Politics latest news: Rishi Sunak warns OBR forecasts will be 'sobering' as he prepares to cut aid - watch live

• Warning of 'major revolt' over Boris Johnson's Covid tier system

• Rishi Sunak unveils Spending Review: key points at a glance ​

• EC president tells EU leaders to compromise to get Brexit deal done 

• Allison Pearson: If Priti is demoted for ‘bullying’ then so is our democracy

• Coronavirus latest news: Sage scientists warn of third wave risk over Christmas bubble plan

Rishi Sunak has warned Cabinet ministers that today's forecast from the Office for Budget Responsibility will make for a "sobering read".

The Chancellor and chief secretary to the Treasury Steve Barclay updated Boris Johnson and his team ahead of this afternoon's Spending Review. Although no tax hikes or major spending cuts are expected today, it is thought he will lay the groundwork for pain to come next year. 

Mr Sunak is also bracing himself for a looming row over cuts to foreign aid, taking the budget from 0.7 per cent of GDP to 0.5 per cent. 

Follow the latest updates below.

12:52 PM

UK to face largest fall in output in 300 years, says Rishi Sunak

Rishi Sunak tells MPs that the OBR has warned that the economy will contract 11.3 per cent, the largest fall in output in more than 300 years. 

There is a sharp intake of breath at this.

The UK's economy will grow 5.5 per cent next year, 6.6 per cent in 2022, then 2.3 , 1.7 and 1.8 per cent 

Even with growth returning, our economic output will not return to pre-crisis levels until the fourth quarter of 2022. 

There will be long-term scarring, he adds. 

12:49 PM

Rishi Sunak: Health emergency is not yet over but economic emergency has only just begun

Rishi Sunak starts by saying the country's "health emergency is not yet over and the economic emergency has only just begun".

The Chancellor says the immediate priority is to protect lives and livelihoods by prioritising jobs, businesses and public services. 

"Today's figures confirm that taken together we are providing £280bn to get through coronavirus. Next year to fund our programmes on testing, PPE and vaccines we are allocating an initial £18bn. 

"To protect public services... we are also providing £3bn to support NHS recovery," he adds, before listing further support for transport, rough sleeping and other areas. 

"Taken together, next year public services funding to tackle Covid will total £55bn."

12:45 PM

Jeremy Corbyn joins Labour MPs in writing to Chancellor over sick pay

Former Labour leader Jeremy Corbyn joined a number of the party's MPs in writing a letter to the Chancellor about statutory sick pay, despite the fact he is now an independent.

Mr Corbyn recently had the party whip removed by successor Sir Keir Starmer over his response to a report in to anti-Semitism.

The letter, co-signed by a number of his former shadow cabinet colleagues such as Diane Abbott and Richard Burgon, told the Chancellor: "We are concerned that the current level of statutory sick pay is far too low and is forcing many people to choose between having enough money to live on or self-isolating.

"This risks undermining efforts to reduce the spread of the virus."

The group urged the Chancellor to raise sick pay to the level of the Real Living Wage and to "remove the requirement for recipients to earn over £120 per week so that every single worker who needs to self-isolate is properly supported to do so".

12:41 PM

PMQs: Boris Johnson 'keenly aware' of hospitality struggle

Andrew Percy, the Conservative MP for Brigg and Goole, asks Boris Johnson about support for hospitality throughout the coming festive period. 

The PM points to the various support that has already been announced by the Government, including grants, furlough and business rates holiday, as well as the cuts in VAT. 

"I am keenly aware how difficult it is for pubs, bars and restaurants facing a tough time in the tiers as we come out lockdown next week," he says. 

"As we come out lockdown, the way forward is not just through the vaccine... but it is also the prospect of mass, community testing."

The "collective action" in Liverpool should be happening across the country "to squeeze the disease", he says. 

12:37 PM

PMQs: PM told 'claps don't pay the bills' ahead of public sector pay freeze

Tonia Antoniazzi, the Labour MP for Gower, tells Boris Johnson that having clapped for key workers, "today they will be hit by a real terms pay freeze". 

She asks if the PM realises "claps don't pay the bills". 

He says that given how badly the economy "has been so badly hit" and private sector workers have been affected by the pandemic "it is right that we should be responsible in our response to the public finances". 

But he says there will be "more to come" in Rishi Sunak's spending review. 

