The Papers: Starmer 'rewarding Hamas' and 'Labour's low blow'

Prime Minister Sir Keir Starmer's announcement that the UK will recognise a Palestinian state unless Israel ends the crisis in Gaza dominates Wednesday's papers. The Guardian leads with the PM's September deadline for Israeli Prime Minister Benjamin Netanyahu to commit to a ceasefire and "accept a two-state solution". The paper says the PM's decision comes as a result of the "increasingly intolerable" situation in Gaza and "now was the right time to finally move".

The Daily Telegraph follows with reaction from the US and Israel on Sir Keir's plan to recognise a Palestinian state. The paper says a US state department spokesperson is calling the PM's decision a "slap in the face" for victims of the 7 October attack on Israel. The paper also quotes Netanyahu saying Sir Keir's announcement "rewards Hamas's monstrous terrorism".

The PM's "reward for Hamas" is echoed in the Daily Mail, with the paper saying the move is a "major diplomatic shift" for the UK. It also teases an exclusive on the "mystery" of the Prince and Princess of Wales' summer holiday on an "enchanting Greek Island".

"Israel blasts Starmer" is the Times' take. The paper quotes Netanyahu saying the PM's ultimatum is "appeasement towards jihadist terrorists" and will "always fail". Sharing the top spot is the Lionesses' "royal welcome" during their victory parade in London on Tuesday. The paper spotlights a photograph of thousands of football fans celebrating the England team as they took the stage in a special ceremony in front of Buckingham Palace.

The Daily Mirror emblazons the PM's "ultimatum" on its front page, highlighting his warning to Israel: "The suffering must end."

The Financial Times features Sir Keir's statement that Hamas must play "no part in the governance of Gaza", calling for them to disarm and release the remaining hostages. Also prominent is the paper's report on a "clash" between Chancellor Rachel Reeves and Bank of England governor Andrew Bailey over Revolut becoming a fully authorised bank.

"Labour's low blow" headlines the Metro as it reports on Nigel Farage's demand for an apology from Technology Secretary Peter Kyle. The Labour minister suggested the Reform UK sided with "sex abusers such as Jimmy Saville" by opposing online protections for children.

The Sun is also still riding high with the Lionesses' "monster raving party". The paper's front page is splashed with a photograph of a sea of red and white-kitted fans cheering as the team parades down The Mall in a "European Champions" adorned bus. Sharing the top spot is the paper's exclusive on TV couple Cat Deely and Patrick Kielty's split after 13 years of marriage.

"You wait years for a trophy... then two come along" sums up the Daily Star in its feature on the Lionesses' victory parade.

Finally, bank chiefs are insisting interest rates should be cut twice more this year to help the UK's sluggish economy, reports the Daily Express. The paper says the International Monetary Fund is calling for lower borrowing costs as the country "reels" from the chancellor's "tax raid".