Rayner attacks Dowden over "Tory mortgage bombshell" Angela Rayner points out the last time the deputies stood in at PMQs two weeks running was in 1996. She says she’s proud to be in the same place John Prescott once stood, before pointing at Oliver Dowden: “He’s no Heseltine.” Inspired by John Prescott’s question back in 1996, she points out that “tens of 1000s of families are facing repossession and homelessness” due to the ‘Tory mortgage bombshell”. Oliver Dowden says he won’t take a lecture on housing policy from the Labour party and points out that his parents would not have been able to buy their own home if it were not for Margaret Thatcher. Summary Here’s a summary of today’s events: During PMQs, Angela Rayner pointed out the last time the deputies stood in at PMQs two weeks running was in 1996. She says she’s proud to be in the same place John Prescott once stood, before pointing at Oliver Dowden, standing in for Sunak: “He’s no Heseltine.” Inspired by John Prescott’s question back in 1996, she pointed out that “tens of 1000s of families are facing repossession and homelessness” due to the “Tory mortgage bombshell”. The UK prime minister, Rishi Sunak, gave a standalone press conference in Vilnius. From a UK perspective Sunak said “we are the leading European contributor to Nato” and said that British people should know how appreciated that is within the alliance, as one of the only nations that contributes to every Nato mission. The prime minister has shut down comments by the defence secretary after Ben Wallace suggested Ukraine should show “gratitude” for the military support it has been given. Rishi Sunak said the Ukrainian president Volodymyr Zelenskiy had “repeatedly expressed gratitude” for what the UK had done for Kyiv since Russia’s invasion broke out more than 500 days ago. Nadine Dorries has been reported to the chief whip and Commons speaker after allegedly sending “forceful” emails to the government about not being given a peerage. In a highly unusual move, the cabinet secretary, Simon Case, revealed he had “flagged” the issue to the parliamentary authorities, and also asked for advice about any potential breach of the law. Michael Gove’s department is handing back £1.9bn to the Treasury originally meant to tackle England’s housing crisis after struggling to find projects to spend it on. The Department for Levelling Up, Housing and Communities (DLUHC) has surrendered hundreds of millions of pounds budgeted for 2022-23, including £255m meant to fund new affordable housing and £245m meant to improve building safety. Jeremy Hunt has told ministers there will be no extra money to give millions of public sector workers an average 6% pay rise, potentially leaving departments facing a difficult choice between raising salaries or cutting frontline services. Rishi Sunak is set to host all Tory MPs for morale-boosting hog roast at Downing Street tonight. He’s due to fly back to the UK from the Nato summit this evening in time to welcome his guests and try to instil some positivity over his party’s struggle to recover in the polls and the prospect of them potentially losing in all three by-elections taking place next week on 20 July. The Civil service chief, Simon Case, said the last five years had seen a deterioration in relations between officials and politicians, although he added the situation had improved since Rishi Sunak became prime minister. That’s it for me for today. Thanks so much for joining me. Almost 1 million UK homeowners will be forced to shell out at least £500 more a month to cover mortgage payments by the end of 2026, as borrowers suffer the consequences of rising interest rates, the Bank of England has warned. Forecasts released on Wednesday showed that of the 4 million homeowners expected to roll on to new mortgage contracts over the next three years, the majority will be paying up to £220 more a month to cover the mortgage by the end of this year because of the difficulty of finding contracts with comparable rates. The payments of more than 1 million borrowers are likely to rise by more than twice that amount by the end of 2026. Markets are increasingly betting that policymakers at the Bank raise interest rates beyond the current level of 5% to a peak of 6.25% in early 2024 in order to combat stubbornly high inflation. The average two-year fixed mortgage rate rose to 6.7% on Wednesday – the highest level since the middle of the financial crisis in August 2008, according to data from Moneyfacts. However, the Bank governor, Andrew Bailey, said higher payments were part of the wider economic trade-off of trying to tame price growth. He said: It is going to have an impact, clearly. That is part of the transmission of monetary policy, no question about that. And I’m going