Reeves vows to cut cost of living after inflation boost before final pre-Budget PMQs – live updates

The defence secretary has laid out plans to build new munitions factories.

At least 13 potential sites have now been identified for new munitions and energetics factories, with construction expected to begin on the first in the next year.

At least 1,000 new jobs will be created as John Healey said: “For too long our proud industrial heartlands saw jobs go away and not come back. We are changing that. Bringing new hope. This is a fundamental shift from the failed approach of the past.”

The UK “must step up” in a “new era of hard power”, defence secretary John Healey has said.

In a Westminster speech on Wednesday, he said: “Our world is changing. It is less predictable. It is more dangerous.

“And in the last year alone, we’ve seen the Israel-Iran war bring the Middle East close to the very brink, armed conflict break out between India and Pakistan, Chinese spies targeting our democracy at home, Putin escalate still further his war in Ukraine.

“And in just this last year, we’ve also seen Europe’s skies plagued by drone disruptions, we’ve seen Russian incursions into Nato airspace double and we’ve seen 90,000 cyber attacks on the UK defence system alone.

“This is a new era of threat. It demands a new era for defence, an era of hard power, strong allies and of sure diplomacy.

“And as the threat grows, Britain must step up, and we are.”

The defence secretary has issued a warning to Vladimir Putin as he said a Russian spy ship is on the edge of UK waters.

He said it was the second time the ship had been deployed to UK waters this year.

John Healey said: “My message to Russia and to Putin is this: We see you, we know what you are doing and if the [ship] travels south this week we are ready.”

The defence secretary is giving a press conference in Downing Street,

He said a Russian spy ship is on the edge of UK waters in north of Scotland, having entered the UK’s wider waters over the last few weeks.

He said the boat is capable of mapping undersea cables, and that the UK had deployed royal navy frigate and RAF planes.

Mr Healey said the boat directed lasers at pilots and warned Russia the UK is “ready” if the boat travels south this week.

The Independent’s Whitehall Editor Kate Devlin reports:

Keir Starmer will have to defend a U-turn he did not even announce at PMQs today – after that screeching about turn on increasing income tax in the Budget.

While the obvious attacks will come from Tory leader Kemi Badenoch keep an eye on the MPs sitting behind him.

Labour backbenchers are increasingly despairing – and speculating on how long Sir Keir will last in the job.PMQs is usually a chance for a party leader to rally his troops.

But with another long week to go before we even find out what is in the Budget – Labour MPs think there is very little to cheer about.

Budget leaks are “not acceptable”, Rachel Reeves has said.

The Chancellor was asked whether the Government’s mixed messages on tax in the November 26 statement might have contributed to market volatility.

She told broadcasters on Wednesday: “Leaks are not acceptable.

“But people only have to wait a week now until I deliver my Budget on Wednesday November 26.

“The priorities of that Budget will be to tackle the cost of living, to get NHS waiting lists down and to reduce national debt. Those are the priorities of the British people, and they’ll be my priorities as I go into the Budget next week.”

High prices remain a “big burden” on people, Rachel Reeves has said in response to the release of inflation figures.

“It’s welcome that inflation has fallen from 3.8 to 3.6% in this month’s data. But I recognise that inflation, the cost of living, is still a big burden on families right across the country.

“And that’s why in the Budget next week, I’ll be taking targeted action to bring down inflation to address the cost of living.”

The Chancellor evaded a question on whether she recognised that increases to employer national insurance contributions helped push up food prices.

She replied: “Food prices fell last month and they have risen this month. But I do recognise that there’s more that we need to do to tackle the cost-of-living challenges. And that’s why one of the three priorities in my Budget next week is to tackle the cost of living, as well as to cut NHS waiting lists and cut Government debt.

“There are 300,000 more jobs in the economy than there were at the beginning of this year.

“But of course, I want also to do more to help people back into work, which is why the Budget will be setting out more details of our youth guarantee to ensure that young people are in education, employment or training.”

The prime minister is set to face his final round of questions in the Commons ahead of his government’s crunch Budget next week.

Sir Keir Starmer will answer questions from the leader of the opposition, Kemi Badenoch, and other MPs at midday.

We’ll bring you the latest updates here,