12:34 PM

PMQs: Boris Johnson challenged over ongoing cladding row

Rupa Huq raises the "living nightmare" of dangerous cladding, asking him to commit that no leaseholder should foot the bill for changes. 

Boris Johnson says the Labour MP is right to call attention to the difficulties "many people are facing" because of the paperwork. 

"They are not necessary for buildings under 18 metres and it absolutely vital they understand that while we get on with removing cladding from all the buildings we can," he adds. 

12:32 PM

PMQs: Boris Johnson agrees to publish analysis of tiered restrictions

Andrew Rosindell, the Tory MP for Romford, calls for Boris Johnson to agree "to a full public cost-benefit analysis" of any further restrictions "that will lead to years of economic harm that could be worst to people's lives than the virus itself". 

The PM says he is right o call attention to the dangers that a lockdown can do but they have to be judged against the damage a lack of intervention would do.

"We will of course be setting out an analysis of the tiered approach and the data that supports the tiering decisions, as we have done in the past," he adds. 

12:28 PM

PMQs: Boris Johnson suggests Ipsa will freeze MPs' pay

Dehanna Davison asks Boris Johnson if he agrees that MPs' salaries should be frozen. 

She coordinated a letter signed by more than 50 colleagues calling for Ipsa, the regulatory body, to freeze pay in light of the wider economic situation. 

He says he does, which is why ministers' salaries have been frozen. He says Ipsa will have heard her request. 

12:26 PM

PMQs: Ed Davey calls for Boris Johnson to raise carers' allowance

Ed Davey, the Liberal Democrat leader, asks Boris Johnson to raise carers' allowance by £20 a week, or explain why "Conservatives think unpaid carers don't deserve extra help". 

The Prime Minister says he is happy to look at that specific grant again, but stresses that the Government has given "substantial increases" in the living wage and other areas, saying "we are doing our best" to support those who are the poorest and neediest. 

12:24 PM

PMQs: Ian Blackford challenges Boris Johnson on overseas aid budget cut

Ian Blackford hammers Boris Johnson over the plans to cut the overseas aid budget from 0.7 per cent of GDP. 

The Prime Minister says it sounds like the SNP invented this target when it was a Conservative government. 

"That will continue on any view," he adds, initially using the word "investors" but changing it to "donors". 

The SNP's Westminster leader asks if the briefing around the cut "isn't true", noting that "some nations have better life rafts" to get through the pandemic. 

Mr Johnson says the UK has been playing a leading role in helping to defeat Covid, and the AstraZeneca vaccine will be sold at cost to continue that. 

"We should be proud in this country of what we are doing... we are in the lead in promoting not just inventing vaccines but ensuring the very poorest around the world are getting vaccines," he adds. 

12:20 PM

PMQs: Keir Starmer calls on Boris Johnson to give frontline workers a pay rise

Sir Keir Starmer says it is a clean sweep - bullying, harassment, leaking, wasting public money and obvious conflicts of interest. 

It is "the same old story", he adds. "If you have got a hotline to ministers you get a blank cheque but if you are on the frontline tackling Covid, you are picking up the bill."

He asks if the Prime Minister will give frontline workers "the pay rise they so obviously deserve". 

Boris Johnson insists the Government has given pay raises to key workers, and adds that if Sir Keir can "contain his excitement" he will hear more about a rise to the living wage. 

The reason they can do that is because the Government "understands the economy" and is taking "tough decisions now to allow our economy to bounce back". 

12:16 PM

PMQs: Boris Johnson defends private sector over criticism of cronyism

Sir Keir Starmer then turns to conflicts of interest, joking "where do I start with this one?"

He notes reports about a friend of Matt Hancock being appointed to a key advisory role, following previous reports that those with links to the party were more likely to win lucrative pandemic contracts. 

Boris Johnson says all will be made clear by the publication of contracts, claiming his criticism is coming from a "deep underlying Labour hatred of the private sector". 

He praises the private sector for breakthroughs in treatments and vaccines. 

12:13 PM

PMQs: Keir Starmer and Boris Johnson clash over 'wasted taxpayers' money'

The third issue Sir Keir Starmer raises is about Government spend, noting that there have been orders for items that can't be used. 

He asks: "How many hundreds of millions of pounds on taxpayers money has been wasted on equipment that can't be used?"

Boris Johnson says 99.5 per cent 32bn items of PPE bought by the UK "conformed entirely to our clinical need". 

