Collapse of US-Iran talks heightens fears of prolonged energy shock

Oil prices and borrowing costs are expected to rise this week as tankers remain stranded in the Gulf

The failure of the US and Iran to reach a peace deal after marathon negotiations has put markets on alert for further oil and gas price rises.

With large numbers of oil tankers remaining stuck in the Gulf, the US vice-president, JD Vance, blamed the collapse of the talks on Tehran’s refusal to abandon its nuclear weapons programme, while Iranian sources hit back at “excessive” demands from Washington.

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Reeves criticises Trump for starting Iran war with no ‘clear plan’ to get out of it – as it happened

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Starmer says he understands why people are concerned about the cost of living.

He says he has already set out a five-point plan to deal with the crisis.

Just look at what’s happening today. Today your energy bills will be cut because of the action that we took at the budget. And whatever happens in Iran, that price is now fixed until July.

The most effective way we can support the cost of living in Britain is to push for de-escalation in the Middle East, and a reopening of the strait of Hormuz, which is such a vital route for energy.

To that end, we’re exploring each and every diplomatic avenue that is available to us.

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Zack Polanski tells NEU teachers’ union that Greens would abolish ‘toxic’ Ofsted – UK politics live

The Green party leader said Ofsted is a ‘failed institution’ and that teaching should move ‘toward a genuinely collaborative model’

Starmer complained about other parties whipping up division, and he specifically criticised Nick Timothy, the shadow justice secretary, for “complaining about Muslims praying in public”.

Labour, by contrast, values bringing people together, he said.

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Reeves says planning for energy bills support under way but hints wealthiest may not be included – UK politics live

Chancellor says she has the data available to run targeted scheme, unlike the Tory programme used when the Ukraine war started

The live feed from the Lib Dem local elections campaign launch did not last long, and it did not include footage of Ed Davey taking questions from reporters. But this is what the Lib Dems are saying about their five key campaign issues.

-Cut the cost of living: A plan to halve energy bills within a decade, saving households an average of £870 a year

-Fix the NHS and care: Guarantee the right to see a GP within seven days (or 24 hours for urgent cases) and ending 12-hour A&E waits.

-Rescue high streets: Give an emergency cut to VAT for hospitality businesses, to bring prices down and boost struggling high streets.

-Clean up rivers: Ban water companies from dumping raw sewage into local rivers and coastal areas.

-Restore community policing: Ensure visible, effective local policing to reduce crime.

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Labour claims extremist candidate revelations show Reform UK’s launch in Scotland has fallen apart – UK politics live

Some Holyrood candidates have been accused of spreading false rumours about asylum hotels, describing Humza Yousaf as ‘not British’, and backing Tommy Robinson

Severin Carrell is the Guardian’s Scotland editor.

Malcolm Offord, Reform UK’s Scottish leader, has doubled down on his defence of the party’s vetting by dismissing remarks by candidates backing Tommy Robinson or describing Humza Yousaf as an “Islamist moron” (see 10.12am) as “fruity language”.

It has taken a matter of hours for Reform Scotland’s big launch to fall apart and their true colours to show.

If Nigel Farage refuses to act and remove this candidate, Malcolm Offord must step up and show some leadership himself. This incident has confirmed once and for all how poisonous and chaotic Reform is and I have no doubt that Scots will send them packing.

Again, as I say, this was done in a former life before she became a member of Reform. We’ve all said things in the past that may be intemperate… I am saying that we have to grow up on this and not take offence at every moment in time.

I’ve been very clear that we have brought in a whole range of candidates, 80% of whom are not politicians. They’re real people with real lives who said real things in a past life. Okay, this was said before she was a candidate. She wasn’t even a member of the party at that time.

And what we got in the situation is that in all our lives in the past, we’ve made comments that might sometimes be intemperate. But the issue with this modern world we live in is everything is now written down and remembered. I just think we have to be more, more realistic about the fact that real people say real things, and now she’s a candidate, she will be held to a higher standard.

Liberal Democrats urge the government to ensure the NCA or new National Police Service takes over investigations into serious waste crime. We also need an independent review of the entire waste crime system to crack down on organised gangs once and for all. New powers for the Environmental Agency simply won’t cut it.

