Sir Keir Starmer

THE chancellor could raise tens of billions from tax reforms that don’t hit “working people”, leading economists have said.

Rachel Reeves is under pressure to fill an estimated £50billion black hole in the public finances ahead of November’s autumn statement. 

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Westminster is awash with rumours that Labour could extend the freeze on income tax thresholds.

However, critics say this would mean breaking Labour’s manifesto pledge not to increase taxes on “working people”.

But in a new report, the Institute for Fiscal Studies (IFS) urged the Chancellor to resist “half-baked” solutions like “simply hiking rates”. 

The IFS Green Budget Chapter report instead urges the chancellor to reform the “unfair” and “inefficient” tax system.

End capital gains tax relief on death

Reeves could scrap capital gains tax relief on death, the report said.

When you sell certain assets – like houses, land or other valuable items – you have to pay a tax on the profit you made on it.

However, there are some important exceptions.

For example, if someone dies and you inherit their asset, you don’t have to pay capital gains tax they would have paid.

But the IFS said Reeves should consider scrapping the relief, raising £2.3billion in 2029-30.

However, families could oppose the measure given Labour is already skimming more revenue off inherited wealth.

The inheritance tax threshold has been frozen at £325,000 since 2009.

And last year, Reeves announced she would extend the freeze until 2030.

Hit taxpayers with a ‘one-off’ wealth tax

Economists and politicians are often divided over whether a wealth tax would work.

Supporters argue that the UK’s richest 1% are wealthier than the bottom 70% – and that a wealth tax would reduce this inequality.

But critics say it would be an administrative nightmare and lead millionaires to leave the country, taking their businesses and tax revenues with them.

But if Labour does reach for wealth in the budget – it should opt for a “one-off” wealth tax, the IFS said.

The think tank argues this is a better option than a recurring wealth tax.

It would work by the government calculating how much people’s total assets are worth and taxing them over a certain threshold.

“An unexpected and credibly one-off assessment of existing wealth could in principle be an economically efficient way to raise revenue,” the IFS wrote.

However, a wealth tax that happened on a regular basis would have “serious drawbacks,” the think tank warned.

Valuing everyone’s wealth every year would be “extremely difficult,” it said.

Moreover, a regular tax could deter the highest tax payers from residing in the UK long-term, potentially hitting overall tax revenues.

But the IFS said that even a “one-off” levy could spell trouble if people don’t trust the government not to come back for more.

The report said: “The potential efficiency of such a tax could be
undermined, however, if announcing a one-off tax created expectations of, or uncertainty about, other future taxes.”

Double the council tax rates paid by highest value homes

A new council tax surcharge could raise up to £4.4billion.

Council tax is a local tax on residential properties in the UK, with homes assigned to Bands A to H based on their value.

Bands G and H generally include the highest value homes.

The IFS said doubling the council tax paid by these households could mean a £4.4billion boost.

However, critics already say the council tax system is “unfair and arbitrary”.

As reported by The Sun, families living in modest homes sometimes pay more than those in multi-million-pound mansions.

The root of the problem is simple – council tax bills are not based on what your home is worth today.

Instead, it’s based on its value way back in 1991, when homes were categorised into bands ranging from A to H. 

Decades of uneven house price growth mean this once-simple system is now riddled with inequalities.

Moreover, councils set their own tax rates – leading to a “postcode lottery”.

The average Band D council tax in England is £2,280, but councils set their own rates.

For example, in Wandsworth, people pay just £990, while in Nottingham, they pay £2,656.

This means that millions of homeowners pay much less compared to their property’s value than those in poorer areas, according to PropertyData.

Another potential problem is that the extra cash would go to local authorities rather than central government.

Local authorities use council tax to pay for local services like schools, bin collections and libraries.

So to make sure it reaps the benefits of the change, Downing Street could reduce the grants being paid to councils, the IFS said.

The UK government gives councils more than £69billion in funding – a 6.8% increase in cash terms compared to 2024-25.

But councils would likely still fight back against any funding downgrade – with sticky 3.8% inflation already eating into their grants.

Rejig inheritance tax

The IFS admits that changes to inheritance tax could ‘provoke’ strong reactions.

But its report said that the £9billion said annually is ‘modest’ – although high by historical standards.

Reforming death duties to abolish the additional £175,000 tax-free allowance could raise around £6billion, the economists wrote.

“One obvious option would be to increase the rate of inheritance tax from its current 40%,” the economists wrote.

They said an increase of just 1% would raise £0.3billion in 2029–30.

The government could also reduce the threshold at which the tax begins to be paid.

Currently, people can pass on up to £325,000 of wealth tax-free.

Then there’s an additional £175,000 tax-free allowance that can be used only when passing on a primary residence to a direct descendant.

Abolishing the second of these allowances, for example, could raise around £6billion in 2029–30, the IFS said.

Crack down on businesses underpaying their taxes

The think tank has urged Labour to tackle tax non-compliance.

Corporation tax, a tax on company profits, has become increasingly important to the Treasury’s coffers in recent years.

Over the course of the 2010s, revenue averaged 2.4% of national income, rising to 3.3% in 2025–26.

But corporation tax dodging meant 15.8% of liabilities went unpaid in 2023-24, up from just 8.8% in 2017-18.

