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Labour’s post-election honeymoon looks to be over as it faces pressure this week over winter fuel payments, releasing prisoners early, and the state of the NHS.

Two months after winning a historic majority, Sir Keir Starmer and his ministers have a busy week as they face pressure not just from other parties, but their own MPs.

A vote on winter fuel payments, the prime minister speaking at the TUC conference, prisoners being released early, the publication of a report into the NHS and Sir Keir’s trip to the US are all on the cards this week.

Monday will see Chancellor Rachel Reeves addressing Labour MPs at a Parliamentary Labour Party meeting, where she is expected to face concerns about removing the winter fuel payment from 10 million pensioners.

MPs will vote on Tuesday on whether to limit the winter fuel payment to those on pension credit, after the government announced its intention at the end of July.

Labour MPs will be told they must vote with the government, however several, particularly on the left of the party, have voiced their opposition to the cut.

It is understood they may abstain instead of voting against the government, after Sir Keir set a clear precedent by suspending seven MPs from Labour after they rebelled over the decision to keep the two-child benefit cap.

Sir Keir would not say if he would again suspend MPs for voting against the government, telling the BBC on Sunday: “That will be a matter for the chief whip.”

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‘Not remotely happy’ about cutting winter fuel

The prime minister will also address the Trades Union Congress (TUC) conference on Tuesday, where he is set to be questioned about the winter fuel payment cut and workers’ rights.

Sharon Graham, head of the Unite union, told Sky News on Sunday that they want the government to “think again” and called for a wealth tax instead.

She said: “We are in crisis. The Tories left a mess. No one’s denying that. Labour is right about that, but the choices they make to clear it up are really important.

“If we said the top 50 families in Britain are worth £500 billion, why aren’t they being looked at?

“Why are you looking at pensioners who really don’t have any sort of type of money? That’s the wrong choice to make.”

Read more:
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Rachel Reeves leaves Downing Street following a cabinet meeting. 
Pic: PA
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Rachel Reeves will try to allay concerns from Labour MPs about the winter fuel payment cut. Pic: PA

In a packed day for the government, Tuesday is also when the first tranche of prisoners will be released early under the Labour government as it tries to alleviate overpopulated prisons.

The Ministry of Justice admitted this week some serious offenders will be released early if they are serving a sentence for a lesser crime, having completed a sentence for a serious crime.

Reports on Saturday also claimed those serving time for common assault for being violent towards a partner would not be flagged as domestic abusers, so could be released early.

Sir Keir blamed the Conservative government for not building enough prisons, saying he was “forced into this”.

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Government ‘picking the pockets of pensioners’

Thursday will see the publication of a report into the state of the NHS by Lord Darzi, an eminent cancer surgeon and former Labour health minister.

The report has already had some sections released in summary, with children’s health and the progression of heart and circulatory diseases heavily criticised.

Sir Keir said the report showed the NHS was “broken” as he again hit out at the Conservatives’ “unforgivable” reforms.

To end the week, the prime minister will head to Washington DC for his second meeting with President Joe Biden since becoming prime minister.

On Sunday, Sir Keir denied the US was angry at the UK for suspending some arms sale licences to Israel and said they had spoken before and after the decision.

He said discussions with Mr Biden will focus on the next few months in Ukraine and the Middle East.

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Crypto’s path to legitimacy runs through the CARF regulation

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Crypto’s path to legitimacy runs through the CARF regulation

Crypto’s path to legitimacy runs through the CARF regulation

The CARF regulation, which brings crypto under global tax reporting standards akin to traditional finance, marks a crucial turning point.

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Tokenized equity still in regulatory grey zone — Attorneys

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Tokenized equity still in regulatory grey zone — Attorneys

Tokenized equity still in regulatory grey zone — Attorneys

The nascent real-world tokenized assets track prices but do not provide investors the same legal rights as holding the underlying instruments.

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

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Rachel Reeves hints at tax rises in autumn budget after welfare bill U-turn

Rachel Reeves has hinted that taxes are likely to be raised this autumn after a major U-turn on the government’s controversial welfare bill.

Sir Keir Starmer’s Universal Credit and Personal Independent Payment Bill passed through the House of Commons on Tuesday after multiple concessions and threats of a major rebellion.

MPs ended up voting for only one part of the plan: a cut to universal credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Initially aimed at saving £5.5bn, it now leaves the government with an estimated £5.5bn black hole – close to breaching Ms Reeves’s fiscal rules set out last year.

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Rachel Reeves’s fiscal dilemma

In an interview with The Guardian, the chancellor did not rule out tax rises later in the year, saying there were “costs” to watering down the welfare bill.

“I’m not going to [rule out tax rises], because it would be irresponsible for a chancellor to do that,” Ms Reeves told the outlet.

More on Rachel Reeves

“We took the decisions last year to draw a line under unfunded commitments and economic mismanagement.

“So we’ll never have to do something like that again. But there are costs to what happened.”

Meanwhile, The Times reported that, ahead of the Commons vote on the welfare bill, Ms Reeves told cabinet ministers the decision to offer concessions would mean taxes would have to be raised.

The outlet reported that the chancellor said the tax rises would be smaller than those announced in the 2024 budget, but that she is expected to have to raise tens of billions more.

It comes after Ms Reeves said she was “totally” up to continuing as chancellor after appearing tearful at Prime Minister’s Questions.

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Why was the chancellor crying at PMQs?

Criticising Sir Keir for the U-turns on benefit reform during PMQs, Conservative leader Kemi Badenoch said the chancellor looked “absolutely miserable”, and questioned whether she would remain in post until the next election.

Sir Keir did not explicitly say that she would, and Ms Badenoch interjected to say: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

In her first comments after the incident, Ms Reeves said she was having a “tough day” before adding: “People saw I was upset, but that was yesterday.

“Today’s a new day and I’m just cracking on with the job.”

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Reeves is ‘totally’ up for the job

Sir Keir also told Sky News’ political editor Beth Rigby on Thursday that he “didn’t appreciate” that Ms Reeves was crying in the Commons.

“In PMQs, it is bang, bang, bang,” he said. “That’s what it was yesterday.

“And therefore, I was probably the last to appreciate anything else going on in the chamber, and that’s just a straightforward human explanation, common sense explanation.”

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