Bank of England interest rate cut joy for mortgage holders as Reeves blames mini-Budget for inflation - live

The Bank of England has cut interest rates for the first time since 2020 as inflation continues to remain steady, holding at their two percent target for two consecutive months.

Bank Rate is currently 5.25per cent, a 16-year high where it has been pegged for the last year to fight inflation, but it has now been set at five percent, a drop of 0.25 percentage points.

Governor Andrew Bailey said the move comes after inflation pressures “eased enough that we’ve been able to cut interest rates today”.

The decision will come as joy for homeowners who have been struggling with rising mortgage payments as major banks have confirmed rates could go down as low as three per cent.

Chancellor Rachel Reeves has welcomed the move but warned “millions of families are still facing higher mortgage rates after the mini-budget”.

Key Points

• BoE cuts interest rates in major boost for mortgage holders

• Major banks reduce mortgages after Bank of England interest rate cuts

• Reeves welcomes interest rates cuts but warns families still struggling

• GPs take industrial action over budget dispute

• Braverman: Tories have ‘no chance of winning’ election

Pictured: Yvette Cooper and Keir Starmer meet police leaders

15:40 , Salma Ouaguira

Braverman: Tories have ‘no chance of winning’ election while Reform exists

15:34 , Salma Ouaguira

Suella Braverman has claimed the Tories have “no chance of winning” the next general election as long as Reform UK still exists.

The former home secretary said her party and Nigel Farage’s Reform “cannot co-exist”.

She told GB News: “There is not enough room in British politics for two conservative parties. Reform and the Conservatives cannot co-exist in the way that they are.

“We will have no chance of winning the next general election as long as Reform is a viable alternative.”

But she the Conservative MP for Fareham and Waterlooville was unsure how to fix the situation.

Braverman rules out running in future Tory leadership contests

15:23 , Salma Ouaguira

Suella Braverman has ruled out running to be a Tory leader in the future.

Asked if she had given up on the idea, she told GB News: “I won’t put myself forward again. I am very happy. I have had a go.”

Mrs Braverman added she believed “that will be it for me I think”.

It comes as the rightwing struggled to get the 10 MPs needed to put her on the ballot paper to become the next Conservative leader as Brexiteers look at Robert Jenrick as an alternative candidate.

Allies warned that a “Stop Suella” campaign is running among parliamentarians because of the “uncomfortable truths” she spoke about the state of the party and her enormous support among ordinary members.

Tory MP endorses Mel Stride for party leader

15:15 , Salma Ouaguira

Braverman denies she will defect to Reform unless ‘driven out’ of Tory party

15:09 , Salma Ouaguira

Suella Braverman has said she will not defect to Reform UK unless she is “driven out” of the Conservative Party.

In her first interview since abandoning her bid to replace Rishi Sunak as party leader, the former home secretary warned that the Tories have “no chance of winning the next general election” as long as Nigel Farage’s outfit “is a viable alternative”.

Asked about speculation that she might join Reform UK, Ms Braverman told GB News: “I’m not going to defect to Reform, no.

“I hope I’m not driven out to Reform by my colleagues.”

Describing Tory-to-Reform defector Lee Anderson as a “good friend,” she continued: “We should not be hounding out Conservatives, right-wingers, Eurosceptics, people who want to stand up for our flag and our faith as if they are somehow swivel-eyed loons.

“Lee Anderson should be a Conservative MP.”

Ms Braverman also warned her party against “complacency” over the threat from Reform.

“I am absolutely confident that Reform can do better,” she said.

“Young people are voting more for Reform than they are for the Conservatives.”

“These facts alone should seriously alarm any Conservative leader and all Conservative MPs.

“I’m just concerned that there’s still a level of complacency.”

UK factories ‘more optimistic after election’ as activity jumps to two-year high

15:00 , Salma Ouaguira

Britain’s manufacturing sector saw activity jump to a two-year high in July amid surging optimism after Labour’s landslide victory, a report has shown.

The closely-watched S&P Global UK manufacturing PMI survey recorded a reading of 52.1 for July, up from 50.9 in June and above the 51.8 indicated in last month’s “flash” estimate.

The sector has now remained above the 50 mark – which indicates growth – for the past three months.

The report said growth in production lifted to its highest level since February 2022, while new orders likewise strengthened.

It also revealed workforces in factories rose for the first time in nearly two years, with the survey showing a boost to confidence levels since the election result in early July.

Rob Dobson, director at S&P Global Market Intelligence, said: “Hopes for an economic revival and reduced political uncertainty took confidence to one of its highest levels for two-and-a-half years, with 60% of companies surveyed now forecasting output will rise over the coming 12 months.”

But he added: “Inflationary pressures remain a blot on the copybook, however, with input costs rising to the greatest extent in one-and-a-half years.

“The ongoing Red Sea crisis and associated freight issues are having a severe impact on prices, which are then sustaining a focus on cost-caution and cash flow protection at manufacturers.”

Scrapping the social care cap will come back and haunt this governmentScrapping the social care cap will come back and haunt this government

14:50 , Salma Ouaguira

During the election, Labour committed to overhauling the ‘Cinderella service’ of adult social care – yet, in one of her first acts as chancellor, Rachel Reeves has removed the ceiling that limits an individual’s costs to £86,000. Will the public settle for another sticking-plaster solution, asks Andrew Grice:

Scrapping the social care cap will come back and haunt this government

Tories: ‘No surprise’ GPs on strike after pay rise for junior doctors

14:40 , Salma Ouaguira

Shadow health secretary Victoria Atkins has said it was “no surprise” that GPs have voted for industrial action after Labour granted junior doctors a big pay rise.

The Tory MP said: “After appeasing junior doctors with a budget-busting 22 per cent pay rise, it comes as no surprise that other healthcare workers are feeling shortchanged by the new Labour Government.

“Instead of caving in to unaffordable union demands, the Labour Government must resolve this dispute or it is patients and the public who will pay the price with more strikes and higher taxes.”

It comes as family doctors announced industrial action in protest at the previous Conservative government increasing their budget by only 1.9 per cent this year.

Sarwar: Scotland has opportunity to target winter fuel benefit

14:30 , Salma Ouaguira

The Scottish Government should explore making its version of the winter fuel payment “more targeted”, the leader of Scottish Labour has said.

This week, Chancellor Rachel Reeves announced the benefit would move from being universal to being means-tested, sparking outrage north of the border about a potential £160 million funding gap.

As part of the process of devolving social security, the Scottish Government is due to take control of the benefit this winter.

Ministers have said the universality of the payment – which could be worth as much as £300 for pensioners – cannot be guaranteed.

But Scottish Labour leader Anas Sarwar said the announcement from the Chancellor presents an “opportunity” for the benefit in Scotland.

Speaking to journalists on a visit to a community project in Easterhouse, Glasgow, he said: “This is a new devolved benefit that’s going to come to Scotland this year now that the winter fuel payment is going to be devolved.

“We have an opportunity to do that in a more progressive, fair way and I think the Scottish Government should take that opportunity.

“We’re willing to work with them and representative charities to make sure those that need the payment, those that are going to genuinely be supported by that payment, receive that payment.

“I don’t see the benefit in us giving a payment to those that frankly are millionaires and don’t need the money at a time when people are struggling to make ends meet and our public finances are in a difficult situation.”

Andrew Bailey urges government to remain ‘highly alert’ to inflation signs

14:20 , Salma Ouaguira

Bank of England governor Andrew Bailey has said policymakers will remain “highly alert” to signs that inflation might increase, despite cutting the base rate to 5% on Thursday.

Mr Bailey said the UK has “truly come a long way in returning inflation to target”, but that some indicators like persistent services price inflation remain a risk factor.

He said: “We need to watch this very carefully. The Monetary Policy Committee continues to pay close attention to services inflation as an indicator of persistence in domestic inflationary pressures, along with a range of other economic indicators.”

He added: “The committee continues to remain highly alert to the risks of inflation persistence and will decide the appropriate degree of monetary policy restrictiveness at each meeting.”

Labour facing fresh calls to back EU youth mobility scheme

14:10 , Salma Ouaguira

The government has been urged to pursue a youth mobility scheme with the European Union (EU) alongside the “new approach” to legal migration launched by Yvette Cooper.

The home secretary on Tuesday launched a plan to boost the UK workforce’s skills before recruiting abroad in a bid to bring overall numbers down.

Labour facing fresh calls to back EU youth mobility scheme

Housing market ‘set for confidence boost following base rate cut’

14:00 , Salma Ouaguira

An autumn housing market boost is on the cards following the cut in the Bank of England’s base rate, property experts have suggested.

Homeowners on tracker mortgage rates will see their annual payments cut by more than £340 on average as a result of the base rate reduction from 5.25% to 5%.

The turning point for the base rate, after a string of previous hikes, provides a ray of light to homeowners on deals which directly track the base rate.

It will also bring some relief to those sitting on the 700,000 fixed-rate mortgage deals which are due to end in the second half of this year – equating to around 4,000 homeowners per day potentially having a rate shock when their lower-rate deal ends.

