The hospital, school and road upgrades at risk to pay for UK’s war plan

Dozens of hospital and schoolbuilding programmes, road and rail upgrades and improvements to IT systems in frontline public services could be at risk of delay due to the Government's diversion of funds for defence[1], experts and unions have warned. Each Whitehall department is being forced to find 1 per cent of savings from their capital spending budgets over the next four years to help fund the Defence Investment Plan[2] to ready the country for war. Keir Starmer's official spokesman said that the plan "delivers the decisive action we need on defence in a way that's within our fiscal rules and that will not take resources away from day-to-day spending on frontline services like health or education".

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Is the UK set for another heatwave?

Last month was the warmest June on record for England, and the second warmest for the UK as a whole. With temperatures on the rise once again, Britons are wondering if another heatwave is on the way?

Caption: A person uses a hand-held fan to keep cool on Primrose Hill in central London on June 27, 2026, during a heatwave. The UK broke the record for a June temperature for the third day in a row on Friday, the Met Office weather agency said, as a sweltering heatwave strained schools and hospitals and drove down business. A provisional 37.3 C record temperature was chalked up in Santon Downham, a village in Suffolk. (Photo by Toby Shepheard / AFP via Getty Images)Photographer: TOBY SHEPHEARDProvider: AFP via Getty ImagesSource: AFPCopyright: AFP or licensors

NEWS

4 min read

What does the forecast say?

Experts have already warned that another heatwave is likely to be declared in the UK within the coming days as temperatures are forecast to reach 30?C in places.

Caption: People drink water during an early morning journey across the centre of Bristol where temperatures are already in the mid 20???s and extremely humid after overnight thunderstorms. A rare red warning for extreme heat has been issued by the Met Office as the UK has sweltered in exceptionally hot and humid conditions. The heatwave, driven by a "heat-dome" settling over western Europe that has brought extreme conditions across the continent, has led to health warnings, school closures and transport disruption.

Picture date: Friday June 26, 2026. PA Photo. Photo credit should read: Ben Birchall/PA WirePhotographer: Ben BirchallProvider: Ben Birchall/PA WireSource: PASpectators protect themselves with hats at the Lexus Eastbourne Open.

Scientists warned that the heatwave would have been virtually impossible 50 years ago (Photo: Glyn Kirk/AFP)

By the weekend, heat is forecast to build across France and southern Britain with some locations reaching heatwave threshold temperatures.

When is a heatwave declared?

Experts warn of infrastructure breakdown and excess deaths in the UK as the world heats up faster than predicted (Photo: Brook Mitchell/Getty)

• A heatwave is declared once certain daytime temperatures are reached.
• In London and the south-east, three consecutive days of 28?C are needed.

Analysis

3 min read

What do the experts say?

Although a return to heatwave conditions is looking increasingly likely for some areas, the likelihood of such extreme high temperatures or high levels of humidity as last week is currently low.

Tony Wisson, deputy chief forecaster at the Met OfficeCaption: LONDON, ENGLAND - JUNE 24: People make their way through central London as the day heats up on June 24, 2026 in London, England. The Met Office has upgraded an extreme heat warning to red for six regions of England and Wales on Wednesday and Thursday this week, with amber warnings in effect since Monday. Temperatures are forecast to rise above 30C for several consecutive days, posing intense heat risks for vulnerable people and infrastructure. (Photo by Brook Mitchell/Getty Images)Photographer: Brook MitchellProvider: Getty ImagesSource: Getty Images EuropeCopyright: 2026 Brook Mitchell

Yellow heat warning issued

The UK Health Security Agency has issued yellow heat health alerts for the East Midlands, London, eastern, south-eastern and south-western England, warning that there is a greater risk to life for vulnerable people as a result of the temperatures.

Caption: People on Westminster Bridge in central London.

The UK is set to bake in record-breaking temperatures amid rare red warnings over extreme temperatures that are expected to hit record highs for June. A "heat-dome" settling over western Europe could bring temperatures of up to 40C in some parts of England and Wales in the middle part of the week. Picture date: Tuesday June 23, 2026.

