London politics latest LIVE: Truss fights to save premiership after corporation tax U-turn and Kwarteng sacking

Liz Truss is fighting to save her six-week-old premiership after dramatically replacing her Chancellor and ditching a key pledge of her mini-budget.

Ms Truss sacked her close confidant Kwasi Kwarteng amid ongoing market turmoil over the mini budget and replaced him with Jeremy Hunt - the former Foreign Secretary who had backed Rishi Sunak for the top job.

At a short press conference earlier, the Prime Minister insisted that a U-turn on cancelling a rise in corporation tax and change in the Treasury was in the national interest to calm the markets.

However, former Tory Chancellor, Philip Hammond, warned the events of the past weeks had wrecked the party’s reputation for fiscal discipline, and had her growth agenda “in tatters”.

Allies of the Prime Minister were attempting to shore up her position on Friday evening, with Deputy Prime Minister, Thérèse Coffey, holding a Zoom call with Tory MPs. The call was reportedly poorly attended.

Labour leader Sir Keir Starmer said in a newspaper interview that there needed to be a general election now, regardless of Ms Truss’s position. He said recent events had shown the Tories were at the “end of the road” after 12 years in power.

07:35 , Lydia Chantler-Hicks

Good morning. Today is Friday, October 14 and we’re bringing you all the latest as Chancellor Kwasi Kwarteng prepares to fly back early from the US for “crunch talks” with the Prime Minister over the Government’s mini-budget.

He is currently attending the International Monetary Fund’s annual meeting in Washington, but will reportedly leave a day early to meet with Liz Truss - who is expected to be forced to scrap parts of her mini-budget in the days to come, as she faces mounting pressure to reassure markets and rescue her administration.

The Prime Minister’s key pledge to scrap the planned increase in corporation tax from 19% to 25% is widely seen as a likely casualty in the coming days, as Ms Truss seeks to save her embattled premiership.

Stay tuned for the latest updates throughout the day.

Chancellor’s return ‘not unusual’ says minister

07:43 , Lydia Chantler-Hicks

It is “not unusual” for Chancellor Kwasi Kwarteng to be returning early from the International Monetary Fund’s (IMF) annual meeting in Washington, international trade minister Greg Hands has insisted.

He told Sky News: “It’s not unusual to come back a day early from an international visit…

“The major meat of the meetings of the IMF and World Bank have finished,” he added.

Trade minister on potential for more U-turns: ‘Let’s wait and see’

07:44 , Lydia Chantler-Hicks

Trade minister Greg Hands said “let’s wait and see” when asked if there will be any more U-turns on the mini-budget.

He told Sky News: “Let’s wait and see. You won’t have long to wait for October 31 for the Chancellor to lay out those plans. I do say that the Prime Minister and the Chancellor are absolutely resolute, determined.

“The growth plan (is) the centrepiece, but we’ll have to see some of the detail including a full forecast from the Office for Budget Responsibility on October 31.”

Kwarteng’s position remains ‘totally’ safe, insists minister

07:45 , Lydia Chantler-Hicks

The Chancellor’s position is “totally” safe and the Prime Minister has “total confidence” in him, Greg Hands has said.

Asked if Kwasi Kwarteng’s position is tenable, the international trade minister told Sky News: “Totally. I mean, Kwasi Kwarteng himself said yesterday he is 100% sure he will still be in position. I know the Prime Minister has got total confidence in Kwasi Kwarteng.”

He added that Mr Kwarteng is “an incredibly capable person, a very, very bright person who makes good judgement calls”.

Trade minister ‘doesn’t recognise’ talk of plot to replace Prime Minister

08:04 , Lydia Chantler-Hicks

Greg Hands said he does not recognise reports that senior Tories are plotting the possibility of replacing Liz Truss with a joint ticket of Rishi Sunak and Penny Mordaunt.

Speaking of the alleged plans, which were reported in The Times on Friday, the trade minister told Sky News: “I don’t recognise that story at all.

“I was a supporter of Rishi Sunak; somehow I’d be very surprised at that story.

“I was talking only yesterday with Penny Mordaunt. I don’t recognise that story at all.”

Mr Hands, who was a prominent backer of Ms Truss’s Tory leadership rival Mr Sunak, was asked if the markets would have more confidence if Mr Sunak was in No 10.

He said: “Rishi Sunak did not win the leadership contest, Liz Truss did win the leadership contest. I am dealing with the situation that we are in”.

He added that he has confidence in Liz Truss and urged fellow Tory MPs and the country as a whole to “get behind” the Prime Minister and the Chancellor.

‘Market turmoil is global’ says minister defending PM and Chancellor

08:19 , Lydia Chantler-Hicks

International trade minister Greg Hands insisted Liz Truss and Kwasi Kwarteng’s positions are safe - while seeking to emphasise that UK financial markets are not the only ones in turmoil.

Asked if the Prime Minister and Chancellor will last, he told ITV’s Good Morning Britain: “Yes”.

Pressed on whether Ms Truss will still be in No 10 in a week, he answered: “Oh definitely”.

When it was put to him that their credibility on handling the economy is shot on the global stage, he said: “Well, I disagree. If you look just at the IMF meeting, which is just concluding in Washington, all of the talk there has been about the global challenges, the turmoil in global markets.

“You’re right there is a specific UK element too but overall, we’re talking here about turmoil in global financial markets.”

Kwarteng hits 46-year record low for Chancellors in satisfaction poll

08:49 , Lydia Chantler-Hicks

Kwasi Kwarteng has hit a record low of nearly 50 years for Chancellors after his mini-budget mayhem, a new poll has revealed.

As he flies home early from Washington for crisis talks with Liz Truss, the Ipsos survey for the Standard showed 65 per cent of adults in Britain are dissatisfied with him, and just 12 per cent satisfied, giving him a net rating of -53 just over a month into the job.