Small businesses are mainly to blame, the IFS said, admitting that claiming the prize of missing corporation tax “would not be straightforward in practice”.

The think tank added: “More work is needed to understand why so many small companies are submitting incorrect tax returns.

“It is likely that tackling the gap would require targeted
compliance activities from HMRC, such as auditing small businesses.”

The IFS also said “more revenue could be raised from corporation tax”.

However, it did warn that, while a 1% increase would raise £4.1billion, there could be adverse consequences.

The authors wrote that investment in the UK could become “less attractive” and reduce future tax yields.

However, critics may argue that any tax hike hitting members of the public – even if targeting inheritance or council tax – will still feel like a broken promise.

What must the chancellor avoid doing?

The personal tax allowance has been frozen at £12,570 since April 2021.

Prime Minister Rishi Sunak announced the freeze would remain until April 2026 and Labour extended it until April 2028.

Extending the freeze on personal tax thresholds including national insurance contributions would raise around £10.4billion a year from 2029-30.

But IFS economists say Reeves must not do this – and instead lift the threshold amid rising inflation.

Extending the freeze would be a breach of Labour’s manifesto pledge not to increase taxes for “working people” which includes income tax, national insurance and VAT, the IFS said.

The report’s authors also said restricting income tax relief on pension contributions would raise large sums but should be avoided.

Currently, when you put money into a pension, the income tax you’ve already paid on that money is essentially returned via a government top-up.

The IFS said restricting relief would be “unfair” to penalise pensions again when pension income is already taxed.

The Chancellor should also resist the temptation to up stamp duties, the IFS said.

The think tank fears it would cause people to avoid selling their homes when they want to – hitting the jobs market and holding back growth.

“Changing rates and thresholds is all very well, but unless the Chancellor is willing to pursue genuine reform it will be taxpayers that shoulder the cost of her neglect,” the report, which forms a chapter in the IFS’s wider budget assessment for 2025, said.

Isaac Delestre, a senior research economist at the think tank and an author of the chapter, said Ms Reeves would have “fallen short” if she reaches for quick revenue without wider reform.

“Almost any package of tax rises is likely to weigh on growth, but by tackling some of the inefficiency and unfairness in our existing tax system, the Chancellor could limit the economic damage,” he said.

IF a Chinese bloke had been caught spying for the UK in Beijing, he’d currently be hung up by his toes in a cell, awaiting execution.

That’s how the Chinese sort things out. Nobody in Beijing would be worrying much if the UK is a threat or not.

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Bullet or lethal injection, Wu’s yer uncle.

Or maybe they would be pawed to death by an angry panda.

But it’s more often a bullet between the eyes.

Most countries take spying and espionage very seriously.

Indeed, ensuring we are safe from foreigners who might do us harm is the first duty of a government.

But clearly it is a duty that Sir Keir Starmer does not take remotely seriously.

Last week, two Brits were due to be tried for spying for the Chinese.

They were Christopher Cash, a parliamentary researcher, and Christopher Berry, a researcher who works in China.

Both deny any wrongdoing.

But suddenly, at the last minute, the Crown Prosecution Service dropped the case.

It didn’t bother explaining why — one minute the trial was on, the next it was dead meat.

Industrial secrets

It now transpires that the CPS took advice from British government officials.

It is entirely possible that the UK’s National Security Adviser, Jonathan Powell, a good mate of Keir, was one of the officials involved.

Shortly after their meeting with the CPS, the decision was taken to drop the case.

Why? They apparently told the CPS China couldn’t be called a “threat” to the UK.

Instead, it was just a “geo-political challenge”.

And so the charges against Cash and Berry wouldn’t stick.

In a previous spying case it was decided that charges were relevant only if it involved “a country which represents, at the time of the offence, a threat to the national security of the UK”.

Have you ever heard anything more ridiculous?

If China isn’t a threat to the UK, then who is?

The head of MI5, Sir Ken McCallum, has reported that the Chinese have tried to entice 20,000 Brits to act as spies for them, against our interests.

Did nobody think to ask Sir Ken if he thought China was a threat? I suspect I know the answer that would have been forthcoming

He also claimed that 10,000 UK businesses were at threat from the Chinese trying to nick industrial secrets.

In addition, he said that MI5 had 2,000 current investigations into Chinese spying activity — and that a new case was opened on the Chinese — behaving very deviously indeed — every 12 hours.

Did nobody think to ask Sir Ken if he thought China was a threat?

I suspect I know the answer that would have been forthcoming.

Of course the country is a threat.

It is menacing other nations down in South East Asia.

It has a whole bunch of nukes pointed directly at the West.

It arrests dissidents who want western-style freedoms.

And it does everything it can to undermine the UK’s politics and industry.

Truth be told, anybody who is working secretly for a foreign country in the UK is a threat to this country.

Especially if they are working in the House of Commons.

This seems to me so obvious that it should not need stating.

If their secret outside income involves a vast load of Yuan, some fortune cookies and cans of bubble tea, then we should investigate very seriously.

The truth in this particular case, though, is particularly damning.

It seems almost certain that Whitehall officials intervened at the behest of the Government.

And that they did this so as not to p**s off the Chinese — because aside from being a threat to the UK, which China certainly is, we are going cap in hand begging for investment from them.

Other nations don’t have a problem with employing a dual approach.

