this is bbc news. i'm geeta guru—murthy at downing street on the day liz truss says she's "absolutely determined" to remain as prime minister after she sacks her chancellor and announces a u—turn on corporation tax. i have therefore decided to keep the increase in corporation tax that was planned by the previous government. this will raise £18 billion per year. kwasi kwarteng accepts the prime minister's request for him to step aside just weeks into the job, but says he still believes in her vision for the economy. he's replaced byjeremy hunt, former health secretary, former foreign secretary and former leadership contender.

liz truss insists she's the right person to stay in number ten, but labour say the government is in meltdown. well, this is a tory crisis created a downing street but being paid for by ordinary working people. welcome to downing street, where, less than 2a hours after kwasi kwarteng insisted he was 100% safe in his job as chancellor, he has gone — sacked by liz truss after he flew back early from washington for crisis talks. three weeks of turmoil on the financial markets has culminated in the prime minister announcing a second major u—turn on her economic plans for growth —

corporation tax will now rise in april after all. she has sacked the chancellor and named a new one — jeremy hunt — the fourth this year. at a very short press conference this afternoon, liz truss was repeatedly asked about her credibility as prime minister and why she was remaining in the job. let's take a listen to what she had to say. we have seenjeremy hunt come in and out of number ten. that was just after liz truss gave this statement. let's listen to what she had to say. my my conviction to this country needs to go for growth. it is rooted in my personal experience. i know what it's like to grow up somewhere that feeling the benefits of growth. i saw what that meant, and i'm not prepared to accept that for our country. i want a country where people can get good jobs, new

businesses can set up and families can afford an even better life. that's wife from day one, i've been ambitious for growth. since 2008 financial crisis, the potential of this great country has been held back by persistently weak growth. i want to deliver a low tax, high wage, high—growth economy. it's what i was elected by my party to do. that mission remains. people across this country want stability. that's why we acted to support businesses and households with their energy costs this winter. it's also the case that global economic conditions are worsening due to the continuation of putin's appalling war in ukraine, and on top of this, debt wasa war in ukraine, and on top of this, debt was a mass, helping people through the covid pandemic. but it

is clear that parts of our mini budget went farther and faster than markets were expecting, so the way we are delivering are mission right now has to change. we need to act now has to change. we need to act now to reassure the markets of our fiscal discipline. i have therefore decided to keep the increase in corporation tax that was planned by the previous government. this will raise £18 billion per year. it will act as a down payment on our full medium term fiscal plan, which will be accompanied by a forecast by the independent obr. we will do whatever is necessary to ensure debt is falling at a share of the economy in the medium—term. we will control the size of the state to ensure that taxpayers' money is always well spent. we will become more efficient to deliver world—class services for the british people, and spending

will grow less rapidly than previously planned. i met the former chancellor earlier today. i was incredibly sorry to lose him. he is a great friend and he shares my vision to set this country on the path to growth. today, i have asked jeremy hunt to become the new chancellor. he's one of the most experienced and widely respected government ministers and parliamentarians, and he shares my convictions and ambitions for our country. he will deliver the medium—term fiscal plan at the end of this month. he will see through the support we are providing to help families and businesses, including our energy price guarantee that's protecting people from higher energy bills this winter. and he will drive our mission to go for growth, including taking forward the supply—side reforms that our country

needs. we owe it to the next generation to improve our economic performance, to deliver higher wages, newjobs and better public services. and to ease the burden of debt. i have acted decisively today because my priority is ensuring our country's economic stability. as prime minister, i will always act in the national interest. this is always my first consideration. i want to be honest — this is difficult, but we will get through this storm. and we will deliver the strong and sustained growth that can transform the prosperity of our country for generations to come. i'll now take questions. can i start with ben riley smith?— with ben riley smith? prime minister. — with ben riley smith? prime minister, clearly, _ with ben riley smith? prime minister, clearly, a - with ben riley smith? prime minister, clearly, a difficult. with ben riley smith? prime - minister, clearly, a difficult day. can you — minister, clearly, a difficult day. can you explain to the public why you think you should remain as prime minister_ you think you should remain as prime minister given that you've jumped a

key tax _ minister given that you've jumped a key tax cut— minister given that you've jumped a key tax cut that lead you to be elected? — key tax cut that lead you to be elected? �* ., , ,., , elected? i'm absolutely determined to see ou elected? i'm absolutely determined to see you through _ elected? i'm absolutely determined to see you through what _ elected? i'm absolutely determined to see you through what i _ elected? i'm absolutely determined to see you through what i have - to see you through what i have promised, to deliver a higher growth, more prosperous united kingdom, to see us through the storm we face. we've already delivered the energy price guarantee, making sure people aren't facing huge bills this winter. but it was right in the face of the issues that we had that i acted decisively to ensure that we have economic stability. because thatis have economic stability. because that is vitally important to people and businesses right across our country. erm... harry cole. thank ou, country. erm... harry cole. thank you. prime _ country. erm... harry cole. thank you, prime minister. _ country. erm... harry cole. thank you, prime minister. you - country. erm... harry cole. thank you, prime minister. you wanted | country. erm... harry cole. thank. you, prime minister. you wanted to cut the _ you, prime minister. you wanted to cut the 45p— you, prime minister. you wanted to cut the 45p rate. _ you, prime minister. you wanted to cut the 45p rate, you _ you, prime minister. you wanted to cut the 45p rate, you stood - you, prime minister. you wanted to cut the 45p rate, you stood on - you, prime minister. you wanted to cut the 45p rate, you stood on a - cut the 45p rate, you stood on a platform — cut the 45p rate, you stood on a platform to _ cut the 45p rate, you stood on a platform to win _ cut the 45p rate, you stood on a platform to win the _ cut the 45p rate, you stood on a platform to win the leadership l cut the 45p rate, you stood on ai platform to win the leadership of the party— platform to win the leadership of the party on _ platform to win the leadership of the party on a _ platform to win the leadership of the party on a platform - platform to win the leadership of the party on a platform to - platform to win the leadership of

