Unfunded tax cuts mean UK ‘will need £60bn spending cuts’

IFS says Kwasi Kwarteng’s mini-budget will leave ministers making serious reductions in public services

Kwasi Kwarteng will need to find £60bn of savings by 2026 to fill the gap left by unfunded tax cuts and the costs of extra borrowing triggered by a panicked reaction on international money markets to the chancellor’s “mini-budget”, according to the Institute for Fiscal Studies.

The UK will also struggle to hit the chancellor’s 2.5% growth target, with economic forecasts by the investment bank Citigroup that the IFS uses to underpin its analysis showing the UK will struggle to grow at more than 0.8% on average over the next five years.

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English district councils warn support services for poorest face axe

Services such as debt advice and hardship funds under threat amid £400m bill caused by inflation

A network of councils in England is warning support services for families hit hardest by the cost of living crisis face being axed amid an unexpected £400m bill caused by soaring inflation.

Services that district councils have no legal obligation to provide – such as debt and benefits advice, hardship funds for families, homelessness prevention projects and help hubs for people facing poverty – are under threat.

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Ethics rules for London mayor must be strengthened, review finds

Boris Johnson may have failed to meet standard of public life when mayor over links to Jennifer Arcuri, GLA finds

Ethics rules for the London mayor must be strengthened as Boris Johnson may have failed to meet the standard expected of public figures over his failure to declare personal links to the US businesswoman Jennifer Arcuri, an inquiry into the affair has found.

An investigation by the Greater London Authority’s oversight committee said Johnson had opened himself up to “a perception of lack of due process and favouritism” over Arcuri’s inclusion on trade missions in an unofficial capacity.

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Adult social care in England is in crisis, say Tory council leaders

Warning of £3.7bn funding shortfall over next 18 months piles pressure on Liz Truss after campaign pledges

Adult social care in England is in serious crisis, Tory council leaders have warned the government, as it faces a £3.7bn funding gap and a growing staffing shortage that has brought many local care providers to the brink of collapse.

The intervention by the County Councils Network, which represents 36 mainly Tory-run authorities, comes amid widespread local government concern over the increasing fragile state of social care. Care costs have accelerated recently, fuelled by unexpected wage and energy inflation.

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Tory-run Thurrock council faces inquiry over ‘exceptional’ debt levels

External commissioners to take charge of finances amid ‘grave concerns’ local services could be at risk

The government has launched an urgent investigation into the finances of a Tory-run council amid “grave concerns” that local services are at risk from the authority’s exposure to more than a billion pounds in loans it took out to fund a series of commercial investments.

The communities secretary, Greg Clark, said government-appointed commissioners would take full control of Thurrock’s finances because of fears over “the exceptional level of financial risk and debt incurred by the council”.

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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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Government to take greater control of Liverpool city council

Intervention expanded to include financial decisions and governance after report calls for urgent reform

The government’s intervention in the running of Liverpool city council is to be expanded to include governance and financial decision-making.

It comes after the publication of another critical report on the local authority by four commissioners appointed last year to work with the council staff in key areas after an inspection.

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York and North Yorkshire to get mayor under £540m devolution deal

Elected leader would take office in 2024 alongside return of powers from Westminster as part of levelling-up agenda

York and North Yorkshire are to elect a mayor and receive £540m of government investment over 30 years in a landmark devolution deal to be signed on Monday.

The agreement will create a new combined authority across the region led by a directly elected mayor, who will have the power to spend the money on local priorities such as transport, education and housing.

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Slough could raise council tax by 20% and be forced to sell off thousands of assets

Local government minister describes scale of financial challenge as ‘unprecedented’

A bankrupt local authority could have to raise council tax by 20% a year and will be forced to sell off thousands of homes and other assets under “unprecedented” plans imposed on it after it ran up catastrophic debts amid overspending running into hundreds of millions of pounds.

The scale of the financial and management chaos at Labour-run Slough council is revealed in a stark report by a team of government commissioners sent in to run the authority after it declared effective bankruptcy a year ago.

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Bournemouth council accused of ‘casino capitalism’ over beach hut sale

Holidaymakers are worried about plans by council bosses to cash in by selling the huts – to boost their budget with a £54m windfall

The multicoloured wooden beach huts lining the golden sands of Bournemouth and Poole were in full use once again this weekend as adults basked in deckchairs and children built sandcastles.

These simple structures on this famous stretch of the Dorset coastline are highly sought-after, with typical waiting times for a long-term rental ranging from five to 20 years. However, some users are now worried about plans by council bosses to cash in on the huts by selling them to a “special purpose vehicle” (SPV) to boost their budget with a £54m windfall.

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Inflation could push English councils into bankruptcy, say leaders

Rise of £2.4bn in costs could be ‘disastrous’ and essential services may need to be cut, says LGA chair

Council leaders in England have said a multibillion-pound financial crisis caused by rising inflation could make local services unviable and even lead to local authorities going bankrupt, unless the government offers emergency funding.

