to go 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 said longer afterwards. or boris johnson and sajid 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 - 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 it doesn't look like the most stable government in the world! if you remember when rishi sunak came in, it was dominic cummings who was the chief of staff at the time, it was very clear that the number ten regime was... find it was very clear that the number ten regime was. . ._ it was very clear that the number ten regime was... and that is why sa'id javid ten regime was... and that is why sajid javid quit- — ten regime was... and that is why sajid javid quit. is _ ten regime was... and that is why sajid javid quit. is that _ ten regime was... and that is why sajid javid quit. is that i _ ten regime was... and that is why sajid javid quit. is that i can - ten regime was... and that is why sajid javid quit. is that i can take l sajid javid quit. is that i can take that on the _ sajid javid quit. is that i can take that on the say _ sajid javid quit. is that i can take that on the say what _ sajid javid quit. is that i can take that on the say what a _ sajid javid quit. is that i can take that on the say what a cannon i sajid javid quit. is that i can take l that on the say what a cannon can do. it will be interesting to see what the terms of engagement are. we have a couple of former chancellors, i think rishi sunak is a very unlikely appointment, as they were mortal enemies during the succession race, but sajid javid are still around, is he going to say, i will do this of the country needs me, here's my condition is, i'm in charge, not you? it will be a very interesting conversation. another name is jeremy— interesting conversation. another name is jeremy hunt, _ interesting conversation. another name is jeremy hunt, the - interesting conversation. another name is jeremy hunt, the former| name isjeremy hunt, the former foreign secretary and leadership rival to borisjohnson. you are

watching bbc news, the news from london is that britain's finance minister, kwasi kwarteng, has left the government after less than a month or about a month on the job. hejoined as liz month or about a month on the job. he joined as liz truss became finalist after boris johnson. they shared a finalist after borisjohnson. they shared a joint economic vision, but in the letter which he sent to the prime minister today, having on friday left abruptly from washington late on thursday evening on the last overnight flight out, said, you have asked me to stand aside as your chancellor, i have accepted. when you asked me to serve, i did so in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices. he then goes on to say, as i've said many times in the past weeks, following the status quo simply not an option will stop for

too long this country has been dogged by low growth and high taxation, that must still change if this country is to succeed. the application of that is that it must still change even if he is not there to bring that change about. it is important, he adds, that as we move forward, the government should emphasise its commitment to fiscal discipline. i look forward to supporting you and my successor, to achieve that, from the backbenchers. we have been colleagues and friends for many years, in that time i've seen your vision and determination, and i believe it is the right one. it has been an honour to serve as your first chancellor. your success is this country's success, and i wish you well. this was written inside number ten, or possibly grafted on the plane on the way back, as he may well have known how it was going to go. we are seeing him in the official car, one of the trappings of office that he will

lose later today. they may allow him to keep it if he is trying to have a journalist for a couple of days over the weekend, but effectively it will go out. we understand that a number of moves are now happening in the treasury, his deputy as chief secretary to the treasury, which is also a cabinet minister, chris philp has been replaced. he is replaced by a those will recall the night of the long night, harold macmillan, he sacked third of his cabinet because of the mess the government was getting into, and entire treasury team went, if my memory is right, and a son to be corrected, they went because he was going to get rid of the chancellor, and they felt, look you are abandoning a horrible economic policy, so we'll have to go. the challenge of the prime minister now is that this is a vision she had. it is not like a

bunch of people came along and thought, this will be a great idea, she is believed in the stuff, and written about it long term. she was a critic inside borisjohnson�*s government about the decisions taken by rishi sunak, she has somewhere to communicate that this is a change, but herfundamental communicate that this is a change, but her fundamental principles remain the same. let's talk to our political correspondent in downing street, who can bring us up to date on these moves. two cabinet ministers are both gone after about a month on thejob. we ministers are both gone after about a month on the job.— ministers are both gone after about a month on the job. a month on the 'ob. we haven't had official a month on the job. we haven't had official confirmation _ a month on the job. we haven't had official confirmation of _ a month on the job. we haven't had official confirmation of those - a month on the job. we haven't had official confirmation of those moves yet, but it would make sense if kwasi kwarteng is out of a job, as we do know, he has been sacked by liz truss, making it very clear that he was asked to stand aside. it would make sense that his deputy