He says Sir Keir is coming up with "pathetic lines of attack" but this is "the feeblest", noting that in the past the opposition criticised him for not moving fast enough. 

The Labour leader says "it is obvious that either the Prime Minister doesn't know how much money has been wasted or doesn't care". 

12:10 PM

PMQs: Boris Johnson hits out over Jeremy Corbyn

Sir Keir Starmer says he will "chalk that up" as one broken promise and turns to the next ministerial promise - no leaking. 

He says there have been multiple leaks over the summer including his plans for a second lockdown "leading to a truly chaotic press conference" last month. 

He asks if Boris Johnson is any closer to working out who is leaking the information. 

The Prime Minister says as soon as he has any information he will bring it to the House, accusing the Labour leader of focusing on "trivia" instead of substantive issues like dealing with the pandemic.

He would take his criticisms more seriously if he could explain why Jeremy Corbyn is still a member of the Labour.

Sir Lindsay Hoyle intervenes to remind him that it is PMQs, not LOTOQs.  

Sir Keir says he is dealing with the issue, while Mr Johnson is not dealing with his, adding he adds another point "to the no column". 

12:07 PM

PMQs: Sir Keir Starmer challenges Boris Johnson over Priti Patel

Sir Keir Starmer's first question to Boris Johnson is about his foreword to the ministerial code, asking how many promises his ministers have kept. 

The Prime Minister says the ministers are "working hard and overall doing an outstanding job in delivering the people's priorities". 

He also flags the imminent Spending Review, which will set out plans for investment in schools and hospitals. 

The Labour leader says he "didn't really hear an answer there" and goes through the promises - kicking off with bullying. He notes that ethics adviser Sir Alex Alllan's report suggested Priti Patel's behaviour "could be described as bullying", and asks what message it sends that he has resigned while the Home Secretary has remained. 

Mr Johnson says Sir Alex's resignation is a matter for himself and he makes "no apology" for standing up for Ms Patel who is "getting on with delivering what the people of this country want, she is showing a steely determination, which is probably why the other side want to bash her". 

12:03 PM

PMQs: Boris Johnson hails his last day of self-isolation

Boris Johnson has kicked off PMQs by confirming it is his last day of virtual meetings before he comes out of isolation. 

The Prime Minister is then asked about the plan for the UK to exit the EU "as a whole" at the end of transition. He says he can "make that guarantee", adding his position on fish hasn't changed: a deal can only be done if the EU accepts our position. 

11:58 AM

Brexit talks are 'in injury time' - but this is when politicians are at their best, says Guy Verhofstadt

Guy Verhofstadt has said that Brexit talks are "in injury time" - but said he is optimistic a deal can be done, because unlike footballers "politicians are at their best" in this period. 

"I'm still optimistic because I think that this is not like football," he told European Parliament this morning. "Footballers are tired in injury time. Politicians are not. They are at their best in injury time.

"And I hope and I'm still optimistic because it's in the interest of both to have this agreement."

11:47 AM

Here comes Rishi...

Rishi Sunak faces an unusual dilemma in his spending review.

Never before has the nation run such an enormous budget deficit - he is on track to borrow £400bn this year - yet simultaneously cash has never before been so readily available. The Government routinely borrows at negative interest rates as investors are so keen to keep their money with HM Treasury.

This unconventional financial picture is matched by twin demands.

The Chancellor knows he has to get the budget deficit down at some point. But he also knows economic growth is the best way to do that, and slashing spending or hiking taxes will undermine the recovery he needs to boost tax receipts again.

It means he is preparing to set aside as much as £50bn to keep battling Covid and its effects.

11:38 AM

Allison Pearson: Most Britons back Priti's hard line against Leftist snobs

A few weeks ago, when Angela Rayner called a Conservative MP “scum” in the Commons, something very strange happened. Nothing. 

True, Labour’s deputy leader earned a thunderous rebuke from Dame Eleanor Laing in the Speaker’s chair. “We will not have remarks like that – not under any circumstances,” Laing bristled. Under pressure from aghast Tories, Rayner issued an apology. “I apologise for the language that I used in a heated debate in Parliament earlier,” she said unapologetically.

And that was that. No deluge of comments on social media about what a b---- Rayner was. No #angelamustgo. No reporters furrowing their brows on the evening news and asking why such a foul-mouthed person should continue to occupy a senior role.

Allison Pearson wonders why that might be.

