Pound – live: Sterling bounces back in Asia trading after Truss U-turns

The pound rebounded today to an almost two-week high after Liz Truss and chancellor Kwasi Kwarteng took a U-turn on key parts of their controversial tax cuts plan.

Sterling rose to $1.1343, a bounce of about 10 per cent from the record low against the dollar it hit last week, as plans for unfunded tax cuts unleashed chaos on British assets.

The disquiet among Liz Truss’s own MPs at the Conservative Party Conference is unlikely to stop there, however, with Priti Patel the latest senior backbencher set to take shots at the leader over her fiscal plan.

“We are spending today with no thought of tomorrow, and like the Blob in the old horror film, the more resources are absorbed today, the bigger the problem gets and the more resources it will need to eat up tomorrow,” Ms Patel will reportedly say during a speech later today.

The prime minister admitted to not having an “easy” week in a piece for today’s Express newspaper, but said she was sticking with the rest of a tax-cutting package she insisted was “essential to get the British economy moving”.

Key Points

• Scrapping of tax plan bounces stocks and sterling

• Priti Patel to fire shots at Truss over fiscal plans

• Truss admits not having an ‘easy’ week

• Tuesday’s newspapers: Mini-budget dominates the headlines

Truss responds to claims she told King Charles not to go to Cop27

10:14 , Holly Bancroft

Liz Truss has responded to claims made in the Sunday Times newspaper that she told King Charles not to go to the Cop27 climate summit.

“It’s entirely a matter for the King, his travel programme,” she told LBC. “I am not going to reveal the contents of any discussion I have with King Charles.”

Read more about the original story here:

Liz Truss ‘advised King Charles to not go to upcoming climate summit’

Truss: It’s the right time to take on more borrowing

09:57 , Holly Bancroft

Liz Truss has said that it is the right time for Britain to take on some extra borrowing to try to spur economic growth.

She told the BBC: “This is the right time to take on some extra borrowing because of a very, very severe international situation that we face. And that situation is becoming apparent, with interest rates which are rising around the world, it’s become apparent through huge energy costs, so it’s the right decision.”

Debunking the claim a benefits cut will incentivise people to work

09:37 , Holly Bancroft

Chief executive of the Resolution Foundation, Torsten Bell, has written a thread breaking down the claim that a real-term benefit cut would incentivise people to work.

He explains that “the people who have dropped out of labour market post-pandemic are largely not on benefits. This isn’t an incentives issue in a simple sense - DWP wouldn’t know how to contact, let alone ‘incentivise’ these people to work, if they tried..”

You can read his thread here:

Pound bounces back in Asia trading after Liz Truss’s tax plan U-turn

09:19 , Holly Bancroft

Pound sterling rose to an almost two-week high on Tuesday, boosted by the UK government’s U-turn on controversial plans for tax cuts.

Sterling rose 0.08 per cent to $1.1333, up about 10 per cent from the record low against the dollar seen last week following chancellor Kwasi Kwarteng’s mini-Budget announcement of scrapping the highest rate of income tax, with cuts funded by increased borrowing.

Mr Kwarteng’s pledge to abolish the 45p rate of tax, paid by people who earn more than £150,000 a year, was met with a major pushback from the opposition and a rebellion among backbench Tory MPs, who threatened to vote against the plan saying it was unfair amid a cost of living crisis.

“We get it, and we have listened,” Mr Kwarteng said regarding the reversal of a plan to cut the 45 per cent tax band.

Read the full story here:

Pound bounces back in Asia trading after Truss’ tax plan reversal

Commons leader Penny Mordaunt says benefits should rise with inflation

09:07 , Holly Bancroft

Commons leader Penny Mordaunt has told Times Radio that benefits should rise with inflation after Liz Truss refused to confirm the rise.

The cabinet minister said that she had “always supported” benefit payments keeping pace with inflation and said that it “makes sense to do so”.

“We want to make sure that people are looked after and that people can pay their bills,” she said.

“We are not about trying to help people with one hand and take away with another.”

Damian Green: Truss hasn’t got support of MPs to push through real-term benefit cut

08:45 , Holly Bancroft

Former work and pensions secretary Damian Green said Prime Minister Liz Truss has “probably not” got the support in the House of Commons to prevent an inflation-linked rise to benefits.

He told BBC Radio 4’s Today programme: “If people are already struggling, and many of these people will be, then making them struggle more is not a sensible response to the problems.

“I completely agree with the Prime Minister when she says you’ve got to see this in the round, but in the round it doesn’t make sense to an extra £1,200 of help for energy bills to the poorest people in the country and then say but we’re going to claw hundreds of pounds of that back, it militates against the Government’s own rescue package, so I don’t see the sense of this.”

Asked “If the Prime Minster doesn’t listen to you on this, could she get this policy through Parliament?”, he said: “Probably not, I think there that will be many of my colleagues who think that when you’re reaching for spending cuts, benefit payments are not the way to do it.

