The decision, first reported in the Financial Times, comes after a bruising few days which has brought about a change of heart in Downing Street.

Read more: How No 10 plunged itself into crisis

I understand Downing Street has backed down amid fears about the backlash from disgruntled MPs and voters.

The Treasury and Number 10 declined to comment.

The decision is a massive about-turn. In a news conference last week, the chancellor appeared to pave the way for manifesto-breaking tax rises in the budget on 26 November.

She spoke of difficult choices and insisted she could neither increase borrowing nor cut spending in order to stabilise the economy, telling the public "everyone has to play their part".

The decision to backtrack was communicated to the Office for Budget Responsibility on Wednesday in a submission of "major measures", according to the Financial Times.

The chancellor will now have to fill an estimated £30bn black hole with a series of narrower tax-raising measures and is also expected to freeze income tax thresholds for another two years beyond 2028, which should raise about £8bn.

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Conservative leader Kemi Badenoch said: "Only the Conservatives have fought Labour off their tax-raising plans.

"But one retreat doesn't fix a budget built on broken promises. Reeves must guarantee no new taxes on work, businesses, homes, or pensions - and she should go further by abolishing stamp duty."

How did we get here?

For weeks, the government has been working up options to break the manifesto pledge not to raise income tax, national insurance or VAT on working people.

I was told only this week the option being worked up was to do a combination of tax rises and action on the two-child benefit cap in order for the prime minister to be able to argue that in breaking his manifesto pledges, he is trying his hardest to protect the poorest in society and those "working people" he has spoken of so endlessly.

But days ago, officials and ministers were working on a proposal to lift the basic rate of income tax - perhaps by 2p - and then simultaneously cut national insurance contributions for those on the basic rate of income tax (those who earn up to £50,000 a year).

That way the chancellor can raise several billion in tax from those with the "broadest shoulders" - higher-rate taxpayers and pensioners or landlords, while also trying to protect "working people" earning salaries under £50,000 a year.

The chancellor was also going to take action on the two-child benefit cap in response to growing demand from the party to take action on child poverty. It is unclear whether those plans will now be shelved given the U-turn on income tax.

Read more: What taxes could go up now?

The change of plan comes after the prime minister found himself engulfed in a leadership crisis after his allies warned rivals that he would fight any attempted post-budget coup.

It triggered a briefing war between Wes Streeting and anonymous Starmer allies attacking the health secretary as the chief traitor.

Read more: Is Starmer 'in office but not in power'?

The prime minister has since apologised to Mr Streeting, who I am told does not want to press for sackings in No 10 in the wake of the briefings against him.

But the saga has further damaged Sir Keir and increased concerns among MPs about his suitability to lead Labour into the next general election.

Insiders clearly concluded that the ill mood in the party, coupled with the recent hits to the PM's political capital, makes manifesto-breaking tax rises simply too risky right now.

But it also adds to a sense of chaos, given the chancellor publicly pitch-rolled tax rises in last week's news conference.

Flooding is likely, with some areas facing up to 150mm (6in) of rain.

The warning is in place from noon until the end of the day, and covers parts of Wales, the Midlands, the South West, South East and East of England.

Check the weather forecast where you are

The storm, named by Spain's meteorological service, has also triggered weather warnings in Spain and Portugal, and is currently affecting the Canary Islands.

Claudia could result in travel disruptions, power cuts, and flooding, according to the Met Office.

Under a yellow warning for rain, southern Britain can expect 30mm (1.2in) to 50mm (2in) widely, with 80mm (3.1in) for parts of east Wales and central England, but the far south of England should escape the worst of it, according to the Sky Weather team.

The easterly flow means east-facing hills could see much more rain, potentially up to 150mm (6in) in southeast Wales.

Met Office Chief Meteorologist Matthew Lehnert said: "Storm Claudia will bring very heavy rainfall to a large swathe of central and southern England and Wales on Friday into Saturday.

"This rain will become slow-moving, and some areas could see up to a month's worth of rain in 24 hours."

Ireland's meteorological service, Met Eireann, has also issued weather warnings for parts of Ireland, with significant rain likely in the southeast into the weekend.

The rain is the main hazard from Storm Claudia, but a strong easterly wind will develop, bringing gusts up to 70mph to parts of northwest Wales and northwest England, the Met Office said.