also go, so a completely out we are possibly looking at in the treasury. it goes to show that liz truss is determined to send a very clear message that things in the treasury, in number 11 downing st, her next—door neighbour are about to change. trying to reassure her position, the markets, and her own party that she is in control, that she is listening to concerns, and that she is willing to change direction. it is interesting to see kwasi kwarteng still pointing to the fact that he believes in those policies that have caused all the turmoil in the first place, those tax—cutting measures announced in a mini budget. kwasi kwarteng making it clear that he still thought those were the right thing for the country, clearly there is a lot of speculation that liz truss is preparing to roll back completely on those, we will have to wait and see just how far she goes. all the expectations are that she is going to u—turn on the key planks of her budget, and the key planks that she campaigned on to be tory leader. i

think it's going to be very difficult for her to try and disassociate herself from the budget, from those policies, but she clearly hopes that by clearing out the treasury, clearing out the chancellor and getting someone new in place, that she can try and present a fresh start, a clean break from what was before, but i think she will have quite a job convincing her party when she has been so closely identified with those policies. i think she is going to make a huge attempt to try and shore up make a huge attempt to try and shore up her position this afternoon. we should say, as always, it's rather complicated. writers are reporting these changes at government below government in kwasi kwarteng, that they are reporting from the times, and their political editor, who it is fair to say has strong connections in downing street. these have not been confirmed by the bbc, and if you look at the downing

street website, which i've been reading with great interest, the last press relief is dated the 12th of october. i think, probably, last press relief is dated the 12th of october. ithink, probably, we are a bit out of detail and dependent on downing street giving it to us officially, that is fair to say, on previous occasions, a change of this size has required a significant change inside the treasury. i'm joined now by the host of politico's westminster insider podcast, ailbhe rea. what a morning. the thing that eve one what a morning. the thing that everyone is _ what a morning. the thing that everyone is saying _ what a morning. the thing that everyone is saying about - what a morning. the thing that everyone is saying about how l everyone is saying about how difficult it is to distance herself from this budget is true. it is extraordinary sacking kwasi kwarteng and replacing him with someone on the other side of the party. i'm picking up a bit of bewilderment from other people in her cabinet and

those around her that this is obviously something that she has felt she really needs to do to save her skin. felt she really needs to do to save herskin. it felt she really needs to do to save her skin. it doesn't make much sense, what is liz truss without her ideas, what's the point of a liz truss premiership if she is not able to deliver on the thing she has stood for for so long? it is just an amazing unfolding story. stood for for so long? it is 'ust an amazing unfolding story. presumably that question — amazing unfolding story. presumably that question is _ amazing unfolding story. presumably that question is a _ amazing unfolding story. presumably that question is a live _ amazing unfolding story. presumably that question is a live question, - amazing unfolding story. presumably that question is a live question, it. that question is a live question, it is being asked at westminster, it is not within those who have power, it is notjust people like you and me, there is substance. the is notjust people like you and me, there is substance.— is notjust people like you and me, there is substance. the question for eo - le there is substance. the question for peeple wondering — there is substance. the question for people wondering what _ there is substance. the question for people wondering what happens - there is substance. the question for people wondering what happens to l people wondering what happens to their mortgage, well the economy be able to stabilise, and this move primarily is about that, and also saving her premiership. there report is that you mentioned, the political editor of the time is reporting that jeremy hunt will be a replacement

chancellor, that will be moved to buy her a bit of time and stabilise the markets and hopefully push back any attempts by senior conservatives... any attempts by senior conservatives. . .- any attempts by senior conservatives. . . any attempts by senior conservatives... , , conservatives... so, ifjeremy hunt, if he takes — conservatives... so, ifjeremy hunt, if he takes the _ conservatives... so, ifjeremy hunt, if he takes the job, _ conservatives... so, ifjeremy hunt, if he takes the job, will— conservatives... so, ifjeremy hunt, if he takes the job, will he _ conservatives... so, ifjeremy hunt, if he takes the job, will he be - if he takes the job, will he be something of a human shield? plat something of a human shield? not necessarily. _ something of a human shield? iirrt necessarily, it could be the worst of both worlds in a way. his comments in the leadership contest indicate that he is quite instinctively low tax himself. he is not a sure—fire... it is not a guarantee that markets will see him as a safe pair of hands, but equally, he has so far removed from liz truss's flank of the conservative party, and just so differently ideological to her in so many ways, that it removes in a way what she stood for, so it might not necessarily fix the problem. i think

