Image source, House of Commons

Liberal Democrat leader Ed Davey is on his feet. We have all seen the "horrifying" images of children in Gaza, he says. He asks if the PM will look Trump in the eye during his state visit and urge him to influence Netanyahu to stop the conflict.

Starmer agrees the situation is "horrifying" and that we are looking at a man-made famine on top of the violence. He says that's why he is working partners to put forward a peace plan, and working to get the hostages out. He goes on to say that he'll talk to all international leaders about this.

Starmer adds that if Davey "hadn't refused the invite" to the visit, he could speak to Trump himself.

Following a biting exchange on Angela Rayner between the PM and Tory leader, Badenoch tells the Commons that Starmer's incompetence is hurting real people.

Starmer says he agrees with the Tory party chair that the Labour government are "firefighters". He says they are putting out the fires left by the last Conservative government.

Starmer says they're fighting for the "best start for every child in this country".

This is deeply awkward for Rayner - on a personal and political levelpublished at 12:29 BST 3 September

12:29 BST 3 September

Chris Mason
Political editor

The deputy prime minister’s statement and interview just before PMQs was the immediate backdrop to this week’s exchanges.

Keir Starmer placed his hand on Angela Rayner’s shoulder - and sought to defend her actions and character in Parliament.

It’s clearly deeply awkward for Rayner - the embarrassment of her about turn and having to talk about her private family arrangements.

But politically at least, the bigger issue is she is the housing secretary of all things.

Conservative leader Kemi Badenoch asked about the row, albeit packaging her question with an inquiry about the economy thrown in too.

She did briefly return to the topic in the later exchanges, but decided against binning the questions she had prepped an hour before to go all in on the Rayner saga.

Brian Wheeler
Reporting from the House of Commons

Angela Rayner seemed a bit more subdued than usual during the clashes between Badenoch and Starmer.

But she must have been pleased with the PM’s robust defence of her in the face of the Tory leader’s calls for her to be sacked.

Image source, House of Commons

Badenoch, having just had her own words read back to her from a Sunday Times interview, hits back at Starmer.

She says: "We're not the ones referring ourselves to ethics advisers - the fact is he is floundering."

Jeers fill the Chamber, and the Speaker has to intervene.

It's clear taxes are going up for all except deputy PM, Badenoch says - she also cites the former head of IFS, who says uncertainty is damaging to the economy.

She asks can the country and markets can wait until 26 November for the budget?

Starmer says Badenoch is complaining whilst they undergo due process.

"We will take no lessons from them," he says.

Starmer and Badenoch share jibes, as the PM says the leader of the opposition "can't resist talking down the country".

She responds, accusing Starmer of "dragging down the country".

Badenoch says that unemployment rates have gone up "every single month under this Labour government".

The Tory leader says markets can see that Starmer is "too weak" to control spending.

In response, Starmer recalls an interview Badenoch gave to the Sunday Times where Badenoch is quoted as saying: "I've inherited a gigantic mess, and I'm cleaning it up. It's very difficult and it's going to take a while."

"I know exactly how she feels," Starmer tells the Commons.

Image source, House of Commons

Starmer hits back at Badenoch's criticism of the economy, he says her claims are as credible as her place at Stanford University - and boos echo throughout the house.

Badenoch has been pushed by Labour this week on her being offered a place to study medicine at Stanford University in California - she insists she was offered a place.

Badenoch wants to talk down the country that has highest growth in G7, Starmer says.

Badenoch responds that the prime minister "cannot say" why government borrowing is higher under his leadership.

The Tory leader claims it is higher because Chancellor Rachel Reeves' change to fiscal rules "maxed out the country's credit card". She says former members of the monetary policy committee warn the UK is heading for an economic crash.

Badenoch asks why the PM thinks that claim is wrong.

Kemi Badenoch turns to say that if the prime minister had the "backbone" he would sack Deputy PM Angela Rayner.

Starmer says that if Rayner's circumstances were taking place within the Conservative Party, there wouldn't have been the accountability we're witnessing right now, citing Rayner's self-referral to the standards watchdog.

Brian Wheeler
Reporting from the House of Commons

Starmer and Rayner exchange a few words as Badenoch brings up the deputy PM’s tax affairs.

Starmer gives his full throated support to Rayner, who nods impassively, showing no emotion.

Prime Minister Keir Starmer is flanked by Reeves and Rayner behind him.

In response to Badenoch, he says that Rayner has explained her personal circumstances in detail and has gone "over and above".

Rayner's actions included asking court to lift confidentiality order in relation to her own son, he says, which was "difficult" and she did it to ensure all information in public domain.

