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Rishi Sunak has said he will introduce a new form of mandatory National Service for young people if the Conservatives win the general election.

In the first new policy announcement of the campaign, the prime minister has unveiled a plan that would see 18-year-olds given the choice of a full-time military placement for 12 months or a scheme to volunteer for one weekend a month for a year.

The placement would be selective – with tests used to decide who is eligible – and involve working with the armed forces or in cyber defence.

The voluntary option would see young people spending 25 days with organisations such as the police, the fire service, the NHS, or charities that work with older isolated people.

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Mr Sunak said the new model would provide “life-changing opportunities for young people” and allow them to learn “real world skills”.

Writing in the Mail on Sunday, the PM said: “To those who complain that making it mandatory is unreasonable, I say: citizenship brings with it obligations as well as rights. Being British is about more than just the queue you join at passport control.”

The Tory party has also suggested National Service would cut crime, saying research shows volunteering can increase social responsibility.

The specifics of the plan would be established through a new Royal Commission – a type of advisory committee set up to investigate significant issues.

Conservative sources said that the commission would look at possible non-criminal sanctions for any teenagers who refused to take part in National Service.

Details such as exemptions from the scheme would also be established through this body.

National Service came into force in January 1949, and meant all physically fit males aged between 17 and 21 had to serve in one of the armed forces for an 18-month period, with the period lengthened in 1950 to two years.

It ended in 1960, though the last national servicemen were discharged in 1963.

The Conservatives estimate the programme would cost £2.5bn a year by 2029/30 funded with cash previously used for the UK Shared Prosperity Fund and by cracking down on tax avoidance and evasion.

Responding, a Labour Party spokesperson said the announcement was “desperate” adding: “This is not a plan – it’s a review which could cost billions and is only needed because the Tories hollowed out the Armed Forces to their smallest size since Napoleon.”

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Rachel Reeves signals she will break tax pledges – and gives strongest indication she will lift two-child cap

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Rachel Reeves signals she will break tax pledges - and gives strongest indication she will lift two-child cap

Rachel Reeves has signalled she is going to break her manifesto tax pledges at the budget – and has given her strongest indication yet she will lift the two-child benefit cap.

The chancellor said the world has changed in the year since the last budget, when she reiterated Labour’s manifesto promise not to raise national insurance, VAT or income tax on “working people”.

“It would, of course, be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending,” she told BBC 5Live.

“I have been very clear that we are looking at both taxes and spending,” she added.

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The chancellor also gave her strongest indication yet she will lift the two-child benefit cap at the budget on 26 November, saying it is not right a child is “penalised because they are in a bigger family”.

Ms Reeves blamed poor productivity and growth over the last few years on the previous government “always taking the easy option to cut investment in rail and road projects, in energy projects and digital infrastructure”.

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She said she promised during the election campaign to “bring stability back to our economy”.

Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA
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Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA

‘I’ll always do what’s right for UK’

“What I can promise now is I will always do what I think is right for our country, not the easy choice, but the thing that I think is necessary,” she added.

The chancellor blamed the UK’s lack of growth under her tenure on global conflicts, trade and tariffs over the past year.

In a dig at Donald Trump, who has imposed wide-ranging tariffs on countries around the world, she said: “The tariffs. I don’t think anyone could have foreseen when this government was elected last year that we were going to see these big increases in global tariffs and barriers to trade.

“And I have to be chancellor in the world as it is not necessarily the world as I would like it to be. But I have to respond to those challenges, and that’s the responsible thing to do.”

Read more:
What tax rises and spending cuts will Reeves announce at budget?
Gordon Brown ‘confident’ of two-child benefit cap change

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‘Shameful’ that 4.5m children in poverty

‘Children should not be penalised’

The government has, so far, resisted lifting the two-child benefit cap, which means a family can only claim child benefits for the first two children.

But, it is a contentious subject within Labour, with seven of its MPs suspended two weeks after the election for voting to scrap it, while others are aware it will cost £2.8bn to do so.

Former Labour prime minister and chancellor Gordon Brown has been pushing for Ms Reeves, who says he is her hero, to lift it.

She said she saw Mr Brown at Remembrance Sunday, where they “had a good chat and we’ve emailed each other just today”, as she revealed they speak regularly.

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Labour’s child benefit cap dilemma

Ms Reeves added Mr Brown and Sir Tony Blair were big heroes of hers because they did so much to lift children out of poverty – the reason she went into politics.

Pushed on whether she would lift the cap, she said: “I don’t think that it’s right that a child is penalised because they are in a bigger family, through no fault of their own. So we will take action on child poverty.”

Mr Brown earlier told Sky News’ Mornings with Ridge and Frost he was “confident” of a two-child benefit cap change at the budget.

The latest YouGov polling found 59% of the public are in favour of keeping the cap in place, and only 26% thought it should be abolished.

Shadow chancellor Sir Mel Stride said: “Rachel Reeves has borrowed, spent and taxed like there’s no tomorrow – and she’s coming back for more because she doesn’t have a plan or the strength to stand up to Labour’s backbenchers, who are now calling the shots.

“My message is clear: if Rachel Reeves reduces government spending – including the welfare bill, she doesn’t need to raise taxes again. “

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Senate Committee unveils crypto market structure bill draft

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Senate Committee unveils crypto market structure bill draft

The US Senate Agriculture Committee has released its long-awaited discussion draft of crypto market structure laws, bringing Congress closer to passing legislation outlining how the crypto sector will be regulated.

Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker released the draft on Monday, which includes brackets around sections of the bill that lawmakers are still negotiating.

The bill aims to outline the limits of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto. Only Congress can set the agencies’ regulatory boundaries, but both have shared guidance to companies about crypto under the Trump administration’s deregulation push.

“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers,”  Boozman said.

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Booker said the discussion draft “would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”

The House passed a similar bill, called the CLARITY Act, to the Senate in July, which would give the CFTC a central role in regulating crypto.

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