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Cast your mind back to the heady days of early July, as a beaming Sir Keir Starmer swept into Downing Street to a cheering crowd and the promise of “change”.

Britain’s seventh ever Labour prime minister had won a landslide that deservedly drew parallels between himself and the party’s most successful election winner Tony Blair.

Yet on Tuesday, just over 50 days on from that moment, Sir Keir was very clear that the ballot box victory was where the parallel ends.

Politics live: Starmer offers biggest clue yet as to where possible tax rises may hit

Forget New Labour’s “things can only get better” mantra. In his first major Downing Street speech, this prime minister was clear that in his Britain “things can only get worse – for now”.

Armed with a new slogan across the lectern – “fixing the foundations” – Sir Keir set out the parlous state of the public finances, the dangerous populism that had flourished under the Tories and corroded our communities, triggering the recent riots, and the erosion of trust between government and the governed.

He reiterated his commitment to put government “back into the service of working people” and to repair “broken Britain”. But, he said, it would take time, be “painful” and involve unpopular decisions.

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In a nutshell, this was a prime minister preparing the ground for tax rises and spending cuts in the autumn – all those questions avoided during the general election, now answered up front from the vantage point of being in government with a massive majority.

The autumn budget was “going to be painful”, he told an audience of members of the public he had met during the election campaign.

“We have no other choice, given the situation we’re in,” he added. “Frankly, things will get worse before they get better.”

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PM: Budget will be ‘painful’

For all the talk of doing politics differently, Sir Keir was rolling out a well-worn political strategy – blame the previous government for the terrible state of the country in order to create some space to do unpopular things.

His calculation is that the public will blame the past government, not his, particularly if – as he highlighted in his speech – voters can see the new administration is getting on with its priorities around growing the economy, green energy, housebuilding, or cutting NHS waiting lists by striking public sector pay deals.

“Come the autumn, if we can show we are getting on with it, we hope it will buy us some time,” said one senior government figure. “What people will want is progress checks.”

But, as the controversy over the scrapping of the universal winter fuel allowance payments to pensioners shows, these difficult decisions will face a backlash.

The Starmer administration is already under fire from some on its own side to amend the policy and that noise is unlikely to dim as the increased energy price cap kicks in over the autumn and winter.

And what of tax rises? Sir Keir told me in our Sky News Leaders’ Debate he had “no plans” to raise taxes beyond what was outlined in the manifesto.

Now he says that what Labour characterise as a £22bn “black hole” in the public finances – caused in part by Labour’s decision to settle on public sector pay recommendations – leave him with few options.

But in reality, questions around tax rises and spending cuts, given the state of the public finances, were raised repeatedly in the election, and Labour avoided answering them.

Rishi Sunak is now already arguing that Labour are doing what he warned they would in the election – put up taxes.

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‘Hunt lied over state of public finances’

This will undoubtedly be the running battle of the autumn. On Tuesday, Sir Keir ruled out raising taxes on “working people”, in the shape of income tax, national insurance of VAT.

But he left no doubt in my mind tax rises were on the way as he signalled that “those with the broadest shoulders” should carry the burden, paving the way for more levies on the wealthy, and perhaps big business too.

Sir Keir might be successful politically in pinning the blame on the Tories. But he does not want to just have a political win. He wants to restore trust in politics.

For now, voters might be forgiven for thinking it is more of the same – the promise of change before the election only to then witness a blame game in which politicians trade blows and the public have to take the political pain after the win.

Things can only get worse is indeed, as Sharon Graham of Unite put it after Sir Keir’s speech, a “bleak picture” of Britain. But it is now the opening chapter of this Labour administration.

For a country running out of patience, Sir Keir will need to show some progress on his missions too. Labour won on a slogan of change, not more of the same.

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Eight arrests in connection with two separate terrorism investigations

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Eight arrests in connection with two separate terrorism investigations

Eight men have been arrested by the Metropolitan Police in two unconnected terrorism investigations.

In one operation on Saturday, counter-terror officers arrested five men, four of whom are Iranian nationals. All are in police custody.

