internationally people can believe in. , , �* �* , internationally people can believe in. this is bbc news broadcasting live from london. _ in. this is bbc news broadcasting live from london. welcome - in. this is bbc news broadcasting live from london. welcome if - in. this is bbc news broadcasting live from london. welcome if you in. this is bbc news broadcasting - live from london. welcome if you are watching in the uk or around the world. kwasi kwarteng is no longer chancellor of the exchequer, the bbc has learned. it is not yet clear whether he was sacked by liz truss or chose to resign. the chancellor rushed back to london overnight after cutting short a trip to washington for the meeting of the imf. after days of turmoil, indeed weeks on the financial market following the mini budget, the prime minister is about to hold a downing street conference to explain what's going on with herfinancial street conference to explain what's going on with her financial policy. some mps have called for a u—turn.

my some mps have called for a u—turn. my advice to the prime minister would be to do it, do it now, something that will be firm, bold and convincing. liz truss has faced growing calls from within her own conservative party to rethink her economic plans. labour, the principal party of opposition in the uk, says a u—turn would mean liz truss has to resign. liz truss who got us into all this trouble, rowing backwards desperately, not knowing where she's going, what would —— what good would that do for britain? good afternoon. if you have just joined, if you havejustjoined, welcome if you have justjoined, welcome to bbc news. the bbc has been told kwasi karteng is no longer chancellor.

it's not yet clear if he's been sacked or if he's resigned. this morning he rushed back to london to see the prime minister, after cutting short a trip to washington. it follows turmoil on the finanancial markets after his mini budget last month. the prime minister is about to hold a news conference, with speculation she'll announce a u—turn on some of the measures in that mini budget. i'm joined by our uk political correspondent rob watson. events have been moving extremely fast today in the uk. bring us up—to—date. to fast today in the uk. bring us un-to-date-_ up-to-date. to call it frantic friday wooden _ up-to-date. to call it frantic friday wooden be _ up-to-date. to call it frantic friday wooden be quite - up-to-date. to call it frantic friday wooden be quite up i up-to-date. to call it frantic| friday wooden be quite up to up-to-date. to call it frantic - friday wooden be quite up to the scale because this is the latest twist in britain's long rolling crisis, a crisis that has been rolling for some years, but this is a truly profound moment of crisis. but political crisis, an economic

crisis and a crisis about britain's standing in the world. to bring us up—to—date is the second most important person in the government, the chancellor, is going. as you say, we don't know whether it's because he is against the u—turn or because he is against the u—turn or because he is against the u—turn or because he has been sacked. we simply don't know what it represents an astonishing moment for liz truss because she is a true believer. she is an economic libertarian, and she believes in lower taxes and smaller state, but essentially that has been rejected by many in her own party and that's been rejected of course by the financial markets.— by the financial markets. what's wor inc by the financial markets. what's worrying for _ by the financial markets. what's worrying for her _ by the financial markets. what's worrying for her in _ by the financial markets. what's worrying for her in terms - by the financial markets. what's worrying for her in terms of - by the financial markets. what's worrying for her in terms of her| worrying for her in terms of her future as prime minister is presumably that she campaigned on this agenda. she was chosen over her rival, the former chancellor rishi sunak, who said there would be political and economic consequences of her policy was pursued. they decided they wanted it. now she's

having to row back at least on parts of it, although how much and just over an hour. it’s of it, although how much and 'ust over an hour. it's a profound olitical over an hour. it's a profound political crisis. _ over an hour. it's a profound political crisis. it's _ over an hour. it's a profound political crisis. it's not - over an hour. it's a profound political crisis. it's not as - over an hour. it's a profound political crisis. it's not as if i over an hour. it's a profound i political crisis. it's not as if the idea of the mini budget, the smaller state and lower taxes was kwasi kwarteng's and had been foisted upon her. this is what she campaigned on, she said britain would be different under prime minister truss. so this idea that you could do what politicians often do witches make someone a fall guy, it's all his or herfault, that will someone a fall guy, it's all his or her fault, that will be so much someone a fall guy, it's all his or herfault, that will be so much more difficult. there is another complication and that is one that is notjust ideological, notjust that she was tied to kwasi kwarteng in terms of genuinely believing in this approach to economics, but it's about her. while awful lot of conservative mps, and remember she was the first choice of only 50 of them in the ballot the leadership, just think that she is incompetent. they think she is robotic, they