No other Chancellor has had a worse rating, even as far back as when Denis Healey was at the Treasury helm in 1976 - the year that the Labour government had to beg the International Monetary Fund for a bailout.

Mr Kwarteng’s net satisfaction figure is on the same level as Norman Lamont’s of -52 in March 1993, around six months after Black Wednesday when the Government was forced to withdraw sterling from the Exchange Rate Mechanism, and Ken Clarke’s of -53 in December 1994, when quarterly unemployment averaged 2.5 million.

Tory Treasury Select Committee chair ‘hopes tax cut U-turn is on the cards’

09:18 , Lydia Chantler-Hicks

Tory MP and chairman of the Treasury Select Committee Mel Stride said he hopes the Chancellor is flying home from the US early to have conversations with the Prime Minister and U-turn on tax cuts announced in the mini-budget.

Speaking to BBC Breakfast, the Central Devon MP said: “What I think I’d like to hear is that these rumours that there will be a reset moment around the tax measures that he announced in late September are correct, because I think things have reached a stage now with the markets and with confidence in those financial markets where we need a fundamental reset.

“So I’m hoping that it’s to engage in conversations with the PM and others and to row back on those unfunded tax cuts announced in September.”

Asked if he has no faith in any of the mini-budget, he said: “I’ve argued for a long time that coming forward with multiple tens of millions of pounds-worth of unfunded tax cuts in a high inflationary environment with a tight labour market and low growth was never likely to lead to a situation where growth suddenly springs forward and everything slots into place.

“It was more likely to lead, I’m afraid, in the kind of lack of confidence that’s been in the markets over the last few weeks.

“But that’s not to say that we can’t reset and I think there is the time to do that.”

Mr Stride stressed that time is of the essence, adding: “Any announcement he’s going to make about U-turns on taxes...he needs to make them sooner rather than later and certainly not wait till the end of the month when he’ll be bringing forward his general plan and this Office for Budget Responsibility forecast.”

Chancellor’s early return from US ‘not a good sign’ says Tory peer

09:19 , Lydia Chantler-Hicks

Conservative peer Lord Ed Vaizey, who is the former minister for culture, said Kwasi Kwarteng cutting his trip to the US short is “not a good sign”.

Speaking to Sky News, he said: “It’s not a good sign, it doesn’t look like the Government is in control.”

He added: “I’m afraid the Chancellor coming back a day early doesn’t fill one with confidence.”

Lord Vaizey said he disagreed with International Trade Secretary Greg Hands, who told Sky that Mr Kwarteng’s early return is not unusual.

“It is quite unusual for this to happen,” he said.

On whether there will be a U-turn, Lord Vaizey said: “I think it looks inevitable. I mean, the Government has absolutely no easy choices after the mini-budget caused such a catastrophic economic crisis.

“I think it’s inevitable there will be changes to the mini-budget. What is now being kind of muted is that there will be some sort of compromise that can still be presented as radical economics.”

Chancellor needs ‘space’ not sacking, says Tory MP

09:22 , Lydia Chantler-Hicks

Asked if Kwasi Kwarteng should go, Tory MP Mel Stride said: “No, I think he needs to be given space. I think the last thing we need at this moment is even more turbulence with a change of personnel.”

He added: “What we need to do, certainly as a parliamentary party, is to deep breathe and stay calm and allow the Chancellor and Prime Minister to have a look at this, make the announcements they’re going to make and give them the opportunity to come forward with this OBR forecast at the end of this month.”

“Now, of course, they’ve got to get all those things right and there is the chance they get them wrong.

“But if they get them right and they can reset with the markets, then I think there’s an opportunity to create a platform on which we can build going forward. But times are very tough here and the risks are really hard.”

Asked about Mr Kwarteng’s credibility being damaged by not taking responsibility for the crisis, Mr Stride said: “I think, to be fair to Kwasi, he has accepted there’s a component within our problems that isn’t simply global, stuff that other countries are going through. There is something here that is unique to the UK and has been caused by the Government’s approach to economy policy.”

Challenged over it just being a “component”, Mr Stride said: “There are no doubts that inflation is a global phenomenon, there’s no doubt that rising interest rates is something that’s happening right across the world largely in response to inflation.

“But it is also the case that the mini-budget itself made things more difficult because the markets were spooked by unfunded tax cuts and that led to increases in interest rates over and above that that would have happened anyway. So there are two components going on here.”

‘U-turn now’, Treasury select committee chair urges Chancellor

09:26 , Lydia Chantler-Hicks

Chairman of the Treasury select committee Mel Stride said his advice to Chancellor Kwasi Kwarteng over U-turning on tax cuts is: “Do it now.”

He told BBC Breakfast markets have seen some stabilisation on the news of a potential U-turn.

“If it doesn’t happen, then the markets may have an adverse reaction to that,” he said.

“So my advice to the Chancellor would firmly be, ‘do it, do it now, make sure it’s something significant, not just nibbling at the edges but something that’s going to be firm, bold and convincing, and do it as soon as possible.’”

...but trade minister maintains there are no plans to change course

09:27 , Lydia Chantler-Hicks

There are “absolutely no plans to change anything” in the mini-budget, including on corporation tax, Greg Hands has insisted.

The trade minister told LBC Radio: “The Prime Minister and the Chancellor are absolutely determined to stick to the growth plan, to stick to the changes they outlined.

“There are absolutely no plans to change anything, except for the fact that there is going to be a medium-term fiscal plan.”

Pressed further, he said: “There’s no change to plans on corporation tax.”

U-turn would be ‘very embarrassing’ says Tory peer

09:31 , Lydia Chantler-Hicks

Conservative peer Lord Vaizey said a U-turn will be “very embarrassing” for Chancellor Kwasi Kwarteng and will damage his authority – but it is “not inevitable” he will be forced to go.

Speaking to Sky News, he said the decision to make a U-turn is a “terrible dilemma” for the Government.

