Katy Balls

It's budget day in the Scottish parliament and the Scottish finance secretary has just resigned. Derek Mackay has quit his role as finance secretary hours before he was due to deliver his budget following a story published in the Scottish Sun alleging he sent inappropriate messages to a 16-year-old boy on social media. The paper published a list of messages Mackay had allegedly sent to the boy since contacting the individual 'out of the blue' in August of last year. The messages published include Mackay, 42, seemingly telling the teenager he was 'cute', that he was 'looking good with new haircut' and inviting him to a dinner.

Since Boris Johnson returned to No. 10 with a majority of 80, there's been a growing sense that the Prime Minister and his team plan to use their newfound political capital to challenge the status quo. High on the list of institutions and conventions that they believe require a shake-up is the BBC. Today Culture Secretary Nicky Morgan began to put the meat on the bones of the government's vision for the public service broadcaster. In a speech at Policy Exchange on the future of media and broadcasting, the Conservative peer confirmed that the government is launching a consultation on whether to decriminalise non-payment of the licence fee. She also said the government would launch a detailed and 'open-minded' review of the BBC’s long-term funding model.

The government has this afternoon unveiled its response to the Streatham terrorist incident on Sunday – which saw a man recently released for terror offences stab civilians in south London. Speaking in the Chamber, Justice Secretary Robert Buckland said that the government will table emergency legislation to end automatic early release for convicted terrorists. Under the plans, terror offenders will only be considered for release if they have served two-thirds of their sentence rather than half and then it will be subject to the approval of the parole board. Crucially, this will retrospectively end automatic early release for 220 convicted terrorists who are currently behind bars.

As the second round of Brexit negotiations loom with the EU, there's already talk of an early bust-up coming up the track. James reports in his Sun column that the UK and the EU are currently very far apart when it comes to expectations for the trade talks. Figures on the Brussels side believe that they can get the UK to sign up to things – such as a continued role for the European Court of Justice – when Boris Johnson is seeking a much looser arrangement. This distance between the two sides means that figures in government have already begun work on a Plan B in the event Johnson cannot secure the Canada-style free trade deal – that would cover goods but at most only minimally cover services – he desires.

Claire Perry, who is now known as Claire Perry O'Neill, is to leave her role as President of the UN Climate Change Conference, Coffee House understands. Over the summer, the former Minister of State for Energy and Clean Growth had been nominated to serve as the President of COP 26 – for when the UK takes over the stewardship of the global effort to tackle climate change in a conference in Glasgow this November. However, a Whitehall source says that this will no longer be the case: ‘Everything to do with COP is being integrated with the SoS BEIS from this weekend. Clare Perry will no longer be involved. We wish her well after all her brilliant work.’ In a organisational shake-up, the Business Secretary will have full charge of plans for the conference.

What will the UK's immigration system look like after leaving the EU? During the general election campaign, Boris Johnson committed to an Australian-style points based system. He also committed to bringing immigration levels down. But besides these two points, little is currently known about the specifics of how the new system will operate when it comes into effect next January after the transition period ends. Today, the Migration Advisory Committee – which provides the government with recommendations – has published a report intended to help the government add flesh to the bones of their plans. However, it raises potential issues over the current strategy being pursued by Johnson.

It's decision time in No. 10. This week ought to be the week in which a decision is made on whether HS2 should proceed – and whether Huawei should be given access to the UK's 5G network. Whichever way the government moves on these issues, a chunk of the Tory party will be left unhappy. On HS2, the initial signs suggest the government is leaning towards giving the project the go ahead – at least in some form. No decision will be made until Boris Johnson meets this week with Sajid Javid and Grant Shapps, the Transport Secretary. However, on Sunday, Stephen Barclay – the Brexit Secretary – suggested on the Andrew Marr show that high speed rail was a key part of the government's promise to level up the country.

Anyone who tunes into Prime Minister's Questions these days ought to be prepared to hear the issue of Scottish independence raised multiple times. Since winning seats in the snap election from the Tories, Labour and the Lib Dems, SNP MPs have been keen to say that the case for IndyRef2 has never been stronger However, Boris Johnson takes a different view. The Prime Minister has said he will not give permission for a second independence referendum – and has rejected Nicola Sturgeon's request. So, is IndyRef2 off the cards while Johnson resides in No. 10? I put this to Joanna Cherry – the SNP's Justice and Home Affairs spokesperson – on the latest episode of The Spectator's Women with Balls podcast.

Lisa Nandy has won the endorsement of GMB and is one step away from reaching the final stage of the Labour leadership contest. Announcing the decision, the union's general secretary Tim Roache said: 'Lisa Nandy is a breath of fresh air in the debate over Labour’s future. The more members see of Lisa in this contest the more impressed they will be by her ambition, optimism and decisive leadership. GMB is proud to nominate her. Lisa won’t shy away from the tough challenges or bold decisions that lie ahead, because she knows that after fifteen years of losing elections, more of the same won’t cut it.' This is significant for two reasons. Firstly, it means Nandy is very likely to make the final stage of the contest.

Ever since Boris Johnson won a majority of 80 in the December snap election, the Conservative benches have been a place of unity and happiness. It's far removed from the past year of infighting and blue on blue attacks. However, today cracks began to emerge as an issue came to the fore which divides Conservative opinion: HS2. A leaked copy of the HS2 report the government commissioned has made its way to the Financial Times. The report cautiously paves the way for the project to be green lit when the review ends. However, it also carries numerous warnings about the spiralling costs of the project and raises questions over the value the second stage of the infrastructure would offer.

The second stage of the Labour leadership contest kicks off today as nominations open for affiliated groups – including trade unions – and constituency Labour parties pick a leadership candidate to support. There are five hopefuls still in contention to succeed Jeremy Corbyn: Keir Starmer, Rebecca Long-Bailey, Jess Phillips, Lisa Nandy and Emily Thornberry. Over the next month, each will need to either win the support of three affiliates or 33 CLPs in order to reach the final stage of the contest – where the membership has the final say. With the race now out of the control of the Parliamentary Labour Party, the issue of which candidate is most liked by MPs starts to become a side point.