PA Photo. Photo credit should read: Yui Mok/PA Wire

Photographer: Yui MokProvider: Yui Mok/PA WireSource: PACopyright: PA

Caption: LONDON, UNITED KINGDOM AUGUST 12: A woman uses a portable fan to cool down in London as the UK Health Security Agency (UKHSA) issues an amber extreme heat health alert for East Midlands, West Midlands, East of England, London and South East on August 12, 2025.

The rest of the country remains under a yellow heat warning, with temperatures expected to exceed 35??C in some areas. (Photo by Rasid Necati Aslim/Anadolu via Getty Images)Photographer: AnadoluProvider: Anadolu via Getty ImagesSource: Anadolu

Unlike the last heatwave, however, the air is expected to be less humid, at least initially. So despite the high temperatures, it may feel a little more comfortable.

People try to board a dinghy to cross into the English Channel in Wissant, France. Nearly 12,000 migrants have made the crossing over to the UK this year (Photo: Carl Court/Getty)

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How asylum judges spot liars and Home Office mistakes

Robin Callender Smith heard all kinds of cases during his career as a tribunal judge.Here's how he identified the difference between liars and Home Office mistakes.

Tribunal judge Robin Callender Smith

Callender Smith is a former barrister who served as a part-time immigration and asylum judge from 2006 to 2017. He said ruling on asylum appeals was by far the most testing work he has done because "if you get it wrong, you're sending people back to their deaths".

Caption: Robin Callender Smith, retired immigration and asylum appeals judge, interviewed for The i Paper by Rob HastingsPhotographer: Ray CrundwellSource: [email protected]: www.raycrundwell.com

NEWS

2 min read

Ruling on asylum cases

Calender Smith said he ruled on two specific cases where the individuals were claiming asylum due to persecution over their sexuality.

During these two cases, he was able to discern which asylum seekers were lying by leveraging his legal experience.

NEWS

2 min read

Big Read

7 min read

How to spot liars

At another "extraordinary" hearing, however, an Iranian man claimed to be gay - and was backed up by his own wife.

It's the sort of case that immediately sounds dubious and could provoke outrage, but digging into the details, Callender Smith realised they were telling the truth.

Caption: A Gavel from the Newburyport District Courtroom.

Aug 21 1998. Staff Photo by Matthew West (Photo by MediaNews Group/Boston Herald via Getty Images)Photographer: MediaNews Group/Boston Herald viProvider: MediaNews Group via Getty ImagesSource: MediaNews Group RMMigrants in "asylum hotels" have been the focus of protests in recent years (Photo: Dan Kitwood/Getty Images)

"They'd grown up together," he explains. "She knew he was gay and had married him to protect him from what would happen if his sexuality became known."

Home Office mistakes

"That was confounded by an independent childhood friend who gave independent evidence confirming their story... That was irrefutable. It wasn't a set-up, it was a true human situation."

Caption: Members of the Iranian police attend a pro-government rally in Tehran, Iran, January 12, 2026. Stringer/WANA (West Asia News Agency) via REUTERS ATTENTION EDITORS - THIS PICTURE WAS PROVIDED BY A THIRD PARTYPhotographer: StringerProvider: via REUTERSSource: Wana News AgencyCopyright: REUTERSCaption: Supporters participate in a protest marking the second anniversary of Mahsa Amini's death in memory of the Iranian victims of the Woman, Life, Freedom Movement in Berlin, Germany, on September 14, 2024.

The nationwide protests started in Iran after the death of Mahsa Jina Amini, a 22-year-old girl who died under the custody of the Islamic Republic's Morality Police on September 16th, 2022, in Tehran. (Photo by Babak Bordbar / Middle East Images / Middle East Images via AFP) (Photo by BABAK BORDBAR/Middle East Images/AFP via Getty Images)Photographer: BABAK BORDBARProvider: Middle East Images/AFP via GettySource: AFP

Callender Smith says the Home Office accused them of lying to avoid being sent back to Iran.

New asylum tribunal plan

70% The amount the backlog of appeals due to be heard by judges has risen in the last year. The Home Office is replacing judges in appeals with trained members of the public.

• The Home Office says this would "expand the range of suitable candidates while maintaining fairness", to get through cases more quickly.
• Callender Smith thinks this "legal-lite" idea is highly risky.

