Keir Starmer has defended the government’s handling of the economy, but declined to rule out tax rises in the autumn budget.Speaking to broadcasters on a visit to Milton Keynes today, he also claimed that he did not “recognise” some of the figures in a thinktank report claiming that in the budget in the autumn Rachel Reeves will need to address a deficit of more than £40bn.The National Institute of Economic and Social Research argues that tax rises will be needed to plug the hole in government finances.(See 9.39am.

)At PMQs last month Starmer said he was still committed to Labour’s manifesto commitment not to raise income tax, employee national insurance or VAT.But today, when he was specifically asked in an interview if the Treasury was still ruling our raising these three taxes, Starmer did not give that assurance.Instead he said:In the autumn, we’ll get the full forecast and obviously set out our budget.The focus will be living standards, so that we will build on what we’ve done in the first year of this government.We’ve stabilised the economy.

That means interest rates have been cut now four times.For anybody watching this on a mortgage that makes a huge difference on a monthly basis to how much they pay.In the first year, we’ve raised wages as well, both in the private sector plus the minimum wage, which means people have got a bit more money coming into their pocket, and so at this stage that will be set out in the budget, but the focus will very much be on living standards and making sure people feel better off.Asked whether he disagreed with economists warning tax rises in the budget would be necessary to raise revenue, Starmer replied:Some of the figures that are being put out are not figures that I recognise, but the budget won’t be until later in the year, and that’s why we’ll have the forecast then and we’ll set out our plans.What’s really important is that I’m very clear about our focus, which will be on living standards and making sure that people feel better-off, partly because more money is coming into their pocket in the first place through better wages, and partly because we’re bearing down on costs like mortgages and other costs to everyday families.

Keir Starmer has defended the government’s handling of the economy – but declined to rule out tax rises in the autumn budget.He was speaking after the National Institute of Economic and Social Research, a thinktank, published a report saying the government would need to raise more than £40bn to cover the deficit it faces at the budget – or more than £50bn, if it wants a £10bn buffer.This prediction is more gloomy than those produced by other economic forecasters, and Starmer said he did not “recognise” the figures produced by the NIESR.But, in an interview, he declined to rule out increasing income tax, employee national insurance or VAT in the budget.In its manifesto Labour ruled out raising any these taxes and, only last month at PMQs, Starmer restated that commitment.

Some economists believe Labour should abandon this promise because the fiscal situation is so dire.Starmer’s evasive answer might just have been down to a willingess to ignore the journalist’s question out of a desire to focus on the soundbite he wanted to deliver.But it could also be an indication that a rethink is underway, or that at least Starmer is holding open the option of an election pledge-busting tax increase.Starmer has accused Nigel Farage, the Reform UK leader, of condoning Andrew Tate’s misogynist views.He hit out in an interview with 5 News where he was asked about the impact that Tate has on teenage boys.

In the past Farage has described Tate as a “very important” voice for boys who feel that they keep being told “masculinity is something we should look down upon” – although, since Tate has been charged with offences including rape and human trafficking, Farage has been more keen to stress he’s “not a Tate supporter”.Starmer told 5 News that Farage was wrong to side with Tate’s misogyny.He said:[Tate’s misogyny is] something we should be concerned about.Therefore I don’t share Nigel Farage’s view that this is alright.I don’t think any parent really seriously thinks it’s alright because misogyny is something that gets deep into the psyche, affects so many young people.

And we should call it out … whether it’s Andrew Tate or others.Naomi Klein and Angela Davis are among dozens of international scholars and writers who have signed a letter to the Guardian calling on the UK government to reverse the ban on Palestine Action.Activity in the UK construction sector fell last month at the sharpest rate since the height of the Covid pandemic amid a collapse in housebuilding, underscoring the challenge facing the government to meet its 1.5m new homes target.Ministers have been accused of undermining innovation in the north of England after six universities from the south were awarded £10m to hire overseas talent – with none selected between Birmingham and Glasgow.

