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Good morning and welcome to the Politics Hub this Tuesday, 10 June. 

All eyes in Westminster are on the chancellor ahead of her spending review tomorrow, with confirmation yesterday afternoon that the final details have now been agreed. 

But Rachel Reeves has another rabbit to pull out of the hat first. 

She's set to confirm a £14.2bn commitment to fund the construction of the Sizewell C nuclear power station in Suffolk, some 15 years after it was first proposed.

Reeves will make the announcement at the GMB union's conference later this morning, as the government welcomes in a "golden age" of nuclear power to boost the UK's energy security.

It says the funding for the plant will create 10,000 jobs including 1,500 apprenticeships. Building the plant will take an estimated nine to 12 years, but will provide around six million homes with energy. 

We'll hear more from the Energy Secretary, Ed Miliband, on this shortly.

Reeves isn't the only one seeking headlines this morning, though.

Sir Keir Starmer is making two energy-related visits near to where the plant will be. The PM will meet workers at a construction site this morning before speaking to pupils at a nearby school.

At the same time that Starmer's (presumably) donning high vis in Suffolk, Nigel Farage will be bathing in the spotlight in Westminster. 

The Reform UK leader is set to unveil the party's new chairman, following the departure and partial return of Zia Yusuf at a press conference in Westminster. 

And let's not forget, limelight-loving leader, Sir Ed Davey. He'll be playing interactive games in front of the cameras this afternoon to highlight the challenges faced by unpaid carers. The Lib Dem leader will also speak to the media to mark carer's week.

Coming up on Sky News this morning: 

• Ed Miliband, the energy secretary;
• Andrew Griffith, the shadow business secretary; 
• Ben Wallace, the former Tory defence secretary.

Stay with us throughout the day as we bring you all the latest updates right here on the Politics Hub.

That's all for tonight.

Join us again for more politics again in the morning - as we get a day closer to the spending review.

The government has spent much of today outlining how it'll be spending more money on pensioners - but lest we forget there's also pressure to spend more on defence.

NATO chief Mark Rutte has been in town today, holding talks with the prime minister in Downing Street and also making a speech at the international affairs thinktank Chatham House.

And he had a rather chilling warning for what might happen if Britain doesn't increase defence spending to upwards of 5% of GDP.

Rutte warned: "If you do not do this […] you can still have the NHS, or in other countries their health systems, the pension system, etc, but you had better learn to speak Russian."

For context: The government has so far only committed to 2.5% by 2027, and 3% during the next parliament.

Rutte told reporters he had a "clear view" on when NATO allies should be spending 5% on defence, but would be making that point in private conversations rather than in public for now.

There is a NATO summit in the Netherlands later this month.

Former minister Tulip Siddiq has written to the interim leader of Bangladesh requesting a meeting during his visit to the UK to discuss accusations of corruption that have been levelled at her.

In the letter seen by Sky News, Siddiq invited Muhammad Yunus for "lunch or afternoon tea" to "clear up the misunderstanding� that I have questions to answer".

Watch: The Tulip Siddiq accusations explained

The Anti-Corruption Commission in Bangladesh has opened multiple inquiries involving the London MP over alleged links to her aunt's political party in the country.

A former prime minister of Bangladesh, Sheikh Hasina is currently standing trial in absentia in Dhaka over alleged killings during deadly protests that swept the country last summer.

Siddiq resigned as a Treasury minister in January after being named in the corruption inquiries.

Documents showed she lived in several London properties that had links back to the Awami League political party that her aunt still leads.

She referred herself to the prime minister's standards adviser Sir Laurie Magnus, who said he had "not identified evidence of improprieties", but added it was "regrettable" Siddiq had not been more alert to the "potential reputational risks" of the ties to her aunt.

Siddiq said continuing in her role would be "a distraction" for the government but insisted she had done nothing wrong.

'Fantasy investigation'

In her letter to the chief adviser of Bangladesh, Siddiq writes: "[The Anti-Corruption Commission] refuse to engage with my lawyers in London and apparently keep sending correspondence to a random address in Dhaka. 

"Every move in this fantasy investigation is briefed to the media and yet no engagement was facilitated with my legal team."

