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Robert Jenrick calls for lower benefits bill to pay for tax cuts

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Is Reform UK's plan to get Farage into No 10 mission impossible?
PA Media Robert Jenrick speaking at the Centre for Policy Studies think tankPA Media

Conservative leadership hopeful Robert Jenrick has said he would reduce benefits spending in order to enable cuts to income tax.

In a speech, the former minister said unemployed claimants should face tougher sanctions if they refuse to take up suitable job offers.

He also vowed to tackle “misuse” of the sickness benefits system, arguing it was “medicalising normal human experiences”.

He added that reducing economic inactivity to pre-Covid levels could save the taxpayer £12bn, equivalent to cutting the basic rate of income tax by 2p.

The pledges largely echo proposals set out by the Tories ahead of the election.

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Speaking at the Centre for Policy Studies think-tank, Jenrick said there should be attempts to tighten eligibly for disability payments, which have risen sharply since the pandemic and are projected to rise further in coming years.

Although payments for the “genuinely unable” should continue, he said, “we should not be blind to the rise and misuse of our system”.

In an apparent reference to rising claims for mental health reasons, he added: “Too many indicators now show that we are medicalising normal human experiences.”

He also set out proposed changes for those on out-of-work benefits, including tougher penalties for people who fail to meet conditions attached to benefit payments, such as attending job centre meetings.

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Long-term claimants on work coaching schemes who remain jobless should face additional conditions after 12 months, rather than 18 currently, he argued.

He said returning both the disability and incapacity caseload to pre-pandemic levels would save £12bn, adding: “That would equate to almost 2p off the basic rate of income tax.”

Asked whether as leader he would commit the Tories to 2p cut to the basic rate of income tax at the next election, he replied that he was not seeking to write the party’s next manifesto, but rather to “set out what the choice is”.

A graph showing the predicted rise in disability benefit spending until 2028/9

Disability benefit payments are projected to rise sharply over the coming years, from £39bn in 2023-24 to £58bn in 2028-29.

The majority of this is estimated to come from extra spending on Personal Independence Payment (PIP), which is paid to working-aged people to support them with additional health costs, and can be paid to those in work.

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Separate income-related and out-of-work benefits can be topped up for people whose health condition is judged to restrict their ability to work.

The Tories promised to overhaul PIP payments before the election, but they were voted out of office before a consultation on the plans finished.

The suggested changes included replacing cash payments for those with mental health conditions with improved access to treatment.

The party also promised to overhaul PIP testing, but its election manifesto offered no details beyond promising a “more objective” approach.

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The Institute for Fiscal Studies think tank warned the idea was “far easier said than done,” noting that predicted savings from previous attempts to deliver savings to the benefits system had failed to materialise.

‘Labour’s worst nightmare’

The speech comes as Tory members receive their ballots for the leadership vote, with a winner due to be announced on 2 November.

Jenrick’s rival Kemi Badenoch, tipped as the favourite among party activists, has meanwhile sought to present herself as “Labour’s worst nightmare”.

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In an interview with the Daily Telegraph, the shadow business secretary, who was born in London but spent the majority of her childhood in Nigeria, said as leader she would nullify any Labour attempts to depict the Tories as racially prejudiced.

She also added she knew how to find Labour’s “weak points”, citing the move to charge VAT on private school fees as a “tax on aspiration”.

She also launched a swipe at Jenrick’s signature policy of leaving the European Convention on Human Rights (ECHR) in a bid to make it easier for the UK to deport failed asylum seekers.

Jenrick has argued the party faces a Brexit-style choice between leaving or remaining in the convention, on the basis that reforming it is a “fantasy”.

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But Badenoch told the newspaper: “Trying to recreate the referendum is not something people want to hear right now.”

