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Politics latest: UK sanctions Israeli ministers in 'major step' - as minister warns two-state solution 'is in peril'

Israel has condemned the "outrageous" decision by the British government to sanction two of its ministers. Earlier, the chancellor committed more than 拢14bn to build nuclear plant Sizewell C to improve Britain's energy security.

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Here's what to expect from the spending review tomorrow

This spending review is a massive deal. It's a massive deal because of the sums of money and capital the government is about to allocate - 拢600bn over the next three to four years.

But it is also a massive political moment as the Labour government tries to turn the corner on a difficult first year and show voters it can deliver the change it promised.

It is not, say No 10 insiders, another reset, but rather a chance to show 'working people' why they voted Labour. Look at the blitz of announcements over recent days, and this is a government trying to sell the story of renewal.

On Tuesday, the prime minister and his energy secretary, Ed Miliband, announced the biggest nuclear building programme for half a century, with 拢14.2bn being poured into Sizewell C on the Suffolk coastline to create over 10,000 jobs over the next decade and provide energy security.

Last week, the chancellor announced 拢15bn for new rail, tram and bus networks across the West Midlands and the North. She's also expected to green-light a new rail line between Liverpool and Manchester on Wednesday, and invest capital in housebuilding.

In total, there will be 拢113bn of additional capital investment, which the government will frame as the long-promised 'decade of renewal' around the three pillars of security, health and the economy.

US condemns UK sanctions on Israel - and urges U-turn

It was noticeable that the sanctions imposed on Israel by the UK, New Zealand, Australia, Canada and Norway were not backed up by the United States.

We've now had a response from Washington.

Marco Rubio, the secretary of state - equivalent to foreign secretary - says he "condemns" the move, and wants the sanctions removed.

He mentions Gaza in his statement, despite the sanctions being targeted on actions in the West Bank - a separate geographic area.

In a post on social media, Rubio says: "The United States condemns the sanctions imposed by the governments of United Kingdom, Canada, Norway, New Zealand, and Australia on two sitting members of the Israeli cabinet. These sanctions do not advance US-led efforts to achieve a ceasefire, bring all hostages home, and end the war.

"We reject any notion of equivalence: Hamas is a terrorist organization that committed unspeakable atrocities, continues to hold innocent civilians hostage, and prevents the people of Gaza from living in peace. We remind our partners not to forget who the real enemy is.

"The United States urges the reversal of the sanctions and stands shoulder-to-shoulder with Israel."

A spokesperson for the State Department earlier said the move was "extremely unhelpful".

They added that "it will do nothing to get us closer to a ceasefire in Gaza" - adding that the nations should "focus on the real culprit: Hamas".

The spokesperson said: "We remain concerned about any step that would further isolate Israel from the international community."

拢3 bus fare cap to be extended until March 2027

It's spending review eve, which means announcements are continuing to dribble out ahead of the main event.

The latest is that the 拢3 cap on bus fares will be extended until March 2027.

The bus fare cap - which Labour increased to 拢3 last year - was introduced in January 2023 under Rishi Sunak at 拢2.

It is part of a scheme to improve transport in England, outside of London.

We haven't had any detailed info on the announcement, but Transport Secretary Heidi Alexander has posted on social media: "Buses provide a lifeline and opportunity for people across the country.

"Keeping fares affordable is a top priority for me, as our landmark Buses Bill overhauls how services are delivered.

"Better buses are around the corner with Labour."

The Labour Party social media account also shared the news.

When will energy bills start to come down?

The government has been trumpeting its multibillion pound vow to get Sizewell C built today.

The new nuclear plant in Suffolk has been talked about for years, but Rachel Reeves and Keir Starmer have today talked up the prospect of finally getting it built - as the UK embraces green power.

Energy minister Michael Shanks joined Ali Fortescue a little while ago, and she asked him when people will benefit via cheaper bills.

"Bills will start to come down the more we push gas off the system," Shanks said. "Gas is the price setter 80% of the time at the moment, it's subject to the volatility of fossil fuel markets set internationally. 

"Every wind turbine we put up, every solar panel we switch on, and every megawatt we generate鈥� will push gas off the system and protect bill payers in the long term."

Ex-Tory chancellor reveals he chats to Reeves on WhatsApp

Former chancellor Jeremy Hunt is speaking to Ali Fortescue this evening.

If you cast your mind back to the autumn of 2022, you might remember he was the one brought in by Liz Truss to try to clear up the mess made by her and Kwasi Kwarteng at the mini-budget.

Truss followed Kwarteng out of the Downing Street gates shortly after.

