Starmer only read China spy witness statements this morning, No 10 says, as Cleverly accuses PM of misquoting him – as it happened

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Lindsay Hoyle starts by telling MPs that speakers from the parliaments in Fiji and Ukraine are in the gallery. And he says it is four years to the day since David Amess was murdered.

It’s PMQs. Here is the list of MPs down to ask a question.

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Tory plan to abolish stamp duty ‘will benefit London and the wealthiest the most’ – as it happened

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Voting in the Labour deputy leadership election opens today. Lucy Powell, the former Commons leader, is seen as the favourite and, as Jessica Elgot reports, Powell told supporters yesterday that, if she is elected, she will use the post to argue for changes in the way the government is operating. “We can’t sugarcoat the fact that things aren’t going well,” she said.

Powell is no longer a government minister and, if she is elected deputy leader, she will do the job from the backbenches. In an interview on Newsnight last night, Bridget Phillipson, the education secretary standing against Powell, said a Powell victory would be “destabilising” for the party. She said:

[Electing Powell] risks destabilising the party … we best achieve what we need to do together when we have those fierce conversations, including disagreements, behind closed doors.

Members need to understand that there’s a potential challenge around all of that – that if you’re not inside when the big decisions are being made, you’re not at that table, you’re not in those conversations.

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France is in crisis but bond markets leave other governments at risk of meltdown too

Investors rattled by resignation of French PM but country is not alone in trying to grapple with political maths

Sébastien Lecornu’s abrupt resignation as the French prime minister on Monday after less than a month in the role marked the latest clash between France’s stretched public finances and its polarised politics.

Lecornu was the latest prime minister to try and fail to cobble together a package of spending cuts and tax rises that would pass muster in a parliament without a clear majority, and contain mounting bond market pressures.

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‘First job bonus’ worth £5k planned for young people, Stride tells Tory conference – UK politics live

Shadow chancellor sets out spending plans as party conference continues in Manchester

Mel Stride, the shadow chancellor, was doing an interview round for the Conservatives this morning, and Miatta Fahnbulleh, the faith and communities minister, was on the air on behalf of the government. They were both asked about the latest development in the flag phenomenon – the former footballer turned property developer Gary Neville saying that he took down a union flag flying at one of his building sites because he felt it was being used in a “negative fashion”.

Asked if Neville (a Labour supporter) had a point, Fahnbulleh told ITV’s Good Morning Britain:

I think he’s really right, that there are people who are trying to divide us at the moment …

I spent a lot of time going around our communities, talking to people. People are ground down. We’ve had a decade-and-a-half in which living standards haven’t budged and people have seen their communities held down. And you will get people trying to stoke division, trying to blame others, trying to stoke tension.

I think people that put up flags, the vast majority of people that do, do so for perfectly reasonable patriotic reasons. And I think reclaiming our flag as a flag of unity and decency and tolerance, which is the way most people see our flag, is a very positive thing.

So I’m afraid I really cannot agree with the comments that he’s made.

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Tories say people denied benefits in UK can return to home countries

Mel Stride outlines plans to slash £47bn a year from public spending, including £23bn welfare cut

Overseas nationals denied benefits under a Conservative plan to limit social security to UK citizens would have the option to return to their own countries, the shadow chancellor, Mel Stride, has said.

Before his speech to the Conservative conference on Monday, Stride set out Tory proposals to cut £47bn a year from public spending, with the biggest chunk, £23bn coming from reductions in welfare.

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Andy Burnham calls for UK to rejoin EU within his lifetime and rejects claim he is fiscally irresponsible – as it happened

Mayor of Greater Manchester says he would have to be ‘wrenched’ out of city and says he wants UK to rejoin EU. This live blog is closed

In her Today interview Rachel Reeves was asked about a FT report saying she will urge business leaders to highlight the risks of a Reform UK government in her speech later.

The FT say Reeves will tell the Labour conference.

Who is standing up for Britain’s stability. A Labour government that is resolute in cutting interest rates and borrowing or a Reform party that cheered on Liz Truss’ mini-budget?

Who is standing up for Britain’s businesses? A Labour government that is forging a closer relationship with our nearest trading partners or a Reform party that talks Britain down and is hungry to cut us off from the world?

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Rachel Reeves pledges a library in every primary school in England

Exclusive: Chancellor also set to unveil plans to get young people back into work in party conference speech

Rachel Reeves will deliver a library in every primary school in England as part of Labour’s plans to give all children the best start in life regardless of their background.