One expert described the cut as “a clear signal to the market that the Bank feels it has turned a corner in the battle against inflation”, while another said it gives “important reassurance” to borrowers who have had to contend with a volatile mortgage market in recent years.

According to industry body UK Finance, based on outstanding mortgage balances, the average tracker mortgage borrower will see their monthly payments cut by £28.44.

Someone on a standard variable rate (SVR) mortgage meanwhile will see their monthly payments fall by £14.50, assuming their lender passes on the rate cut in full. SVRs are set by lenders individually.

Reeves will have to U-turn on winter fuel savings, warns ex-minister

13:56 , Salma Ouaguira

Chancellor Rachel Reeves has been warned that her plans to means-test winter fuel payments will not be possible because of ageing computer systems.

Former pensions minister Guy Opperman, who ran benefits for pensioners between 2017 and 2022 and looked at means-testing the winter allowance, has issued a warning that the system in the Department for Work and Pensions (DWP) cannot cope with the changes Ms Reeves has proposed.

The chancellor announced that she would save almost £3bn by ending winter fuel payments – worth between £100 and £300 – for those not on pension credit.

The decision means around 10 million out of the 11.5 million pensioners who received the payment will no longer get it.

Our political editor David Maddox has the full story:

Reeves will be forced to U-turn on winter fuel means tests, warns former minister

Rishi Sunak slams government’s public sector pay increases

13:36 , Salma Ouaguira

Former prime minister Rishi Sunak claimed that the new government’s public sector pay increases may leave the Bank with less room to cut rates further by stoking inflation.

In a post on X, formerly Twitter, he said: “The Bank of England has cut interest rates for the first time since 2020.

“That’s good news for homeowners and shows Labour inherited a strong economy.

“My concern now is that Labour’s inflation-busting public sector pay rises have put further cuts at risk.”

Reeves: Interest rate cut is a Bank of England decision

13:36 , Salma Ouaguira

The interest rate cut was a decision made by the Bank of England, Rachel Reeves said when it was put to her the Tories’ decisions in office may have led to it.

The chancellor told broadcasters: “Decisions around interest rates are of course decisions for the independent Bank of England, but I have been left with a £22 billion black hole in the public finances.

“I am determined to close that black hole so that we can fix the foundations of our economy.

“That will require tough decisions, but that is what we were elected to do.”

Major banks reduce mortgages after Bank of England interest rate cuts

13:20 , Salma Ouaguira

High street banks including Halifax, NatWest and Santander have slashed their mortgage rates following the BoE decision.

Governor Andrew Bailey confirmed the interest rates have now been reduced to five per cent for the first time in four years.

The move has been welcomed by mortgage holders but those on a fixed rate are excluded from the cut.

Experts claimed borrowing rates could fall to as low as 3.5 percent by end of the year.

BoE insists public sector pay rises will have no impact on inflation

13:11 , Salma Ouaguira

Andrew Bailey has said the government’s 5.5 per cent public sector pay deal will have little impact on inflation.

Shadow chancellor Jeremy Hunt previously said the above-inflation public sector pay settlements will make further rate cuts harder.

But after holding talks with Treasury representatives at a MPC meeting, the Bank of England governor said the they will only have an impact of less than 0.1 per cent.

Mr Bailey added: “The proverbial back-of-the-envelope suggests an increment in the inflation space that is very small. I mean, you’re in quite small second decimal place numbers.”

Economists criticise Bank’s ‘late decision’ to cut interest rates

13:04 , Salma Ouaguira

Senior economists have criticised the Bank of England decision to cut interest rates.

Experts at the Institute for Public Policy Research (IPPR) said the Bank waited “too long” to do so.

IPPR senior economist Carsten Jung said: “The Bank has been holding back the UK’s economic recovery by underappreciating the long-term effect of high interest rates.

“The UK is still 6 per cent below its pre pandemic growth path, behind the United States and the euro zone, and the Bank today confirmed that it expects growth to remain weak.

“With inflation expectations back at pre-pandemic levels, and the labour market cooling, now is the time for the Bank to signal clearly that it will continue the lowering interest rates in the coming months.”

Is the door open for future rate cuts?

12:58 , Salma Ouaguira

Bank of England governor Andrew Bailey has been asked whether there could be more rate cuts in the future.

During the press conference, a journalist asked: “Is the door open for future rate cuts, or does today’s move mean the Bank of England is ‘one and done’?”

Mr Bailey cautioned the committee is still on “high alert” to the risks of inflation despite the decision to reduce rates to five per cent.

Refusing to give a firm answer he said: “We will go from meeting from meeting, as we always do. It’s this judgement about resilience.”

Streeting promises to ‘work with GPs’ to rebuild NHS amid strikes

12:54 , Salma Ouaguira

Wes Streeting has vowed to “work with GPs to rebuild the NHS together” following the announcement that family doctors will strike.

The health secretary tweeted:

Bailey: We have truly come a long way

12:49 , Salma Ouaguira

Andrew Bailey has declared “we have truly come a long way” to hit inflation targets.

Talking to the press, he showed a chart showing how inflation has fallen from a 11 per cent peak in 2022 to two per cent in June.

But the government warned inflation is expected to rise later this year to around 2.75 per cent before going back to the two per cent target again.

Pictured: Healey and Lammy meet Lebanese prime minister in Beirut amid conflict

12:46 , Salma Ouaguira

Unions: ‘Working people paid the price for Tories’ economic failures'

12:44 , Salma Ouaguira

TUC has claimed working people paid the price for the “Tories’ economic failures”.

In response to the BoE announcement, the general secretary Paul Nowak said: “This rate cut will give relief to millions of families and businesses – and needs to be the first of many.

“Working people didn’t cause the huge spike in inflation. But they have paid the price for the Conservatives’ economic failures with sky-high bills and mortgage payments.

“Labour’s plans to invest in industry and deliver a new deal for workers can help create a new period of economic stability, with prices kept under control and living standards recovering.”

Bailey: Economy has been stronger in recent months

12:39 , Salma Ouaguira

Bank of England governor Andrew Bailey is holding a press conference in response to the announcement interest rates are now down to five per cent.

Mr Bailey said inflation pressures have eased and remained on the two per cent target for two months in a row.

He added the “UK economy has been stronger in recent months”. But he warned: “We need to make sure that inflation stays low. We need to put the period of high inflation firmly behind us.”

Hunt chalks up interest rate cut

12:31 , Salma Ouaguira

Jeremy Hunt has claimed the latest interest rate cut is part of the Tories’ legacy.

The Tory MP said Labour inherited a “stronger economy” thanks to the “difficult decisions” he took while in No 11.

The shadow chancellor said:“Today’s cut will be welcome news for millions of homeowners and shows that Labour inherited a stronger economy which was on the right track.

“In government, we took difficult decisions that cut inflation from 11.1 per cent to the Bank’s target of 2.0 per cent, paving the way for lower rates.

“Our concern is that further substantive cuts may now take longer because of inflation-busting public sector pay rises rushed through by the Chancellor ahead of the summer.”

Lib Dems hail ‘light at the end of tunnel’ after interest rates announcement

12:24 , Salma Ouaguira

The Liberal Democrats have said “there is light at the end of the tunnel” after the reduction of interest rates.

Treasury spokesperson, Sarah Olney MP said: “There is finally light at the end of the tunnel for homeowners but sadly for millions the damage has already been done. Families across the country are already paying off sky high mortgage bills.

“The country is still reeling from Liz Truss’ disastrous mini-budget and years of economic failure under the Conservatives.”

She added: “Today must serve as a reminder that governments should never treat Budgets as an economic experiment for wild policies. We need a return to sound economics and stability after years of Conservative chaos and mismanagement.”

Tory MPs were quick out the gates to claim credit for the cut

12:18 , Salma Ouaguira

Tory MPs took just minutes to try to claim credit for the Bank of England’s decision, Archie Mitchell writes.

“Our plan was working,” declared Central Suffolk and North Ipswich MP Patrick Spencer, moments after the announcement was published.

Rachel Reeves will be rebelling at the fortuitous timing of the central bank’s decision, right after Rishi Sunak’s snap general election, with Labour able to bank any bounce felt by consumers.

Unite slams interest rates cut is 'too little, too late’

12:16 , Salma Ouaguira

Unite has branded the Bank of England’s move to cut interest rate from 5.25 per cent to 5 per cent “too little, too late”.

General secretary Sharon Graham said: “This is too little, too late from the Bank of England. Interest rates still stand at historic highs and this small cut will offer little help to workers struggling with the cost-of-living crisis and record housing costs.

“Decisive action from both the Bank of England and government is urgently needed. Including, a clear roadmap for future rate cuts and a programme of serious investment in our public services and industry to get us out of this crisis.”

Reeves welcomes Bank of England interest rates cut

12:11 , Salma Ouaguira

The chancellor has welcomed the Bank of England’s decision to cut interest rates but warned families are still facing soaring mortgages.

Rachel Reeves said: “While today’s cut in interest rates will be welcome news, millions of families are still facing higher mortgage rates after the mini-budget.

