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Foreign Secretary Ed Miliband has summoned Iran's ambassador and said Britain will not tolerate threats on its soil, after the incident at RAF Fairford. Two Iranians, including the head of the regime's counterespionage operations, have been sanctioned.
Sources say hundreds of millions of pounds are expected to come out of the boiler upgrade scheme as the energy department hunts for more than £2bn in savings to help pay for higher defence spending.
Labour has signalled it will put unsustainable debt on the G20 agenda when the UK takes the chair next year, as heavily indebted developing countries absorb the worst of global bond market turmoil.
Israel says the consul general and 20 diplomats are leaving the British consulate in occupied East Jerusalem, but the UK insists the building is not closing and will operate as UK Mission, Jerusalem.
