UK inflation falls by more than expected to 2.6% in lift for Andy Burnham

Annual June figure comes after new PM pledges to reduce cost of living and improve economy

UK inflation dropped by more than expected in June to 2.6%, in a boost for Andy Burnham’s plans to reduce the cost of living.

The new prime minister has pledged to bring down the cost of living to give households more disposable income and improve the outlook for the economy, announcing a winter VAT cut on electricity bills and lowering the cap on bus fares in England.

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Andy Burnham vows to ‘bring back hope’ as he unveils his cabinet

New prime minister says government must ‘do better’ to deliver change but promises prudent approach to economy

Andy Burnham has said his arrival in power will “bring back hope” to Britain as he launched his premiership with the surprise appointment of John Healey as chancellor and a promise to repair the damage caused to communities during the Thatcher era.

The new UK prime minister acknowledged people were “fed up” with politics as he addressed the country after taking over from Keir Starmer in Downing Street, saying the government needed to “do better” to deliver real change.

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‘We need to be careful’: Andy Burnham’s team keenly aware of fiscal tightrope

Chancellor pick and early policies avoid market meltdown but next week remains ‘moment of real peril’

Andy Burnham has not quite gone for Keir Starmer’s extreme caution in the run-up to entering No 10 – but he is certainly aware that any early wrong moves would cost him.

Back in 2024, Starmer was criticised for his “Ming vase” strategy of treading very carefully so as not to drop a valuable metaphorical piece of china being carried across the room.

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UK defence spending plan ‘well short of what’s required’ and harder choices needed, says John Healey – as it happened

Ex-defence secretary John Healey and ex-defence minister Al Carns have given resignation statements to MPs

Speaking to reporters at the G7, Keir Starmer also defended the defence investment plan (DIP) draft that led to John Healey’s resignation as defence secretary last week. Starmer confirmed that Dan Jarvis, the new defence secretary, is getting some input before the publication of the DIP in its final version.

Starmer said:

The position on investment in defence is firstly that we increased last year defence spending from 2.3% to 2.6%, that’s the biggest increase since the 1980s, and that means £270bn will be spent this parliament on defence.

On top of that [the] defence investment plan which obviously gives us capability for the future. We will put even more money in relation to that. I’ve been really clear that’s required difficult decisions, I have taken the decision to reallocate money from other departments.

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Tuesday briefing: How the UK’s military spending row exposes Starmer’s defence dilemma

In today’s newsletter: An argument about money has also spotlighted questions about Britain’s place in the world and the changing face of warfare

Good morning. What conflict has raged longer than the hundred years war? The fight between the Ministry of Defence and the Treasury over defence spending.

I’d love to claim this as my own, but avoid patter theft this early in the day. So I’ll credit my colleague Dan Sabbagh, the Guardian’s defence and security editor, who spoke to me ahead of this week’s G7 meeting, in France, where Keir Starmer arrived yesterday for what could be his final international summit. The prime minister can anticipate candid discussions about international partnerships in conflicts in Ukraine and the Middle East, both of which may soon demand increased involvement from the British military.

Middle East | Donald Trump has declared that the strait of Hormuz will be “completely open” from Friday, as western leaders gathering at the G7 summit in Évian-les-Bains battled to prevent the fragile US deal with Iran from almost immediately unravelling.

UK politics | Political hatred and division in the UK is probably worse now than during the Brexit referendum, when Jo Cox was murdered, says Kim Leadbeater, Cox’s sister who is now also a Labour MP.

Crime | A schoolteacher described as a “serial manipulator and a serial liar” has been found guilty of sexually abusing and murdering a baby he and his partner had adopted.

Environment | Half of the world’s children are exposed to at least three overlapping climate hazards threatening their health, education and survival, according to a Unicef report.

US news | Eight people are presumed dead after a B-52 bomber crashed shortly after takeoff on Monday morning at a US air force base in California’s Mojave Desert, officials said.

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‘Unbelievable’ waste and inefficiency at MoD, says ex-defence minister Al Carns

Exclusive: Carns, who quit last week, says he was angered by unwillingness to confront sunk costs of legacy programmes

There is “unbelievable” waste and inefficiency at the Ministry of Defence (MoD), the former armed forces minister Al Carns has said, adding that every time he would “turn a stone over” he would get another shock.

Carns said that during his time as a defence minister he had been angered by the unwillingness to confront the sunk costs of legacy programmes – and suggested mismanaged programmes such as tanks investment should be scrapped in favour of new technology.

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Technology secretary says she wants regulator to design plans for online age verification by October – as it happened

Liz Kendall also wants Ofcom to report to parliament every year on how effectively social media firms are keeping under-16s off their platforms

Starmer acknowledges some teenagers will get round these restrictons. But that does not make the rules pointless, he says.

Will it mean that no child ever looks at social media again? No.

