Pressure is mounting on British Prime Minister Keir Starmer over his decision to appoint Epstein associate Peter Mandelson as U.K. ambassador in Washington.

Keir Starmer's speech on funding for deprived area has been overshadowed by the explosive row over Peter Mandelson's friendship with Jeffrey Epstein. Follow below for all the latest updates

Trade unions are threatening to withdraw support from government and unite against prime minister

U.K. bond yields ticked higher Thursday morning as faith in Starmer's leadership was shaken, but fell on news the Bank of England would hold rates.

Beyond survival, Sir John doubted Sir Keir’s capacity to reverse Labour’s fortunes by 2029. He cited economic recovery and NHS waiting lists as pivotal, but stressed a deeper flaw. Sir John said: "Starmer doesn’t provide his party or the country with any sense of direction. It is the fact that he hasn't been able to do 'the vision thing.'"

The student loans system is ferociously complex and has been overhauled many times since tuition fees were introduced by the last Labour government in 1998. Worst hit at the Budget were those who started university between 2012 and 2022, and face interest rates of up to 6.2 per cent.

Some MPs speculate that a cabinet resignation could lead to a collapse in support for Sir Keir, as it did for Boris Johnson when Sajid Javid and Rishi Sunak resigned. But at the moment, it's not clear who would lead that charge.

SAM LISTER: Oh dear, Keir.