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  1. Labour's acting leader Harriet Harman says the party will not oppose a bill for a EU referendum
  2. Business Secretary Sajid Javid tells the Andrew Marr Show limiting EU migrants' tax credits is key to EU negotiations
  3. Lord Hill tells The World This Weekend of "extraordinarily strong case" for UK to stay in EU
  4. Rushanara Ali says she will target UKIP as she enters Labour deputy leader race
  5. Lord Prescott announces he will back Andy Burnham for Labour leader

Live Reporting

By Alex Hunt, Victoria King and Paul Gribben

All times stated are UK

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Recap of the day

It's been a busy bank holiday Sunday on the politics front. Among other things, we learned today that Steve Hilton - former adviser to David Cameron - is a long-term fan of Harriet Harman. Anyway, here are the main political stories of the day so far:

Labour EU-turn - acting leader Harriet Harman has said Labour will now support plans for an EU referendum by the end of 2017.  

- Limiting the rights of EU migrants to claim tax credits will be a key part of the renegotiation,  Business Secretary Sajid Javid said .  

- The business secretary also ruled out returning to proposals to make it easier for firms to sack staff using no fault dismissals .

Rushanara Ali is entering the contest to be deputy Labour leader, with a pledge to target former supporters who have switched to UKIP.

- Former Deputy Prime Minister Lord Prescott has said he is backing Andy Burnham to be the next leader of the Labour Party.  

- Scottish Labour MSP Ken Macintosh needs to "spell out" his accusations against the "party machine", a former first minister has told the BBC .

Thanks for joining us and Politics Live will be back on Tuesday morning as the build-up to the Queen's Speech gets into full swing.

Mayor Hilton?

Steve Hilton

David Cameron's former strategy adviser Steve Hilton says he could run for office in the future - possibly to be London mayor.

Mr Hilton told 5 live's Pienaar's Politics he loved the idea of being able to "make a difference" and "help people live a better life" in a city.

He also said that if he never ran for office he would probably "regret it".

But he said anything would be a long way off, as he was focused on his job in California, running a tech company.

Read full story

Ministers' pay to be frozen

More from the Sunday papers - government ministers' pay will remain frozen for the next five years, David Cameron has announced

Writing in the Sunday Times , the prime minister said we were "all in this together" when it came to paying off the national debt.

His pledge will save about £800,000 a year and £4m by 2020.

The decision means ministerial pay will not have risen for a decade by the end of parliament. Cabinet ministers currently receive a salary of £134,565.

This includes their pay as MPs. The prime minister is paid a total of £142,500.

Read more

Prescott backing Burnham

Prescott and Burnham

In case you missed the morning papers, former Deputy Prime Minister Lord Prescott has said he is backing Andy Burnham to be the next leader of the Labour Party.

Writing in the Sunday Mirror Lord Prescott said Mr Burnham had "one thing all leaders crave - the common touch".

He also criticised former leader Ed Miliband for resigning "prematurely" and "before the successor could be elected".

He likened Mr Burnham to that of former Labour Prime Minister Tony Blair.

Many people talk about aspiration but Andy is a living example - a working-class lad from Liverpool who went to a ­comprehensive and got a place at Cambridge University. Andy also has that one thing all leaders crave - the common touch. I've seen him in small groups and big meetings. People instantly warm to the guy. He's a family man who loves his football."

Cameron has 'credit'

Pascal Lamy,  one of Europe's most senior politicians, says David Cameron will be met with "understanding" by fellow European leaders as he goes about his renegotiation - they know how hard it is to win an election or a referendum, he tells The World This Weekend.

"He starts this discussion with a credit. He shouldn't overdraw on his credit," Mr Lamy continues. 

The former director general of the World Trade Organization says Mr Cameron's time frame - a referendum before the end of 2017 - isn't compatible with wholesale EU treaty changes, which take an "extremely long time".

What if the UK did leave? "I think it would be bad news. I think it would hit the, sort of, credibility [of the EU]," Mr Lamy says. The rest of the world - China and the US, for example - see the European Union as having brought about "two miracles" - peace between France and Germany, and the UK as part of Europe, and a Brexit would clearly destroy one of them.

Reaction to Lord Hill

Via Twitter...

Is Lord Hill telling us that China, Russia and the USA don't have access to the EU's "Single Market"?

Lord Hill, who now represents EU not UK, says UK 'cannot have its cake & eat it'. Disagree - UK can, as EU's top market & 5th world economy

Lord Hill: "This is all like a Test Match. People are interested to see what will happen". It's all over for England in Europe then.

'Behind the scenes'

BBC Radio 4

Lord Hill says he thinks he can "play a role in helping both sides understand each other" during the EU renegotiation process. "That's best done quietly behind the scenes," he says.