For a full list of all the stories covered on the blog today, do scroll through the list of key event headlines near the top of the blog.Labour party members are split almost 50/50 on whether they agree with the thrust of the supreme court ruling saying that references to sex in the Equality Act should be taken as referring to biological sex.The government welcomed the ruling in April, saying that it would provide clarity and allow single-sex spaces to be protected for biological women.But the judgment alarmed transgender campaigners, who fear that the judgment will led to trans people being excluded from single-sex environments where they were previously admitted on the basis of their declared gender, not their biological sex.The Equality and Human Rights Commission has issued interim guidance on what the ruling means, but a revised code of practice is yet to be published.

In his story about the poll for LabourList, Daniel Green says:According to a poll conducted by Survation of Labour members who read LabourList, released in partnership with Metro, 43% said the government was right to say trans women should be excluded from women-only spaces based on their biological sex, while 40% disagreed with the government’s stance.The narrow lead for those backing the government’s approach falls within the poll’s margin of error, indicating the membership is effectively split down the middle on the issue.The poll follows the publication of a recent report in the Times saying numerous Labour MPs are telling constituents that they do not think it is right that trans people should be excluded from all single-sex spaces in the light of the supreme court judgment.The government has announced an £88m investment in youth clubs and schools, with some of the money going to fund music lessons.That is why Keir Starmer was at a music class to promote it earlier, and he has also given an interview to Classic FM.

As a teenager Starmer was a scholar at the Guildhall School of Music, playing the flute, and in his interview he said that music was exactly the sort of activity that could encourage children to socialise with other people in person – something he believes is being neglected in the internet age.(See 8.53pm.)He said:As everybody’s ever done music will know, you’ve got to work in a team.You have to play your notes or your instrument at the right time.

Got to have eye contact,Those are skills which go way beyond music,I don’t know how many businesses say to me, ‘Keir, we can do the technical skills they need for our business, but what we lack with young people is the eye contact, the confidence, the working in a team,’So I think this is hugely important, and that’s why, in the curriculum review, it’s really important we give proper weight to music and creative sectors, whether that’s music, drama, culture, you name it,Because at the moment, too many schools are not really in this.

Asked to name his favourite piece of classical music, Starmer said it was Beethoven’s Piano Concerto No 5, 2nd movement.He said it was played at his wedding as his wife came down the aisle, “an incredibly beautiful, simple but beautiful, piece of music”.Some rightwingers are interpreting Keir Starmer’s comments about the economy today, and his focus on living standards (see 12.55pm and 2.14pm), as evidence that growth is no longer his priority.

This is from Lord Ashcroft, a Conservative donor and former deputy chair of the party.Growth growth growth will be our focus screamed @Keir_Starmer and @RachelReevesMP.Seems that will be another u-turn and abandoned as @UKLabour have to deal with a self inflicted 40/50billion black hole…Ashcroft may have been inspired by this report on the Guido Fawkes website.The Liberal Democrats have expressed alarm at the news that Southern Water is applying for a drought order that would allow it to draw larger quantities of water than usual from the River Test.Danny Chambers, the Lib Dem MP for Winchester, said:The River Test is one of the most beautiful rivers in the county and is home to many endangered species like salmon and otters.

What Southern Water is proposing simply cannot be allowed to happen – it will damage our precious chalk stream and local wildlife.This is unfortunately another page in the ever-growing catalogue of Southern Water failures; putting up customer bills whilst pumping filthy sewage into our waterways and handing out large bonuses to their executives.The Green party has expressed support for asylum seekers who risk being targeted by protests planned for this weekend outside hotels that house them.The Greens’ spokesperson on policing and domestic safety, Amanda Onwuemene, said:The unrest we are seeing outside hotels housing asylum seekers and in our communities is unacceptable.The protests are the result of the deliberate spread of myths and lies about asylum seekers and refugees and are being stoked by the far right.

The Green party stands in solidarity with all those who are using their right to seek asylum and who must be feeling unsafe and frightened at this time.We must remember our basic humanity.Those coming to this country to flee violence include mothers with their children, as well as people of all ages who have endured unimaginable trauma.We have a duty to offer compassion and sanctuary, not fear and intimidation.Our political leaders also have a duty to show moral backbone and stand firm against the divisive demands of the far right on migration which will only foster racism and Islamophobia in our communities.