The Met said the arrests related to a “suspected plot to target a specific premises”.

In an update shortly after midnight, the force said: “Officers have been in contact with the affected site to make them aware and provide relevant advice and support, but for operational reasons, we are not able to provide further information at this time.”

It added officers were carrying out searches at a number of addresses in the Greater Manchester, London and Swindon areas in connection with the investigation.

It said those detained were:

• A 29-year-old man arrested in the Swindon area
• A 46-year-old man arrested in west London
• A 29-year-old man arrested in the Stockport area
• A 40-year-old man arrested in the Rochdale area
• A man whose age was not confirmed arrested in the Manchester area.

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Commander Dominic Murphy, head of the Met’s Counter Terrorism Command, said: “This is a fast-moving investigation and we are working closely with those at the affected site to keep them updated.

“The investigation is still in its early stages and we are exploring various lines of enquiry to establish any potential motivation as well as to identify whether there may be any further risk to the public linked to this matter.

“We understand the public may be concerned and as always, I would ask them to remain vigilant and if they see or hear anything that concerns them, then to contact us.

“We are working closely with local officers in the areas where we have made arrests today and I’d like to thank police colleagues around the country for their ongoing support.”

Terror arrests in separate investigation

Police also arrested three further Iranian nationals in London on Saturday as part of another, unrelated counter terror investigation.

The suspects were detained under section 27 of the National Security Act 2023, which allows police to arrest those suspected of being “involved in foreign power threat activity”.

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Home secretary Yvette Cooper said in a statement: “I want to thank the police and our security services for the action they have taken to keep our country safe.

“Protecting national security is the first duty of government and our police and security services have our strong support in their vital work.”

She added: “These are serious events that demonstrate the ongoing requirement to adapt our response to national security threats.”

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Pictured: Boy killed in Gateshead industrial estate fire – 14 children arrested on suspicion of manslaughter

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Pictured: Boy killed in Gateshead industrial estate fire - 14 children arrested on suspicion of manslaughter

Tributes have been paid to 14-year-old Layton Carr who died in a fire at an industrial estate.

Eleven boys and three girls, aged between 11 and 14 years, have been arrested on suspicion of manslaughter after the incident in Gateshead on Friday. They remain in police custody.

Drone view showing the aftermath of a fire at Fairfield industrial park at Bill Quay, Gateshead
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Police were alerted to a fire at Fairfield industrial park in the Bill Quay area

Firefighters raced to Fairfield industrial park in the Bill Quay area shortly after 8pm, putting out the blaze a short time later.

Police then issued an appeal for a missing boy, Layton Carr, who was believed to be in the area at the time.

In a statement, the force said that “sadly, following searches, a body believed to be that of 14-year-old Layton Carr was located deceased inside the building”.

Layton’s next of kin have been informed and are being supported by specialist officers, police added.

Pic: North News and Pictures
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Layton has been described as a ‘beautiful soul’

A fundraising page on GoFundMe has been set up to help Layton’s mother pay for funeral costs.

Organiser Stephanie Simpson said: “The last thing Georgia needs to stress trying to pay for a funeral for her Boy Any donations will help thank you.”

One tribute in a Facebook post read: “Can’t believe I’m writing this my nephew RIP Layton 💔 forever 14 you’ll be a massive miss, thinking of my sister and 2 beautiful nieces right now.”

Another added: “My boy ❤️ my baby cousin, my Layton. Nothing will ever come close to the pain I feel right now. Forever 14. I’ll miss you sausage.”

A third said: “Rest in peace big lad such a beautiful soul taken far to soon my thoughts are with you Gee stay strong girl hear for u always.”

Read more from Sky News:
Eight arrests in connection with two terrorism operations
Compensation scheme scrapped for child sexual abuse victims

Detective Chief Inspector Louise Jenkins, of Northumbria Police, also said: “This is an extremely tragic incident where a boy has sadly lost his life.”

