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Chancellor Rachel Reeves has been urged to “reject the path of least resistance” and consider increasing taxes in the budget.

The Institute for Government (IfG), a leading think tank, said Labour’s “rash” and “unrealistic” approach to tax has left the chancellor reaching for “piecemeal changes”.

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The government has repeatedly said it will not increase VAT rates, income tax or national insurance at the budget in November.

But a report by the think tank calls on Ms Reeves to commit to serious tax reform, instead of reaching for an “eclectic grab bag of tax raisers”, which could further complicate the system.

It comes after the Resolution Foundation proposed a 2p cut in national insurance, matched by a 2p rise in income tax, to create a “level playing field” and protect workers’ pay.

Tory shadow work and pensions secretary Helen Whately said Ms Reeves was “preparing even more tax rises, set to hit families already struggling and choke off jobs at the very moment we need them most”.

She added: “Every Labour government ends the same way, with more people out of work, higher taxes and a bigger black hole in the public finances.”

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Ms Whately’s remarks came as the government announced a £25m funding boost for the expansion of youth hubs.

The Premier League has joined forces with Labour to support the expansion, with top football clubs signing up to help get more young people into work.

Work and Pensions Secretary Pat McFadden will be speaking to Sky News Breakfast about the plans this morning.

Scrapping two-child benefit limit would reduce child poverty, report suggests

Meanwhile, a report has suggested scrapping the controversial two-child benefit limit would reduce child poverty, but not necessarily help with a youngster’s early development and their readiness for school.

The Institute for Fiscal Studies (IFS) concluded the policy has “no statistically significant impact” on the proportion of children in England achieving what is known as a “good level of development” by age five.

The two-child limit, which was announced by the Conservatives in 2015 and came into effect in 2017, limits child tax credit and universal credit to the first two children in most households.

The government is expected to publish a strategy to tackle child poverty this autumn and has been under pressure to scrap the policy, which charities and organisations working in the sector estimate pulls more than 100 children a day into poverty.

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Farage criticised for failing to ‘stand up to idol’ Trump over autism claim

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Farage criticised for failing to 'stand up to idol' Trump over autism claim

Nigel Farage has refused to criticise Donald Trump for claiming pregnant women who take paracetamol risk causing autism in their child – saying “science is never settled”.

The Reform UK leader was asked by Nick Ferrari on LBC whether the US president was right to make the link, which UK health officials have discredited.

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He replied: “I have no idea … you know, we were told thalidomide was a very safe drug and it wasn’t. Who knows, Nick, I don’t know.”

Mr Farage, who is a friend of Mr Trump, said the president has a “particular thing about autism – I think because there’s been some in his family, he feels it very personally”.

Asked if he would side with medical experts who have said there is no evidence for the link, Mr Farage said: “I wouldn’t, when it comes to science, I don’t side with anybody.

“I don’t side with anybody, you know, because, because science is never settled, and we should remember that.”

Pressed again on whether it was irresponsible to make that link as US president, Mr Farage replied: “That’s an opinion he’s got. It’s not one that I necessarily share. But I mean, honestly, I’ve no idea.”

On Monday, the US president claimed there had been a “meteoric rise” in cases of autism and suggested the use of Tylenol – an American-branded version of paracetamol – during pregnancy is a potential cause.

UK health experts and officials have pushed back hard on the claim, saying there is “no evidence” for it – including Health Secretary Wes Streeting, who said that “I trust doctors over President Trump, frankly, on this”.

Speaking on ITV’s Lorraine, Mr Streeting said: “I’ve just got to be really clear about this: there is no evidence to link the use of paracetamol by pregnant women to autism in their children. None.”

The health secretary then referenced a major study in Sweden last year that involved 2.4 million children, adding it “did not uphold those claims”.

He added: “I would just say to people watching, don’t pay any attention whatsoever to what Donald Trump says about medicine.

“In fact, don’t take even take my word for it, as a politician – listen to British doctors, British scientists, the NHS.”