think she lacks any kind of empathy, in other words that she is a sure—fire vote loser beyond those activists in the governing conservative party. activists in the governing conservative pa . ., ~ , ., , conservative party. thank you very much. i'm joined now by vicky pryce, chief economic adviser, centre for economics and business research and former joint head of the uk government economic service. it's good to speak to you, albeit on a troubled day for the british political classes and also everybody else in the country because of their experiences over the last few weeks. absolutely, that adds uncertainty, but if you look at the markets they seem to have calmed down. yes, sterling has calmed down since the announcement as we understand it of the chancellor going, and the u—turn thatis the chancellor going, and the u—turn that is about to happen, because of course that means less money put into the economy if you like and possibly less growth, so maybe they are reevaluating that element of it but it remains to be seen where it

all settles. interestingly the bond markets have come down quite a bit. very significantly in fact, the gilt is below li%, which is incredibly good for homeowners if some of those interest rate increases we have seen recently may start getting reversed, what they have to pay for fixed—rate deals and other deals they may be entering into. the workings of the bank of england may be calming the markets down but there so many questions still in terms of the longer sustainability of finances, because if you are u—turning in all of this, where is the credibility in the future? we were expecting to get the future? we were expecting to get the obr, the office for budget responsibility announcement at the

end of this month with another fiscal event. is all of this going to happen? or will we get the analysis early? because they will have to recalculate everything given the u—turn. have to recalculate everything given the u-turn. ., have to recalculate everything given the u-turn-— the u-turn. forgive me for interrunting _ the u-turn. forgive me for interrupting you _ the u-turn. forgive me for interrupting you but - the u-turn. forgive me for interrupting you but i - the u-turn. forgive me for interrupting you but i want| the u-turn. forgive me for. interrupting you but i want to the u-turn. forgive me for- interrupting you but i want to bring some further news we are getting. the chancellor in his letter to the prime minister which we are about to see, i can't read it i'm afraid, it's a bit small, but i can read what i can see on the various bits of copy that are appearing. in it, he says it's important the prime minister should at this stage emphasise her government's commitment to fiscal discipline, and also that he himself is confirming he has been sacked, that it is not a voluntary resignation. there are also suggestions other members of the treasury team will leave their posts. that is not in his letter. do you think she still has to go some way, the british prime minister, liz truss, in this news conference to

reassure people that it is notjust a question of throwing him under the bus to protect her own position? it sounds like it to me certainly, and as we have been hearing the political commentators also suggesting, and who knows what will happen with her position as well. but it is going to take a little bit of work, notjust perhaps getting rid of the treasury ministerial team if you like to get the markets to believe in the long term plans being sustainable. and the way this is gone about, making announcements without proper analysis and without even making an attempt to show how things will be funded has damaged the reputation very significantly, and it will be hard to get that back. we have heard also the international monetary fund and everyone else in fact looking at the uk with astonishment really, they're at this time when inflation causes the number one priority, we have ended up if anything making things

worse on that front. in ended up if anything making things worse on that front.— worse on that front. in terms of this, to give _ worse on that front. in terms of this, to give the _ worse on that front. in terms of this, to give the phrasing, - worse on that front. in terms of this, to give the phrasing, he i worse on that front. in terms of i this, to give the phrasing, he has accepted prime minister liz truss's request for him to stand aside. you and i know in political language that means he was sacked. in other words, if he hadn't been stepped aside he would have been forced out anyway. it does look like now the suggestion is he was backed by downing street late last night, he went straight into the back door of downing street to see the prime minister, but in a sense prime minister, but in a sense prime minister often find it useful, don't they, to deflect responsibility to other ministers and that's why ministers often end up being sacked, to protect the person at the top. how secure does she look economically though, in terms of the kind of message she will need to project at this news conference to reassure the markets in the first instance before she can start reassuring the british voters? i