Make no mistake, we may need to do business with the likes of China, much as we did once with Russia — but they ARE the enemy

They understand that while they all need to do trade with horrible totalitarian countries such as China, they also need to count their spoons, if you get my meaning — and at the slightest sign of devious behaviour, call them out.

The Chinese understand this too.

Yes, being caught with a bunch of spies in our Parliament may be embarrassing for a short while.

But it won’t be allowed to get in the way of China making more money.

It seems that our government was too frit to risk it.

Too scared that the Chinese might react nastily and pull investment.

Or decide not to invest in the future. We mustn’t offend the Chinese.

Strategies like this simply do not work — and the Chinese, just like their big mates the Russians, will continue to spy on our institutions and do everything they can to harm our state.

Enemy is laughing

Make no mistake, we may need to do business with the likes of China, much as we did once with Russia — but they ARE the enemy.

And currently an enemy that is laughing its head off.

The government officials involved will be coming before the House of Commons Joint Committee on National Security Strategy.

If it is discovered that Jonathan Powell did warn off the CPS from pursuing the cases against Cash and Berry, then Powell should resign or be sacked.

Unless, of course, Powell was simply doing the bidding of the Prime Minister or the then Foreign Secretary, the intellectual colossus who is David Lammy.

If that’s the case then THEY should resign.

One way or another, we cannot allow Chinese spies to run amok in this country of ours just because we want to trouser some more wonga down the line, through Chinese investment.

This is a truly important week for Starmer.

The Chinese spygate scandal is the most serious he has faced since taking office last July.

It could yet be the finish of the man.

Which won’t make me lose a terrific amount of sleep, I have to tell you.

THE Man Who Never Sweats is probably feeling a bit moist under the armpits right now.

It has been discovered that Prince Andrew was still sending chummy texts to disgraced paedo Jeffrey Epstein long after the royal said he was.

Andrew is alleged to have messaged him to say: “We are in this together.”

This happened 12 weeks after the point at which Andrew claimed, in that BBC interview, to have cut off all contact with the odious slimeball.

It’s high time King Charles took action and kicked Andrew out of his Royal Lodge home in Windsor Great Park.

I’M sure there must be some people on those pro-Palestinian marches who are not actually dyed-in-the-wool antisemites.

But if so, how do they react to a comrade saying that they “don’t give a f***” about the Jewish community?

Or the protesters in Glasgow who unfurled a banner praising the “martyrs” of Hamas for murdering about 1,200 Israeli civilians and taking 251 hostage on October 7, 2023?

Or the chants about killing the IDF?

Or the demands for Israel to cease to exist?

Or for a global intifada?

It is one thing to have a few doubts about Israeli Prime Minister Benjamin Netanyahu.

It is altogether another to stand alongside rabid, Jew-hating jihadis, chanting their odious slogans.

Isn’t it time these fellow travellers had a Mitchell and Webb moment and asked themselves: “Hey . . . are we the BAD guys?”

UP here at the Tory Party conference in Manchester, comparisons between Kemi Badenoch and United’s Ruben Amorim write themselves. 

Two gaffers tasked with getting a once-formidable colossus back to winning ways — and both finding that nothing they do seems to work. 

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Supporters who long for the glory days of old are solemn, and the dressing room is fast losing faith. 

Both watch enviously as their gloating rivals in light blue continue to shine. 

Both beg for more time. 

After her bullish conference speech ­yesterday, Badenoch has bought herself that time. 

It was well delivered and she hit the right notes on the economy, welfare, crime and immigration. 

Her pledge to abolish stamp duty should also prick the ears of voters who until now have not been paying her ­attention. 

As an exercise in corralling despondent Tory members and seeing off any immediate leadership threat, it’s job done, Kemi. 

Back down to Earth 

Much the same can be said of Sir Keir Starmer’s run out in Liverpool, where he successfully united his party against their common enemy, Nigel Farage. 

He too delivered an address lapped up by his grassroots to the extent the prospect of impending mutiny melted away. 

The North West has been kind to them both, and they appear stronger. 

But the crashing thud of reality awaits them back in Westminster, where the mirage of the past fortnight will soon be shattered. 

Party conferences are bubbles frozen in time, and it is easy to be suckered into believing a leader has played a blinder just because their own side cheers them to the rafters. 

Both Badenoch and Starmer now need to come back down to Earth and confront some home truths. 

The first is that Nigel Farage is still leading the polls by a mile, opening up a 12-point gap according to More In ­Common.

May’s local elections are almost certain to be bloody, with the party at risk of ­falling to a humiliating fourth in both Wales and Scotland. 

Labour’s conference failed to make a dent, with the party registering “no change” in its position at 20 per cent ­compared to Reform’s 33 per cent. 

If Badenoch also fails to make inroads, the same doubts over her leadership will come flooding back. 

May’s local elections are almost certain to be bloody, with the party at risk of ­falling to a humiliating fourth in both Wales and Scotland. 

Badenoch’s allies are setting expectations on the floor — but as one of her Shadow Cabinet tells me: “You can roll the pitch as much as you like, nothing prepares you for the pain until it actually hits.” 

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Mass losses would spark a fierce ­internal debate between those gunning for regicide and those who despair at the thought of the Tories killing off yet another leader. 

One prominent donor has been telling friends that he will close his chequebook forever if Badenoch is toppled. 

