Monday morning UK news briefing: Treasury considers how to claw back spending

Pensions are set to be targeted to cover Covid spending. Treasury officials are drawing up plans for a tax raid this autumn to help pay for public expenditure during the pandemic.

According to well placed Whitehall sources, three different reforms to the way pension contributions are taxed are being considered amid pressures on the public finances.

Downing Street and the Treasury are locked in debate about how to pay for the public spending spike seen as the Government moved to prop up the economy during lockdown.

Political Editor Ben Riley-Smith says last week's Tory defeat in the safe seat of Chesham and Amersham prompted a debate about whether the Prime Minister should put more focus on traditional Tory principles of fiscal prudence.

Hopes for family holidays to Europe by end of July

Family holidays to Europe will be back on from the end of July under plans to be considered by ministers as early as this week. It comes as official data disclosed government scientists found no evidence of Covid variants in more than 23,000 people tested after arriving from amber list countries. Fully vaccinated adults will be allowed to travel to amber countries with their children without having to quarantine under the plans being drawn up by Department for Transport officials. The move would open up amber destinations, including Spain, Greece, France and Portugal. View a full list of locations that might soon be more accessible.

Meanwhile, Boris Johnson says today that Britain must harness the "miracle" of the Oxford coronavirus vaccine to become a science superpower. Writing for The Telegraph, the Prime Minister says the country is more indebted to scientists after the response to the pandemic than at any other time in the past 100 years. A new Office for Science and Technology Strategy led by Sir Patrick Vallance, the chief scientific adviser, will drive innovation. Read Mr Johnson's article for us.

What a year of Covid fear has done to our brains

Judging potential hazards has always been a part of life, but the pandemic forced us to weigh up things that were once second nature. When Freedom Day does finally come, Covid will not have gone away and it will be up to us to decide what is safe. But after a year of rules, it is no wonder we are confused about what that means. Caroline Williams asks the experts how restrictions have skewed our sense of risk.

At a glance: Other coronavirus headlines

• Lockdown lifting | Roadmap 'cannot be accelerated to July 5'

• Rail | 'Flexi' tickets available from today - are they worth it?

• Vaccines for children | Whitehall leaves scientists 'in the dark'

• 'Hypocritical' | Burnham seeks Scotland travel ban redress

• Property | Where working at home is driving up house prices

Also in the news: Today's other headlines

Meghan's subtle tribute | The Duchess of Sussex has revealed she included references to Princess Diana in her new children's book. The Bench, a book which was inspired by Prince Harry's relationship with the couple's two year old son Archie, includes illustrations of her late mother-in-law's favourite flower, forget-me-nots. The subtle nod to the Princess is one of numerous personal "nuggets tucked within the book".

• 'Sensitivity readers' | Oxford student paper's articles to be checked

• Beef with Botham | Packham hits back over long-haul 'hypocrisy'

• 'Very poor' | Royal Yacht plans 'look like 1950s fishing trawler'

• Babies | The best age to become a parent, according to science

• On your marks | Prince William and children are official race starters

Around the world: Britain watches as world dances

Across the world, people are starting to dance once more. Yet with the end of restrictions postponed to July 19 at best, the mood in Britain feels more subdued. Despite 62pc of the population having had at least one vaccine, the country is falling behind its peers. Our correspondents around the world explain how the UK is stuck in the Covid slow lane. And see our gallery of more of the weekend's best world pictures.

Comment and analysis

• Roger Bootle | Raise rates to stave off an economic nightmare

• Tim Stanley | Hideous new homes have put us off development

• David Freud | The time has finally come for Universal Credit

• Douglas Murray | Biden's free ride; Trump would be denounced

• Reader letters | Why are wedding guests still restricted?

Editor's choice

1. Alan Davies | 'I only realised in adult life how much I suffered at hands of my father'

2. Hosting | Want to be the perfect post-pandemic host? Six ways the rules have changed

3. Midlife Fitness Files | 'I became a personal trainer - to learn you can't out-train a bad diet'

Business and money briefing

Trolley dash | A bidding war for Morrisons is set to erupt after the supermarket rejected a shock £5.5bn bid from a US buyout firm advised by former Tesco boss Sir Terry Leary. Deal insiders said Clayton Dubilier & Rice's proposed takeover of the UK grocer is likely to be gatecrashed.

• Money Makeover | 'I'm 42 – can I retire on half my salary at 65?'

• Fantasy Fund Manager starts | Your chance to win thousands

• Alex | View today's cartoon strip on the world of finance

Sport briefing

England expects | Gareth Southgate has departed from his normal protocol by giving Harry Kane a huge vote of confidence and confirming that the England captain will start against Czech Republic, 48 hours before the final Euro 2020 group game at Wembley tomorrow night. The England manager usually likes to keep his team decisions close to his chest. Read more team news and the latest odds on Tuesday's game.

• Italy 1 Wales 0 | Ten-man side in last-16 despite defeat

• US Open | Jon Rahm claims first major in stunning fashion

• F1 analysis | Mercedes' stranglehold is starting to loosen

Tonight's dinner

Courgette risotto with melting mozzarella | Season and stir as you go with this dish by Diana Henry. View the recipe and try our Cookbook newsletter.

And finally... for this morning's downtime

Letters of support | After Brian Greenley told his friend Alison Hitchcock he had cancer, she offered to write to him - and it changed both their lives. They tell how they set up From Me To You, a charity that encourages people to write to cancer patients.