The problems with the Home Office's plan

Callender Smith called the Home Office "a place of great darkness", adding that he believes it "wants to say no all the time - it doesn't matter if that's a Labour no or a Conservative no".

He fears a 'Wild West' if the people making these life-changing decisions aren't "filtered" by law degrees and experience in the justice system

Analysis

3 min read

Big Read

5 min read

Iran-US peace talks continue - what you need to know

The Qatari foreign ministry has said that US and Iranian negotiators made "positive progress" in talks yesterday.

Caption: FILE - The Iranian national flag flies during a special session of an IAEA Board of Governors meeting in Vienna, Austria, March 2, 2026. (AP Photo/Heinz-Peter Bader, file)Photographer: Heinz-Peter BaderProvider: APSource: APCopyright: Copyright 2026 The Associated Press. All rights reserved

Analysis

4 min read

The peace talks

With Qatari and Pakistani mediation, Iranian and US negotiators have been holding indirect, technical talks in the Qatari capital, Doha.

Donald Trump's base of supporters was not happy about another war in the Middle East. And nor is Maga happy about higher gas prices (Picture: Kent Nishimura/AFP)Caption: This screengrab from videofootage made available on June 18, 2026, from the X account of Deputy Chief of Staff at The White House Dan Scavino shows US President Donald Trump (C) next to France's President Emmanuel Macron (R), his wife Brigitte Macron (L), US Secretary of State Marco Rubio and France's Foreign Affairs Minister Jean-Noel Barrot during the signing of a deal with Iran to end the Middle East war, inside Chateau de Versailles, in Versailles southwest of Paris on June 17, 2026. (Photo by @Scavino47 / AFP via Getty Images) / XGTY - RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT ??

AFP PHOTO / @Scavino47 ?? - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS - NO ARCHIVEPhotographer: -Provider: @Scavino47/AFP via Getty ImagesSource: AFP

The talks follow the US' release of the Islamabad Memorandum of Understanding -a proposed peace agreement between the two countries, including a commitment from both sides to further talks to help reach a final agreement over the next 60 days.

Key takeaways

• 1Qatari foreign minister Majed al-Ansari said US and Iranian negotiators made "positive progress... on issues related to the Islamabad Memorandum of Understanding".
• 2However, negotiations have been delayed until after July 9 as several Iranian cities hold processions for the late supreme leader Ali Khamenei, who was killed in a US-Israeli strike.
• 3Ali ?Abdollahi, commander of Khatam al-Anbiya Central Headquarters, has warned the US against launching any strikes at this time to avoid facing harsh retaliation.

Donald Trump on the talks:

Denuclearisation of Iran is moving along well. US President Donald Trump told reporters that "very good meetings" were held in Qatar as he and his Vice President played down any suggestion of a return to all-out combat.

Donald Trump is going after members of his own party who he sees as not loyal enough (Photo: Alex Wroblewski/AFP)

Trump's envoys Steve Witkoff and Jared Kushner arrived in Qatar on Tuesday to meet mediators, but no direct talks have taken place.

Khamenei funeral processions

Funeral processions ?for Khamenei will begin on ?July 4 in Tehran and conclude on July 9, with ceremonies planned in Qom and Iraq in between these dates.

Caption: Shi'ite Muslim women chant anti-U.S. and anti-Israel slogans as they gather for a demonstration following the killing of Iran's Supreme Leader Ayatollah??Ali??Khamenei in U.S. and Israeli strikes on Saturday, in Magam town, Indian Kashmir, March 4, 2026. REUTERS/Sharafat??Ali??Photographer: Sharafat AliProvider: REUTERSSource: REUTERSTEHRAN, IRAN - APRIL 19: Afghanistan's President Ashraf Ghani (not seen) meets with Iran's religious leader Ayatollah Ali Khamenei (C) and Iran's President Hassan Rouhani (not seen) in Iran's capital Tehran on April 19, 2015. (Photo by Pool / Iranian Religious Leader Press Office/Anadolu Agency/Getty Images)

Majed al-Ansari said the US and Iran "agreed to continue discussions over the coming period, with the next meeting to be scheduled at the earliest possible time following the funeral processions of the former Iranian supreme leader".

news

The photos that show Russia is now weaponising civilian ships

A machine gun on a sandbag-protected post on the civilian Russian-flagged LNG tanker Marshal Vasilevskiy. Estonia's Police and Border Guard said was taken as the vessel was in Estonia's vicinity in May. (Photo: ESTONIAN POLICE AND BORDERGUARD)Caption: Cahal Milmoi byline

Cahal Milmo

Chief Reporter A move by Russia to place heavy machine guns on-board a sanctioned civilian cargo ship is designed to deter increasingly bold attempts by Nato countries to disrupt Moscow's lucrative fossil fuel trade, intelligence experts have warned.