“If he does a U-turn like this, it will be very damaging to his authority,” he said. “Can he get through it? Who knows.

“The fact that people were speculating about the Prime Minister’s leadership this early in her premiership is not ideal but I think he’s just got to bite the bullet. He’s got to try to give the markets confidence in the British economy. And if he can do that then perhaps he can say: ‘Well, I had to do some difficult choices, slightly humiliating choices but the result is stabilisation and I can move forward.’”

On the mood among Tory backbenches, Lord Vaizey said: “I think the mood is relatively bleak in the sense that this is a self-inflected wound.

“We didn’t have to have a mini-budget that was so radical and which wasn’t joined up with both tax cuts accompanied by proposals on public spending. But having said that, I think there’s also a yearning for leadership to steady the ship, so to give them the opportunity in the next couple of weeks to do the things that are necessary in order to get back on course.”

Rumoured plot to oust PM threatens democracy, says Nadine Dorries

09:37 , Lydia Chantler-Hicks

Nadine Dorries has lashed out at senior Tories reportedly exploring the possibility of replacing Prime Minister Liz Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, accusing them of trying to “overturn democracy”.

Alluding to an article on the alleged plot published by The Times on Friday, the former Cabinet minister tweeted: “Those absurdly called grandee MPs (men) agitating to remove Liz Truss are all Sunak supporters.

“They agitated to remove @borisjohnson and now they will continue plotting until they get their way.

“It’s a plot not to remove a PM but to overturn democracy. #BackLiz”

Ed Miliband: Tories should hang their head in shame

09:48 , Lydia Chantler-Hicks

Ed Miliband said the Conservative Party should be “hanging its head in shame” as Kwasi Kwarteng flies home early from International Monetary Fund meetings in the US.

“This is a Government in meltdown and an economic policy in tatters and frankly I think the Conservative Party should be hanging their head in shame at what it’s putting the country through. This is about people’s livelihoods, people’s homes, people’s mortgages,” he told Sky News.

“You have a Government that embarked on a strategy of saying: ‘Lets have massive tax cuts for the richest in society, for big corporations, so-called trickle-down economics’, which isn’t going to work, and also they’re trashing the economic institutions of this country, like the Office for Budget Responsibility,” added the former Labour leader.

“That is why the markets have reacted as they have, that’s why there’s been such a loss of confidence in the Government and the Government’s economic policy and that’s why the budget has got to be ripped up.”

Mr Miliband also said: “I think people will be furious that the Government are taking people for fools.

“It is not a global phenomenon, there’s no other finance minister who is rushing back on a aeroplane early from the IMF meetings, there’s no other countries where its central bank have had to have an emergency buying spree, there’s no other country where it’s economic policy is falling apart at the seams.

“This is a collective meltdown on the part of the government and the people of the British public deserve so much better than what this government re putting this country through.”

WATCH: Chair of the Treasury Select Committee Mel Stride calls for a ‘reset’ over the Government’s mini-budget

09:59 , Lydia Chantler-Hicks

Chancellor due to land in London

10:15 , Lydia Chantler-Hicks

The Chancellor’s flight from America is expected to land at Heathrow airport imminently.

The BBC reports that he is aboard a flight that is expected to land shortly before 11am.

Who is the Chancellor of the Exchequer?

10:48 , Lydia Chantler-Hicks

Chancellor Kwasi Kwarteng has hit a record low in the approval ratings for chancellors after his mini-budget mayhem, according to a new poll which revealed that 65 per cent of people in the UK are dissatisfied with him.

You can read more about Mr Kwarteng’s history and his role as Chancellor of the Exchequer here.

Chancellor touches down in UK

11:01 , Lydia Chantler-Hicks

The Chancellor is said to have landed at Heathrow, after catching a plane home from Washington DC a day earlier than planned so he can meet with Liz Truss to discuss the economy.

A British Airways passenger plane thought to be carrying Mr Kwarteng landed shortly before 11am.

PM to hold press conference

11:10 , Lydia Chantler-Hicks

Prime Minister Liz Truss will be holding a press conference later today, Downing Street has announced.

Pictured: Kwasi Kwarteng arrives in London

11:31 , Josh Salisbury

The Chancellor Kwasi Kwarteng has been pictured arriving in London after cutting short his trip to Washington to meet with leaders of the International Monerary Fund.

The Chancellor cut his trip short by a day to fly back to the UK, ahead of a press conference from the PM which is due to be held later today. According to reports, Mr Kwarteng is not expected to appear at that conference.

Mr Kwarteng was seen leaving Terminal 5 of the airport in a silver Land Rover Discovery through the Windsor Suite exit.

He is believed to have arrived on the 10.55am British Airways flight from Washington.

Liz Truss 'set to sack Chancellor’ - reports

11:41 , Josh Salisbury

Chancellor Kwasi Kwarteng will be sacked from his post only six weeks into the role, according to reports.

According to the Times’s political editor Steven Swinford, Liz Truss is preparing to sack Mr Kwarteng, despite his short stint in the role and the pair’s close political history.

This has not been confirmed by No 10.

Kwarteng among shortest-serving Chancellors in post-war history if sacked

11:54 , Josh Salisbury

If reports that Kwasi Kwarteng will be sacked by Prime Minister Liz Truss turn out to be true, this would make him one of the shortest-serving Chancellors in post-war history.

Iain Macleod, Chancellor under Edward Heath, holds the record of 30 days, after his death in office.

Mr Kwarteng would be the second-shortest serving Chancellor, at just 38 days, points out The Guardian’s Henry Dyer.

Speculation mounts over Kwarteng firing

12:03 , Josh Salisbury

Speculation is mounting that Kwasi Kwarteng is to be fired.

ITV’s Robert Peston reports that he too is being told Mr Kwarteng will be sacked by Prime Minister Liz Truss.

