The extended freeze on tax thresholds, introduced by Reeves, will push an additional 11 million people into paying the basic rate of income tax, including many pensioners, as the Chancellor commits to raising thresholds with inflation in 2028–29.

China has threatened to scale back its UK investment after accusations of sabotage at a British steel plant sparked a row with Labour, prompting the PM to move swiftly to protect jobs and reassure key stakeholders.

The Government is planning tighter scrutiny of foreign investment in vital industries, after warnings of possible sabotage at a major steel plant led union officials to block certain executives from critical operations.

Britain is exploring a nearer alignment with the EU on Brexit, including a potential defence pact, as ministers signal an adjusted stance while hopes for a swift trade deal with the US diminish.