there is a real sense of wondering what this means from liz truss's long longevity. i think we will probably see a u—turn on most if not all of that so—called mini budget, it has been quite a big budget. that might not be enough. you it has been quite a big budget. that might not be enough.— might not be enough. you have mentioned _ might not be enough. you have mentioned the _ might not be enough. you have mentioned the timing, - might not be enough. you have mentioned the timing, we - might not be enough. you have mentioned the timing, we have might not be enough. you have - mentioned the timing, we have had official help confirmation of the downing street press conference, which we had informally expected at two o'clock, we are now expecting it to 30 pm. the bbc�*s political editor, chris mason, if anybody knows what is going on, it is hidden, he is always magnificently well informed on these, he is also somebody who makes phone calls himself rather than relying on other people to tell him to make phone calls, he has been on the phone and has said thatjeremy hunt is not

replying to calls or texts asking the question of whether or not he is going to be chancellor, or has been appointed chancellor. i guess you will read whatever you want to read into that. here are some pictures of mr hunt, who like borisjohnson, his one—time leadership rival, likes to go by bike wherever he possibly can, fair enough, go by bike wherever he possibly can, fairenough, he go by bike wherever he possibly can, fair enough, he is a former health secretary, in fact the longest health secretary britain have ever had. these are what we called library fractures, —— library pictures. when he was interviewed about perhaps being a candidate for the leadership of the party, he ruled himself out. the ad had a bruising battle against boris johnson some years back, and she didn't want to go through that again. does it have to be somebody who is not associated with liz truss

and her vision? who is not associated with liz truss and hervision? is who is not associated with liz truss and her vision? is the nobody among her close allies who would have the kind of heft, politically, lets leave economically aside, but politically within the conservative party to say, that's all right, we could live with that person, we just can't live with kwasi kwarteng? the replacement _ can't live with kwasi kwarteng? tue: replacement chancellor can't live with kwasi kwarteng? tte: replacement chancellor has can't live with kwasi kwarteng? "tt2 replacement chancellor has to can't live with kwasi kwarteng? tt2 replacement chancellor has to do two things, to reassure the markets, but also to unite the party in a way that isn't too undermining of liz truss, which is such a tall order. i suppose there are other options, they would have been seen closer to rishi sunak and jeremy hunt. i think it is balancing those two things, people close to liz truss would say that he make sense as an appointment because he has made positive noises about low taxes in the past. he is also committed to increasing defence spending. there is a way you can

spin it that he is similar to her, but i'm not sure if anyone else would see it that way. one cabinet source describes the appointment to me as unorthodox, but i think is an understatement... laughter i suppose it is quite odd, and it is a sign of how desperate liz truss's situation is, a sign of the market pressure but also her political situation, with senior conservative circling. there were stories last night that potentially rishi sunak and penny mordaunt could team up, and penny mordaunt could team up, and with the backing of over two thirds of the parliamentary party could stick out and tell liz truss that she didn't command the confidence of her party any more, and she needs to go, and one of them as prime minister could replace her. i think that is a really important context, liz truss would normally never have such a close ally, it's really the only option to save her

skin. . ~ really the only option to save her skin. . ,, ,., really the only option to save her skin. . ~' ,. , really the only option to save her skin. . ,, y., , . ., skin. thank you very much, we are caettin skin. thank you very much, we are getting lines _ skin. thank you very much, we are getting lines from _ skin. thank you very much, we are getting lines from downing - skin. thank you very much, we are getting lines from downing street, the prime minister's letter to kwasi kwarteng. it says, deeply the prime minister's letter to kwasi kwarteng. it says, deeply sorry the prime minister's letter to kwasi kwarteng. it says, deeply sorry to lose you from government. you have put the national interest first, which is obviously important. i know you will continue to support myself. she says, to quote, that she can rely on him for his support. they are, of course, very old friends, and she says, complimentary, you have put the national interest first in retiring from the government. she says she is sorry to lose him as chancellor. which is what you might expect in a letter of a formal exchange, what we don't know, of course is the tone of those talks inside downing street, inside number

ten. we understand, we have had confirmation, that this is coming from the vc and westminster, the mr karting—— that kwasi kwarteng's deputy, whether he is still in the cabinet,... there is already cabinet office cabinet minister, but we understand that chris philp could be demoted, but he might not have any role in policy. it is all about the signal to the markets that the people who are at the top of this economic policy are no longer involved with this economic policy. the question is, though, there is a door plate number 10 downing street, and it says first lord of the treasury. in other words, and it says first lord of the treasury. in otherwords, if and it says first lord of the treasury. in other words, if you see that brass plaque, which gets shine to perfection every morning, i've