Reports have also begun emerging of possible other candidates to replace Mr Kwarteng should he be fired, which is not yet confirmed.

The Guardian’s Pippa Crerar, citing Treasury sources, suggests that Nadhim Zahawi, the former caretaker Chancellor, or Sajid Javid, also a former Chancellor could be in the frame to replace Mr Kwarteng.

However, TalkTV’s Tom Newton-Dunn said his sources were telling him that Jeremy Hunt, the former Health Secretary, would be Ms Truss’s favoured pick for a replacement.

Downing Street refused to comment on the reports.

Labour: Voters won’t forgive or forget ‘Tory-made crisis'

12:06 , Josh Salisbury

Labour’s Shadow Chancellor Rachel Reeves has reacted ahead of an expected budget announcement later today, saying a U-turn was necessary but that the damage had already been done.

“A humiliating u-turn is necessary - but the real damage has already been done to millions of ordinary people now paying much higher mortgages and struggling to make ends meet,” she said.

“This is a Tory crisis: made in Downing Street. They have plunged our economy into chaos and crisis with Truss' discredited trickle down approach. It won’t be forgiven or forgotten.

“Only a Labour government has the credibility, authority and plan to fix things.”

Kwasi Kwarteng arrives at No10 amid speculation over his future as Chancellor

12:15 , Josh Salisbury

Kwasi Kwarteng has arrived at No10, amid fierce speculation he will lose his job only 38 days into the role, according to Reuters.

Mr Kwarteng entered No. 10 Downing Street in London through a back entrance rather than through the well-recognised black front door.

Liz Truss is due to hold a news conference later on Friday.

Kwasi Kwarteng no longer Chancellor, BBC reports

12:30 , Josh Salisbury

Kwasi Kwarteng is out as Chancellor despite serving for only 38 days, the BBC has reported.

The broadcaster said it understands Mr Kwarteng is no longer Chancellor after talks with Liz Truss, following his late night return from Washington DC a day early.

It is not clear whether this is allegedly a resignation or a sacking.

Lib Dems: Call election now that 'Chancellor is being sacked’

12:41 , Josh Salisbury

Liberal Democrat leader Sir Ed Davey has called for a general election in response to reports that Kwasi Kwarteng is out as Chancellor.

He said: “This mustn't just be the end of Kwarteng's disastrous chancellorship, it should be the death knell of the Conservatives' reckless mismanagement of our economy. It didn't suddenly start with Kwarteng but it must end now.

“People are angry, fed up and worried about the future. Most of all they are furious that Conservative MPs seem to think this is an acceptable way to conduct the government of our country in these difficult times.

“Enough is enough. It started with Boris Johnson failing our country, and now Liz Truss has broken our economy, it is time for the people to have their say in a general election."

Sky News: Kwarteng was sacked as Chancellor

12:45 , Josh Salisbury

Sky News is now also reporting that Kwasi Kwarteng has been sacked as Chancellor, after reports from the BBC that Mr Kwarteng is no longer in post.

The broadcaster has reported that two sources have confirmed that Mr Kwarteng has lost his job.

Official confirmation has yet to come from Downing Street.

Sadiq Khan: I’ve never known a more incompetent Government

12:48 , Josh Salisbury

London mayor Sadiq Khan has said he has “never known a more incompetent Government and I've known a few... (or) one with such a bad start.”

He said he had an "oh my God" reaction when he learned that Kwasi Kwarteng had gone to the annual International Monetary Fund meeting in Washington.

Mr Kwarteng returned early from the US for crisis talks with the Prime Minister, and has now been removed as Chancellor, according to reports.

Mr Khan said the Government should U-turn on its so-called mini-budget and "sack the Cabinet", adding he hopes that there will soon be a General Election.

Mr Khan added: “The chicks have come home to roost. It's pretty clear the Tories worship the market but the market doesn't worship the Tories."

Group of Tory MPs ‘could call on Liz Truss to resign’ - BBC reporter

12:55 , Josh Salisbury

Pressure is growing on Liz Truss after the apparent sacking of her Chancellor, Kwasi Kwarteng.

According to the BBC Newsnight’s political editor Nicholas Watt, a group of senior Tories have been holding discussions and have decided that Mr Kwarteng’s sacking will lead them to call on Ms Truss to resign.

He said: “My source: “These are serious people. The PM will find it difficult to survive.”

It comes after a report in The Times newspaper on Friday, which suggested some MPs have been discussing a possible Rishi Sunak/Penny Mordaunt joint ticket to replace Ms Truss.

Jeremy Hunt ‘being lined up as new Chancellor’ - reports

13:04 , Josh Salisbury

Jeremy Hunt, the former long-serving Health Secretary and prominent Rishi Sunak backer, could be the next Chancellor, according to reports.

Steven Swinford, the Times’s political editor, is reporting that Mr Hunt is being lined up to take over from Kwasi Kwarteng.

“Multiple sources are now telling me that Jeremy Hunt will be the new chancellor, although I’ve not had official confirmation yet,” he said.

“It’s being complicated by the fact he’s out of the country. Hunt was one of Sunak’s most prominent backers”.

TalkTV’s Tom Newton-Dunn had also previously reported from his sources that he believed Mr Hunt was the most likely to take over the post.

Downing Street still has not officially confirmed Kwasi Kwarteng has left his post as Chancellor, nor has it commented offically on any replacements.

IN FULL: Kwarteng confirms he was sacked as Chancellor

13:10 , Josh Salisbury

Kwasi Kwarteng has confirmed he was asked to stand down as Chancellor.

In a letter addressed to Prime Minister Liz Truss, he said: “You have asked me to stand aside as your Chancellor. I have accepted

“When you asked me to serve as your Chancellor, I did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices. However, your vision of optimism, growth and change was right.

“As I have said many times in the past weeks, following the status quo was simply not an option. For too long this country has been dogged by low growth rates and high taxation-that must still change if this country is to succeed.

