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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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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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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‘I never expected this in the UK’: modern slavery expert receives death threat

Migrants at Work founder Aké Achi claims police failed to act on letter sent to his home warning of harm to his family

A leading modern slavery expert who pursues employers on behalf of exploited overseas workers, recovering thousands of pounds for them in the process, has received a threat on his life.

Aké Achi, founder and chief executive of Migrants at Work, an organisation which protects workers’ rights, says the letter was posted to his home.

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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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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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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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Keir Starmer dodges questions on two-child benefit cap in first PMQs as prime minister – UK politics live

Labour leader quizzed by SNP on benefit cap after suspending seven Labour MPs over their stance on the issue

Cabinet secretary, Simon Case, is reportedly being advised to step down permanently from his role for health reasons at the end of this year, writes Politico.

The outlet reports:

According to people familiar with the matter, Case is likely to need to step down in the new year on the advice of doctors, who are continuing to treat him for a neurological condition diagnosed more than a year ago.

Case is currently working at full capacity, but the condition is affecting his mobility and he now walks with the aid of a stick.”

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Overhaul UK benefits to tackle child poverty, charities urge

Report warns of crisis of poverty and mental health which ‘casts a shadow’ over young people’s wellbeing

Ministers have been urged to reform the benefits system to tackle child poverty, after a report found it to be a major cause of mental illness that “casts a shadow” over young people’s wellbeing.

The report, by the Centre for Mental Health, Save the Children UK and the Children and Young People’s Mental Health Coalition, found that the number of children living in poverty in the UK had increased to 4.3 million, while one in five children and young people aged between eight and 24 had a diagnosable mental health problem.

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James Cleverly hints he will join Conservative leadership contest – UK politics live

Shadow home secretary says he has ‘thought about personal contribution’ to the Tories and the UK as nominations open on Wednesday

James Cleverly has warned Tory leadership rivals not to “divide up and factionalise”, responding to Suella Braverman words that the Tories must not become “a collection of fanatical, irrelevant, centrist cranks”.

Cleverly told Sky News: “Trying to carve up and divide up and factionalise … is the wrong way of thinking.”

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Former PM Harold Wilson sold private papers to help fund his care

Ex-Labour leader initially planned to sell personal and political documents to Canadian university for £212,500

The former UK prime minister Harold Wilson agreed to sell his archive of private papers to help fund his care, official documents have revealed.

Papers released by the National Archives and identified by the BBC show Lord Wilson initially planned to sell the collection to McMaster University in Hamilton, Canada, for £212,500 – the equivalent of about £700,000 in today’s money.

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Neil Kinnock tells Labour MPs ‘tide is shifting’ towards closer ties with Europe

Former leader rallies pro-EU MPs who German ambassador says now vastly outnumber ERG group of Eurosceptic Tories

Neil Kinnock has delivered a rallying cry to pro-EU Labour MPs, telling them that “fortune favours the brave” when it comes to forging closer ties with Europe.

The “tide is shifting”, the former party leader told a reception of the Labour Movement for Europe (LME), where there was applause when Germany’s ambassador told of his delight that the grouping’s more than 100 MPs now vastly outnumbered the Conservatives’ European Research Group of Eurosceptic MPs.

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No 10 denies government has changed position on two-child benefit cap – UK politics live

Spokesperson cites ‘fiscal inheritance’ after apparent softening of position by Starmer and Phillipson

Keir Starmer was asked about his relationship with US vice-president Kamala Harris.

“Obviously in the first instance, it’s for the Democratic Party to decide who they want to put forward. It is then for the American people to decide who they want as their president.

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Labour facing moment of truth over tax pledges, economists warn

Experts say 5.5% pay increase for public sector not ‘consistent’ with spending plans that rule out tax rises

Labour is fast approaching a moment of truth over its election pledges on tax and spending, experts have warned, after Rachel Reeves indicated the government could agree above-inflation pay rises for public sector staff.

The chancellor promised a full statement on pay board recommendations that teachers and NHS workers should receive 5.5% pay awards, ahead of an autumn budget that is set to be one of the most difficult economic balancing acts in years.

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Labour MP calls two-child benefit cap ‘heinous’ in latest call to scrap policy

Keir Starmer under pressure to scrap limit as more than dozen MPs thought to support king’s speech amendment

Keir Starmer has come under further pressure to scrap the two-child benefit limit after another of his backbench MPs described the policy as “heinous”.

Writing in The Sunday Times, Canterbury MP Rosie Duffield said the cap, which came into effect under then-chancellor George Osborne in 2017, was “sinister and overtly sexist” and had been the main reason driving her to stand for parliament.

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