How the ship was weaponised

The Vasilevskiy is used to LNG shipments between Russia and Kaliningrad and has been cited by Putin as an important means of assuring the exclave's energy security. (Photo: ESTONIAN POLICE AND BORDERGUARD)

Estonia's police and border guard said heavy machine guns were placed on a sandbag-protected post on the Russian-flagged LNG tanker Marshal Vasilevskiy.

Finland Dispatch

4 min read

Why is Russia weaponsing the tanker?

Caption: A civilian Russian-flagged LNG tanker Marshal Vasilevskiy in this undated handout picture, which Estonia's Police and Border Guard said was taken as the vessel was in Estonia's vicinity this spring. ESTONIAN POLICE AND BORDERGUARD/Handout via REUTERS THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTY.

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BEST QUALITY AVAILABLE.Photographer: ESTONIAN POLICE AND BORDERGUARDProvider: via REUTERSSource: Handout

Deterring Nato

It is believed that the civilian cargo ship, which has been sanctioned by Britain, is designed to deter Nato ships.

Protecting Russian oil

The move was made in reaction to recent attempts by Nato countries to disrupt Moscow's oil flows.

Caption: 14th June - 42 Commando of the UK Commando force conducting maritime interdiction operations on CMR Smyrtos sailing under a false Cameroonian flag. In the first UK-led operation of its kind, the vessel SMYRTOS was boarded by Royal Marine Commandos and specially trained law enforcement officers from the National Crime Agency, despite Russia?s best efforts to evade sanctions and continue fuelling its barbaric war with Ukraine. The military operation, which lasted 6 hours, was supported with aircraft from the Maritime Air Group (Chinooks, Merlin Mk4 and Wildcat), an RAF P-8 aircraft, as well as HMS SUTHERLAND and HMS LEDBURY.

The Prime Minister agreed in March that British Armed Forces and law enforcement officers were able to board shadow fleet vessels, in accordance with international law. The SMYRTOS will be provisionally moved to an anchorage off the South Coast of England and will be monitored for any environmental or safety concerns. The enforcement action against this vessel in UK territorial waters was carried out in accordance with domestic and international law.

Photo released 14/06/2026

Photographer: UK MOD / SWNSProvider: UK MOD / SWNSSource: UK MOD / SWNSCopyright: ? UK MOD / SWNS / Crown copyright 2026

Caption: FILE PHOTO: Russia's President Vladimir Putin attends a meeting with graduates of higher education institutions of the Defence Ministry, Emergencies Ministry, Federal Security Service, Federal Guard Service, National Guard, Interior Ministry, Investigative Committee and Federal Penitentiary Service in Moscow, Russia, June 23, 2026.

Sputnik/Gavriil Grigorov/Pool via REUTERS ATTENTION EDITORS - THIS IMAGE WAS PROVIDED BY A THIRD PARTY./File PhotoPhotographer: Gavriil GrigorovProvider: via REUTERSSource: Sputnik

Fears of a confrontation

The decision to visibly arm a merchant vessel prompted concern that the Kremlin is willing to risk confrontation.

Is Russia arming its shadow fleet?

Since the start of this year, nine ships from Moscow's "shadow fleet" of oil tankers have been seized by countries including France and the UK. The seizures have coincided with growing evidence that Vladimir Putin is seeking to weaponise the fleet and other Russia-linked merchant vessels as part of a hybrid warfare campaign.

Explained

6 min read

WORLD

7 min read

exclusive

Putin is flying spy drones over critical UK sites from his shadow fleet tankers

Putin is launching spy drones from shadow fleet tankers and flying them above critical energy sites in his escalating hybrid warfare campaign against the UK and Europe, intelligence experts have warned.

