Hezbollah launched a barrage of rockets from Lebanon overnight, landing much deeper into Israel than in previous attacks.

Residential buildings in Kiryat Bialik were set alight and some people were injured. Rescue teams arrived at the scene to treat the wounded, while Israeli security forces cordoned off the area.

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Angela Rayner has insisted she gave “nothing” to Lord Waheed Alli in return for the wealthy Labour peer’s generous donations, including a five-day stay in a Manhattan apartment and thousands of pounds of free clothing.

The UK deputy prime minister told the BBC as Labour’s annual conference kicked off on Sunday that politicians from all parties had accepted gifts “for years” and that “all MPs do it”.

“I promised nothing and gave him nothing in return,” she said of Alli’s donations.

The media tycoon has been at the centre of a furore that has overshadowed the run-up to Labour’s first conference as a party of government in 15 years.

Alli has given thousands of pounds of gifts including free clothing to seven sitting cabinet ministers including Rayner and Prime Minister Sir Keir Starmer.

Starmer initially failed to declare clothing gifts from Alli worth £16,200 to the prime minister personally and £5,000 to his wife.

Rayner said she understood that the general public was “angry and upset” and said that the rules had to apply to everyone in politics. “If there is a national debate about how to fund politics . . . let’s do that.”

Both Rayner and chancellor Rachel Reeves declared gifts of thousands of pounds of clothing from donors in parliament’s register of interests as generic support for their political work, the Financial Times revealed.

On Friday, Labour officials finally admitted that a £3,550 donation from Alli to Rayner in June consisted of work clothing.

They also confirmed that three other donations worth £17,650 from Alli had been spent at least in part on clothes. 

In an attempt to shut down the scandal, the party pledged on Friday that Starmer, Reeves and Rayner would not take any free clothing in future.

The Sunday Times today raised fresh questions, reporting that Rayner registered a five-day stay at Alli’s luxury Manhattan apartment for the new year but did not lodge the fact that her friend Sam Tarry stayed with her.

She said on Sunday that this did not break the rules. Her team said the presence of Tarry — who was a Labour MP at the time — did not need to be reported because Alli did not know he was there. 

Asked why she stayed in the flat for free, she told the BBC: “As friends do, a friend allowed me to stay . . . people do stay at other people’s apartments.”

On Sunday morning Rayner, who is also housing secretary, will promise a package of measures to ensure “decent homes for all” when she addresses the Labour conference in Liverpool.

A man has been arrested over chants allegedly supporting Hamas during a protest in north London on Friday.

The 27-year-old was arrested on Friday after a video circulated online showing a man allegedly shouting through a megaphone at a pro-Palestine demonstration in Swiss Cottage.

The suspect, who remains in police custody, was first held on suspicion of inciting racial hatred and then “further arrested” on Sunday on suspicion of inviting support for a proscribed organisation under the Terrorism Act 2000, the force said.

The UK government has designated Hamas as a terrorist organisation.

Among the chants heard in the video were “I love the 7th October” and “I love an organisation that starts with H”.

This appears to be a reference to the Hamas attack on Israel last year which killed about 1,200 people with 240 people taken hostage.

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Economists are rarely ever unanimous. But one matter on which they almost all agree is the need for carbon pricing. Their support is paying off. The principle that polluters should pay is in increasing force around the world. In an interview with the Financial Times last week, Ngozi Okonjo-Iweala, the head of the World Trade Organization, said that globally there were 78 different carbon pricing and taxation mechanisms. They cover close to one-quarter of international emissions, up from just 5 per cent in 2010, according to the World Bank.

The expansion of carbon pricing policies is welcome. They provide an incentive for polluters to shift to cleaner energy sources and to invest in green technology and efficiency. Emissions covered by the EU’s Emissions Trading System — which combines a cap on emissions with a mechanism to trade allowances — have fallen by close to 40 per cent since 2005. China is looking to expand its ETS; Turkey and Brazil plan to introduce one, too. But as more nations place a price on their carbon emissions, whether through taxes, trading schemes or indirectly via regulation, global trading tensions are also rising.

The EU’s carbon border adjustment mechanism, launched last year, is a case in point. Eventually it will require exporters to the bloc, who pay lower or no carbon prices at home, to pay a levy linked to the EU’s carbon price. The idea is to level the playing field for European manufacturers that pay the ETS. But it is already triggering complaints from trading partners — in particular, that it burdens poorer nations with additional costs and administration. Countries could levy equivalent carbon taxes at home, to avoid the border charges, but they struggle to do so politically, or think it is unfair they should have to.

Okonjo-Iweala says the answer is a global carbon price. That is logical. Aligning carbon price regimes would reduce trade frictions, and alleviate concerns around arbitrage, where heavy emitters move to areas with lower prices. Reaching an agreement on prices, let alone regulatory equivalence, at an international level, however, will not be easy — or fast. And given signs that the world is warming faster than expected, carbon prices swiftly need to grow wider, and higher.

There is a way forward. First, more governments should realise that hesitancy over carbon pricing is increasingly futile. The world is shifting away from fossil fuels, and green subsidies are expensive. Politicians can build support at home by using revenues from carbon taxes to cushion their impact, reduce debt, or raise public investment. Income from carbon pricing schemes globally surpassed $100bn last year, a record.

Second, as more countries adopt their own carbon pricing, trade distortions and threats to competitiveness will ease. Indeed, the potential additional cost of trading with the EU, has jolted others into action. Given its prominence in global trade, expanding the bloc’s CBAM to more industries, will in turn help widen the scope of carbon pricing elsewhere. The US is now exploring carbon pricing on its imports, too.

Third, however fraught, efforts to synchronise global trade and climate policy should continue. Nations will want to adopt bespoke carbon measures, but over time they can be clubbed together. Multilateral institutions can champion this bottom-up process. That means providing expertise and administrative support to developing nations seeking to develop carbon regimes, and acting as a forum to nudge the biggest economies towards alignment.

Carbon pricing is just one part of the large policy arsenal needed to tackle global climate change. But failing to build on recent momentum would be a missed opportunity.