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Rachel Reeves warns other budgets may be cut to lift defence spending

about 9 hours ago
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Rachel Reeves has warned “difficult choices” are required to increase defence spending and other budgets may have to be cut, including welfare.Under pressure for a faster rise in the military budget amid the Iran conflict and Russia’s war in Ukraine, the chancellor said she was “working through a range of options” but preferred not to increase taxes or add to government borrowing.She said: “My two budgets have both increased taxes substantially.I would prefer not to have to do that again.And on borrowing, well look, we’ve seen through this conflict [in Iran] the cost of government borrowing increase.

“We already spend £1 in every £10 on what the government spends on servicing the debt,If we increase that debt further we’d only be increasing how much we would be spending,”In comments suggesting readiness to face down her Labour colleagues, Reeves said: “I think people have seen that I’m willing to make difficult choices and challenge the orthodoxy through what I did last year to realise more money for defence,”Speaking to journalists on the sidelines of the International Monetary Fund spring meetings in Washington, she said ministers were working through the government’s 10-year defence investment plan and it was important to allocate funding appropriately,While refusing to be drawn directly on whether welfare cuts would be targeted, Reeves said: “National security always comes first, I’ll always do the right thing as chancellor for our country.

”When asked if the pensions triple lock could be ditched, she said Labour remained committed to its manifesto promise to keep the policy,“We’re not changing that,” she added,Her comments on welfare echo those of Wes Streeting, the health secretary, who suggested earlier on Thursday that welfare cuts could be required because it was critical to deal with the “challenge of the world we face”,Keir Starmer’s government faces mounting pressure from opposition politicians and former senior military figures for a faster rise in defence spending amid Donald Trump’s threats to withdraw the US from Nato and escalating geopolitical tensions,UK spending on defence is on track to reach 2.

6% of gross domestic product by April next year, which Reeves said was ahead of the plans outlined by both Labour and opposition parties in their manifestos before the 2024 general election.The chancellor said she was proud to have provided the biggest uplift in defence spending since the end of the cold war in her previous budgets: “To have a strong and secure economy you’ve got to have strong defences and strong national security.”Reeves said the economic shock from the Iran conflict was limiting her room for manoeuvre in the public finances.The IMF said on Tuesday that a further escalation in the Middle East war could trigger a global recession that would affect the UK more than any other G7 nation.It also sounded the alarm over government debt levels that were on track to reach the highest point since the second world war and called on countries most in the red to focus on targeted and temporary energy support measures.

Reeves suggested her support measures for households and businesses would need to be funded through reprioritising other budgets.Highlighting the blanket support measures used by Liz Truss’s Conservative government after the Russian invasion of Ukraine, she said the top third of families had received more than a third of the support.With the subsidies costing more than £100bn, she said this had resulted in “higher inflation, higher interest rates, and ultimately higher taxes to repay it”.She added: “I think the best way to help families in Britain and to help businesses as well is to do everything I can to keep prices, costs and interest rates down.”
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Five key questions: who overruled decision to deny Mandelson security clearance?

The revelation that Peter Mandelson failed his security vetting clearance, only for the decision to be overruled by the Foreign Office so he could take up his post as ambassador to the US, raises a number of questions.According to multiple sources, Mandelson was initially denied clearance in late January 2025 after a developed vetting process, a type of a highly confidential background check carried out by UK Security Vetting (UKSV), a division of the Cabinet Office.By that stage he had already been announced as Keir Starmer’s pick for ambassador in Washington. Within two days, the Foreign Office had overruled the UKSV decision, granting him clearance despite the recommendation from security officials. It is not known who made the decision to overrule security officials, or why

about 10 hours ago
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Officials debate withholding Mandelson vetting documents from parliament

Exclusive: Opinions split on ‘unprecedented’ release of files, despite demand for ‘all papers’ related to ex-US ambassador’s appointmentRevealed: Mandelson failed vetting but Foreign Office overruled decisionFive key questions: who overruled decision to deny Mandelson security clearance?Senior government officials have been considering whether to withhold from parliament sensitive documents that show Peter Mandelson failed security vetting before he assumed the role of US ambassador, the Guardian can reveal.Any such decision could amount to an extraordinary breach of a parliamentary vote, known as a humble address, that ordered the release of “all papers” relevant to Mandelson’s appointment.The Guardian has revealed that Mandelson did not receive vetting clearance from security officials, but that their decision was overruled by the Foreign Office to ensure he could take up his post.According to multiple sources, officials across government have been in dispute over whether to release documents that would reveal those facts, and other information about Mandelson’s security vetting, to the parliamentary intelligence and security committee (ISC).The committee has been entrusted by parliament with the role of assessing the most sensitive papers relating to Mandelson’s appointment

about 10 hours ago
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Revealed: Mandelson failed vetting but Foreign Office overruled decision