“As I say, cutting the welfare bill can be done a number of ways, there are other ways to do that and it of course illustrates the wider political problem of where do you find cuts, the two biggest Government budgets are health and welfare and it’s politically difficult to cut either of those budgets.”

Asked again if Ms Truss will have to do “another U-turn” if she moves ahead, he added: “Well yes and I’m trying to avoid that I think, clearly U-turns are not good for Governments and they should only do them when they realise that they are on the wrong track, we’ve had one this week and so let’s avoid the necessity for another.”

Home Secretary ‘to announce plans for law barring anyone who crosses the Channel from claiming asylum'

08:21 , Holly Bancroft

Home secretary Suella Braverman will reportedly announce a new law today which will bar anyone who crosses the Channel in a small boat from claiming asylum.

According to a report in The Times, Ms Braverman will create a blanket ban for anyone who enters the UK illegally from claiming asylum.

The new bills will also be accompanied by an increased use of detention facilities to accommodate migrants, the paper reported.

It is unclear how Ms Braverman will achieve this without breaching the 1951 UN refugee convention. Some party sources told The Times that the UK may be forced to leave the convention.

Reacting to the news, barrister Colin Yeo said: “I can’t see how a blanket ban could possibly be compatible with the Refugee Convention. Either the UK is withdrawing from the international system for protecting refugees or she’s over promising. I suspect the latter, we’ll see.”

Liz Truss refuses to rule out more U-turns as rebellion over benefits cuts grows

08:11 , Holly Bancroft

Liz Truss has sidestepped questions about further U-turns as she faces a growing rebellion within her own party against potential benefits cuts.

Cabinet minister Penny Mordaunt broke ranks to call for payments to rise in line with soaring inflation as backbenchers warned the prime minister she would struggle to get the move through parliament.

Unlike the previous government, Ms Truss has refused to confirm her plan for benefits, meaning some of the poorest households could face a real-terms cut in their income.

A day after rebels forced her to backtrack on plans to give the richest a tax cuts, critics now have a battle over benefits in their sights.

In an interview with LBC’s Nick Ferrari, Ms Truss was pressed a number of times on future about turns. Asked if there would be further U-turns on the mini- budget, she said she was determined to press ahead with her plan for economic growth, leading the host to accuse her of not answering the question.

Read the full story from our Whitehall editor Kate Devlin here:

Liz Truss refuses to rule out more U-turns as rebellion over benefits cuts grows

Brandon Lewis refuses to confirm whether benefits will rise with inflation

07:50 , Holly Bancroft

Justice secretary and Lord Chancellor Brandon Lewis has refused to confirm whether benefit payments would rise with inflation in a TV interview this morning.

“The department of work and pensions work through that over the autumn,” he told Sky News. “I’m not going to prejudge what that will be, but what I would say to people before people get too concerned about this is we’ve got a track record as a government for many years right through Covid.

“And most recently in this package that the chancellor announced of doing everything we can to protect the most vulnerable in society. That has been a driving force for this government.”

Truss: 'We have to be fiscally responsible'

07:26 , Namita Singh

Prime minister Liz Truss said there is a need to be “fiscally responsible” amid suggestions benefits will not rise in line with inflation.

She told BBC Radio 4’s Today programme: “We are going to have to make decisions about how we bring down debt as a proportion of GDP in the medium term.

“I am very committed to supporting the most vulnerable, in fact in addition to the energy price guarantee we’re also providing an extra £1,200 to the poorest households.

“So we have to look at these issues in the round, we have to be fiscally responsible.”

Uprating benefits 'a really tough call', says Tory MP

07:24 , Namita Singh

Senior Conservative MP Mel Stride said he would have to “think long and hard” if asked to vote to increase benefits in line with earnings rather than inflation.

The Treasury Select Committee chairman told BBC Radio 4’s Today programme: “I’d need to see all the details, I’d need to see it in the round, but I’d have to think long and hard about that.

“Because the last time the benefits were uprated, because of the way the mechanism works they’re uprated in April but they’re pegged against the previous September’s inflation, and the way it worked last time was the uprating was just 3.1 per cent because inflation was low the previous September, but of course inflation was much higher than that (in April).

“So we’re coming off the back actually of a kind of quite a strong real-terms squeeze on those benefits already so I think that will be a really tough call to make.”

Tory MPs vow to block Truss cuts to welfare and services, after PM’s authority damaged by U-turn

07:05 , Namita Singh

Centrist Conservative MPs have vowed to block Liz Truss’s plans for reduced spending on public services and welfare, after a humiliating U-turn on tax left the prime minister’s authority deeply damaged.

One former minister told The Independent that opponents of the PM’s radical economic policies had been “invigorated” by the sight of Ms Truss “blinking” over a scheme to abolish the 45p top rate of tax for the highest earners.

And senior backbenchers made clear that they were ready to do battle on welfare, with two former work and pensions secretaries saying it would be wrong to renege on Boris Johnson’s pledge of an inflation-matching rise and Michael Gove indicating he would need “a lot of persuading” to back cuts.