“That is why this government is taking the difficult decisions now to fix the foundations of our economy after years of low growth, so we can rebuild Britain and make every part of our country better off.”

Breaking: Bank of England cuts interest rates in major boost for mortgage holders

12:03 , Salma Ouaguira

The Bank of England has decided to cut the base rate for the first time since 2020.

The Bank’s Monetary Policy Committee has announced the country’s main interest rate is down to 5 per cent from 5.25 per cent in August 2023.

It comes after new economic data suggested the UK’s cost-of-living crisis has eased in recent months thanks to inflation coming off the boil.

Consumer Prices Index (CPI) inflation hit 2% in May and June, which is the central bank’s target level, indicating that price rises have been brought under control.

Economists stressed that other key indicators of inflationary pressure – mainly services inflation and wage rises – have remained a concern for policymakers.

Pound falls as interest rate decision approaches

11:55 , Salma Ouaguira

While we wait the Bank of England to announce the interest rate decision, the pound is still in the red.

The pound is currently down 0.6 per cent or 0.8 of a cent at $1.2775 hitting a four-week low this morning.

Bas Kooijman, CEO and asset manager of DHF Capital, said: “The British Pound is facing pressure as investors await the Bank of England’s (BoE) decision on interest rates, later today.

“Recently, the Pound has weakened, reaching a three-week low and falling against the euro and the dollar. This decline is partly due to expectations that the Bank of England may cut rates. Markets strongly expect the Bank of England to lower rates from 5.25%, which has also contributed to drops in British two-year and five-year bond yields.”

Junior doctors could strike again next year despite pay rise

11:50 , Salma Ouaguira

The head of the junior doctors’ union has suggested there could be fresh strikes next year despite securing a 22 per cent pay deal this week, LBC reports.

Co-chairman of the junior doctors committee of the British Medical Association (BMA) Robert Laurenson claimed the “window of opportunity [for strikes] is about 12 months away” because Labour is in a “honeymoon period”.

The BMA recommended that members should accept Wes Streeting’s offer, which included a pay rise of 4.05 per cent and an increase between 8.8 and 10.3 per cent.

But Mr Laurenson said that the union could consider a “long sustained” strike in the next months.

He said: “Now the last two years the strategy was based on a general election and trying to extract a deal from a desperate chaotic government in decline.

“I think the only way to extract a better deal would be to take long sustained action for probably the next 12 months.”

He added the BMA’s strategy was “based on a general election and trying to extract a deal from a desperate chaotic government in decline.”

The union leader said: “I think the only way to extract a better deal would be to take long sustained action [strikes] for probably the next 12 months.”

Seven Just Stop Oil protesters arrested while trying to disrupt Heathrow Airport

11:46 , Salma Ouaguira

Seven Just Stop Oil protesters have been arrested on suspicion of public order offences after blocking the passenger search area at Heathrow’s Terminal 5.

The protesters, who tried to disrupt access to the departure gates inside the airport at just before 9am on Thursday, were seen holding signs reading: “Oil Kills” and: “Sign the Treaty”.

Both the Metropolitan Police and Heathrow said minimal disruption was caused, and it is understood the demonstrators were removed within 20 minutes.

Passengers continued to access security lanes either side of where the group sat.

Scotland Yard said: “Seven Just Stop Oil protesters have been arrested on suspicion of public order offences after they blocked a passenger search area at Terminal 5, Heathrow.

“Officers swiftly attended and removed the protesters with minimal disruption caused.”

In full: Rachel Reeves confirms taxes will rise in her first budget in October

11:43 , Salma Ouaguira

Taxes will have to rise in October to plug a £22bn hole in the public finances, Rachel Reeves has warned.

Ahead of her first budget, the chancellor refused to rule out hiking capital gains and inheritance tax and pursuing pension reform to fill the gap. And, setting the scene for a brutal financial statement, she said: “I think that we will have to increase taxes in the budget.”

The warning comes after she scrapped a series of infrastructure projects and announced the winter fuel allowance for pensioners would be means-tested in a bid to address the black hole left by the Conservatives.

Our political correspondent Archie Mitchell has the full report:

Rachel Reeves confirms taxes will rise in her first budget in October

House of Commons staff offered X-rays after asbestos rules breached

11:32 , Salma Ouaguira

House of Commons chiefs have offered staff X-rays at St Thomas’ Hospital after an asbestos breach, once thought to have affected more than 100 people.

The health and safety watchdog has found “material breaches” of asbestos and construction regulations after a probe into works at the Speaker’s on-site accommodation.

The Health and Safety Executive (HSE) confirmed “appropriate action” has been taken, and a spokesperson for the legislature promised staff would “continue to learn lessons from this event” and use new contractor competency checks to ensure they have the necessary skills and qualifications to carry out works.

The House of Commons spokesperson said: “We fully accept the findings from the Health and Safety Executive.

“Our absolute priority is the safety of the those who work on and visit the Parliamentary Estate, and we are continuing to support those who have been impacted by the incident in autumn 2021.

“Since then, we have taken a number of actions to minimise the risk of any incidents occurring across the many construction and maintenance projects on the estate, including additional training for operatives, new competency checks and the implementation of an updated escalation process for serious safety incidents on the Estate.

“We have also commissioned an independent asbestos specialist to provide support for teams, who has undertaken a thorough review of our asbestos management arrangements.

“We will continue to learn lessons from this event to ensure our safety processes remain robust.”

Electoral reform and proportional representation: Ask us anything

11:22 , Salma Ouaguira

Political columnist Andrew Grice is here to answer your questions on the alternatives to first-past-the-post and whether there’s enough appetite for reform in Westminster.

If you have a question on electoral reform or proportional representation submit it now, or when I join you live at 12pm on Friday 2 August for the “Ask Me Anything” event.

Register to submit your question in the comments box under this article.

Scroll down or click here to leave your comment.

Breaking: GPs vote in favour to take industrial action

11:03 , Salma Ouaguira

Family doctors from the British Medical Association have voted in favour to take industrial action.

More than 8,500 family doctors in England cast their vote in the ballot with 98.3 per cent of support to strike.

The BMA union said: “This means, from today, the Association will encourage practices to choose from a list of ten actions, and practices can choose to implement as few or as many as they think appropriate.

“​ Actions may include refusing to share patient data unless it’s in the best interests of a patient, referring patients directly to specialist care rather than following longer and more complex NHS processes and switching off NHS software which tries to cut prescribing costs.”

VOICES: Can ‘Houdini’ Reeves escape her terrifying tax-raising predicament?

10:54 , Salma Ouaguira

With Rachel Reeves’s admission of ‘difficult decisions to come’ in her autumn statement, the walls have started to close in on the hitherto superhero chancellor, writes John Rentoul:

Can ‘Houdini’ Reeves escape her terrifying tax-raising predicament?

Market experts positive on growth but warn about inflation pressures

10:44 , Salma Ouaguira

Rob Dobson, director at S&P Global Market Intelligence, said UK manufacturing started the second half of 2024 on an encouragingly solid footing.

He added: “July saw growth of production and new orders strengthen and staffing levels rise for the first time since September 2022.

“Hopes for an economic revival and reduced political uncertainty took confidence to one of its highest levels for two-and-a-half years, with 60% of companies surveyed now forecasting output will rise over the coming 12 months.”

But he said inflationary pressures are still a blot on the copybook, adding: “However, with input costs rising to the greatest extent in one-and-a-half years.

“The ongoing Red Sea crisis and associated freight issues are having a severe impact on prices which are then sustaining a focus on cost-caution and cash flow protection at manufacturers.”

Swinney urged to act to avert strike by refuse staff during Edinburgh festivals

10:42 , Salma Ouaguira

The leader of Edinburgh City Council has called on First Minister John Swinney to intervene and prevent refuse workers from taking strike action during the Scottish capital’s busy summer festival period.

Cammy Day warned the eight-day strike later this month, announced by three local government unions, will be a “tough time” for the council, adding “the impact will not be pleasant over the festival time”.

Having already warned strikes could lead to a “stinking Scottish summer”, the unions Unison, Unite and the GMB all announced waste and recycling staff will walk out over pay from 5am on Wednesday August 14 to 4.59am on Thursday August 22, with in 26 of Scotland’s 32 councils affected.

The action comes after the unions rejected the 3.2% pay rise offered, which local government body Cosla insisted was at the limit of affordability for councils.

A similar strike in 2022 was only resolved when the Scottish Government stepped in and provided additional funding for council workers’ pay.

With the unions insisting the offer is less than that being made to their counterparts in England, Mr Day urged Scottish ministers to “find that little more to avert strike action”.

Reform Lee Anderson ridiculed after attack to migrants backfires

10:30 , Salma Ouaguira

Reform MP Lee Anderson threatened to do “whatever it takes” against a Travelodge he thought was housing migrants.

The MP for Ashton took to Facebook to raise concerns, saying: “I do not want groups of young men who have entered our country illegally roaming our streets. It is not racist or bigoted to say this. I love my constituency and will do whatever it takes to protect it.”

