Wes Streeting to address Labour conference as RAF Fairford plot probed

Defence Secretary Wes Streeting is due to address the Labour Party conference in Liverpool within minutes, with an alleged bomb plot at RAF Fairford and the Government's budget problems dominating the event.

It is understood that an Iranian link to the alleged plot is being investigated. Streeting was asked about a farmer who called 999 with suspicions. He said: 'I think she acted by her own admission quickly and thoughtfully and she did the right thing. With respect though she does only have a partial picture.'

The suspected plot at RAF Fairford in Gloucestershire has become a major focus. The Prime Minister cancelled some engagements yesterday. There is tension around the conference because the situation is unfolding and could escalate. It also has an American link. Streeting was careful in his comments, aware of the risks of putting too much information into the public domain.

His speech is expected to cover what has been called the defence-shaped hole in the Government's budget and what he plans to do about it. The Chancellor and Foreign Secretary are also among senior figures speaking, but the security situation is at the top of the agenda.

Away from security, the conference slogan 'Hope again' is running into economic reality. Diesel prices have hit a record 199.18. Government debt is at 98% of GDP, and interest rates on UK government debt are rising. That makes the calculus before the Budget tougher.

The Chancellor is due to speak after Streeting and is expected to deliver a message of hope, including talk of re-industrialisation and shipbuilding, with more procurement from the UK. But it is unclear what practical levers ministers can pull.

Discussion at conference has focused on the cost of living, including the weekly supermarket shop. Global factors such as fertiliser shortages in the Middle East and oil shortages linked to the Straits of Hormuz could push up food and fuel prices, and domestic policy cannot easily fix them. Ministers also face a choice over whether to extend a fuel duty freeze, which would require finding billions of pounds.

The public finances are under pressure from a defence black hole, existing commitments, and lower migration, which reduces tax revenue and may have created a £3bn to £4bn gap. Andy Burnham was cited as one figure who keeps promising things to give people hope. The wider question is whether Number 10 and Number 11 can present a joined-up vision.