Muhammad Yunus left Bangladesh for his UK visit on Monday afternoon.

Bangladeshi media reported his spokesperson as saying they had not received the letter.

A source close to Siddiq said she had not received a reply.

There are considerable problems with the winter fuel payment U-turn, but perhaps the political argument in favour outweighs them all?

First, that Rachel Reeves has executed the plan without working out how to pay for it. This, for an iron chancellor, is a wound opponents won't let her forget. A summer of speculation about tax rises is not a summer anyone looks forward to.

Third, the question immediately becomes what next? Why not PIP and the two child benefit cap. At this stage it would feel like a climb down if they did not back down over those. But then, what will the markets - already policing this closely - make of it and could they punish government.

Fourth, this is aggravating divisions in the parliamentary Labour Party: the soft left Compass group and ministers like Torsten Bell pushing bigger spending arguments. Those MPs in Tory-facing seats who rely on arguments that Labour can be trusted with the public finances are worried.

Fifthly, this has created a firm division between Number 10 and Number 11. Number 10 is now conscious they do not have enough independent advice about the market reaction to economic policies and is seeking to correct. Others, I am told, are just critical of the chancellor's U-turn - for she wobbled first.

So given the litany of arguments against, why has it happened? 

Because the hope is this maxi U-turn lances the boil, removes a significant source of pensioner anger and brings back Labour voters, a price they calculate worth paying whatever the fiscal cost.

We wait to see who is right. 

It may seem like a while ago, but there was a fiery exchange last month at the Environment, Food and Rural Affairs Committee as Sir Adrian Montague, the chair of Thames Water, defended the bonus scheme for the company's senior executives.

Sir Adrian told the committee that creditors had insisted on bonuses being paid - something he later confirmed was not the case.

He claimed to have "misspoken", and that it was instead part of a strategy to prevent upheaval at the top of Thames Water.

A letter Sir Alan sent to the EFRA committee has now been published, which gives more details on the bonus agreement.

The bonuses worked out to: "50% of base salary on 30 April 2025; 50% on completion of [Thames Water's] second restructuring plan or, if earlier, December 2025; and a final payment of 200% of base salary in June 2026."

Sir Alan said that he himself, as well as CEO Chris Weston, or CFO Steve Buck, did not get a payout.

The 30 April payment has been meted out already, and the board of Thames Water "does not intend to recover this money".

Any further bonuses have been paused.

EFRA Committee chair Alistair Carmichael MP said bonuses for water company CEOs and CFOs were banned last year - and wants to know if the government will take action on the latest revelation.

He said: "We are also asking whether Defra and Ofwat were aware of these payments and what undertakings they have received from Thames Water about the pausing or withdrawal of the retention plan. 

"Given that the plan includes two further retention payments, including 200% of base salary due to be paid to these 21 individuals in June 2026, it is vital that Thames Water, Defra and Ofwat are clear with us all about what exactly is going on."

Sky News understands the government is not planning to try to recoup the money. 

Everyone who's over the state pension age and earns £35,000 or less is eligible for the winter fuel allowance this year.

But everyone who's over state pension age will get it automatically, presumably to avoid too much faffing about with eligibility forms.

Once the payments have been made, anyone who has an income above £35,000 will have the money taken back from them by HMRC.

You'll be able to opt out in advance if you'd prefer, the government says.

This question was also posed in the Commons earlier, Richard.

And pensions minister Torsten Bell said those pensioners overseas will not get the winter fuel allowance.

As he put it, the payment will "continue not to be exportable […] to those "not resident in the UK".

Thanks for the question, Boyd.

People eligible for the winter fuel allowance will get £200 - or £300 if they're aged over 80.

If it's a household with two pensioners, the payments are halved.

And if one of them earns more than the £35,000 threshold, they won't receive anything and the other will get half the payment.

A reminder that this is in England and Wales - the arrangements in Scotland and Northern Ireland are devolved.

Rachel Reeves has performed a major U-turn on her decision to cut the winter fuel allowance for millions of pensioners - and our Sophy Ridge is not convinced by the government's explanation.

The chancellor and other ministers have claimed an improving economic picture has allowed for the change - rather than the policy being deeply unpopular with voters.

Watch Sophy challenge the Treasury minister below: