Minister won’t rule out support cuts for children with EHCPs amid Send overhaul – UK politics live

Stephen Morgan, the early education minister, would not confirm every child who has an EHCP would continue to keep the same provisions

The Conservatives will try to change the government’s welfare Bill to tighten up access to personal independence payments (Pip) and universal credit, PA Media reports. PA says:

Kemi Badenoch will pledge that the Tories are “now the only party committed to serious welfare reform” after Keir Starmer shelved plans to restrict eligibility for Pip in the face of a backbench revolt this week.

The Tories will look to lay amendments to the legislation – set to be renamed the universal credit bill – and party leader Badenoch is due to deliver a speech on welfare on Thursday.

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Keir Starmer should be bold and consider a wealth tax, Neil Kinnock says

Former Labour leader says government needs a better narrative and risks being bogged down by ‘imposed limitations’

Keir Starmer’s government is suffering from a “lack of narrative” about what it is trying to achieve and should be more fiscally bold and consider a tax on wealth, Neil Kinnock has said.

The former Labour leader said too many of the government’s achievements were being overshadowed. A year after a landslide election win, the party is struggling in the polls and has U-turned on policies including cuts to winter fuel payments and welfare.

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Trump’s big bill achieved what conservatives have been trying to do for decades

The Republican fantasy of lower taxes and hard-to-access social safety net programs will now be a reality

For decades, Republicans have argued that the US would be better off if taxes were low, and programs to help low-income Americans were harder to access. With Donald Trump’s marquee tax and spending bill now set to become law, the country will find out what it’s like to live under that sort of system.

The massive legislation that Trump plans to sign Friday will make his campaign promises a reality by extending tax cuts enacted during his first term, and creating new deductions aimed at the working-class voters who backed his re-election.

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Minister declines to rule out tax rises after welfare concessions – UK politics live

Pat McFadden says there will be ‘financial consequences’ to Keir Starmer’s climbdown amid renewed speculation over Labour’s budget plans

Helen Miller, the new head of the Institute for Fiscal Studies thinktank, said the lack of savings from the personal independence payments (Pip) changes made tax rises “increasingly likely” at the budget and that the chancellor, Rachel Reeves, now had “very little wriggle room”.

The welfare bill as it stood would now not create any savings, she told Today:

By the end of this parliament the government will save nothing.

After govt’s 11th hour 59th minute climbdown over Pip it’s time for Reeves to go back to the drawing board and look for fairer and more sensible ways to raise money – like a wealth tax on multimillionaires and billionaires to raise up to £24bn a year.

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Welfare bill climbdown will have ‘a cost’ at budget, says senior minister

Pat McFadden says U-turn will change calculations, as IFS says tax rises in autumn look increasingly likely

There will be “a cost” to the government’s climbdown on welfare changes at the budget, one of Keir Starmer’s senior ministers has said, as a leading fiscal thinktank said new tax rises appeared increasingly likely.

Pat McFadden, the chancellor of the Duchy of Lancaster, defended Starmer and the work and pensions secretary, Liz Kendall, after the second reading of the government’s main welfare bill passed its first Commons test only after a central element was removed.

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UK borrowing rises to £17.7bn, adding to pressure on Rachel Reeves

May figure second highest for month on record amid fears chancellor is struggling to keep within spending rules

Higher tax receipts were unable to prevent a rise in public sector borrowing in May to £17.7bn, up from £17bn a year earlier and the second highest for the month on record.

A poll of City economists had forecast public sector net borrowing – the difference between public spending and income – would be £17.1bn.

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Trump’s ‘revenge tax’ could threaten foreign investment into US, analysts say

Concerns raised that section 899 could backfire and also undermine dollar’s safe haven status

Foreign investment into the US could be threatened by Donald Trump’s new “revenge” taxes, analysts have warned.

A provision within the president’s One Big Beautiful Bill Act will allow the US to apply higher taxes on foreign individuals, businesses and investors connected to jurisdictions that impose “unfair foreign taxes” on US individuals and companies.