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Fewer Britons giving to charity, study says, with donations down by £1.4bn

Charities Aid Foundation says giving no longer a ‘deeply embedded cultural norm’ amid rising cost of living

Britain is rapidly losing the charity habit, with public donations to good causes plummeting by more than £1.4bn last year and millions of people saying they can no longer afford – or do not want – to give, according to an analysis.

The Charities Aid Foundation (Caf) said in its annual report that, while the British remained generous at heart, society was witnessing a big transformation in attitudes towards charitable giving. Just half of people gave to charity in 2025, down from 61% a decade earlier.

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Rachel Reeves targets UK’s wealthiest in £26bn tax-raising budget

Chancellor axes two-child benefit cap and cuts energy bills paid for by mansion tax and freezing tax thresholds

Rachel Reeves targeted Britain’s wealthiest households with a £26bn tax-raising budget to fund scrapping the two-child benefit policy and cutting energy bills.

On a chaotic day that involved key details of her budget accidentally being released early by the Office for Budget Responsibility (OBR), the chancellor defended the measures, saying she was “asking everyone to make a contribution to repair the public finances”, but that she wanted the wealthiest to pay the most.

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Reeves to lay groundwork for tax rises in ‘candid’ speech about budget

Chancellor to promise ‘fairness and opportunity’ but will not repeat manifesto pledge on tax, after PM’s hint at breach

Rachel Reeves will lay the groundwork for a tax-raising budget that could break Labour’s election promise on income tax, in a major speech in which she will be “candid” about the tough choices ahead.

The chancellor will give the speech as the markets open on Tuesday, when she will promise to make fair choices at this month’s budget but decline to repeat her manifesto pledge of no rise in income tax, VAT or national insurance.

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Signs of peak inflation open door to earlier Bank of England interest rate cuts

Policymakers under pressure for rethink after price growth in UK remained at 3.8% in September

Has UK inflation peaked? The latest official figures showing price growth in the UK stayed at 3.8% in September seem to suggest so.

The statement cannot be made with absolute certainty yet but many economists reacted to the latest consumer prices index (CPI) data with a message that the only direction for inflation over the rest of the year was down.

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UK inflation unexpectedly remains at 3.8% for third month in a row

Annual September rate confounds forecasts of a rise, as pace of food price growth slows for first time since March

UK inflation was unchanged last month at 3.8%, confounding expectations of a rise, in welcome news for the chancellor, Rachel Reeves, as she plans for her crucial budget next month.

The Office for National Statistics (ONS) said that inflation measured on the consumer prices index remained at the same level in September as in August and July.

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Real living wage to rise by almost 7% in boost for low-paid UK workers

Hourly rate to increase in April by 95p to £14.80 in London and by 85p to £13.45 for the rest of the country

Almost half a million workers are to receive a pay boost after it was announced that the real living wage paid voluntarily by 16,000 UK companies will rise to £13.45 an hour in April.

Distinct from the national living wage, which is a statutory minimum, the real living wage is calculated each year based on the cost of essentials, and is paid by more than half of the companies in the FTSE 100.

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Freddo bar creator would be ‘rolling in his grave’ at its price today, daughter says

Harry Melbourne’s froggy treat that cost 10p in its 1990s heyday sells for about 30p or even up to £1 now

The creator of the Freddo chocolate bar would be rolling in his grave if he could see the prices being charged for a treat that cost 10p back in its 1990s heyday, his daughter has said.

Leonie Wadin said she once waited impatiently for her father, Harry Melbourne, to come home with boxes of Freddos, but has now vowed never to buy another one.

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Rising UK food prices turn cash-strapped shoppers away from high street

BRC says food prices rose by 4% in July from 2024, while CBI blames economic uncertainty for people not spending

Britain’s largest retailers struggled to entice shoppers back to the high street in July as the rising cost of meat and butter drove up food prices, adding to the pressure on household finances.

According to the latest snapshot from the British Retail Consortium (BRC) food prices rose by 4% in July from a year earlier, up from 3.7% in June and above the three-month average of 3.5%.

