UK faces £35bn funding gap as tax rises urged, Putin attacks Ukraine as Trump claims ceasefire

The Institute of Fiscal Studies has warned the UK faces a £35bn funding gap before the chancellor's Budget, calling for tax rises equivalent to a three-percentage-point increase across all brackets. The think tank attributed the shortfall to high inflation and the government's pledge on defence spending.

To help fund the defence plan, the heat pump subsidy will be cut. The Treasury declined to comment on speculation surrounding the upcoming Budget.

The warning has sparked political anxiety. The Daily Star cautioned against a "Truss-style crash", urging the chancellor to steady the ship amid fears of economic instability.

International tensions flared as Russia attacked a power plant in Ukraine just hours after US President Donald Trump claimed to have brokered a ceasefire on energy sites. Ukrainian President Volodymyr Zelensky rejected the reported deal, calling it "news to me".

The US has threatened to block arms to Kyiv to halt Russian refinery attacks. American officials are lobbying European capitals and Kyiv on the matter. Separately, oil executives pulled out of an energy conference in Riyadh after attacks on the airport alarmed the Saudi elite and Washington.

The Times revealed the government is paying sickness benefits to almost 2 million people without confirming whether recipients still qualify.

The BBC defended editing a slogan supporting transgender women from a t-shirt worn by Strictly star Bethany Antonia. A BBC spokesperson said: "As is standard practice on any entertainment show on the BBC and in line with our editorial guidelines, appropriate steps are taken to reduce the inclusion of any overt branding or slogans that may be present, regardless of the wording or statement in question."