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David Gauke calls for end to ‘bidding war’ between parties as he is appointed to sentencing review – UK politics live | Politics

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Prison population in England and Wales

David Gauke calls for end to ‘sentencing bidding war’ between parties as he is appointed to lead MoJ prison policy review

Good morning. Michael Howard was Conservative leader at one point, and was instrumental in ensuring that David Cameron succeeded him in that job, but perhaps he will be best remembered for his time as home secretary in the 1990s, when he gave a speech that summed up criminal justice policy for the next three decades. He told the Tory conference:

Prison works. It ensures that we are protected from murderers, muggers and rapists – and it makes many who are tempted to commit crime think twice … This may mean that more people will go to prison. I do not flinch from that. We shall no longer judge the success of our system of justice by a fall in our prison population.

And, around that time, the prison population in England and Wales started to soar. The election of a Labour government did not make any difference to this trend; Howardism prevailed.

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Prison population in England and Wales
Prison population in England and Wales Photograph: Commons library

Today, is that all going to change? As Rajeev Syal reports in our overnight story, to coincide with the 1,100 more criminals being let out as part of the early release policy introduced by Labour to deal with the jail overcrowding crisis, Shabana Mahmood, the justice secretary, is announcing a review of sentencing policy, which will be carried out by David Gauke, the former Conservative justice secretary. It will consider alternatives to sending people to jail.

The Ministry of Justice’s press release about the review is here. And the terms of refererence are here.

Mahmood has been giving interviews this morning and it has been notable that she has not been declaring war on the Michael Howard approach. The Ministry of Justice says that one of the principles behind the sentencing review is to “make sure prison sentences punish serious offenders and protect the public” and it says the government is committed to creating 14,000 more prison places. Although the review will consider “tougher punishments outside of prison”, the terms of reference also imply sentences should go up for offences against women and girls.

On the Today programme this morning Nick Robinson asked Mahmood to clarify how radical she was being. Did she just want to curb the rate at which the prison population was going up? Or did she want fewer people to be jailed, and Britain to stop being “the European leader in locking people up”? In her reply, Mahmood rather fudged it, implying she wanted both. She said:

Well, the problem is that the rate of increase is such that nobody can keep up with demand, and you risk running out of prison places … We reach critical capacity again by next summer. We cannot build our way out of this crisis.

To put it in context, I have HMP Birmingham in my constituency. That’s a very large, older Victorian prison. It has a capacity of over 1,000. We need to build nearly five of those every single year to keep up with demand. So we do have to manage demand into the prison system.

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But for a period it’s obvious that demand is going to go up, because we are going to have to build those 14,000 places. If we don’t, we run out of prison places earlier than we would expect.

The crisis is so acute that all of these things, building more supply, dealing with demand, have to be part of the solution.

But in the end, the sentencing review is our best opportunity to set a new trajectory where we can manage that demand, where I can make sure we never run out of prison places again, where there is a prison place for everyone who needs to be locked up, and where we expand the range of punishments outside of prison.

But Gauke himself has been a bit more willing to denounce Howardism. He has written an article for the New Statesman about the sentencing review and he says he wants to use it to end the “sentencing bidding war” between political parties. He says:

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For the last 30 years, there has been a sentencing bidding war between the political parties seeking to compete to be seen as the toughest on crime by promising ever-longer prison sentences. Rightly, the public expects criminality to be punished and prison is often viewed as the only effective means of punishment. But the capacity crisis in our prisons has meant that – at the very least – we have no choice but to pause the increase in the prison population. It is also sensible that we now look more broadly at the evidence and ask whether sentencing policy should be more fundamentally reformed. By next spring, we should have the answer.

There will be a lot more on this as the day goes on.

Here is the agenda for the day.

9.30am: Keir Starmer chairs cabinet.

11.30am: Downing Street holds a lobby briefing.

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After 12.30pm: Shabana Mahmood, the justice secretary, makes a statement to MPs about the sentencing review.

If you want to contact me, please post a message below the line (BTL) or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.