Read the details in this joint report from Andrew Woodcock, Kate Devlin and Rob Merrick:

Tory MPs vow to block Truss cuts, after PM’s authority damaged by U-turn

Treasury deletes misleading claim about benefits of Kwarteng’s budget

07:00 , Namita Singh

The Treasury has deleted a misleading claim about the supposed benefits of Kwasi Kwarteng’s budget for average earners.

The chancellor’s department had claimed someone on £30,000 a year could save around £12,700 from the package of measures if they were buying a “typical” terraced house in London.

But it emerged that someone applying for an ordinary mortgage would need to have a deposit of around £440,000 in order to benefit.

Our policy correspondent Jon Stone reporting the details:

Treasury deletes misleading claim about benefits of Kwasi Kwarteng’s budget

Holyrood committee to take evidence on racism in cricket

06:55 , Namita Singh

A Scottish parliamentary committee is due to take evidence on racism in cricket.

Cricket Scotland was placed into special measures earlier this year after a report found 448 instances of institutional racism, with the entire board of the body quitting 24 hours before the report was released.

An interim review by Sportscotland released last week found that the body was making progress but that a “genuine cultural change” was needed.

On Tuesday, the Health, Social Care and Sport Committee will take evidence from Gordon Arthur, interim chief executive of Cricket Scotland, and Sportscotland CEO Forbes Dunlop.

Report:

Holyrood committee to take evidence on racism in cricket

Tory MPs ‘openly talking’ about removing Liz Truss, says ex-No 10 chief of staff

06:51 , Namita Singh

Some Tory MPs are “openly talking” about how Liz Truss might be removed, said former No 10 chief of staff Nick Timothy – predicting it will be difficult for the PM to survive.

The ex-Downing Street official, who worked under Theresa May, said it remained “very, very difficult to recover” after the disastrous mini-Budget which sparked a backbench rebellion.

Mr Timothy said some of the MPs who decided to avoid the Tory conference are “having that conversation” about her leadership. “MPs are openly talking about it,” he told LBC’s Tonight with Andrew Marr.

Read more in this report:

Tory MPs ‘openly talking’ about removing Liz Truss, says ex-No 10 chief of staff

Suella Braverman considers pre-charge anonymity for suspects to end ‘media circus’

06:40 , Namita Singh

Home secretary Suella Braverman is considering a radical change to the criminal justice system to guarantee suspects anonymity before they are charged.

The cabinet minister said she was “looking at” whether changes could be made to protect the privacy of those suspected of a crime to save them from “trial by media”.

“I think that we’ve had some high-profile instances where the media circus around a suspect – who has not been charged – can be and has been devastating,” she told the Tory party conference in Birmingham.

My colleague Adam Forrest has more:

Suella Braverman considers pre-charge anonymity for suspects

Rich still gain 40 times more than poor from budget

06:36 , Namita Singh

Britain’s richest households are still set to gain almost 40 times as much in cash terms as the poorest from Kwasi Kwarteng’s tax giveaway Budget, even after his U-turn on the 45p rate, a leading economic thinktank has calculated.

The richest 5 per cent of households will benefit to the tune of £3,500 each on average from the decisions in the 23 September mini-Budget, compared to £90 for the poorest fifth, said the Resolution Foundation.

And unless he undertakes further U-turns on Budget announcements, Mr Kwarteng will need to impose “significant spending cuts” in his medium-term fiscal plan on 23 November or miss his target of reducing state debt as a proportion of GDP.

Our political editor Andrew Woodcock reports:

Rich still gain 40 times more than poor from Budget, even after Kwasi Kwarteng U-turn

Priti Patel to fire shots at Truss: ‘Spending today with no thought of tomorrow’

06:15 , Namita Singh

In a sign of continuing disquiet among Conservative MPs over the fiscal plan, Priti Patel is set to accuse Liz Truss and Kwasi Kwarteng of “spending today with no thought of tomorrow”.

“I want to see our party regain its credibility by restoring its commitment to sustainable public spending ... which is affordable today, tomorrow and for the foreseeable future,” the former home secretary will tell a conference fringe event, according to The Times.

The warning shots over unfunded tax cuts comes after the chancellor took two U-turn in a single day amid growing backlash over his mini-Budget.

Demanding the prime minister put a “ceiling” on public sector expenditure, Ms Patel will say: “We are spending today with no thought of tomorrow, and like the Blob in the old horror film, the more resources are absorbed today, the bigger the problem gets and the more resources it will need to eat up tomorrow.

“Right now, we have got into a pattern of borrowing huge amounts to fix today’s urgent problems or generate short-term populist headlines. Each time it seems that there’s a good case, but what does this mean for future generations?

“I want to see our party regain its credibility by restoring its commitment to sustainable public spending . . . which is affordable today, tomorrow and for the foreseeable future.”