presume she will have to say that she has learned, she listened and that she has seen what the implications of what they were suggesting has been in the markets, and the bank of england had to intervene and start selling bonds. she will probably reassure everyone the electricity price freeze will stay, because that was a very important part, but that will cost quite a lot of money, sol important part, but that will cost quite a lot of money, so i think there had been expectations the markets were going to buy into that quite easily because they understood the importance of it. but they got indigestion with the extra tax—cutting measures. ithink indigestion with the extra tax—cutting measures. i think she will have to work very hard to ensure that whatever comes out in terms of policies in the future will be responsible, if you want to call it that. even if there is a u—turn in areas such as the corporation tax cut or rather the reintroducing of corporation tax increase as we are now expecting will be the case up to

25%, it doesn't actually raise huge amounts of money, so it only raises something like 50 billion out of something like 50 billion out of something like 50 billion out of something like 800 billion plus that is raised every year, so it is small beerin is raised every year, so it is small beer in some ways but more indication perhaps where this government might be going. these u—turns i think will be very positive for her own premiership, i would guess. just positive for her own premiership, i would gum— would guess. just to give some further information, _ would guess. just to give some further information, this - would guess. just to give some further information, this is - would guess. just to give some further information, this is not| further information, this is not confirmed but there are suggestions that a former british foreign secretaryjeremy hunt could be the new chancellor of the exchequer. that suggestion is coming from the political editor of the times newspaper. it is now being reported ljy newspaper. it is now being reported by the reuters news agency. whether or not it's him, is that the sort of figure that would restore some degree of credibility? in other words the idea that the new prime minister turns to an old hand politically, someone who dates back to the earliest days of the david cameron government 12 years ago?

hello, vicky, can you still hear me? i think we have lost macri —— we have lost vicky pryce. let me give you some background in the minutes after the resignation of the chancellor. kwasi kwarteng says he was invited to step down, which is code for if he hadn't gone he would have been sacked. clearly he recognised that if he didn't move, there needed to be some kind of signal that government policy was changing. his words have not reassured markets over the last month. his authority has looked weak. the danger is if he had remained in his post, it would have undermined the prime minister's own position. we are seeing shots in downing street. downing street is on the right in this picture, the famous black door to number ten that you will be very familiar with if you will be very familiar with if you live in the uk, wherever else you live in the uk, wherever else you are in the world i suspect you will know it as well, there has certainly been a lot of activity in

and out of that door over the last few months. the bbc has been in ashford, in kwasi kwarteng's constituency in the south—east of england. it constituency in the south-east of en . land. , constituency in the south-east of encland. , ., , ., ., england. it needs to be someone who knows what they _ england. it needs to be someone who knows what they are _ england. it needs to be someone who knows what they are doing. _ england. it needs to be someone who knows what they are doing. and - england. it needs to be someone who knows what they are doing. and i - knows what they are doing. and i don't think anybody knows what they are doing. i don't think anybody knows what they are doinu. , don't think anybody knows what they are doinu . , ., don't think anybody knows what they are doinu. , . ., are doing. i must admit, i had confidence — are doing. i must admit, i had confidence in _ are doing. i must admit, i had confidence in him _ are doing. i must admit, i had confidence in him as - are doing. i must admit, i had| confidence in him as chancellor are doing. i must admit, i had - confidence in him as chancellor but itiust _ confidence in him as chancellor but itjust didn't work confidence in him as chancellor but it just didn't work out. that confidence in him as chancellor but itjust didn't work out.— it just didn't work out. that is the chancellor _ it just didn't work out. that is the chancellor of _ it just didn't work out. that is the chancellor of the _ it just didn't work out. that is the chancellor of the exchequer. - it just didn't work out. that is the chancellor of the exchequer. he l it just didn't work out. that is the i chancellor of the exchequer. he has just left downing street. we will try to replay those pictures because they are in a live feed and get them back as soon as we can. there we go, his official car leaving downing street. he had been inside talking to the prime minister, his former boss. he now returns to the backbenches. after not the shortest

