In today’s newsletter: The party have been criticised for being too pessimistic while Keir Starmer has been rocked by a scandal over freebies. Can the party reset their message to the public in Liverpool?

• Sign up here for our daily newsletter, First Edition

Good morning.

Since the party won the election in July, Labour’s messaging has been downcast. Abandoning the high spirits that followed their seismic victory, Keir Starmer has opted for gloom-laden predictions of hard times ahead. The prime minister’s message to the country late last month was that “things will get worse before they get better”. Coming into office and immediately setting expectations so low is a political risk – if there was ever a moment to lead with hope and optimism, critics argue, it is now. As Labour’s annual party conference kicks off in Liverpool, there are big questions about whether the government will move on from the pessimism that has characterised their first few months in power, and steer the tone and tenor of the conversation on to something else. In a conversation in yesterday’s Observer, the prime minister was keen to stress that he offers more than just doom and gloom, with plans to provide a vision for what Britain could be.

Israel-Gaza war | Seven people have been killed after an Israeli airstrike hit a school housing displaced people in western Gaza City, Palestinian health officials said. Meanwhile, Hezbollah has said it has entered an “open-ended battle of reckoning” with Israel after launching a series of rocket attacks on the north of the country as world powers implored both sides to step back from the brink of all-out war.

Politics | Rachel Reeves will announce that she has ordered investigations into more than £600m worth of Covid contracts awarded under the Conservatives as Labour struggles to get back on the front foot over questions of ethics.

Sudan | The UN secretary general, António Guterres, is “gravely alarmed” at reports of a full-scale assault on the Sudanese city of al-Fashir by the paramilitary Rapid Support Forces and has called on its leader to halt the attack immediately, according to Guterres’ spokesperson.

Business | Fifty pubs a month closed for good across England and Wales in the first half of this year, with experts warning that tax rises in 2025 could make it even harder for some businesses to keep their doors open.

Inflation | The price of petrol and diesel in the UK is falling at the fastest pace this year, with households paying about £4 less to fill up a family car than they did a month ago.