Tag: News Story

STORY

Prime Minister Andy Burnham has ruled out changes to stamp duty at the Government’s next Budget, despite calls from some economists for the tax to be reformed or abolished. He said the Government would instead concentrate on making the wider tax system fairer.

Stamp duty raised £16.6 billion in the most recent financial year. Critics of the tax argue that it can discourage people from moving home and reduce mobility in the labour market.

Burnham said there could be modest tax increases to meet spending pressures, including costs linked to an ageing population and higher defence expenditure. Labour’s 2024 manifesto ruled out increases to income tax, National Insurance and VAT.

STORY

The Environment Agency has begun criminal proceedings against Southern Water Services Limited and seven former employees following a long-running investigation. Four former employees, including former chief executive Matthew Wright, face a charge of conspiracy to defraud the Environment Agency and water regulator Ofwat.

It is alleged that between January 2012 and December 2017 the defendants implemented artificial “no-flow” events at wastewater treatment works operated by Southern Water. The Environment Agency claims this was intended to manipulate the Operator Self-Monitoring compliance regime, under which water companies take samples and report the results to the regulator. The conspiracy charge carries a maximum sentence of ten years’ imprisonment.

Southern Water will separately face charges relating to alleged breaches of environmental permits connected with the same conduct, while three additional former employees face charges linked to failures to comply with permits. The proceedings will continue at Medway Magistrates’ Court after the Administrative Court confirmed the Environment Agency’s power to bring the prosecution. All charges remain allegations and the proceedings are ongoing.

STORY

The National Armaments Director (NAD) Group has awarded a contract to develop a hypersonic target, strengthening UK and allied missile defence capabilities.

• The programme supports UK and allied missile defence, with a live flight demonstration planned for 2027 at the MOD Hebrides Range
• Bowline strengthens UK sovereign hypersonics expertise and supports international collaboration through AUKUS Pillar 2

The Ministry of Defence has awarded a £20 million contract to Lockheed Martin UK to deliver Project Bowline, a hypersonic target programme designed to support the development and testing of missile defence systems against advanced threats. The project is a key part of the UK’s contribution to allied air and missile defence, with a live flight demonstration planned for 2027 at the MOD Hebrides Range.

The contract awarded by NAD Group will support around 63 jobs in Bedfordshire and inject £2 million into the supply chain, with over a third going directly to UK SMEs. It also marks the MOD’s return to hypersonic target development after more than a decade, rebuilding the sovereign capability in advanced targets.

National Armaments Director Rupert Pearce said:

Delivering Project Bowline will help ensure the UK stays ahead of rapidly evolving hypersonic threats. By working with our AUKUS partners and investing in advanced missile technology in the UK, we strengthen our national arsenal, boost a key sector in our economy, and support our ability to deliver effective missile defence.

Under the contract, Lockheed Martin UK – at its advanced manufacturing facility – will design, manufacture, qualify and test a hypersonic target, a vehicle designed to represent high-speed threats capable of travelling at speeds reaching above Mach 5.

The programme will culminate in a first flight demonstration, enabling the future assessment and qualification of next‑generation missile defence systems, including sensors and interceptors. Bowline has been awarded through the MOD’s Science and Technology Oriented Research and Development in Missile Defence (STORM) contract managed by the UK Missile Defence Centre and supports innovation in defence capability.

Project Bowline builds on international collaboration under the AUKUS Pillar 2 Hypersonic Flight Test and Experimentation (HyFliTE) Project Arrangement, where the UK, United States and Australia are working together to accelerate hypersonic and counter‑hypersonic technologies. The US and Australia will provide critical contributions including flight test and research expertise and technical peer review.

The programme is a prime example of the NAD Group’s core role in developing, delivering and sustaining the UK’s national arsenal.

Bowline will enhance sovereign expertise in hypersonic systems, including modelling, manufacturing and testing, while strengthening partnerships across industry, small and medium enterprises and academia. This reflects a continued focus on accelerating capability delivery, deepening international collaboration and supporting UK economic growth through defence investment.

Paul Livingston, Chief Executive of Lockheed Martin UK, said:

For more than 85 years Lockheed Martin has partnered with the UK to help address complex defence and security challenges. The Project Bowline contract and programme highlight the strength of collaboration between government, UK industry, and international partners through the UK Missile Defence Centre, and will support sovereign innovation across the UK, capitalise on existing UK industry capability, and contribute to a more resilient and effective sovereign missile defence capability.

