Labour MPs are discussing a potential leadership challenge to Starmer, triggered by frustration with No 10 and plans to raise income tax in the forthcoming Budget. Meetings among backbenchers reportedly explored candidates and timing, though senior figures urge caution and say no move is imminent.

New deputy leader Lucy Powell urges the PM and Chancellor to drop planned income tax rises, warning they would breach Labour’s manifesto and erode trust. She also backs scrapping the two-child benefit cap. Ministers hit back, saying circumstances have changed and Reeves has set out the case.

Authorities are searching for detainees mistakenly released, including an Algerian individual accused of misconduct who was due for removal; the error went unnoticed for a week. Another inmate was freed in a separate case. Deputy PM David Lammy faces questions over the errors.

Rachel Reeves signalled a possible basic-rate income tax rise in the Budget, the first since 1975, to raise up to £30bn. In a pre-Budget speech she said everyone will need to contribute and declined to renew Labour’s pledge not to raise income tax, NI or VAT. Economists suggest a 2p increase.