Scrapping of tax plan bounces stocks and sterling

05:58 , Namita Singh

Asian stocks bounced today after Britain scrapped bits of a controversial tax cut plan, tentatively improving global market sentiment and rallying bonds and the pound.

In trade thinned by holidays in China and Hong Kong, MSCI’s broadest index of Asia-Pacific shares outside Japan rose one per cent, led by a 2.5 per cent gain in Australia.

Japan’s Nikkei rose 2.6 per cent. Sterling drifted up to an almost two-week high of $1.1343, making for a bounce now of almost 10 per cent from a record low hit last week after plans for unfunded tax cuts unleashed chaos on British assets.

“The about-face ... will not have a huge impact on the overall UK fiscal situation in our view,” said NatWest Markets’ head of economics and markets strategy John Briggs.

“(But) investors took it as a signal that the UK government could and is at least partially willing to walk back from its intentions that so disrupted markets over the past week.”

Investors also took heart from stability at the long end of the gilt market, even though emergency purchases from the Bank of England were only relatively modest.

Truss admits not having an ‘easy’ week, vows to stick with tax-cutting package

05:45 , Namita Singh

Liz Truss admitted that it has not been an “easy” week but indicated she was sticking with the rest of a tax-cutting package laid out in the mini-Budget.

She told the Express newspaper: “Express readers can rest assured: we will reward your trust.

“It has not been an easy week, but we have shown that we listen to people’s concerns and we are determined to deliver on our core plan for economic success and security.

“Our plan for growth is essential to get the British economy moving. Growth is the only way to create jobs, boost wages and fund our vital public services like the NHS.

“With our Energy Price Guarantee, we are supporting families and businesses with their energy bills.

“With our tax cuts, we will put money back in the pockets of hard-working people and grow our economy.

“With our investment plans, we will unleash the potential of the whole country and get Britain moving.

“This is the best country in the world and I will do what it takes to put us on the path to a more secure, prosperous future.”

The prime minister is expected to deliver a short speech at the Conservative Party conference on Wednesday, which the outlet described as “short, sharp, optimistic”.

Tories seeking to shift focus from economy after U-turn humiliation

05:32 , Namita Singh

The Conservatives will attempt to shift the focus away from the economy following the humiliation of two U-turns on income tax cuts for the highest earners and the date of a new fiscal plan.

Home secretary Suella Braverman and foreign secretary James Cleverly will aim to set out the government’s plans on immigration and commitment to support Ukraine in their keynote speeches today at the Tory conference in Birmingham.

Ms Braverman will use her conference speech to call for the French to stop more boats from crossing the English Channel and set out her intention to bring in new laws to make it easier to deport people who come to the UK illegally.

The home secretary will promise to allow “the kind of immigration that grows out the economy” but “end abuse of the rules”.

The foreign secretary will declare that Britain has the “strategic endurance” to see Ukraine through to victory over Russian invaders. He will say that Ukraine has the UK’s unwavering support in its efforts to push back Vladimir Putin’s forces, saying that “we are players on the pitch” and not just “commentators”.

Mr Cleverly will also repeat Liz Truss’s vow that UK will never accept Russian president Vladimir Putin’s annexation of the regions of Donetsk, Luhansk, Kherson, Zaporizhzhia or Crimea.

Tories facing ‘wipe-out’ as new poll gives Labour 25-point lead

04:00 , Lamiat Sabin

Labour has a 25-point lead over the Conservatives in a new poll that suggests Liz Truss would be on track for a “wipe-out” at the next general election.

The survey by Savanta ComRes is the latest showing a collapse in support for the Tories in the wake of chancellor Kwasi Kwarteng’s disastrous mini-Budget.

The pollster said that the Labour lead was the biggest ever recorded by the company and could leave the Tories out of power for a generation.

You can read the full story here by Andrew Woodcock

Tories facing election ‘wipe-out’ as new poll gives Labour 25-point lead

ICYMI: Tory MPs ‘openly talking’ about removing Liz Truss

03:00 , Lamiat Sabin

In case you missed it...

Nick Timothy, former No 10 chief of staff under Theresa May, said it remained “very, very difficult to recover” after the disastrous mini-Budget.

He said that some MPs were “openly talking” about how Ms Truss might be removed from Downing Street, though he cautioned: “I think anybody who makes the assumption that therefore she might be removed or have to leave as PM, I think is over-egging it at this stage.”

You can read the full report by Adam Forrest here

Tory MPs ‘openly talking’ about removing Liz Truss, says ex-No 10 chief of staff

Prototype nuclear fusion power plant 'will be built by 2040’

02:00 , Lamiat Sabin

A prototype nuclear fusion power plant, possibly the first in the world, will be built by 2040, business secretary Jacob Rees-Mogg has said.

He told the Conservative Party conference the fusion energy plant would be built in Nottinghamshire, replacing a coal-fired power station in the area.