speu backbenches. after not the shortest spell as prime minister, nadhim zahawi had that, but what we are expecting is we will get a formal announcement on his replacement when the british prime minister liz truss addresses journalist in about 45 minutes' time. we will have coverage live on bbc news of all of that, and we are trying to establish what may have happened and the circumstances. let's talk to a former senior minister, minister of international trade and also served at the foreign office and a number of other postings. sir alan duncan, thank you for being with us. first of all your reaction to the departure at the prime minister's request. it’s reaction to the departure at the prime minister's request. it's often a very dramatic. — prime minister's request. it's often a very dramatic, sudden _ prime minister's request. it's often a very dramatic, sudden step, - a very dramatic, sudden step, particularly as they were very close to each other, personal friends. they worked together on a leadership

campaign, and i think the dismissal of any chancellor of the exchequer is a drama in any country, but this is a drama in any country, but this is very shocking because it's happening at a critical time, and of course he has only been there for a few weeks. we have had four chancellors in three months and four prime minister is in six years. i'm afraid the british government is not looking stable or competent. what we have got to hope is that by doing this ruthless deed, we can at least stabilise the economy. i don't think it will stabilise the government or our politics, but we need to stabilise the economy and restore an element of confidence into financial markets, which has obviously been so disastrously lost over the last couple of weeks.— disastrously lost over the last couple of weeks. you have been in the conservative _ couple of weeks. you have been in the conservative party _ couple of weeks. you have been in the conservative party for - couple of weeks. you have been in the conservative party for most. couple of weeks. you have been in the conservative party for most of| the conservative party for most of your adult life, the conservative party for most of youradult life, maybe the conservative party for most of your adult life, maybe even boy and man! i always wonder why we say man

and boy! but how do you feel at the moment? i’m and boy! but how do you feel at the moment? �* ., , and boy! but how do you feel at the moment? �* . , ., , _ moment? i'm a very unhappy conservative. _ moment? i'm a very unhappy conservative. i— moment? i'm a very unhappy conservative. i have - moment? i'm a very unhappy conservative. i have not - moment? i'm a very unhappy conservative. i have not for l moment? i'm a very unhappy - conservative. i have not for some time felt comfortable about the party i naturally and indeed still do support. ifeel very party i naturally and indeed still do support. i feel very alienated from it and i think a vast swathe of natural conservatives do feel rather politically homeless. but, you know, it's not a happy time and our prospects i think will be grim whatever happens. but as a decent conservative, what comes first are the interests of the country. and our reputation for economic competence has been completely annihilated, and we now have to inject confidence and competence into our management of the economy. so the question now is will that happen? i think there is a chance we can certainly stabilise markets and that will depend on who the successor is. it looks as though it

will be someone likejeremy hunt. she will not want to have a shuffle on the back of this. the chemistry and dynamics of having rishi sunak back or nadhim zahawi rright think impossible so it's likely to be someone picked from the backbenches who doesn't then create knock—on effects on ministerial appointments. so my money would be onjeremy hunt, and possibly mel stride who has been and possibly mel stride who has been a very capable chairman of the treasury select committee. the question is will it restore the political fortunes of this government? and i think the answer to that is no. i think the prime minister will remain in dire peril, but we will have to do, i think, pause and take a deep breath and see what happens after the appointment of replacement chancellor this afternoon. of replacement chancellor this afternoon-— of replacement chancellor this afternoon. ,., , ., ., of replacement chancellor this afternoon. , ., ., , afternoon. does it matter what she herself says. _ afternoon. does it matter what she herself says, not _ afternoon. does it matter what she herself says, not just _ afternoon. does it matter what she herself says, not just who - afternoon. does it matter what she herself says, not just who she - afternoon. does it matter what she herself says, notjust who she putsi herself says, notjust who she puts in that job? herself says, notjust who she puts in thatjob? it herself says, not 'ust who she puts in that job?— herself says, not 'ust who she puts in that 'ob? ., , ., ., , in that 'ob? it does matter what she sa s in that job? it does matter what she says because _