Ali asks the Tory MP if Rachel Reeves has ever asked him for advice.

Hunt says he wouldn't say it was asking for advice, but they have a "perfectly friendly relationship via WhatsApp, and we exchange messages" - including fairly recently.

'She wants to do the right thing'

While "politics is a brutal sport", Hunt believes it is a "good thing" to "preserve the personal relationships".

The former chancellor says he does have sympathy for Reeves having to deliver the spending review tomorrow, as "you are everyone's worst enemy inside government".

This is because the chancellor has to balance the government's budgets.

Hunt says he believes "in her heart, Rachel Reeves actually wants to do the right thing" - but that raising taxes in the autumn budget would be "absolutely catastrophic".

In a series of quick-fire questions, however, Hunt is asked for his preference between Kwarteng or Reeves.

He says he cannot make a choice as he disagrees "with both of them".

Five things to know about tomorrow's spending review

Tomorrow is the spending review - they do not come around too often, but they are incredibly important.

Rachel Reeves will set out budgets for every government department over the coming years - covering everything from the NHS and public transport to policing.

Who better to guide you through the numbers than our economics and data editor Ed Conway - watch below:

Israeli ministers bullish in wake of sanctions

Itamar Ben-Gvir and Bezalel Smotrich were the two Israeli ministers sanctioned by the UK, as well as a number of other countries, earlier.

They have responded to the action taken.

'Britain has already tried once'

Ben-Gvir said "sanctions don't frighten me" - likening the situation to the UK's historical actions in the Middle East.

He added that he will continue to work to "ensure that humanitarian aid will not enter [Gaza] for Hamas".

Smotrich used similar language, saying: "Britain has already tried once to prevent us from settling the cradle of our homeland, and we will not allow them to do so again. 

"We are determined, with God's help, to continue and to build."

The Israeli government has said it will meet to discuss its response to sanctions next week.

Government has shown it's willing to fracture ties with Israel - and maybe the US too

We've seen a significant UK response today to the situation in Gaza - and it feels like a moment we might well look back on as a turning point. 

The prime minister has so far been determined not to speak out of turn, incredibly careful with his words.

But we have seen a change in tone in the last week. 

Senior ministers willing to condemn Israel in a way they haven't before.

The government has been treading a tightrope with Israel on one side, Gaza on the other - today they've undoubtedly tipped one way. 

Not just words but action on Israel.

It's a big deal - two senior Israeli ministers banned from entering the UK, their assets frozen. 

That's the sort of action usually reserved for authoritarian regimes, for politicians from countries like Russia and North Korea. 

It also shows the government is willing to risk fracturing relations with Israel, and potentially the US too.

Politics Hub With Ali Fortescue is live

Joining us ahead of the spending review tomorrow is former chancellor Sir Jeremy Hunt MP, and to discuss the plans for Sizewell C is energy minister Michael Shanks MP.

On the panel are James Starkie and Kirsty Blackman MP.

Watch live in the stream below - if you'd prefer to keep watching the Commons, use the stream at the top of this page.

Two-state solution 'in peril', warns Foreign Office minister

Hamish Falconer, the Foreign Office minister, is giving a statement in the Commons on the sanctions on Israeli ministers announced today.

They are Itamar Ben-Gvir and Bezalel Smotrich.

He starts off by saying the "two-state solution is in peril".

Falconer goes on to describe a "catastrophic conflict in Gaza" and a "shocking deterioration in the West Bank".

'An attempt to entrench one-state reality'

After laying out recent violence against Palestinians in the West Bank, Falconer says Itamar Ben-Gvir has led seven "provocative intrusions" into the region since 2022.

He says one outburst of violence from Israeli settlers saw "houses and injured residents" set of fire.

Falconer says the "violence and rhetoric is deeply concerning" and is "an assault not just on Palestinian communities, but on the very fundamentals of a two-state solution".

"This is an attempt to entrench a one-state reality where there are no equal rights."

The minister is met with "hear, hears" when he confirms the sanctions on Ben-Gvir and Bezalel Smotrich.

'Appalling rhetoric'

He says the sanctions were imposed as Ben-Gvir and Smotrich are "responsible for inciting settler violence against Palestinian communities in the West Bank, violence which has led to the deaths of Palestinian civilians and the displacement of whole towns and village".

Falconer says the two ministers continued their "appalling rhetoric" despite warnings from the UK government, and so action was taken.

But this does not "diminish [UK] support for the security of Israel and Israeli people", as Falconer says their agendas "are not even supporter by the majority of Israelis".