London politics latest LIVE: Kwasi Kwarteng: I am ‘absolutely 100 per cent not going anywhere’

The Chancellor has vowed he is “absolutely 100 per cent not going anywhere” as the Government came under pressure to U-turn over key parts of the mini-budget.

Kwasi Kwarteng, who is in Washington to meet with the International Monetary Fund, said his “total focus is on delivering on the mini-budget”.

However he refused to confirm whether the Government would plough ahead with all of the policies.

On speculation that the Government will reverse a plan not to raise corporation tax, he said: “My total focus is on delivering on the mini-budget and making sure that we get growth back into our economy.

“That’s the central prize, that’s the main focus of my job.”

Leading economists, senior Tory MPs and members of the opposition have called on the Prime Minister to reconsider tax cuts announced in last month’s mini-budget.

It comes after Ms Truss endured a bruising appearance with the backbench 1922 Committee on Wednesday evening, with Commons Education Committee chairman Robert Halfon telling her she had “trashed the last 10 years of workers’ Conservatism”.

With Ms Truss’s leadership already being questioned after little more than a month in the job, Foreign Secretary James Cleverly said on Thursday a change at the top of the party would be a “disastrously bad idea”.

Truss under growing pressure to perform more budget U-turns

13:55 , Josh Salisbury

Liz Truss is under growing pressure to scrap more of the mini-budget to quell market turmoil or risk a major revolt by Tory MPs.

Senior Conservative MPs said that Kwasi Kwarteng’s new fiscal statement in just 18 days’ time was now absolutely crucial.

The Chancellor is facing calls to take a scalpel to his mini-budget of September 23 to end the economic mayhem it had sparked.

However, despite the febrile atmosphere at Westminster, Cabinet minister James Cleverly repeatedly refused to rule out another U-turn, this time over Mr Kwarteng’s decision to ditch the previously planned increase in corporation tax from 19p to 25p next April.

He also told rebel MPs not to seek to topple Ms Truss, a warning believed to be unprecedented given the Prime Minister has only been in No10 for 38 days.

The Bank of England’s emergency intervention, to ensure financial stability in Britain by stopping the rout in the gilts markets, ends on Friday.

For more, read our story here.

Panic over Truss budget ‘sparked by move away from compassionate conservatism’ - backbencher

13:58 , Josh Salisbury

Liz Truss’s Government has displayed a lack of “compassionate conservatism” which has led to a feeling of “caution and concern” among Tory MPs, backbencher John Baron has said.

He told BBC Radio 4’s World at One programme: “The mood, generally, is one of caution and concern.

“For me, it’s about the lack of compassionate conservatism, the breaking of the link between benefits and inflation during the cost-of-living crisis is wrong.

“But the optics are also wrong when we’ve also been proposing a cut in the 45p rate of tax.

“So, that together with a lack of reassurance to the markets when it came to the mini-budget, about the borrowing and the spending requirements and cuts too, you know, has all added to the general air of concern.

“Now we have time to put this right, but no time to waste.”

Labour: Government ‘in chaos and must reverse budget'

14:01 , Josh Salisbury

In response to speculation about possible U-turns on the mini-budget, shadow chancellor Rachel Reeves said: “Today's mess shows the utter chaos this Government is in. This is a crisis made in Downing Street and working people are paying the price.

“Labour has said repeatedly that they need to reverse the kamikaze budget and restore confidence.

“This is now urgent as the Bank of England's intervention in the markets ends tomorrow. The Tories cannot allow the chaos caused by their mini-budget to continue any longer.”

Truss as unpopular as John Major after Black Wednesday - leading pollster

14:07 , Josh Salisbury

Liz Truss is as unpopular as Tory former prime minister John Major was after Black Wednesdaym according to leading pollster, Sir John Curtice.

The 1992 event saw Britain crash out of the European Exchange Rate Mechanism (ERM), and damaged the Conservatives’ economic credibility.

Sir John told BBC Radio 4's World at One programme: “Liz Truss is now deeply unpopular. She is more unpopular than Boris Johnson was at the worst period of his premiership, which was in the middle of January this year when the partygate scandal was at its height.

“She finds herself at pretty much the same level of popularity as did John Major about a few weeks after Black Wednesday in September 1992, which of course is the last time that a Conservative administration got into trouble with the markets."

He added: "She's got two problems. One is she isn't really liked. Her personality is not one that warms to the general public. And, secondly, now she is regarded as incompetent."

