Rachel Reeves faces claims she exaggerated a “black hole” to justify £26bn in tax rises, despite the OBR advising there was no deficit and a £4.2bn surplus. Critics, including Kemi Badenoch, are calling for her to be sacked.

IFS says Reeves broke a manifesto pledge with £26bn tax rises and a move on national insurance, claiming growth was deprioritised. The PM rejects that, saying Labour kept its promise and that extra revenue is needed for the NHS, schools and measures to reduce child poverty.

Budget 2025 raises £26bn via 43 tax rises. Threshold freezes pull one in four workers into higher bands. The two-child benefit cap is scrapped, lifting welfare spending by £9bn. Pensions face a salary‑sacrifice cap and a new levy targets homes over £2m. The OBR apologises for a major leak.

Washington and a European ally say they’ve agreed the core of a new diplomatic framework after Geneva talks. The ally’s leader is ready to proceed with a European plan, and a former US president says a deal is “very close”. Sensitive issues remain and the other side’s stance is uncertain.