The Resolution Foundation, a UK think tank, has advised Chancellor John Healey that raising taxes on middle earners is necessary to fund the government's pledge to spend 3.5% of GDP on defence by 2035. The report argues that despite recent tax increases, the UK's tax burden on average workers remains low by international standards, and meeting the defence pledge would require contributions from average earners. This comes as Healey prepares his first budget on 28 October, facing pressure to fund defence while adhering to Labour's pre-election promise not to raise income tax, VAT, or employee national insurance.

Available spaces in male prisons in England and Wales have fallen to about 1,500, the lowest this year, as the government adjusts its early release scheme to exclude manslaughter convicts. Justice Secretary Alex Norris announced plans to convert unused spaces into cells and end IPP sentences, while the Prison Officers' Association warns of staffing shortages. Prisons are running at 97% capacity.

The UK government announced a £110m investment to convert unused spaces like laundry rooms and offices in existing prisons into cells, aiming to alleviate overcrowding in England and Wales. Justice Secretary Alex Norris outlined changes to the early release scheme, excluding serious offenders, and confirmed a new 1,700-place prison in Lancashire. Prisons are at 97% capacity, with 4,500 prisoners expected to be released early from October. The move has drawn criticism from prison staff over staffing shortages.

Background: Scotland released 614 prisoners early under an emergency program from November to April to ease overcrowding, but the prison population rose to over 8,456, with governors vetoing 40% of eligible releases due to high risk. Today: The Scottish government is proposing to change the automatic release point for long-term prisoners (those serving four years or more) from parole eligibility at half the sentence to automatic release at two-thirds of the sentence, which would apply to serious offenders including those convicted of rape, culpable homicide, and child abuse. If approved, at least 630 prisoners would be freed immediately. Another proposal would change the short-term prisoner designation to those serving under five years. First Minister John Swinney has signaled a possible change of heart on exemptions for sex offenders and domestic abuse offenders, following calls from victims' groups. The proposals come as Scotland's prison population exceeds 8,500 against a designed capacity of 7,805, with two new jails under construction and modular accommodation being considered. The government has completed a consultation and is drawing up proposals for parliament.

Nigel Farage, leader of Reform UK, is facing questions about his claim that his finances were under a second standards investigation when he resigned as MP. Reports suggest the parliamentary standards commissioner had not launched a new investigation or widened the existing one at that time. The original inquiry concerns a £5m gift from donor Christopher Harborne, with separate complaints about funding from convicted fraudster George Cottrell. Farage has maintained the videos were personal and likened his public role before that election to the work of an influencer. Critics say these should be declared under rules that say donations related to politics must be registered in the 12 months before an MP is elected. The standards commissioner declined to comment on the status of the investigation into Farage and whether any decision had been made on widening the inquiry. If there is no second investigation nor a widened scope, it is possible the first investigation into Farage could conclude sooner than expected. Alex Burghart, the shadow chancellor of the duchy of Lancaster, said: "The questions surrounding Nigel Farage’s £5m gift from Christopher Harborne and the donations from George Cottrell simply aren’t going away. Farage has already tried to run away with his farcical byelection in Clacton, but he can no longer hide from these questions. He needs to come clean … The public deserves answers and Farage can’t keep hiding." If the standards commissioner finds a breach of the rules, and the separate standards committee of MPs recommends a sanction of more than 10 days of suspension from parliament, Farage could end up facing a second byelection. As he was sworn in again on Tuesday, Farage told GB News that he planned to spend less time in parliament and would be leaving more Westminster work to Richard Tice and the gang while he goes on a tour of the country. Farage will set his priorities for the year ahead when he gives his speech at the Reform party conference at the end of this week, where he is expected to attempt to draw a line under the focus on his finances.