in that job? it does matter what she says because i _ in that job? it does matter what she says because i think _ in that job? it does matter what she says because i think the _ in that job? it does matter what she says because i think the real - says because i think the real problem here is that this was not just the problem of the chancellor. it is her economics that have caused this problem and she is going to have to backtrack on just about everything she has been talking about. some people say why can't the conservative party unite? well it is neither wise nor easy to unite around irrational nonsense and the economic policy we have seen over the last couple of weeks has been just that, it has been irrational nonsense. you need to get a greater... you need more discipline in not creating unnecessary expense of extra borrowing at a time of market and fiscal stress, and that is what they have done. they have thrown petrol on the fire unnecessarily, and destroyed their reputation for sound economic management. they have got to re—establish that and it won't be

easy. it does rest heavily on the person who becomes chancellor, but the difficulty remains that the prime minister's own economic analysis was so unconvincing it had i think taking her to the point of being ridiculed and marked. sir alan duncan, being ridiculed and marked. sir alan duncan. thank _ being ridiculed and marked. sir alan duncan, thank you _ being ridiculed and marked. sir alan duncan, thank you for _ being ridiculed and marked. sir alan duncan, thank you for talking - being ridiculed and marked. sir alan duncan, thank you for talking to - being ridiculed and marked. sir alan duncan, thank you for talking to us. | duncan, thank you for talking to us. i want to bring people up—to—date with what the chancellor is saying. this is his letter... dear prime minister, you have asked me to stand aside as your chancellor, i have accepted. it doesn't sound like... the letter adds, when you asked me to serve as your chancellor i did so in full knowledge of the situation we faced was incredibly difficult and rising interest rates and global energy prices. however, your vision of optimism, growth and change was right. as i've said many times in the past weeks, following the status quo was not an option. the economic

environment has changed rapidly since we set out the growth plan on the 23rd of september. in response together with the bank of england and excellent officials at the treasury we have responded to those events and i commend my officials for their dedication. it's important now as we move forward to emphasise your government's commitment to fiscal discipline. 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 determination. i believe your vision is the right one. it's been an honour to serve as your first chancellor. your success is the country's success and i wish you well. that is the scene at downing street now. we are waiting for that news conference to begin in about a0 minutes. let's talk to our political

correspondent leila nathoo in downing street. what do you make of the way the chancellor has characterised his departure from the government?— government? astonishing pace of events here. _ government? astonishing pace of events here, but _ government? astonishing pace of events here, but i _ government? astonishing pace of events here, but i think— government? astonishing pace of events here, but i think very - events here, but i think very interesting statement from the chancellor, first making it clear it was liz truss's idea for him to leave, he didn't resign, she asked him to go from that position so clearly something she thinks is designed to save her position, to shore up her position, both in terms of the financial markets and in terms of her party. i think interesting to see that in his statement he still points to the fact that he believes in the economic vision that was so central to both liz truss and kwasi kwarteng in their roles, that mission of cutting taxes to ensure growth, even though that is widely expected to be reversed in the coming hours or so when liz truss makes an appearance at a press conference here. interesting that he outlines that commitment that he still believes that was the right message and the

right path for the country. but then also talking about the need for the government to restore fiscal discipline. ijust think it is astonishing the pace of events. you heard from kwasi kwarteng last night talking about he was 100% sure he would still be in hisjob, flying back from the states first thing this morning. the message coming out from number ten this morning was that the prime minister and chancellor were in lockstep, and within hours the chancellor was kicked out. this is a precarious moment for liz truss, she has about an hour to come up with a way of presenting her plans and what to do with the policies that have gone down so badly in the financial markets and her party, whether do you turn on those and risk the political humiliation that would bring but also know that it would go some way to restoring economic credibility. we will wait to see what liz truss announces when she appears inside the press conference

