
Check out our latest products
‘Frankly insanity’ – Tories claim plan revelations show why Labour should block Chinese ‘super-embassy’ plan
Responding to Pennycook, Alicia Kearns, a shadow Home Office minister, said she was disappointed by the fact that she just got a “technocratic history lesson” from the minister.
She went on:
208 secret rooms and a hidden chamber just one metre from cable serving City of London and the British people. That is what the unredacted plans tell us that the Chinese Communist Party has planned for its new embassy if the government gives them the go ahead. Indeed, we now know they plan to demolish the wall between the cables and their embassy cables, in which our economy is dependent.
Kearns said this would mean the Chinese could have access to “cables carrying millions of British people’s emails and financial data”, and she said this meant they would have “a launchpad for economic warfare against our nation”.
She asked if ministers were aware of these plans, if they have concerns about them, and if they have asked the Chinese for an explanation.
She asked Pennycook to confirm that the government plans to approve the application. She went on:
Labour promised a new relationship with China. Yet UK export goods are down 23%. Surrendering all security for Chinese trade was always a bad policy. But surrendering all security while exports plummet is frankly insanity.
She said the government should refuse the application.
Key events
-
Income tax bands and rates in Scotland, and how they compare with rest of UK
-
Nandy tells peers government made ‘mistake’ with its original AI copyright plan, confirming ‘reset’ under way
-
Labour’s tax and spend policies have been ‘nothing like’ what party proposed in its manifesto, former OBR chief tells peers
-
Shona Robison announces higher council tax bands for homes worth more than £1m in Scottish government’s budget
-
Cooper summons ambassador and announces further sanctions against Iran over protests crackdown
-
Plaid Cymru leader Rhun ap Iorwerth says 2026 can be year his party starts to create ‘fairer, more ambitious Wales’
-
Hillsborough law bill held up as ministers try to allay concerns individual intelligence officers would be exempt
-
Home Office TikTok account posting deportation footage accused of turning ‘brutality into clickbait’
-
Starmer tells cabinet cost of living is key problem for public, and ‘agile and active state’ needed to deliver policies to help
-
Starmer tells MPs he is open to social media ban for young people
-
Online abuse like that allowed by Grok AI can be ‘gateway to offline abuse’, MPs tell Ofcom
-
About 5,000 pubs have seen business rate valuations double, MPs told
-
New embassy ‘real threat’ to Chinese diaspora in UK, Labour’s Alex Sobel says
-
Labour MP Sarah Champion says she wants Labour to ‘stand up to bullies, not reward them’ in Chinese embassy decision
-
‘Frankly insanity’ – Tories claim plan revelations show why Labour should block Chinese ‘super-embassy’ plan
-
Minister responds to urgent question about report claiming Chinese ‘super-embassy’ would have ‘hidden chamber’ near sensitive cables
-
Polish president urges Starmer to offer Polish as modern foreign language for students in UK
-
71% of parents who had child benefit suspended after HMRC emigration fraud probe were legitimate claimants, MPs told
-
Louise Haigh says government should be ‘really, really tough’ in its approach to X
-
Davey says he would back partial ban on under-16s using social media, but claims Tory plan would go too far
-
Davey says, as opponent of assisted dying bill, he thinks it is ‘outrageous’ that Lords trying to block it
-
Davey says Labour have been ‘total failure’ on social care
-
Davey defends Liberal Democrats’ continuing use of X, saying there should be ‘strong liberal voice’ on social media
-
UK medical graduates to be prioritised for training places under new bill
-
Ed Davey sets out Lib Dem plan which he says could end 12-hour A&E trolley waits in England by end of year
-
‘If we tell public we can’t make anything work, why would they vote to keep us in charge?’ – Streeting
-
Wes Streeting criticises Labour colleagues who complain about Whitehall not being able to deliver
-
Home Office says illegal-working raids and arrests at record level
Income tax bands and rates in Scotland, and how they compare with rest of UK
Scotland has six bands of income tax. Here are the bands, and rates, for 2026-27, as set out in today’s Scottish government budget.
In the rest of the UK there are just three rates.
The personal allowance is £12,570, which means people do not pay any tax on that amount.
Above that, in 2026-27, people on the basic rate will pay 20% up to £37,700.
After that, they pay the higher rate, 40%, up to £125,140.
And, after that, they pay the additional rate, 45%.
Nandy tells peers government made ‘mistake’ with its original AI copyright plan, confirming ‘reset’ under way
Lisa Nandy, the culture secretary, has said that the government made a mistake when it set out a proposal for an opt-out copyright law for artificial intelligence (AI).
