UK politics live: Furious Chagos Islands row erupts as Tories accused of risking losing key air base in courts

A former political secretary to Tony Blair was also on the morning media round discussing Sir Keir Starmer’s freebies row.

John McTernan said the problem was not rules being broken but the public perception.

The political strategist told the BBC Radio 4’s Today programme: “Politicians have to not only act by the rules, they have to act by community standards.

“There’s no doubt in my mind that voters are angry, the community’s angry, about what they see as double standards.

“The absolute fundamental rule of politics is the voters are never wrong. Rule one of politics is the votes are never wrong. Rule two, if you’re angry because you think the votes are wrong, please refer to rule number one.”

And voters’ anger has been noticeable in recent polls, with Sir Keir’s personal ratings dropping 45 points since July to -26, according to Opinium.

Minister Sarah Jones has insisted that the prime minister has not “broken any rules” despite paying back £6,000 worth of gifts and hospitality.

She told Sky News: “I think under the last government, the issue was always about transparency, people not declaring things, people not going by the rules.”

The industry minister added that Labour is considering the rules on freebies but they have been “incredibly busy”.

However, she added: “[The PM] is looking again at the principles around gifts and hospitality.

“That’s the right thing to do.”

Angela Rayner’s trip to an Ibiza nightclub where she was spotted partying in a DJ booth over the summer was a freebie worth hundreds of pounds, it has emerged.

In the latest register of MPs’ financial interests revealed on Wednesday, the deputy prime minister declared she received £836 worth of hospitality for a “visit to (a) DJ booth” at nightclub Hi Ibiza.

It was paid for by Ayita LLC, which is the agent of DJ Fisher, who she was filmed dancing with in footage of the event on 29 August that was shared on social media.

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Business minister Sarah Jones has defended Lord Alli, claiming the Labour peer is “confident” he had done nothing wrong.

The fashion mogul is under investigation by the Lords’ commissioner over “alleged non-registration of interests” which could lead to a breach of the members’ code of conduct.

During the morning media round, she said: “He will completely cooperate with that investigation, of course, and he’s confident he’s registered everything in the way that he should have done.

“And that’s that, really. We need to let that investigation run its course.”

With Sir Keir Starmer facing questions over ethics and transparency for accepting generous gifts, the Tories have not lost time in calling for more ministers to repay freebies.

The Conservative party said in a statement: “Day after day more and more comes out about the scandal at the top of Keir Starmer’s government. This scandal has become a complete distraction from the job of governing.

“It appears Starmer will only be transparent when his backs against the wall. This announcement today poses more questions than it answers. Why did Starmer take these freebies in the first place? Why haven’t Angela Rayner and other senior party members not paid back donations?”

The Conservatives have a lot of experience of donation scandals. The party had previously faced scrutiny under Boris Johnson over Tory donors and their alleged links to corruption.

Interest rate cuts could become “more aggressive” sparking falls in the value of the pound, the Bank of England boss has warned.

He said the Bank could move towards a “more activist” approach and reduce borrowing costs if inflation remains in check.

The warning comes as the pound fell by nearly 1% against the US dollar and the euro – to 1.317 US dollars and 1.193 euros respectively.

Mr Bailey recently said the Bank would only lower rates “gradually”, with the Bank reducing rates by 5% from 5.25% in August, marking the first reduction since March 2020, after inflation returned to the 2% target.

Inflation has since edged back up to 2.2% and experts have been forecasting just one more rate reduction before the year end, to 4.75%.

But the ongoing conflicts in the Middle East have inevitably shaken markets.

Steep rises in the cost of oil after Israel’s attempt to invade southern Lebanon have prompted Mr Bailey to monitor the situation “extremely closely”.

Mr Bailey told The Guardian: “Geopolitical concerns are very serious. It’s tragic what’s going on. There are obviously stresses and the real issue then is how they might interact with some still quite stretched markets in places.”

Industry secretary Sarah Jones has attempted to dismiss criticism towards ministers accepting thousands of pounds worth of gifts.

After admitting that she would investigate whether to repay a BBC’s Proms ticket, Ms Jones told Times Radio: “There is a difference between government and opposition when you’re building relationships in opposition.

“It’s different for when you’re a government minister with real levers of power. And we need to make that distinction.

She added: “There is this difference, I think, which is an important one between opposition and government.”

Labour MPs who disagree with Sir Keir Starmer on the Israel-Palestine conflict are “scared for their jobs”, suspended Labour member Zarah Sultana has said.

The Jeremy Corbyn ally has been a fierce critic of Israel’s ongoing war on Gaza and championed for a full arms embargo to Israel in parliament.

Ms Sultana, who now sits as an Independent, said “many” Labour MPs agree with her stance but felt unable to go public through a fear of losing their jobs.

When asked how many Labour MPs agree with her views, she told BBC Radio 4’s Today programme: “Many do because we are seeing death of 41,000 Palestinians in Gaza. We are seeing death in Lebanon and we know the UK government could take a different route where it prioritised lives, treated them all equally and ended all arms sales.

“I think it’s deeply concerning that people aren’t willing to be public about that because they are scared for their jobs.”

Earlier on the programme, Nick Robinson said the BBC had contacted six sitting Labour MPs who were highly critical of Sir Keir Starmer over his stance on Israel, but added: “None would come on the programme as they said, and I quote one of the MPs we contacted, ‘it would cost us our jobs’.”

The former Labour MP received a six-month suspension in July alongside seven other members who rebelled against Sir Keir to scrap the two-child benefit cap.

Labour seems to have a new weapon under its sleeve to turn opinion polls around.

The government is teasing a “major investment announcement” which Labour promises will “spark the creation of thousands of jobs and igniting growth in industrial heartlands of the UK”.

There are little details of what exactly the policy will be. But energy secretary Ed Milliband will make the big announcement tomorrow alongside the prime minister and chancellor.

Ministers promised that the mysterious changes will end “years of blockage and stagnation by successive Conservative governments, too mired in internal politics to seize the opportunities of the future”.