“The economic environment has changed rapidly since we set out the Growth Plan on 23 September.

“In response, together with the Bank of England and excellent officials at the Treasury we have responded to those events, and commend my officials for their dedication:

“It is important now as we move forward to emphasise your government’s commitment to fiscal discipline.

“The Medium-Term Fiscal Plan is crucial to this end, and I look forward to supporting you and my successor to achieve that from the backbenches. We have been colleagues and friends for many years. In that time, I have seen your dedication and determination. believe your vision is the right one. It has been an honour to serve as your first Chancellor.

“Your success is this country’s success and I wish you well.”

Video: Kwarteng waves as he leaves Downing Street after sacking

13:19 , Josh Salisbury

Kwasi Kwarteng has left Downing Street after effectively being sacked as Chancellor by Liz Truss.

He waved to reporters as he left via the front entrance of Number 11 before getting in a car.

Pictured: Kwarteng leaving Downing Street after sacking

13:24 , Josh Salisbury

Kwasi Kwarteng has been pictured leaving Downing Street after his sacking.

Labour: Firing Chancellor doesn't ‘undo damage already done’

13:29 , Josh Salisbury

Responding to Liz Truss firing Kwasi Kwarteng, Labour’s Shadow Chancellor Rachel Reeves has said it doesn’t undo the damage already done.

“Changing the Chancellor doesn't undo the damage that's already been done,” she said.

“It was a crisis made in Downing Street. Liz Truss and the Conservatives crashed the economy, causing mortgages to skyrocket, and has undermined Britain’s standing on the world stage.”

Liz Truss to hold press conference at 2.30pm

13:32 , Josh Salisbury

Liz Truss will hold a press conference in just over an hour’s time.

The Prime Minister's press conference will be held at 2.30pm in the Downing Street briefing room, No 10 has said.

The conference comes after Ms Truss sacked her Chancellor, Kwasi Kwarteng, making him among the shortest-serving Chancellors in modern British political history.

Mr Kwarteng served in the role for just 38 days.

Chief Secretary to Treasury also loses job - reports

13:39 , Josh Salisbury

Another sacking has also reportedly occured in the Treasury, according to multiple reports.

Chris Philp is out as Chief Secretary to the Treasury and will be replaced by Ed Argar, according to the Times’s Steven Swinford.

Business Insider also reported Mr Philp has left his post.

This has not yet been confirmed by No10.

Liz Truss tells Kwarteng: ‘I’m deeply sorry to lose you from Government'

13:43 , Josh Salisbury

Prime Minister Liz Truss has released a letter to Kwasi Kwarteng, describing him as a friend and saying she is “sorry” to see him leave Government.

In the letter, Ms Truss said: “As a long-standing friend and colleague, I am deeply sorry to lose you from the Government.

“We share the same vision for our country and the same firm conviction to go for growth. You have been Chancellor in extraordinarily challenging times in the face of severe global headwinds.”

IN FULL: Liz Truss’s letter to Kwasi Kwarteng

13:47 , Josh Salisbury

Below is the text of the letter from Liz Truss to her former Chancellor, Kwasi Kwarteng, who she sacked after just 38 days.

“As a long-standing friend and colleague, I am deeply sorry to lose you from the Government.

“We share the same vision for our country and the same firm conviction to go for growth. You have been Chancellor in extraordinarily challenging times in the face of severe global headwinds.

“The Energy Price Guarantee and the Energy Bill Relief scheme, which made up the largest part of the mini budget, will stand as one of the most significant fiscal interventions in modern times.

“Thanks to your intervention, families will be able to heat their homes this winter and thousands of jobs and livelihoods will be saved.

“You have cut taxes for working people by legislating this week to scrap the increase in National Insurance Contributions.

“You have set in train an ambitious set of supply side reforms that this Government will proudly take forward. These include new investment zones to unleash the potential of parts of our country that have been held back for too long and the removal of EU regulations to help British businesses succeed in the global economy.

“I deeply respect the decision you have taken today. You have put the national interest first.

“I know that you will continue to support the mission that we share to deliver a low tax, high wage, high growth economy that can transform the prosperity of our country for generations to come.

“Thank you for your service to this country and your huge friendship and support. I have no doubt you will continue to make a major contribution to public life in the years ahead.”

Jeremy Hunt confirmed as new Chancellor

13:57 , Josh Salisbury

Jeremy Hunt has been confirmed as the new Chancellor.

Chris Philp removed from Treasury ahead of PM press conference

14:11 , Josh Salisbury

Chris Philp has been appointed Paymaster General, swapping jobs with Edward Argar who becomes Chief Secretary to the Treasury, Downing Street has confirmed.

The moves come alongside Ms Truss appointing Jeremy Hunt as the new Chancellor - the fourth person to hold the post in just a year.

The Prime Minister is set to hold a press conference at Downing Street in the next 20 minutes, at 2.30pm.

Extinction Rebellion protest outside Downing Street cheers Kwarteng sacking

14:20 , Josh Salisbury

An Extinction Rebellion protest being held on Whitehall outside Downing Street cheered when news of Kwasi Kwarteng’s sacking was announced.

Members of the group are holding colourful signs including one with the wording “employee of the month” above a Shell logo and a picture of Prime Minister Liz Truss.

Another sign read: “Polluters must pay, listen to the people” with “People and planet before profit” on a third.

Truss due to begin statement after Kwarteng sacking

14:34 , Josh Salisbury

Prime Minister Liz Truss is due to begin her much-awaited press conference after dramatically sacking Kwasi Kwarteng as Chancellor and appointing Jeremy Hunt in his place.

The statement is due to begin at 2.30pm, and appears to be running slightly late.

Truss: Mission remains of ‘low tax, high wage economy'

14:35 , Josh Salisbury

Liz Truss has begun her speech saying her “conviction” that Britain needs to “go for growth” is rooted in her background.