But the attack backfired after he was forced to rectify after realizing the hotel was in fact hosting international NHS nurses.

Responding to his post, one user, Neethu James, said: “I am appalled to see the comments on here. Yes there were two bus loads of people there, who are mostly international nurses and their families working in Kingsmill, and nursing homes in and around Sutton and Mansfield.

“They were on a weekend trip to have a family holiday together. None of them are on benefits, nobody lives in Travelodge and all of them pay taxes like you all do.”

Stride: ’Outdated’ Conservative party needs ‘radical overhaul’

10:18 , Salma Ouaguira

Tory leadership contender Mel Stride has said the Conservative party is “outdated and over centralised”.

The shadow work and pensions minister said he will “revolutionalise” the party campaign machine if he becomes the new leader.

He tweeted: “Our party structure is outdated and over centralised. We need a radical overhaul and fast.

“I will revolutionise CCHQ and our whole campaign operation into a dynamic locally focused campaigning machine to win the upcoming local elections and the General Election.”

UK manufacturing soared to a two-year high in July

10:08 , Salma Ouaguira

The UK’s manufacturing sector has seen activity jump to a two-year high in July as growth in production and new orders strengthened, according to fresh data.

The closely watched S&P Global UK manufacturing PMI survey recorded a reading of 52.1 for July, up from from 50.9 in June and above the 51.8 indicated in last month’s “flash” estimate.

The sector has now remained above the 50 mark for the past three months.

Any reading above 50 means a sector is in growth, while a score below this means it is contracting.

EU reveals its eight demands for a better relationship with Britain

09:58 , Salma Ouaguira

The EU has warned Sir Keir Starmer his attempt to repair relations with the bloc may fail if he does not meet a list of eight demands, it has emerged.

The prime minister has made rebuilding ties with Brussels a top priority since the general election, after years of mistrust between the two sides over Brexit.

And the European Commission has welcomed Sir Keir’s positive approach, but issued a list of tests through which the UK can “demonstrate real government commitment” to its withdrawal agreement with the EU.

Our political correspondent Archie Mitchell has the full story:

EU reveals its eight demands for a better relationship with Britain

Lord Frost: Labour must not ‘fall for’ EU’s negotiating ‘playbook’,

09:47 , Salma Ouaguira

Lord Frost has warned Labour will be in a “weak position from the start” if it “falls for” Brussels’ negotiating “playbook” during negotiations with the EU.

According to the Financial Times, the European Commission is urging the UK to fulfill eight demands to discuss Brexit trade agreements.

But Lord Frost said the government must not accept the demands.

The former Brexit minister tweeted this morning: “If Labour falls for this they will be [in] a weak position right from the start. It’s the standard Commission playbook: ‘we can’t talk about subject B till you have satisfied us on subject A’.

“You then only satisfy them on A by a series of concessions, which the British side is all too willing to make anyway to ‘win goodwill’.

“Of course it’s all too likely Labour don’t mind being in a weak position because they already intend to make concessions.”

What time will the Bank of England's interest rate decision be announced?

09:38 , Salma Ouaguira

The Bank of England is set to make a knife-edge call on interest rates.

The decision is expected to be announced today at 12 noon.

Laith Khalaf, head of investment analysis at AJ Bell, said today’s announcement will be more “symbolic than substantial”.

“A rate cut marks an entry into a new phase of interest rate policy, but at street level the reality is financial conditions won’t change much,” he said.

“Especially for the horde of people who will be rolling off cheap fixed-rate mortgages this year and encountering a new and bracing financial reality.”

Transport minister blocks Ed Miliband for complaining about rail sandwiches

09:28 , Salma Ouaguira

Loose Haigh has blocked one of her cabinet colleagues as he “keeps sending her complaints about the poor catering on the trains and planes he travels on”, GB News reported.

A column in the Daily Telegraph by GB News’ Chris Hope did not name the minister.

But Ms Haigh has now revealed it was energy minister Ed Milliband.

Lee Anderson accuses Labour of planning to ‘hit the poorest’

09:18 , Salma Ouaguira

Reform MP Lee Anderson has claimed Labour is planning to “hit the poorest” with tax rises.

The right-wing politician told GB News: “You know what is coming. They are going to hit the poorest.

“All they have done in their first three weeks of government is attack our pensioners who have put a shift in for the past 50 years. It is an absolute disgrace.”

Reform accuses government of telling a ‘complete pack of lies’ on taxes

09:10 , Salma Ouaguira

Reform UK MP Lee Anderson has accused the Labour government of telling voters a “complete pack of lies” on whether it will increase taxes during the general election.

It comes as Rachel Reeves admitted some taxes will go up but ruled out income tax, National Insurance or VAT.

But the MP for Ashfield has slammed the party over the government’s plan to plug £22billion black hole in public finances.

Mr Anderson told GB News: “It is just a pack of lies. They have had 14 years to get ready for government. They have been banging on for the last 14 years about the austerity, about the taxation system, we have got the highest tax since the Second World War.

“Listen, three weeks after being elected what have they done? They have taken £400 off pensioners for the winter fuel allowance, they have reneged on the £300 saving on people’s energy bills, they have given billions away to foreign countries for this lunacy, this net zero journey.

“They have just told the public a complete pack of lies.”

Make ‘terrible crime’ of fraud a national priority, firms urge government

09:00 , Salma Ouaguira

Some of the UK’s biggest banks and telecoms firms have committed to sharing data to combat fraud while urging the Government to make the “terrible crime” a national priority.

The coalition, led by consumer group Which? and including Barclays, BT, Mobile UK, Nationwide, NatWest, Starling, Three UK, UK Finance, Virgin Media O2 and Vodafone, is calling on ministers to provide the leadership to ensure more businesses can better share intelligence to detect fraud and protect their customers.

It said sharing intelligence is key to getting ahead of organised crime groups that “blight the lives of so many consumers”.

Fraud accounts for around 40% of all crime in England and Wales, and figures from UK Finance revealed that criminals stole more than £1 billion through unauthorised and authorised fraud last year.

The group said it is concerned that individual companies, law enforcement agencies and Government are not working collaboratively enough to share information on how fraudsters can exploit gaps in their systems – which allows scammers to deploy the same tactics consistently across multiple channels.

08:46 , Salma Ouaguira

Culture secretary summons BBC chief over Huw Edwards scandal

08:53 , Salma Ouaguira

Lisa Nandy has called an urgent meeting with BBC boss Tim Davie following the Huw Edwards scandal.

The former TV newsreader pleaded guilty on Wednesday to three charges of making indecent photographs of children, after he was sent 41 illegal images by convicted paedophile Alex Williams, with seven being of the most serious type.

After the court appearance yesterday, the BBC revealed that it was made aware in November that Edwards had been arrested on suspicion of “serious offences”.

The corporation said: “If at any point during the period Mr Edwards was employed by the BBC he had been charged, the BBC had determined it would act immediately to dismiss him.”

You can follow the latest updates on Huw Edwards here:

BBC admits knowing of Huw Edwards arrest in November

Former security minister warns Putin behind Southport disinformation

08:44 , Salma Ouaguira

Former security minister Stephen McPartland has suggested Russia could be behind a social media misinformation campaign which led to appalling scenes in Southport on Tuesday night as protesters rioted.

It comes as sources in the Home Office have told The Independent that an investigation is being carried out on the origin of social media posts which fuelled the angry disturbance in the town. Security sources have pointed out that both China and Russia have large teams and networks working on disinformation campaigns which fuel social division and violence in the UK and other Western democracies.

The riot came after a vigil for the children who were attacked by a 17-year-old in the seaside resort. Three girls who were at a Taylor Swift holiday dance club – Bebe King, six, Elsie Dot Stancombe, seven, and Alice Dasilva Aguiar, nine – lost their lives, while five children and two adults are still in critical condition.

Our political editor David Maddox has the full story:

Former security minister raises concerns Putin behind Southport disinformation

Far right mob clashes with riot police in Downing Street

08:33 , Salma Ouaguira

Far-right demonstrators threw flares towards Downing Street and a statue of Winston Churchill as they clashed with riot police in London.

A few hundred protesters joined the “Enough is Enough” demonstration in Whitehall on Wednesday evening in the wake of the tragic knife attack in which three children were killed and eight others were injured in Southport.

More than 100 people were arrested at the demonstration, where the crowd was heard chanting “Rule Britannia” and “we want our country back”.

Protesters hurl bricks and bottles at police in Southport in ugly scenes.

You can follow the latest on the Southport protests here

Cleverly urges Tories to ‘get our act together'

08:24 , Salma Ouaguira

James Cleverly has urged the Conservative party to get its “act together” and scrutinise Labour’s spending and tax plans.

The Tory leadership candidate said his party needed to “protect the British people from this government”.

Mr Cleverly tweeted: “We said that Labour would raise taxes. Labour said they wouldn’t. We lost the election (our fault). Now Labour say they will raise taxes.

“[The Conservatives] need to get our act together, hold Labour to account and protect the British people from this government.”