Legendary jockey Frankie Dettori in hospital after car crash

Frankie Dettori is in hospital after a car crash left the legendary jockey with several broken bones.

Caption: YORK, ENGLAND - MAY 13: Frankie Dettori poses at York Racecourse on May 13, 2022 in York, England. (Photo by Alan Crowhurst/Getty Images)Photographer: Alan CrowhurstProvider: Getty ImagesSource: Getty Images Europe

What happened?

Dettori, 55, was driving in Newmarket, the home of British Flat racing, when his car was struck by another vehicle.

Caption: Frankie Dettori, the flat race jockey, poses for a portrait in the colours that he wore on his favourite horse Enable at the stables next to his home in Six Mile Bottom, Newmarket on October 11th 2021 in Suffolk, England (Photo by Tom Jenkins/Getty Images)Photographer: Tom JenkinsProvider: Getty ImagesSource: Getty Images EuropeCopyright: Tom JenkinsFrankie Dettori will ride Arrest at the Epsom Derby on Saturday (Photo: Getty)

He was taken to hospital with broken ribs among other injuries, which are being assessed.

A statement from Dettori's management:

Another vehicle struck the rear passenger side of the car Frankie was driving, causing it to spin and flip.

Frankie was taken to hospital, where he was found to have sustained several broken ribs and a broken thumb. His injuries are still being assessed, and he remains in hospital for further scans and observation.

H Talent ManagementJockey Frankie Dettori is tipped to enter the Australian jungle for this year's series (Photo: PA)

Police response

• Police confirmed they were called to a collision - but no arrests were made.
• A spokesman for Cambridgeshire Constabulary said: "We were called at about 7pm yesterday (1 July) to the A1304, London Road, near Six Mile Bottom, after reports of a collision between a car and a motorbike."
• Dettori's management said there would be no further comment "until there is a meaningful update."

Dettori's career

Frankie Dettori rode Palace Pier to Queen Anne Stakes glory in 2021 but Jim Crowley guided Baaeed to victory last year (Photo: Getty)

The world's greatest jockey

Dettori is a three-time British flat racing Champion Jockey and won 288 Grade 1 races.

Biggest win

Dettori's finest achievement came at Ascot in October 1996 when he famously rode home all seven winners.

Dettori has never been one to shy away from the spotlight (Photo: PA)Caption: Frankie Dettori is playing at Soccer Aid for UNICEF 2026, which takes place on Sunday 31st of May at London Stadium, Stratford.

Photographed by Immy Thompson-Bland for UNICEF UK and Soccer Aid Productions. ??UNICEF/Soccer Aid Productions/Stella Pictures For further information, please contact [email protected]: Immy Thompson-BlandProvider: ??UNICEF/Soccer Aid Productions/Stella PicturesSource: ??UNICEF/Soccer Aid Productions/Stella Pictures

Retirement

Dettori hasn't ridden in the UK since 2023. He went on a farewell tour in America and Brazil last year.

news

Couple scale Empire State Building...to get engaged

Caption: Two people display a banner atop the Empire State Building in the Manhattan borough of New York, U.S., July 1, 2026 in a still image from video.

ABC Affiliate WABC/Handout via REUTERS. NO RESALES. NO ARCHIVES.

THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTYPhotographer: ABC Affiliate WABCProvider: via REUTERSSource: Handout

A daredevil couple has been taken into custody after climbing to the top of New York City's Empire State Building to get engaged.

What happened?

Russian nationals Angela Nikolau, 33, and Ivan Beerkus, 32, climbed to the top of the Empire State Building before Beerkus got down on one knee and presented a ring to Nikolau.

Caption: Workers near Madison Square Garden stop and look up toward the Empire State Building in New York on July 1, 2026. Two people climbed to the top of the Empire State Building on July 1 and unfurled a banner appearing to read "when the power of love beats the love of power the world knows peace," video published by US media showed. (Photo by TIMOTHY A.

CLARY / AFP via Getty Images)Photographer: TIMOTHY A. CLARYProvider: AFP via Getty ImagesSource: AFPCopyright: AFP or licensorsCaption: Two people display a banner atop the Empire State Building in the Manhattan borough of New York, U.S., July 1, 2026, in a still image from video.

ABC Affiliate WABC/Handout via REUTERS. NO RESALES. NO ARCHIVES.