The health secretary also took aim at Mr Farage over his failure to criticise the US president, saying he had “no idea and no backbone”.

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He referred to a separate controversy in which Dr Aseem Malhotra, a vaccine-sceptic doctor, told the Reform Party conference that the COVID vaccine gave the royal family cancer.

“Anti-science, anti-reason, anti-NHS,” Mr Streeting said.

A spokesperson for Reform UK said: “Dr Aseem Malhotra is a guest speaker with his own opinions who has an advisory role in the US government. Reform UK does not endorse what he said but does believe in free speech.”

The Liberal Democrats also criticised Mr Farage, accusing him of wanting to impose Mr Trump’s “dangerous anti-science agenda here in the UK”.

A spokeswoman said: “Peddling this kind of nonsense is irresponsible and wrong.

“It seems Farage would rather see pregnant women suffer in pain than stand up to his idol Donald Trump.”

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Stablecoins vs. credit cards: The coming $100B US payments battle

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Stablecoins vs. credit cards: The coming 0B US payments battle

Stablecoins vs. credit cards: The coming 0B US payments battle

Can stablecoins disrupt Visa and Mastercard? Explore how blockchain payments may capture billions in fees from US credit card networks.

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Donald Trump is ‘racist, sexist and Islamophobic’, says Sadiq Khan amid feud with US president

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Donald Trump is 'racist, sexist and Islamophobic', says Sadiq Khan amid feud with US president

Sadiq Khan has branded Donald Trump “racist, sexist, misogynistic” and “Islamophobic” following the US president’s latest attack on London.

The London mayor said he was “living rent free” in Mr Trump’s head after the US president used his address to the UN General Assembly on Tuesday to criticise the UK, and London specifically.

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The president continued his long-running criticism of Mr Khan and told delegates the UK capital was being run by a “terrible mayor” who had “changed” the city.

One of his most outlandish claims was that London wanted to operate under Sharia law, Islam’s legal system – something there is no evidence for.

The president said: “I look at London, where you have a terrible mayor, terrible, terrible mayor, and it’s been changed, it’s been so changed.

“Now they want to go to Sharia law. But you are in a different country, you can’t do that.”

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Asked about the attacks made by the US president, who enjoyed his second state visit to the UK last week, Sir Sadiq said: “I think President Trump has shown he is racist, he is sexist, he is misogynistic, and he is Islamophobic.”

He went on to say the public would be “wondering what it is about this Muslim mayor who leads a liberal, multicultural, progressive, successful city that means I appear to be living rent-free inside Donald Trump’s head”.

“When people say things, when people act in a certain way, when people behave in a certain way, you’ve got to believe them,” he added.

Mr Trump has also blamed crime in London – which he said was “through the roof” – on Sir Sadiq’s leadership, and said he had also been a “disaster” on immigration.

The president’s comments, which he made on Air Force One on the way back to Washington from London after the state visit, prompted a spokesperson for the mayor to issue a staunch defence of the city.

“London is the greatest city in the world, safer than major US cities, and we’re delighted to welcome the record number of US citizens moving here,” they said.

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Sir Sadiq and Mr Trump have long had a thorny relationship, dating back to the president’s call in 2015 for a total and complete shutdown” of Muslims entering the US before he assumed office.

The London mayor’s approach to Mr Trump comes in stark contrast to his Labour government colleagues, who have sought to keep the US president on side over issues including trade and tariffs.

The UK steel industry has been hit with 25% tariffs, as opposed to the 50% that has been levied on other countries.

The relationship between Mr Trump and Sir Sadiq presented the prime minister with an awkward moment during an hour-long news conference when the president visited Scotland in July.

Mr Trump called Sir Sadiq a “nasty person” who has done “a terrible job” – to which Sir Keir interjected with a laugh: “He’s a friend of mine.”

The president added: “I think he’s done a terrible job but I will certainly visit London, I hope so.”

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