‘Moral obligation’ to build more homes, Angela Rayner tells council chiefs

08:20 , Salma Ouaguira

Angela Rayner has told council chiefs they have a “moral obligation to see more homes built”.

The Deputy Prime Minister, who is also the Housing Secretary, wrote to council leaders and metropolitan mayors on Wednesday to set out plans for 1.5 million new homes by 2029, which she described as “radical”.

She warned leaders they may have to tear up draft housing masterplans if they are at an early stage, and said authorities could have to map out new green belt boundaries.

The letters follow an exchange in the Commons with her Conservative shadow Kemi Badenoch, who warned Labour might approve “1.5 million ugly homes” if they press ahead with their plans.

In her letter to council leaders and chief executives, Ms Rayner wrote: “I know that, like every member of Government, you will feel not just a professional responsibility but a moral obligation to see more homes built, to take tough choices necessary to fix the foundations of our housing system.

“And we will only succeed in this shared mission if we work together, because it falls to you and your authorities not only to plan for the houses we need, but also to deliver the affordable and social housing that can provide working families with a route to a secure home.”

Annual house price growth reaches fastest rate since December 2022

08:14 , Salma Ouaguira

Annual house price growth has picked up to the fastest rate since December 2022, according to an index.

UK house prices rose 0.3% month-on-month in July, Nationwide Building Society said.

This resulted in a slight acceleration in the annual rate of house price growth from 1.5% in June, to 2.1% in July – the fastest pace since December 2022.

Across the UK, the average house price in July was £266,334.

Robert Gardner, Nationwide’s chief economist, said: “Prices are still around 2.8% below the all-time highs recorded in the summer of 2022.

“Housing market activity has been holding relatively steady in recent months with the number of mortgages approved for house purchase at around 60,000 per month.

“While this is still (around) 10% below the level prevailing before the pandemic struck, it is still a respectable pace given the higher interest rate environment.”

Badenoch ‘asked’ to use taxpayers’ money to pay for holiday flight

08:12 , Salma Ouaguira

Kemi Badenoch asked to pay for a holiday flight to the US with taxpayers’ money while in government, the Guardian reports.

The shadow business secretary had travelled to Mexico for an official visit to discuss plans to join the CPTPP Indo-Pacific trade bloc.

Her business class fight was paid for by her department but she asked the DBT department office Gareth Davies to pick up the bill for a flight to Dallas she planned to take as a family holiday.

Badenoch’s request was refused as her office believed a taxpayer funded detour was not for official business, a source said.

Bank could cut UK interest rates but decision a ‘close call’, experts say

08:06 , Salma Ouaguira

The Bank of England could be encouraged to cut interest rates for the first time in more than four years amid growing evidence that inflation has been tamed, experts have said.

Expectations on financial markets show about a 65% chance of the Bank’s policymakers opting to reduce rates on Thursday.

The UK’s base rate has been held at 5.25% since August last year, the highest level since 2008.

Some experts think it could be cut to 5%, which would be the first time UK rates have been reduced since the onset of the Covid-19 pandemic in March 2020.

It comes after new economic data suggested the UK’s cost-of-living crisis has eased in recent months thanks to inflation coming off the boil.

Consumer Prices Index (CPI) inflation hit 2% in May and June, which is the central bank’s target level, indicating that price rises have been brought under control.

Economists stressed that other key indicators of inflationary pressure – mainly services inflation and wage rises – have remained a concern for policymakers.

James Smith, developed market economist for ING, said it will be a “close call” but he expects a majority of policymakers to vote in favour of a 0.25 percentage point rate cut on Thursday.

He said services inflation – which looks only at service-related industries such as hospitality and culture – is the “guiding light for Bank of England policy right now”.

Keir Starmer to meet police chiefs after second night of violence hits Britain

07:20 , Salma Ouaguira

The prime minister will host senior police leaders in Downing Street this afternoon in the wake of violent unrest in multiple parts of the country.

He is expected to remind the police that people “exploit” the right to protest in order to “sow hatred” or commit “violent acts” should be met with “the full force of the law”.

Sir Keir Starmer will also commit to working in partnership with police forces across the UK to stop “mindless violence” following scenes of unrest in Southport, London, Hartlepool and elsewhere.

It comes as more than 100 people were arrested after protesters in Whitehall launched beer cans and glass bottles at police and threw flares at the statue of Winston Churchill in Parliament Square.

Demonstrators wearing England flags and waving banners saying “enough is enough” and “stop the boats” had congregated outside Downing Street in the wake of the killing of three young girls in a knife attack in Southport, which social media posts had wrongly claimed was carried out by a Muslim asylum seeker who crossed the Channel in a small boat.

The angry scenes also included loud chants of: “We want our country back” and: “Oh Tommy Robinson”, referring to the right-wing activist. One man wore a shirt with the slogan: “Nigel Farage for Prime Minister, Tommy Robinson for Home Secretary”.

Labour facing fresh calls to back EU youth mobility scheme as party launches ‘new approach’ on migration

Wednesday 31 July 2024 19:30 , Salma Ouaguira

The government has been urged to pursue a youth mobility scheme with the European Union (EU) alongside the “new approach” to legal migration launched by Yvette Cooper.

The home secretary on Tuesday launched a plan to boost the UK workforce’s skills before recruiting abroad in a bid to bring overall numbers down.

In a swipe at the previous Conservative government, Ms Cooper said rising levels of legal migration in recent years reflected a “failure over many years to tackle skills shortages and other problems in the UK labour market”.

Our political correspondent Archie Mitchell has the full story:

Labour facing fresh calls to back EU youth mobility scheme

Rayner’s ‘revolution’ slashes London house building target

Wednesday 31 July 2024 19:00 , Salma Ouaguira

Angela Rayner’s planning “revolution” will see London’s housebuilding target slashed by 20,000 homes, despite a wider push to boost the number of houses being built each year.

The deputy prime minister and housing secretary unveiled a major overhaul of the planning system today, which will see all councils in England given new, mandatory housing targets as part of a plan to deliver 1.5 million more homes in the UK.

She warned that Britain is facing the “most acute housing crisis in living memory”, claiming that the number of new homes is set to drop below 200,000 this year – something Ms Rayner dubbed “unforgivable”.

Our political correspondent Millie Cooke has the full story:

Angela Rayner’s planning ‘revolution’ slashes housebuilding target for London

Expert taskforce launched to plan fresh generation of new towns

Wednesday 31 July 2024 18:30 , Salma Ouaguira

An expert taskforce is being launched to spearhead Labour’s plans for a fresh generation of new towns.

The towns, which the new government says will create communities of at least 10,000 homes each, are billed as a part of the largest housebuilding programme since the post-war period.

Angela Rayner, the deputy prime minister, has asked two experts to lead the independent New Towns Taskforce.

Its chair, Sir Michael Lyons, has played leading roles in regeneration development company the English Cities Fund, as well as in local government, and has sat on the board of housing developers.

Deputy chair Dame Kate Barker is a housing economist who also chairs a major universities pension scheme and was an external member of the Bank of England’s Monetary Policy Committee between 2001 and 2010.

While some of the new communities set to be built through the programme will be separate from existing towns, others will be urban extensions and regeneration schemes of existing places.

Ms Rayner has insisted the taskforce will “work together with local people to help us decide on the right places for these new towns, delivering more homes, jobs and green spaces”.

The communities will be governed by a “New Towns Code”, a set of rules for developers to ensure the towns are well-connected with infrastructure and public services, are well-designed, sustainable and are nice looking places.

The deputy prime minister’s appointment of Sir Michael and Dame Kate comes a day after she announced an overhaul of the planning system to pave the way for 1.5 million new homes over the next five years to tackle England’s acute housing crisis.

Reeves will have to U-turn on winter fuel savings, warns ex-minister

Wednesday 31 July 2024 18:00 , Salma Ouaguira

Chancellor Rachel Reeves has been warned that her plans to means test winter fuel payments will not be possible because of ageing computer systems.

Former pensions minister Guy Opperman, who ran benefits for pensioners between 2017 and 2022 and looked at means testing winter fuel payments, has issued a warning that the system in the Department for Workm and Pensions cannot cope with the changes Ms Reeves has proposed.

The chancellor announced that she would save almost £3 billion by ending winter fuel payments of £200 for over-70s and £800 for over-80s who are not on pension credit.

That means around 10 million out of the 11.5 million pensioners who received the payment will no longer get it and 7 milion of the 8.5 million households which received will no longer be entitled to the payment.

Our political correspondent David Maddox has the full story:

Reeves will be forced to U-turn on winter fuel means tests, warns former minister

VOICES John Rentoul: Sidelined? No – Angela Rayner’s ambitious housing plan may be the making of her

Wednesday 31 July 2024 17:30 , Salma Ouaguira

The new deputy prime minister’s first big outing in the Commons was her chance to prove that she has not been pushed to the political margins by Keir Starmer and Rachel Reeves – and she delivered in spades, says John Rentoul:

Sidelined? No – Angela Rayner’s ambitious housing plan may be the making of her

VOICES: Reeves’ urinal problem is about much more than a toilet...