been there in the very early hours of the morning and have seen the cleaner is doing it, it says first lord of the treasury. in other words, that is the boss. the buck, in harry truman's word stops there. that tension between downing street and the treasury is exemplified in the relationship between the first lord of the treasury and the second lord of the treasury and the second lord of the treasury, in other words the chancellor of the exchequer. we will bring in more than that letter injust a few will bring in more than that letter in just a few moments. let me talk now to the political correspondent at the financial times. alsojoining us as the chief political commentator at times radio. forgive me for giving you hanging around. let's not first of all, if you can, what do you make of this morning's events, and what liz truss has to do this afternoon, as it is here in the uk, to not give the impression that

she is in a panic, and that this has been a panic reaction to events, and that she is not in control of things? tt that she is not in control of thins? . , that she is not in control of thins? ., , that she is not in control of thins? ., i, ., things? it has really been an extraordinary _ things? it has really been an extraordinary day, _ things? it has really been an extraordinary day, and - things? it has really been an extraordinary day, and this l things? it has really been an | extraordinary day, and this is things? it has really been an i extraordinary day, and this is a strategic move on the part of liz truss. she has had all sorts of negative briefings from her backbenchers, we sought the party conference available of weeks ago we had cabinet ministers openly disagreeing with each other, so the sacking of kwasi kwarteng says that her government is enlisting mode, they turned over a new leaf, and they turned over a new leaf, and they are willing to be more flexible and some of her economic ideas. i expect in the press conference that will be within the hour, she will come out, she will try to put forward a strong position, she will try to argue that, yes, there will be some tweaks to her mini budget, but she is still in control, and her government is still on the correct direction. i think will be quite difficult, though, because there's a perception that her government is

really lurching from crisis to crisis, if you think back to yesterday, kwasi kwarteng was interviewed and he was asked, do you think you and liz truss will be in the role in a month's time, and he said absolutely, i am not going anywhere. less than 2a hours later he has been removed from thejob. and if she will try to position it as a changing of a new chapter for the government, but i think there will be a lot of scepticism from the markets and especially from mps. what do you make of the challenges got? what do you make of the challenges not? . ., , ., what do you make of the challenges not? .. , ., got? the challenges got is colossal, and the conundrum _ got? the challenges got is colossal, and the conundrum at _ got? the challenges got is colossal, and the conundrum at the _ got? the challenges got is colossal, and the conundrum at the heart - got? the challenges got is colossal, and the conundrum at the heart of l and the conundrum at the heart of what _ and the conundrum at the heart of what is _ and the conundrum at the heart of what is going to happen next, for me is spelt— what is going to happen next, for me is spelt out— what is going to happen next, for me is spelt out in the letter that she has written to kwasi kwarteng, which is i'm _ has written to kwasi kwarteng, which is i'm very— has written to kwasi kwarteng, which is i'm very sorry to lose you from the government, we share the same vision _ the government, we share the same vision i_ the government, we share the same vision ithink— the government, we share the same vision. i think many people will be asking, _ vision. i think many people will be asking, if— vision. i think many people will be asking, if that is the case, why has she sacked — asking, if that is the case, why has she sacked him? what we will hear from _ she sacked him? what we will hear from her_ she sacked him? what we will hear from her and about 45 minutes' time, we expect, _ from her and about 45 minutes' time, we expect, is— from her and about 45 minutes' time, we expect, is a really big on picking _ we expect, is a really big on picking of— we expect, is a really big on picking of the mini budget there was

only announced three weeks ago. it wasn't _ only announced three weeks ago. it wasn'tiust— only announced three weeks ago. it wasn'tjust the economic only announced three weeks ago. it wasn't just the economic prospectus that the _ wasn't just the economic prospectus that the prime minister and her chancellor set out at the beginning of her_ chancellor set out at the beginning of her administration, this was central— of her administration, this was central to— of her administration, this was central to the platform on which she stood _ central to the platform on which she stood the _ central to the platform on which she stood the summer in the tory leadership contest, that she was going _ leadership contest, that she was going to — leadership contest, that she was going to cut tax for business. if we are going — going to cut tax for business. if we are going to— going to cut tax for business. if we are going to hear, as expected, that she is— are going to hear, as expected, that she is going — are going to hear, as expected, that she is going to implement the increase — she is going to implement the increase in corporation tax after all, increase in corporation tax after all. which — increase in corporation tax after all, which she promised a shell, that was— all, which she promised a shell, that was due to be arise in corporation tax from 19p to 25p, there _ corporation tax from 19p to 25p, there is— corporation tax from 19p to 25p, there is a — corporation tax from 19p to 25p, there is a lot of questions about what _ there is a lot of questions about what does — there is a lot of questions about what does she stand for, presiding over an _ what does she stand for, presiding over an economic vision that is completely different to the one that she promised the party on the fairly limited _ she promised the party on the fairly limited mandate in which she was elected _ limited mandate in which she was elected i— limited mandate in which she was elected. ., , ., elected. i would 'ust read the letter, elected. i would 'ust read the letter. both _ elected. i would 'ust read the letter, both of_ elected. i would just read the letter, both of you _ elected. i would just read the letter, both of you have - elected. i would just read the letter, both of you have seen| elected. i would just read the i letter, both of you have seen it, that i want your reaction to the way she has characterised this. thank you for your letter, this is