in downing street this afternoon. it is brutal, isn't it, losing yourjob as a cabinet minister. he goes out in an official car, but the kind of phalanx of officials running around hanging on your every word, it goes just like that. hanging on your every word, it goes just like that-— just like that. yes, all the trappings _ just like that. yes, all the trappings of _ just like that. yes, all the trappings of one - just like that. yes, all the trappings of one of - just like that. yes, all the trappings of one of the i just like that. yes, all the i trappings of one of the great offices of state will no longer be at the disposal of kwasi kwarteng, but it is worth reflecting on the fact that britain will now have its fourth chancellor in under four months. that doesn't give the message of stability that liz truss is trying to project but i think she has calculated this is one of the ways, the methods that she has at her disposal to try to restore some calm and some credibility. but yes, kwasi kwarteng out of a job and liz truss will need to decide rapidly who replaces him. that in itself will be a decision to keep an eye on, who's your points in terms of

did they have credibility with the markets, and what sort of policies they will agree to preside over. because remember, there are many factions within the conservative party, and one of the main groupings are those of her former leadership rival rishi sunak. and his supporters are very anxious about the economic plans that have been put in place and have been leading the calls for the reversal. so i think liz truss has a big decision to make as to who she puts in charge at number i! to make as to who she puts in charge at number 11 downing st, and in charge at the treasury. but i think it is very risky for her to try to untangle herself, her own fingerprints from the mini budget, and she will be doing her best to do that when she makes the press conference later this afternoon. leila, i know we will talk to you again so if you could stay in downing street that will be very much appreciated. leila nathoo live outside number ten. much appreciated. leila nathoo live outside numberten. i'mjoined now by simonjack, the bbc business

editor. how are the markets are reacting to this news, since they seem to be the course of his defenestration?— seem to be the course of his defenestration? their massive reaction to _ defenestration? their massive reaction to the _ defenestration? their massive reaction to the mini _ defenestration? their massive reaction to the mini budget i defenestration? their massive | reaction to the mini budget has prompted events that have taken such a pace at the moment. weirdly in the market very little movement. usually the sacking of a chancellor is a big market moment, particularly when you are on your fourth won this year. that implies they have priced it in already. i that implies they have priced it in alread . ~ , that implies they have priced it in alread . ~' , ., , already. i think they have focused on the policy. _ already. i think they have focused on the policy, not _ already. i think they have focused on the policy, not the _ already. i think they have focused on the policy, not the person, i already. i think they have focused| on the policy, not the person, and they are encouraged by the persistent rumours that the tax rise from corporation tax from 19 to 25% which was put in place by rishi sunak, that was going to be scrapped by liz truss and kwasi kwarteng. it now looks as if that will proceed. that is a big deal because it was going to raise £17 billion a year, so by scrapping that rise was

effectively a £17 billion tax cut, so it was a big chunk of the unfunded tax cuts which the markets didn't like so much. but here is the problem, there was also an absolutely key plank in the truss progrowth let's get britain growing, let's get businesses investing again. so you can't scrap it and then turn around and say it won't make any difference to growth because that is why it was there in the first place! in terms of the doctrine here, this is a big deal. and also there is an argument that because it is less than half of the unfunded tax cuts, who knows? it might not be enough. the markets at the moment are encouraged that they want to see at some point the debt can come down, and this contribution, if they reverse the corporation tax plans, that will help. but financial markets also like stability and you can hardly say having four chancellors in one year fits that bill. interest rates,