11:26 AM

Camilla Tominey: Will Rishi Sunak push back against the Tory party – or Boris Johnson?

When Rishi Sunak remarked at the weekend that he would have to take the Prime Minister's credit card away, he insisted he was joking.

Referring to his "incredibly close relationship" with Boris Johnson, the Chancellor brushed off suggestions that historic tensions between Numbers 10 and 11 Downing Street had been reignited amid mounting concern about the Government's big-spending plans.

Yet as he prepares to deliver the Spending Review on Wednesday in the face of Britain's biggest economic crisis since the Second World War, the Tories believe it is only a matter of time before Mr Sunak is forced to put the squeeze on the profligate PM.

Read the rest of Camilla Tominey's analysis here. 

11:17 AM

Have your say on: How to pay for the cost of Covid?

Rishi Sunak is due to set out his spending review in just over an hour. But while we are likely to hear a "sobering" forecast from the Office for Budget Responsibility today, it seems likely that we will have to wait a few more months to hear exactly how we will be paying for it all. 

Ideas are already being touted however, so it's time for you to have your say. Should the bulk of the cost come from tax hikes, or should cuts to spending be prioritised? 

Have your say in the poll below.

11:06 AM

Former White House adviser attacks Rishi Sunak's 'extremely unfortunate' overseas aid cut

A former adviser to Barack Obama and Bill Clinton has attacked Rishi Sunak over plans to slash the UK’s overseas aid budget. 

The Chancellor is expected to cut the total spend on foreign aid from 0.7 per cent of GDP to 0.5 per cent as part his book-balancing Spending Review today. 

But John Podesta, chief of staff to President Clinton and counsellor to President Obama, has told the BBC this would be “extremely unfortunate”, adding that the timing was “odd” and “ironic”, given the impact coronvairus is having on the poorest parts of the world. 

It is not known to what extent his view is shared by president-elect Joe Biden. However it chimes with concerns raised by Jeremy Hunt and other Conservative MPs. 

One backbencher said the cut would “cause a huge row with the Tory left”, noting this could be Mr Sunak’s “beginning of the slide into being unpopular”.

11:05 AM

What's on the agenda today?

It's shaping up to be a busy day - here's what to expect

11:30am: Women and Equalities questions

12pm: Boris Johnson faces Sir Keir Starmer at PMQs.

12.30pm: Chancellor Rishi Sunak delivers his Spending Review.

1.30pm: The Office for Budget Responsibility publishes its latest forecasts.

2.30pm: The OBR holds a press conference.

After 1:30pm: Lords will debate the UK Internal Market Bill. 

10:58 AM

Tories retain lead over Labour despite drop in polls

The Conservative Party have dropped two points but held onto their lead over Labour, according to the latest Savanta ComRes Westminster voting intention.

The Tories have fallen to 39 per cent, but are still above Labour, which fell one point to 37 per cent.  There is renewed optimism that a Brexit deal can be struck in time (29 per cent compared to 19 per cent last week) although narrowly more (34%) say that no deal is the most likely outcome.

However net approval in the Government’s overall handling of the pandemic slumped to -12 from -9 the previous week, while the Prime Minister’s personal pandemic net approval fell by two points from -14 to -16.

Chris Hopkins, political research director at Savanta ComRes said: "The Government still seems to be dogged by a perception that it is not doing enough to support some sectors and small businesses.

“Recent announcements around a relaxation of restrictions around Christmas may be enough to lift the nation’s mood but, while all communications about the pandemic from Government remain cautious, it’s unlikely to give much of a boost to their ratings.”

10:49 AM

OBR forecasts will be 'sobering read', Chancellor tells ministers

The Chancellor and chief secretary to the Treasury told Cabinet on Wednesday morning ahead of the Spending Review that the OBR forecasts will make a "sobering read", Downing Street has said.

A Number 10 spokesman said: "The Chancellor and Chief Secretary to the Treasury updated Cabinet ahead of this afternoon's Spending Review.

"Cabinet was told the OBR forecasts will show the impact the coronavirus pandemic has had on our economy and they will make for a sobering read, showing the extent to which the economy has contracted and the scale of borrowing and debt levels.

"But - as the IMF, OBR and others have pointed out - the costs would have been much higher had we not acted in the way we have done."

Here are the three priorities:

1. To protect people's lives and livelihoods providing the support they need to get through Covid.

2. To make good on our promise to deliver strong public services by investing in schools, hospitals our police force and more.