THIS IMAGE HAS BEEN SUPPLIED BY A THIRD PARTYPhotographer: ABC Affiliate WABCProvider: via REUTERSSource: Handout

The couple unfurled a large banner at the tip of the skyscraper's needle that read: "When the power of love beats the love of power, the world knows peace."

The police response

Caption: NYPD officers arrive to get into the Empire State Building as two people display a banner during a protest atop the building in the Manhattan borough of New York, U.S., July 1, 2026. REUTERS/Adam GrayPhotographer: Adam GrayProvider: REUTERSSource: REUTERS

• The couple were taken into custody.
• They reportedly face charges including burglary, reckless endangerment, criminal mischief, trespass and disorderly conduct.

PROPERTY AND MORTGAGES

4 min read

Who are the daredevils?

• Beerkus and Nikolau have performed similar stunts around the world.
• They are the subjects of the 2024 documentary Skywalkers: A Love Story.
• They spent at least 10 minutes atop the 1,454 ft (443m) Empire State Building in their latest stunt.
• Nikolau's father, the Russian circus artist Dmitriy Nikolau, told reporters: "I think it is normal to climb up a roof in any country, including the United States, according to any constitution."

Video: Daredevils scale the Empire State Building

Russian daredevils Angela Nikolau and Vanya Beerkus scaled New York's Empire State Building spire, got engaged 1,454 feet above Midtown Manhattan while holding a peace banner, then were arrested by police after climbing back down https://t.co/hmhZuAZIVi pic.twitter.com/aHV69S3o1f[3][4]

-- Reuters (@Reuters) July 2, 2026[5]Alzheimer's can be seen on brain scans (Photo: Tek Image/Getty)

HEALTH

Reflecting on the early signs of dementia

Three families reflect on the early signs of the illness, which affected their parents. They include the things they missed or dismissed, what they'd do differently and what they'd want other people in the same position to know.

Robert and his mother Joyce

She fell for a scam

Robert's mother Joyce spent her last six years in a care home

One of the first incidents that rang alarm bells for Robert was his mum falling victim to a suspected scam from someone selling mattresses door-to-door.

She also started to struggle with cooking and making her special dishes she'd been making for decades without a problem.

LIFESTYLE

6 min read

Did he tell his mother?

We [had] just sort of played along with everything. But on one particularly bad day, I blurted it out over the phone, 'Because you've got dementia, mum!' She threatened to kill herself, which was very scary. Maybe it's something I should have explained properly to her from the get-go.

JOYCE WAS DIAGNOSED WITH ALZHEIMER'S IN HER EARLY SEVENTIESOld man with dementia enjoys sunny weather - stock photo. (Photo: Getty)

Rosie became a carerin her early thirties

I think we missed some of the really early subtle signs.

Rosie's mother was diagnosed with Young Onset Alzheimer's Disease at 58 but some symptoms, like brain fog, were put down to the menopause. She had become more forgetful, and was repeating herself, but as she had always "been scatty" it was dismissed.

She became fixated

It was on strange things like going to the same buffet. Chloe was just 14 when her mum, Sarah, was diagnosed with young onset frontotemporal dementia, a rare form of the disease.

Another time Sarah, who was diagnosed in her forties, forgot how to boil an egg.

On Saturdays, when she'd usually go shopping, she'd go out and come straight back home, almost like she was forgettingwhat she was going out for.

Caption: This is a generic photo of coins on top of an energy bill letter.

See PA Feature FINANCE Energy Cap. WARNING: This picture must only be used to accompany PA feature FINANCE Energy Cap. PA Photo.

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cost of living

The three ways Burnham could cut your energy bills

Officials have drawn up contingency plans to cut further green levies from energy bills if prices remain high this winter, The i Paper has been told.

What happens next?

Several options are now circulating among Burnham's transition team who are believed to be weighing up how to deliver on that pledge. A Treasury source said work on a package was ongoing to help with rising costs.

