Reeves is urging financial regulators to permit greater risk-taking to stimulate economic growth, arguing post-crisis rules are overly restrictive and hinder progress.

Rachel Reeves plans to legislate the consolidation of council pension schemes into eight large ‘megafunds’ to unlock £80 billion for investment and end local authority management, rejecting radical options.

The US administration’s firm stance on Tehran, characterised by a “maximum pressure” policy, is prompting major Gulf states like Saudi Arabia and the UAE to seek closer ties with Iran for their own security.

European Union countries plan to significantly increase their defence spending, as heightened geopolitical tensions follow the recent US election outcome.