She was giving evidence to a Lords committee alongside Liz Kendall, the technology secretary, who said that the government was having a “genuine reset moment”.
The government infuriated almost the entire creative sector when, under plans to modernise copyright law so as to make it applicable to AI, it proposed that AI data systems should be able to use creative material unless artists specifically opted out of allowing this.
Artists, led by figures like Paul McCartney, argued that this was tantamount to theft, and that it could wreck the creative industries sector.
Giving evidence to the Lords communications and digitial committee, Nandy said:
One of the learning points for this government was that it was a mistake to start with a preferred model.
She said there were “challenges with the opt-out process that we hadn’t anticipated” and she said the government should not “rush in” to change.
And Kendall told the committee:
We are having a geniuine reset moment. We are genuinely trying to find a way forward.
She also said artists should have control over their work, and get rewarded for it.
In a thread on Bluesky, Thangam Debbonaire, who was shadow culture secretary before the election but who lost her seat to the Greens and who now sits in the Lords, said she was glad that a reset had happened at last. She also suggested that if she had become culture secretary, the “mistake” would have been avoided.
Point of information from me: in late 2023 I went to the then Shadow Sec of State Pete Kyle outlining the concerns and the need for a base line of transparency and for recognition and reward for creators. That was the policy of my Shadow DCMS team. #justsaying] #AIandcopyright
The Department of Health and Social Care has published the text of Wes Streeting’s speech to the IfG conference this morning. (See 9.45am.)
Labour’s tax and spend policies have been ‘nothing like’ what party proposed in its manifesto, former OBR chief tells peers

Heather Stewart
Heather Stewart is the Guardian’s economics editor.
Former Office for Budget Responsibility (OBR) chair Richard Hughes has been giving evidence to the House of Lords economic affairs committee.
He kicked off by apologising – again – for the inadvertent early release of the OBR’s key budget document, the economic and fiscal outlook, last month, which prompted his resignation.
Hughes also explained why he wrote the controversial public letter setting out the evolution of the watchdog’s forecasts, which sparked a row over whether Rachel Reeves had misrepresented the state of the economy.
In short, he was clearly fed up with the flurry of briefing in the run-up to the budget, as the Treasury rolled the pitch for an income tax rise and then reversed course. He said:
This was the first time in my 25 years working in fiscal policymaking in the UK and other places that the volume of speculation about the content of the OBR’s forecast was that great and that persistent.
I’d become concerned that that could create a damaging impression about the professionalism and integrity of the OBR in the way in which it conducts the preparation of its forecasts.
In particular, he was clearly cross about claims that a last minute change to the OBR’s projections had prompted the change of heart about income tax.
It was not the case that variation in the OBR’s judgments was driving policy. I thought it was very important to correct that misconception.
Hughes also underlined the gulf between election manifestos and government policy in the UK. He said:
The costed part of the Labour’s manifesto had them raising and spending around £8-9bn over the course of the government. If you look at their first budget they raised £40bn in tax and they spent £70bn, so it was nothing like what their actual fiscal plan turned out to be in government.
Shona Robison announces higher council tax bands for homes worth more than £1m in Scottish government’s budget
Shona Robison, Scotland’s finance secretary, has unveiled the Scottish government’s budget for 2026-27. Here are the key points.
That is an increase in these thresholds of almost 11% in two years and, as a result, even more people in Scotland can expect to pay less tax than if they lived in England, Northern Ireland or Wales. That is over 55% of Scots set to pay less income tax because they live in Scotland and have a Government led by the SNP.
The first year of a baby’s life is one of the most exciting times for any family, but we know this time can bring extra stress and costs too, and that is why this Government is delivering the strongest package of support for families with young children anywhere in the UK.
-
A private jet tax will be introduced at some point in the futre. And an airport departure tax will also be put in place by April next year, with a consultation on a potential exemption for the Highlands and Islands. Robison said:
I say to those who choose to travel by private jet in Scotland, you will pay and pay a fair share for that privilege and, in doing so, will be making Scotland a fairer nation.
-
Business rates will be cut for the lowest three valuations, and transitional relief of £184m will be introduced over the next three years, to compensate firms affected by the recent revaluation.
BBC Scotland has more details on its own live blog.
Cooper summons ambassador and announces further sanctions against Iran over protests crackdown
Yvette Cooper, the foreign secretary, has summoned the Iranian ambassador over the crackdown on protests in the country. In a statement to MPs, she also announced new sanctions on the regime.
She said:
The UK has already designated key players in Iran’s oil, energy, nuclear and financial systems.