That is the right thing to do, he says, and he's proud to sit alongside a Deputy PM who has risen from a working class background.

On the cost of borrowing, he says he will not take lectures from a party who crashed the economy.

Image source, House of Commons

Back in the House of Commons, where PMQs is taking place, Conservative leader Kemi Badenoch dives straight into Angela Rayner's tax row.

Badenoch asks Starmer why Rayner, his deputy, is still in office.

Moving on from Rayner, briefly, the leader of the opposition also asks when the last time the cost of government borrowing was so high.

"Following the substantial scrutiny surrounding my living arrangements, I wanted to set out the facts as openly and transparently as I can.

"Until now, an undertaking in a court order prevented me from disclosing information about certain aspects of my personal life. In the interests of public transparency, I applied to the court and I was last night released from this undertaking.

"Family life can be complicated, and it is no secret that, like many families across the country, my domestic arrangements reflect these complexities. Throughout my career, I have always tried to be the best mum to my children, while managing the demanding realities of public service.

"There has been a lot of speculation in recent days about my domestic arrangements and in particular the home I share with my ex-husband and my family. While I do not find it easy to publicly discuss personal and sometimes distressing family matters, I have always taken my responsibility as an MP and Deputy Prime Minister seriously and tried to be as open as possible while protecting my family. To address the allegations made against me I have now taken the difficult decision to explain why my arrangements are as they are.

"In 2023 my ex-husband and I divorced. As parents who have been through divorce will understand, the top priority for both of us during that process was the wellbeing of our children and helping them navigate this change. To provide maximum stability during this transition, we agreed to a nesting arrangement where the children remain in the family home full-time while we alternate living there. We also wanted to ensure that our child, who has special educational needs, was provided for as part of the divorce settlement.

"A court-instructed trust was established in 2020 following a deeply personal and distressing incident involving my son as a premature baby. He was left with life-long disabilities, and the trust was established to manage the award on his behalf - a standard practice in circumstances like ours.

"To ensure he continued to have stability in the family home, which had been adapted for his needs, we agreed that our interest in the family home would be transferred to this court-instructed trust of which he is the sole beneficiary.

"Some of the interest in our family home was transferred to the trust in 2023. In January 2025, I sold the remaining interest in the property to my son’s trust. This will give him the security of knowing the home is his, allowing him to continue to live in the home he feels safe in and grew up in. We transferred the property because it was in the best interests of our child. I acted as any parent would.

"The sale of the property in Ashton-under-Lyne to the trust has not altered my family life. It remains my family home, as it has been for over a decade. It contains the majority of my possessions and it is where I am registered for most official and financial purposes ranging from credit cards to the dentist to the electoral roll. But most importantly, it is where my children live and have gone to school and now college, and where I regularly live while caring for them.

"After I sold my stake to the trust, I bought a property in Hove in May 2025 . Like many people, I used the lump sum from selling my stake in my Ashton home, which was the only property I owned and where my savings were, for the deposit on my new one. I obtained a mortgage to finance the rest.

"When purchasing the property my understanding, on advice from lawyers, was that my circumstances meant I was liable for the standard rate of stamp duty.

"However, given the recent allegations in the press I have subsequently sought further advice from a leading tax counsel to review that position and to ensure I am fully compliant with all tax provisions. I have now been advised that although I did not own any other property at the time of the purchase, the application of complex deeming provisions which relate to my son’s trust gives rise to additional stamp duty liabilities. I acknowledge that due to my reliance on advice from lawyers which did not properly take account of these provisions, I did not pay the appropriate stamp duty at the time of the purchase. I am working with expert lawyers and with HMRC to resolve the matter and pay what is due.

"The arrangements I have set out reflect the reality that family life is rarely straightforward, particularly when dealing with disability, divorce, and the complexities of ensuring your children’s long term security. Every decision I have made has been guided by what I believe to be in my children’s best interests.

"I deeply regret the error that has been made. I am committed to resolving this matter fully and providing the transparency that public service demands. It is for that reason I have today referred myself to the Independent Adviser on Ministerial Standards, and will provide him with my fullest cooperation and access to all the information he requires."

Brian Wheeler
Reporting from the House of Commons

Prime Minister Keir Starmer is on his feet at the dispatch box in the Commons.

All eyes have been on Angela Rayner as she took her seat on the front bench seconds before Keir Starmer and Rachel Reeves arrived, to cheers from Labour MPs.

No sign of any interactions between the PM and his deputy so far.