If you want to flag something up urgently, it is best to use social media. I’m still using X and I’ll see something addressed to @AndrewSparrow very quickly. I’m also trying Bluesky (@andrewsparrowgdn) and Threads (@andrewsparrowtheguardian).

I find it very helpful when readers point out mistakes, even minor typos (no error is too small to correct). And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.

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Shabana Mahmood says errors that affected first round of early prison releases in September now ‘ironed out’

Shabana Mahmood, the justice secretary, has said that mistakes that affected the first set of early prisoner releases under Labour should have been “ironed out” ahead of the second round take place today.

In an interview with Times Radio, she said that 37 prisoners were released by mistake when around 1,700 inmates were released early in September. She went on:

All 37 were returned to custody, and that operational part of the system actually ended up working exactly as it should.

But those mistakes have now been ironed out, and I’m confident that the releases taking place will now be exactly as we need them to be, and victims who are required to be notified will be notified.

Mahmood also said that the rates of recall for prisoners released early were “broadly in line” with usual prison releases.

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Speaking on LBC, she said:

We’ll do a statistics release in due course, as we normally would, on rates of recall and on reoffending in our prison estate.

What I can tell you is our early assessment is that the rates of recall and potential reoffending in the cohort that has been released as a result of the emergency release measures is broadly in line with what we would expect.

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Paul Brand from ITV says, if the government thinks that, by getting David Gauke to carry out the sentencing review, they will get the Conservatives support for it, they will probably be disappointed. He has posted this on social media.

Govt hopes by appointing Gauke – a former Tory Justice Sec (tho admittedly a centrist in today’s party) – they can get cross-party agreement on sentencing reform. But it’s likely Tory leadership candidates will say Labour being soft on criminals, and on the political debate goes.

David Gauke calls for end to ‘sentencing bidding war’ between parties as he is appointed to lead MoJ prison policy review

Good morning. Michael Howard was Conservative leader at one point, and was instrumental in ensuring that David Cameron succeeded him in that job, but perhaps he will be best remembered for his time as home secretary in the 1990s, when he gave a speech that summed up criminal justice policy for the next three decades. He told the Tory conference:

Prison works. It ensures that we are protected from murderers, muggers and rapists – and it makes many who are tempted to commit crime think twice … This may mean that more people will go to prison. I do not flinch from that. We shall no longer judge the success of our system of justice by a fall in our prison population.

And, around that time, the prison population in England and Wales started to soar. The election of a Labour government did not make any difference to this trend; Howardism prevailed.

Prison population in England and Wales Photograph: Commons library

Today, is that all going to change? As Rajeev Syal reports in our overnight story, to coincide with the 1,100 more criminals being let out as part of the early release policy introduced by Labour to deal with the jail overcrowding crisis, Shabana Mahmood, the justice secretary, is announcing a review of sentencing policy, which will be carried out by David Gauke, the former Conservative justice secretary. It will consider alternatives to sending people to jail.

Advertisement

The Ministry of Justice’s press release about the review is here. And the terms of refererence are here.

Mahmood has been giving interviews this morning and it has been notable that she has not been declaring war on the Michael Howard approach. The Ministry of Justice says that one of the principles behind the sentencing review is to “make sure prison sentences punish serious offenders and protect the public” and it says the government is committed to creating 14,000 more prison places. Although the review will consider “tougher punishments outside of prison”, the terms of reference also imply sentences should go up for offences against women and girls.

On the Today programme this morning Nick Robinson asked Mahmood to clarify how radical she was being. Did she just want to curb the rate at which the prison population was going up? Or did she want fewer people to be jailed, and Britain to stop being “the European leader in locking people up”? In her reply, Mahmood rather fudged it, implying she wanted both. She said:

Well, the problem is that the rate of increase is such that nobody can keep up with demand, and you risk running out of prison places … We reach critical capacity again by next summer. We cannot build our way out of this crisis.

