The Duchess of Cambridge told Lady Marion Body, a former colleague of her late grandmother's, that it was "so moving" to meet her and to visit Bletchley Park, the famous "spy school" during World War II.
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David Cameron said the measure, which will save £4 million by 2020, showed a commitment to his "all in this together" approach.
The party has dropped its opposition to an in/out referendum on EU membership and now supports a vote, acting leader Harriet Harman said.