“That’s why from day one I have been ambitious for growth,” she says. She says she wants to deliver a low tax, high wage economy - “and that mission remains”.

Truss will keep corporation tax increase in significant budget U-turn

14:39 , Josh Salisbury

Liz Truss has performed a dramatic u-turn on corporation tax, saying it is “clear” the mini budget went further and faster than markets were expecting.

The move will mean corporation tax will increase as planned under the last Government, and a direct U-turn on Ms Truss’s leadership pledge.

She says she is sorry to see Mr Kwarteng leave Government, but that Mr Hunt will “drive our mission to go for growth”.

She said: “I want to be honest - this is difficult. But we will get through this storm. We will deliver strong and sustained growth that can transform the prosperity of our country for generations to come.”

Truss says she is ‘determined’ to deliver despite questions over her future

14:41 , Josh Salisbury

Asked why she should remain PM, Ms Truss says she is “determined” to see through what she has promised in a higher growth economy.

She says: “It is right in the face of the issues that we had that I acted decisively to ensure we had economic stability because that is vitally important to people and businesses right across the country.”

Truss: I acted in national interest to guarantee economic stability

14:43 , Josh Salisbury

In response to another question about why she should stay as PM, Ms Truss says “the mission remains the same” in going for growth.

She says: “Ultimately, we need to make sure we have economic stability and I had to act in the national interest as prime minister.”

Asked again why she should continue governing, she says she has acted to guarentee economic stability.

Truss declines to say whether she will apologise to party over economic turmoil

14:47 , Josh Salisbury

Liz Truss is asked by ITV’s Robert Peston on comments made by former Tory Chancellor, Philip Hammond, who is reported to have said Ms Truss has trashed the Tories’ reputation for economic competence.

Asked if she will apologise to her party, she said: “We have to recognise we’re facing very difficult issues as a country. It is right, in the national interest, that I made the decisions I’ve made today to restore that economic stability so we can deliver.”

Truss ends press conference after corporation tax U-turn

14:52 , Josh Salisbury

Liz Truss has ended her press conference, only taking several questions from media, many of which centred around her future as prime minister.

Ms Truss walked away from the lectern despite cries from journalists that she had not taken a question from Sky News.

The major announcement is that corporation tax will increase in April from 19% to 25%, a u-turn on a mini budget pledge not to increase the tax.

This returns the Government position on corporation tax to what it was under her leadership rival Rishi Sunak, when he was Chancellor.

She said: “It is clear that parts of our mini-budget went further and faster than markets were expecting. So the way we are delivering our mission right now has to change.

"We need to act now to reassure the markets of our fiscal discipline. I have therefore decided to keep the increase in corporation tax that was planned by the previous government.

“This will raise £18 billion per year. It will act as a down payment on our full medium-term fiscal plan which will be accompanied by a forecast from the independent OBR.

“We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium term."

Pound drops after Truss speech

15:00 , Josh Salisbury

The pound has dropped lower after Prime Minister Liz Truss confirmed that the Government will reverse her policy to scrap the planned rise in corporation tax from 19% to 25%.

Sterling had recovered some of its early losses shortly before the Prime Minister’s speech but then dropped back, indicating that traders believe there is still more action to be taken.

The pound moved 1.2% lower at 1.119 against the US dollar after the update.

Meanwhile, yields on gilts - UK government bonds, which have come under severe pressure in recent weeks - also tipped higher to 4.5%, almost returning to levels from the market opening on Friday.

Scotland’s Sturgeon calls on Truss to resign

15:05 , Josh Salisbury

Scotland’s First Minister Nicola Sturgeon has called for Liz Truss to resign as Prime Minister to restore “economic stability” to the UK.

“The best thing Liz Truss could do for economic stability now is resign,” Ms Sturgeon tweeted.

“Her decisions have crashed the economy and heaped misery on people already struggling with a cost of living crisis.

“The only decent thing for Tory MPs to do now is call time on her (Government) and allow an election.”

Labour: Government is in meltdown

15:09 , Josh Salisbury

Labour have said the Government is in “meltdown”.

Shadow work and pensions secretary, Jonathan Ashworth, told the BBC: “Liz Truss has sacked her Chancellor for carrying out the policies of Liz Truss, a set of policies that led to turmoil on the markets, which led to a run on pension funds and soaring mortgage rates for homeowners across the country.”

He added: “What is clear now is that we have a Government in meltdown.

“This is clearly a disastrous set of decisions from a disastrous budget and actually what we need is not just a change of chancellor, we need a change of government.”

Pictured: Jeremy Hunt arrives in London after being appointed Chancellor

15:16 , Josh Salisbury

Jeremy Hunt has arrived at his house in Pimlico just an hour after he was announced as Chancellor.

Mr Hunt arrived in a black cab with his wife Lucia at 2.50pm.

When asked what he hoped to achieve as Chancellor, he said: “We’ll have lots of chances to talk later.”

Mr Hunt then did not reply when asked: “Do you think Liz Truss has any credibility?”

When a photographer congratulated him, he replied: “Thank you.”

Rachel Reeves: Damage has already been done by mini budget

15:30 , Josh Salisbury

Labour’s shadow chancellor Rachel Reeves has said so much damage has been done by the Conservatives’ mini-budget And Jeremy Hunt becoming Chancellor will not help.

“The partial U-turn today does not reverse the whole budget, which is what is needed,” she said.

“The Government need to go back to the drawing board, not just picking out individual measures - we need a budget that adds up, with an independent forecast from the Office of Budget Responsibility.

“But the truth is, the trickle-down tired economics of the Conservatives no longer works, and it is time for a Labour government that prioritises ordinary working people, not this belief that somehow tax cuts for the richest will somehow filter down to everybody else.”