The scheme, which will create libraries in the 1,700 primaries currently without them, will be funded from £132.5m of dormant assets that will be unlocked to give young people access to cultural opportunities.

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Taxpayers lose £400m as result of investment fund set up by Rishi Sunak

Report shows 334 companies backed by Future Fund, set up in May 2020 by then chancellor, have since gone under

UK taxpayers have lost £400m following the collapse of hundreds of startups backed by a heavily criticised Covid-era investment fund launched by Rishi Sunak when he was chancellor.

The Future Fund spent £1.14bn backing 1,190 companies, some of them of types not usually associated with government portfolios such as the sex party organiser Killing Kittens and the now defunct festival tickets business Pollen.

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Netanyahu’s ‘super-Sparta’ vision braces Israel for isolated economic future

Israeli PM’s outline of partial autarky and more militarised society stirs up backlash and concern over pariah status

Hours before unleashing a ground offensive against Gaza City on Tuesday, Benjamin Netanyahu braced his country for a future of mounting economic isolation, urging it to become a “super Sparta” of the Middle East.

The future the prime minister laid out for Israel, of a more militarised society, a partial autarky – or economically self-sufficient country – with limited trade options and relying increasingly on homemade production, has stirred up a backlash among Israelis who are ever more uneasy at the prospect of following him down the path to a pariah state.

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Business rates rise would put hundreds of big shops at risk, say UK retailers

Concern for ‘anchor tenants’ as trade body warns that stores could put up prices or cut jobs to protect profits

Up to 400 large shops are at risk of closure with as many as 100,000 jobs at risk if the government goes ahead with plans to hit stores with higher business rates, retailers have warned.

Some of the UK’s largest retail premises, including supermarkets and department stores, would face higher property tax charges under new rules being considered by the government before November’s budget.

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New home secretary Shabana Mahmood says she will not run for deputy leader after Labour accused of ‘stitch-up’ over contest – UK politics live

The MP said police should be focusing on people who are members of the group, not those who ‘recklessly express support’ for it

Paul Nowak, the TUC general secretary, used his speech to conference this morning to say that the TUC expected the government to deliver its workers’ rights bill “in full”. He said employment rights were “overwhelmingly popular with voters across the political spectrum”.

And he condemned Reform UK for its stance on employment rights. After saying that Nigel Farage claimed to represent working class people, he went on:

Here’s the truth – there is a world of difference between what Nigel says and what Nigel does.

Every single Reform MP, including Mr Farage, voted against outlawing fire and rehire, against banning zero hours contracts and against day one rights for millions of workers.

Ask yourself this fundamental question. Do you believe in your gut that that Nigel Farage really cares about the people of Clacton when he’s off collecting his speaker’s fees in the United States?

Do you believe that Richard Tice really worries about the people of Skegness while he’s living it up at home in Dubai, or are they just rightwing conmen lining their own pockets?

I just have to say this. No amount of TikToks, or ozempic, or expensive haircuts, will ever hide the eager inner ugliness of Robert Jenrick.

The man who ordered murals painted over in a reception centre for children seeking asylum is indeed a xenophobe, an opportunistic xenophobe hoping to create a political climate that ends up with far right folks laying siege to hotels and black and Asian people being threatened and harassed on our streets.

If we look at the powerful geopolitical push factors, they’re things like regime change. We think Afghanistan, war, civil conflict. And when we look at people crossing in small boats, where do they come from? Well, the top nationalities: Afghan, Eritrea, Iranian, Syrian, Sudanese – just those five nationalities account for almost two thirds of all small boat arrivals, and these individuals are from some of the most chaotic parts of the world.

But there are also some pull factors, and the question is, why not claim asylum in France, why come to the UK? A number of reasons recur there when we speak with asylum seekers. It’s the presence of family members, the English language.

In those circumstances, typically, flagged upon the system, the UK government would be able to issue a speedy refuse refusal and try and effect removal.

As it is, people arrive, we don’t have that record, so we don’t know who they are.

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Canada’s Mark Carney signals austerity measures as government shifts focus from Trump to economy

Prime minister cautions Canadians as Ottawa moves to curb spending to balance near-record military expenditures

Mark Carney has told Canadians to prepare for austerity measures and his finance minister warned of “tough choices” in the coming months, as the government attempts to balance near-record defence spending, cuts to government programs and a trade war with the United States.

