Isabel Hardman

Lord McAlpine has broken cover this morning after the Guardian named him in its story claiming the peer is a victim of mistaken identity in the swirling allegations about a Tory paedophile. He has released a lengthy statement, which you can read here, denying the 'wholly false and seriously defamatory' claims, and adding that he never visited the children's home where the abuse is alleged to have taken place: 'The facts are, however, that I have been to Wrexham only once. I visited the local Constituency Conservative Association in my capacity as Deputy Chairman. I was accompanied on this trip, at all times, by Stuart Newman, a Central Office Agent. We visited Mary Bell, a distant relative of mine and close friend of Stuart Newman. We did not stay the night in Wrexham.

Andrew Mitchell emerged from his post-resignation exile on the backbenches this morning to defend his decision to sign off on a £16 million aid cheque to Rwanda on his last day in the International Development department. The former chief whip was summoned before the International Development select committee, where he described as 'offensive' the suggestion that he acted as a 'rogue minister' in funding development in the country. Mitchell told the committee that Britain's aid programme to Rwanda had been suspended because of concerns that its president Paul Kagame was funding rebel group M23 in the country's neighbour, the Democratic Republic of Congo. He said the Prime Minister had asked that aid only be reinstated if three conditions were met.

David Cameron and Angela Merkel are eating dinner together tonight, over which they will discuss the forthcoming European Budget summit. The discussion may make even the sweetest crème brûlée taste rather sour, with Cameron continuing to threaten to veto anything above a real-terms freeze in the budget. He has told reporters following him around on his tour of the Middle East that he will make the argument for a freeze 'with vigour'. As she arrives in Downing Street, Merkel will be mindful, though, that she has a key role in trying to reach a consensus between the British position and the desire of other countries in the union for more money.

Tory sources have confirmed that Nadine Dorries has had the whip withdrawn until she returns to Westminster to explain to the chief whip why she has gone on 'I'm a Celebrity, Get Me Out of Here!' Her constituency association was shocked by the revelation, which appeared in this morning's papers, and a number of Conservative MPs have been suggesting she should resign as an MP. Dorries' justification is that the programme reaches a far wider audience than Parliament usually does, but this is the latest in a long string of what teachers might call 'challenging behaviour' from the Tory MP.

Nick Clegg and David Cameron still can't agree over the future of the boundary review, and their continuing stalemate led to legislation on individual voter registration being shelved indefinitely in the House of Lords. An amendment to the Electoral Registration and Administration Bill tabled by Labour's Lord Hart and backed by Lib Dem Lord Rennard would have delayed the changes until 2018 - in line with Nick Clegg's pledge of revenge this summer that the review be delayed until after the 2015 election. The problem is that Cameron didn't know about the amendment until his staff read about it on Paul Waugh's blog, and he apparently lost his rag with Clegg as a result.

Iain Duncan Smith was strangely vague this morning when Andrew Marr asked him whether he thought Britain could survive outside the European Union. He said: 'I'm an optimist about the UK. I've always been involved with our trade with our European partners which we will always be doing whatever this relationship is, and the Prime minister will talk about that in the future… We're a member of the European Union, that gives us benefits but we have to figure out where that's going. But in the world we are a global trader already, we're more of a global trader than any other country in Europe. So I hate this argument that says, you know little Britain outside, or… We can both be within our trading relationships within Europe, we can also be a fantastic global trader.

After being told he faced a year's suspension from the House of Commons and immediate suspension from the Labour party, Denis MacShane has announced that he is stepping down as an MP. He released this statement this afternoon: 'In the light of the Parliamentary Commissioner’s decision supported by the Committee of Standards and Privileges to uphold the BNP complaint about expenses claimed in connection with my parliamentary work in Europe and in combating anti-semitism I have decided for the sake of my wonderful constituency of Rotherham and my beloved Labour Party to resign as an MP by applying for the Chiltern Hundreds or as guided by the House authorities.