Image source, PA Media

Kemi Badenoch has said she is "really worried" that the UK might be forced to embark on a 1976-style bailout from the International Monetary Fund.

The Conservative leader told BBC Newsnight that the UK could be forced to go "cap in hand" to the IMF unless the government delivers a plan for economic growth.

She made her remarks as she offered to work with Sir Keir Starmer "in the national interest" to cut welfare spending, saying cuts and growth were needed to help the government out of a "doom loop" of rising taxes and precarious public finances.

Speaking in Parliament on Tuesday, Chancellor Rachel Reeves said Badenoch was "talking down our economy in a desperate attempt to get attention".

"The only thing in Britain that needs a bailout is the Tory party from its failed leadership," Reeves added.

The Labour government of the late Prime Minister Jim Callaghan was forced to apply for a $3.9bn (£2.9bn) emergency loan from the IMF during the 1976 sterling crisis.

That was seen as a seminal event in post-war economic history, which severely undermined the economic credibility of the Callaghan government.

Asked what made her think the UK is heading towards the need for an IMF bailout, Badenoch said: "A lot of the indicators are pointing in that direction.

"Many very well respected commentators and economists are saying this."

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The UK could suspend visas from countries that do not "play ball" and agree to returns deals for migrants, the new home secretary has said.

Shabana Mahmood made the comments as she hosted Donald Trump's head of homeland security and ministers from Australia, New Zealand and Canada at a meeting of the intelligence-sharing Five Eyes group in London on Monday.

The talks came as the government continued to face pressure to reduce the number of people crossing the Channel in small boats.

Saturday, which was Mahmood's first full day in the job, saw 1,097 people arriving, one of the highest number of people on record.

Speaking for the first time since being appointed on Friday, Mahmood said her "top priority" is "securing" the UK's borders.

On visas, she said: "We think there is interesting space for collaborating, particularly on how we deal with countries who do not take their citizens back – so making sure we are able to return out of our countries people who have no right to be in our countries and send them back to their home countries.

"For countries that do not play ball, we have been talking about taking much more coordinated action between the Five Eyes countries.

"And for us that means the possibility of cutting visas in the future to say we do expect countries to play ball, play by the rules and if one of your citizens has no right to be in our country, you have to take them back."

The home secretary did not specify which countries could be included in any future visa suspensions.

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We've just seen Prime Minister Keir Starmer leaving Downing Street for this week's PMQs.

It will be starting at 12:00 BST and we'll bring you all the key lines here - so stick with us.

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If you're not clear on the moves at the top of the government, here's a quick rundown:

• David Lammy is now deputy PM and justice secretary
• Shabana Mahmood has become home secretary
• Yvette Cooper is now the foreign secretary
• Steve Reed becomes housing secretary
• Pat McFadden is now work and pensions secretary

We've got a fuller look at the cabinet right here.

Image source, Reuters

Last week, Angela Rayner resigned as deputy prime minister and housing secretary after it emerged that she failed to pay enough stamp duty tax on her £800,000 flat in Hove.

She has also resigned as deputy Labour leader.

Rayner departed following a report by the prime minister's ethics adviser Laurie Magnus, who has said that while Rayner "acted with integrity", she breached the ministerial code.

Magnus found that she failed to seek adequate tax advice about how much she owed on the property.

In a letter to the PM, Rayner wrote: "I deeply regret my decision to not seek additional specialist tax advice given both my position as housing secretary and my complex family arrangements."

She also said that she took "full responsibility for this error", adding: "It was never my intention to do anything other than pay the right amount."

Rayner's departure kicked off a big reshuffle of ministers at the top of government, with David Lammy leaving his foreign secretary role to replace her as deputy prime minister.

Want to know more? You can catch up on the entire story right here.

Jenna Moon
Live editor

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This week's PMQs might shape up to be a particularly fiery one for Prime Minister Keir Starmer.

It's been a chaotic week on Labour's front benches, following Angela Rayner's resignation as deputy prime minister on Friday after controversy surrounding her underpayment of stamp duty on a property she owns in Hove.

The chaos sparked a massive reshuffle of Labour's upper ranks. If you're not quite up-to-date on who went where, have a look at Starmer's new cabinet here.

Aside from probable questions about this new cabinet, expect Tory leader Kemi Badenoch to grill Starmer on immigration, as pressure continues to grow for the government to stop small boat crossings over the Channel.

We're also expecting questions from Badenoch on the economy.

It'll all kick off at 12:00 BST - stay with us here as we bring you the key lines.

You can also click watch live at the top of this page to follow all of the action.