She added that the force’s “thoughts are with Layton’s family as they begin to attempt to process the loss of their loved one”.

They are working to establish “the full circumstances surrounding the incident” and officers will be in the area to “offer reassurance to the public”, she added.

A cordon remains in place at the site while police carry out enquiries.

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Child sexual abuse victims ‘denied justice’ after compensation scheme scrapped over cost

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Child sexual abuse victims 'denied justice' after compensation scheme scrapped over cost

Sky News can reveal that the government has rowed back on a national compensation scheme for victims of child sexual abuse, despite it being promised under the previous Conservative administration.

Warning – this story contains references to sexual and physical abuse

A National Redress Scheme was one of 20 key recommendations made by the Independent Inquiry into Child Sexual Abuse (IICSA), but a Home Office report reveals the government has scrapped it because of the cost.

Marie, who is 71, suffered alleged sexual, physical, and emotional abuse at Greenfield House Convent in St Helens, Merseyside, between 1959 and 1962, and is still fighting for compensation.

Greenfield House Convent, where Marie says she was abused
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Greenfield House Convent, where Marie says she was abused

As soon as she arrived as a six-year-old, Marie says her hair was cut off, her name changed, and she experienced regular beatings from the nuns and students.

She claims a nun instigated the violence, including when Marie was held down so that her legs were “spread-eagled” as she was sexually abused with a coat hanger.

Merseyside Police investigated claims of abuse at the convent, but in 2016, a suspect died before charges could be brought.

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Marie has received an apology from the Catholic body that ran the home; she tried to sue them, but her claim was rejected because it was filed too long after the alleged abuse.

Marie is still fighting for compensation for the abuse she suffered
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Marie, 71, is still fighting for compensation for the abuse she says she suffered as a child

In February, ministers said the law would change for victims of sexual abuse trying to sue institutions for damages, which was a recommendation from the IICSA.

Previously, people had to make a civil claim before they were 21, unless the victim could prove a fair trial could proceed despite the time lapse.

Campaigners argued for the time limit to be removed as, on average, victims wait 26 years to come forward. Changes to the 1980 Limitation Act could lead to more people making claims.

Peter Garsden, President of The Association of Child Abuse Lawyers
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Peter Garsden, President of The Association of Child Abuse Lawyers

Civil cases ‘can take three to five years’

But Peter Garsden, president of the Association of Child Abuse Lawyers, worries that when it comes to historical abuse where the defendant is dead, institutions will still argue that it is impossible to have a fair trial and will fight to have the case thrown out of court.

Mr Garsden said it takes “between three and five years” for a civil case to get to trial.

He warned that claimants “can end up losing if you go through that process. Whereas the Redress Scheme would be quicker, much more straightforward, and much more likely to give justice to the victims”.

Victim awarded £10 compensation

Jimbo, who was a victim of abuse at St Aidan’s children’s home in Cheshire, took his case to the High Court twice and the Court of Appeal three times, but, after 13 years, all he ended up with was £10 for his bus fare to court.

Despite the Lord Justice of Appeal saying he believed that the abuse had occurred, Jimbo lost his claim because of the time limit for child sexual abuse claims to be made.

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Neither Marie nor Jimbo is likely to benefit from the removal of the time limit for personal injury claims, which is why Mr Garsden is calling on the government to implement a National Redress Scheme for victims of sexual abuse, as recommended by the IICSA.

Hundreds of millions paid to victims

The governments in Scotland and Northern Ireland have set up compensation schemes and paid hundreds of millions of pounds to victims.

In 2023, the then Conservative government said a similar scheme would be organised for England and Wales.

But the Home Office admitted in its Tackling Child Sexual Abuse: Progress Update that it “is not currently taking forward any further steps on the IICSA proposal for a separate, national financial redress scheme for all survivors of child sexual abuse”.

“In the current fiscal environment, this recommendation is very difficult to take forward,” it added.

For victims, the scheme was the last chance of compensation for a lifetime blighted by abuse.

“The money is about justice and about all the other people who have had to suffer this abuse,” Marie said.

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