UK politics live: Centrist Tories reject both leadership rivals as Jenrick attacks Badenoch’s ‘needless drama’

Rachel Reeves is reportedly considering a significant rise in capital gains tax (CGT).

As Labour faces growing pressure to find funding for strained public services, the chancellor could hike the tax as high as 39 per cent.

Treasury reports, seen by The Guardian, suggest officials are examining CGT rates in the range of 33 per cent to 39 per cent, far higher than current levels.

The tax, which affects around 350,000 people and is levied on the sale of assets like second homes and shares, currently operates at much lower rates than income tax.

With a looming £25 billion fiscal gap highlighted by the Institute of Fiscal Studies (IFS), Labour’s budget preparations are increasingly focused on wealth taxes.

Although Sir Keir Starmer and Ms Reeves have promised not to raise taxes for “working people”, other tax options, such as targeting non-domiciled individuals or private equity, have faced setbacks.

In a faux pas bordering on farce, the opposition finds itself faced with a choice between two hard right-wingers differing only in the extent of their extremism, writes Sean O’Grady:

The Tory Reform Group (TRG), representing One Nation Conservatives, has declined to endorse either Robert Jenrick or Kemi Badenoch in the leadership race.

The TRG, a traditionally centrist faction within the party, criticised both candidates for straying too far from the party’s core values.

In a statement, the group said it had “engaged extensively” with all leadership hopefuls but was left unimpressed by the two finalists, accusing them of adopting a rhetoric that diverges from the principles that define the Conservatives.

The TRG said: “As the home of One Nation Conservatism since 1975, the TRG is committed to being radically moderate, values-driven, and focused on the future.

“Throughout the contest, we have sought to engage extensively with all the leadership campaigns in order to understand the views and approaches of the candidates. Unfortunately, we have been consistently disappointed by the lack of engagement from the two candidates chosen by MPs.

“TRG members were consulted throughout the process, and the results clearly show that neither candidate has secured widespread support from the majority of our membership.

“Both have used rhetoric and focused on issues which are far and away from the party at its best, let alone the One Nation values we cherish and uphold. Therefore, the board of the TRG has unanimously concluded that we are unable to endorse either candidate.”

Robert Jenrick has rejected suggestions that Tory MPs mistakenly backed him for the final two in the leadership race, following speculation about internal “horse trading”.

Speaking after a speech today, he was asked whether he could have made it to the final by mistake.

The former immigration minister acknowledged that there is always some manoeuvring in such contests but was confident that MPs ultimately chose him based on his leadership credentials.

In response to a question on his strengths compared to frontrunner Kemi Badenoch, Mr Jenrick emphasised his focus on key voter concerns such as the NHS, immigration, and the economy, suggesting his campaign’s broader appeal compared to his rival’s.

“I believe my colleagues voted for the candidates best placed to lead the party forward,” he said, adding that he was “immensely grateful” for the trust.

So cautious and moderate was former immigration minister Robert Jenrick when he entered the Commons that he was nicknamed “Robert Generic”.

He ticked every box of the Conservative cliche. A history graduate from Cambridge and a qualified solicitor, he joined parliament as the MP for Newark in 2014.

He voted to remain in the EU, and backed Theresa May’s Brexit deal three times.

He has served as a minister, in multiple departments, under every prime minister since 2017. It is no surprise that he has long been considered a moderate within the party.

You can read the full analysis below:

Nato’s secretary general has claimed that a “one weapon system will not change the course” of the Ukraine-Russia war.

Mark Rutte responded to questions about president Zelensky’s requests for long-range missile use against Russia.

He highlighted the broader coalition effort, claiming: “The UK is providing £3 billion a year in military aid, alongside training. The entire alliance is contributing.”

Mr Rutte added: “Let’s not focus on one system, one weapon system, it will not be one weapon system which will make the change.

“So I understand what Zelensky is asking, but at the same time, he also agrees that there is a broader issue to be debated to make sure that they prevail.”

Downing Street has avoided directly addressing Ukraine’s request to use Storm Shadow missiles against targets in Russia, instead claiming that “no war has ever been won by a single weapon”.

While the UK is supportive of Ukraine’s use of Western missiles, the US has expressed concerns about potential escalation.

During a press briefing, the prime minister’s spokesman stressed the importance of comprehensive support.

He added: “The discussions that the UK, Ukraine and international partners are having are about all the range of support that we can provide Ukraine heading into the crucial winter months ahead.”

Nato secretary general Mark Rutte clarified that Ukraine is legally entitled to use Western-supplied long-range missiles against targets in Russia.

Speaking at Downing Street, he said: “Legally that is possible because legally Ukraine is allowed to use its weapons, if they can hit targets in Russia, if these targets present a threat to Ukraine.

“But whether individual allies do, that’s in the end, [is] always up to individual allies. Of course we discussed this. I was last week in Kyiv. We discussed it today, but in the end, it is up to the individual allies.”