Caption: MANCHESTER, ENGLAND - JUNE 29: MP for Makerfield, Andy Burnham, delivers a speech at The People's Museum on June 29, 2026 in Manchester, England. (Photo by Jeff J Mitchell/Getty Images)Photographer: Jeff J MitchellProvider: Getty ImagesSource: Getty Images EuropeCopyright: 2026 Getty Images

OPINION

3 min read

The options on the table

Millions of Britons have been urged to submit energy meter readings to avoid paying higher bills than they need to as a 13% jump to the price cap takes effect (Photo: Jacob King/PA Wire)

Scrap green levies

Burnham could remove remaining green levies from energy bills, funded through general taxation instead.

Windfall tax on banks

One proposal would be to raise the bank surcharge from its current 3 per cent.

Caption: MANCHESTER, ENGLAND - JUNE 29: MP for Makerfield, Andy Burnham, delivers a speech at The People's Museum on June 29, 2026 in Manchester, England. (Photo by Jeff J Mitchell/Getty Images)Photographer: Jeff J MitchellProvider: Getty ImagesSource: Getty Images EuropeCopyright: 2026 Getty ImagesMortgage rate falls are good news for buyers (Photo: Nathan Stirk/Getty)

Investment-led alternative

Replace stamp duty, loosen fiscal rules and tax the capital gains uplift on inherited assets.

What happens now?

A written statement published by the Chancellor said the remaining sum would be "confirmed at Budget 2026, in a fair and balanced way".

• Any plan to cut bills will have to compete for the same pot of money as a separate, unrelated problem Burnham will also be inheriting - a GBP4.7bn shortfall in the defence spending plan
• The Government currently has around GBP24bn of "headroom"
• Ofgem will confirm the next price cap, covering October to December, on 26 August, by which point Burnham is expected to have set out more on how he intends to deliver on his cost of living promise

Caption: MANCHESTER, ENGLAND - JUNE 29: MP for Makerfield, Andy Burnham, delivers a speech at The People's Museum on June 29, 2026 in Manchester, England. (Photo by Jeff J Mitchell/Getty Images)Photographer: Jeff J MitchellProvider: Getty ImagesSource: Getty Images EuropeCopyright: 2026 Getty Images

politics

Burnham has made the same dangerous mistake every day since he was elected

Michael Crick

Writer and broadcaster The coronation of Andy Burnham is fraught with dangers.

Never will a prime minister have arrived in Downing Street with so little scrutiny of what he wants to do.

He said there was a "credible plan for funding the vast majority of this package", through "reprioritising" GBP10.3bn of departmental spending and a further GBP4.7bn to come in the Budget this autumn. Moving money from across Whitehall into defence is a "responsible decision" in response to "the growing threats[6] the UK faces". But unions, experts and businesses have warned that the impact of the cuts could be wide-ranging and set back economic growth - one of the key planks of incoming prime minister Andy Burnham's[7] agenda.

Here is a breakdown of what could be cut:

Health

While day-to-day spending on frontline NHS services - which covers things like operations and other treatments as well as staff pay - are unaffected, the cuts to the Department of Health and Social Care's (DHSC) capital budget are likely to still have an impact on patient care, according to experts. The DHSC needs to find savings of GBP570m and this could mean delays to the ongoing programme to build or upgrade 40 hospitals, initially pledged by Boris Johnson more than six years ago. Downing Street has only guaranteed that the hospitals in the most urgent need of repair, that were affected by the Raac (reinforced autoclaved aerated concrete) scandal[8], will not be affected- leaving open the possibility that upgrades for those in waves 2 and 3 of the rebuilding programme, scheduled to start in 2030 and 2035, will be delayed.

These include upgrades to Watford General, Whipps Cross, St Mary's and Charing Cross hospitals. The King's Fund has warned that the cuts could also affect IT upgrades to NHS systems and the buying of new equipment such as MRI and CT scanners. The think-tank said that nationally-controlled budgets, such as funding for digital tech in the NHS that the Government has announced, could take a hit.

Unison general secretary, Andrea Egan, said: "Public services have been run into the ground for a decade and a half. They're in desperate need of investment. "The effect of the Government's costly defence plans is to make more cash available for war and overseas interventions, at the expense of essentials like education and health.

"The priorities are fundamentally wrong. We should be battling poverty, inequality and climate change."

Education

The Department for Education will have to find savings of GBP314m. While Downing Street has refused to go into details of what will take a hit, saying further plans will be set out in the autumn, schools in England have a substantial repair and rebuilding backlog of GBP13.8bn.