To put it in context, I have HMP Birmingham in my constituency. That’s a very large, older Victorian prison. It has a capacity of over 1,000. We need to build nearly five of those every single year to keep up with demand. So we do have to manage demand into the prison system.

Advertisement

But for a period it’s obvious that demand is going to go up, because we are going to have to build those 14,000 places. If we don’t, we run out of prison places earlier than we would expect.

The crisis is so acute that all of these things, building more supply, dealing with demand, have to be part of the solution.

But in the end, the sentencing review is our best opportunity to set a new trajectory where we can manage that demand, where I can make sure we never run out of prison places again, where there is a prison place for everyone who needs to be locked up, and where we expand the range of punishments outside of prison.

But Gauke himself has been a bit more willing to denounce Howardism. He has written an article for the New Statesman about the sentencing review and he says he wants to use it to end the “sentencing bidding war” between political parties. He says:

Advertisement

For the last 30 years, there has been a sentencing bidding war between the political parties seeking to compete to be seen as the toughest on crime by promising ever-longer prison sentences. Rightly, the public expects criminality to be punished and prison is often viewed as the only effective means of punishment. But the capacity crisis in our prisons has meant that – at the very least – we have no choice but to pause the increase in the prison population. It is also sensible that we now look more broadly at the evidence and ask whether sentencing policy should be more fundamentally reformed. By next spring, we should have the answer.

There will be a lot more on this as the day goes on.

Here is the agenda for the day.

9.30am: Keir Starmer chairs cabinet.

11.30am: Downing Street holds a lobby briefing.

Advertisement

After 12.30pm: Shabana Mahmood, the justice secretary, makes a statement to MPs about the sentencing review.

If you want to contact me, please post a message below the line (BTL) or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.

If you want to flag something up urgently, it is best to use social media. I’m still using X and I’ll see something addressed to @AndrewSparrow very quickly. I’m also trying Bluesky (@andrewsparrowgdn) and Threads (@andrewsparrowtheguardian).

I find it very helpful when readers point out mistakes, even minor typos (no error is too small to correct). And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.

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UK to boost Ukraine funding using £2bn from seized Russian assets

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UK to boost Ukraine funding using £2bn from seized Russian assets

The UK government will give an extra £2.26bn ($2.93bn) to Ukraine, using the profits from seized Russian assets held in Europe.

It forms Britain’s contribution to a £38bn ($50bn) fund announced in June by members of the G7 group of leading economies.

Defence Secretary John Healey said the new money will help Ukraine bolster its frontline military equipment. He described it as “turning the proceeds of Putin’s own corrupt regime against him, by putting it into the hands of Ukraine”.

Chancellor Rachel Reeves said the aim was to release the money as quickly as possible.

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The funds will be made in the form of a loan – with the UK recouping the cost from profits of seized Russian assets – “within the correct legal framework”.

Reeves made it clear that the UK was not confiscating sovereign Russian assets in Europe, but using the profits and interest accrued from them.

Other G7 countries have pledged to do the same and are expected to finalise their contributions in the coming weeks.

The payments to Ukraine are expected to be made in tranches, rather than all at once. Some nations expect some of the money to go towards Ukraine’s reconstruction.

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But the UK government has said it is up to Kyiv on how it spends the UK’s contribution.

Healey said the money announced would allow Ukraine to purchase crucial military equipment, such as air defences and ammunition.

The £2.26bn is a one off payment. But it is an addition to £3bn already pledged by the government to fund Ukraine’s war effort.

So far, the UK has given more than £12bn in military aid and has promised to match that level of support in the future.

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The chancellor and defence secretary briefed reporters on the announcement sitting side by side. Reeves said it showed the UK’s support for Ukraine was “unwavering and will remain for as long as it takes”.

Their appearance together might also signal a positive relationship ahead of next week’s Budget, when the government will outline its spending plans on public services such as health, schools and police.

Reeves was asked about defence spending and repeated that the government had committed to spending 2.5% of GDP – though without a timetable. The chancellor said she was not going to discuss details of the forthcoming budget.