Flood and 'do not travel' warnings

According to the Environment Agency, three flood warnings are in effect as of 2am, with one at Keswick Campsite in the Lake District and two sites on the River Eden in Carlisle.

Floods minister Emma Hardy said in a statement: "As parts of the country are forecast to experience heavy rainfall, I recognise people will be concerned about the risk to their homes and livelihoods.

"I am in regular contact with the Environment Agency on their response to the expected flooding who, alongside local authorities and the emergency services, are already taking action to keep communities safe."

The AA has also advised against travelling in the "hazardous weather", adding: "Safety comes first. Conditions may change quickly, so stay updated and make sure you're prepared before you travel.

"Flood water can appear quickly, and even shallow water can be dangerous - never try to drive through it."

A colder weekend

By the weekend, the north of the UK will see a colder air mass, with overnight frosts, according to the Met Office.

Some showers will persist, but overall it will be a considerably drier and brighter period of weather in this area.

Further south, the weekend will start off largely cloudy and wet, and still mild in the far south. Gradually, the rain will ease and eventually clear to the south, with the drier, colder conditions further north spreading to all areas by the start of next week.

Early next week, temperatures will drop sharply across the country, particularly in the north and east, bringing the first snow of the season in some areas.

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Warnings in Spain and Portugal

An elderly couple in eastern Portugal died inside their flooded house on Thursday due to Storm Claudia, the Portuguese Authority of Civil Protection told Sky News.

The couple lived in Fernao Ferro, in the municipality of Seixal, around 26km (16 miles) south of the capital Lisbon.

Half of the country was under red and orange weather warnings on Thursday, with nearly 14,000 people left without electricity.

Parts of Spain have also been under orange and yellow weather warnings on Thursday due to Storm Claudia.

"I'd say my life, as I've known it, is very definitely over. It's definitely gone."

Just four weeks earlier, the 82-year-old had been at the wheel of her camper van, relishing the winter bowling season and volunteering.

Then came the diagnosis of an aggressive and inoperable brain tumour and a prognosis of just weeks to live.

'I should have a choice'

Although it will come too late for her, Ed, who asked that we not use her surname, was determined to speak out in favour of the assisted dying bill making its way through parliament.

She is concerned about what her last weeks - like others in her situation - will look like.

"Looking at my life, for however long it is now, which I'm told isn't actually to be very long, it's not my life, I'm not going to be in control of it," she said.

"This malignant growth in my brain is going to choose for me.

"I'm mainly concerned with me losing my identity of me. I have always tried to live my life with self-respect and dignity, and I don't know whether I'm going to have self-respect and dignity.

"I feel I should have a choice. I feel that it should be me who says 'Well I think I'll get off this bus now. I've reached where I want to go to, and I'm quite happy, I've had a good life'."

Read more: Why is assisted dying controversial?

The Terminally Ill Adults (End of Life) Bill, currently being scrutinised in the House of Lords, would permit a person who is terminally ill and with less than six months to live to legally end their life.

Opponents of the legislation - which peers are debating today - have raised concerns about the safety of vulnerable people and the risk of coercion, and a change in attitudes toward the elderly, seriously ill and disabled.

"I accept that there are vulnerable people but the people who are looking after them are the ones that will have to be honest and make the choices, as they already will do for vulnerable people," said Ed.

"I don't want other people to restrict my choice. I'm perfectly capable of deciding for me."

She said the option of travelling abroad to a clinic to die would mean leaving her home and family to die alone, not something she contemplated.

"I think it should be made easier for people and their families to all be able to deal with it," she added.

"That's my wish for other people in the future, that it would be an organised, dignified way where people could talk over with their families and decide what is the best thing."

"Dying shouldn't be a horrific thing. I think most of us aren't afraid of death. We're afraid of what we have to go through before death," said Ed.

"I think that's the majority of people feel like that. And so what you're saying here is: 'We're not going to let you have a peaceful death. We're going to make you go through something before you get there.' And that's not fair."

A final farewell

In the days after we spoke, Ed planned her own funeral and enjoyed a kitchen disco at her home. It had been on her bucket list to dance one more time.