But look, this might shock you, but it doesn’t shock parents of teenagers; they get around other laws too.

Some technology companies want us to think that social media is unchangeable, part of an almost natural order.

But we have to resist that kind of learned helplessness. We have agency, we can change it, and we will.

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Zelenskyy thanks UK for intercepting Russian shadow fleet oil tanker after armed forces board vessel – as it happened

Keir Starmer said British armed forces intercepted a Russian shadow fleet vessel in the early hours of Sunday morning

Ukrainian president Volodymyr Zelenskyy has thanked the UK for intercepting a Russian shadow fleet oil tanker in the English Channel, describing it as an “important step”.

“It was Russia’s hubris, fuelled by high oil and gas revenues, that paved the way for this war, and every decision by partners that deprives Russia of money also limits the war itself” he wrote in a post on X, in which he personally thanked the British prime minister, Keir Starmer, and “all Britons”.

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Starmer defends investment on defence as he vows to fight any leadership challenge – UK politics live

The prime minister defended the ‘hard-edged decisions’ he has made to cut funding from other departments to spend more on defence

As armed forces minister, Al Carns was not involved in work on the defence investment plan (Dip). In his resignation letter, he said it was flawed not just because of the amount of funding involved; he also claimed it focused too much on the wrong capability. He said (and I’ve highlighted the key phrases in bold):

The character of conflict is changing faster than our procurement can keep up with. We are still purchasing capability suitable for the last war while our adversaries arm for the next one. Platforms that cost billions can be defeated by systems that cost thousands. Any serious defence investment plan has to start from that reality.

While I had no hand in the defence investment plan, that distance does allow me to say plainly that it is not built for the threat we face.

I want to see a higher percentage for uncrewed systems, AI, data – data is the new gunpowder – and we’ve got to move that forward if we are going to win the next war.

Too many working people in this country feel insecure even when they are doing everything right. They work hard, contribute, pay their taxes and still feel one setback away from trouble. Public confidence in our institutions is weakening and politics increasingly looks performative while everyday life gets harder.

The machinery of government itself has been left to decay. Decisions that should take days, take months. Departments fight each other instead of the problem. Officials and ministers who know the truth are not always rewarded for telling it. We are trying to govern a more dangerous world with processes designed for a calmer one, and the gap is now showing in the things that matter most.

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UK defence funding crisis has been a long time coming

John Healey’s complaint is that Starmer sat on this problem for months before making a derisory offer

John Healey’s resignation as defence secretary on Thursday was a long time brewing, though in the end the denouement was swift. It leaves an already weak Keir Starmer without a defence strategy less than a month before a Nato summit and an unresolved row about spending as Donald Trump threatens to restart the bombing of Iran.

On Monday, No 10 finally told Healey how much more money it was prepared to give the Ministry of Defence to fund major projects as part of the defence investment plan (Dip).

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Russian jet causes ‘dangerous’ near miss after flying close to RAF spy plane

UK calls incident ‘unacceptable’ after Su-27 jet comes within six metres of unarmed RAF plane over Black Sea

A Russian jet flew within six metres of an RAF spy plane flying at 500mph over the Black Sea, one of two mid-air incidents last month described as “dangerous and unacceptable” by the defence secretary, John Healey.

An Su-27 jet conducted six passes in front of an unarmed RAF Rivet Joint flying close to its nose in mid April, risking a collision that could have caused a diplomatic crisis between the two countries.

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UK prepared to deploy RAF Typhoons to keep strait of Hormuz open after Iran war

Proposal at heart of offer made during a 30-country two-day meeting jointly organised by France

Britain is prepared to deploy a squadron of RAF Typhoons based in Qatar to patrol over the strait of Hormuz as part of a multinational mission to keep open the strategic waterway once the Iran war comes to an end.

The UK military also offered to deploy mine-hunting drones and specialist divers to help clear the strait mined by Iran – but no decision has been made on whether HMS Dragon or another warship would also be deployed.

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Starmer implies he didn’t tell Trump he was ‘fed up’ about his impact on rising UK energy bills – as it happened

Prime minister says conversation with US president on Thursday night focused on need for ‘practical plan’ to open strait of Hormuz

Tony Blair, the former Labour prime minister, has joined those saying the government should allow drilling for oil and gas in the Rosebank and Jackdaw fields in the North Sea.

Both applications were approved by the last Conservative government, but then overturned by a court ruling. Ed Miliband, the energy secretary, has to make a decision about the revised applications operating in a quasi-judicial capacity, which means he has to follow due process and can’t take the decision purely on political ground.

The current debate [on energy policy] is deadlocked between two incomplete responses. The government argues the answer is to accelerate Clean Power 2030, focusing on decarbonising the electricity system as quickly as possible. The opposition argues that the answer is to expand domestic oil and gas production. Both positions contain elements of truth, but neither addresses the core strategic problem: outside the power sector the UK economy remains overwhelmingly dependent on fossil fuels, and electricity is still too expensive to support mass electrification.

