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Many part time public sector workers earning less than £21,000 a year will have their pay frozen for two years, it emerges.

The government sees off calls in Parliament to scrap its planned rise in VAT to 20%, winning key votes on the Finance Bill.

Ministers are to review counter-terrorism powers including the 28-day limit on holding suspects without charge.

The defence secretary is to argue for well-equipped armed forces, capable of intervening abroad whenever necessary.

Gordon Brown offered to step down within a year even if Labour was re-elected, Lord Mandelson reportedly says in his memoirs.