STORY

The families of the three girls murdered in the Southport attack have accused Axel Rudakubana of attempting to manipulate the system after he was transferred from HMP Belmarsh to Broadmoor high-security psychiatric hospital. Their representatives said the development had caused further distress as the second anniversary of the attack approached and requested an urgent meeting with the relevant authorities.

Rudakubana was given a life sentence with a minimum term of 52 years for murdering Alice da Silva Aguiar, Bebe King and Elsie Dot Stancombe, and attempting to murder eight other children and two adults at a dance workshop in Southport. He was moved to Broadmoor after clinical assessments concluded that he could not be managed safely in a prison environment because of his mental health.

The Ministry of Justice said the transfer did not alter Rudakubana’s sentence and that he would remain securely detained. Prisoners transferred under the Mental Health Act receive treatment in a secure hospital and may be returned to prison if treatment is no longer required or their condition allows them to be managed safely in custody.

STORY

Angela Rayner has refused to return the £16,876 ministerial severance payment she received after resigning as Deputy Prime Minister and Housing Secretary over the controversy surrounding unpaid stamp duty on her Hove property. The Labour MP has now returned to the Cabinet as Housing Secretary under Prime Minister Andy Burnham, prompting accusations that she is benefiting from arrangements she previously criticised when Conservative ministers received similar payments.

Asked on BBC Radio 5 Live whether she would repay the money, Rayner said she would not, arguing that she had worked in Government for a substantial period and then remained outside it for almost a year. She contrasted her position with Conservative ministers who returned to office within weeks of receiving severance payments. Rayner previously said it showed a “staggering lack of shame” for former Conservative ministers to accept large payouts after leaving office, while Labour later backed proposals requiring some returning ministers to repay the corresponding portion of their severance

STORY

Prime Minister Andy Burnham has spoken with Canadian Prime Minister Mark Carney, who congratulated him on his appointment. Downing Street said the two leaders discussed cost-of-living announcements made during Burnham’s first days in office.

They also discussed the UK-Canada relationship and Canada’s decision to join the Global Combat Air Programme as an observer. The call covered defence collaboration on strategic projects.

The leaders discussed the Defence, Security and Resilience Bank and the Multilateral Defence Mechanism. Downing Street said they also touched on the growing trade relationship between the two countries.

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The Council of the EU has agreed its partial negotiating position on financial support for migration, border management, visas and internal security for 2028 to 2034. The three regulations form part of the EU’s next long-term budget package.

The Council said the funds would support implementation of the pact on migration and asylum, management of external borders and visa processing, and action against internal security threats. The mandate excludes financial envelopes and horizontal issues still being discussed in broader budget talks.

The position will be used in negotiations with the European Parliament. The Council said support in these areas would be delivered through national and regional partnership plans prepared by member states.

STORY

Chancellor John Healey has addressed Treasury staff after taking office under Prime Minister Andy Burnham. He used the speech to set out five priorities for the department and paid tribute to former Chancellor Rachel Reeves.

Healey said his priorities were fiscal discipline, growth in every postcode, backing British industry and apprenticeships, wealth creation, and affordability for households. He said the Treasury would meet the Government’s fiscal rules.

The speech followed Burnham’s Cabinet appointments earlier in the week. Healey has taken charge of the Treasury after previously serving as Defence Secretary.

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Planning Minister Matthew Pennycook has directed Basildon Council to make progress on its local plan after Government concerns about the age of the authority’s planning framework. Basildon has not adopted a local plan since 1998.

The minister’s intervention letter requires the council to begin Regulation 19 consultation by 10 August. The council has also been directed to submit the plan for examination by 31 December 2026.

Basildon councillors have criticised the intervention and backed a motion calling for the Government to revoke its housing target for the area. The council also sought a commitment that new housing should be matched by infrastructure and public services.

STORY

Prime Minister Andy Burnham is visiting Scotland today for meetings with Scottish First Minister John Swinney and Welsh First Minister Rhun ap Iorwerth. Downing Street said the visit forms part of the Prime Minister’s first week in office.

The meetings are taking place in Glasgow before Burnham attends the opening ceremony of the 2026 Commonwealth Games. He is expected to discuss devolution, economic growth and the cost of living with the devolved leaders.

Downing Street said Burnham is also expected to visit Northern Ireland in August. The Government said he will meet the First Minister and deputy First Minister during the wider UK tour.