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On 26 November 2025, UK Chancellor Rachel Reeves announced the abolition of the two-child benefit cap, effective April 2026. The policy, introduced by the Conservatives in 2017, limited child tax credits to two children per family and contributed to rising child poverty. The repeal is expected to lift 450,000 children out of poverty, funded by new taxes including a gambling levy and mansion tax.
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Donald Trump’s second UK state visit, marked by royal ceremonies and a $205 billion US investment deal, occurs amid political instability in Britain. Prime Minister Starmer faces domestic crises, including sacking his US ambassador over Jeffrey Epstein ties, complicating diplomatic efforts on Ukraine, Gaza, and trade. The visit aims to strengthen the 'special relationship' despite tensions.
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UK Defence Secretary John Healey announced new powers for military bases to shoot down unidentified drones, citing increased Russian drone activity over Europe and Ukraine. The move aims to extend protections to airports and critical sites, amid rising tensions and recent incursions into European airspace.
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Labour's new deputy leader, Lucy Powell, insists the government should honor its manifesto promise not to raise income tax, VAT, or national insurance, amid signs of potential U-turns ahead of the upcoming Budget. She also calls for full abolition of the two-child benefit cap, highlighting concerns over child poverty.
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Recent internal briefings at No 10 suggest a leadership crisis, with allies of Prime Minister Keir Starmer warning against a challenge. Labour figures deny plotting against Starmer, amid fears of political instability ahead of the upcoming Budget. The story highlights ongoing tensions within the government and Labour party, with potential implications for future leadership and policy decisions.