IMF boss hints of need to ‘recalibrate’ economic policies after markets turmoil

14:26 , Josh Salisbury

The managing director of the International Monetary Fund (IMF) has said it is sometimes right for a “recalibration" of policies as she was questioned over reports of a UK Government U-turn after the mini-budget market chaos.

Chancellor Kwasi Kwarteng met with IMF leaders in Washington DC on Thursday in a bid to sell his economic package and to reassure the markets.

Speaking at a press conference in Washington, Kristalina Georgieva said: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy."

She said that “if it does, the task of monetary policy becomes only harder", as it can increase "rate-tightening conditions".

“Don't prolong the pain - make sure actions are coherent and consistent," she said.

“It is correct to be led by the evidence, so if the evidence is that there has to be a recalibration, it's right for governments to do so."

Kwarteng: ‘Our position hasn’t changed over mini budget'

14:45 , Josh Salisbury

Chancellor Kwasi Kwarteng has appeared to rule out a U-turn on his mini budget in a broadcast interview - but stopped short of confirming it.

Asked about possibility of U-turn, Mr Kwarteng said: “Our position hasn't changed.

“I will come up with the medium term fiscal plan on the 31st of October as I said earlier in the week, there'll be more detail that”.

Kwarteng: ‘Total focus’ on delivering budget

14:48 , Josh Salisbury

Being questioned over the possibility of a rethink on cutting corporation tax, Chancellor Kwasi Kwarteng has said: "My total focus... is on delivering on the mini-budget and making sure that we get growth back into our economy.

“That's the central prize, that's the main focus of my job."

Kwarteng vows he and PM ‘are not going anywhere'

14:54 , Josh Salisbury

Asked in a pool clip for broadcasters if he and the Prime Minister would still be in office in a month, the Chancellor has defiantly said: “Absolutely 100%. I am not going anywhere.”

Asked if he would have to quit if there were further U-turns on the mini-budget, Chancellor Kwasi Kwarteng said: "I am totally focused on the growth agenda.

"I am totally focused on making sure that people are helped with their energy bills, that the energy price guarantee is understood, that the scale of our intervention... is understood and that we can actually deliver this country a path, get us on a trajectory, to growing the economy so everyone benefits."

Speaking from Washington, Mr Kwarteng was asked about discussions in London about possible budget U-turns, he said: “I speak to No 10, I speak to the Prime Minister all the time.

"We are totally focused on delivering the growth plan. What we were facing was a tax high of 70 years and no growth."

Mr Kwarteng was in Washington for talks with IMF leaders, which he said had illustrated that “growth is a central focus of the international community" and the Government was “quite right to focus on growth".

“People are talking about some of the ideas that we have put forward," Mr Kwarteng said.

George Osborne heaps pressure on Truss by questioning ‘wait’ for ‘inevitable’ budget U-turn

14:58 , Josh Salisbury

Further pressure on Liz Truss and Chancellor Kwasi Kwarteng to perform a U-turn has come from George Osborne, the former Tory Chancellor under David Cameron.

Mr Osborne said: “Given the pain being caused to the real economy by the financial turbulence, it's not clear why it is in anyone's interests to wait 18 more days before the inevitable u-turn on the mini budget.”

Mr Osborne infamously found himself at the centre of what critics dubbed the ‘omnishambles’ budget in 2012, several measures of which were reversed amid an outcry.

Former Labour Shadow Chancellor Ed Balls, who faced off against Mr Osborne across the despatch box, added: “I agree with George...”

Kwarteng admits ‘turbulence’ after mini budget

15:12 , Josh Salisbury

Chancellor Kwasi Kwarteng has acknowledged the UK suffered some "turbulence" following his mini-budget but said the economy was facing the same problems as other countries around the world.

"What I am going to acknowledge is the fact that it is a very dicey situation globally," he said in a pooled clip for broadcasters in Washington.

Pressed on the situation in the UK, he said: "There was turbulence.

“Everybody is focused on inflation, everybody is affected by potential interest rate rises, everybody is affected by the energy price spike which has been exacerbated by Putin's illegal war in Ukraine.

“Everybody across the global financial community is focusing on the same problem.”

Lib Dems: Kwarteng should ‘resign or be sacked'

15:58 , Josh Salisbury

Sir Ed Davey, the leader of the Liberal Democrats, has said Kwasi Kwarteng must "resign or be sacked", amid reports the government could perform another major U-turn over its mini-budget.

He said a U-turn now “would come too late for many struggling families facing mortgage misery".

He added: "The only way to restore credibility is for Kwasi Kwarteng to resign or be sacked.

”This chancellor has done enough damage and needs to go.