Whereas a Shadow Cabinet minister says: “If she’s not going to be Prime ­Minister, you might as well get rid of her now.” 

Her main rival, Robert Jenrick, is sitting back, but king cobras also sit back before they strike. 

While plotters are setting their watches for the May 1 polls, smart Tories are ­looking towards November 26 to mount a fightback. 

The upcoming Budget on that date was barely ­mentioned in both Manchester and ­Liverpool, but it could turn the fortunes of all parties on their head. 

Last year Chancellor Rachel Reeves claimed her £45billion tax raid was a one-off forced upon her by years of Tory ­economic recklessness. 

Now she is coming back for more in a Budget that risks being even more toxic. 

Bond markets have put the Chancellor in fiscal handcuffs, rightly stopping her borrowing even more money on the slate. 

Labour MPs have put her in a political straitjacket by vowing to vote down any serious spending cuts, including to the eye-watering benefits bill. 

Despite the chaos of Liz Truss, voters on YouGov’s tracker still view the Tories as the most trusted custodians of the public finances. 

And growth is so puny that it will barely move the dial, all pointing to ­taxpayers being rinsed even further to make the sums add up. 

Ms Reeves is privately furious with the Office for Budget Responsibility, whose decision to downgrade productivity leaves her with an even bigger black hole — in the region of £30billion. 

Perhaps she regrets fawning quite so much over the economic watchdog when it was a thorn in the Tory side. 

She is preparing to once again blame the Conservative record, but that is unlikely to wash for a second time, ­especially if she finds money to lift the two-child benefit cap to placate her own MPs. 

A fight on the economy is fertile ­territory for Badenoch, who spent much of yesterday attacking this “high-tax, low-growth doom loop”. 

Shock therapy 

Despite the chaos of Liz Truss, voters on YouGov’s tracker still view the Tories as the most trusted custodians of the public finances. 

Some at the top of the tree believe ­economic implosion is the shock therapy needed to get them back in the game. 

One Tory Shadow Cabinet minister tells me: “People don’t yet realise how bad things are, but be in no doubt, we are flying into the mountainside. And when we crash, that is our chance to make our case to the country once again.”

Farage will of course give this short shrift, arguing he is not only reaping ­justified anger from years of immigration failure, but also decades of working people feeling no better off. 

It is clear Badenoch still needs to go toe-to-toe on borders to have any hope of winning back voters. 

But if a miserable Budget sees voters crying out for economic competence, the Tories might at last have their pitch. 

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ROBERT Jenrick should stop lecturing the public on integration, Sir Keir Starmer has blasted.

The PM hit out at the Shadow Justice Secretary after he claimed he “didn’t see another white face” during a visit to Birmingham.

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Sir Keir slammed the comment on Thursday night, saying “it’s quite hard to take anything that Robert Jenrick says seriously.”

He accused the senior Tory of “running a leadership campaign” instead of making serious political arguments.

Speaking on a flight to Mumbai, where he will meet Indian President Narendra Modi, Sir Keir said: “We’re working hard on questions of integration, but we need no lessons or lectures from Robert Jenrick on any of this.

“He’s clearly just engaging in a leadership campaign.”

The row erupted after senior Conservatives rallied behind Mr Jenrick’s claim that Britain must confront “ghettoised communities” and a “dangerous” lack of social cohesion.

Labour figures branded the comments “racist”, but Tory leader Kemi Badenoch defended her colleague, saying there was “nothing wrong with making observations.”

Shadow Cabinet Minister Claire Coutinho also backed him, saying: “If you walk through an area and don’t see a single white face, it is a sign that integration has failed.”

The controversy broke out during the Tory party conference in Manchester after The Guardian obtained a secret recording of Mr Jenrick describing a 90-minute visit to Handsworth earlier this year.

He told members at an Aldridge-Brownhills dinner: “I went to Handsworth in Birmingham the other day to do a video on Twitter and it was absolutely appalling.

“It’s as close as I’ve come to a slum in this country.

“But the other thing I noticed there was that it was one of the worst integrated places I’ve ever been to.

“In fact, in the hour and a half I was filming news there I didn’t see another white face.”

Just nine per cent of Handsworth’s population is white, with most residents of Pakistani, Indian, and Bangladeshi heritage, official data shows.

Asked if he regretted his comments, Mr Jenrick told the BBC: “No, not at all and I won’t shy away from these issues.”

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He said he mentioned skin colour “because it’s incredibly important that we have a fully integrated society regardless of the colour of their skin or the faith that they abide by.”

He also linked the terror attack in north Manchester last week to a lack of integration.

Ms Badenoch again backed her shadow minister, saying she would take The Guardian report “with a pinch of salt.”

The Tory leader said: “What he and I both agree with is that there are not enough people integrating.

“There are many people who are creating separate communities.”

Labour last night pounced on the remarks, saying Mr Jenrick had “crossed a red line.”

ED MILIBAND is a “walking, talking cost-of-living crisis”, according to shadow Energy Secretary Claire Coutinho.

The senior MP — who will tomorrow unveil Tory plans for cheaper utilities — vowed to get her Labour arch-rival SACKED as gas and electricity costs rose again this week on his watch.

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Experts have warned that Red Ed, who promised to cut energy bills by up to £300 a year before the 2024 General Election, will only drive prices higher with his Net Zero obsession.