Senior backbencher questions why Truss sacked Kwarteng as Chancellor

15:40 , Josh Salisbury

Senior Tory backbencher Sir Roger Gale has questioned why Liz Truss dismissed Kwasi Kwarteng for implementing her economic policies.

The North Thanet MP tweeted: “Hard to understand why the Prime Minister has sacked her Chancellor - a good man - for promoting the policies upon which she was elected.

“Good, though, that in Jeremy Hunt there will be an experienced pair of hands on the financial tiller.”

Senior Tory MP appeals for calm and urges no talk of removing Liz Truss

15:52 , Josh Salisbury

Senior Tory Sir Bernard Jenkin has urged his colleagues to stop “rash talk of ditching” Liz Truss as he called for “calm”.

He tweeted: “The appointment of Jeremy-Hunt as Chancellor is a wise choice. He is trusted and respected across Parliament.

“We must now be calm. Rash talk of ditching the PM, or calls for a general election, will not calm the financial markets.”

New Chancellor Jeremy Hunt leaves home

16:07 , Miriam Burrell

Jeremy Hunt has left his house in Pimlico, central London and has been driven away in a car.

Wearing a navy suit with a white shirt, the new Chancellor walked out of his house at 3.50pm on Friday and entered a silver Land Rover.

He refused to answer any questions.

Sturgeon: Truss is ‘lame duck prime minister’

16:11 , Miriam Burrell

Liz Truss “forced” outgoing chancellor Kwasi Kwarteng to “carry the can for her decisions” and is now a “lame duck prime minister”, Scotland’s First Minister Nicola Sturgeon said as she called for a general election.

Ms Sturgeon told BBC News: “I think the only decent thing that Tory backbenchers can do now is call time on Liz Truss and this entire UK Government, and allow people across the UK to have a general election.

“Liz Truss has already through her own decisions crashed the economy and heaped misery on people who were already struggling with the cost-of-living crisis.

“The sooner she goes and the sooner people get the chance to get rid of this Tory Government that is doing so much damage, once and for all, the better.”

Jeremy Hunt arrives at No10

16:13 , Miriam Burrell

The new Chancellor has arrived at No10 Downing St, but did not answer any questions.

A recap: PM’s speech

16:20 , Miriam Burrell

In case you missed it, here are the main quotes from Prime Minister Liz Truss’s speech on Friday afternoon:

“It is clear that parts of our mini budget went further and faster than markets were expecting.

“So the way we are delivering our mission right now has to change. We need to act now to reassure the markets of our fiscal discipline.

“I have therefore decided to keep the increase in corporation tax that was planned by the previous government.This will raise £18 billion per year.

“It will act as a down-payment on our full Medium Term Fiscal Plan which will be accompanied by a forecast from the independent OBR.”

Pictured: Chancellor Jeremy Hunt arrives at Downing St

16:23 , Miriam Burrell

What is Jeremy Hunt’s economic record?

16:33 , Miriam Burrell

Former foreign secretary and Conservative leadership contender Jeremy Hunt has been named the new Chancellor.

His first task will be to reassure the markets following a month of volatility in reaction to his predecessor Kwasi Kwarteng’s mini-Budget.

The Standard looked at what he could do in Government.

LibDems call for Parliament to sit on Saturday

16:43 , Miriam Burrell

The Liberal Democrats have called for Parliament to sit on Saturday.

The party wants new Chancellor Jeremy Hunt to deliver a statement in the Commons, in order to calm the markets.

Liberal Democrat Treasury spokesperson Sarah Olney said: “This Government has overseen a slow-motion car crash as Britain’s economy barrels towards disaster. For weeks ministers have sat on their hands as their mini-budget unfolded.

“Parliament must sit tomorrow so we can hear from this new Chancellor.”

Govt’s growth agenda in tatters, ex-chancellor says

16:49 , Miriam Burrell

Lord Hammond said Liz Truss will have to return to a “more conventional economic policy”.

He said the Government’s growth agenda is “in tatters” and that the usual arguments used against Labour on economics would look “extremely limp” given the turmoil of recent weeks since the mini-budget was announced.

He told BBC Radio Four: “They (the Government) haven’t fully resolved the economic question, and I do not think they can resolve the political damage that has been caused.”

LibDems leader ‘has doubts’ about Jeremy Hunt

17:03 , Miriam Burrell

Sir Ed Davey said he believed people have “lost trust” with the Conservatives and he has “some doubts” about the new Chancellor Jeremy Hunt.

He told Sky News: “Partly because of his record as SOS (secretary of state) for health. Many of his policies and approaches have led to the problems we’ve seen in health services, and now care services, so it’s so important we get our health service right. He’s got a pretty poor record.

“He fought the leadership twice in 2019 and 2022, his flagship policies were cuts in corporation tax even deeper than Liz Truss and Kwasi Kwarteng. So I’m not convinced he’s got the right approach on the economy.”

Jeremy Hunt leaves Downing Street

17:14 , Josh Salisbury

Chancellor Jeremy Hunt has left Downing Street via the front door after meeting with Prime Minister Liz Truss.

The newly appointed Chancellor remained deadpan and silent as reporters called out questions.

He walked straight across the road through the gates towards the Foreign Office as Extinction Rebellion protesters continued to block the main Downing Street gates.

Fiscal plan will still be delivered on October 31 - Treasury

17:21 , Josh Salisbury

The Treasury confirmed that the Government’s fiscal plan will still be delivered on October 3, despite there being a new Chancellor.

“Chancellor of the Exchequer Jeremy Hunt will set out the government’s Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility,” according to a statement issued by the Treasury after a day of turmoil in Liz Truss’s Government.

Mr Hunt replaced Kwasi Kwarteng, after the Prime Minister was forced to backtrack again on her mini-budget to reassure the markets.