Further measures will target finance, energy, transport, software and other significant industries which are advancing Iranian nuclear escalation, and we will work further with the EU and other partners to explore what additional measures might now be needed in response to developments.
Cooper did not give further details of the sanctions.
We have further coverage of what is happening in Iran on our Iran crisis live blog.
Plaid Cymru leader Rhun ap Iorwerth says 2026 can be year his party starts to create ‘fairer, more ambitious Wales’
Keir Starmer is not the only party leader pledging to focus on the cost of living. (See 2.56pm.) At the Plaid Cymru press conference in Cardiff this morning, Rhun ap Iorwerth, the party leader, said the Senedd elections this year would allow his party to create “a fairer, more ambitious Wales”.
He went on:
Whether that’s through fixing the NHS, helping Welsh-owned businesses grow, supporting families struggling with the cost of living crisis, or demanding fairness and standing up for Wales – a Plaid Cymru government will always do what’s right by our communities.
While momentum is with Plaid Cymru and support for our positive vision for Wales is greater than ever, we’ll work tirelessly over the coming four months to build trust and earn every single vote.
Ap Iorwerth said parties like Labour and the Conservatives “only see Wales as a stepping stone to Westminster”, and he said Reform UK was just “playing on people’s fears and stoking anger”.
Labour has been in power in Cardiff ever since the first elections in 1999 to what was then the Welsh assembly. But the most recent polls suggest Plaid Cymru and Reform UK are on course to be the biggest parties after the elections in May, and ap Iorwerth seems best placed to be the next first minister, not least because Plaid would have more potential coaliton partners than Reform UK.
Hillsborough law bill held up as ministers try to allay concerns individual intelligence officers would be exempt
The remaining stages of the Hillsborough law have been pushed back until next week amid concerns about how the duty of candour to be brought in would not apply to security services including MI5 and MI6, PA Media reports. PA says:
The so-called Hillsboroughl law – the public office (accountability) bill – will force public officials and contractors to tell the truth in the aftermath of disasters.
It takes its name from the Hillsborough disaster, after which families campaigned for years to get to the truth behind what caused the death of 97 football fans as a result of a crush at the FA Cup semi-final in Sheffield in 1989.
It was due to come before MPs on Wednesday and was expected to clear the final stages in the Commons, but Downing Street confirmed it had been pushed back to next week.
The PM’s spokesperson told journalists at the lobby briefing:
The Hillsborough law will change the balance of power in Britain and put a legal duty on officials, including those in the intelligence services, to respond openly and honestly when things go wrong.
Since we introduced the bill, we’ve worked with the families to make this duty as strong as it can possibly be whilst never compromising on national security.
This government will not bring forward legislation that would put the national security of the UK or lives at risk.
On Friday, we brought forward a series of amendments to address concerns that the bill did not apply to individual employees of the intelligence agencies.
But we’re determined to get this right.
According to a BBC report, the Hillsborough Law Now campaign wants the bill to apply to individual intelligence officers and is not happy about clauses in the current legislation that might protect them. Ministers are seeking a compromise.
Home Office TikTok account posting deportation footage accused of turning ‘brutality into clickbait’
A Home Office TikTok account posting footage of deportations and arrests set to dramatic music has been criticised for turning “brutality” into “clickbait”, Rajeev Syal reports.
Starmer tells cabinet cost of living is key problem for public, and ‘agile and active state’ needed to deliver policies to help
Keir Starmer told his cabinet this morning that the cost of living was the number one problem facing the UK.
And he told ministers that Labour would use “an agile and active state” to deliver on the policies that would help voters.
In a readout of the meeting, a Labour spokesperson said:
The political cabinet agreed the cost of living is the number one problem faced by the public and reaffirmed that tackling it is the number one priority for this Labour government.
Ministers discussed how many families across the country are still struggling following a sustained period of low wage growth since the financial crisis. Real wages rose more in this government’s first 10 months than in 10 years under the previous government.
The political cabinet agreed the need to show how an active government committed to boosting growth through investment, a modern industrial strategy and economic stability could restore hope across the country by delivering national renewal.
Ministers discussed the need to ensure the benefits of growth are felt by the whole country.
The prime minister said we need an agile and active state to deliver on our values and to make sure that our promise of renewal became reality.
Summing up, he said that he was proud that this is the most working-class cabinet ever, but he said that we should never forget that most people “do not go on the same journey” and he said it was “their voices that should be heard around this cabinet table”.
He referenced his brother and his sister and said that the government should be fighting every day for the people who have suffered under years of low growth through a lack of opportunities.