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Free school meals trial feeds 20,000 more children

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Is Reform UK's plan to get Farage into No 10 mission impossible?
Durham County Council A young school girl is being handed a plate of food from a serving counter by three smiling dinner ladies. She is turned away from the camera but has long brown hair and a blue school jumper. Two of the three dinner ladies wear white overalls and hair nets, while the third has a black apron on.Durham County Council

In County Durham, the pilot scheme automatically enrolled more than 1,700 children who were previously unregistered for free school meals

Thousands more children from England’s poorest households are eating a free school meal because of a new trial scheme.

The pilot project, run by the Fix Our Food research programme and involving dozens of councils, is identifying previously unregistered eligible children and automatically enrolling them.

Families who qualify for free school meals usually have to register their children to get a meal, even if they meet the criteria.

The Department for Education has encouraged all eligible families who are not automatically enrolled to register.

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The total number of children registered for free school meals in England is about 2.1 million, or 24.6% of the total pupil population.

Some families do not sign up for free school meals they are entitled to because of language barriers, not understanding the eligibility criteria or because of a stigma around sharing financial information.

In England, families are eligible to apply for free school meals if they are on universal credit and have a household income below £7,400 per year, after tax.

One estimate, by thinktank Policy in Practice, suggests there could be an additional 470,000 families who meet the free school meal criteria but are not registered.

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Sixth former Mirzan, from north London, has been registered for free school meals since he started Year 7.

Nathan Standley / BBC Mirzan looks directly into the camera in a close-cropped shot of his head and shoulders. He is wearing glasses and has medium-length wavy brown hair. He is wearing a dark coloured hoodie and stands in front of a blurred brick wall.Nathan Standley / BBC

Mirzan, 18, says missing a meal can leave pupils distracted in class

Having previously missed meals himself, he says he worries about what unregistered children are eating at school.

“Someone I knew in school, the only meal they’d receive that day would be their free school meal. So I know what impact it has,” he says.

“Instead of sitting there looking at the board trying to solve the algebra problem, you’re sitting thinking, ‘when I get home, what am I going to eat?’.”

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Researchers from Fix Our Food, a programme based in York, say they want the government to automatically enrol families who are missing out nationwide, by allowing them to opt out instead of having to opt in.

They say it saves families £500 per year in lunch costs.

Fix Our Food has helped about 20 local authorities implement the trial scheme so far.

About 20,000 eligible children who were previously missing out have been enrolled, according to surveys looking at the scheme’s impact, says Myles Bremner from the project.

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Nathan Standley / BBC Myles Bremner smiles into the camera in a head and shoulders shot. He is wearing a navy suit jacket over an open-collared white shirt. He stands in front of a blurred office background with staff working on desktop computers.Nathan Standley / BBC

Myles Bremner says the government has all the data it needs to help councils automatically enrol eligible families more easily

An additional 40 councils are working with Fix Our Food to look at whether they could also implement the scheme, he says.

Councils already taking part include:

  • County Durham, registering an additional 1,700 children
  • Wakefield, registering an additional 1,200 children
  • Lambeth, registering an additional 900 children
  • North Yorkshire, registering an additional 700 children
  • Middlesbrough, registering an additional 600 children

The additional registrations have also brought in millions of pounds in vital extra funding for schools via pupil premium grants, according to Fix Our Food.

Schools get £1,455 per primary pupil on free school meals or £1,035 per secondary pupil on free school meals, per year, for at least six years.

Marvin Charles, head teacher at City Heights E-Act Secondary Academy in Lambeth, south London, says he uses the additional funding for residential trips or extra tuition and mentoring.

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More than half of his pupils were already registered for free school meals – more than double the national average – but the automatic enrolment scheme found 15 more who met the criteria but had not been receiving them.