The cross-party Local Government Association (LGA) said local services that were seemingly secure just three months ago were now at risk of closure or cuts as councils scramble to manage an unforeseen £2.4bn rise in energy and pay costs.

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Boris Johnson’s future in the frame as polls close in byelections

Loss of Wakefield, and Tiverton and Honiton could push backbench Tories towards restarting efforts to oust PM

Voting has closed for two crucial byelections, in Wakefield and in Tiverton and Honiton, the results of which could play a pivotal role in Boris Johnson’s political future.

Defeat in both of what were previously Tory-held seats could reignite a challenge to the prime minister from disgruntled Conservative MPs, particularly if the Liberal Democrats overturn a 24,000-plus majority in Tiverton and Honiton.

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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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Report describes ‘fear and intimidation’ at Northumberland county council

Review found council was ‘paralysed’ due to processing freedom of information requests

Northumberland county council operated in a “climate of fear and intimidation” so extreme that senior officers and councillors were constantly making freedom of information (FoI) requests to dig dirt on each other, a report has found.

An independent governance review into the council found it had become “paralysed” due to the “extraordinary” resources devoted to processing almost 5,000 FoI requests made within three years, many from senior officers and councillors.

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Sinn Féin becomes largest party in Northern Ireland assembly – as it happened

With Sinn Féin set to become the biggest party at Stormont for the first time, O’Neill says the results mark a ‘new era’ for ‘our politics and for our people’

The elections to the Northern Ireland assembly are quite different to most UK elections. Members of the assembly are elected to 18 multi-member constituencies by single transferable vote.

Each constituency has five representatives, totalling 90 overall. Voters assign preferences to candidates on a ballot slip. If a candidate gets enough first-preference votes, they win a seat, and if not, second and then third preferences – and so on – are counted until all seats are filled.

Because of this, multiple counts are needed in each constituency, which means results can take a while to compile. It is possible for the first count not to result in the award of a seat. Another consequence is that it is not clear whether a party has increased or decreased its total seats in a constituency or overall, until all seats have been awarded.

By the terms of the Good Friday agreement the government of Northern Ireland is shared between the two main communities: nationalists, who favour closer ties with the Republic of Ireland, and unionists, for whom Northern Ireland’s position in the UK is more important. The largest party in the assembly appoints the first minister, and the largest party from the other community appoints the deputy first minister.

Some parties with cross-community support or whose supporters do not identify strongly with either community think this arrangement perpetuates divisions, but in practice since 1998 the largest party has always been from the unionist community and the second-largest from the nationalist.

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Sinn Féin celebrates victory but DUP warns over Northern Ireland protocol

DUP will refuse to join new administration until UK government addresses post-Brexit trade border deal

Sinn Féin was celebrating a historic victory in the Stormont assembly election on Saturday despite warnings from the Democratic Unionist party that it would block the formation of a new power-sharing executive until the Northern Ireland protocol was changed.

As counting resumed ahead of the allocation of final seats, it was clear that Sinn Féin, with 29% first preference votes, had overtaken the DUP, which won 21.3%. It meant the all-Ireland republican party would be entitled to nominate its deputy leader, Michelle O’Neill, as the Northern Ireland’s first nationalist first minister.

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Michelle O’Neill: centre stage for Sinn Féin’s prospective first minister

After leading party to victory in Stormont, former Dungannon mayor is set to make history

In May 1993, as the IRA edged towards the end of its armed campaign, Michelle O’Neill was beginning her own struggle. She was a 16-year-old working-class schoolgirl from Clonoe, a small village in County Tyrone, with a newborn baby.

The road ahead looked rocky. She had not finished school and perhaps never would, because that was the fate of many unmarried teenage mothers in Northern Ireland. Some teachers at her Catholic grammar school were not supportive.

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Local elections 2022: Tories lose hundreds of seats to Labour and Lib Dems; Sinn Féin set to become largest party in NI elections – live

PM insists ‘mixed’ results also included some ‘remarkable gains’ for Conservatives; Labour, Lib Dems and Greens celebrate key wins

One of the trickiest contests for Labour is in Sunderland, where it risks losing control of the council for the first time since it was founded in 1974, says the Guardian’s North Of England correspondent Josh Halliday.

Labour has a majority of only six councillors on the 75-seat authority, meaning it could easily fall into no overall control when ballots are counted.

There are enough clues on the doorstep and judging by the scale of the postal vote, that’s gone extremely well and we’re getting a big turnout. That said, neither party can be overly confident about which way many seats will go.

Partygate doesn’t come up as much as you’d think and for those who have brought it up they’ve said things like ‘You’re all as bad as each other’ or ‘that’s politics’.

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Conservatives brace for losses as votes counted in local elections

Labour and Lib Dem sources say turnout appears to be low in possible sign of Tory voters staying away

The Conservatives are braced for a nerve-shredding 24 hours after voting closed in local elections across the UK, with Labour and the Liberal Democrats expecting to make gains.

Taking place against the backdrop of the cost of living crisis, the first nationwide polls since Partygate will be widely read as a test of whether Boris Johnson has become an electoral liability.

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