to come back to the point we’ve made a number of times … we are trying to balance having the transmission function of monetary policy with two things … one is the resilience of the banking system, and two, its ability to support customers and manage the consequences of this. But there still will be consequences of increased interest rates. The prime minister has shut down comments by the defence secretary after Ben Wallace suggested Ukraine should show “gratitude” for the military support it has been given. Rishi Sunak said the Ukrainian president, Volodymyr Zelenskiy, had “repeatedly expressed gratitude” for what the UK had done for Kyiv since Russia’s invasion broke out more than 500 days ago. Wallace, in comments to reporters at the Nato summit in Vilnius, suggested Zelenskiy needed to be mindful about keeping “doubting politicians” in the US on-side, particularly with a presidential election coming up next year. The former Scots Guard said some allies providing defensive aid to Kyiv “want to see gratitude”. But Sunak, in a push back against his cabinet minister, said the Ukrainian people were “incredibly grateful for the support we have shown”. Members of the NASUWT teachers’ union have voted in favour of industrial action over pay and workload, raising the prospect of mass strikes and widespread disruption across schools in England this autumn. After months of stalemate with no progress over teachers’ pay, NASUWT members voted decisively for industrial action, with 88.5% of eligible members voting to support strike action and 94.3% supporting action short of strike. The union will now draw up a programme of industrial action short of strike action starting in September, which will mean teachers working to rule. The NASUWT will also discuss the possibility of coordinated strike action with other education unions during the autumn term. Negotiations between the Department for Education and the unions ended in March, with the NASUWT, the National Education Union, the National Association of Head Teachers and the Association of School and College Leaders (ASCL) all decisively rejecting the government’s offer of a 4.3% pay rise and £1,000 one-off payment. Since then the government has refused to reopen talks, with the education secretary, Gillian Keegan, saying ministers would wait for the School Teachers’ Review Body (STRB) recommendations before making a further pay offer for the 2023-24 school year. Boris Johnson’s vacated Uxbridge and South Ruislip seat is one of three up for grabs next week, but the contest for the west London constituency is leading to particularly frayed nerves among both the Conservatives and Labour. Of the three byelections for Tory-held seats on 20 July, Labour’s best chance of winning appears to be in the “metroland” constituency, which was sprinkled with Johnson’s political stardust for more than eight years, before his rapid fall from grace. Recent polling has put the party’s Danny Beales eight points ahead of his Tory rival. But a rearguard action by the Conservatives is seeking to frame the contest as a mini-referendum on opposition to the London mayor Sadiq Khan’s expansion of the ultra-low emission zone (Ulez) to rest of the city. One Labour source said: I go through days where I think we are doomed, and then days where I think we are actually going to do this. But it’s going to be close and I don’t think it is going to be a huge victory for either party. Ultimately, the source believes the Tories are overplaying the Ulez card and that concern about it will be trumped by those about the cost of living crisis and interest rate rises, particularly among younger families who have changed the seat’s demographics. Home to significant numbers of retirees – and with pockets of deprivation and prosperity – ethnically diverse, leave-voting constituency would be a particular fillip for Keir Starmer’s project. Nadine Dorries has been reported to the chief whip and Commons speaker after allegedly sending “forceful” emails to the government about not being given a peerage. In a highly unusual move, the cabinet secretary, Simon Case, revealed he had “flagged” the issue to the parliamentary authorities, and also asked for advice about any potential breach of the law. The revelation threatens to reignite questions over Boris Johnson’s honours list, which was published last month but did not include at least one other MP who had expected to be given a peerage – leading that MP, Nigel Adams, to resign in protest. Dorries tweeted on 9 June that she was standing down “with immediate effect”, but more than a month later has not formally done so. She said recently she was waiting for answers from ministers about why she was denied a peerage. The Tory MP William Wragg described her as the “lingering” MP for Mid Bedfordshire, during an evidence session of the public administration and constitutional affairs committee on Wednesday. Dorries, according to Wragg, used “rather forceful communications … threatening to use her position as an MP to get to the bottom of why she hasn’t been given a peerage”. Case said he was “aware of those communications” and had “flagged them” to the chief whip, Simon Hart, and the Commons speaker, Lindsay Hoyle. Rishi Sunak vowed to “relentlessly focus” on fulfilling his priorities for the nation when it was put to him that all five are in doubt. The prime minister told a press conference in Lithuania: I am absolutely laser focused on delivering for the British people. Their priorities are my priorities. Halving inflation because that’s the best way that we can ease the burden on them and the cost of living, cutting waiting lists because it’s wrong that people have to wait as long as they are currently, and about stopping the boats because that’s about simple fairness, as well as everything else. And just most recently, you could see us delivering on that just yesterday in parliament, passing some of the toughest legislation that any government has ever passed when it comes to tackling that priority. He added: I am ambitious for the country and I’m ambitious for what I want to achieve for people. So it’s right that I set ambitious priorities and targets and it’s right that we strain every sinew to meet them and that’s what I’m doing. At the press conference, Rishi Sunak was asked whether he would consider temporarily raising taxes to curb inflation. Some backbench MPs have also called for the government to cut inflation, even as ministers have stressed the need for a responsible fiscal policy to cut inflation. He said: It’s important that government has a responsible approach to fiscal policy in order to complement what the Bank of England is doing on monetary policy, so that we can halve inflation on its way back down to its long-term target. Now, all the decisions that we make are going to be guided by that. Rishi Sunak was asked about public sector pay during his press conference. He said his decision will be guided by two principles. The first is fairness. Fairness for our public sector workers, because we want to make sure that they’re rewarded fairly for their hard work, but also fairness the taxpayers who have to foot the bill for pay rises, and the other thing will be guided by is responsibility. Everyone knows the economic context that we’re in and we need to make sure that government decisions, particularly when it comes to not borrowing more, are made responsibly so that we don’t fuel inflation and make it worse or last for longer. The UK prime minister, Rishi Sunak, is giving a standalone press conference in Vilnius. From a UK perspective Sunak said “we are the leading European contributor to Nato” and said that British people should know how appreciated that is within the alliance, as one of the only nations that contributes to every Nato mission. He lauded the G7 framework for security for Ukraine but said the UK had moved first on several elements in providing for Ukraine, and said that the UK starts training Ukrainian pilots next month. He harks back to the UK being one of the founding members of Nato. He said: Nato is more important than ever. It has proved to be one the most important alliance in history and the UK is at its heart. He is taking questions from journalists who are asking about domestic policy as well as questions about Nato. Almost 1,200 Scottish homes are being brought back into use to house Ukrainian refugees with the help of a Scottish government fund. PA reports: A total of 14 projects have been provided with £23m to bring 1,168 homes back into use, offering accommodation to those fleeing to Scotland due to the Russian invasion. The money came from a £50m fund that the Scottish government set up last year, with almost 1,000 Ukrainian nationals already being put up in 450 refurbished homes, according to government figures. The figures come as the contract for a cruise ship in Edinburgh which temporarily housed Ukrainian refugees ended. Shirley-Anne Somerville, the social justice secretary, said: “We stand in solidarity with the people of Ukraine and are determined to do all we can to help those who wish to build their life here in Scotland. “Our innovative £50m programme provides a vital lifeline for those fleeing the war by providing long-term and secure accommodation through reclaimed empty homes. “I am proud that Scotland has been able to play its part and pleased to see us reach and surpass the crucial milestone of 1,000 homes for displaced Ukrainians. “We have been able to house hundreds of families and individuals in