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Keir Starmer faces Kemi Badenoch at PMQs ahead of government’s spending review – UK politics live

Prime minister faces Conservative party leader as chancellor to reveal how government plans to spend almost £1.4tn in 2026-27

Green party MPs and activists staged a protest outside parliament today saying the government should use the spending review to announce a wealth tax. In a post on social media, Adrian Ramsay, the party’s co-leader, said:

We expect the Chancellor to take another axe to public spending today: decline by design from a govt that refuses to tax wealth to properly fund our overstretched public services & support the most vulnerable. We need to invest in a secure & fairer future. #TaxExtremeWealth

Senior SNP figures held a secret meeting on Monday night to discuss removing John Swinney as party leader, The Herald has learned, following last week’s defeat in the Hamilton, Larkhall and Stonehouse byelection.

One of the 25 attendees said the first minister had two weeks to come up with a new strategy on independence — or risk facing a leadership challenge at the SNP conference in October.

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Sizewell C power station to be built as part of UK’s £14bn nuclear investment

Ed Miliband promises to ‘get Britain off the fossil fuel rollercoaster’ with new plant expected to create 10,000 jobs

The biggest nuclear programme in a generation will “get Britain off the fossil fuel rollercoaster”, the energy secretary, Ed Miliband, has said, announcing £14.2bn to build a new nuclear power station and a drive to build small modular reactors.

The multibillion-pound investment at Sizewell C on the Suffolk coast, which has been long expected, will create 10,000 jobs and power the equivalent of 6m homes.

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Winter fuel payments U-turn likely to lead to higher taxes or other welfare cuts, says IFS director – UK politics live

Treasury says move to restore the funding for most pensioners will cost around £1.25bn

The Conservatives and the Liberal Democrats are both trying to take credit for the winter fuel payments U-turn by the government.

This is from Kemi Badenoch, the Tory leader.

Keir Starmer has scrambled to clear up a mess of his own making. I repeatedly challenged him to reverse his callous decision to withdraw winter fuel payments, and every time Starmer arrogantly dismissed my criticisms.

This humiliating U-turn will come as scant comfort to the pensioners forced to choose between heating and eating last winter. The prime minister should now apologise for his terrible judgement.

Finally the chancellor has listened to the Liberal Democrats and the tireless campaigners in realising how disastrous this policy was, but the misery it has caused cannot be overstated.

Countless pensioners were forced to choose between heating and eating all whilst the government buried its head in the sand for months on end, ignoring those who were really suffering.

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Labour’s £13.2bn warm homes plan will not face cuts in spending review

Source confirms decision that will help meet net zero targets and pledge to cut energy bills by £300

Ministers have decided not to cut Labour’s landmark £13.2bn fund to fix draughty homes and install heat pumps and solar panels in next week’s spending review, it has emerged.

A government source confirmed Rachel Reeves, the chancellor, would not be making cuts to the flagship warm homes plan. The decision, which was first reported by the Daily Telegraph, marks a victory for Ed Miliband in his negotiations with the Treasury over the Department for Energy Security and Net Zero’s budget.

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Rachel Reeves to announce £15bn in transport spending amid questions over police cuts – UK politics live

Chancellor will give speech in Greater Manchester, while police leaders have written to the PM over potential cuts in next week’s spending review

Good morning. A week today Rachel Reeves, the chancellor, will unveil the outcome of the spending review, which will set spending budgets – day-to-day (“resource”) and capital – covering most of the rest of this parliament. Many departments will get resource budgets that feel like cuts, but the Treasury has a more positive story to tell on capital spending and today Reeves is giving a speech announcing a £15bn spending spree on transport projects, mostly in the north of England.

Pippa Crerar and Jessica Elgot have all the details in our splash story.

We are deeply concerned that the settlement for policing and the [NCA], without additional investment, risks a retrenchment to what we saw under austerity. This would have far-reaching consequences.

Policing and the NCA have seen a sustained period where income has not kept pace with demand. Often, this has been masked by attempts to defer costs in the hope of more income in future, but that now leaves policing with very limited room for manoeuvre.

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English mayors push for visitor levy to boost income from tourism

Group led by Steve Rotheram says introducing local tourism tax would empower regional growth

A coalition of mayors from across England are urging the government to allow local authorities to bring in a Barcelona-style visitor levy to generate income from tourism.

The group, led by the Liverpool city region mayor, Steve Rotheram, argues that a visitor levy would unlock vital funding for tourism and cultural infrastructure, empower regional growth and reduce dependence on central government funding.