Wednesday 31 July 2024 17:15 , Salma Ouaguira

Is having a urinal in the chancellor’s bathroom the worst thing in the world? Not really. But it does take the p***, Ryan Coogan writes:

Rachel Reeves’ urinal problem is about much more than a toilet...

Suella Braverman says Labour scrapping European committee is ‘beginning of the end’ for Brexit

Wednesday 31 July 2024 17:00 , Salma Ouaguira

Suella Braverman has dubbed Labour’s decision to scrap the European Scrutiny Committee the “beginning of the end” of Brexit.

Commons leader Lucy Powell on Tuesday announced plans to abolish the select committee, which was established in 1973 to scrutinise the government on EU affairs. This came as part of a wider reform of some of the MP select committees.

Select committees are small groups of MPs or members of the House of Lords that are set up to investigate a specific issue or policy in detail.

The former home secretary hit out at the decision on social media, saying it is “anti-democratic, lacking transparency and a disservice to the millions of British people who voted to deliver Brexit in 2016 and 2019.”

Ms Braverman added: “This is the beginning of the end of Brexit.”Our political correspondent Millie Cooke has the full story:

Braverman says Labour scrapping European committee is ‘beginning of end’ for Brexit

Renewable energy budget boosted to £1.5bn as record funding allocated

Wednesday 31 July 2024 16:40 , Salma Ouaguira

The UK’s renewable energy budget has been increased to a record £1.5 billion, Ed Miliband announced on Wednesday.

Of that, £1.1 billion will be allocated for offshore wind, which the government described as “the backbone of the UK’s clean energy mission”.

Our political correspondent Millie Cooke has the full story:

Renewable energy budget boosted to £1.5bn as record funding allocated for clean power

Former Tory chancellor claims UK needs foreign builders to meet 1.5m housing target

Wednesday 31 July 2024 16:20 , Salma Ouaguira

Lord Hammond has warned Labour’s plan to build 1.5million more houses will not be materialised unless the government allows more builders to come to the UK.

The Tory former chancellor said there is “social pressure for new housing” as well as an “urgent economic need to regenerate the housebuilding sector”.

He told Sky News: “But I think it is not just about planning reform. You can’t build houses without builders and if the government thinks relaxing the planning rules while tightening the migration rules is going to get houses built I think they are going to have another thing coming.”

In the ‘battle of the budgets’, who’s being economical with the truth?

Wednesday 31 July 2024 16:00 , Salma Ouaguira

Amid a furious war of words between Rachel Reeves and Jeremy Hunt over the £22bn black hole in Britain’s finances, a clear winner has emerged, says Sean O’Grady:

In this ‘clash of the chancellors’, who’s being economical with the truth?

Badenoch dismisses bullying claims as ‘smears’ amid Tory leadership bid

Wednesday 31 July 2024 15:50 , Salma Ouaguira

Kemi Badenoch has dismissed accusations that she bullied civil service staff while serving as business secretary as “smears”.

The Conservative MP, now shadow communities secretary, is alleged to have created an intimidating atmosphere at the Department of Business and Trade in a report by the Guardian newspaper.

“Let’s be clear: these allegations are smears from former staff who I sacked after they were accused of bullying behaviour, lying about other colleagues to cover up their own failures and general gross incompetence,” Ms Badenoch wrote on X, formerly Twitter.

“Intolerable behaviour I would not stand for,” she added.

The Tory former minister, among those running to be the party’s next leader, also claimed the Department of Business and Trade had confirmed there were no complaints and no investigations against her.

She said the accusations would not “stop me or my campaign” and claimed her bid to be the next Conservative leader following the party’s general election rout had “spooked the lefties and now they’re coming for the one person they know can beat Keir Starmer”.

Ms Badenoch, the MP for North West Essex, added: “The renewal of my party and the country is too important to let the Guardian, acting for the Labour Party, disrupt.”

A spokesman for Ms Badenoch added that she has “high standards and expectations, and she has cultivated high-performing civil service teams who enjoy working with her”.

Atkins warns Labour sends ‘dangerous message’ to striking doctors

Wednesday 31 July 2024 15:46 , Salma Ouaguira

Victoria Atkins has slammed the Labour government for settling the pay rise dispute with junior doctors.

The shadow health secretary claimed Wes Streeting’s decision to grant striking NHS staff a 22 per cent pay hike is a “dangerous message” that “strike action will work again in the future”.

Posting on X, she said: “Labour has caved into union demands with a budget-busting pay increase. They have sent the dangerous message that ‘strike action will work again in the future’.

“Labour must stand up to their union paymasters or it is the public who will pay with more strikes and higher taxes.”

It comes as the head of the British Medical Association Robert Laurenson suggested there could be fresh strikes next year despite securing the deal.

Angela Rayner plays down Labour rebellion against housing plan

Wednesday 31 July 2024 15:40 , Salma Ouaguira

The deputy prime minister has played down a Labour backbench rebellion against the government’s housebuilding plan.

The housing secretary announced a radical reform to housing plans to lay out the foundations for 1.5 million new homes over the next five years. The minister also set out an annual target of 370,000 homes for local authorities.

But she has dismissed suggestions that she could face MPs opposing the mandatory housebuilding targets on councils if found unpopular in local areas.

Asked by reporters on Tuesday whether she was “gearing up for a fight” with Labour MPs and councils over the new plans, she replied: “Well, Labour councils and Labour MPs know that we’ve got a housing crisis and they’ve been very supportive of our manifesto pledge, which was 1.5 million homes, and knowing full well that that meant we had to really drive that.

“What we need is all areas [is] to recognise the crisis we have and then do something about it, and we’re going to help them do that by driving through these changes so that we get the houses we desperately need.”

Pressed on the issue again, she added: “I think the biggest challenge when I’ve spoken to communities is that often these houses are not for them.”

Lammy hails visit to Qatar ‘absolutely vital'

Wednesday 31 July 2024 15:35 , Salma Ouaguira

Councils will be forced to release green belt land for building

Wednesday 31 July 2024 15:30 , Salma Ouaguira

Housing minister Matthew Pennycook has confirmed local authorities may be forced to release green belt land to make space for new housing.

Mr Pennycook told Sky News: “If local authorities can’t meet their targets through previously developed brownfield land in the first instance or in co-operation with neighbouring boroughs, they should look to then release low quality greybelt land within the greenbelt. Lots of the package yesterday was focused on the targeted release of that greybelt land.

“But in certain circumstances, certain local authorities may, if they can’t through brownfield or in co-operation with neighbours or through greybelt release, need to release some elements of the greenbelt – that happens already.

“Just to be really clear, we’ve not inherited a situation where the previous government didn’t release any greenbelt land at all. They were releasing it in quantity but in a haphazard, unplanned way, and often in a way that didn’t meet local housing needs.

“So what we’re saying is there’s a smarter way to release the right bits of the greenbelt – greybelt low quality land primarily – and to ensure through our golden rules that when it is released, we get development that meets local housing needs.”

Keir Starmer calls Brazil, Nigeria and Cyprus leaders

Wednesday 31 July 2024 15:27 , Salma Ouaguira

The prime minister has called leaders of Brazil, Nigeria and Cyprus this afternoon.

Downing Street confirmed Sir Keir spoke with Brazilian president Lula da Silva to discuss “the close areas of collaboration between the UK and Brazil, including on climate and nature”.

He also talked to Nigerian president Bola Tinubu. No 10 said the PM “reflected on the important relationship between the UK and Nigeria, grounded in cooperation on trade and security as Commonwealth partners, with long-standing ties between our people”.

During his call with Cyprus’ president Nikos Christodoulides both leaders agreed to “deepen the invaluable relationship that the UK and Cyprus share, particularly on issues including regional security and migration”.

Taylor Wimpey forecasts housebuilding surge in second half of year

Wednesday 31 July 2024 15:20 , Salma Ouaguira

Taylor Wimpey is expecting to build up to 10,000 homes this year, at the top end of previous estimates.

The developer upgraded its annual building forecast on Wednesday, saying that it expects a bounce-back in the second half of 2024, following a slow first half.

Taylor Wimpey’s operating profit fell 22.6% to £182.3 million during the six months to June 30, while sales fell 7% and home completions dropped 7.7% to 4,728.

It said the slow period was caused by a delay in the Bank of England cutting the UK’s base interest rate which meant mortgages were more expensive.

The prospect of a likely rate, cut either this week or in September, means it will meet the “upper end” of previously announced completion guidance of 9,500 to 10,000 homes.

The number would still be lower than the 10,400 homes completed in 2023, but sounded a note of optimism amid a persistent downturn for housebuilders of late.

Experts have said the Bank’s next decision on rates is on a knife-edge ahead of a meeting on Thursday August 1.

The UK’s base rate has been held at 5.25% since August last year as part of the central bank’s task to put a lid on unruly inflation.

Taylor Wimpey also said it expects changes to the planning system by Labour to give housebuilders a boost.

