Politics LIVE: 'Reckless' Rachel Reeves handed 'horror show' report card as OBR condemns Labour U-turns
WATCH: Kelvin MacKenzie brands Keir Starmer and Rachel Reeves the 'worst double act in political history'
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WATCH: Kelvin MacKenzie brands Keir Starmer and Rachel Reeves the 'worst double act in political history'
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Rachel Reeves has been handed a "horror show" report card by the Office for Budget Responsibility which has warned that Labour's string of U-turns have left Britain's finances in a "vulnerable position".
The OBR's fiscal risks and sustainability report this morning explicitly calls out the Government's benefits climbdown and defence spending hike for "creating new pressures on the public finances".
Elsewhere, it projects that debt will rise to a staggering 270 per cent of GDP by the early 2070s.
"Recent policy commitments create new pressures on the public finances, including the reinstatement of winter fuel payments for some pensioners, the reversal of welfare reforms, and the commitment to further increase defence spending to 3.5 per cent of GDP by 2035," the OBR said.
The office jabs that efforts to correct Britain's public finances have been "met with only limited and temporary success in recent years".
The result, the OBR adds, "has been a substantial erosion of the UK’s capacity to respond to future shocks".
Maxwell Marlow of the free-market Adam Smith Institute think tank said the report was a "horror show" and "emergency level stuff" which proves "the economy needs to be flipped on its head".
While ex-Chief Secretary to the Treasury Simon Clarke warned that Britain now faces "huge structural problems".
The Chancellor, last July, handed the OBR greater oversight over the Treasury, with ministers legally bound to consult it before every major fiscal event as a result.
A Treasury spokesman said: "We recognise the long-standing economic realities the OBR sets out in its report.
"This is why we are committed to ensuring stability in the economy through our non-negotiable fiscal rules which have allowed us to invest in the UK to drive a decade of renewal and put more money in people's pockets."
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Health Secretary Wes Streeting will meet with the co-chairs of the British Medical Association after resident doctors - or junior doctors - voted to strike.
The union is calling on Streeting to "find a credible path to pay restoration" in a bid to secure a 29.2 per cent pay rise.
Some 90 per cent of those who voted in the BMA's ballot chose to strike today, at a 55 per cent turnout.
A Department for Health and Social Care spokesman said: "While most resident doctors in the BMA did not vote to strike, it is disappointing that the BMA is continuing to threaten strike action after a pay rise of 28.9 per cent over the last three years.
"The secretary of state has been clear that he wants to work constructively with all unions, including the BMA, to improve working conditions for NHS staff and avoid strike action, which can be hugely disruptive for patients."
'I have decided to continue my parliamentary career as an independent MP,' McMurdock said
HOUSE OF COMMONS
James McMurdock, the Reform UK MP who surrendered his party's whip on Saturday, has said he will "continue his parliamentary career as an independent MP" after taking legal advice.
After a probe by The Times, McMurdock is said to have borrowed £70,000 under the Government's Bounce Back loans scheme in 2020 through two companies he owned.
He has now released a fresh statement, which reads: "Further to my statement tweeted on July 5, 2025, I have now had a chance to take specialist legal advice from an expert in the relevant field.
"In light of that advice, which is privileged and which I choose to keep private at this time, I have decided to continue my parliamentary career as an independent MP where I can focus 100 per cent on the interests of my constituents."
Shadow Chancellor Mel Stride has issued a scathing swipe at his Cabinet counterpart
PAShadow Chancellor Mel Stride has issued a scathing swipe at his Cabinet counterpart following this morning's OBR report.
"While working families are tightening their belts, Labour have lost control of the public finances," Stride fumed.
"The OBR's report lays bare the damage: Britain now has the third-highest deficit and the fourth-highest debt burden in Europe, with borrowing costs among the highest in the developed world.
"Under Rachel Reeves' economic mismanagement and Keir Starmer's weak leadership, our public finances have become dangerously exposed - vulnerable to future shocks, welfare spending rising unsustainably, taxes rising to record highs and crippling levels of debt interest.
"Labour's recklessness risks it all - your pension, your job, your home, your savings."
Emmanuel Macron's touchdown statement in Britain continues: "This is also a significant moment for our Europe.
"The willingness expressed by the United Kingdom to strengthen ties with the European Union is a powerful signal - one that I welcome.
"It commits us collectively to explore new means of cooperation that respect our mutual interests.