Already, £1billion has been spent this year switching off wind turbines when it got too blowy for the network to cope.

Other sources, such as gas-fired plants, then had to be paid to be used as a replacement. The shutdown has pushed household bills up by £15 a year.

In an interview with the Sun on Sunday, Ms Coutinho fumed: “Ed Miliband is a disaster.

“Every decision (he) has made in government is going to send people’s bills up.

“He promised people £300 off their bills, and so far they’re already £200 up. People are rightly furious.

“I don’t know what he’s on. He is a walking, talking cost-of-living crisis.

“I’m going to make it my mission in this parliament to get him sacked.”

She continues: “I think he can’t add up because if you look at what he’s doing, gas at the moment is about £55 a megawatt-hour.

“He said he’s willing to pay up to £117 for offshore wind this year, and then he talks about cutting people’s bills. You don’t need a calculator to see that is just total madness.”

The top Tory also slated Energy Secretary Mr Miliband for “signing up to 20-year contracts” for offshore wind, adding: “We’re going to be saddled with these incredibly high prices for decades.”

Ms Coutinho is the face of the Conservative Party’s scepticism over a move to Net Zero.

At their annual conference in Manchester tomorrow, she will outline proposals to cut bills by scrapping green levies.

She said: “The most important thing the country needs — and we’re unashamed about this — is lower energy bills.

“Our priority for energy policy going forward will be simple: Make electricity cheaper.

“It will be good for growth, it’s good for cost-of-living — something we know lots of families are still struggling with — and, most importantly, it will be good for the whole of the UK to have much cheaper energy bills.”

Levies funding environmental and social projects add around £140 to annual electricity bills and £50 to gas bills, says innovation agency Nesta.

It comes as the UK energy price cap rose again this week by two per cent, meaning the average household paying for gas and electricity by direct debit will see costs increase from £1,720 to £1,755 per year.

Ms Coutinho’s stance marks a much harder line on eco-policies as the Tories try to stave off Nigel Farage’s party.

Reform UK promised to scrap the Net Zero target and told wind and solar developers they will end green energy subsidies if they win power.

It has prompted Mr Miliband to liken the Tories to a “Reform tribute act”.

But Ms Coutinho said: “That’s absolute rubbish, If you look at Reform, they’ve got the economics of Jeremy Corbyn.”

She claimed there was a huge black hole in Reform’s spending plans, adding: “That simply isn’t going to work for a country where you’ve got interest rates high, inflation is high. We need to be bringing those things down. So we need to live within our means.”

Tories have pledged to scrap the restrictive Climate Change Act 2008 brought in by the last Labour government, and the target of Net Zero emissions by 2050 enshrined by Tory PM Theresa May in 2019.

Ms Coutinho said: “We’ve got new leadership now and both Kemi and I strongly feel that the biggest problem that this country faces is that we’ve got the highest industrial electricity prices in the world and the second highest domestic prices. Now that’s just not going to work for Britain.”

Tories would also abolish quango the Climate Change Committee, which advises the Government on Net Zero.

Ms Coutinho said: “For too long, energy policy has been in the hands of people who are unelected and unaccountable — and that’s just not right.”

And she has left the door open to fracking.

A ban was lifted by Liz Truss during her short tenure in Downing Street – but this was abandoned by her successor Rishi Sunak.

Ms Coutinho added: “We’re a small dense island and it can be very disruptive. So it shouldn’t be done to communities without their say so.”

The shadow cabinet member admitted people are frustrated the Tories have taken their time to come up with policies after their disastrous loss at last year’s General Election.

But she insisted: “At conference, you’ll see a lot more from us. This is the moment where we’ll start telling people all the results of our work, and be able to explain what our plan is.

“The difference between us and Labour and Reform is our plans are real, they’re fully funded, they can be delivered tomorrow.”

She promised the Tories will bring forward plans the public can trust, adding: “People have really lost faith in government to be able to do the things that they want it to do. So we need to rebuild that trust.”

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The Home Secretary has vowed to do whatever it takes to secure the UK’s borders as she unveils a Farage-style crackdown on migrants.

The government will slap tough new conditions on migrants requiring them to prove they are valuable to society or face the boot, Shabana Mahmood MP said during a speech at Labour conference on Monday.

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The plans are Labour’s latest attempt to wrestle ownership of the immigration issue off Reform, which has led the debate and gained huge popularity.

In order to earn indefinite leave to remain (ILR), migrants will have to learn to speak a “high standard” of English, Mahmood said on Monday.

Most migrants can currently apply for ILR after five years of living in Britain – handing them the right to live here forever.

But that may soon double to ten years and be limited to those who pay National Insurance, Mahmood revealed in her first Labour Party conference speech.

Migrants will also be required to have a clean criminal record, not claimed benefits and prove a record of volunteering in local communities.

The Home Secretary promised to “do whatever it takes to secure our borders”.

She said: “Time spent in this country alone is not enough. You must earn the right to live in this country.”

Meanwhile, Mahmood slammed Mr Farage as “worse than racist… it’s immoral”.

Officials say the new “earn it” system will allow migrants to “earn down” the ten-year wait through positive contributions – or “earn up” if they fail to pull their weight.

But the crackdown does not apply retrospectively, meaning the so-called “Boriswave” of approximately 1.3million who arrived between 2021 and 2024 can still qualify for ILR after just five years.