government borrowing rates are still four times as high now as they were a year ago. two thirds of that was probably because of global issues, interest rates have gone up around the world, the federal reserve. band the world, the federal reserve. and that was their _ the world, the federal reserve. and that was their argument, wasn't it, when there was this reaction, to say a lot of this is about global factors beyond our control. band a lot of this is about global factors beyond our control. and that is undeniable, _ factors beyond our control. and that is undeniable, but _ factors beyond our control. and that is undeniable, but the _ factors beyond our control. and that is undeniable, but the mini - factors beyond our control. and that is undeniable, but the mini budgetl is undeniable, but the mini budget added a sour cherry on top which was uk specific and that cannot be denied either. at the moment they are retracing some of that reaction. government borrowing costs are the canary in the coal mine here, the most sensitive thing. it's fallen quarter of 1% this morning. it's about half of 1% from the highs it reached during the turmoil which saw the bank of england have to get involved to stop the panic selling of government bonds. the difficulty are a lot of — of government bonds. the difficulty are a lot of people _ of government bonds. the difficulty are a lot of people in _ of government bonds. the difficulty are a lot of people in the _ of government bonds. the difficulty are a lot of people in the uk i of government bonds. the difficulty are a lot of people in the uk who i are a lot of people in the uk who have been materially affected by

these rises in interest rates, the most recent one came a few weeks ago now, and we have another one... almost certainly they will raise again. almost certainly they will raise a . ain. almost certainly they will raise aaain. ., , , ., , again. the theory is that interest rates won't _ again. the theory is that interest rates won't fall _ again. the theory is that interest rates won't fall back, _ again. the theory is that interest rates won't fall back, they i again. the theory is that interest rates won't fall back, they might | rates won't fall back, they might slow the pace, who knows? but it doesn't necessarily translate into what people are paying if they have a mortgage and own their property support the mortgage. it is a mortgage and own their property support the mortgage.— support the mortgage. it is the bi est support the mortgage. it is the biggest debt — support the mortgage. it is the biggest debt people _ support the mortgage. it is the biggest debt people will i support the mortgage. it is the biggest debt people will have. | support the mortgage. it is the l biggest debt people will have. a year ago, a £200,000 mortgage on a £300,000 house 60% loan to value was around 2%. let save mortgage is 6% now, so you are seeing a tripling of the interest costs on that and that is very prohibitive for people who may be financing now. their fixed deals expire and they have to get a new one over the next 12 months, that will be an awful shock. i think

that will be an awful shock. i think that because the volatility, the lenders are saying i will have to set my mortgage rates higher because i don't know where the market rates will go. so although it may come down from the 6% we have been seeing, higher borrowing costs for businesses, higher mortgage costs for consumers are now very much part of real life. so itjust goes to show, these market fluctuations are not some eccentric stuff that happens on charts and screens. we know because of political history in the last 30 years that tensions between chancellor and prime minister often have direct economic consequences because markets are not blind to that. there is a risk here for the prime minister. if in order to pacify the market she has to appoint somebody who doesn't share her political vision, then there is tension between number ten and number 11, tension between number ten and number11, it tension between number ten and number 11, it could be tension between number ten and number11, it could bejohn tension between number ten and number 11, it could bejohn major and norman lamont all over again after black wednesday. and to go

back further, margaret thatcher and nigel lawson. nigel lawson went in the end but she didn't last much longer afterwards. fir the end but she didn't last much longer afterwards.— the end but she didn't last much longer afterwards. or boris johnson and sa'id longer afterwards. or boris johnson and saiid javid _ longer afterwards. or boris johnson and sajid javid as _ longer afterwards. or boris johnson and sajid javid as well. _ longer afterwards. or boris johnson and sajid javid as well. in _ longer afterwards. or boris johnson and sajid javid as well. in some i and sajid javid as well. in some ways you want a bit of tension between number ten and number 11. number ten wants to do something, number 11 says hang on, i'm not sure we can afford that, it is part and parcel of life. the truss government made a huge deal of the fact they wanted to break away from decades of treasury orthodoxy and come up with a whole new approach. they sacked one of the senior... toms colour, highly respected. they said to the obr we don't want you to mark our homework on this occasion. because they set out in this bold new vision of low taxes and what have you, it will be very difficult to have a school of truss and a non—school of truss living next door to each other. it will be interesting to see

who she can get to do the job because