the party on a platform to cut - the party on a platform to cut operation _ the party on a platform to cut operation tax. _ the party on a platform to cut operation tax. you _ the party on a platform to cut operation tax. you and - the party on a platform to cut operation tax. you and the i the party on a platform to cut operation tax. you and the xi operation tax. you and the x chahcellor_ operation tax. you and the x chancellor designed - operation tax. you and the x chancellor designed this - operation tax. you and the x i chancellor designed this budget together— chancellor designed this budget together in_ chancellor designed this budget together in lockstep _ chancellor designed this budget together in lockstep we're - chancellor designed this budget together in lockstep we're told. chancellor designed this budgetl together in lockstep we're told in times— together in lockstep we're told in times in— together in lockstep we're told in times in secret, _ together in lockstep we're told in times in secret, the _ together in lockstep we're told in times in secret, the two - together in lockstep we're told in times in secret, the two of- together in lockstep we're told in times in secret, the two of you. i together in lockstep we're told in l times in secret, the two of you. he has to— times in secret, the two of you. he has to go— times in secret, the two of you. he has to go because _ times in secret, the two of you. he has to go because the _ times in secret, the two of you. he has to go because the fallout - has to go because the fallout for him, _ has to go because the fallout for him. how— has to go because the fallout for him, how come _ has to go because the fallout for him, how come you _ has to go because the fallout for him, how come you get - has to go because the fallout for him, how come you get to - has to go because the fallout forl him, how come you get to stays? has to go because the fallout for- him, how come you get to stays? my rime him, how come you get to stays? prime already is making sure him, how come you get to stays? ii- prime already is making sure we deliver the economic stability that our country needs. that's why i had to state the difficult decisions i've taken today. the mission remains the same. we do need to raise economic growth levels and deliver for people across the country. we're committed to delivering on the energy price guarantee, which people are already seeing in their bills. but ultimately, we also need to make sure that we have economic stability, and i have to act in the national interest as prime minister. erm... chris mason, bbc.—

national interest as prime minister. erm... chris mason, bbc. excuse the bluntness. — erm... chris mason, bbc. excuse the bluntness. but _ erm... chris mason, bbc. excuse the bluntness, but given _ erm... chris mason, bbc. excuse the bluntness, but given everything - erm... chris mason, bbc. excuse the bluntness, but given everything that| bluntness, but given everything that has happened, what credibility do you have — has happened, what credibility do you have to continue government? what _ you have to continue government? what i _ you have to continue government? what i have — you have to continue government? what i have done today is made sure that we have economic stability in this country. jeremy hunt as chancellor is somebody who shares my desire for a high—growth, low tax economy. but we recognise because of current market issues, we have to deliver the mission in a different way. and that's what we are absolutely committed to do — achieving that stability in what is achieving that stability in what is a very difficult time globally. robert prestel. the a very difficult time globally. robert prestel.— a very difficult time globally. robert prestel. the former tory chancellor _ robert prestel. the former tory chancellor just _ robert prestel. the former tory chancellorjust said _ robert prestel. the former tory chancellorjust said you - robert prestel. the former tory chancellorjust said you have i chancellorjust said you have totally — chancellorjust said you have totally trashed _ chancellorjust said you have totally trashed the _ chancellorjust said you have totally trashed the tory - chancellorjust said you have l totally trashed the tory party's

election— totally trashed the tory party's election winning _ totally trashed the tory party's election winning reputation - totally trashed the tory party's election winning reputation forj election winning reputation for economic— election winning reputation for economic competence. - election winning reputation for economic competence. would | election winning reputation for. economic competence. would you apologise — economic competence. would you apologise to — economic competence. would you apologise to your— economic competence. would you apologise to your party? - economic competence. would you apologise to your party?— economic competence. would you apologise to your party? well, i am determined — apologise to your party? well, i am determined to _ apologise to your party? well, i am determined to deliver— apologise to your party? well, i am determined to deliver on _ apologise to your party? well, i am determined to deliver on what - apologise to your party? well, i am determined to deliver on what i - apologise to your party? well, i am determined to deliver on what i set| determined to deliver on what i set out when i campaigned to be party leader. we need to have a high—growth economy, but we have to recognise that we are facing very difficult issues as a country. and it was right in the national interest that i made the decisions i've made today to restore that economic stability so we can deliver, first of all, helping people through this winter and next winter with their energy bills, but also making sure that our country is on the long—term footing for sustainable economic growth. thank you very much, everybody. liz truss taking just four questions

earlier today. liz truss taking just four questions earliertoday. i'mjoined liz truss taking just four questions earlier today. i'm joined today by layla nathoo. we've not had any statement as to what any new economic plan might mean. you imaaine economic plan might mean. you imagine that _ economic plan might mean. i'm, imagine thatjeremy hunt economic plan might mean. i'm, imagine that jeremy hunt will get imagine thatjeremy hunt will get straightaway to embarked on this statement. we've already heard about the major u—turn on corporation tax. clearly, he will be working up other proposals to reassure the markets to try and stabilise the ship and shore up the government's position. he has got his work cut out to make some sort of sense of this messy picture now because the tenets of the government named budget have now been met for the undone and jeremy hunt is brought in fresh to get to grips with this to deliver a message that liz truss is wavering on. can

she last the _ that liz truss is wavering on. can she last the weekend, can she get to the end of the month? there are huge amounts of unhappiness within the party. amounts of unhappiness within the -a . . ., , amounts of unhappiness within the party. almost immediately after that conference, party. almost immediately after that conference. you _ party. almost immediately after that conference, you got _ party. almost immediately after that conference, you got mps _ party. almost immediately after that conference, you got mps saying - party. almost immediately after that conference, you got mps saying that| conference, you got mps saying that was a disaster. there needs to be some sort of conversation about when she should go. someone who is talking about elders going to see her to tell her what's what. but i think the message has been certainly from critics and her party who have been the one who have been pressuring her to change course, they haven't been reassured by what they've seen because kwasi kwarteng hasn't gone far enough to appease them. i think there are definitely still questions that will be sweating. still questions that will be sweating-— still questions that will be sweatinu. . ., . ~ still questions that will be sweatinu. . ., . sweating. leila nathoo, thank you very much- _ sweating. leila nathoo, thank you very much- l'm — sweating. leila nathoo, thank you very much. i'mjoined _ sweating. leila nathoo, thank you very much. i'mjoined by- sweating. leila nathoo, thank you very much. i'mjoined by sir- very much. i'm joined by sir christopher choate who sprung to her

defence earlier this week. do you think she has done enough to sure up her position?— her position? well, i don't know. time will tell. _ her position? well, i don't know. time will tell. i _ her position? well, i don't know. time will tell. i think— her position? well, i don't know. time will tell. i think this - her position? well, i don't know. time will tell. i think this is - her position? well, i don't know. time will tell. i think this is a - time will tell. i think this is a very difficult time for everybody. particularly for those in the conservative party who supported the prime minister, because we believed that she was actually going to reduce taxes and deliver higher growth. and the u—turn on corporation tax, raising corporation tax from 19% to 25% is going to be damaging to the prospects of growth. and it's totally inconsistent with what she put forward when she was seeking election. i supported her for her policies, and i'm now in despair, frankly. i did not believe

that she would be pushed off course by the markets in this way and by my colleagues on the back benches who have never accepted her as the leader of our party. 50. have never accepted her as the leader of our party.— leader of our party. so, do you still sopport — leader of our party. so, do you still support liz _ leader of our party. so, do you still support liz truss? - leader of our party. so, do you still support liz truss? i - leader of our party. so, do you still support liz truss? i do - leader of our party. so, do you | still support liz truss? i do will, and i still support liz truss? i do will, and i think— still support liz truss? i do will, and i think it — still support liz truss? i do will, and i think it would _ still support liz truss? i do will, and i think it would be _ still support liz truss? i do will, j and i think it would be ridiculous to have a further change and prime minister, but it would be ridiculous also not to express my there grave disappointment, because i believe that the better alternative to increase his taxes further would have been to have got much talk of her —— tougher on public spending, which has increased exponentially. the prime minister says she wants to

deal with public expenditure, but i think the strong messages on freezing areas would have been a submission to calm the markets that and ensure that she was true to her beliefs. i don't doubt her sincerity, but i'm very concerned about her lack of resolve. do you have any information _ about her lack of resolve. do you have any information about - about her lack of resolve. do you have any information about what| have any information about what happened with kwasi kwarteng? the letters that were exchange, one implied that he resigned, another implied that he resigned, another implied he was got rid of. i implied that he resigned, another implied he was got rid of.- implied he was got rid of. i don't know anything — implied he was got rid of. i don't know anything about _ implied he was got rid of. i don't know anything about that, - implied he was got rid of. i don't know anything about that, but i know anything about that, but obviously, there's been a mutual agreement between them. they're good friends. it's in the best interest of the country and the party that he should no longer be a chancellor of the exchequer. should no longer be a chancellor of the exchequer-—

the exchequer. given they are so close, the exchequer. given they are so close. and _ the exchequer. given they are so close, and given _ the exchequer. given they are so close, and given she _ the exchequer. given they are so close, and given she has - the exchequer. given they are so close, and given she has now - the exchequer. given they are so - close, and given she has now changed course, surely she cannot remain as prime minister any longer? she course, surely she cannot remain as prime minister any longer?- prime minister any longer? she can remain because _ prime minister any longer? she can remain because she's _ prime minister any longer? she can remain because she's got _ prime minister any longer? she can remain because she's got a - prime minister any longer? she can | remain because she's got a majority of the 71 in parliament, and there's no prospect that she could be pushed back by the primary party. the parliamentary party behaved disgracefully, in my view, in relation to borisjohnson. when he was forced out, i said we would rue the day that he was forced out, and i'm sorry that prediction has come so quickly. but we can't possibly force another prime minister out of office. we'vejust force another prime minister out of office. we've just got to calm down and try and give the prime minister or support. and try and give the prime minister orsupport. but and try and give the prime minister or support. but steer her... the markets don't _ or support. but steer her... the markets don't seem to be giving the prime minister any of support after that press conference. there are still reported lots of concern with

lots of speculation that mps will move against her and change the rules. ~ ., �* , move against her and change the rules. ~ . �* , ._ , rules. well, if that's the way my colleagues _ rules. well, if that's the way my colleagues which _ rules. well, if that's the way my colleagues which to _ rules. well, if that's the way my colleagues which to behave, - rules. well, if that's the way my colleagues which to behave, i i rules. well, if that's the way my i colleagues which to behave, i can't stop them. i think they're like a bunch of hyenas, frankly. it's going to be suicide for the conservative party if we force out another prime minister who is trying to do her best in very difficult circumstances. ., ., , , ., circumstances. what does she have any credibility _ circumstances. what does she have any credibility politically? _ circumstances. what does she have any credibility politically? does - any credibility politically? does she have any credibility to restore the financial stability that is so needed to this country for everyday people worried about their mortgages and day—to—day cost of living? you and day-to-day cost of living? you say people- -- _ and day-to-day cost of living? you say people- -- l— and day—to—day cost of living? i'm. say people... i think what she has donein say people... i think what she has done in relation to putting a cap on the price of energy has been a