On Friday, protests are being planned outside at least 10 hotels in England.Helena Horton is a Guardian environment reporter.Steve Reed, the environment secretary, is being asked by a water company to allow sweeping water-use bans including the filling of non-domestic swimming pools and ponds.Southern Water has asked Reed for permission to extend its hosepipe ban, which came into force last month, to a more severe non-essential use ban.This prohibits businesses from using excessive water, including cleaning any vehicle, boat, aircraft or railway rolling stock using a hosepipe and the cleaning of any window or exterior part of a non-domestic building or a non-domestic wall using a hosepipe.

It also contains a ban on filling swimming pools and ponds.Despite the recent rainy weather, England still faces drought this summer after the driest spring and start to the summer since records began.Public water supply reservoirs across England are 69.7% full but some are at historic lows for the time of year, with Yorkshire Water reservoirs now 47% full and the Pennines group 41.2% full.

Water companies have not built a new major reservoir since privatisation over 30 years ago, and they have failed to keep pipes in good repair, meaning 3bn litres of water is wasted each day through leaks.The Guardian also reported today that Southern Water has angered environmental experts by applying for a drought order which would allow it to drain the River Test, a rare chalk stream which is home to salmon and otters, below ecologically safe levels.In his comments to broadcasters today about economic policy, Keir Starmer said that his focus was on living standards – and, in particular, how the government could help with policies that drive up wages and drive down costs.(See 12.55pm.

)In its report today the National Institute of Economic and Social Research says that it expects “living standards to grow modestly in 2025-26 for middle- and high-income households but decline for the poorest 10%”.It says that is because “for these households, higher-than-inflation increases in housing and food costs are likely to outstrip income growth”.And here is what it says in more detail about living standards.Real personal disposable income (RPDI) rose by 4.1% in 2024-25, on the back of strong real wage growth.

While this was a welcome respite from the cost of living crisis since 2022, higher RPDI did not apply evenly across the UK income distribution (table 2.1).Higher-income households benefited disproportionately from pay rises and the concomitant improvement in living standards.Meanwhile, the poorest 10% of households were better off at the end of 2024-25 than in 2022-23 but their living standards are still some 10% below the prepandemic level …We project weak growth in RPDI, which will increase by 1.1% in 2025 and 1.

2% in 2026.While middle- and high-income households will see their living standards improve, low-income households will be adversely affected by two factors.First, lower-than-average increases in earnings.Second, higher inflation for essentials, notably food (whose inflation rate currently stands at 4.5%), that represent a large proportion of budgets of low-income households.

As reported in the spring 2025 outlook, food price inflation is rising and expected to outpace the aggregate inflation rate during 2025-26, partly due to a combination of cost pressures on food producers and supply chain issues, with corresponding impacts upon household inflation expectations,We project food inflation for 2025-26 at 5% with effects varying across the distribution by the share of food in the commodity baskets,Taken together, this will likely erode last year’s gains in living standards for the bottom 20% of UK households,Here is table 2,1Today Chris Philp, the shadow home secretary, has been on a boat in the Channel investigating the small boats crisis.

Following in the steps of politicians like Nigel Farage and Robert Jenrick, who are fond of filming gonzo-style reports for social media, he has posted a video on X claiming to have established that the “one in, one out” returns treaty with France (details of which were only published yesterday) is not working.I’m on the Channel today just off Calais to see if the Government’s new deal with France is workingIt isn’tThere is a boat full of illegal immigrants crossing right in front of meThe French warship is escorting it and & making no attempt at all to stop itMore news later pic.twitter.com/Mpt3ynqzJUHe also posted this, where you can hear Philp express his outrage at hearing the commander of a French warship ask for the return of 60 lifejackets provided to people on small boats.French forces this morning asking for their life jackets back so they facilitate even more illegal crossingsFacilitating illegal immigration is a criminal offence (s25 Immigration Act 1971) - surely that is what is happening here pic.

twitter.com/KiSikMDWN7And this.One of today’s boats I observed earlierComing to a hotel near you soonProof the government’s new deal is not deterring anyone as predicted I’m not seeing any women or children thereAnd France is a safe country, so no one on the boat is fleeing war or persecution in France pic.twitter.com/LkDujoQ9rWIn response, Angela Eagle, the minister for border security and asylum, has posted a reply saying that it is wholly unrealistic to expect small boat crossings to stop immediately, and that at least Labour has a “serious and comprehensive plan”, unlike the Conservatives, whose polices all failed, she says