3. To deliver our record investment plans in infrastructure to level up and spread opportunity across the United Kingdom. Our plan is to deliver the highest sustained levels of govt investment in almost half a century. 

10:39 AM

Boris Johnson speaks with 'experts' about Father Christmas' present-round

Boris Johnson has had a word to ensure our stockings are filled on Christmas Day. 

The Prime Minister has tweeted a picture of a letter from eight-year-old Monti, asking if Father Christmas will be able to deliver presents. 

"If we leave hand sanitiser by the cookies can he come," the boy asks. "Or will he wash his hands". 

Thankfully, Mr Johnson says he has "spoken with experts and can assure you that Father Christmas will be packing his sleigh and delivering presents". 

10:11 AM

More than 160 million meals sold through Eat Out to Help Out in August

More than 160 million meals were sold by businesses through the Eat Out to Help Out scheme in August, according to official figures.

HMRC has said that more than 49,000 restaurants, pubs and cafes claimed £849 million by the end of September through the subsidy scheme aimed to boost consumer spending after the first national lockdown.

It said the majority of claims - 55 per cent - were made by restaurants, with pubs accounting for 28 per cent of meals.

The number of meals discounted by the scheme and the total value of claims increased each week as more people used the offer every week before it ended.

It also revealed that customers secured an average discount of £5.24 per meal claimed.

09:51 AM

'Damn killers of children and old people': Car crashes into Angela Merkel's office

A car has crashed into gates around the office of German Chancellor Angela Merkel in Berlin this morning, local media is reporting. 

Reuters pictures from the scene showed police inspecting an estate car at the gate with the words "Stop Globalisation Politics" scrawled in white on its right side and "You damn killers of children and old people" written on the other.

There were no immediate reports of casualties. Dozens of police and a fire engine were on the scene.

Merkel was scheduled to be hosting a video conference of German state premiers on Wednesday morning, at which an extension to the coronavirus lockdown and further steps to combat the pandemic were due to be discussed.

09:34 AM

Joe Biden says there must be no guarded Irish border in Brexit warning

Joe Biden said on Tuesday night that he did not want to see a guarded border in Ireland.

The US president-elect said he had discussed the matter with Boris Johnson and other European leaders.

Asked what his message to Brexit negotiators was, Mr Biden said: "We do not want a guarded border. We want to make sure. We’ve worked too long to get Ireland worked out.

"And I talked with the British prime minister, I talked with the Taoiseach, I talked with others, I talked to the French. The idea of having a border north and south once again being closed is just not right, we’ve just got to keep the  border open."

Read the full story here.

09:22 AM

ICYMI: Boris Johnson sets out the four-nation plan for Christmas

Boris Johnson has urged people to make a "personal judgement" about the risks of coronavirus to vulnerable loved ones when forming a Christmas bubble.

The Prime Minister urged the public to "think carefully" over the festive period after it was confirmed that three households will be able to mix from December 23 to 27, amid warnings this could lead to a third wave of the pandemic.

Mr Johnson acknowledged the measures would not add up to a "normal Christmas" and urged people to exercise caution, particularly when meeting with the elderly or the vulnerable.

"We can't afford to throw caution to the wind. The virus doesn't know it's Christmas and we must all be careful," he said.

Watch his statement again below.

09:19 AM

Brexit talks in 'decisive days', says Ursula von der Leyen

Brexit talks are in "decisive days" European Commission president Ursula von der Leyen told MEPs this morning.

There had been "genuine progress" in some areas, with the outline of a "possible final text" in areas including criminal justice, goods and services and transport.

But there have been no breakthroughs in the three areas which have proved problematic for months - fishing rights, governance of any deal and the "level playing field" designed to prevent unfair competition on standards and state subsidies.

"I cannot tell you today if, in the end, there will be a deal," she added. 

Ms von der Leyen said "with very little time ahead of us" the EU was "ready to be creative", but it would protect the integrity of the single market.

There were still "serious issues" around state aid and the possibility of the UK drifting away from EU standards on labour and environmental standards.

09:07 AM

Home Office must 'urgently rectify gross injustice' over Windrush EHRC findings

The Home Office ignored equality law in its treatment of the Windrush generation under Theresa May's "hostile environment", leading to serious injustices, a watchdog has found.

The Equality and Human Rights Commission (EHRC) said the Home Office failed to comply with its duty on equality in the way it developed, implemented and monitored its "hostile environment" policy, and particularly in relation to black members of the Windrush generation.