"There is so much we can build together: for the stability of our continent, for our shared prosperity and competitiveness, and for the protection of our democracies.
"Our joint efforts to support Ukraine - where the security of our continent is at stake - our industrial projects with EDF, our cooperation in space and joint military work are all concrete examples that show how vibrant and forward-looking our partnership is.
"French and British: two free and proud peoples who never give up. That is what unites us, beyond any official texts. That is what binds us."
Emmanuel Macron has hailed 'an important moment for our two nations' as his plane touched down at RAF Northolt (file photo)
REUTERSEmmanuel Macron has hailed "an important moment for our two nations" as his plane touched down at RAF Northolt for his state visit to Britain this morning.
"The United Kingdom is a strategic partner, an ally, a friend. Our bond is longstanding, forged by history and strengthened by trust," he said.
"Together, we will address the major challenges of our time: security, defence, nuclear energy, space, innovation, artificial intelligence, migration, and culture.
"These are all areas in which we seek to act together and deepen our co-operation in a concrete, effective and lasting way."
Rupert Lowe has let rip at Labour after the Government issued a response to his petition to "review possible penalties for social media posts" in the wake of Lucy Connolly's jailing for a social media post.
A Ministry of Justice response to the poll says: "Freedom of expression is a cornerstone of our democratic society.
"It is a long-standing tradition in this country that people are free to demonstrate their views, however uncomfortable these may be to the majority.
"The Government is committed to protecting this right while also ensuring that laws are in place to address harmful, criminal behaviour."
The MoJ's response also adds: "The law also makes clear that imprisonment should only be imposed where no other sentence would be appropriate."
But the ex-Reform UK MP hit back, saying: "Do they genuinely believe that prison is the only option for Lucy? Really?! INSANE."
Connolly, a mother-of-two, was sentenced to 31 months behind bars for a social media post in the wake of Axel Rudakubana's Southport murders in which she declared "set fire to all the... hotels [housing asylum seekers]...for all I care".
Boris Johnson has paid a heartfelt tribute to Norman Tebbit following his death at 94 last night.
Tebbit "was a hero of modern Conservatism", the former PM said.
"In the early 1980s, he liberated the British workforce from the socialist tyranny of the closed shop. He tamed the union bosses, and in so doing he helped pave the way for this country's revival in the 1980s and 1990s.
"At a time when the Labour Government is now disastrously reversing those crucial reforms, we need to remember what he did and why.
"In his single most famous phrase he once said that in the 1930s his unemployed father had got on his bike and looked for work.
"That wasn't a heartless thing to say - as the Labour Party claimed.
"It was because he believed in thrift and energy and self-reliance. It was because he rejected a culture of easy entitlement.
"We mourn the passing of a great patriot, a great Conservative - and today more than ever we need to restore the values of Norman Tebbit to our politics."
Britain is set to miss Donald Trump's deadline to agree a trade deal on steel and aluminium this week, insiders from Government and industry have said.
Trump had warned that unless Britain could finalise the details of its metals trade deal with the US by July 9, he would double the tariffs faced by steel and aluminium imports from the current 25 per cent rate to 50 per cent.
If a deal is reached, those tariffs could drop to zero.
But after weeks of negotiations, talks have come up short on two key issues, Sky News reports.
The US is insisting that only steel "melted and poured" in Britain can be included in the deal.
However, one of Britain's biggest steel exporters to the US, Tata Steel, is no longer melting and pouring its steel in Britain, because of the closure of its blast furnaces under the last Conservative Government.
Sir Keir Starmer is facing a last-ditch push to secure a 'one-in, one-out' migrant returns deal
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Sir Keir Starmer is facing a last-ditch push to secure a "one-in, one-out" migrant returns deal with France as Emmanuel Macron heads across the Channel for a landmark state visit.
The trip, the first of its kind by a French President since 2008, will see Macron addressing both Houses of Parliament shortly after 4pm.
Late last night, Government sources said talks were ongoing on the deal but warned they were "very complicated".
It follows months of negotiations between Home Secretary Yvette Cooper and her French counterpart Bruno Retailleau to strike a deal.
The scheme would allow Britain to send Channel migrants back to France, while in return, Britain would accept migrants with a "legitimate case" for joining family already in the UK.
One Government insider told The Times it would require "considerably more than half" of all small boat arrivals to be returned to France in order to be effective.