Speaking from the main stage at the conference in Birmingham, Mr Rees-Mogg said: “Over the decades we have established ourselves as pioneers in fusion science and as a country our capabilities to surmount these obstacles is unparalleled, and I am delighted to make an announcement of a vital step in that mission.

“We will build the UK’s first prototype fusion energy plant in Nottinghamshire, replacing the West Burton coal-fired power station with a beacon of bountiful green energy.”

He added: “The plant will be the first of its kind, built by 2040 and capable of putting energy on the grid, and in doing so will prove the commercial viability of fusion energy to the world.”

Cleverly: UK has ‘strategic endurance to see Ukraine to victory’

01:00 , Lamiat Sabin

Foreign secretary James Cleverly will declare on Tuesday that Britain has the “strategic endurance” to see Ukraine through to victory over Russian invaders.

In his Conservative Party conference speech, he is expected to say that Ukraine has Britain’s unwavering support in its efforts to push back Vladimir Putin’s forces, saying that “we are players on the pitch” and not just “commentators”.

It comes after Britain ramped up sanctions against Moscow, with new measures targeting vulnerable sectors of the economy, in response to the Russian president’s “illegal” annexation of swathes of Ukrainian territory.

Mr Cleverly will repeat PM Liz Truss’s vow that the UK will never accept Putin’s claim to the regions of Donetsk, Luhansk, Kherson, Zaporizhzhia or Crimea.

As part of his speech, Mr Cleverly is expected to say: “We aren’t commentators. We are players on the pitch. Making a difference. Promoting our values. Competing on the world stage for what we believe is right.

“We believe in freedom. We believe in the rule of law. We believe that an aggressor cannot invade its neighbour with impunity.

“This is why we stand shoulder to shoulder with those brave Ukrainians defending their homeland. And Britain has the strategic endurance to see them through to victory.”

Braverman plans new deport laws to block illegal immigration

Tuesday 4 October 2022 00:01 , Lamiat Sabin

Suella Braverman is considering new laws to make it easier to deport people who are deemed to be illegal immigrants.

At the Conservative Party conference on Tuesday, she will call for France to stop more small boats crossing the English Channel.

The home secretary will promise to allow “the kind of immigration that grows our economy” but “end abuse of the rules” by human traffickers.

As the government’s policy on sending asylum seekers on a one-way trip to Rwanda is being challenged in the courts, Ms Braverman is committed to looking at new powers to ensure that her immigration policies cannot be derailed by modern slavery laws, the Human Rights Act or the European Court of Human Rights.

Ms Braverman will tell the conference: “It’s right that we extend the hand of friendship to those in genuine need.

“This country has always done so. It did so for my father in the 1960s as a young man from Kenya. We have now welcomed hundreds of thousands of people fleeing Syria, Hong Kong, Afghanistan and Ukraine.

“ ... Parts of the system aren’t delivering. We need to end abuse of the rules and cut down on those numbers that aren’t meeting the needs of our economy.”

Tuesday’s newspapers: Mini-budget dominates the headlines

Monday 3 October 2022 23:30 , Lamiat Sabin

Independent: Now Tory rebels vow to block cuts to benefits

Financial Times: Kwarteng quickens debt cut plans after U-turn on tax

Daily Record:Flipping eejits

i: Truss faces new Tory rebellion on benefits cuts

Daily Star: The lady is for U-turning

Mirror: Damage is done

Guardian: Tory plot to halt benefit cuts after U-turn over top tax rate

Morning Star: Humiliated Kwarteng forced to backtrack

Metro: What a day!

Daily Telegraph: PM takes on rebels in battle to rein in benefits

Daily Mail: Get a grip!

City A.M.: ‘A little turbulence’

Daily Express: Stick with us and we will reward your trust

Meanwhile, The Sun was the only national newspaper to not make the mini-Budget its main story on its front page.

Police ‘refusing to shut down Benny Hill music’ outside venue

Monday 3 October 2022 23:00 , Lamiat Sabin

West Midlands police have been “refusing” to stop the Benny Hill Show theme tune playing outside the conference venue, according to a journalist.

Tory MP Michael Fabricant said that anti-Brexit protester Steve Bray – who is known for having shouted “stop Brexit” outside Parliament – is responsible for putting on the comedic soundtrack.

It had also been playing outside the ICC venue in Birmingham on Sunday, the first day of the conference.

Tories should dissent in ‘grown-up fashion,’ says Badenoch

Monday 3 October 2022 22:30 , Lamiat Sabin

Kemi Badenoch has urged Tory MPs to disagree “in a grown-up fashion” instead of “rushing to the first TV studio to let everybody know how angry you are”.

Her comment was in response to a question – in a Q&A session – with GB News’ Liam Halligan on the main stage of the Conservative Party conference in Birmingham.

The international trade secretary was asked how the party can communicate effectively the growth plan to the country.

She said: “As a party, we need to get behind the Prime Minister because if you don’t do that, then none of that... We need unity. And we need to be able to have dissent in a grown-up fashion.