“His botched budget then needs to be scrapped altogether and replaced with a fair and responsible plan, including emergency support for mortgage borrowers bearing the brunt of this Conservative chaos."

Sir Ed also warned that voters “will never forgive the Conservatives for this disastrous experiment, playing fairytale economics with people’s lives".

Backbenchers should unite behind Truss, says Badenoch

16:05 , Josh Salisbury

Tory backbenchers threatening to revolt should unite behind the Prime Minister, Kemi Badenoch has said.

International Trade Secretary Ms Badenoch, who was a former leadership contender, urged her party to "get behind" the Prime Minister's growth plans.

Her comments followed a visit to the Glenkinchie Distillery in East Lothian on Thursday.

She told the PA news agency: "I think that at the moment, given what is happening globally - there is a war in Ukraine, there's an inflation crisis.

“We've been talking about the cost of living for several months, what we need to focus on is getting behind the Prime Minister and her growth plans so that she can improve the economy for the country."

Downing Street insists position on budget has not changed

16:09 , Josh Salisbury

Downing Street has refused to comment on reports that discussions are ongoing at No 10 on reversing aspects of the mini-budget, saying repeatedly: "Our position has not changed."

Asked whether an imminent change is possible, a No 10 spokesperson told reporters: “Again, I just have to repeat that our position hasn't changed and the Chancellor was very clear that he and the PM are working to deliver the growth plan."

Challenged on whether talks are being held on possible U-turns, the official said: "Again, work is ongoing between the Chancellor and the Prime Minister, as you'd expect, ahead of the medium-term fiscal plan.

“The focus of both the Chancellor and the PM are on delivering the growth plan and the position has not changed.”

No 10 refuses to comment on reports over corporation tax u-turn

16:10 , Josh Salisbury

Asked whether there had been discussion in No 10 about dropping the corporation tax cut, a No 10 spokeswoman said: “I wouldn't comment on meetings the Prime Minister has."

But she added: "More broadly... the PM is focused on the delivery of the growth plan.

“As you would expect, she meets regularly on this and ahead of the medium-term fiscal plan. But I would not get into those reports."

No 10 says ‘position hasn’t changed’ when asked over tax changes

16:12 , Josh Salisbury

Asked if Liz Truss stands by her comments that it would be wrong to raise taxes on British businesses in the face of a recession, a No 10 spokesperson said: “You heard from the Prime Minister yesterday about her plan for growth and her and the Chancellor's approach.

“They are both focused on delivering on the growth plan, making sure that we get growth back into our economy... and ensuring that more people keep more of the money that they earn.

“More broadly, on the growth plan and questions on this, our position hasn't changed."

Senior backbencher issues veiled criticism of Liz Truss

16:33 , Josh Salisbury

Former cabinet minister Julian Smith has issued a veiled criticism of Liz Truss by tweeting the definition of "confidence", in a further sign of open Tory revolt against her Government's handling of the economy.

The senior Conservative MP wrote that the definition is "the feeling or belief that one can have faith in or rely on someone or something".

Labour accuse Tories of ‘acting like pyromaniacs’ on the economy

16:58 , Barney Davis

Shadow chancellor Rachel Reeves said that while there were “global factors at play” in the economic crisis it was vital that “in that environment, don’t fan the flames”.

“The Government are behaving like pyromaniacs, setting ablaze the UK economy,” she told the PA news agency.

“It is ordinary working people who are paying the price for that.”

Asked if Kwasi Kwarteng was on borrowed time, she said: “The Prime Minister and Chancellor introduced this package of measures together.

“The Prime Minister has been in office for just one month and has already caused so much damage.

“The public are sick and tired of it, they want the Government to think again and to U-turn, and if the Government aren’t capable of providing the leadership the country needs, Labour absolutely is.”

Priti Patel latest MP to hint at U-turn over mini-budget

17:23 , Barney Davis

Former home secretary Priti Patel has become the latest high-profile Tory MP to suggest the Government could be forced into a further U-turn over the mini-budget.

In an interview with Sky News, due to be aired in full later, Ms Patel was asked if Liz Truss’s commitment not to raise corporation tax should be reversed to calm the markets.

“There is an irony to this,” Ms Patel said. “In that market forces will probably dictate some of these changes now.

“The market is going to dictate this, primarily because we want to see stability. Stability is absolutely crucial, for everyone to carry on living their lives, for the institutions to function, but actually for the British people to have the stability that they need in their lives as well.

“And by that, as well, I mean mortgages, interest rates and all those crucial, crucial levers.”

