UK Politics

The government has published witness statements in the now-collapsed case against two men accused of spying for China, following an extraordinary row over the saga. Three statements provided by deputy national security adviser Matthew Collins as part of the Crown Prosecution Service’s (CPS) case, which repeatedly describe China as a threat, were published as part of an attempt to draw a line under growing questions about the government’s evidence. The statements came after the CPS dropped the case, deeming the evidence did not show China was a threat to national security.But the evidence also reveals extraordinary new details about the allegations – including that one alleged China spy told another: “You’re in spy territory now.” Mr Collins also alleges in his statement that information was leaked to China about the Tory leadership race. Christopher Berry (left) and former parliamentary researcher Christopher Cash deny wrongdoing More

The government’s deputy national security adviser repeatedly described the “threat” posed by China in witness statements Sir Keir Starmer has been forced to publish as part of an extraordinary row over a collapsed spying case. Matt Collins said Chinese intelligence services were “highly capable and conduct large scale espionage operations” against the UK, which “threaten the UK’s economic prosperity and resilience and the integrity of our democratic institutions”.But he added that the government was “committed to pursuing a positive relationship” with Beijing. In the three witness statements, he also told prosecutors it was his assessment that the two men accused of spying for China acted in a way that was a danger to the “safety” and “interests” of the UK, handing over material that would be “useful” to the Chinese state. They deny any wrongdoing. The documents said ‘Chinese espionage operations threaten the UK’s economic prosperity and resilience and the integrity of our democratic institutions.’ More

Rachel Reeves has suggested higher taxes on the wealthy will be part of her Budget next month. The Chancellor was speaking in Washington on Wednesday, when she acknowledged she was looking at potential tax rises and spending cuts to fill a hole in her Budget which she said was partly due to the lingering impact of Brexit. It came amid speculation on the measures she will take to fill the estimated £50m blackhole, with a cut to the cash ISA allowance for savers reportedly among the ideas. When asked whether higher taxes on the wealthy would feature as part of her November 26 statement, Ms Reeves, who was in the US for the International Monetary Fund (IMF) meeting, said: “That will be part of the story. “In the budget next month, there won’t be a return to austerity. We know that we face a changing global environment in terms of the economy at the moment.”The autumn budget is scheduled for 26 November More

Tinkering around the edges at the next Budget risks another year of economic pain, a leading think tank has warned, urging the chancellor to take “bold action” in November. The Institute for Fiscal Studies (IFS) said it expects Rachel Reeves will need to find at least £22bn next month, thanks to rising borrowing costs, weaker growth forecasts and spending commitments made since spring. But the IFS said there was a “strong case” for the chancellor to go further, arguing that a £10bn buffer – the amount of headroom Ms Reeves previously left herself against her self-imposed debt rules – was not enough to ensure stability and would leave her “limping from one forecast to the next”. This funding, the think tank said, is likely to have to come from tax rises. While the think tank didn’t rule out spending cuts entirely, they said they would “pose challenges” due to a lack of parliamentary support for welfare cuts and the fact that departmental budgets were only agreed in June. Rachel Reeves is facing a ‘groundhog day’ Budget More

One part of the UK might escape Keir Starmer’s flagship smoking ban because of a key post-Brexit deal with the European Union, a minister has admitted. The government wants to ban smoking for an entire generation, potentially saving millions of lives by ensuring anyone currently aged 15 or younger will never be able to buy cigarettes legally. The proposals were first put forward by Rishi Sunak but abandoned ahead of the 2024 general election. Labour has enthusiastically backed the plan since coming to power last summer.But now, asked for a guarantee that it would apply in Northern Ireland – as well as England, Wales and Scotland – a minister could only say that was the government’s “intention”. The ban is designed to eventually make the UK smoke free (PA) More

Sir Keir Starmer has announced that he will publish key evidence in the China spying case trial that led to the collapse of the trial.The prime minister told MPs at the start of Prime Minister’s Questions (PMQs) that he would publish three witness statements that were shared with prosecutors as he maintained his position that the last government is to blame for the failure to prosecute.The abandonment of the prosecution of Christopher Cash, 30, a former parliamentary researcher, and Christopher Berry, 33, a teacher, has raised serious questions over national security and government policy towards China.Both men, who deny wrongdoing, had been accused of passing secrets to China, but charges against them were dropped last month, with the Crown Prosecution Service saying the case collapsed because the government’s evidence did not show that China represented a threat to national security at the time of the alleged offences.Sir Keir told MPs: “I’m deeply disappointed by the outcome. We wanted to see prosecutions.”Starmer: ‘I’m deeply disappointed by the outcome. We wanted to see prosecutions’ More

Margaret Thatcher had two extramarital affairs, a new book has claimed. The former prime minister is said to have enjoyed an “extracurricular friendship” with a close aide who would touch her knee during dinners, while also having two affairs throughout her life. Tina Gaudoin’s new book, The Incidental Feminist, claims that the Iron Lady had an affair early in her career as an MP and a separate affair with another politician. Author Tina Gaudoin says Thatcher ‘was far more sexy in person than she appeared to be’ More

Rachel Reeves has admitted she is looking at tax rises and spending cuts to fill a massive financial black hole in her Budget.Asked about the state of the UK economy as she prepares to deliver her statement in November, the Chancellor said “of course, we’re looking at tax and spending”.Ms Reeves was speaking before heading to the United States for a meeting of the International Monetary Fund (IMF).The IMF has warned inflation in the UK is set to surge to the highest in the G7 group of developed democracies in 2025 and 2026.And it increased its UK economic growth forecast for this year, but reduced its assessment for 2026 amid concerns over the labour market.Britain is set to be the second fastest growing G7 country this year, the IMF also said, with only the US growing faster.Asked about tax hikes in her Budget, the chancellor pinned the blame on Brexit, which she said has had a “severe and long lasting” impact on the economy. She is the latest top Labour figure to speak out publicly on the impacts of Brexit, after years in which the party feared being accused of betraying the result of the EU referendum if it was too overtly critical. She is the latest high profile Labour figure to criticise Brexit More