Range Rover has launched its first fully electric model, the Range Rover Electric, after a year-long delay, marking a major step in parent company JLR's electrification programme. The vehicle will be built in Solihull, UK, and is supported by new battery and electric drive unit production lines at JLR's Electric Propulsion Manufacturing Centre in Wolverhampton. JLR has up-skilled 10,500 workers for electric production, including 9,000 in Solihull. However, the company faces financial pressures, with first-quarter profits dropping to £66 million after a fire at a Norwegian supplier, and is undergoing restructuring with fewer than 300 job cuts following a cyber attack last year that halted production for over a month.

UK consumer group Which? successfully created and maintained a fake Booking.com listing for 10 Downing Street for two months, demonstrating the platform's vulnerability to fraudulent listings and phishing scams. The listing, which included a fake review and an external payment link, was not removed until 27 August despite clear signs of fraud. Which? criticizes Booking.com's security as 'unfit for purpose' and is calling for stronger enforcement under the Online Safety Act, while Booking.com defends its security measures.

Background: The UK Ministry of Defence cancelled the Type 83 destroyer programme, replacing it with a hybrid fleet of six crewed Common Combat Vessels and uncrewed platforms, with a possible life extension for Type 45 destroyers. New development: The MoD has allocated specific funds in the Defence Investment Plan for a study on the transition from Type 45 destroyers to the future CCVs. The study will determine whether the six Type 45 destroyers should remain in service beyond 2035, with a verdict expected by 2028. This follows the cancellation of the Type 83 programme and the shift to CCVs. The study reflects uncertainty over the unproven CCV concept, which relies on uncrewed systems and advanced communications, and comes amid ongoing modernization of the Type 45 fleet, including propulsion improvements, radar and combat system upgrades, integration of Sea Ceptor missiles and potential ASTER 30 B1NT, and the addition of the DragonFire laser weapon.

Retired US General David Petraeus told the House of Lords that Britain should become the first major Western country to reorganize its defence institutions around lessons from the Ukraine war and help drive a wider NATO transformation. He described Ukraine as the defining military laboratory of the 21st century and called for NATO to develop a common understanding of the new concept of warfare.

The UK has doubled the maximum fine the Office of Financial Sanctions Implementation (OFSI) can impose for sanctions violations, from 50% to 100% of the transaction value. The move, announced by Chancellor John Healey at the G20 summit, is part of efforts to increase economic pressure on Russia over its war in Ukraine. The UK also issued a nationwide alert about the Kremlin-backed A7 network, which is used to evade sanctions and is linked to Iranian state actors.

Ireland has begun high-level talks with Britain about joining the Joint Expeditionary Force (JEF) as an observer within the JEF+ grouping, focusing on maritime security cooperation to counter hybrid threats like drone incursions and protect undersea infrastructure. The move follows Ireland's National Maritime Security Strategy and concerns over Russian activity near transatlantic data cables. Ireland, which is not a NATO member and maintains military neutrality, would not join the force's core elements. The JEF, established in 2014, brings together ten nations and operates outside NATO's command structure, offering political flexibility that makes Irish association possible.

Background: China had initiated its first regular container service along Russia's Northern Sea Route, with vessels like 'Sea Legend' sailing from Ningbo to Felixstowe in about 20 days, offering a faster alternative to Suez but increasing dependence on Russia. Today: Chinese shipping company Sea Legend has formally launched the first regular Arctic container line, with the vessel Dubai Tower departing Ningbo on August 15 and traversing the Sea of Siberia en route to the UK. The service operates weekly from mid-August to early October, cutting travel time to about 20 days versus 27 via Suez, but faces challenging navigation conditions including ice, fog, and blizzards. The first regular voyage, operated by Sea Legend, departed Ningbo on August 15 and was traversing the Sea of Siberia on August 31, with the vessel Dubai Tower heading to the UK. Weekly departures are scheduled from mid-August to early October, when navigation is possible without icebreaker assistance. The route's travel time is about 20 days versus 27 days via Suez for an equivalent non-stop journey, according to the Centre for High North Logistics at Norway's Nord University. The service faces challenges including unpredictable ice, strong winds, fog, and blizzards, with limited rescue resources in the remote Arctic.