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In Brussels it is an open secret that the EU would rather negotiate with Brexiteer Rishi Sunak than former Remainer Liz Truss. 

Mr Sunak is seen as the lesser of two evils, despite Ms Truss having campaigned for Remain in the 2016 referendum. 

James Crisp details how the Foreign Secretary’s goodwill with the bloc evaporated. 

Ms Truss has extended her lead over Mr Sunak in the Tory leadership race, according to a poll of party members by YouGov, but polling guru John Curtis thinks it is not all over yet for Mr Sunak, as the leadership race could be much closer than many think. 

After Ms Truss’ U turn on public sector pay reforms, Matthew Lynn outlines why she should have stuck to her guns and the Telegraph View is that her regional pay plan was worth pursuing.

Savings to be ‘wiped out’ for one in five families

Britain is plunging into recession as the surging cost of living inflicts a long-term pay cut on struggling workers and wipes out the savings of more than two million families, one of Britain’s leading forecasters has warned. Soaring bills will force millions of people to use their savings or turn to borrowing to pay for the basics as inflation climbs to 11pc, according to the National Institute for Economic and Social Research. Around 5.3m households will have no savings at all by 2024, one in every five, and twice the current level. Another 1.7m will be left with less than two months of income in the bank, making them vulnerable to financial surprises. Read how real personal disposable incomes are predicted to fall and how to beat soaring bills by investing in energy companies.

Gary Lineker: I will not be bullied into self-censorship

Gary Lineker says he will not be “bullied” into censoring himself on Twitter after mocking the “ludicrous” furore sparked by a pun he made about Chloe Kelly’s celebration of the goal that secured European Championship glory for England Women. Lineker vowed to continue to post “funny” comments on the social media site in defiance of the response to what feminist campaigners branded a “misogynist” remark in relation to Kelly removing her shirt and exposing her sports bra after poking home the winner. The Match of the Day presenter, who was also accused of “casual sexism”, chose to delete the tweet after it sparked hundreds of crude jokes in reply. Read what he told the Telegraph.

Today’s political cartoon

Liz Truss’s U-turn on her public sector pay plan inspired Blower‘s latest cartoon. Matt is away, but you can view his latest work here.

Also in the news: Today’s other headlines

Drought impact | New hosepipe bans are expected to be announced as soon as today, with the public told to report their neighbours if they are wasting water in hard-hit areas. With the south-east of England worst hit by dry conditions, government advisers have suggested that households should be told if they are using more energy than their neighbours to encourage them to cut down, reduce bills and avoid winter shortages.

Around the world: Taiwan on high-alert as Pelosi visits

Taiwan is on high alert as Nancy Pelosi touched down on the island to a storm of Chinese threats and military manoeuvres. The speaker of the US House of Representatives landed in Taipei on Tuesday, becoming the highest-profile American official to visit in 25 years. This morning she visited Taiwan’s parliament, hailing the country as “one of the freest societies in the world”. She pledged to increase parliamentary exchanges between the US and Taiwan after being received by vice-president of the legislative body, Tsai Chi-Chang. Yet Sophie Yan reveals how Ms Pelosi’s high stakes trip to Taiwan risks a flare-up in US-China relations.