While Border Force sources have said rushing to announce a deal before it is ready to implement would trigger an additional summer surge in small boat crossings.
But any agreement will also dictate how much Britain will pay France, with Paris demanding upgrades to security and detection equipment.
UK taxpayers, thanks to a deal signed under Rishi Sunak, are paying £480million over three years for French police, technology and intelligence.
Chris Philp, Sunak's former Policing Minister, said: "We've paid France £771million and they’ve stopped very few migrants on land and none at sea.
"This is in contrast to Belgium, where embarkations have dropped 90 per cent because they do intercept at sea. We should be asking France for a refund."
Sir Keir Starmer is convening his weekly Cabinet meeting this morning ahead of Emmanuel Macron's arrival in the UK.
The Prime Minister is facing his ministers after spending Monday evening speaking to Labour MPs at the parliamentary Labour Party's summer reception.
Starmer is said to have given a short speech about the achievements of his first year in power.
One MP said that there was a lot of "stage management... from her [Angela Rayner's] people" to ensure the Deputy PM spoke to as many MPs as possible, Politico reports.
But the PLP gathering came after reports emerged of a fresh backbench rebellion - this time, over Special Educational Needs and Disability (Send) pupil funding.
"Our Conservative family mourns the loss of Lord Tebbit today and I send my sincerest condolences to his loved ones," Kemi Badenoch said this morning.
"Norman Tebbit was an icon in British politics and his death will cause sadness across the political spectrum. He was one of the leading exponents of the philosophy we now know as Thatcherism and his unstinting service in the pursuit of improving our country should be held up as an inspiration to all Conservatives.
"As a minister in Thatcher's administration, he was one of the main agents of the transformation of our country, notably in taming the trade unions.
"But to many of us it was the stoicism and courage he showed in the face of terrorism which inspired us as he rebuilt his political career after suffering terrible injuries in the Brighton bomb, and cared selflessly for his wife Margaret, who was gravely disabled in the bombing.
"A reminder that he was first and foremost a family man who always held true to his principles. He never buckled under pressure and he never compromised.
"Our nation has lost one of its very best today and I speak for all the Conservative family and beyond in recognising Lord Tebbit's enormous intellect and profound sense of duty to his country. May he rest in peace."
Lord Tebbit, one of Margaret Thatcher's closest allies and a former Tory Party chairman, has died
PALord Tebbit, one of Margaret Thatcher's closest allies and a former Tory Party chairman, has died aged 94.
The former journalist, pilot and minister died peacefully on July 7 at 11.15pm.
Tebbit was targeted in the IRA's vicious 1984 bombing of Brighton's Grand Hotel, which left his wife Margaret paralysed for the rest of her life.
The Tory grandee survived Margaret by five years following her death in 2020.
Eluned Morgan has acknowledged Reform UK as a 'serious threat' after Nigel Farage's party topped a landmark Welsh poll
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Wales's First Minister Eluned Morgan has acknowledged Reform UK as a "serious threat" after Nigel Farage's party topped a landmark Welsh poll.
Baroness Morgan said "We're taking it very seriously, and we think the threat from Reform is a very serious threat" as she claimed to voters that the party would "snatch away" free prescriptions and school meals.
Polling by More In Common found that 28 per cent of people in Wales would back Reform at the Senedd elections in 2026, putting the party in first place ahead of both Plaid Cymru and Morgan's third-place Labour - which has run Wales for more than a century.
The Welsh FM told Sky News it was "a possibility" that Reform could become the largest party in the Senedd, saying it was "really concerning", but added it would be "difficult for them to rule by themselves".
The polling also follows ex-Welsh Secretary David Jones's defection to Reform in the highest-profile defection to Nigel Farage's party yet.
"Only Reform UK is demonstrating the determination needed to tackle the country's many problems and to improve the lives of people across Britain," Jones said.
Emmanuel Macron is set to snub Nigel Farage by not meeting him during his state visit to Britain, GB News can confirm.
The French President is scheduled to speak to both Tory leader Kemi Badenoch and Lib Dem counterpart Sir Ed Davey - but no such meeting is planned with the Reform UK chief.
Farage, meanwhile, has said he has "no idea" if he is due to meet Macron, who will be dining with the King, Queen, Prime Minister and more as part of a packed schedule this week.
And his deputy, Richard Tice, has poured scorn across the Channel as a result.