PM was grilled by Kemi Badenoch on suitability of Mandelson for job as US ambassadorHelena Horton is a Guardian environment reporter.Emma Reynolds, the new environment secretary, had a difficult job this morning: meeting a group of farmers after Labour caused fury in the rural community by introducing a new inheritance tax.The Treasury reserve, designed to be used for “genuinely unforeseen, unaffordable and unavoidable pressures” has recently been used to fund higher public sector pay and compensation payouts.In a letter to ministers, the chancellor said Treasury would only consider providing reserve funds to departments that have already maximised their savings …