fantastic achievement, and i haven't heard anybody who's criticised that. it's given an enormous relief to households and businesses. you draw attention to the rising interest rates, but that's nothing to do with the prime minister. that's to do with the bank of england, which is independent, and interest rates across the world are rising and rising particularly in much faster than they are in the united states, and that is affecting the value of the pound relatively to the dollar. those issues can't be laid at the prime minister's door. she has done really valid, and my view, i dealing with the issue in energy prices —— really well. with the issue in energy prices -- really well-— really well. the head of the imf said the government... - really well. the head of the imf i said the government... promoting urowth said the government... promoting growth and — said the government... promoting growth and keeping _ said the government... promoting growth and keeping prices - said the government... promoting growth and keeping prices low. - said the government... promoting i growth and keeping prices low. head ofthe growth and keeping prices low. head of the imf said — growth and keeping prices low. head of the imf said the _ growth and keeping prices low. head of the imf said the government and the bank have indicated you can't

have the break and the accelerator on at the same time. on the wider political point, if the prime minister is rowing back on what she promised to deliver, surely she can't stay in office. flit promised to deliver, surely she can't stay in office.— promised to deliver, surely she can't stay in office. of course she can't stay in office. of course she can stay in _ can't stay in office. of course she can stay in office _ can't stay in office. of course she can stay in office and _ can stay in office and she's explained it today at the news conference, she's explained her reasoning and said this is an issue of economic stability for the country. obviously, it's important. finally, do you support the appointment ofjeremy hunt? because he comes from a different position within the party. do you give him your support now? within the party. do you give him your sopport now?— within the party. do you give him your support now? obviously, he's been... i support _ your support now? obviously, he's been... i support her— your support now? obviously, he's| been... i support her appointment. it's interesting thatjeremy hunt himself wanted to reduce corporation

tax to 15%. he's on the same side as i am in relation to wanting to reduce the burden on productive sector of our economy so we can grow our economy. {lila sector of our economy so we can grow our economy-— our economy. ok, christopher chope, many thanks — our economy. ok, christopher chope, many thanks indeed _ our economy. ok, christopher chope, many thanks indeed for _ our economy. ok, christopher chope, many thanks indeed for your - our economy. ok, christopher chope, many thanks indeed for your time - many thanks indeed for your time today. i'mjoined by many thanks indeed for your time today. i'm joined by tim vale. sorry, i'm in the rain here. is it possible for the prime minister to remain in office given her credibility? to remain in office given her credibility?— remain in office given her credibility? remain in office given her credibili ? ., , ., , credibility? to be honest, i doubt it. ithink credibility? to be honest, i doubt it. i think her— credibility? to be honest, i doubt it. i think her credibility's - it. i think her credibility's completely sought. you saw that press conference she didn't really dare carry on for more than ten minutes in case she was unable to answer some very difficult questions that journalists were answer some very difficult questions thatjournalists were posing to her.

i think so many of her mps now have seen the opinion polls crashed in the last two weeks. i don't think they can see a way back under liz truss. true, it will be embarrassing and difficult to replace or probably, but i'm not sure now that they have any alternative. and the fact that she has now sacked her chancellor — i don't think there's any doubt that she sacked him — means she no longer has a a human shield. she is left exposed. she might get to the end of the month or christmas, but beyond that, it's very difficult to see. i christmas, but beyond that, it's very difficult to see.— christmas, but beyond that, it's very difficult to see. i 'ust spoke to sir christopher _ very difficult to see. ijust spoke to sir christopher chope - very difficult to see. ijust spoke to sir christopher chope who - very difficult to see. i just spoke l to sir christopher chope who says he's disappointed that she is rolling back. she still has people who support her and is very

difficult to see how the conservative parliamentary party will unite. it conservative parliamentary party will unite. . . conservative parliamentary party willunite. . . v will unite. it is, but it's perfectly _ will unite. it is, but it's perfectly possible - will unite. it is, but it's perfectly possible to i will unite. it is, but it's| perfectly possible to do will unite. it is, but it's. perfectly possible to do if will unite. it is, but it's- perfectly possible to do if there will unite. it is, but it's— perfectly possible to do if there is a will. they could go for some kind of coronation, but that's difficult because there are a number of candidates who would like the job. it's still possible to manage the leadership contest. for example, they could ensure that the nomination threshold is so high that only one of two people could get into the contest in the first place. and they could hope that whoever comes a second would drop out and therefore, the first place candidate would be declared leader and prime minister. i think the main thing is to cut out the membership because what the conservative party cannot possibly do is inflict another 2—stage leadership comes just on the

country. —— contest. particularly one with the confidence of the markets, particularly one who is more confident communicating with liz truss, particularly one who would have more support among mps, thatis would have more support among mps, that is possible for we know the rules are conservatives can stay until the next state of election, potentially two years away. but as the public going to accept another internal change without being consulted this time cool without being consulted this time cool, given the huge economic turmoil? i cool, given the huge economic turmoil? ., �* ~' j ~' turmoil? i don't think they'll like it, but turmoil? i don't think they'll like it. but i'm _ turmoil? i don't think they'll like it, but i'm afraid _ turmoil? i don't think they'll like it, but i'm afraid they'll- turmoil? i don't think they'll like it, but i'm afraid they'll have - turmoil? i don't think they'll like it, but i'm afraid they'll have to l it, but i'm afraid they'll have to accept it. there's not much they can do. i would expect, as most governments do, for them to carry on as long as possible. hoping something will turn out. they are in a huge hole, but were they to ditch liz truss, one could argue they