It is understood Ms Mahmood is weighing a separate emergency fix just for them, though it may not be the same model.

One source close to the Home Secretary said: “For anybody who is in the country now, the new conditions don’t apply.

“But she is looking closely at what to do about the Boris wave, because she is concerned about what happens when that group passes beyond the five-year mark and automatically receives ILR.”

Lawyers have warned any retrospective move would spark fierce legal challenges.

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Ashley Stothard, Immigration Lawyer at Freeths, said on applying the ten-year rule retrospectively: “I think that change would be challenged by judicial review on the basis that it’s unfair.

“We saw a similar situation back in 2008 when the Government attempted to retrospectively change the criteria for the Highly Skilled Migrant Programme.

“That challenge was successful, and the new criteria were not applied to those already in the UK.

“The case upheld the principle that immigration policy should be fair and transparent. Migrants in the UK have a legitimate expectation that they can qualify for Indefinite Leave to Remain under the rules in place when they entered.”

Ms Mahmood yesterday warned Labour members they might not like her migrant crackdown.

She said: “In solving this crisis, you may not always like what I do. We will have to question some of the assumptions and legal constraints that have lasted for a generation and more.

“But unless we have control of our borders and until we can decide who comes in and who must leave, we will never be the open, tolerant and generous country that I know we all believe in.”

Nigel Farage’s anti-immigration Reform UK, which is leading in opinion polls, said last week it was considering scrapping “indefinite leave to remain”, and replacing it with a five-year renewable work visa.

Starmer accused Reform on Sunday of planning a “racist policy” of mass deportations, although he clarified he did not think Reform supporters were racist.

KEIR Starmer is set to announce an “online hospital” that will deliver millions of appointments a year as a “new chapter” for the NHS begins.

The Prime Minister will use his leader’s speech at Labour’s conference to set out plans for NHS Online which will connect patients to specialist clinicians.

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The scheme, which will begin operating in 2027, will deliver up to 8.5 million extra NHS appointments in its first three years, Labour claimed.

In his speech in Liverpool Sir Keir will say “a new world is coming” and “in decades to come, I want people to look back on this moment as the moment we renewed the NHS for a new world”.

The online hospital will be accessible through the NHS app and will allow patients to choose between the digital service and their local hospital.

And those who use the service will be able to access and track prescriptions, be referred for scans and tests, and receive clinical advice on managing their condition.

Patients who require a physical test or a procedure will be able to book them on the app, at a nearby hospital, surgical hub or community diagnostic centre.

Sir Keir will describe it as “a new chapter in the story of our NHS, harnessing the future, patients in control”.

“Waiting times cut for every single person in this country. That’s national renewal, that’s a Britain built for all.”

The Prime Minister will stress the need for continued NHS modernisation, insisting it is Labour’s responsibility to make the health service fit for the years to come.

Sir Keir will say: “I know how hard people work in the NHS – I see it my family – and I celebrate it at every opportunity.

“But the responsibility of this party is not just to celebrate the NHS, it’s to make it better.”

The scheme builds upon ideas already being used in some NHS trusts to reduce waiting times and allow patients to get treatment or advice quicker.

NHS England chief executive Sir Jim Mackey said: “This is a huge step forward for the NHS and will deliver millions more appointments by the end of the decade, offering a real alternative for patients and more control over their own care.

“Patients who choose to receive their treatment through the online hospital will benefit from us industrialising the latest technology and innovations, while the increased capacity will help to cut demand and slash waiting times.

“The NHS can, must and will move forward to match other sectors in offering digital services that make services as personalised, convenient, and flexible as possible for both staff and patients.”

NHS Providers chief executive Daniel Elkeles said: “The online hospital could be a very significant development, transforming the way many patients receive their care.

“The way the NHS provides outpatients services hasn’t changed much for decades, but during Covid we learned a lot about opportunities for new approaches using digital technology.

“It’s sensible they are taking the time to plan this properly because there are a lot of factors to consider.

“These include the handling of patient data and the need to avoid ‘digital exclusion’ of people who can’t access the service.

“It’s important there’s new funding and it will be an NHS organisation with NHS staff.

“This is a bold, exciting initiative, but the benefits should not come at the cost of destabilising vital services patients will continue to rely on.”

In his speech, The PM will also say there is “nothing compassionate or progressive” about letting illegal migrants cross the Channel as he stakes his political life on bringing an end to the small boats crisis.

He is under pressure to give a storming conference speech to silence his growing number of critics in both the party and across the country.

Delivering hard truths to his party faithful, the Labour leader will say beating Reform will require “decisions that are not cost-free or easy — decisions that will not always be comfortable for our party”.

Sir Keir sees stopping the migrant boats, maintaining economic discipline and taking another stab at slashing Britain’s bloated benefits bill as vital to winning re-election.

Channel crossings are at record levels under Labour, while use of asylum hotels has also increased.

It has seen Reform open up a ten-point lead, according to some polls, and become the bookies’ favourite to form the next government.

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A RECORD number of prisoners were freed in error last year.

There were 262 wrongly released in the 12 months to March, figures show.

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It is a 128 per cent rise on the 115 between 2023 and 2024 — the biggest year-on-year increase.

Some were released as their crimes for breaching restraining orders were wrongly logged.