Two things really matter, though, he tells The World This Weekend. "First, the wish, desire, on the part of other countries for Britain to remain part of the EU is very strong.

"Secondly, Europe is very good at finding solutions to problems when it sets its mind to it."

Reaction to Rushanara Ali bid for Labour deputy leaders

Via Twitter...

glad @rushanaraali has entered Deputy Leader race, especially after principled refusal to vote for air strikes. Will bring a new perspective

so happy Rushanara Ali is standing for deputy leader. Labour has new energy and a real future

Rushanara Ali shouldn't be deputy leader: not cos she's a woman (I'm rooting for @stellacreasy) or a Muslim (I voted for a Muslim candidate)

... but because she (Rushanara Ali) is a lightweight, the last thing Labour's leadership/Shadow Cabinet needs now.

'You can't have your cake and eat it'

BBC Radio 4

Lord Hill

Lord Hill - a former member of David Cameron's cabinet and now his EU commissioner - has thrown his weight behind the UK remaining inside the EU.

He told The World This Weekend: "The business benefits of our membership, the benefits to Britain for geopolitics and for our diplomacy generally, the benefits to be able to try to deliver meaningful free trade agreements, either with the United States or with China. Those to me all seem like an extraordinarily strong case to stay in.

"I think it's true in politics as in life that you can't have your cake and eat it. You can't have easy access to a single market, you can't be part of free trade negotiations, you can't be part of an effective European diplomacy, without being a full member of it."

'No fault dismissals' dismissed

Business Secretary Sajid Javid whistled through quite a few topics on The Andrew Marr Show this morning, presenting a challenge to our speedy typing. He ruled out revisiting proposals to make it easier for firms to sack staff using "no fault" dismissals.

The  Beecroft report  on employment law in 2012 suggested small firms be able to dismiss people without a reason, in return for paid compensation.

But the plan, which would have cut unfair dismissal cases, was  blocked in the coalition  by the Lib Dems.  Read more.

Farage on Labour's EU move

Nigel Farage in Strasbourg

UKIP leader Nigel Farage has given his thoughts on Labour's decision to drop its opposition to an EU referendum.

The Labour Party has been dragged, unwillingly, to accept the inevitable that there will be an in/out EU referendum in the next two years... They grudgingly accept that it is the will of the British people to have a say on their future, but they make it clear that they will campaign for in, whatever the result of Mr Cameron's negotiations."

Mr Farage said Labour "pre-rejecting" any arguments about whether the UK could actually be better off outside the EU, showed "the paucity of vision and ambition they have for this country and its people".

They must allow individual members of the shadow cabinet and the Parliamentary Labour Party to campaign and vote on this great matter freely, unwhipped."

First hurdle

Labour politicians

The Labour leadership paddock is filling up, so in case you've lost track, we've rounded all of the runners and riders up in one place for you. It's important to remember, though, that some will fall at the first hurdle - stretching the metaphor a bit now, we know - because each one needs the backing of 35 of their fellow MPs in order to get their name on the ballot paper.

Threat of resignation

The Daily Telegraph

Earlier, we heard fighting talk from the SNP on the UK's possible withdrawal from the Human Rights Act - something that was in the Conservative manifesto. 

Today's Sunday Telegraph quotes one unnamed minister as saying they "will probably oppose it" and could resign over the issue. "The idea that my constituents should have fewer protections available as a last resort is not something that I can accept," the minister said.

More on tax credits

Sajid Javid

Business Secretary Sajid Javid talked about tax credits earlier and changing what migrants to the UK could get. This is what he said in full: 

"If you have someone from the EU coming to Britain working full time, with a couple of kids, they would get around £700 a month, that's almost £8,000 a year in tax credits. That's twice as much as Germany, three times more than France would give. So you can see the pull that generates and that's the kind of thing we need to change... It's a very key part of our negotiation."

For background, tax credits are benefits given to supplement the income of people responsible for children, disabled workers and other workers on low salaries. They're tax-free, but means-tested, and eligibility depends on circumstances. For example, a household with one child may be eligible for some tax credits if collective income is less than £26,000 a year before tax. 

New job for Natalie

The Sun

Natalie Bennett

According to the Sun, Green Party leader Natalie Bennett has made it to Parliament despite not being elected as an MP. The paper says she has been appointed as a junior researcher for Green peer Baroness Jenny Jones.

Obama 'won't intervene' against IS

Islamic State fighters

More on the subject of escalated military intervention against so-called Islamic State. Of course, at present, the UK is involved only in air strikes against the jihadist fighters in Iraq, but former Chief of the General Staff Lord Dannatt has said that needs to change.

For his part, Conservative former defence secretary Liam Fox told Sky News the US would have to be the "prime mover" in any action.