“I think, when other people have problems with policy, I think there is a way of communicating it and not necessarily rushing to the first TV studio to let everybody know how angry you are.”

Ms Badenoch also said, during the second day of the conference, that she hopes that the UK “can do mini-trade deals with the 50 states of the US.”

Royal Navy frigate helping to protect North Sea infrastructure

Monday 3 October 2022 22:00 , Lamiat Sabin

A Royal Navy frigate has been deployed to the North Sea in an effort to protect underwater infrastructure following attacks on the Nord Stream pipelines.

Defence secretary Ben Wallace joined a crisis meeting of northern European nations on Monday to discuss co-ordinating security responses, including increased maritime presence.

“The group condemned the blatant attacks against civilian infrastructure,” the Ministry of Defence tweeted.

“A Royal Navy frigate is in the North Sea, working with the Norwegian Navy to reassure those working near the gas pipelines.”

You can read the full story here:

Navy ship protecting cables in North Sea after Russian pipeline attack

Some Tory MPs ‘talking about getting rid of Liz Truss’

Monday 3 October 2022 21:30 , Adam Forrest

Nick Timothy, former No 10 chief of staff under Theresa May, said it remained “very, very difficult to recover” after the disastrous mini-Budget.

He said that some MPs were “openly talking” about how Ms Truss might be removed from Downing Street, though he cautioned: “I think anybody who makes the assumption that therefore she might be removed or have to leave as PM, I think is over-egging it at this stage.”

Speaking to LBC’s Tonight with Andrew Marr, he added: “They’ve dug themselves in an absolutely enormous hole and it’s going to be very difficult to get out of it.”

Boris Johnson’s sister Rachel Johnson told Marr that another fall in the pound sterling after the Bank of England stops its emergency bond-buying scheme could mean the end for Ms Truss and chancellor Kwasi Kwarteng.

“I they will go down with the pound if we see the pound falling on October 14 … there won’t be anything else to do apart from having maybe a general election I think.”

Braverman considering anonymity for suspected criminals

Monday 3 October 2022 21:00 , Lamiat Sabin

Earlier we reported that home secretary Suella Braverman is considering a radical shake-up to the criminal justice system to grant suspects anonymity before they are charged.

At a Young Conservatives event at Tory conference, she said she was “looking at” whether changes could be made to protect the privacy of those suspected of a crime to save them from “trial by media”.

She said: “I think that we’ve had some high-profile instances where the media circus around a suspect – who has not been charged – can be and has been devastating.”

You can read all the details here by Adam Forrest

Suella Braverman considers pre-charge anonymity for suspects

Get on with it, Liz Truss tells NI parties on power-sharing

Monday 3 October 2022 20:30 , Adam Forrest

There is no reason why a new Northern Ireland Assembly and executive should not be re-established at Stormont now, Liz Truss has said.

“I strongly encourage the parties in Northern Ireland to get on with that,” she said.

But Ms Truss also warned of a pre-Christmas election if the parties did not return to power-sharing by 28 October, as outlined by current legislation.

Asked if there would be an election if the institutions are not restored by the end of the month, Ms Truss told UTV: “Yes, there will.”

FCO summons diplomat over protest crackdown in Iran

Monday 3 October 2022 20:00 , Lamiat Sabin

The Foreign and Commonwealth Office (FCO) today summoned Mehdi Hosseini Matin – Iran’s most senior diplomat in the UK – in response to the country’s crackdown on protests over the death of Mahsa Amini.

Ms Amini died aged 22 in the custody of Iran’s morality police in Tehran for allegedly not adhering to Iran’s strict dress code.

Foreign secretary James Cleverly said he had instructed the Foreign Office to summon Mr Matin.

Mr Cleverly said: “The violence levelled at protesters in Iran by the security forces is truly shocking.

“Today we have made our view clear to the Iranian authorities – instead of blaming external actors for the unrest, they should take responsibility for their actions and listen to the concerns of their people.

“We will continue to work with our partners to hold the Iranian authorities to account for their flagrant human rights violations.”

Schools and hospitals ‘must find £11bn of cuts’

Monday 3 October 2022 19:30 , Lamiat Sabin

Schools and hospitals will be forced to make £11 billion worth of cuts, according to a think tank, after chancellor Kwasi Kwarteng has refused to protect their budgets from soaring inflation.

Mr Kwarteng has been warned against his decision to stick to 2021 spending allocations amid rising prices.

Despite this, local government minister Paul Scully has claimed that there is “fat to be trimmed” from town hall budgets.

The Institute for Fiscal Studies (IFS) already warned that an extra £18bn was needed next year to restore “the real-terms generosity intended” when the allocations were made.

You can read the full story here by Rob Merrick

Schools and hospitals ‘must find £11bn of cuts’ after Kwarteng spending freeze

Nearly 500,000 people sign petition for early general election

Monday 3 October 2022 19:15 , Lamiat Sabin

Almost half a million people have put their names to a petition calling for an early general election.