Farage not voting for ‘cruel’ plan to scrap winter fuel payments

Wednesday 31 July 2024 15:10 , Salma Ouaguira

Nigel Farage has said he will not back Rachel Reeves’ plan to scrap winter fuel payments for pensioners labelling the Labour decision “cruel and cynical”.

The MP for Clacton told GB News: “I have to say I think it’s rather a cruel thing to do, and I certainly won’t be voting for it as and when I get the opportunity.

“There were times in the past where maybe the argument was that it wasn’t necessary and it had been given as a bribe. But it’s almost like Labour are saying, ‘well, we don’t care about the pensioners, because they’re not going to vote for us anyway’.

“That money that could have gone to pensioners has gone for massive public sector pay rises, including over 22 per cent for junior doctors. This is a very cynical thing she did.”

Foreign Office undertaking ‘concerted effort’ to reduce Israel-Hezbollah tensions

Wednesday 31 July 2024 15:00 , Salma Ouaguira

Housing minister Matthew Pennycook said cabinet colleagues at the Foreign Office are undertaking a “concerted effort” to reduce tensions after Israel targeted a Hezbollah commander in a strike on a Beirut suburb.

Mr Pennycook told Sky News: “I know our Foreign Office ministers are engaged in a concerted effort to do what the UK can do to reduce tensions in the region. You’re right that they are at a very high level.

“We’ve advised British nationals in Lebanon to leave now on commercial flights and for British nationals not to travel to the region. It’s extremely tense.

“All the effort has to be on de-escalating the situation and getting both parties, the Israelis and the Lebanese, to engage with that US-led process on the diplomatic front and reduce tensions.”

Liz Truss minister urged to apologise for ‘next-level' £22bn overspend black hole

Wednesday 31 July 2024 14:56 , Salma Ouaguira

Labour MP Joe Powell has called a Treasury minister of Liz Truss’ cabinet to apologise for leaving a £22billion public spending shortfall behind.

The MP for Kensington and Bayswater has written a letter to his predecessor Felicity Buchan to “finally apologise” for the “disastrous mini-budget”.

In a tweet, he said: “We knew the public finances under the Tories were a mess, but the £22bn overspend black hole is another level. I’ve written to the former Kensington MP - a Liz Truss Treasury minister - to ask for an apology.

“And I’ve supported measures in parliament so it never happens again.”

UK delays ban on some arms sales to Israel amid conflict escalation in Lebanon

Wednesday 31 July 2024 14:50 , Salma Ouaguira

As Israel launches airstrikes on Lebanon to target Hezbollah, the UK has delayed its decision to ban some arms sales to Israel after it faces legal challenges to define arms exports used for offensive purposes, the Guardian reports.

A final decision will now be postponed for several weeks after 12 children were killed in a rocket attack in the Israel-occupied Golan Heights. In response, foreign secretary David Lammy called for an immediate deescalation and advised against all travel to Lebanon.

Speaking in parliament on Tuesday, he added: “We support Israel’s right to defend itself in line with international humanitarian law. They are in a tough neighbourhood threatened by those that want to annihilate it.”

It comes as Israel’s war on Palestine took a major turn after Hamas’ political chief Ismail Haniyeh was killed by Israel in Teheran, Iran.

Home Secretary outlines ‘new approach’ to legal migration and skills shortages

Wednesday 31 July 2024 14:50 , Salma Ouaguira

A “new approach” to legal migration aimed at boosting the UK workforce’s skills before recruiting abroad will be taken by the incoming government, Yvette Cooper has said.

In a swipe at the previous Conservative government, the Home Secretary said rising levels of legal migration in recent years reflected a “failure over many years to tackle skills shortages and other problems in the UK labour market”.

In a ministerial statement published as MPs left Westminster for the summer, she pointed to a rise in non-EU long-term migration from 277,000 in the year to December 2022 to 423,000 in the year to December 2023.

The number of work visas in the 12 months to March 2024 was, meanwhile, 605,264, or “over three times that of 2019”, she said.

“That reflects a failure over many years to tackle skills shortages and other problems in the UK labour market, meaning too many sectors have remained reliant on international recruitment, instead of being able to source the skills they need here at home,” Ms Cooper said.

Yvette Cooper added: “This is why we are setting out a different approach – one that links migration policy and visa controls to skills and labour market policies – so immigration is not used as an alternative to training or tackling workforce problems here at home.

“This approach will be important to enabling delivery of the government’s broader agenda.”

Under Labour, the Migration Advisory Council – which provides advice to the government on where skills shortages can be filled by migration – will work alongside Skills England and other bodies as part of a new “coherent approach to skills, migration and labour market policy”.

The agencies will also work alongside the devolved governments in Scotland, Northern Ireland and Wales towards the same end.

Government ‘working closely’ with Universal to build UK theme park

Wednesday 31 July 2024 14:49 , Salma Ouaguira

A NBCUniversal’s proposed theme park could be built in Bedfordshire after culture secretary confirmed the project was still going ahead.

Mohammad Yasin, the MP for the area, wrote to new Lisa Nandy to confirm whether Europe’s largest theme park was still going ahead.

In response, Ms Nandy said: “The proposed investment by NBCUniversal would be a significant boost to both tourism and creative industries and the company’s choice of the UK for its first European park is both a testament to the strength of these sectors and a demonstration that the UK is open for business.”

She added: “My officials are working closely with NBCUniversal to assess the local and national impacts and facilitate the deliverability of this project.

“Both I and the minister responsible for tourism and the creative Industries, Sir Chris Bryant, look forward to meeting representatives from NBCUniversal shortly.”

Universal Destinations & Experiences bought the piece of land in Bedford to build a 500-room hotel that could see millions of people coming every year.

Reeves faces Labour backbench rebellion over winter deaths with fuel payment cuts

Wednesday 31 July 2024 14:35 , Salma Ouaguira

The chancellor has been tackled by their own side over how many more elderly people will die of cold as a result of stripping 10 million pensioners of their winter fuel payments.

In response to the red-on-red criticism in Parliament, the government frontbench said it understood the “disappointment”, but insisted it was the right, if tough choice, given the state of the public finances inherited from the Tories.

The new administration was also accused of “picking” on pensioners with the move, which it was claimed would wipe out the benefits of the triple lock, which guarantees state payouts rise each year in line with inflation, earnings or by 2.5% – whichever is higher.

Challenging the government, Labour peer Lord Sikka argued the move was “taking away” £300 from pensioners by “a measure that was not in our manifesto”.

He told the upper chamber: “I have received already many messages where pensioners are very, very concerned about this.

“The government could have introduced a taper to lessen the pain to help many pensioners. Would the minister give a commitment that he would have another look at that?”

He also pointed out a document produced by the Treasury “has lots of financial numbers but there is no mention of any human whatsoever”.

Lord Sikka said: “Last year, 5,000 pensioners died because of cold and were unable to afford heating. Has the minister made any estimates of how many more will die because £300 will be taken away from them?”

Three unions confirm council waste staff in Scotland to strike in August

Wednesday 31 July 2024 14:30 , Salma Ouaguira

Co-ordinated strike action by council workers will prove “disruptive”, union leaders in Scotland have warned, ahead of waste and recycling staff taking part in an eight-day long protest in August.

The three unions representing local government employees, Unison, Unite and the GMB, have all now confirmed their members are to walk out for more than a week – with Edinburgh City Council staff set to strike during the Scottish capital’s busy summer festival period.

Scotland’s largest city, Glasgow, will also be affected by the action, which is due to start at 5am on Wednesday August 14 and last until 4.59am on Thursday August 22.

Unison, the largest local government union, confirmed staff in 13 council areas will join the protest, while the GMB and Unite trade unions plan strikes in 18 areas.

As a result of the action the GMB warned bins will not be emptied across Scotland “from the smallest villages to the biggest cities”.

While union leaders insist strike action is not yet inevitable, they warned council leaders and ministers a “significant shift” in the pay offer is needed.

It comes amid a dispute over council workers’ pay, with all three unions having previously rejected the 3.2% pay rise offered by local government body Cosla – which insists it has “very limited options available”.

Rayner: Tories’ housing target for London ‘nonsense’

Wednesday 31 July 2024 14:20 , Salma Ouaguira

Angela Rayner has said the London housing target set up by the previous government wa “nonsense”.

Under the Conservatives, the capital had an annual target of 100,000 but the housing minister has now set a target of 80,000.

She told the BBC: “First of all, the target that was set for London wasn’t based on any particular formula. It was a nonsense formula that they used.

“The target that I have insisted on under the new method is 80,000. London didn’t get near that last year so I will be pushing the Mayor of London and I have already met with him. We will expect more.”

Sketch: Reeves didn’t just point the finger at the Tories – she crucified them

Wednesday 31 July 2024 14:10 , Salma Ouaguira

The chancellor was relentless: a £22bn black hole of unfunded promises. The national reserves not just blown, but double-spent. She did not quite bellow ‘J’accuse’, but that was the gist, writes Joe Murphy:

Reeves didn’t just point the finger at the Tories – she crucified them

Rayner: Labour won’t build ‘a load of ugly houses’

Wednesday 31 July 2024 14:00 , Salma Ouaguira

Angela Rayner has insisted Labour will not build “a load of ugly houses” after ditching a Tory requirement for new housing to be beautiful.