would have stopped digging and at least made some attempt to climb out of that hole. might not climb out of it completely, but they might get some way, and that might mean that were they to the go down to a defeat, they would stand some chance of getting back in another five or ten years if they carry on with the opinion poll rating them now. to me, that works out. white professor tim vale, thank you that works out. white professor tim vale. thank yo— vale, thank you very much for “oininu vale, thank you very much for joining us- _ vale, thank you very much for joining us. scotland's - vale, thank you very much for joining us. scotland's first - joining us. scotland's first minister has given her reaction to today's developments. i think the only thing tory backbenchers can do now is called time _ backbenchers can do now is called time and — backbenchers can do now is called time and allow people across the uk to have _ time and allow people across the uk to have a _ time and allow people across the uk to have a general election. this is beyond _ to have a general election. this is beyond a — to have a general election. this is beyond a joke, it was never funny. liz truss _ beyond a joke, it was never funny. liz truss has— beyond a joke, it was never funny. liz truss has already crash the economy— liz truss has already crash the economy through her own decision and

heaped _ economy through her own decision and heaped misery on people who are already— heaped misery on people who are already struggling with the cost of living _ already struggling with the cost of living. today, she has forced her chancellor to carry the can for her decisions. — chancellor to carry the can for her decisions, so she had already shown herself— decisions, so she had already shown herself to _ decisions, so she had already shown herself to be completely out of her debt at _ herself to be completely out of her debt at prime minister. as of today, the sooner— debt at prime minister. as of today, the sooner she goes and the sooner people _ the sooner she goes and the sooner people get— the sooner she goes and the sooner people get the chance to get rid of this tory— people get the chance to get rid of this tory government that is doing so much _ this tory government that is doing so much damage once or for all, the better _ so much damage once or for all, the better the — so much damage once or for all, the better. the only way for scotland to permanently get rid of tory governments is through independent. have you _ governments is through independent. have you spoken to the prime minister at all?— have you spoken to the prime minister at all? no, she hasn't -honed minister at all? no, she hasn't phoned me — minister at all? no, she hasn't phoned me as _ minister at all? no, she hasn't phoned me as first _ minister at all? no, she hasn't phoned me as first minister i minister at all? no, she hasn't phoned me as first minister or minister at all? no, she hasn't - phoned me as first minister or matt drake _ phoned me as first minister or matt drake even— phoned me as first minister or matt drake. even on these basic courtesies of government, we are opponents, but we should be working together— opponents, but we should be working together where we can constructively. that's what i have done _ constructively. that's what i have done with— constructively. that's what i have done with liz truss's three predecessors in my time as first minister — predecessors in my time as first minister. she has not shown herself unfit to— minister. she has not shown herself unfit to hold the office of prime minister — unfit to hold the office of prime minister. —— she has shown. a

political— minister. —— she has shown. a political issue would be one thing and all— political issue would be one thing and all we — political issue would be one thing and all we were doing right now is drama. _ and all we were doing right now is drama, that's not a good thing, but it has— drama, that's not a good thing, but it has made — drama, that's not a good thing, but it has made so much more serious right— it has made so much more serious right now— it has made so much more serious right now that the price of liz truss's— right now that the price of liz truss's incompetence and ideological determination to drive through damaging policies, that has been paid lry— damaging policies, that has been paid by people through the length and breadth of the uk, people already struggling with the cost of living _ already struggling with the cost of living crisis and facing soaring mortgage rates. it is unconscionable what in _ mortgage rates. it is unconscionable what injust— mortgage rates. it is unconscionable what injust a month or so in office. — what injust a month or so in office. li2— what injust a month or so in office, liz truss has done to the uk economy into the living standards of people _ economy into the living standards of people in_ economy into the living standards of people in every part. it's time for her to— people in every part. it's time for her to go. — people in every part. it's time for her to go, it's time for this entire uk government to go and for people across— uk government to go and for people across the _ uk government to go and for people across the uk to get the opportunity to have _ across the uk to get the opportunity to have their say in a general election. _ to have their say in a general election. . . to have their say in a general election. , , , ., ., ., to have their say in a general election. ,, , ., ., ., , �*, election. liz truss is adamant she's auoin to election. liz truss is adamant she's going to be — election. liz truss is adamant she's going to be staying. _ election. liz truss is adamant she's going to be staying. this _ election. liz truss is adamant she's going to be staying. this is - going to be staying. this is a government you will have to work with. if she were to pick up the phone, what would your message be?

resigned. beyond that, i am phone, what would your message be? resigned. beyond that, iam not phone, what would your message be? resigned. beyond that, i am not the lflock— resigned. beyond that, i am not the block to— resigned. beyond that, i am not the block to a _ resigned. beyond that, i am not the block to a constructive relationship with the _ block to a constructive relationship with the uk government. you ship obviously with her three predecessors, but i've managed to work— predecessors, but i've managed to work constructively to agree with all of— work constructively to agree with all of them. the fact that that relationship hasn't even got past first base — relationship hasn't even got past first base with liz truss is not down — first base with liz truss is not down to — first base with liz truss is not down to me, nor matt drake for wales. — down to me, nor matt drake for wales. it's _ down to me, nor matt drake for wales. it's down to liz truss being out of— wales. it's down to liz truss being out of her— wales. it's down to liz truss being out of her debt and unfit to hold office _ out of her debt and unfit to hold office of prime minister. we saw boris _ office of prime minister. we saw borisjohnson being unfit for very different— borisjohnson being unfit for very different reasons. liz truss hasn't even _ different reasons. liz truss hasn't even managed to show a basic level of competence in the job. if that wasi'ust— of competence in the job. if that wasi'ust an _ of competence in the job. if that wasjust an abstract of competence in the job. if that was just an abstract problem, that would _ was just an abstract problem, that would he — was just an abstract problem, that would be one thing, but the price of that incompetence is being paid by people _ that incompetence is being paid by people right now and the value of their mortgage repayments going up every month. the cost of living crisis _ every month. the cost of living crisis that _ every month. the cost of living

