Rachel Reeves plans a defence rise of under £2.5bn a year, far short of calls from ministers and military chiefs. With public finances tight, she is resisting a rapid path to 2.5% of GDP and urging efficiencies. Critics warn security risks are growing; No.10 faces pressure to go further.

The US president launched a naval operation to keep the Strait of Hormuz open, warning Tehran to allow tankers safe passage. Washington is seeking allied support. Energy prices edged higher on supply concerns as shippers and insurers reviewed risks on Gulf routes.

The PM plans to adopt selected EU regulations using “Henry VIII powers”, allowing ministers to update standards via secondary legislation. Backers say it will ease trade and reduce red tape; critics argue it sidelines Parliament and surrenders control. A bill is expected soon.

Downing Street has shelved plans to transfer sovereignty of the Chagos Islands to Mauritius after pushback from Washington. The US President called the proposal an “act of stupidity”, and security concerns over Diego Garcia led the PM to drop the enabling legislation.