"I think that is out of the question under the Obama presidency. I think even if he were to be persuaded that it was the right thing to do, and I'm not sure at all that he is, then I don't think he would be willing in the last year or so of his presidency to have that as his legacy given that he came to office saying he was going to withdraw America."

Dr Fox continued: "The second part of that is all these countries in the Middle East and beyond who say they don't want American influence in the Middle East are now really changing their tune and saying, 'Ah, it's not working, maybe it's time for America to re-engage.' You know, maybe it's time for the rest of us to start putting our money where our mouth is and having better collective security."

Labour 'sleepwalking' on the EU

Paul Kenny, general secretary of the GMB union, has given his thoughts on Labour's EU volte-face.

On the EU renegotiations and the referendum Labour must not give Cameron a blank cheque and should beware of the CBI agenda to turn the clock back on employment rights. Labour are sleepwalking into a two-step Europe, with UK workers having the worst rights in the EU for which a big price will later be paid by the party at elections."

Labour 'can't say no'

Sky News

Pat McFadden
Sky News

Shadow Europe minister Pat McFadden told Sky News a little while ago he "can't see circumstances where Labour would recommend a no vote" to staying in the EU.

"I don't think that the European Union necessarily always works best by always threatening to leave. We've achieved change in the past by working with others, the prime minister is going to have to get some agreement from others to some of the changes that he wants so let's see what he comes up with." 

Coming up

On The World This Weekend...

UK's European Commissioner Lord Hill has kept his counsel until now - but tells #tw2 Britain cannot have its cake and eat it over EU

Lord Hill tells #tw2 that he will want to make the case for Britain staying in the EU ahead of a referendum

Working the back channels

Joanna Cherry
Sky News

"The SNP would be happy and proud to lead the opposition to the repeal of the Human Rights Act in the House of Commons," the party's justice spokesman Joanna Cherry says. She refers to the SNP's "contacts with Tory backbenchers" - "some informal channels" - and says that as a lawyer herself she speaks to other lawyers within the Conservative Party. "From a legal perspective", she adds, withdrawing from the act is "unsupportable". 

She says it's hard to imagine what David Cameron could possibly put in place that would give citizens the same protection as the Human Rights Act.

Better job?

Sky News

Ed Miliband is a good man and I was proud to serve in his shadow cabinet... I didn't sit in shadow cabinet thinking, 'I could do a better job.'"

Mary CreaghLabour leadership hopeful

Creagh on the mansion tax

Sky News

Mary Creagh
Sky News

Mary Creagh, one of those Labour leadership hopefuls, has been speaking to Dermot Murnaghan. She was asked whether she supported Ed Miliband's plan for a mansion tax.

"I think that the mansion tax played into the anti-business message we had as a party..." she said. "The mansion tax was a symbolic thing. I think it was almost impossible to administer on a local basis." 

Asked whether she argued against it behind closed doors, she adds: "It was something that was presented quite late on as the way of funding the NHS and it was presented without shadow cabinet discussion."

Facing up to reality

Carole Walker

Political correspondent

Union and EU flags

Labour's change of heart on Europe brings the party's overall position into line with that already taken by several of the candidates hoping to be its new leader. What'll be interesting to see is whether Labour will actually whip all of its MPs to support continuing EU membership when it actually comes to the crunch. We don't often hear about it, but there is a significant minority in the party that is Eurosceptic 

For now, though, I think this is Labour facing up to reality - for them to be saying, 'No, no, we don't want people to have a say in this' just wouldn't be the best direction to pursue.

'Blood on the floor'

John Pienaar

Pienaar’s Politics

A discussion now on the Labour leadership. Dan Hodges, a political commentator, says Labour MPs aren't clear in their own minds about what sort of leader they need. Some think they need a new Blair, someone who can totally change things, he tells Pienaar's Politics, but what they definitely need in terms of a contest is "blood on the floor" - "Labour does need to have a fight." 

Isabel Hardman, from the Spectator, says all the candidates are basically saying the same thing - it would almost be nice if someone said they didn't care about aspiration or business, she jokes. Kieran Stacey, political correspondent for the FT, says it's a bit dangerous for all the candidates to distance themselves from everything Ed Miliband campaigned on. "What you're essentially saying to voters is, 'we were lying to you.'"

Future of fox hunting

The deputy political editor of the Daily Mail tweets...

Liam Fox says pro-hunting MPs haven't got the numbers to repeal the ban: 'I don't see it happening,' he tells @MurnaghanSky

Best outcome?

John Pienaar

Pienaar’s Politics

Stewart Hosie

You must be at least a bit relieved to see a Tory majority because it surely makes it easier to push for another independence referendum, Stewart Hosie is asked.

"That's absolutely wrong. We did not want to see a Tory government..." he insists, adding: "Arguments for and against independence will stand on their own two feet."