safe accommodation so far and we will continue to work closely with councils and housing associations as we build on this excellent progress.” According to the most recent figures, almost 25,000 Ukrainians came to the UK with a sponsor located in Scotland, 20,022 under the Scottish government’s super sponsor scheme. G7 countries have agreed to stand by Ukraine for “as long as it takes” as they set out the details of what a package of new security measures will entail, with the UK pledging to get more Ukrainian pilots trained in Britain. PA reports: The leaders of the wealthiest economies, which includes the UK, US, Japan, Canada, France, Germany and Italy, jointly penned a security accord at the Nato summit in Vilnius on Wednesday. The prime minister, Rishi Sunak, has said it marks a “new high point” in international support for Ukraine. He thinks it will send a message to the Russian president, Vladimir Putin, and has the potential to bring an end to the conflict in eastern Europe. The pact contains promises to act multilaterally and on a country-to-country basis to offer Ukraine long-term security guarantees. The UK’s side of the bargain will see more Ukrainian pilots trained in Britain. No 10 said the precise offer for each country will be set out in their bilateral agreements. In a joint declaration signed by G7 leaders, they said: “We will stand with Ukraine as it defends itself against Russian aggression, for as long as it takes. “We stand united in our enduring support for Ukraine, rooted in our shared democratic values and interests, above all, respect for the UN charter and the principles of territorial integrity and sovereignty.” The group said the mission was to “ensure a sustainable force capable of defending Ukraine now and deterring Russian aggression in the future”. The pact promises security assistance and modern military equipment, prioritising air defence, artillery and long-range fires, armoured vehicles and other key capabilities, such as air combat. Ukraine’s military equipment will increasingly be brought into “interoperability with Euro-Atlantic partners”. Plans are also in place to boost Kyiv’s defence industry, commit to more training exercises and provide support for cyber defence and resilience initiatives. G7 countries are also pledging to help Ukraine meet the reforms asked of it to become a Nato member. They added that the west “remains committed to supporting Ukraine by holding Russia accountable” through sanctions and by punishing “war crimes and other atrocities”. An MP has called upon the deputy prime minister to delve into the depths of his soul and condemn the Home Office’s decision to paint over an asylum centre children’s mural. PA reports that the SNP’s Pete Wishart criticised the lack of compassion and concern demonstrated by ministers in response to what he described as a “grotesque” ask. The decision to paint over murals of cartoon characters, including Mickey Mouse and Baloo from The Jungle Book, at an asylum seeker reception centre in Kent was made by immigration minister Robert Jenrick, who reportedly felt they were too “welcoming”. Speaking in the Commons on Tuesday, though, Jenrick said the murals were painted over because they were not “age appropriate” for the majority of the young people staying there. When challenged by Wishart at prime minister’s questions, Oliver Dowden emphasised the government’s determination to combat the “vile” people smuggling trade and condemned those involved in exploiting vulnerable women and children. Perth and North Perthshire MP Mr Wishart told the Commons: “I don’t think I’ve ever seen anything quite so grotesque as the painting-over of Mickey Mouse on a children’s mural, as was done by the Home Office in a detention centre in Kent. No minister so far has raised the necessary compassion or concern to speak out about this. “So can I ask the Deputy prime minister to look into the deeper recesses of his soul and just simply condemn it?” Dowden replied: “I’ll tell him what real compassion looks like and that means stopping the vile people smuggling trade across the Channel condemning women and children to death. “This government is taking action to deal with it, with our stop the boats bill, and that party shamefully 18 times last night voted against it.” At PMQs, Angela Rayner repeated John Prescott’s question from 1996 – “Why is it that in Tory Britain tens of thousands of families are facing repossession, negative equity and homelessness?” – and asked why she should need to ask the same question 27 years later, as she challenged Oliver Dowden on child poverty and the “Tory mortgage bombshell”. Dowden and Rayner were standing in for the prime minister and the Labour leader as Rishi Sunak attended a Nato summit in Vilnius.