The EHRC said officials repeatedly ignored or dismissed warnings that the policy to create a "hostile environment" for illegal migrants could have a negative impact on the Windrush generation, many of whom came to the UK as children and were threatened with deportation.  

Shadow justice secretary David Lammy tweeted: "This damning report by EHRC confirms what many of us already knew. [The Home Office] broke equality laws in its treatment of the Windrush generation."

He added:

08:53 AM

Cutting public sector pay 'irresponsible', says Labour

Labour has claimed it would be "irresponsible" to freeze public sector pay, ahead of Rishi Sunak's spending review this atfernoon. 

Shadow chief secretary to the Treasury Bridget Phillipson warned doing so would have a "real impact on our economy at a very fragile time", as those workers would not be able to support high streets and local businesses. 

"It would be irresponsible and short-sighted to shift away from that need to invest in our economy," the MP for Houghton and Sunderland Sout told Sky News. 

Ms Phillipson added that plans to relax restrictions over Christmas should be "managed as carefully as possible" as coronavirus is "still a deadly threat". 

It is "perfectly understandable" that people "want the opportunity to see family and friends" after a very tough year - but ministers must "communicate that message of what's expected of us clearly".

08:50 AM

Relaxing restrictions now risks third wave after Christmas, says Ursula von der Leyen

Ursula von der Leyen has warned against relaxing coronavirus lockdown measures too quickly, telling the European Parliament there was a risk of a third wave of infections.

"I know that shop owners, bartenders and waiters in restaurants want an end to restrictions," the president of the European Commission said this morning. 

"But we must learn from the summer and not repeat the same mistakes.

"Relaxing too fast and too much is a risk for a third wave after Christmas."

08:46 AM

Boris Johnson 'allowing too much' Christmas socialising, says Andy Burnham

Boris Johnson is "allowing too much" socialising over the Christmas period, Andy Burnham has said. 

The Mayor of Greater Manchester warned that that "green light" granted by the Prime Minister - in which three households can mix indoors over five days - could lead to greater restrictions in the new year. 

"What is the price that people will have to pay? A  December in a pretty miserable tier three for many people, and then possibly a January in tier three. It's too much, I don't think the Government has got the balance right here."

The Labour politician told ITV's Good Morning Britain he would favour allowing "two households to mix for a couple of days, or just on Christmas Day."

He added: "I would take a much more balanced approach to this and honestly, I think it's too much."

08:34 AM

Today's OBR forecasts to make for grim reading

Despite the headline jobs pledge that Rishi Sunak will set out today, we are in for some gloomy news when we find out the extent of the economic carnage caused by coronvirus this year. 

Calculating exactly how badly GDP has been hit, and how long it will take to repair the damage, is a job for the Office for Budget Responsibility.

Its forecasts this week, presented alongside the Comprehensive Spending Review, will make grim reading.

The economic backdrop is cataclysmic. GDP is probably shrinking again thanks to the renewed lockdown in England and an assortment of restrictions in the rest of the country.

08:27 AM

MP challenges Government over Christmas pub ban

A Labour MP has called for the Government to set out its "evidence base" for excluding pubs and restaurants from the Christmas bubble exemption. 

According to the plan set out yesterday, up to three households can meet between 23 and 27 December regardless of which tier they live in, but only in private homes. Hospitality will have to follow the rules according to which category their region is placed in.

Emma Hardy, who represents Kingston upon Hull West and Hessle, was among those to challenge the idea.

"Why can families not meet in a restaurant over the 'relaxation' period during Christmas?" she asked. "Our hospitality trade will not recover if they miss out on trade during this crucial period."

08:16 AM

Christmas relaxation should be 'used carefully and responsibly', says Mark Drakeford

People should "think carefully" about who they meet and how far they travel over Christmas and use the relaxation of coronavirus restrictions "sensibly and responsibly", the First Minister of Wales has said.

Mark Drakeford told BBC Breakfast: "Coronavirus has not gone away and although Christmas is a very special time and it was important to give people a sense that there was some modest relaxation, it's still relaxation to be used carefully and responsibly.

Mr Drakeford described the agreement between the UK nations on Christmas as "about as good as we could make it" and said it was clear the choice was not between no restrictions or all restrictions.

"Had we asked people simply to live with the current level of restrictions, there was a real risk that people simply wouldn't be able to go along with that," Mr Drakeford said.