Nathan Standley / BBC Marvin Charles looks into the camera. He is stood in the canteen at his school, in front of the large serving hatch where his pupils have just been in for lunch. He is smiling and wearing a light green suit over a white shirt, with a yellow and brown tie.Nathan Standley / BBC

Marvin Charles says he’s pleased his students are now guaranteed the hot meal they are entitled to

But the scheme requires a lot of paperwork and digging through data for the councils who implement it to establish which families are eligible.

Fix Our Food says it wants the government to bring together datasets from different government departments to make the process quicker and easier.

MPs could soon be debating the issue in parliament, after it was introduced via a private members’ bill on 16 October.

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The government says it is looking at long-term solutions to child poverty but has not committed to rolling out the scheme nationwide.

A spokesperson said one of the first priorities was providing free breakfast clubs in primary schools, which is expected to roll out to the first 750 schools in April 2025.

All children in England get a free school meal up to Year 2.

In Wales and in London, all primary school children automatically get a free school meal but eligible secondary pupils still have to apply.

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In Scotland, all pupils up to P5, the equivalent of England’s Year 4, get a free school meal.

Families are eligible for free school meals after that point if they are on universal credit and earn less than £796 per month, or around £9,500 per year.

In Northern Ireland, the threshold is £15,000 per year, after tax.

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Suella Braverman sent government documents to private email 127 times

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Suella Braverman sent government documents to private email 127 times

Suella Braverman forwarded government documents to her private email accounts at least 127 times while she was attorney general in a potential breach of the ministerial code, it has emerged.

The revelation came after a Freedom of Information campaign by the Times newspaper.

The Conservative, who was in the Cabinet role under Boris Johnson, and the Attorney General’s Office (AGO) did not respond to requests for comment.

For security reasons, ministers are banned from sending sensitive emails and documents to their private accounts.

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As attorney general, the chief legal adviser to the government, Braverman dealt with highly sensitive matters of state.

But between 2021 and 2022, she forwarded 127 emails to her private accounts, with the emails containing at least 290 documents.

The contents of the emails are not yet publicly known.

The information was revealed after an 18-month transparency battle by the Times and a ruling by a tribunal judge.

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The AGO had refused to answer the Times’ Freedom of Information request about Braverman’s emails, saying it would be too costly to search her ministerial inbox.

In a ruling, Judge Simon Heald said “it appears to us that the AGO initially went about finding private email account details in a convoluted way”, which was “not a sensible way to start”.

He said the AGO could, “using the tools available in Outlook, answer the request with relative ease”.

During the period in question, Ms Braverman took the BBC to the High Court in a bid to stop the publication of a story about an abusive MI5 agent.

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She was one of those formally investigated by a leak inquiry when secret details of the court case were passed to the Daily Telegraph in January 2022.

She was later appointed home secretary, but had to resign when it emerged she had sent an official document to a parliamentary colleague using her personal email.

She later admitted sending official correspondence to her private email account on six more occasions.

After becoming home secretary once again, she was sacked last year by then Prime Minister Rishi Sunak for comments in a newspaper article accusing the Metropolitan Police of bias in the policing of protests.

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She said police applied a “double standard” by being tougher with right-wing demonstrations than pro-Palestinian ones.

Ms Braverman remains an MP and influential figure in sections of the Conservative Party.

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Jokey reform ideas removed from NHS consultation website

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Jokey reform ideas removed from NHS consultation website

Some members of the public have not taken Health Secretary Wes Streeting’s call for new ideas to improve the health service as seriously as he might have hoped.

Suggested ideas for NHS reform included putting beer on tap in hospitals, and placing Arsenal manager Mikel Arteta in charge.

The health department told the BBC officials were reviewing posts, and were removing or hiding material that was “clearly inappropriate or irrelevant”.

Ministers launched an online “national conversation” earlier, to inform a new 10-year plan to improve health services.

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In a social media post, Mr Streeting sought to laugh off some of the more irreverent suggestions.

Writing on X, he quipped that a recommendation for a Wetherspoons pub in every hospital had been “sadly vetoed by the chancellor”.