directed to deer kwasi, is a long standing colleague we share the same vision for the country and sane commitment to growth. you have been chancellor in extraordinarily challenging times in the face of global headwinds. the energy price guarantee on the energy bill relief scheme, which made up the largest part of the new budget stand as one of the most significant fiscal interventions in modern times. thank you for your intervention, thanks to your intervention, families will be able to better heat their homes this winter. apologies, the print on this printer is not very clear. jobs and livelihoods will be saved. you have cut taxes for working people by legislating this week to scrap the increase in national insurance contribution. this is a slightly

confusing letter, because it appears on downing street notepaper, but at the bottom it says, best wishes, liz truss, but it is written over the printed bit which says the right honourable kwasi kwarteng mp. maybe this has been sent out in haste. you have cut taxes for working people, she says, you have set in train ambitious supply—side reforms that the government will proudly take forward. these include new investment zones to unleash the potential of parts of our country that have been held back for too long, and the removal of eu regulations to help british businesses succeed in the global economy. i deeply respect the steps you taken today, you have put the national interest first. i know you will continue to support the mission that we shared to deliver a low tax, high wage, high growth economy, that will transform the prosperity of our country for generations to come. thank you for your service to this

country, and your huge friendship and support. i have no doubt that you will continue to make a major contribution to public life in the to come. best wishes, liz truss. as i say, signed over the right honourable kwasi kwarteng mp. that is properly a reflection, lucy, of the haste of which these letters have been drafted and exchange? t’m have been drafted and exchange? i'm struck by the tone of liz truss's ietter~ — struck by the tone of liz truss's ietter~ it — struck by the tone of liz truss's letter. it seems very regretful, almost — letter. it seems very regretful, almost on _ letter. it seems very regretful, almost on a mission that her hand has been — almost on a mission that her hand has been forced to do away with her chanceiior— has been forced to do away with her chancellorjust five or six weeks into the — chancellorjust five or six weeks into the start of her premiership. we have — into the start of her premiership. we have it — into the start of her premiership. we have it confirmed that kwasi kwarteng's successor is going to be jeremy— kwarteng's successor is going to be jeremy hunt, someone who is a prudent— jeremy hunt, someone who is a prudent choice from the market's perspective, someone who is experienced, he has held several cabinet _ experienced, he has held several cabinetjobs, he was health

secretary for six years, and then foreign— secretary for six years, and then foreign secretary for a year. any period _ foreign secretary for a year. any period in— foreign secretary for a year. any period in which looks like the global— period in which looks like the global economy is slowing down, and there may— global economy is slowing down, and there may be more of these international finance ministers summits, _ international finance ministers summits, he will be a steadying force _ summits, he will be a steadying force of — summits, he will be a steadying force. of course, he was a big backer— force. of course, he was a big backer of— force. of course, he was a big backer of rishi sunak, and to return slightly— backer of rishi sunak, and to return slightly to _ backer of rishi sunak, and to return slightly to my earlier point, lots of senior— slightly to my earlier point, lots of senior tory mps are scratching their— of senior tory mps are scratching their heads, we still have liz truss in charge _ their heads, we still have liz truss in charge at— their heads, we still have liz truss in charge at implementing what looks like being _ in charge at implementing what looks like being an economic prospectus that is— like being an economic prospectus that is closer to what rishi sunak set out, — that is closer to what rishi sunak set out, and is now going to be backed — set out, and is now going to be backed up— set out, and is now going to be backed up by a chancellor who supported rishi sunak in that contest _ supported rishi sunak in that contest i_ supported rishi sunak in that contest. i think are problems in the party— contest. i think are problems in the party are _ contest. i think are problems in the party are far— contest. i think are problems in the party are far from over. we contest. i think are problems in the party are far from over.— party are far from over. we are ressed party are far from over. we are pressed for _ party are far from over. we are pressed for time, _ party are far from over. we are pressed for time, but - party are far from over. we are pressed for time, but you - party are far from over. we are l pressed for time, but you agreed broadly with what lucy is saying? tt broadly with what lucy is saying? tit quite interesting looking at the turn of the letters, it's quite respectful, there's a sense of regret. we know that liz truss and kwasi kwarteng were on the same page