crisis that people are already struggling with, this can't go on. it's struggling with, this can't go on. it's not _ struggling with, this can't go on. it's not sustainable in the sooner we see _ it's not sustainable in the sooner we see the — it's not sustainable in the sooner we see the back of liz truss and that entire — we see the back of liz truss and that entire government, the better for everybody. that entire government, the better for everybody-— for everybody. nicola sturgeon there. for everybody. nicola sturgeon there- sir _ for everybody. nicola sturgeon there. sir ed _ for everybody. nicola sturgeon there. sir ed davey _ for everybody. nicola sturgeon there. sir ed davey has - for everybody. nicola sturgeon there. sir ed davey has also i for everybody. nicola sturgeon i there. sir ed davey has also been giving his reaction. he says liz truss's policy u—turn is a signal for the general election and he does not believe jeremy for the general election and he does not believejeremy hunt's record as minister makes him a suitable replacement for kwasi kwarteng. liz replacement for kwasi kwarteng. l z truss has trashed the british economy. she's put under the pound on people's mortgages and she's humiliated the conservative government in the eyes of the world. people are angry, they're fed up and worried about the future. above all, they are furious with us conservative party, so i think it's time they have their say. it's time for a general election. look at

jeremy hunt's track record. it's partly because ofjeremy hunt's record as secretary of state for help. when you look at his ideas on the economy, when he had his two bids to be the tory leader, he wanted cuts in corporation tax larger than liz truss. i don't have confidence on either withjeremy confidence on either with jeremy hunt. confidence on either withjeremy hunt. we need a new budget. it's hurting people. they didn't even get the energy support package right for businesses, so i'm afraid this whole policy is wrong. we need to make sure that britain's tax position is credible in the markets so interest rates will go up so high. that's why the democrats were the first party to call for when full tax, so we

have the money to provide the help for people —— windfall tax. sir have the money to provide the help for people -- windfall tax.- for people -- windfall tax. sir ed davey there- _ for people -- windfall tax. sir ed davey there. tom _ for people -- windfall tax. sir ed davey there. tom pope - for people -- windfall tax. sir ed davey there. tom pope as - for people -- windfall tax. sir ed davey there. tom pope as the i for people -- windfall tax. sir ed - davey there. tom pope as the deputy chief economist at the institute for government. ijust want chief economist at the institute for government. i just want to bring everyone some news from the treasury who said in a statement today that they are sticking to the date that kwasi kwarteng had announced. for the government's medium term fiscal plan, jeremy hunt will set that out. halloween. that is two weeks away. is it credible?— is it credible? well, i think, in a wa , 17 is it credible? well, i think, in a way. 17 days _ is it credible? well, i think, in a way. 17 days is _ is it credible? well, i think, in a way, 17 days is not _ is it credible? well, i think, in a way, 17 days is not very - is it credible? well, i think, in a way, 17 days is not very long - is it credible? well, i think, in a way, 17 days is not very long in l way, 17 days is not very long in normal speak for way, 17 days is not very long in normal speakfor a way, 17 days is not very long in normal speak for a chancellor to get into number 11 normal speak for a chancellor to get into number11 and normal speak for a chancellor to get into number 11 and developed the whole fiscal strategy in that time. you are right that 17 days does feel like a very long time in the current climate. what liz truss said today was that her reversal of corporation tax cuts was a down payment on that,

you know, an indication that she was committed to fiscal credibility but it still leaves in place over £20 billion of tax cuts from the 23rd of september statement even when you take into account that and the tax rate rate u—turn. as she implicated in her statement, likely to be made spending cuts —— 40p tax rate. if the spending cuts are likely which will require debt to fall in the medium term. hard to say whether we can wait that long. it feels like quite a long time. the can wait that long. it feels like quite a long time.— quite a long time. the prime minister said _ quite a long time. the prime minister said in _ quite a long time. the prime minister said in the - quite a long time. the prime minister said in the house i quite a long time. the prime minister said in the house ofi minister said in the house of commons they would not be spending cuts. they think people are very concerned about is managing inflation, how high interest rates are going to go up, mortgage rates, all these costs that affect everyday spending. the government has got to get a grip on that and get a clear messages out fast, doesn't that is that it what they have been trying to do for the last month not

particularly successfully. the increases — particularly successfully. the increases in _ particularly successfully. the increases in interest - particularly successfully. the: increases in interest rates are particularly successfully. ii9: increases in interest rates are a combination of global factors that would have happened anyway but there is undoubtedly a uk specific component linked to what the market fears, the in credibility of the government cosmic fiscal strategy. something will need to demonstrate how the remaining tax cuts that liz truss is still planning to push through most prominently the reversal of the health and social care levy is going to be consistent with the debt falling in the medium term. a big challenge will be that if it does require spending cuts, it is not very clear where those spending cuts can come, given that public services are already struggling in the wake of the pandemic. many of them dealing with backlogs due to the interruption in their service during the pandemic and they entered the pandemic, many of them, not in a very strong position as well after ten years of

tight spending assessments. if we were coming to this and we were not in the broader economic position we were in, we would be asking can we find more money for public services rather than taking that money away. tom pope, for now, thank you very much. the treasury saying that jeremy hunt would set out how the garment would get debt falling as a percentage of gdp at the medium term impact statement on halloween. much more from here and downing street in the coming minutes. let's go back to the coming minutes. let's go back to the studio. thank you very much. a chance for her to go and dry off, a dreadful evening and the weather captures something of the spirit in politics at the moment. let's get some labour reaction from the shadow home secretary, yvette cooper. herself a former cabinet minister in the last labour government, thank you for being with us on bbc news. the chancellor has gone, the government has reversed course on the corporation tax rise, it