He also rejected a call for him to be fired out of a cannon in a bid to raise funds for the service.

The health department has promised that the listening exercise will “help shape” its new NHS strategy, to be published in spring next year.

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But some of the suggestions are less likely to be taken seriously than others.

Ideas that appear to have disappeared from the consultation website include putting lager Madrí on tap in all hospitals to “help patient morale”, and replacing Streeting as health secretary with a dog.

However suggestions to replace ambulance sirens with healthy eating advice, and install Thunderbird 2-style detachable patient compartments in ambulances, appear to still be online.

By late afternoon, the suggestions ranked most popular by users on the site included limits on sending out paper letters, and making it easier for GP surgeries to access digital records from hospitals.

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Other highly-ranked ideas include making it easier for non-British nationals to pay for treatment, and fines for missed appointments, an idea suggested and then dropped by former prime minister Rishi Sunak.

The health department has not confirmed which posts it is removing, but a spokesperson said “clearly inappropriate or irrelevant” material was being removed or hidden by the moderation team.

Ideas suggested by ministers at the launch of the consultation include making full medical records, tests results and letters from doctors available in the NHS App.

Currently the NHS App is limited because patients records are held locally by a patient’s GP and any hospitals they visit – and not all parts of the health service interact with the app.

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It is not the first time ministers have attempted to engage the public directly in matters of state.

The Conservative-Liberal Democrat coalition asked the public for suggested laws to abolish, and ran a Treasury-led public consultation on ideas to save money.

The most famous example of a listening exercise, however, remains the 2016 poll which saw the public vote to name a new polar research ship “Boaty McBoatface”.

The name, suggested by former BBC Radio Jersey presenter James Hand, achieved viral fame and became the runaway winner in a contest run by the Natural Environment Research Council.

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In a blow to online democracy, the ship was later named after broadcaster Sir David Attenborough, although one of its remotely operated sub-sea vehicles was named “Boaty” in recognition of the vote.

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Serious Fraud Office probe £112m Unite union hotel

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Serious Fraud Office probe £112m Unite union hotel

The Serious Fraud Office is investigating the construction of a hotel and conference centre owned by one of the UK’s biggest trade unions, the BBC can reveal.

Unite the Union spent a total of £112m of its members’ money on the project in Birmingham.

The building has since been valued at just £29m, suggesting £83m has been wasted.

A KC-led inquiry commissioned by Unite’s general secretary Sharon Graham also identified a missing £14m which has been described as a “mystery” and does not feature in the project’s final accounts.

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Unite has told the BBC the case is “now with the Serious Fraud Office” and Ms Graham would “leave no stone unturned in finding out if there was any financial wrongdoing”.

A KC-led inquiry commissioned by Ms Graham, who took over as Unite’s general secretary in 2021, also identified a missing £14m which has been described as a “mystery” and does not feature in the project’s final accounts.

An SFO spokesperson said: “In line with long established practice to avoid prejudice to law enforcement activity, we can neither confirm nor deny any investigation into this matter.”

The Birmingham project was intended to be an investment for Unite as well as saving the union money with hotel and conference costs.

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Construction was completed in 2020 and development includes a four star 195 bedroom hotel, a 1,000 person capacity conference centre, as well as Unite’s regional offices.

Employment tribunal documents reveal the union believes its ruling executive council had been misled as to the true value of the project.

In 2022 South Wales Police searched the union’s London headquarters as part of a separate bribery, money-laundering and fraud investigation.

The force has told the BBC that the investigation is ongoing.

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A Unite spokesperson said: “It is important to note that Sharon Graham has had to endure repeated attacks by those with much to lose since she launched these inquiries, from both inside and outside the union.

“These have been sickening and horrendous but she has remained determined to get to the truth.

“We are also pursuing legal claims to recover money lost to the union and the general secretary has put safeguards in place to ensure that such things can never happen again.”

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