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‘We’ve made progress’: environment secretary is upbeat despite Labour’s struggles

Steve Reed says changes to living standards are happening and will make a big difference to trust in government

It was probably easier for Steve Reed to feel more cheerful about Labour’s most torrid week in government while sitting on bales of hay in the blazing sunshine about 40 miles from Westminster.

The environment secretary might have sympathised with Rachel Reeves and Liz Kendall – he has experience of bearing the flak for some of the government’s most controversial decisions on family farm taxes – but at Hertfordshire’s Groundswell festival, named the Glastonbury for farms, he may simply have been happy not to be pelted with manure by unhappy farmers.

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‘Not an attractive place to shop’: how Poundland lost its appeal to shoppers

Budget retailer had a pre-tax loss of more than £51m last year and is struggling to lure back customers amid stiff competition from rivals

“It’s not actually that cheap any more. It’s kind of lost its appeal because everything is not a pound.”

Samantha, a shopper outside Poundland’s Luton retail park outlet who is heading off to B&M to find some better deals, sums up the feelings of many of her fellow bargain hunters and a central problem facing the new owner of the budget retailer.

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Sweet dreams: dessert parlours help to revive UK’s high streets

Market thought to be worth more than £500m as diners seek cheaper alternatives to the pub or a meal out

Dessert cafes and ice-cream parlours are hoping to play a role in a revival of UK high streets and the night-time economy, as people seek an alternative to going to the pub or an expensive meal out.

Their number has soared by almost 700 in the UK in the past decade, according to analysts at Green Street, formerly the Local Data Company, with outlets in places from Aberdeen to Plymouth.

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UK food shops report ‘massive’ rise in pensioner shoplifting

Kingdom Services boss says retailers seeing ‘different sort of shoplifter’ with more theft by people ‘who just can’t afford food’

Food retailers have seen a “massive” increase in pensioner shoplifters over the last year, according to a leading store security firm, amid the rising cost of living.

John Nussbaum, director of service for retail at Kingdom Services Group, has said his staff were seeing a “different sort of shoplifter now” as the cost of living “pushes people to something they’ve never done before”.

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Gen Z and young millennials battling ‘negative wealth’ as debt burden grows

Young people whose debts outweigh their assets are at risk of experiencing blighted earnings, and even poorer health

Gen Z and young millennials are battling a “negative wealth” problem due to growing debt burdens that limit their life chances, according to a new analysis from the Fairness Foundation.

The thinktank says negative wealth, where debts outweigh assets, is linked to lower wages and worse health in later life, and that ministers should reintroduce the Child Trust Fund to give young people a greater stake in society.

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Starmer dismisses claims he’s been ‘played’ by Trump, and says future trade deal could lessen impact of tariffs – UK politics live

Starmer said that a future trade deal with the US might lead to the UK getting some exemptions from the tariffs

Richard Hughes, chair of the Office for Budget Responsibility, is giving evidence to the Treasury committee. There is a live feed here.

Hughes started by telling the committee that he wrote to the chancellor earlier this year to say that, when his five-year term ends later this year, he would like to have a second term in office.

We are of course negotiating an economic deal which will, I hope … mitigate the tariffs.

The US is our closest ally. Our defence, our security, our intelligence are bound up in a way that no two other countries are.

So it’s obviously in our national interest to have a close working relationship with the US, which we’ve had for decades, and I want to ensure we have for decades to come.

We are obviously working with the sectors most impacted at pace on that.

Nobody wants to see a trade war but I have to act in the national interests.

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Major UK investors join push for retail giants to pay workers ‘real living wage’

Axa and Scottish Widows back ShareAction campaign for chains such as Next to pay at least £12.60 an hour

Major investors including Axa and Scottish Widows are backing shareholder resolutions pressing retailers Next, Marks & Spencer and JD Sports to increase pay for thousands of workers.

More than 100 individuals and eight institutional investors, which manage over £1tn in assets, are backing an effort to encourage companies to pay a “real living wage”, which is designed to ensure workers can cover necessary household costs.

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