cancelled the scrapping of the 45p tax band, the highest tax band, 46p as it is in scotland. they have made concessions, you must be pleased by that. ,., :, concessions, you must be pleased by that. ., °°“ce55i°ns. you must be pleased by that. ., ,, that. good afternoon. i think the roblem that. good afternoon. i think the problem is _ that. good afternoon. i think the problem is that _ that. good afternoon. i think the problem is that this _ that. good afternoon. i think the problem is that this is _ that. good afternoon. i think the problem is that this is an - that. good afternoon. i think the i problem is that this is an economic crisis that they created and it's still not over. the damage is still being done by the decisions that the conservative government took. we've still got homeowners who are paying hundreds of pounds extra now on their mortgages as a result of what they did with the run on pension funds, the impact on mortgages and really details of that really disastrous budget. we still think that the budget should be reversed because they need to set out a proper plan. we have to have the proper plan. we have to have the proper independent oversight of the office for budget responsibility. there has to be a properfiscal plan. at the moment, changing the chancellor doesn't solve this. we actually need a change in

government.— actually need a change in covernment. �* ., :, government. but are you not in dancer government. but are you not in danger of — government. but are you not in danger of asking _ government. but are you not in danger of asking for _ government. but are you not in danger of asking for something | government. but are you not in - danger of asking for something that is not deliverable? which is that effectively you are saying, make these changes and do them now, but we know that the process which you're asking for, which involves reference to the office for budget responsibility, something the conservative set up, an independent body to look at this and then go back and say, "your numbers add up, your numbers don't add up, we need to change or not change things", that takes days and weeks. you are putting pressure on them which they can't deliver and that will therefore damage market credibility further, is that really a responsible thing for the government's main opposition party to be doing? you don't want to inherit a mess if you form the next government, do you? but inherit a mess if you form the next government, do you?— government, do you? but this is a crisis of the _ government, do you? but this is a crisis of the government _ government, do you? but this is a crisis of the government cosmic i crisis of the government cosmic making. the idea to pry minister could sack a chancellor for implementing her policies within five weeks of appointing ——

ferment�*s making, the idea of a prime minister. i've never seen anything like this. they caused this impact. we have working people across the country paying the price as a result. it is partly because they didn't take this responsible approach, didn't set out what fiscal rules would be. later�*s approach has a ways been to say you need proper fiscal rules and have principles around sound money. —— labour's approach. ratherthan around sound money. —— labour's approach. rather than this chaotic trickle—down approach, which just says you fund tax cuts for the richest people in the country and hope that is somehow going to trickle down to everybody else. we know that approach doesn't work. they have a failed growth plan as well as a failed responsibility and stability plan. well as a failed responsibility and stability plan-— well as a failed responsibility and stability plan. today is 'ust adding to the caos.h * stability plan. today is 'ust adding to the chaos, it h stability plan. today is 'ust adding to the chaos, it is h stability plan. today is 'ust adding to the chaos, it is not _ stability plan. today isjust adding to the chaos, it is not solving - stability plan. today isjust adding to the chaos, it is not solving it. i to the chaos, it is not solving it. you will know from your long years of experience in departments like work on pension and working under gordon brown and tony blair, that markets depend on credibility. it is notjust markets depend on credibility. it is not just what the government says, it is a sense of political

unification behind the broad ideas, wouldn't it be better for labour to say that we have been very happy with what you presented and we said very publicly that. as a responsible opposition, we will give you the space between now and the announcement on the 31st of october to come up with your plans. if we are not happy then, we will give you right now it is in the public interest for us to give you that space so things can calm down and we can get a currency back where we want it and potentially borrowing costs back where we want it. in fact, labour have been setting costs back where we want it. i�*i fact, labour have been setting out the plan is exactly that would address the kind of challenges we face. it is why we set out plans for the energy price freeze and for a windfall tax. on oil and gas companies. in order to pay for it. it is why we opposed to opposed to cuts to the top rate of tax and fee cuts to the top rate of tax and fee cuts to the top rate of tax and fee cuts to corporation tax for the biggest companies. it is why we said they should be reversing the budget and sticking to fiscal rules and

fitting out their fiscal plan. they should be listening to the office for budget responsibility and publishing transparent plans. all of the things we have called for are all exactly the sorts of things that the government is now trying to be forced into doing partially but only as a last—minute u—turns in a chaotic way. if they really are so incapable of delivering economic stability and long—term plans, they should get out of the way and hand over to other people who can instead. labour has set out proper plans for both growth and economic stability. that is what rachel wreaths and keir starmer has been doing. i wish they would listen to us —— rachel wreaths. we have this chaotic approach after 12 years of conservative government, working people across the country, working people across the country, working people are paying the price. lliful’ith people are paying the price. with the other opposition parties, will you look at the possibility of tabling a motion of no confidence in this government given you believe it

has caused so much damage? i don't have confidence _ has caused so much damage? i don't have confidence in _ has caused so much damage? i don't have confidence in this _ has caused so much damage? i don't have confidence in this government, | have confidence in this government, as you know, they have clearly been chaotic throughout this process. the important thing is we need a proper plan for growth, we have got to have a proper economic stability plan that brings back some proper fiscal rules, a stable approach to the market, the kind of fiscal probity and the kind of sound money approach that labour has been setting out with a long—term plan for growth for a fairer country and a greener country as well.— a fairer country and a greener country as well. a fairer country and a greener count as well. :, :, , country as well. yvette cooper, the shadow health _ country as well. yvette cooper, the shadow health secretary _ country as well. yvette cooper, the shadow health secretary and - shadow health secretary and full—back labour cabinet minister, thank you. i'm joined now by our economics correspondent, dharshini david. is the prime minister said, this was all about the prime minister restoring confidence and credibility in the markets, how confident can they be or does it appear they are now in what they have learnt from the prime minister today? extraordinary day and we have had