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Starmer defends not putting date on 3% defence spending target as UK to announce plans to build new submarines – politics live

Prime minister to launch strategic defence review in Glasgow this morning

Here is the clip of Keir Starmer in his Today programme interview refusing to say when the government will raise defence spending to 3% of GDP.

In an interview with the Times published on Saturday John Healey, the defence secretary, said that he had “no doubt” that Britain would reach the 3% target by 2034 – ie, before the end of the next parliament. Yesterday he described this as an “ambition”.

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No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

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No 10 won’t say if fuel payments U-turn will be implemented in time for this winter – UK politics live

Downing Street unable to say how many more pensioners would receive winter fuel payments or when changes would come in

YouGov has published more details of its polling on the electorate’s relationship with Labour, as covered in the Sky News report mentioned earlier. (See 10.06am.)

It shows that Reform UK supporters are most likely to think that Labour is trying hard to appeal to them – but least likely to say they would respond positively. Only 4% of Reform UK supporters say they would consider voting Labour, the poll says.

I ask her if there will be any changes as demanded by MPs

She says while “we want to make sure we address all of people’s concerns, but stressed: “whatever the fiscal position that the government faces, I think the system as a whole needs to change.”

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UK asking other countries to host ‘return hubs’ for refused asylum seekers, Starmer confirms – UK politics live

PM on trip to announce increased cooperation against people smugglers alongside Albania’s prime minister, Edi Rama

All Commons Speakers, at least for the past 30 years, have complained about the government making major announcements to the media first, and not to parliament first. But rarely have any of them sounded quite as furious about this as Lindsay Hoyle, who this morning delivered an extended reprimand to the government about this at the start of an urgent question.

The UQ was about plans to limit the use of prison recall – something announced by the justice secretary, Shabana Mahmood, at a press conference yesterday, while the Commons was still sitting. After pointing this out, and reminding MPs that details of the immigration white paper were given to the media extensively, long before the ministerial statement about it was delivered in the Commons on Monday, Hoyle went on to imply that, as well as regularly breaking the ministerial code, ministers were also guilty of hypocrisy. He said:

I note that those who now occupy senior ministerial roles were not slow to complain when the previous government made major policy announcements outside this house.

I will continue to uphold and defend the rights of this house, the rights of backbenchers, to be here, and hear it first, the most important announcements of government policy, and the right of honourable members to question ministers on those announcements in person.

When Parliament is in session, the most important announcements of government policy should be made in the first instance in Parliament.

If the government is not going to take the ministerial code seriously, who will?

I’ve got to say, I don’t like this. I believe I am here to represent all backbenchers and backbenchers have the right to ask questions. I’m not interested in Sky News or the BBC or political programmes. I’m here to defend all of you. I will continue to defend. Please do not take MPs for granted. It is not acceptable.

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UK interest rates fall to 4.25% as Bank of England announces a quarter-point cut

Move follows run of downbeat economic data and looks to cushion UK from Trump’s trade war fallout

Bank of England policymakers have cut interest rates by a quarter point to 4.25% to cushion the UK economy against the impact of Donald Trump’s trade war.

The widely expected move from the Bank’s monetary policy committee (MPC), its fourth cut since last August, should lead to cheaper mortgages for homeowners.

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Treasury threatens Defra with £4bn bill if Thames Water nationalised

Exclusive: Treasury threat an example of ‘scare tactics’ to help force through private sector deal, sources suggest

Whitehall officials have been at loggerheads over the fate of Thames Water since the Treasury told the environment department that it would have to meet the cost of a multibillion pound temporary nationalisation.

Britain’s biggest water company recently came within days of running out of money. Thames is in a desperate race to find a buyer willing to inject cash, with the US private equity firm KKR in pole position.

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Reeves defends Labour’s £40bn tax rise as businesses prepare for NICs hike

Chancellor says autumn budget enabled £25bn of extra investment into NHS and shorter waiting lists

Rachel Reeves has defended the £40bn in tax increases in autumn’s budget as businesses brace for their impact, saying NHS waiting lists would now be higher if she had not taken action.

Employers are set for a £25bn increase in national insurance contributions (NICs), which comes into force on 6 April, at the same time as consumers are being hit by a slew of increases in bills for everything from utilities to car tax.

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