The petition has been signed by more than 480,000 people at the time of writing.

This means that the petition is set to be debated in Parliament as it has garnered more than 100,000 signatures.

Part of the government’s response to the petition says: “A change in the leader of the governing party does not trigger a general election – this has been the case under governments of successive political colours.”

Nadine Dorries, former culture secretary and a Boris Johnson loyalist, has called on his successor Liz Truss to call an election earlier than the scheduled date of 2024.

Although Ms Dorries backed Ms Truss in the Tory leadership race over the summer, she has become increasingly critical of the prime minister and has called for a fresh nationwide vote.

In complaining that her three years’ worth of work has been halted, she said: “No one asked for this. C4 (Channel 4) sale, online safety, BBC licence fee review, all signed off by Cabinet all ready to go, all stopped.”

You can read her remarks in the full story here by Kate Devlin

Nadine Dorries calls on Liz Truss to hold a general election

Key pledges: Nuclear power to harsher sewage dumping fines

Monday 3 October 2022 19:00 , Lamiat Sabin

While chancellor Kwasi Kwarteng’s widely-panned speech has dominated the headlines, other ministers have made a number of pledges and announcements today.

Here are the key takeaways from their speeches:

The UK’s first prototype nuclear fusion power station will be built in Nottinghamshire by 2040, business secretary Jacob Rees-Mogg announced.

The government will be replacing GDPR (general data protection regulation) its “own business and consumer friendly British data protection system,” culture secretary Michelle Donelan announced.

Work and Pensions secretary Chloe Smith has said “protecting the most vulnerable is a priority” for her and said that the government has confirmed that pensions “will again be supported by the triple lock”.

Home secretary Suella Braverman told an audience of Young Conservatives at the party conference that she will “look at” giving anonymity to suspected criminals before they are charged to avoid what she called “trial by media”.

Environment secretary Ranil Jayawardena confirmed he would lift the limit on fines that water companies could face for dumping sewage in UK waterways from £250,000 to up to £250 million.

Watch: Rees-Mogg doesn’t mind being called ‘Tory scum’

Monday 3 October 2022 18:45 , Adam Forrest

Jacob Rees-Mogg – subjected to plenty of abuse from protesters as he arrived the Tory conference – said: “If people really want to call me Tory scum, I don’t mind.”

The business secretary said: “I happen to think that having a democracy where you can actually walk through the streets and people can exercise their right to peaceful protest shows the strength of our society.”

A rundown of Liz Truss’ history of U-turns

Monday 3 October 2022 18:30 , Lamiat Sabin

The scrapping of the plan to abolish the 45p tax rate was Liz Truss’ first U-turn as prime minister.

But it appears she has a bit of a history of having to eat her words after making big decisions.

Jon Stone has compiled a rundown on her backtracks, including those on the cost of living and abolishing the monarchy.

Liz Truss’ history of U-turns after first major reversal as Prime Minister

Kwarteng’s speech ‘an insult to millions of people’ - Lib Dems

Monday 3 October 2022 18:15 , Lamiat Sabin

The Liberal Democrats have said that the Chancellor’s speech at the Tory party conference will bring “cold comfort” to struggling households.

The party’s Treasury spokesperson Sarah Olney said: “Laughing about the turbulence caused by this botched budget is an insult to the millions of people already facing spiralling mortgage costs.

“Kwasi Kwarteng’s fiscal failure saw the economy tank and mortgage rates go through the roof, his words will bring cold comfort to struggling families and pensioners.

“This should be his first and last conference speech as Chancellor. If he had any integrity left Kwarteng would hand in his notice and apologise to the British people for the damage he has caused.”

You can read the full story here by Kate Devlin

Chancellor accused of ‘insulting millions’ with joke about budget

Working people ‘paying for Tories’ economic crisis’ – Labour

Monday 3 October 2022 18:00 , Lamiat Sabin

Labour said Kwasi Kwarteng’s speech showed “a Chancellor and a Tory government completely out of touch, with no understanding on its own appalling record on growth”.

Shadow chancellor Rachel Reeves said in a series of tweets: “What the Chancellor called a little financial disturbance is a huge economic body blow to working people that will mean higher prices and soaring mortgages. That’s the Tory economic premium.

“This is an economic crisis made in Downing Street, paid for by working people.”

She added:“The Tories have damaged the UK’s reputation on the global stage and left us all worse off. The fact the Bank of England had to step in with a £65 billion bailout out with taxpayers’ money is deeply shameful.

“They must reverse this Budget and abandon their discredited, dangerous trickle-down approach.”

Security restrictions at Tory conference lifted

Monday 3 October 2022 17:45 , Lamiat Sabin

ICYMI: Tory conference put on temporary security lockdown

Monday 3 October 2022 17:30 , Lamiat Sabin

In case you missed it...

The Conservative Party conference was temporarily locked down because of a “potential security alert”, police in Birmingham said.