Starmer's spokesman did say what would be protected, however. This included capital spending for special education needs - such as building or adapting special SEND classrooms - and the removal of all Raac from schools and colleges by 2029. But this does leave the door open to delays in other school maintenance projects, including making buildings more energy efficient.

Julia Harnden, deputy director of policy at the Association of School and College Leaders, said: "School and college buildings have fallen into a state of disrepair as a result of insufficient capital funding for repairs and maintenance. "Cutting this budget further is going to make it even more difficult to ensure that our schools and colleges are fit for the future. "We understand the strains on the Treasury, and the arguments for increased defence spending, but we are disappointed that education, once again, loses out and, ultimately, it is children and young people who will suffer as a result."

Paul Whiteman, general secretary of the NAHT school leaders' union, said: "Children's education should not be sacrificed to fund spending commitments elsewhere, however important they may be." Daniel Kebede, general secretary of the National Education Union, said: "At a time of rising defence spending, Government must answer a simple moral question: why is there always money for conflict, but not enough for childhood? "If fiscal rules block investment in schools, staff and children's futures, then those rules must change.

Economic credibility cannot be built on crumbling classrooms and a workforce pushed beyond breaking point."

Transport

The Department for Transport is one of two ministries, along with energy, facing the largest cuts in Whitehall. Its capital budget will take a hit of GBP1.5bn, including GBP700m from the funding of road upgrades. The Government has already announced that the A38 Derby junctions and the A46 Newark bypass schemes will be delayed or potentially cancelled - to the outrage of local MPs and mayors.

But other road projects that are planned but have not yet started also face a delay. They include: the M54 to M6 link road in the West Midlands, the A27 Arundel bypass, the Norwich western link, the A509 Isham bypass in the East Midlands, the Shrewsbury North West relief road and the A83 Rest and Be Thankful alternative route in Scotland. Also at the planning stage are the Northampton North West relief road, the Ashbourne bypass in the East Midlands, the dualling of the A64 Hopgrove to Barton-le-Willows in Yorkshire, the A5036 Port of Liverpool access route and the A120 to A133 link road in the East of England.

No 10 has refused to say whether rail projects will also be affected, but more details will be revealed in the autumn.

Energy

The Department for Energy Security and Net Zero is being forced to find GBP2bn extra in savings - the most of any Whitehall ministry. The Government said the department "will reshape its capital budget in a way which continues to protect the clean power mission, drive renewable and nuclear build-out and insulate us from future gas price spikes on the path to energy independence". Again, more details on which projects will be delayed or cancelled will not be revealed until the autumn.

However the energy sector has warned that businesses, grid operators and investors need to plan now because of the long timescales needed. John Haw, CEO of UK energy procurement firm Fidelity Energy, said: "Grid connections take three or four years to plan and deliver. If projects are being delayed now, the effect isn't felt immediately, it's felt in 2028, 2029, 2030, exactly when the clean power targets need to be met."

Haw also said that the Government's 2030 net-zero targets were unlikely to be met. Firms currently produce around 63.7 per cent of UK electricity generation from clean power sources, far below the 2030 target of 95 per cent. He said: "I don't think those targets are achievable in this timeframe without pushing energy costs higher and making it harder for UK businesses to compete with countries where energy is cheaper.

The Government needs to be more open about that trade-off." Haw said that decisions about which projects are commercially viable, which supply chains to engage and which connection timelines to rely on cannot wait until the autumn. He added: "The Government saying the clean power mission will be protected is the right thing to say, and I'd like to believe it.

"But the details won't be in until autumn, and that's a problem for anyone trying to plan around it.

Energy infrastructure is not something you can pause and restart without consequence."

References

1. ^ diversion of funds for defence (inews.co.uk)
2. ^ Defence Investment Plan (inews.co.uk)
3. ^ https://t.co/hmhZuAZIVi (t.co)
4. ^ pic.twitter.com/aHV69S3o1f (t.co)
5. ^ July 2, 2026 (x.com)
6. ^ growing threats (inews.co.uk)
7. ^ Andy Burnham's (inews.co.uk)
8. ^ Raac (reinforced autoclaved aerated concrete) scandal (inews.co.uk)