Guardian investigation uncovers decision by UK security officials to deny clearance before Mandelson took up role as US ambassadorTop civil servant Olly Robbins forced out over vetting rowOfficials debate withholding Mandelson vetting documents from parliamentFive key questions: Who overruled the decision to deny Mandelson security clearance?Peter Mandelson failed his security vetting clearance but the decision was overruled by the Foreign Office to ensure he could take up his post as ambassador to the US, an investigation by the Guardian can reveal.According to multiple sources, Mandelson was initially denied clearance in late January 2025 after a developed vetting process, a highly confidential background check by security officials.Keir Starmer had by then announced he would be making Mandelson the UK’s chief diplomat in Washington, posing a dilemma for officials at the Foreign Office, who decided to use a rarely used authority to override the recommendation from security officials.Mandelson’s failure to secure vetting approval has not previously been publicly revealed, despite intense scrutiny over his appointment and the release by the government of 147 pages of documents supposed to shed light on the case.Downing Street released a statement late on Thursday confirming the Guardian’s story

about 10 hours ago
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As an older man, I feel for Peter Mandelson being caught short | Letter

You report that the Royal Borough of Kensington and Chelsea intends to fine Peter Mandelson for urinating in the street at 11pm one night last November (Peter Mandelson faces fixed-penalty notice for urinating in public, 10 April). I’m no fan of Mr Mandelson, but on this occasion my sympathies are entirely with him.I am a year younger than him and, like many men of similar age, what used to be quaintly called my “waterworks” aren’t as robust as they used to be.What was he supposed to do when caught short on a cold night? Wet himself and allow the stream to flow from his trouser leg? Or follow the example of the Danish astronomer Tycho Brahe, who refused to leave a banquet to relieve himself because it would be a breach of etiquette and, according to Johannes Kepler, died shortly after as a result?If the council proceeds with this fine, I assume that it will also fine dog owners who allow their pets to pee in the street. This would be ridiculous, but no more so than what it intends doing with Mr Mandelson

about 12 hours ago
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A decade on from Brexit, Britain still flounders without a place in the world | Letters

Perhaps the saddest consequence of Brexit is that it has left the UK a profoundly unhappy country (Ten years after Brexit, this is the UK: a divided nation frozen in time, 9 April). For Brexit supporters, the dream of a proud, independent Britain able to direct its own destiny in the world is nowhere near fulfilled, as if it ever could be. And they continue to grasp at the nearest proximate cause – an “invasion” of immigrants undermining British identity and draining its resources. For those who wished to remain, Brexit has left them unmoored from the security of membership of a grouping that gave them an identity and clear position in the world.Unfortunately, that unhappiness is now exacerbated by the state of the world outside the UK

about 12 hours ago
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SNP pledges to cap bread and milk prices if it wins Scotland’s parliamentary elections

The SNP will cap supermarket prices for essential goods such as bread and milk if it retains power, John Swinney has pledged, after describing the cost of living as “the defining issue of this election”.With polls pointing to a fifth Holyrood term for the Scottish National party, its leader said he would use devolved public health powers to fix prices on 20 to 50 items such as bread, milk, cheese, eggs, rice and chicken because their rising cost was “impacting our nation’s nutrition”.The eye-catching pledge, made at the launch of the SNP manifesto for the Scottish parliament election, was immediately dismissed as a “potty gimmick” by retailers. It could also put the party on a collision course with the UK government because it may breach the Scotland Act of 1998 that created a devolved parliament.Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, said supermarkets already paid significantly higher rates in Scotland, £162m more over the next three years than in England

about 13 hours ago
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Stephen Colbert to Trump: ‘Why would you start a beef with the pope?’

1 day ago
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‘This craving to go viral is tiresome’: the artists sick of the pressure to promote on social media

2 days ago
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Sir Neil Cossons obituary

2 days ago
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V&A censored catalogues after demands by Chinese printer

2 days ago
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Jon Stewart on Trump’s Jesus photo denial: ‘Do you even care about lying to us any more?’

2 days ago
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Cultural venues in England to share £130m under Arts Everywhere scheme

3 days ago