Seat wars

Political Correspondent, Daily Telegraph, tweets...

"I fully expect this to be properly resolved tomorrow," @StewartHosieSNP says of arguments over Commons seats. Dennis Skinner to keep place?

'Stonking mandate'

John Pienaar

Pienaar’s Politics

Stewart Hosie, deputy leader of the SNP, tells John Pienaar that his party has "a stonking mandate" and "a very powerful position" in Westminster. We'll be on every committee, we'll have committee chairmanships, he says, and hints that the Conservatives might see the influence of the SNP if they try to abolish the Human Rights Act.

Defence budget

Sky News

On the issue of defence spending, Liam Fox says it's one of the few areas of government outlay that is "not discretionary" - ultimately you have to spend what you need to spend to deal with the threats and protect the nation, he argues. Among those threats, Dr Fox cites "an aggressive, expansionist Russia, redrawing the boundaries of Europe by force" and Islamic State. 

EU 'statehood'

Sky News

Liam Fox
Sky News

Liam Fox, former defence secretary, is over on Sky News. He's talking about EU renegotiation and insists immigration isn't the number one thing that bothers UK voters. "It's a question of sovereignty," Dr Fox insists, and about where UK laws are made. "It's a question of the direction of travel in Europe. It's moving inexorably towards greater integration." He says the EU is "moving towards statehood... and we need to make it clear to them that is not the destiny we see for the UK".

Big name backing

John Pienaar

Pienaar’s Politics

"We should be radical and imaginative. What have we got to lose?" says Rushanara Ali. Give us a big idea then, says John Pienaar. Ms Ali doesn't really come up with one - but she says she wants to build a bigger movement behind the Labour message, starting with young people.

Who are you backing for leader? "I'm going to meet every single one of them. I will reserve my right to use my nomination powers to help someone struggling in the race get what they need to stand," she says.

And who's backing you? Keith Vaz and Tristram Hunt are two of the names Ms Ali picks out.

Runners and riders

Rushanara Ali joins a number of others who have declared their deputy leadership hopes - Stella Creasy, Tom Watson, Ben Bradshaw, Angela Eagle and Caroline Flint.

Packed field

Political correspondent for the FT tweets...

Rushanara Ali tells @JPonpolitics she's standing for deputy leader. That's becoming a crowded contest.

'Couldn't get through to us'

John Pienaar

Pienaar’s Politics

"I'm going to start with going after UKIP voters who left Labour. We have to talk to people who rejected us," Rushanara Ali says. "We have to listen to them."

But many of those voters have problems with multi-culturalism and Muslim people even, it's put to her.

"I grew up in a working-class community. Some of my neighbours were not very friendly," she replies. "I'm used to rejection so I think I have something to offer... I know what it feels like to be an outsider trying to get in.. I think a lot of our voters feel like that - that they just couldn't get through to us."

Deputy leadership bid

John Pienaar

Pienaar’s Politics

Rushanara Ali, Labour MP for Bethnal Green and Bow. tells John Pienaar she wants to run for the deputy leadership.

"I have a huge amount to offer," she says.

Rushanara Ali

'Radical heart'

John Pienaar

Pienaar’s Politics

Is David Cameron a revolutionary? "He's got a radical heart. But he's also got a responsible head," Steve Hilton says.

He also insists that Mr Cameron's cabinet colleagues and the civil service are open to change - "it's the system" that makes the status quo hard to shift.

Mr Hilton hints that a mayoral job might appeal to him in the future too. 

Power to the people

John Pienaar

Pienaar’s Politics

We're switching our attention to Pienaar's Politics now on BBC Radio 5 live. Steve Hilton has popped up there too. David Cameron's former adviser says public services have become so bureaucratic that they've lost all touch with ordinary people.

What will be different now then that the Tories are in government alone, he's asked.

"I think number one is more power moving down to local communities and neighbourhoods," he says. "You've already seen that with George Osborne talking about city mayors." He says the public will start to see the benefits of that sort of devolution. 

Better in defeat

ITN presenter tweets...

It is a bizarre tradition in British politics: folk can come across better in defeat that in the heat of battle: @HarrietHarman @edballs

The Andrew Marr Show

Steve Hilton

In the post-interview sofa chat, David Cameron's former adviser, Steve Hilton, heaps praise on Harriet Harman for her consistent championing of gender equality. She says she "must really be on my way out if I'm getting praise from a Conservative", but thanks him for his kind remarks.

Steve Hilton won't throw his weight behind any particular Labour leadership candidate, but agrees the party must take time to work out what went wrong. Ms Harman says it will be an incredibly open election process. 

There'll be televised hustings in front of tough studio audiences... Let's see who can actually speak to people's concerns... we don't know yet, let the people be the boss."