"I'm very realistic, it's no good weeping and wailing about it. Some people have hard times all their lives. I've had a wonderful life, and if this is my hard time in my life, I've just got to face it and accept it.

"We're going to have a kitchen disco next Friday, and we should be able to do that then say 'goodbye'. That would be fine."

Shabana Mahmood will announce on Monday a series of measures to make it easier to remove and deport illegal migrants, and reduce the "pull factors" that make the UK attractive to asylum seekers.

The Home Office said they would be the "most sweeping reforms to tackle illegal migration in modern times".

She is said to believe that "excessive generosity and ease of remaining" in the UK, along with systemic barriers, has made deportations extremely difficult, The Times reported.

It is understood that many of the changes set to be proposed by the home secretary will be modelled on the Danish system, under which 95% of failed asylum seekers are deported.

Denmark has tighter rules on family reunions, and restricts some refugees to a temporary stay.

Read more: Could Danish model save Labour's bacon?

Ms Mahmood is also mulling reforms to the European Convention on Human Rights and human rights law to "end the abuse of the system that leads to unjustified claims to delay or stop deportations", a Home Office source said.

The overhaul of modern slavery laws will require migrants to make a claim that they have been a victim as soon as they arrive in the UK, rather than allowing them to raise it unexpectedly later on, which has resulted in delayed deportations, The Telegraph reported.

The number of offences qualifying foreign criminals for automatic removal is also set to be increased, the paper said.

And judges are expected to be required to prioritise public safety over claims from migrants that deporting them would breach their family rights or put them at risk of "inhuman" treatment if they were returned to their home country.

Deportations are up - but so are boat crossings

Ahead of next week's announcements, the Home Office released new figures showing 48,560 people have been removed from the UK since Labour came to power.

The figure, which includes failed asylum seekers, foreign criminals and others with no right to be in the UK, is a 23% increase compared to the 16 months before last year's election.

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Ms Mahmood said: "We've ramped up enforcement, deported foreign criminals from our streets, and saved taxpayers millions.

However, small boat crossings continue to rise - 39,075 people have made the journey so far this year, according to Home Office figures.

That is an increase of 19% on the same point in 2024 and up 43% on 2023, but remains 5% lower than the equivalent point in 2022, which remains the peak year for crossings.

The corporation said it was an "error of judgement" and the programme - from shortly before last year's presidential election - will "not be broadcast again in this form on any BBC platforms".

But it added that it "strongly" disagrees that there is "a basis for a defamation claim".

Mr Trump's legal team had threatened to sue the BBC for £1bn (£792m) unless it issued a "full and fair retraction" of the programme, apologised immediately, and "appropriately" compensated the president.

The White House has not offered comment on the BBC's response, and told Sky News to direct questions to "the president's outside counsel on this matter".

Sky News is awaiting a response from the president's counsel.

Mr Trump's legal team earlier revealed the US president has not yet filed a lawsuit against the BBC over the
broadcaster's editing of a speech he made in 2021 on the day his supporters overran the Capitol building.

Legal experts have said that Mr Trump would face challenges taking the case to court in the UK or the US.

Deadlines to bring the case in English courts, where defamation damages rarely exceed £100,000 ($132,000) expired more than a year ago.

Because the documentary was not shown in the US, it would be hard to show that Americans thought less of him because of a programme they could not watch.

What has the BBC said?

In a statement, the corporation said lawyers for the BBC have written to Mr Trump's legal team.

BBC chair Samir Shah has written a personal letter to the White House, "making clear" he and the corporation "are sorry for the edit of the president's speech on 6 January 2021".

"The BBC has no plans to rebroadcast the documentary 'Trump: A Second Chance?' on any BBC platforms," the statement added.

"While the BBC sincerely regrets the manner in which the video clip was edited, we strongly disagree there is a basis for a defamation claim."

Read more: Trump's legal threat in full

The BBC also said it was looking into fresh allegations, published in The Telegraph, that its Newsnight show also selectively edited footage of the same speech in a report broadcast in June 2022.

A BBC spokesperson said: "The BBC holds itself to the highest editorial standards. This matter has been brought to our attention and we are now looking into it."

On Sunday evening, two of the BBC's top figures, including the director-general, resigned amid the row over the edit and concerns about impartiality.