Delegates were not allowed to enter or leave the event, held at the International Convention Centre (ICC), for more than an hour before chancellor Kwasi Kwarteng was due to address the annual conference.

You can read Lizzie Dearden’s story here

Conservative Party conference put on lockdown due to ‘potential security alert’

Labour gains massive 25-point poll lead after mini-Budget

Monday 3 October 2022 17:15 , Lamiat Sabin

A new poll has given Labour a 25-point lead over Conservatives in the wake of Kwasi Kwarteng’s highly-contentious mini-Budget.

The survey by Savanta ComRes suggests Sir Keir Starmer’s party is on track for a landslide victory at the next general election.

You can read more on this developing story here by Andrew Woodcock

New poll gives Labour 25-point lead after disastrous mini-Budget

‘Nobody trusts you,’ MP says in response to Kwarteng speech

Monday 3 October 2022 17:09 , Lamiat Sabin

Green MP Caroline Lucas has commented in response to Kwasi Kwarteng’s speech by saying that “nobody trusts you now”.

Chancellor Mr Kwarteng told delegates at Tory conference that the government “remains absolutely committed to being serious custodians of the public purse”.

It came after he made a U-turn on his plans to axe the 45p rate of tax, a proposal which caused market turmoil that he today described as “a little turbulence”.

Ms Lucas tweeted, with an exploding head emoji: “Too late, mate – nobody trusts you now, you’ve been arrogant & reckless, ignored warnings & now many families can’t afford mortgages or cost of basics”.

Economic reforms to be announced over ‘coming weeks’

Monday 3 October 2022 17:02 , Lamiat Sabin

The government will introduce “sensible” economic reforms over the coming days and weeks, Kwasi Kwarteng has told delegates at the Tory conference in Birmingham.

He said: “Over the coming days and weeks, we will forge ahead and break down the barriers that have held our country back for too long on childcare, agriculture, immigration, planning, energy, broadband, business, financial services.

“Sensible economic reforms to produce more of the products and services we need to drive down costs, to create jobs and to generate higher pay and productivity.”

Kwarteng says tax cuts were ‘not radical or irresponsibe'

Monday 3 October 2022 16:42 , Lamiat Sabin

Kwasi Kwarteng has defended the government’s plans to cut taxes, saying it’s not radical or irresponsible.

The Chancellor told the Conservative Party conference: “While we all believe in growth, we as Conservatives also believe that it is an important principle that people should keep more of the money they earn.

“I don’t need to tell you that. That isn’t radical, that isn’t irresponsible. It is a deeply-held belief that we all share as Conservatives.

“We were faced with a 70-year high tax burden. We were confronted with low growth and the path we were on was clearly unsustainable. So, that’s why we’re cutting taxes for working people.”

Kwarteng refers to market turmoil as ‘a little turbulence’

Monday 3 October 2022 16:38 , Lamiat Sabin

Kwasi Kwarteng has described the turmoil his economic plans have caused to the markets as a “little turbulence”.

The chancellor took to the stage at the Conservative Party conference to defend his measures.

He told delegates: “I can be frank. I know the plan put forward only 10 days ago has caused a little turbulence.

“I get it. I get it. We are listening and have listened, and now I want to focus on delivering the major parts of our growth package.”

He added: “Because with energy bills skyrocketing, a painful Covid aftermath, war on our continent, a 70-year high tax burden, slowing global growth rates and glacially slow infrastructure delivery, we couldn’t simply do nothing.

“We can’t sit idly by. What Britain needs more than ever is economic growth.”

Watch: ‘What a day!’ – Kwarteng after U-turn on 45p tax axe

Monday 3 October 2022 16:28 , Lamiat Sabin

“What a day,” chancellor Kwasi Kwarteng said in the opening of his speech at the Conservative Party conference.

“It’s been tough,” he said referring to the U-turn he made earlier today on his proposal for axing the 45p tax rate.

He added: “But we need to focus on the job in hand.

“We need to move forward. No more distractions. We have a plan and we need to get on and deliver it.

“That is what the public expects from the government.”

News of security lockdown ‘hasn’t affected delegates inside’

Monday 3 October 2022 16:18 , Lamiat Sabin

News of the conference being put in a security “lockdown” has yet to affect delegates inside the building, according to a journalist.

Jane Haynes of Birmingham Live said that staff at the ICC venue “are in the dark” about the “unknown security incident” that has led police to block attendees from leaving and exiting the building until further notice.

It was announced minutes before chancellor Kwasi Kwarteng was set to take to the stage.

Ms Haynes added: “No alarms going off or worried faces. Except those fretting for the speech ahead obvs.”

‘Unknown security threat’ throws Tory party conference ‘under lockdown’

Monday 3 October 2022 16:00 , Emily Atkinson

The Conservative Party conference in Birmingham has been placed under a lockdown due to an “unknown security incident”, according to attendees.

Reports suggest that nobody is being allowed to enter or leave “until further notice”.