Truss loyalist ‘disappointed’ over tax U-turn

17:39 , Josh Salisbury

Tory MP and Truss loyalist Chris Loder said he was “disappointed" at the Prime Minister's U-turn on corporation tax.

Speaking to BBC Radio 4's PM programme, he said he was still a supporter of Liz Truss but admitted it had been a "difficult few days".

He said: "We'll see now, won't we, over the coming days as to what that looks like.

"I do hope that the Prime Minister can continue. But I get the feeling from the parliamentary party and a number of her supporters that is actually quite difficult at the moment."

Liz Truss working from Chequers residence this weekend

18:20 , Josh Salisbury

Liz Truss will be working from her Chequers residence this weekend.

It comes after a disastrous day for the Prime Minister, who sacked her chancellor and U-turned on corporation tax in a bid to reassure the markets.

7/10 Brits say Truss cannot regain confidence of the public - snap poll

18:31 , Josh Salisbury

Seven in ten Brits believe it is not possible for Liz Truss to regain the confidence of the public, according to a snap poll conducted today.

Only 16% of those asked by pollsters Savanta ComRes said Ms Truss could regain the trust of the public.

Half of respondents said Ms Truss was right to sack Kwasi Kwarteng today, while 22% said she was wrong.

60% blamed Ms Truss and Mr Kwarteng equally for the UK’s economic situation, while 24% said Ms Truss was more to blame.

6% of the 1,088 adults polled said they believed Mr Kwarteng was more to blame, while 10% said they didn’t know.

Former Tory leader says Truss ‘hanging on by a thread’

18:49 , Josh Salisbury

Conservative grandee Lord William Hague has said the leadership of Liz Truss “hangs by a thread”.

The former party leader told Times Radio: “It’s been a catastrophic episode. And I think it hangs by a thread is the honest answer to your question of her position, because yes these were her policies too.

“And plenty of warning was given by many of us about what would happen if we had unfunded tax cuts and whether it would be financially and politically sustainable.”

Former leadership contender appears to back Truss

18:56 , Josh Salisbury

Among the MPs who appear to be rowing in behind Prime Minister Liz Truss is Tom Tugendhat, a former leadership contender.

The Security Minister tweeted a picture of Ms Truss, alongside the message: “We will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come.”

Tory MP says party is ‘bunch of hyenas'

19:32 , Miriam Burrell

Tory MP Sir Christopher Chope referred to his party colleagues as a “bunch of hyenas” over speculation they are trying to remove Liz Truss as Prime Minister.

He told BBC News: “If that’s the way my colleagues behave then I can’t stop them, but I think they’re like a bunch of hyenas, frankly.

“I think it’s going to be suicide for the Conservative Party if we force out another prime minister who is trying to do her best in very difficult circumstances.”

Sir Christopher added: “We can’t possibly force another prime minister out of office, we’ve just got to calm down and try to give the Prime Minister our support.”

‘Desperate to get this statement on Oct 31'

19:37 , Miriam Burrell

Paul Johnson, director of the Institute for Fiscal Studies, suggested that “piecemeal” announcements will not be enough to reassure markets and economists about the Prime Minister’s economic plan.

Mr Johnson told BBC Radio 4: “We still have got no statement of economic policy, of fiscal policy, or any sense of how we’re going to get to fiscal sustainability.

“And I think the issue is that credibility has been lost and these piecemeal announcements, piecemeal announcements of sacking a chancellor or changing one tax here or there, aren’t going to cut it.

“We are desperate to get to this statement on October 31, when hopefully we’ll see the forecasts, and we’ll actually get a statement from a chancellor saying this is how I’m going to deal with it.”

‘It has been a difficult day'

19:55 , Miriam Burrell

International Trade Secretary Kemi Badenoch said that Liz Truss has her “full support” but admitted it had been a very “difficult day”.

The former leadership contender tweeted: “To say it’s been a difficult day would be an understatement.

“We knew the scale of the challenge this autumn given multiple global headwinds would be unprecedented.”

Cabinet minister: Don’t throw Truss ‘to the wolves’

20:59 , Miriam Burrell

A Cabinet minister has defended the Prime Minister, warning his party not to throw another leader “to the wolves”.

Appearing on BBC Radio 4’s Any Questions programme in Gloucester, Welsh Secretary Sir Robert Buckland defended Liz Truss and denied that her position is “untenable”.

“This has been a very difficult political week, I’m not going to shy away from that, but do I think that means her position is untenable? No, I do not.”

Sir Robert was openly laughed at by the audience, as he told the programme: “I am not going to deny it is a difficult situation, I am not going to deny it at all.”

A recap: What happened today?

21:16 , Miriam Burrell

Liz Truss’s premiership is “hanging by a thread”, former Tory leader William Hague has said, after the Prime Minister U-turned on major parts of the disastrous mini-budget and sacked her Chancellor.

Ms Truss said she was “determined” to stay on in her role despite her credibility to lead the country being called into question.

During a press conference she confirmed corporation tax will rise next year, despite plans to keep it at current levels being a flagship policy of her leadership campaign.

Read more here.

Who are the MPs involved in Treasury switch?

21:34 , Miriam Burrell

Ms Truss appointed Edward Argar as Treasury chief secretary to replace Chris Philp on Friday, as well as sacking Kwasi Kwarteng as Chancellor.

The chief secretary is the Treasury’s second most important job and includes management of public spending.

Here’s what we know about Edward Argar and Chris Philip.

Truss, Hunt ‘committed to strong and sustained growth'

21:49 , Miriam Burrell

Liz Truss and new Chancellor Jeremy Hunt are “committed to delivering the strong and sustained growth Britain needs”, the Twitter account for the Prime Minister said.

The pair met at No 10 Downing St on Friday afternoon after Ms Truss sacked Kwasi Kwarteng and delivered a shockingly short press conference.

Live coverage ends

22:24 , Miriam Burrell

That’s all for our live coverage today.

Please check back in tomorrow.