Ten Things You Need to Know Today: Saturday 4 Mar 2017

1. Theresa May 'can reject' EU’s demand for £50bn

Peers have told Theresa May she can walk away from the EU without paying a £50bn "divorce settlement" being demanded by Brussels. A Lords committee said the government would be in a "strong" legal position if the Article 50 talks ended without a deal. However, the committee also warned failure to reach any kind of financial terms would undermine May's aim of securing continued favourable access to EU markets.

2. DPD 'charges courier driver £150 for being ill'

Courier drivers who deliver parcels for a string of top firms including Amazon, Marks & Spencer, River Island and John Lewis face being charged £150 a day if they cannot find cover when they are sick. The DPD drivers told The Guardian the contract clause means they sometimes force themselves to work when they are ill. DPD made more than £100m in profit in 2015.

3. Mike Pence defends use of personal email account

Mike Pence has defended his use of a personal email account to conduct state business during his reign as Indiana's governor. The US Vice President says "there's no comparison" between his situation and the row that blew up around Hillary Clinton's use of a private email server. Pence used a personal AOL email account to discuss issues like the resettling of Syrian refugees. His account was hacked.

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4. Sinn Fein cuts DUP advantage to a solitary seat

Sinn Fein has slashed the DUP's 10-seat Stormont advantage to a single seat on its greatest night in Northern Ireland election history. The Democratic Unionist Party grabbed 28 of the 90 seats to narrowly remain the largest party in Northern Ireland. Sinn Féin and the DUP have three weeks to establish a government to avoid devolved power returning to Westminster for the first time in a decade.

5. China follows Trump by increasing military spending

China has announced that it will increase military spending by about 7% this year. The development comes a matter of days after Donald Trump revealed a boost to the US defence budget. Beijing has been hastily modernising its armed forces in recent years as its economy expands. Government spokeswoman Fu Ying said the aim of the move was "preservation of peace and security in this region".

6. 'Thousands to die early' because of VW emissions

Scientists say that thousands of Europeans will die early because of air pollution caused by the Volkswagen cars that were fitted with illegal devices to cheat emissions tests. The experts at the Massachusetts Institute of Technology studied the impact of the 2.6m affected cars and found that the extra toxic nitrogen oxides they had already emitted would cause 1,200 people to lose as much as a decade of their life.

7. Local authorities call for drink-drive limit to be reduced

Local councils and fire chiefs are calling for the government to lower the drink drive limit to the equivalent of less than a pint of beer. The Local Government Association says the change could eventually save more than 300 lives a year by reducing drink-related car accidents in England and Wales. The LGA wants the current "safe" limit reduced from 80mg to 50mg of alcohol per 100ml of blood.

8. Controversial gas tanker arrives from Peru

A tanker has arrived in the UK carrying a cargo of gas from the Peruvian Amazon. The batch is believed to be the first shipment to the UK from the Camisea project in rainforest 60 miles from Machu Picchu. The Camisea gas has been massively controversial after a report by the human rights organisation Survival International blamed developers for bringing diseases which killed people from previously un-contacted tribes.

9. Child embarrasses 'Sir' Nigel Farage live on television

Nigel Farage was embarrassed by a child on-air yesterday when mock knighthood ceremony went wrong. As 'Sir Nigel' arose during the stunt on RT, than the girl who had 'knighted' him said: "My mummy says you don’t like foreigners." Farage, said: "That’s not quite right", while the host said: "No, no, little girl, no, no no. You’re not supposed to say that. That’s very naughty."

10. Banksy decorates 'walled off' Bethlehem hotel

The street artists Banksy has decorated a new hotel which prides itself on the "worst view in the world". The Walled Off Hotel in Bethlehem looks out on the concrete slabs of the barrier Israel built in and around the West Bank. The venue's owners say it will be a genuine hotel establishment, opening later this month, but the hotel is also an art gallery and political protest.