Labour has unveiled a plan to expand reservoir capacity and upgrade water infrastructure, warning that without swift and decisive action backed by the PM, the nation could face daytime rationing within a decade.

The Chancellor aims to raise pension taxes to finance a major welfare policy reversal, amid mounting concerns over budget constraints.

Bonds and the pound slid following the PM’s failure to guarantee Reeves’s post, triggering speculation over her future despite a belated commitment to keep her in place.

Amid a growing backbench revolt, the PM’s welfare reforms faced a forced U-turn on benefits cuts, with Labour rebels compelling concessions and sparking fresh scrutiny in Parliament.