HM Prison and Probation Service said the total included some incorrectly let out under Labour’s early release scheme.

Thousands were freed after serving just 40 per cent of their time.

It led to farcical scenes of lags popping champagne corks.

Former Tory minister Sir Alec Shelbrooke said then-Justice Secretary Shabana Mahmood should “take accountability” for the figures.

He fumed: “These figures are very alarming.

“There should be accountability when a prisoner is released early in error – and it has to go right to the top of the chain, including the Justice Secretary.

“Nobody wants to live in a lawless society. The idea that multiple people a week can be set free by mistake is scandalous.”

The Ministry of Justice said: “We’ve set up a specialist team to clamp down on those releases.”

BRITAIN must join the fight against Hamas and not reward terror by recognising a Palestinian state, the former chief of Mossad has said.

Veteran Israeli spy Yossi Cohen vowed to eradicate every last enemy fighter in Gaza – as he fumed that Israel is “doing the world’s job alone”.

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Mr Cohen demanded to know why Britain and other countries were not helping Israel after joining previous fights against other terror groups.

Sitting down with The Sun, he said: “The big question is, will you join us?

“More than 70 countries, including Britain, fought together to defeat one terror organisation with ISIS, and you joined the war against the Taliban in Afghanistan.

“How many armies are fighting with us alongside Hamas? None. The state of Israel is doing the world’s job alone. You’re invited.”

With or without the support, Mr Cohen said he will hunt down every last Hamas fighter, vowing: “If there are 100 Hamas fighters left in Gaza City… I’ll find them for you.”

Mr Cohen, who reveals his life as a spy in his new book The Sword of Freedom, slammed Sir Keir Starmer for his decision last week to formally recognise a Palestinian state – insisting he has “no power to do that”.

Several other countries including France, Canada and Australia all recognised Palestine this month – pushing the number of UN members doing so over 150.

Successive UK governments have vowed to recognise a Palestinian state at the point of most impact as part of a peace process – and Starmer felt the time was now.

The PM said the decision was in aid of a two-state solution, which is the “opposite” of what Hamas wants – though the terror group still claimed it as a victory.

But Mr Cohen said the move by Starmer was cynical.

It was designed to “strengthen” support for the Labour government at home, Mr Cohen claimed, while serving no purpose on the world stage.

He speculated that Starmer felt forced into the decision to “keep people quiet” in the UK – rather than it being “from his heart”.

And he fumed it was a “reward” to Hamas for their heinous October 7 attack.

“If Hamas are the UK’s partners, that’s very sad,” Mr Cohen said.

Cohen dismissed the declaration as toothless because it is “legally impossible” for other countries to mandate a two-state solution.

Referring to the Oslo Accords of 1993, the only standing agreement Israel has with the Palestinian Authority, he insisted that decisions about statehood may only be made between Israel’s government and the PA.

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Earlier this year, Trump also suggested recognising the Palestinian state would risk “rewarding Hamas”.

Cohen said there is a history of governments, including the British, saying one thing to their population and another thing to Israel behind closed doors – and that he “hopes” that remains the case.

He revealed that, in his former roles, he met with foreign diplomats who would be appreciative during private meetings – only to later release “the filthiest statements” about Israel.

‘We take care of Gazans’

Directly addressing the hundreds of thousands of Brits who regularly take to the streets as part of pro-Palestinian marches, Mr Cohen said: “Israel is conducting a just war. This is absolutely the right thing that we have to do.

“Intentionally, we do not kill civilians. Intentionally, we do not starve anyone. Intentionally, we’re taking care of the Gazan people.”

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Mr Cohen even claimed he had received criticism in Israel for helping bring in financial support for Gazans from donors.

“Why is it that we do that? Because we do care about the Gazan people,” he insisted.

A United Nations commission determined this month that Israel is committing genocide in Gaza.

Israel’s conduct in the war has faced increased scrutiny over the past year as the humanitarian crisis in Gaza deepens.

Reflecting on why there is such a gulf in feeling between Israel’s public and Brits, Mr Cohen said his country is still reeling from the atrocities committed on October 7 – with hostages still being kept in Gaza.

He said: “Civilians were killed and butchered. Babies included, burned in their beds, raped. The atrocities that we’ve seen are on a different scale.

“This is the reaction of a normal country. We are a normal country.

“Demonstrators will demonstrate whether Israel conducts itself rightly or wrongly. This is part of their agenda.”

Civilians were killed and butchered. Babies included, burned in their beds, raped. The atrocities that we’ve seen are on a different scale

Yossi CohenFormer director of Mossad

Hundreds of civilians in Gaza are being killed every week in air strikes and shootings.

Israel has repeatedly blamed Hamas for the high civilian death toll – claiming the people of Gaza are being used as human shields.

The IDF has recently expanded its military operation in Gaza City where hundreds of thousands of civilian remain.

Confronted with this fact, Mr Cohen said: “The type of war that we conduct is hard.

“It is not something that you can even imagine when you have terrorists living together with kids and babies in kindergartens, UN facilities, hospitals, clinics, and any other thing.

“They just conquered everything, every single house in the region, to create a kind of a terror activity in within.

“So it’s hard to do, but I know for sure that the state of Israel is doing its best to make sure that the Gazan people will not be hurt.”

