Headlines
- The PM held talks with the German, French, and US leaders amid turmoil in the Middle East
- Minister unveils back to work push in bid to reduce welfare bill
- Financial situation 'not good at all', warns minister ahead of budget
- Lammy arrives in China for first official visit as foreign secretary
- Nicole Johnston:Lammy faces complicated and contentious issues on China visit
- Live reporting by Ben Bloch
In depth
- Listen:Inside the PM's cabinet revolt
- Sam Coates:Some ministers fear budget will be unpalatable
- Explained:How could taxes change?|What are 'fiscal rules'?
- Jon Craig:Veteran spares no expense with 'dinosaur' tendencies
It's goodbye from the Politics Hub
We're signing off for the day after another busy week.
But do join us again on Sunday morning for all the latest politics news.
Starmer says world will not 'tolerate' lack of humanitarian aid in Gaza
Keir Starmer has said "no one should mourn" the death of Hamas leaderYahya Sinwar.
But speaking at a press conference in Berlin, the prime minister also warned Israel the world will not "tolerate any more excuses on humanitarian assistance" in Gaza.
He said of Sinwar: "On his hands is the blood of innocent Israelis killed on the 7 October and over years of terror, and also the blood of the Palestinian people who suffered in the chaos and violence that he sought and celebrated.
"We continue to support Israel's right to self-defence. Particularly, in the face of the attacks by the Iranian regime."
Calling for aceasefire, Starmer added:"The humanitarian situation cannot continue.
"And I say once again to Israel, the world will not tolerate any more excuses on humanitarian assistance. Civilians in northern Gaza need food now."
What are fiscal rules - and how could they change?
By Alix Culbertson, political reporter
The chancellor is said to be considering changing her fiscal rules to allow for more borrowing in the budget on 30 October.
It goes against what she's previously said on the matter, but she's faced mounting pressure to mix it up to boost the Treasury's spending power.
What are fiscal rules?
A fiscal rule is a limit or restriction governments put in place to constrain how much they can borrow to fund public spending.
They can be set by an independent body, but since 1997 UK governments have set their own constraints.
Rules apply to the fiscal deficit, the gap between public expenditure and tax revenues in a year; the public debt, the total amount borrowed to finance past deficits; or public spending relative to GDP.
In 2010, the Office for Budget Responsibility (OBR) was set up to remove the Treasury's control over the forecasts that underpin fiscal policy.
What are the current fiscal rules?
Labour's manifesto laid out the new government's fiscal rules, describing them as "non-negotiable". They are:
- The current budget must move into balance, so day-to-day costs are met by revenues
- Debt must be falling as a percentage of GDP by the fifth year of the forecast - this was carried over from the Conservative government
How could the fiscal rules change?
The rules themselves are not expected to change.
However, the chancellor could change how debt is calculated, which could in turn change how much debt the UK officially has and give Ms Reeves room to borrow more.
Ms Reeves told the Labour conference "borrowing for investment" is the only plausible solution to the UK's productivity crisis.
By changing her definition of debt, she could find up to £50bn in additional headroom.
Quantitative Easing
An idea the chancellor is said to be weighing up is excluding the £20bn to £50bn annual losses being incurred by the Bank of England winding down its quantitative easing (QE) bond-buying programme.
Since the 2008 financial crisis, the Bank of England has repeatedly used QE to stimulate the economy and meet the 2% inflation target - creating £875bn of new money in 13 years.
During QE, the Bank buys bonds (debt security issued by the government) to push up their prices and bring down long-term interest rates on savings and loans.
Since November 2022, the Bank has been carrying out quantitative tightening, where it does not buy other bonds when bonds it holds mature, or by actively selling bonds to investors, or both.
Exclude institutions and projects
There are suggestions the chancellor could move GB Energy and the National Wealth Fund, both created by Labour, off the books.
Another option would be to exclude certain projects from the debt calculation.
Starmer agrees to deport illegal arrivals to Chagos Islands to St Helena
The government has agreed a Rwanda-style deal to deport illegal migrants arriving at the Chagos Islands (BIOT - British Indian Ocean Territory) to St Helena.
Asylum seekers arriving at the island chain will be shipped to St Helena, which is another UK territory over 5,000 miles away.
In a discreetly-issued announcement, the government of St Helena said "nonew migrants have arrived on BIOT since 2022", but under the deal, the UK will transfer any migrants to them.
The agreement will last for 18 months, or until the treaty the government agreed with Mauritius to transfer sovereignty of the Chagos Islands comes into effect.
At that point, Mauritius will be responsible for any illegal arrivals.
To support the agreement, the UK has agreed to "one-off funding" of £6.65m to "accelerate the work we have started in health, education and internal IT, including funding to clear our current overseas medical referral waiting list".