when it comes to their ambition of the economy, and we do wonder what her relationship would be like with someone likejeremy hunt, who was on the more moderate wing of the conservative party. this is certainly not the end of liz truss's problems, there will be lots of questions among tory mps who even back. us, asking, she came into power on a low tax high—growth vision, and if she is not actually implementing that then what does she stand for, and what is she going to empower? stand for, and what is she going to em ower? . ~ stand for, and what is she going to em ower? ., ~ ,., stand for, and what is she going to emower? ., ~ i., , . empower? thank you both very much for talkin: empower? thank you both very much for talking to — empower? thank you both very much for talking to us. _ let mejust let me just confirm what we have just been saying, which is that it is now been confirmed thatjeremy hunt is the new british chancellor of the exchequer. is that going to steady the ship, do you think,

economically? will that be enough? it is a toughie, what the government is trying to do is it's just trying to give the impression that it is in control. what we have seen over the past few weeks is huge instability, the idea of a risk premium attack to assets, and what she is trying to do is to sayjeremy hunt is in, it is ok now, no need to worry. the danger now is that investor's markets care about the detail, they care about the actual policies being announced. the big problem, the economic problem for the government was that it was both committing to fiscal sustainability, they wanted to get debt as a share of gdp down, and back to looked like it was going to be incompatible with both the extent of tax cuts that they wanted, and the level of spending that the conservative party would support. is this new appointment going to fully

resolve that? i'm not sure. the corporation tax change will get use some of the way, but not all of the way. some of the way, but not all of the wa . . , some of the way, but not all of the wa , ., , ., some of the way, but not all of the wa. ., ., ., way. there was a colossal amount of tax cuts, way. there was a colossal amount of tax cuts. the — way. there was a colossal amount of tax cuts, the question _ way. there was a colossal amount of tax cuts, the question was _ way. there was a colossal amount of tax cuts, the question was about, i tax cuts, the question was about, how are you going to pay for it, another saying actually we are not going to do those tax cuts, the issue still remains, given the inflation, a new promise that you will borrow more, now the borrowing costs have gone up, allegedly precisely because of the budget, the fiscal event that you presented, how are you going to persuade people that actually we now know how to make the numbers add up when we couldn't persuade you before that we knew how to make the numbers add up? if you think about the numbers here, the institute for fiscal studies has put out a figure that the government would have to fill a hole of around £60 million. most of that was these

tax cuts —— £60 billion. there was another hole, the fiscal outlook has deteriorated. there would be other things that they would have to have done even without these tax cuts. next to that 60 billion hole, the corporation tax cuts are worth less than a third, and the question is, you might have reversed those, is the government going to reverse anything else? are they going to try to cut down on public services spending? that looks very difficult given where public services are. either going to try and hold back benefit rates? again, extraordinarily politically difficult. given where liz truss is now in terms of her political credibility with the rest of the party, how much of a mood will there be to get more difficult things through? i'm not sure much of one. thank you very much for that. let me just bring you up to date, if you're

watching bbc news live from london, the british chancellor of the exchequer has left the government after being requested by the prime minister to step down after weeks of turbulence in the markets and controversy of what the government called a fiscal event. mr kwasi kwarteng's mini budget, in which he announced significant tasks cuts, and a promise to come back with more details of how they will come back or neck to be paid for. —— of how they will be paid for. we are learning that chris philp, who was his deputy and the treasury, and also deputy cabinet minister has been moved to anotherjob, and we are awaiting for an official announcement as to who the new chancellor will be. a news conference will take place in number 10 downing street in half an hour's time, do stay with us wherever you are in the uk are around the world

for more alive and breaking events from london and around the world. this is bbc news. britain has a new chancellor. jeremy hunt has been named chancellor of the exchequer after kwasi kwarteng was sacked as chancellor of the exchequer following the unfunded tax cuts in his mini budget three weeks ago which was followed by a turmoil on the financial markets and higher mortgage payments for millions. mr kwarteng cut short a trip to the us to return to london this morning. it's thought prime minister liz truss will announce another

u—turn this afternoon, possibly abandoning plans for lower corporation tax.