Boris Johnson news: Tory hardliners 'plotting to force no-deal', as Brexit recession warning issued and pound tumbles

UK faces 'one in three chance of recession' after EU departure, says Bank of England

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Britain has a one-in-three chance of a recession even if there is an orderly exit from the EU, the Bank of England has warned as sterling fell to a new two-and-a-half year low against the dollar amid Brexit uncertainty.

It came as the newly appointed chief secretary to the Treasury, Rishi Sunak, cast doubt over the government's Brexit deadline, as he said Britain would "hopefully" leave the EU by 31 October.

Voters are also heading to the polls in the Brecon and Radnorshire by-election that could see Boris Johnson's working majority in the Commons cut to just one if the Tories fail to hold on to the seat. The result is expected in the early hours of Friday morning.

This live article has now ended. Recap on how developments unfolded below

Key Points

• Cabinet minister says UK will 'hopefully' leave EU by 31 October
• ... as chancellor Sajid Javid spends extra £2.1bn on no-deal Brexit
• UK faces 'one in three chance' of recession after EU departure, Bank of England warns
• Pound sinks to two-and-a-half year low against dollar
• Voters head to the polls in crucial by-election for Boris Johnson
• Hardline Brexiteers 'determined to force through no deal' even if backstop removed

[1 August 2019 18:27 · Chris Baynes]

The Ministry of Justice has just responded to the Howard League for Penal Reform's warning about overcrowding fuelling violence in prisons.

A spokesperson said: "All of our prisons are within their operational capacity which means they are safe for offenders.

"We are building new prisons in Wellingborough, Glen Parva and Full Sutton and have recently opened a new houseblock at HMP Stocken to help reduce crowding as part of our modernisation of the prison estate."

The department said in the 2018/19 financial year, 22.5 per cent of the prison population was being held in crowded conditions, down from 24.2 per cent the previous year.

[1 August 2019 19:14 · Chris Baynes]

The UK government's proposed £30,000 salary threshold for EU migrants is too high and should be lowered, Scottish secretary Alister Jack has said.

Speaking to ITV News, Mr Jack said the figure "might work in London but it doesn't work outside London".

The threshold, set out in the government's White Paper on immigration published in December, would mean EU workers have to earn a minimum salary of £30,000 when entering the UK.

It is the same threshold currently set for non-EU citizens working in Britain.

However, concerns have been raised over the threshold being set well above the average salary in different parts of the UK - including in Scotland, where it is around £24,000.

Mr Jack said: "I am feeding into the review and my belief is that £30,000 is too high. It might work in London but it doesn't work outside London," said Mr Jack.

"And it's not just farming, it's not just the seasonal workers scheme which I think we should increase, it also affects the NHS, it affects construction, it affects care workers and lots of other sectors.

"I don't think a solution that's done by geography or by sector is right because you'll always forget an area or you'll forget a sector.

"I think we need to do a financial figure, but it's got to be a lot less than £30,000."

[1 August 2019 19:24 · Chris Baynes]

That's it from us for today - thanks for reading.