Rachel Reeves has dismissed claims that she faces a £50 billion 'black hole' in the public finances. She insisted that reports about massive funding gaps were exaggerated, saying many commentators were 'talking rubbish'. Concerns rose this week as long-term government borrowing costs hit a 27-year high, sparking fears of tax hikes or spending cuts ahead of the 26 November Budget. Reeves emphasised her commitment to two borrowing rules: that day-to-day spending must be funded from tax income by 2029–30, and that debt must fall as a share of national income within this parliament. While she ruled out tax rises on VAT, National Insurance, and income tax for working people, speculation continues over possibly targeting property, banks, and other sectors. She rejected talk of an IMF bailout, and promised to strike a balance between funding public services - particularly the NHS - and encouraging growth, saying there are already 'positive signs' in the economy. See https://news.sky.com/story/interest-rates-considerably-more-doubt-over-future-cuts-bank-of-england-governor-warns-13424292
Scottish first minister John Swinney has announced a series of measures in response to the crisis in Gaza, declaring that Israel’s actions 'constitute genocide'. The Scottish government has paused new awards of public money to arms companies supplying the Israeli military; Swinney also confirmed that Palestinian flags are now flying at government buildings. He urged the UK government to recognise the state of Palestine and withdraw from its free trade agreement with Israel immediately. Scottish Conservatives called the Gaza conflict a 'blight on humanity'; Scottish Labour’s Anas Sarwar condemned Benjamin Netanyahu as a 'war criminal'; Greens welcomed the action but sought a broader boycott; and Liberal Democrats pressed both governments to help more injured children from Gaza receive treatment in Scotland. Swinney insisted Scotland will continue offering practical humanitarian support within its devolved powers. See https://www.independent.co.uk/news/uk/crime/crown-prosecution-service-london-southwark-palestinian-cardiff-b2819723.html
New Ministry of Defence (MoD) figures reveal that despite a rise in applications and new recruits, the UK’s armed forces continue to shrink. In the 12 months to June 30, 13,520 people joined the regular forces, up 13% on the previous year, but 14,020 left, leaving the overall strength reduced by 500. While applications surged, the overall full-time strength of the army, navy, and RAF fell by 2,190 (2%), with the reserves down 1.2%. Personnel often cite poor housing conditions as a key reason for leaving, though the government has pledged investment to improve service homes. Defence leaders warn the decline threatens national security at a time of heightened global instability and looming threats from Russia. While ministers stress decisive action is being taken, critics argue that Britain’s defence capability remains dangerously undermanned.
Oil refinery workers rally outside Parliament
04 Sep 2025
Hundreds of workers from the Lindsey Oil Refinery in North Killingholme rallied outside Parliament this week, urging government action to save their jobs. The refinery, owned by Prax Group, went into liquidation in June after £75m of losses over three years, reducing the UK’s domestic fuel supply by at least 10%. Unite union leader Sharon Graham condemned the lack of a transition plan for oil and gas workers into green jobs, calling the situation 'a disgrace'. The Department for Energy Security acknowledged workers had been 'let down' but highlighted a proposed training guarantee to help staff move into the clean energy sector. Workers expressed deep concerns for their families, futures, and communities, warning that closure could devastate livelihoods. With 450 direct employees, 500 contractors, and thousands more in the supply chain affected, Unite argues the refinery is 'critical national infrastructure' whose future must be guaranteed. Officials confirmed that the Official Receiver has received bids for the site, but workers remain anxious for urgent decisive action.
Deputy prime minister Angela Rayner has admitted underpaying stamp duty on her £800,000 flat in Hove, blaming reliance on flawed legal advice. The property purchase in May was part-funded by selling her stake in a Greater Manchester family home, which had been placed in trust to support her disabled son. Fresh advice later revealed that complexities in the trust meant she should have paid the higher rate reserved for second homes. Rayner has now alerted HMRC, pledged to pay the outstanding tax, and referred herself to the prime minister’s standards adviser for investigation. Sir Keir Starmer defended his deputy, praising her transparency and family priorities, while critics - led by Conservative leader Kemi Badenoch - argued her position was untenable. The case presents political difficulties for Labour, as Rayner previously criticised Conservative ministers over integrity issues. While some voiced sympathy for her circumstances, many continue to press for her removal. Downing Street has confirmed that an independent inquiry will now examine the matter.
On 1 September, In what authorities suspect was Russian interference, Ursula von der Leyen’s plane was subjected to GPS jamming while landing in Bulgaria,. The flight, which landed safely using paper maps, highlighted the persistent threat of disrupting aviation traffic electronically. Russia has long been accused of such tactics, particularly in the Baltic and Scandinavian regions, though the Kremlin has denied involvement. The incident occurred during von der Leyen’s tour of eastern EU states, aimed at reinforcing solidarity with Ukraine amid ongoing Russian aggression. She said that the EU must keep up their sense of urgency, adding: ‘Putin has not changed, and he will not change. He can only be kept in check through strong deterrence.’ The event also served as a reminder of the risks faced by European leaders when showing visible support for Ukraine’s sovereignty and freedom.
Ukraine: Estonia, Lithuania, Latvia all willing to contribute troops for security guarantees
04 Sep 2025
Estonia’s president, Alar Karis, has said it is prepared to contribute troops to an international reassurance force that the ‘Coalition of the Willing’ plans to send to Ukraine as a post-ceasefire security guarantee. He said Estonia is not overly concerned that this would weaken NATO’s eastern flank, though discussions with alliance leaders continue. Lithuania and Latvia are also willing to participate, but Poland has declined, citing the need to protect its own borders. The reassurance force would be deployed only in non-contact areas within Ukraine. NATO secretary-general Mark Rutte noted that while NATO itself will not formally participate, the alliance is quietly discussing how to ensure resources are not overstretched. About 80,000 US troops are currently in Europe, but there could be a reduction in numbers as Washington’s foreign policy pivots towards the Indo-Pacific. The 'Coalition of the Willing' will meet again on 4 September; the security guarantees it will aim to provide for Ukraine following a truce are almost ready, but confirmation of US support is now needed.
A tragic derailment of Lisbon’s historic Glória funicular railway has left 16 dead and 21 injured, after a carriage broke free and crashed into a hotel. The popular railway, dating back to 1885 and carrying around three million passengers annually, has been at the center of debate about overtourism. Residents say it has shifted from serving locals to functioning primarily as a tourist attraction, placing heavy strain on the system. Investigators believe a snapped haulage cable caused the accident, though union leaders had previously raised concerns about braking difficulties. Maintenance protocols were reportedly in place, but questions are mounting as the outsourced maintenance contract had expired just days before the crash. The incident prompted national mourning, suspension of other funiculars in the city, and renewed scrutiny over balancing heritage preservation, safety, and the pressures of mass tourism in Portugal’s capital.