Reeves urged to consider replacing council tax as thinktank warns of ‘impossible trilemma’ for chancellor – UK politics live

<p>The National Institute of Economic and Social Research says government’s spending gap is on course to reach more than £40bn</p><p><strong>Ed Davey</strong>, the Liberal Democrat leader, has urged Keir Starmer to call Donald Trump to encourage him to use his influence to block Israel’s <a href="https://www.theguardian.com/world/2025/aug/05/israeli-cabinet-meeting-postponed-doubts-raised-benjamin-netanyahu-occupation-plan">plans for a “full occupation” of Gaza</a>.</p><p>In a statement, Davey said:</p><p>[Israeli PM Benjamin] Netanyahu’s latest proposals for the occupation of all of Gaza are utterly horrifying.</p><p>If realised, they will only wreak yet more destruction on Gazans - while gravely endangering the lives of the hostages still held in Hamas’ captivity.</p><p>I see NIESR is talking today about a £41.2bn hole in the UK public finances</p><p>Two things are newsworthy:</p> <a href="https://www.theguardian.com/politics/live/2025/aug/06/uk-politics-latest-news-updates-labour-conservatives-keir-starmer">Continue reading...</a>