The housing secretary scrapped the commitment after the government found it to be “too subjective”.

Asked about removing the word beautiful from the rules, Ms Rayner told the BBC: “I think this is ridiculous. Beautiful is so subjective but actually within the planning framework there is a lot of specifications about [being] in keeping with the local area. Beauty is in the eye of the beholder anyway.”

Ms Rayner said the housing requirement “means nothing really, it means one thing to one person and another thing to another”.

She added: “All that wording was doing was preventing and blocking development and that is why we think it is too subjective and actually the guidelines and the rules that are in place means that there has to be consultation, they have to follow the rules on what the buildings look like, the safety of the buildings, are they in keeping with the area.

“There are rules and protections in place so I don’t buy this idea that I am just going to build a load of ugly houses. That is just not true.”

Boris Johnson unveils cover for new book ‘Unleashed’

Wednesday 31 July 2024 13:56 , Salma Ouaguira

Minister is first MP of new Parliament investigated by standards watchdog

Wednesday 31 July 2024 13:56 , Salma Ouaguira

A Treasury minister is being investigated by parliament’s standards watchdog, the first such inquiry since the election.

Tulip Siddiq, economic secretary to the Treasury and MP for Hampstead and Highgate, is under investigation for the late registration of interests, according to the Parliamentary Standards Commissioner’s website.

The inquiry is thought to relate to Ms Siddiq’s failure to register rental income from a property in London, which a Labour spokesman said was “an administrative oversight” for which she had apologised.

The spokesman said: “Tulip will co-operate fully with the Parliamentary Commissioner on Standards on this matter.”

Ms Siddiq is the first MP of the new parliament to be placed under investigation by the Standards Commissioner.

But investigations into three former MPs which began during the last Parliament remain open.

Former Conservative MP Bob Stewart is being investigated for failing to declare an interest and an alleged lack of co-operation with the watchdog’s inquiry.

Ex-Tory and Reclaim MP Andrew Bridgen is being investigated over registration of his interests, while former Tory Sir Conor Burns is being investigated for use of information received in confidence.

During the last parliament, the Standards Commissioner opened more than 100 investigations into MPs, the majority of which were resolved by “rectification” – a procedure that allows MPs to correct minor or inadvertent breaches of Commons rules.

Comment: Angela Rayner’s ambitious housing plan may be the making of her

Wednesday 31 July 2024 13:50 , Salma Ouaguira

The new deputy prime minister’s first big outing in the Commons was her chance to prove that she has not been pushed to the political margins by Keir Starmer and Rachel Reeves – and she delivered in spades, says John Rentoul:

Sidelined? No – Angela Rayner’s ambitious housing plan may be the making of her

Pictured: John Healey and David Lammy meet Qatar’s Emir Sheikh bin Hamad al-Thani in Doha

Wednesday 31 July 2024 13:49 , Salma Ouaguira

Watch: Rachel Reeves admits taxes will rise in first Budget

Wednesday 31 July 2024 13:40 , Salma Ouaguira

Universities face sanctions if they fail to address staff-student relationships

Wednesday 31 July 2024 13:30 , Salma Ouaguira

Universities in England could face sanctions if they fail to take steps to prevent an “abuse of power” in intimate personal relationships between university staff and students, the higher education watchdog has said.

The Office for Students (OfS) will introduce a new condition of registration which will require higher education institutions in England to set out how they are protecting students from harassment and sexual misconduct.

It comes after a fifth of students who responded to an OfS survey said they had experienced unwanted sexual behaviour in the 2022/23 academic year.

Universities and colleges will not be able to use non-disclosure agreements (NDAs), which forbid students from talking about incidents of harassment or sexual misconduct, under the OfS’s condition of registration.

Higher education institutions will be required to take “one or more steps to make a significant and credible difference in protecting students” from any conflict of interest or “abuse of power” in intimate staff-student relationships.

But universities will have the flexibility to develop and publish their own policies on relationships between staff and students – including the restrictions or prohibitions they consider appropriate, the watchdog has said.

The OfS said: “We have said that a ban on intimate personal relationships is a step which would be considered to meet our requirements.

“A statement, on its own, which discourages relationships between staff and students will not be considered to meet our requirements.”

Labour ‘failed another generation’ with axing of social care reforms

Wednesday 31 July 2024 13:20 , Salma Ouaguira

The Labour government has “failed another generation of families” with the cancellation of a series of planned social care reforms, the architect of the plans has warned.

Rachel Reeves announced the cancellation of the Dilnot reforms on Monday, alongside a swathe of other spending cuts to address a black hole in the public finances left by the previous Conservative government.

Labour has ‘failed another generation of families’ with axing of social care reforms

Rayner: Majority of local communities will see their housing targets increase under Labour

Wednesday 31 July 2024 13:10 , Salma Ouaguira

Angela Rayner has said a majority of areas across the UK will have their housing targets increase under Labour plans to build 1.5million new homes in the next five years.

Ms Rayner told the BBC: “The method that we are using, what we are consulting on, is first of all around housing stock, so what they currently have, and then it is about affordability.

“So the reason that their target will have gone up is because they are not meeting the needs locally and therefore that has to be met.

“But I will be open with your listeners, the majority of places have had an uplift in their target because year upon year the Conservatives promised that they would build 300,000 homes and they failed to meet that target, year upon year.

“And that is why I have had to set the target at what it is and it is based on what the actual need is out there to solve this housing crisis.”

How much do junior doctors earn with pay rise deal?

Wednesday 31 July 2024 13:00 , Salma Ouaguira

The BMA and DHSC confirmed the total pay uplift across 2023-24 and 2024-25 will be 22.3 per cent on average.

​The offer consists of an additional uplift of 4.05 per cent for the pay year 2023/24 on top of the average 8.8 per cent already awarded. This will be backdated to April 2023.

For 2024-25 the government have offered junior doctors an average increase of 8 per cent.

The BMA and DHSC have also agreed to change the name of “junior doctors” to “resident doctors” from September of this year.

Ministers entered formal negotiations with the BMA’s junior doctors’ committee days ago. The breakthrough comes after more than a year of strikes and deadlocks between the previous government and junior doctors.

The deal would mean a doctor starting foundation training in the NHS will see their base pay increase to £36,600, compared to around £32,400.

Tory leadership race: Lord Frost endorses Robert Jenrick

Wednesday 31 July 2024 12:50 , Salma Ouaguira

Robert Jenrick has been backed by former Brexit minister Lord Frost in the Tory leadership race.

The Conservative peer said he is endorsing the former immigration minister over the Rwanda scheme.

Writing for the Telegraph, he said: “Anyone can talk. It takes courage to act. I know that. I gave up my ministerial career on principle in December 2021 by resigning in protest against yet another Covid lockdown. So, too, Robert resigned last year in protest at the government’s migration policy, and was one of the small group who refused to back the Rwanda Bill unless it freed us from the European Convention on Human Rights.

“If we had taken a different course then, and the boats had slowed or even stopped – who knows what the story of this election might have been? More firm stands on points of principle might have changed the outcome, at least in part. Instead, we continued full on to disaster. Only a few, like Robert, stood by their beliefs. To me, that makes a difference.

“That ability to see the big picture, and to stand on principle to deliver it, is why I support Robert Jenrick as leader of our party. I hope others will look at what he is saying – and then do the same.”

Braverman blasts ‘the beginning of the end of Brexit’ as Labour axes EU committee

Wednesday 31 July 2024 12:40 , Salma Ouaguira

Suella Braverman has slammed Labour’s decision to scrap the European Scrutiny Committee as the government seeks reset of ties with EU.

On Tuesday evening, MPs agreed to scrap the European Scrutiny Committee which was previously tasked with assessing the legal or political importance of EU documents and directives lodged with the Westminster Parliament pre and post-Brexit.

Reacting to the move, former home secretary said: “Anti-democratic, lacking transparency and a disservice to the millions of British people who voted to deliver Brexit in 2016 and 2019. This is the beginning of the end of Brexit.”

Exclusive: Peer accused of Islamophobia over ‘disgusting’ House of Lords speech

Wednesday 31 July 2024 12:30 , Salma Ouaguira

A peer has been accused of Islamophobia after giving a “disgusting and outrageous” speech in the House of Lords.

Lord Pearson of Rannoch claimed “radicals” plan to “take us over through the power of the womb and the ballot box” after discussing government plans to improve counterterrorism measures at public venues following the King’s Speech.

“The sharia allows Muslim men to have four wives at a time, most of whom are having at least two children, so the Muslim population is going up 10 times faster than our national average,” he told the House of Lords last Thursday.

Our race correspondent Nadine White has the full story:

Outrage as peer claims Muslim ‘radicals will take us over through power of the womb’

Click here to read the full blog on The Independent's website