Almost 70,000 people have been killed in Gaza since October 7, according to Gaza’s Ministry of Health and the Israeli Ministry of Foreign Affairs.

The ex spy master served as Benjamin Netanyahu’s national security advisor – and has hinted at aspirations to become the next Prime Minister of Israel, or returning to the government in some capacity.

“If Netanyahu wants to use me or to use my capabilities… of course he can do that,” Mr Cohen said. “He knows my phone number.”

Hinting at Netanyahu’s handing of the war, he added: “I think the people of Israel need a change that is basically founded on the need of unification.

“It is getting a little bit too intense to my taste.”

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‘Amazing’ Tony Blair

Cohen also passionately backed an emerging plan for former UK PM Tony Blair to temporarily govern Gaza after the war.

Blair has reportedly pitched a plan to Donald Trump which would see him lead a Gaza International Transitional Authority (GITA) overseeing the strip before handing over to the Palestinian Authority.

Cohen told us it was an “amazing move from Blair”, and insisted they would work well together.

He said: “This is the main problem – what do we do the day after? And who is going to take care of the close to 2.2 million people?

“We need someone to run the show in the Gaza Strip and stop it deteriorating into the hands of Hamas.

“Tony Blair‘s initiative and willingness to do that is highly appreciated. God bless him.”

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Shabana needs to be tough like Arnie

NEW Home Secretary Shabana Mahmood has no time to lose.

She has built a reputation as an immigration hardliner from the right wing of the Labour Party and is nicknamed The Terminator.

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So her appointment, in the reshuffle forced on Sir Keir Starmer by Angela Rayner’s resignation, was a clear sign of intent.

But she has been parachuted into the middle of the Government’s biggest political crisis zone.

A chaotic year of ineffective posturing saw an astonishing 111,000 asylum applications pile up after Sir Keir ditched the Rwanda deterrent.

Nigel Farage’s Reform have swept into this policy vacuum and seized the initiative.

Little wonder that a new poll puts them on course for Number Ten.

The new Home Secretary says she has no choice but to deliver.

She is right to call for legal migrants to put more into society if they want to have leave to remain here.

But voters want fast action on stopping the boats and kicking out those who should not be here.

Ms Mahmood has ordered reviews of the European Convention on Human Rights and the Modern Slavery Act.

Now she must bang heads together to deliver them early.

Thousands have dodged deportation because of these two legal millstones around the Government’s neck.

If Ms Mahmood wants to succeed, she needs to quickly live up to her Terminator reputation.

By saying Hasta La Vista to those here illegally.

Air Miles Miliband

ED MILIBAND’S reckless rush to Net Zero is already costing households dear.

This month, regulator Ofgem said Labour’s obsession with wind and solar power will see electricity prices hiked by almost £100 by 2031.

Now, as we reveal today, the Energy Secretary has himself clocked up 50,000 miles on globe-trotting flights since Labour came to power.

Forget his Red Ed nickname. It should now be Air Miles Miliband after he enjoyed carbon-busting jollies to India, China, Brazil and the US.

All this from a politician who in opposition urged voters to cut their use of flights.

To offset hypocrite Miliband’s globe-trotting would require 1,200 trees to be planted.

And that’s before you deal with the hot air he spouts.

SCRAPPING the two-child benefit cap may not help with a child’s early development and being ready for school, a report says.

The new study says ending the policy would massively help reduce child poverty but it currently has “no adverse” impact on kids by the end of their reception year.

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Sir Keir Starmer is under pressure to end the cap from ex-Prime Minister Gordon Brown and the Archbishop of York Stephen Cottrell.

But ending the policy that came into effect in 2017 would cost between £2 billion and £3.5 billion by the end of the decade.

The government has a goal of raising the proportion of children starting school ready to learn from the current 68 per cent to 75 per cent by 2030.

Report author Tom Waters, of the Institute for Fiscal Studies, said: “This suggests that it might be hard for the Government to ‘kill two birds with one stone’ – simultaneously reducing child poverty and raising school readiness – through scrapping the two-child limit.”

The government is expected to set out its strategy to tackle child poverty this Autumn.

Cabinet Minister Bridget Phillipson said scrapping the cap is “on the table” while drumming up support for her bid to be Labour’s deputy leader, following Angela Rayner leaving the role.

A ROW erupted over the Tories’ record in power at a lavish event for allies of Donald Trump.

Ex-PM Boris Johnson “robustly defended” his time at No 10 during a debate on right-wing politics.

Words were exchanged after champagne and canapes at Tuesday night’s do, also attended by former PM Liz Truss and ex-ministers.

Mr Johnson came out fighting after a forceful intervention from broadcaster Andrew Neil, who questioned why the Tories did not do more to curb migration and boost defence spending.

A witness at the Peninsula Hotel in Mayfair, central London, said: “At that point Boris robustly defended his government’s record.

“Boris argued that Brexit gives us powers to reduce immigration if we wish and said he did reduce it.

“He also said we shouldn’t bash the contribution migrants make to Britain.”

Last month Boris was seen sporting a new bearded look in photos shared on Instagram by wife Carrie.

The couple were seen holidaying on the Greek island of Euboea with children Wilfred, 5, Romy, 3, Frank, 2, and baby Poppy.

The heartwarming images of the family holiday were captioned: “Our favourite place GR.”

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