Carney, the former central banker and economist turned politician, has been meeting senior ministers before the fall budget, and hinted cuts were coming to the federal bureaucracy.

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Scrap two-child benefit cap to help lift 4m people out of poverty, government urged

Exclusive: Cross-party Poverty Strategy Commission says abolishing limit would be part of its ‘once in a generation’ plan

A cross-party commission including former welfare ministers is urging the government to scrap the two-child benefit limit as part of an ambitious “once in a generation” plan to lift millions of people out of poverty.

The Poverty Strategy Commission said billions of pounds of investment – including a boost to the rate of universal credit – was needed to reverse record levels of poverty in the UK, and tackle longstanding failures over rising hardship and destitution.

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Farage a ‘Putin-loving, free speech impostor’ says Democrat before Reform head’s US speech – UK politics live

Jamie Raskin says Farage is ‘a Trump sycophant’ before UK politician addresses the House judiciary committee in Washington

Kemi Badenoch is probably hastily redrafting her PMQs script in the light of Angela Rayner’s statement about underpaying her stamp duty. She has got less than half an hour to craft the right questions. And she will probably want to ask about the economy, and hate speech laws, too.

Here is the list of MPs down to ask a question.

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Treasury targeting inheritance tax reforms to help plug UK deficit

Exclusive: Chancellor also looking at tweaks to capital gains tax to try to bridge £40bn-plus spending gap before budget

The Treasury is looking at ways to raise more money from inheritance tax amid growing pressure on the country’s finances ahead of the autumn budget, sources have told the Guardian.

Officials have been tasked with examining whether tightening rules on the gifting of money and assets could be one way of addressing a gap between revenue and spending that is estimated to reach more than £40bn.

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Conservatives not close to recognising ‘how badly placed they are’, says Gauke

Former minister says Tories are ignoring heartland voters and risk losing ground to Reform in next election

The Conservatives are “not close to recognising” how badly they are positioned for the next election, the former cabinet minister David Gauke has said.

Gauke, a former justice secretary who also worked in the Treasury under George Osborne, said many in the party were not willing to fully repudiate Liz Truss and Boris Johnson.

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Starmer declines to rule out election pledge-breaking tax rises in budget after claim Treasury must fill £40bn deficit – as it happened

Prime minister defends government’s handling of economy but will not give assurances over not raising income tax, employee NI or VAT

Ed Davey, the Liberal Democrat leader, has urged Keir Starmer to call Donald Trump to encourage him to use his influence to block Israel’s plans for a “full occupation” of Gaza.

In a statement, Davey said:

[Israeli PM Benjamin] Netanyahu’s latest proposals for the occupation of all of Gaza are utterly horrifying.

If realised, they will only wreak yet more destruction on Gazans - while gravely endangering the lives of the hostages still held in Hamas’ captivity.

I see NIESR is talking today about a £41.2bn hole in the UK public finances

Two things are newsworthy:

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Rachel Reeves needs to put up taxes to cover £40bn deficit, thinktank says

NIESR suggests a rise of 5p in the pound on basic and higher rate of income tax would fill the budget gap

Rachel Reeves will need to raise taxes to close a government spending gap that is on course to reach more than £40bn after a slowdown in economic growth and higher-than-expected inflation, according to a leading thinktank.

In a blow to Labour’s hopes of balancing the books without breaking manifesto commitments ruling out personal tax rises, the National Institute of Economic and Social Research (NIESR) said a number of factors would knock off course the chancellor’s plans to stay within Whitehall spending limits.

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Starmer and Reeves should consider wealth tax, says former shadow chancellor

Anneliese Dodds urges government not to duck ‘big decisions’ in autumn budget

The Treasury should consider a wealth tax to close the growing gap in the public finances, according to a Labour former shadow chancellor.

Anneliese Dodds, who held the role under Keir Starmer in opposition, said ministers must have a “full and frank discussion” with the public about the “really big decisions” they had to take at this autumn’s budget.

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Ofwat to be abolished in ‘reset’ of water industry regulation

Environment secretary backs plan to end sewage spills and financial mismanagement in England and Wales

A new water regulator will replace the powers of Ofwat, the Drinking Water Inspectorate and the Environment Agency to “reset” a sector tarnished by scandals over sewage spills and financial mismanagement, after a major review of the sector.

The government will adopt the recommendation for England and Wales made in the review it commissioned from Sir Jon Cunliffe, a former deputy governor of the Bank of England, which was released on Monday. In England, the powers of Natural England will also be subsumed.

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