In a statement, the chief minister of St Helena, Julie Thomas, said this is a "unique opportunity for a British Overseas Territory to be in a position to assist the UK", and described this agreement as a "mutually beneficial solution".
"The additional support that will be provided from the UK government as a result of this arrangement will further strengthen our border controls to manage incoming migrants, and will also present the opportunity to invest in core services and to build and maintain a coherent community underpinned by a vibrant economy, which over time reduces St Helena's reliance on external aid," she added.
Alex Salmond's body is repatriated to Scotland
The plane carrying former Scottish first minister Alex Salmond's body back from North Macedonia where he died has just landed at Aberdeen airport.
The flight was paid for by businessman Sir Tom Hunter, and the coffin left North Macedonia just after 10.20am draped in a Saltire.
Mr Salmond's body was received by his family and Alba Party acting leader Kenny MacAskill before being taken to his family home in Aberdeenshire.
Plans are being put in place for a private funeral and more public memorial service.
Quad leaders meet in Berlin
Sir Keir Starmer has travelled to Berlin to meet with German chancellor Olaf Scholz, US president Joe Biden, and French president Emmanuel Macron.
They are set to discuss developments in the Middle East, and also the war in Ukraine.
But before the talks, they took a few minutes to take some photos marking the meeting...
Starmer arrives in Berlin for meeting with German chancellor and allies
Sir Keir Starmer has arrived at the German chancellory in Berlin, and was greeted on arrival by Olaf Scholz.
In addition to meeting with the German chancellor, the prime minister will hold talks with the US president, Joe Biden, and the French president, Emmanuel Macron.
The four leaders will be discussing the situation in the Middle East following Israel's killing yesterday of 7 October architect Yahya Sinwar and amid Israel's ongoing military action in Gaza and Lebanon.
They will also be discussing the war in Ukraine after President Zelenskyy toured European capitals with his 'victory plan'.
David Cameron opens up about son's death and 'black clouds' of grief
By Niamh Lynch, news reporter
Former prime minister David Cameron has opened up about the death of his six-year-old son Ivan in 2009 - and described the "chaos" of caring for him while balancing a life in politics.
Speaking to Sky'sKay Burley, the former Tory leader, 58, said the loss of Ivan - who had Ohtahara's syndrome - was "completely transformational".
'Happy memories do break through'
Lord Cameronsaid:"Bringing up children is hard enough but if you have a child who is having seizures every day, is having to be fed through a tube and needs to be cared for all night as well as all day, who's going in and out of hospital.
"I can still remember the chaos… of you're in hospital, then you're back home, then you're back again. I had just become an MP [when Ivan was born]. I remember turning up for debates in the House of Commons completely exhausted because I've been in St Mary's Paddington [hospital] all night.
"I remember this great blessing of having your first child. In spite of all the difficulties he had with the seizures and cerebral palsy and everything - you still remember this beautiful, smiling boy that you would rest on your lap and look after and love.
"The extraordinary thing about grief is to start with, there's nothing but black clouds. But after a while, happy memories do break through."
Labour 'won't take Tory advice' says minister - amid reports of £3bn of cuts to welfare
By Alexandra Rogers, political reporter
The government will not follow the advice of the previous Tory administration when it comes to slashing the welfare bill, a minister has said following reports the chancellor is eyeing up £3bn worth of cuts.
Work and pensions minister Alison McGovern said the UK was "paying the price of failure" from the previous government, with around 1.8 million people out of work who say they want a job.
Ahead of the budget, the government is looking toraise up to £40bn through tax hikes and spending cuts, to the alarm of some ministers who areconcerned by the scale of the chancellor's plans.
There have been reports that the Department for Work and Pensions is one target for cuts, with Rachel Reeves seeking to slash around £3bn from the welfare bill over the next four years by restricting access to sickness benefits.
Badenoch will need to go beyond 'diehard Tories' to rebuild party, peer says
By Alix Culbertson, political reporter
Kemi Badenoch will have to rebuild the Tory party if she becomes leader and will need to "pivot" by talking to those who are not "diehard Tories", Conservative peer Ruth Davidson has said.
Baroness Davidson told Beth Rigby on theElectoral Dysfunctionpodcast Ms Badenoch, who is in the final two of the Conservative leadership contest, will have to look outside core Tory voters to rebuild the party.
She said the fact that Ms Badenoch chooses to appear in media "that is very much considered to have a high proportion of people that are already Conservative members and voters" - such as The Telegraph, the Daily Mail, the Daily Express and GB News - betrays "certainly a lack of confidence".
"This is somebody that is going to have to rebuild the Tory party and they're going to have to do it by talking beyond people that are already diehard Tories," Baroness Davidson said.
"If she wins, she needs to pivot. She needs to pivot fast."
The Conservative peer and former leader of the Scottish Tories said Ms Badenoch, the former business secretary, "clearly thinks she is winning and she doesn't have to chase it".
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