Image source, Reuters

Keir Starmer is set to face his first Prime Minister's Questions since the Parliamentary summer recess, hot on the heels of an eventful morning in UK politics.

It comes after deputy PM Angela Rayner has referred herself to the standards watchdog after admitting she did not pay enough stamp duty on her second home.

Also this morning, the Treasury's announced that Chancellor Rachel Reeves will deliver the autumn Budget on 26 November.

The political back-and-forth in the Commons will be the first after seven weeks away from the dispatch box, as Starmer is set to face questions from Conservative leader Kemi Badenoch.

PMQs is due to start in the next few minutes, at 12:00 BST, we'll bring you all the key lines and analysis here – and you'll be able to watch live at the top of the page.

We can bring you some more now from Angela Rayner, who has been asked directly if she considered resigning over the error. She says: "Well, I made a mistake based upon the advice that I relied upon that I received at the time, and a leading expert has now said that advice was wrong."

She adds that "hopefully most people can see" that she made a mistake based on advice given to her by lawyers, and that by referring herself she is "rectifying it at the earliest opportunity".

"People make mistakes, but I conducted myself in trying to do the right thing, and I hope that people can see that," Rayner says.

Image source, PA Media

Rayner's decision to refer herself to the standards watchdog comes after heightened scrutiny of her housing and tax affairs in recent weeks.

The Daily Telegraph reported, external she saved £40,000 in stamp duty when buying a £800,000 flat in East Sussex, after allegedly telling tax authorities it was her main home.

She told the local council it was her second home - and pays a higher level of council tax there as a result.

There is no suggestion she has broken any laws, but the Tories accused her of hypocrisy and called for an investigation by the PM's standards adviser.

A spokesperson for Rayner previously said she paid "the relevant duty" owed on the Hove property "entirely properly".

As secretary of state for housing, communities and local government, Rayner is responsible for council tax and housing policy, and the row comes after the government increased the additional rate of stamp duty for buying a second home in last autumn's Budget.

Rayner acknowledges that she did not pay the correct tax on the flat in Hove, East Sussex, but says it was not an attempt to "dodge tax".

Explaining the situation, Rayner tells reporters that a home in her constituency (Ashton-under-Lyne) was put into a trust for her son following a divorce, and now says the financial and tax advice she got was incorrect.

Here's what else she says:

"I relied on legal advice I received which said that I was liable to pay the standard stamp duty. Subsequent to that, with all the media reports, I took expert counsel on all of my affairs to ensure that everything was done proper, and that expert counsel said the advice I received was inaccurate because of the trust.

"I don't own the property. I only own one property which is mortgaged... but because of the nature of the trust which was set up by the court that I would be liable to pay the additional stamp duty.

"As soon as I knew that was the case, I alerted and referred myself to the independent advisor on the ministerial code to ensure they can look transparently on what has happened and I also contacted HMRC to say there is tax owing on that and I am prepared to pay that."

Asked specifically if she was "trying to dodge tax", the housing secretary responds: "No, the trust was set up by a court to provide for my son after an injury."

We can bring you a bit more now from Angela Rayner - who's spoken to reporters on this issue.

The deputy PM, who's also the housing secretary, says the row over her taxes has been "quite distressing" for her and her family.

She admits she didn't pay enough stamp duty on her flat in Hove, but that she was not trying to "dodge tax".

She also says she followed expert advice she was given when buying the new home.

Deputy PM Angela Rayner refers herself to the standards watchdog after admitting she did not pay enough stamp duty on her second home.

Two key challenges for Reevespublished at 11:25 BST 3 September

11:25 BST 3 September

Dharshini David
Deputy economics editor

As the chancellor acknowledges, the resurgence of inflation - which economists expect to hit 4% before subsiding - means the rising cost of living remains a problem for many.

Yet, her own Budget measures appear to have contributed to that. Analysis by the Bank of England suggests the increase in employers' National Insurance and minimum wages may in part explain why food price inflation is higher here than in the EU.

And that persistence of inflation underpins hesitation from the Bank of England to cut rates, which in itself causes two challenges for the chancellor.

First: Growth may be slower than otherwise. While the economy expanded at a faster rate than many expected in the first half of the year, growth on the whole remains underpowered, contrary to the government’s hopes.

And anxiety about the contents of the Budget may also risk businesses and households being reluctant to spend over the budget; a recent official survey found that economic uncertainty was the biggest concern business had.

Second: The cost of government borrowing may be higher than otherwise - potentially increasing the size of Budget tax rises.

Lower inflation, higher growth and fiscal stability are on every chancellor’s wish list; achieving all three is tricky.