Economists have warned the Chancellor that raising the higher income tax rate would affect millions of workers, including teachers and police officers. Reeves is reportedly considering breaking Labour’s manifesto pledge to ease spending pressures.

Greater Manchester Police has admitted that officers shot and killed a man they believed to be the lone attacker in Heaton Park.

The US and UK are racing to seal high-value pacts on nuclear power, technology and Scotch whisky ahead of Mr Trump’s state visit, with ministers negotiating data-sovereignty terms for a new OpenAI centre, weighing billions in investment and managing the fallout from Peter Mandelson’s ambassadorship dispute.

Shares in Britain’s biggest banks tumbled on speculation that the chancellor may impose a profits surcharge to bolster strained public finances, extending a four-day FTSE 100 slide even as Labour sought to play down prospects of an extra levy.