The UK is caught in a self-reinforcing high-cost, low-electrification trap. High electricity costs suppress demand, slowing the uptake of electric vehicles, heat pumps and industrial electrification. Weak demand growth, in turn, means that the fixed costs of the system – from networks to long-term contracts – are spread across a smaller base, keeping prices high. The result is a system that is too expensive to electrify and therefore remains dependent on fossil fuels and exposed to global shocks …

The first of these vital measures will ban anyone from possessing or publishing harmful pornography that shows incest between family members, and sex between step or foster relations where one person is pretending to be under 18.

A further amendment will criminalise the publication and possession of pornography where an adult is roleplaying as a child.

This government is uncompromising in our mission to protect women and girls online, and we have taken action to stop tech firms from publishing this abusive content.

In February, we told platforms that they must remove reported non-consensual intimate images within 48 hours.

I greatly welcome the government’s plans to fully address harmful pornographic content such as incest, step-incest and the mimicking of child sexual abuse. This content that is freely and widely available online is deeply harmful, normalising child sexual abuse and abusive relationships within families …

Today the government has answered our calls for change, and I am delighted that once again the UK is leading the way on regulating this high harm industry.

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Israel’s attacks on Lebanon should not be happening, says Keir Starmer

In article for Guardian, PM also calls for Iran conflict to become watershed moment for future UK security

Israel’s continued attacks on Lebanon “shouldn’t be happening”, Keir Starmer has said on his visit to the Middle East, as he called for the Iran conflict to become a watershed moment for the future security of the UK.

In an article for the Guardian, the prime minister said the UK’s response to the crisis must involve a fundamental reset in terms of making the country more resilient, including by boosting defence and having closer links to Europe.

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UK navy foiled Russian submarines surveying undersea cables, defence minister says

John Healey says warship and aircraft forced Russia to abandon activity in North Sea in month-long operation

A British warship and aircraft tracked and monitored Russian submarines trying to survey vital undersea infrastructure in the North Atlantic, ensuring they fled the area, the defence secretary, John Healey, has said.

Speaking at a Downing Street press conference, Healey said the UK operation lasted more than a month and saw a Royal Navy warship and P8 marine patrol aircraft “track and deter any malign activity” by three Russian submarines.

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UK sends more troops to Gulf amid Trump jibes over British military role

John Healey says extra deployment is defensive response to ‘expanding threat’ from Iran

The UK is sending more military support to the Gulf, taking the total deployment to 1,000 troops, amid more jibes from Donald Trump about Britain’s refusal to get involved in offensive operations against Iran.

Speaking from Qatar where he met UK troops, the defence secretary, John Healey, said the extra deployment was in response to an “expanding threat” from Iran.

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In linking Iran to Russia, Healey could be laying ground for hard choices ahead

Defence secretary connects Middle East conflict to plight of Ukraine, sympathy for which remains relatively high

After a week or so of wearing media coverage about the deterioration of the Anglo-American relationship and the belated decision to deploy Royal Navy destroyer HMS Dragon to Cyprus, it was time to move the conversation on.

On a visit to the UK’s permanent military headquarters in Northwood, north-west London, the defence secretary, John Healey, asked two senior British military officers if there was “any sign of a link between Russia and Iran” in the sprawling conflict that has suddenly engulfed the Middle East.

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Putin’s ‘hidden hand’ lies behind Iran’s drone tactics, UK defence secretary says

Pilots reportedly adopting Russian tactics as statement in name of new Iranian supreme leader vows continued attacks on US bases

Vladimir Putin’s “hidden hand” lies behind Iran’s military methods, the UK defence secretary has said, after a night in which drones struck a base used by western forces in Erbil, northern Iraq.

John Healey was speaking after British officers at the UK’s military headquarters in north-west London told him that drone pilots from Iran and Iranian proxies were increasingly adopting tactics “from the Russians”.

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Foreign Office starts planning evacuation of thousands of Britons in Middle East

About 200,000 nationals thought to be in the region as tensions rise after US-Israeli attacks on Iranian regime

The Foreign Office is drawing up plans to evacuate tens of thousands of British citizens if war in the Middle East escalates, with many travellers currently stranded in Dubai.

Keir Starmer said on Sunday that about 200,000 British people are in the region, on holiday or otherwise travelling across the Gulf. He urged everyone in areas targeted by Iranian strikes to register with the Foreign Office to receive advice, with about 94,000 doing that so far.

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Allegations about Farage’s conduct as schoolboy ‘disturbing’, says No 10 – UK politics live

The Guardian spoke to more than a dozen contemporaries of Farage at Dulwich college, a public school in south London

Healey is now taking questions.

Q: How close are are we to war?

It is Labour that is the party of defence.

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