Adam Fleming
Brussels reporter

Image source, AFP

The EU will have to make cuts to its budget, shift expenditure and find new sources of revenue to cope with Brexit and the challenges of terrorism and migration, according to a paper released by the European Commission today.

The UK’s departure will leave a hole in the accounts of €10-12bn a year – around 16% of the EU’s income - but officials cannot calculate the true impact until more progress is made in the withdrawal negotiations.

The Commission has set out a range of options on revenue and expenditure, including less generous payments to farmers, a tax on financial transactions and new environmental levies. However, the budget process will be simplified because of the disappearance of the UK’s rebate. Officials will now consult member states and the European Parliament. They hope the Brexit effect will be clearer by the end of the year and a draft budget for the years 2020 and beyond will be proposed by next Summer.

House of Commons
Parliament

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Home Secretary Amber Rudd now speaks in the debate.

She strikes a conciliatory tone to begin with by agreeing with Diane Abbott's praise of the emergency services.

Ms Rudd then addresses the attacks of Ms Abbott, saying that at the Grenfell fire, fire crews were on the scene within six minutes, asking how Diane Abbott can suggest that numbers were "inexcusably low".

She adds that the number of fire incidents has halved in the last decade but the number of firefighters has reduced by 20%, and adds that government doesn't recruit fire staff - chief officers do.

"Public safety is an absolute priority for this government," she says.

"On my watch the police and fire services will have the resources they need."

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Liberal Democrat Sir Ed Davey intervenes to say that the Metropolitan Police Commissioner has spoken for the need for more resources and asks if she has ever heard the Met Commissioner demanding more resources so publicly.

Diane Abbott agrees that it is unprecedented, before her Labour colleague Ian Austin asks if Sir Ed Davey is related to the same person who was in the coalition government which presided over public sector cuts.

Ed Davey was energy secretary in the coalition government, as well as a business minister.

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Parliament

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Plaid Cymru's Jonathan Edwards intervenes on Ms Abbott and says his party intends to support Labour's amendment and that he agrees with much of what she is saying.

But he then asks why in Wales, where Labour are in government, the number of firefighters has been cut by 20%.

Ms Abbott begins by saying it is not for her to speak on this in Westminster - which prompts jeers from Conservative MPs.

She then says that funding to the Welsh government has been cut.

Image source, Reuters

Talks to restore Northern Ireland's devolved government are going down to the wire, with just one full day left for parties to reach an agreement.

Discussions have been taking place to bring back power-sharing at Stormont before Thursday afternoon's deadline.

On Tuesday, Sinn Féin warned that the Democratic Unionist Party (DUP) had not moved on any of the main issues at the centre of the political crisis.

The DUP encouraged Sinn Féin to "come back from the brink".

The parties called time on negotiations shortly after 22:30 BST, with plans to resume on Wednesday morning.

Read more here.

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Former Ch Supt David Duckenfield faces 95 charges of manslaughter and five other senior figures will be prosecuted over the 1989 Hillsborough disaster.

Mr Duckenfield was match commander at the FA Cup semi-final when 96 Liverpool fans were fatally injured in a crush.

Ex-South Yorkshire Police (SYP) Ch Insp Norman Bettison, two officers, a solicitor and a Sheffield Wednesday club secretary also face charges.

The Prime Minister said it would be a day of "mixed emotions" for families.

Read more here.

The Daily Politics

Labour's Jenny Chapman insists the Grenfell Tower tragedy "is political" because political decision were made about tower blocks and there could be a link to austerity, despite claims cladding began under Labour.

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Shadow home secretary Diane Abbott rises to move Labour's Amendment I, external to today's debate on the Queen's Speech, which calls for the government to end the public sector pay cap and give the emergency and public services a "fair pay rise".

Ms Abbott says that we have seen in recent months that in times of public and personal crisis it is public sector workers that the public turns towards.

She says it is one thing to praise these workers at times of crisis; "but we need to treat them fairly every other day of the year".

Andrew Neil
Presenter, The Daily Politics

The Daily Politics

BBC Political Editor Laura Kuenssberg says Theresa May tried for the first time today to "push back" against the idea that austerity is linked to the Grenfell Tower tragedy, when she said cladding began under the Blair government.

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The penultimate question came from Conservative MP Peter Bone - quoting a new survey says 75% of British people now support leaving the European Union. Mrs May says there is a unity of view across the country to "just get on a deliver" on the EU referendum result.

The final one came from former Labour frontbencher Rachel Reeves about the Jo Cox commission's work on tackling loneliness. Mrs May agrees with the good work being done.

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The length of PMQs is now becoming exceptionally long.

Here are the running time of the last three:

PMQs 29 March - 55 mins

PMQs 18 April - 44 mins

PMQs 26 April - 56 mins

PMQs 28 June - 50 mins

Mrs May is quizzed by the DUP's Nigel Dodds on resources for mental health services and suicide rates in Northern Ireland.

Theresa May insists the government's commitment to Gibraltar will not waver, after a question from Tory Bob Neill.

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Labour's Barry Sheerman quizzes Mrs May on the Brexit talks, giving her the chance to list what her team has done so far in Brussels and claim that Labour doesn't know what it's plan for Brexit is.

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Prime Minister's Questions used to be a half hour session - not any more it seems. We have now gone on for more than 50 minutes.

At one time the Speaker used to justify overruning on making up for time lost controlling rowdy exchanges - this session today hardly featured any stoppages. Even Sir Alex Ferguson never got 20 minutes of injury time (or did he?).

EU nationals need "clarity" on the government's Brexit offer, says Ealing Labour MP Rupa Huq, who also asks why they will not be able to vote in local elections.

Mrs May says they will have the same rights as UK citizens.