He told the BBC that Tuesday's Cobra meeting was "led by the science" and first heard from the chief scientific officer and chief medical officers of the four nations.

08:13 AM

Chancellor likely to take on triple lock next year, says former pensions minister

The Chancellor's plan to stop using RPI as the main measure of inflation in favour of the lower CPI rate will push the value of both public and private pensions down, a former minister has said. 

The reform will save the taxpayer money, benefit commuters and help students but also reduce annual increases in incomes from defined benefit pension schemes linked to RPI. 

But Ros Altmann, who was pensions minister under David Cameron, told the BBC that it could affect most pension holders, noting that "over a long period of time, although you only get a little bit less every year, that mounts up."

Private sector pensions often had an RPI floor, which could be replaced with CPI, she explained. 

Speaking to the BBC Baroness Altmann added that the triple lock was likely to stay in place this time around but could be tackled in 2021. 

"Obviously we have to increase pensions.. but I think the Chancellor might look at the triple lock, or announce some review of that. I don't expect him to abolish it."

08:04 AM

Rishi Sunak to turn from 'Father Christmas to Grim Reaper', Tory MPs warn

Chancellor Rishi Sunak could be about to lose his crown as the most popular politician in Westminster as he lays the groundwork to balance the books after the pandemic splurge.

Although that will continue with a £4bn jobs bung, cuts to overseas aid will spark a row among moderates, and inflation changing will harm older savers and retirees, but there is concern that worse is yet to come.

One MP said: "It is the beginning of the slide into being unpopular. This [overseas aid] is the first of a series of unpopular decisions... People are about to find out that Rishi is a real fiscal conservative at a time when that appears to have gone out of fashion."  

"This will be beginning to set the scene and prepare us all for bad news next year," said another. "Rishi may be currently seen as Father Christmas, but it won't be long before he is considered the Grim Reaper."

A third said: "This will be the aperitif - the main course of gruel will be next year."

07:50 AM

Rishi Sunak should avoid 'panic measures' for now, says Liam Fox

Rishi Sunak should take a "medium-term view" of the economy in the spending review today, avoiding "panic measures" such as tax rises or spending cuts until the economy "settles down", a former Cabinet minister has said.

Liam Fox, MP for North Somerset and ex-defence secretary told Sky News the proposed public sector pay freeze was justifiable because the gap between public sector and private sector earnings has grown during the pandemic. 

He added: "In the public sector, people have greater job security, they've got state pensions which are quite a valuable thing - that job security is worth a lot in today's economy".

He also played down the prospects of outrage over plans to cut the overseas aid budget form 0.7 per cent of GDP, saying that was not a "magical figure". 

He added: "I'd like to see us keep it up as best we can but the government has a number of other commitments at home as well".

07:46 AM

Three households can meet for five days at Christmas as Covid restrictions eased

Families will be able to meet with two other households for five days at Christmas under a deal struck by the Government with the devolved nations.

From December 23 to 27, coronavirus restrictions on household mixing will be lifted in all four home nations, allowing three households to form a Christmas "bubble" together.

Boris Johnson had originally hoped to allow families to get together for a week but had to water down the plan following opposition from leaders in Scotland and Wales, The Telegraph understands.

07:43 AM

Christmas bubbles 'make a mockery' of ban on hospitality, trade body claims

Plans to relax rules on household mixing over the Christmas period have been branded a "mockery" as restrictions remain in place for pubs and the wider hospitality sector.

According to Government guidance published on Tuesday, people cannot meet up with their Christmas bubbles of up to three households inside pubs, hotels, retail, theatres or restaurants between December 23 and 27, despite being able to do so in private homes. 

Rules covering meeting inside hospitality settings will depend on what tier of restrictions in England a venue is in.

British Beer and Pub Association chief executive Emma McClarkin: "These plans for Christmas make a mockery of the extra restrictions being placed on pubs and the economic devastation they are facing this Christmas.... The Government data has consistently shown that house-to-house transmission is one of the highest, whereas hospitality has accounted for as little as two per cent of Covid incidences when open.

"Pubs are a controlled, safe and regulated environment to socialise in - following all Government guidelines and working with NHS track and trace. They are part of the solution for a safe and enjoyable Christmas, not the problem.

"It seems the Government has chosen to inflict unnecessary pain and irreversible damage on our sector without publishing evidence alongside these decisions."