PM’s favourite economist: Don’t u-turn over budget

17:51 , Josh Salisbury

The Prime Minister's economics guru Professor Patrick Minford said it would be "insane" to rip up the mini-budget.

He told BBC Radio 4's PM programme: “It's really important we don't do something really stupid at this point.

“Liz Truss's policies for growth are absolutely right and to be thrown off them by a bit of market turbulence is insane."

He argued against U-turns, saying the Bank of England “needs to be much more active in its policies of intervention in the gilts market".

Asked if he had predicted the market turmoil triggered by the mini-budget, the economist said: “Obviously, at the moment, the markets are facing enormous turbulence because of worldwide tightening of money, and so there's a great deal of nervousness about.

“But I think the way to handle that is to deal with market turbulence in our gilts market directly through QE (quantitative easing) and then to keep the policies going."

Kwarteng: ‘Let’s see’ over potential for corporation tax u-turn

18:17 , Josh Salisbury

Kwasi Kwarteng has told a newspaper “let’s see” when asked about an imminent U-turn on cuts to corporation tax.

In an interview with the Telegraph, the Chancellor said he wanted to ensure corporation tax stayed “competitive” - but did not rule out increasing the current 19pc rate.

In response to a question about how markets “have improved today because they think you're about to do a U-turn on corporation tax”, Mr Kwarteng said: “Let’s see”.

Speculation that Mr Kwarteng would u-turn on the measure had earlier seen a sharp rise in the value of the pound.

However, in previous interviews Mr Kwarteng insisted he wanted to deliver the mini budget as planned and defiantly insisted that he was not “going anywhere” when asked about his future.

Gary Lineker ‘in breach of BBC impartiality’ after Truss Russian donors tweet

19:34 , Barney Davis

Match Of The Day Presenter Gary Lineker has been found in breach of the BBC’s own impartiality guidelines after he tweeted about the Conservative party taking money from Russian donors.

He was responding to the then-foreign secretary, Liz Truss in February when she said English football teams should not play in the Champions League final then to be held in Russia, due to the invasion of Ukraine.

Lineker quoted the tweet adding the remark: “And her party will hand back their donations from Russian donors?”

‘The markets aren’t woke’ Senior Tory MP has joined calls for the Government to reverse mini-budget

19:45 , Barney Davis

Alicia Kearns, who has just been elected as the new chairwoman of the Commons Foreign Affairs Committee, suggested the Government’s tax cuts should be scrapped to calm the markets.

She was asked on LBC’s Tonight With Andrew Marr whether she would like to see the tax cuts reversed.

“Do I think we should be borrowing en masse where our children have to pay this back for decades to come? No, I don’t,” she said.

Pressed by Marr, she stressed that sometimes Governments need to take “extraordinary steps”.

“But clearly, in the approach and the manner in which this has been done, that is the issue. Because the markets are not woke, the markets are not left. The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously. And often it is about the manner, and the fact is we govern only with the support of the people, and we are not bringing them with us currently.

“We all want Liz Truss to succeed in that the country needs her to succeed. And it is about recognising that actually, sometimes baby steps can result in more meaningful and embraced change than perhaps a bonfire.”

Liz Truss playing for survival - Theresa May’s top aide says

20:09 , Barney Davis

Advisor to former prime minister Theresa May, Giles Wilkes, has insisted Liz Truss is facing “possibly the most difficult situation a prime minister has been in this side of the Second World War”.

He told Sky News: “I can’t think of somebody who’s put themselves into such a position where they’re forced to defend something that nobody else thinks is defensible, and forced to contemplate really tough measures like slashing benefits or slashing important government spending budgets in order to try to keep a policy that nobody else believes can go on the road.

“It’s an incredibly difficult position, but right now, she’s playing for survival stakes. She has to think, ‘what do I need to throw overboard in order to keep things going?’

“And if it’s pretty much all the policies announced in the so-called mini budget, then that’s the only thing I can think she can do.”

Johnny Mercer hits out at ‘unconscionable’ results of mini-budget

20:40 , Barney Davis

Johnny Mercer has hit out at the Liz Truss’ government by sharing an anecdote of a constituent claiming his son was about to lose his home as a consequence of rising interest rates sparked by the mini-budget.

The former minister tweeted: “Heartbreaking. Unconscionable. Politically unsurvivable. I got into politics to help people like this. Will not stand and watch it burn.”

Thank you for following the Evening Standard’s coverage this evening

20:46 , Barney Davis

We shall return with the latest updates in UK politics tomorrow morning.