are directly in the line of fire. So has found Morgan McSweeney, the political mastermind credited with helping Keir Starmer win his election landslide, in recent days as the Labour party has collapsed into moral fury over planned welfare cuts.

The softly spoken Irishman, now Starmer’s chief of staff, has become the lightning rod for the frustration of many Labour rebels who backed a wrecking amendment designed to blow up the big welfare bill next week.

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Starmer confirms willingness to make concessions on welfare bill, saying reforms must be fair – UK politics live

‘We want to see reform implemented with Labour values of fairness,’ the PM says

In his final answer Starmer explained how he thought government and business should work together.

A true partnership is not two people or two bodies trying to do the same thing. It’s two people or bodies realising they bring different things to the table.

Government shouldn’t try to run businesses. It’s done that in the past and it doesn’t work particularly well.

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Widespread Labour dissent over welfare bill is sign things are going very badly for Starmer

Prime minister deployed ministers to contain rebellion after more than 100 Labour MPs signed amendment to bill

When a prime minister is forced to deploy his cabinet to try to contain a rebellion, it is not a sign that things are going well. For one with a working majority of 165 MPs, it suggests that things are, in fact, going very badly.

This was the scenario Keir Starmer faced on Tuesday after more than 100 Labour MPs signed an amendment to his welfare bill which could blow up his attempts to reform the disability benefits system.

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Minister defends Liz Kendall’s handling of welfare reform brief despite major rebellion before vote – UK politics live

Pat McFadden insists welfare reform change vote will go ahead as planned but says party will ‘engage with’ rebels

Frances Ryan reports for the Guardian:

Downing Street’s disability cuts will have a “devastating” impact on women’s health and dignity and could breach equality law, the government has been warned.

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Labour MPs launch major rebellion to stop welfare bill

Amendment intended to kill off legislation that would cut benefits could be backed by up to 100 Labour MPs including senior figures

Labour MPs have launched a significant rebellion against the government’s ​benefit cuts with an amendment that could kill its ​welfare bill, spearheaded by senior select committee chairs.

The amendment – which sources said could be signed by up to 100 MPs – declines to pass the government’s welfare changes and calls for a pause, including for further consultation and for support to be in place before any further cuts are made.

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‘High energy costs have held back businesses’, says Miliband as government announces industrial strategy – UK politics live

Prime minister says 10-year industrial strategy marks ‘turning point for economy’ as energy secretary says government will cut electricity costs for businesses

By the way, if you actually wanted to read the Modern Industrial Strategy document published by the government today, you can find it here.

The government has just pushed out a joint statement from business leaders welcoming it, which says:

The Industrial Strategy launched today marks a significant step forward and a valuable opportunity for the business community to rally behind a new vision for the UK – boosting confidence, sentiment, and enthusiasm for investment.

From start-ups and small businesses to large corporates, businesses need a more attractive, stable environment that enables faster, easier, and more certain investment decisions.

For too long high electricity costs have held back British businesses, as a result of our reliance on gas sold on volatile international markets.

As part of our modern industrial strategy we’re unlocking the potential of British industry by slashing industrial electricity prices in key sectors.

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Wes Streeting questions affordability of setting up NHS assisted dying service

‘There isn’t a budget for this,’ health secretary says after MPs vote to legalise procedure in England and Wales

Wes Streeting has voiced doubts over whether the NHS can afford to establish an assisted dying service, after MPs passed a bill to legalise the procedure last week.

The health secretary was previously a supporter of assisted dying but switched sides last year, expressing concerns about the ethics of offering such a service before significant improvements could be made to the NHS.

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