many in the last few weeks. we have seen a chancellor making a midnight flit back from the imf in washington only to lose his job. flit back from the imf in washington only to lose hisjob. we have seen flit back from the imf in washington only to lose his job. we have seen a partial reversal of some of the measures in that controversial tax plan and what have we got? the bond markets, which we watched so closely over the past few weeks, the cost of borrowing it up on the day and the pound hasn't been doing any better overall. what on earth is going on? firstly, what we saw today from the prime minister in her eight minute speech was practically what the markets had been led to expect over the last 21i hours, they got the reversal to the changes in corporation tax policy they were expecting, no surprises there. we had some reduction in borrowing costs as a result yesterday in advance of that. ultimately, those concerns which have been worrying the markets for the past few weeks remain. we heard that it is going to be the 31st of october before we get any more answers. in the meantime, what are the questions on markets'

mind? what does it mean for growth? the idea of reducing corporation tax was about hopefully getting more investment in the economy. what does this mean in terms of funding the tax plans? there is still the national insurance changes alone, the other tax changes and that plan for energy bill support, tens of billions of pounds to be funded. on top of that, debt reduction. we had top of that, debt reduction. we had to be prime minister talk yet again about bringing down backstedt but no clear plans. —— we heard today. that is what markets worry about. it is clear plans. -- we heard today. that is what markets worry about.- is what markets worry about. it is a ris bet, is what markets worry about. it is a risky bet. the _ is what markets worry about. it is a risky bet. the uk — is what markets worry about. it is a risky bet, the uk -- _ is what markets worry about. it is a risky bet, the uk -- bringing - is what markets worry about. it is a risky bet, the uk -- bringing down | risky bet, the uk —— bringing down debt. that would suggest that if he prime minister's moves have not been enough to generate some kind of positive sense in the markets, if you can say at the best, they have sat on their hands and reserved judgment, she hasn't been able to do it but somebody has to do it, is there another intervention from

jeremy hunt? we don't yet know. that is it down to him to try and do what the last chancellor couldn't do and apparently the prime minister cannot. . . apparently the prime minister cannot. ., cannot. there was a time when you not cannot. there was a time when you got handed — cannot. there was a time when you got handed the _ cannot. there was a time when you got handed the keys _ cannot. there was a time when you got handed the keys to _ cannot. there was a time when you got handed the keys to number- cannot. there was a time when you got handed the keys to number 11, | got handed the keys to number 11, one of the most powerful offices in the country and had control of the public coffers but now you have the responsibility as well. a reminder over the last few weeks that you need to restore credibility. every word he utters will be carefully scrutinised in the coming weeks. it is more than that. it is all about what the office for budget responsibility think of the government's plans. ultimately, until we see their money, so to speak, the numbers around these spreadsheets and be rubber stamping, the markets are not going to have much confidence at all. those markets in the meantime because of the remaining volatility and the way borrowing rates are, if you are taking out a mortgage right now, you are looking at rates more than double what they were at the end of last year and looking at the highest rates since the financial crisis. economists are still saying we are looking at a recession over the next

year. looking at a recession over the next ear. . ~' looking at a recession over the next ear. . ~ , :, looking at a recession over the next ear. . ~ i. ., , , year. thank you. it raises the olitical year. thank you. it raises the political challenge now - year. thank you. it raises the political challenge now for i year. thank you. it raises the | political challenge now for the prime minister. remember what was said to you by somebody who was a supporter of liz truss, chris pope telling you i didn't doubt her sincerity but i am concerned about her lack of resolve. her supporters are weakening, interesting to see if any of those previously opposed to her leadership now rowing behind her. . , . her leadership now rowing behind her. :, , : �* , her. thanks very much. let's get more on the _ her. thanks very much. let's get more on the conservative - her. thanks very much. let's get l more on the conservative reaction her. thanks very much. let's get - more on the conservative reaction to today. leila with us. you only have to look on twitter and read what everyone is saying, political correspondence from all different factions to know that the tories are very split and they don't know whether liz truss will be able to remain in downing

street or who would replace if they move against her.— street or who would replace if they move against her. today was designed to t move against her. today was designed tot to move against her. today was designed to try to win — move against her. today was designed to try to win over— move against her. today was designed to try to win over some _ move against her. today was designed to try to win over some of _ move against her. today was designed to try to win over some of those - to try to win over some of those people — to try to win over some of those people in— to try to win over some of those people in her party deeply unhappy about— people in her party deeply unhappy about what has happened. firing her closest _ about what has happened. firing her closest political ally, her chancellor you turning on a key plank— chancellor you turning on a key plank of— chancellor you turning on a key plank of the budget and then delivering a press conference to say i -et delivering a press conference to say i get it. _ delivering a press conference to say i get it. i_ delivering a press conference to say i get it, i listened, i changed my mind. _ i get it, i listened, i changed my mind. that — i get it, i listened, i changed my mind, that was designed to win over her critics. _ mind, that was designed to win over her critics. if— mind, that was designed to win over her critics. if anything, they have been _ her critics. if anything, they have been made — her critics. if anything, they have been made more unhappy. she hasn't won over— been made more unhappy. she hasn't won over those people already critical — won over those people already critical of — won over those people already critical of her, she seems to be alienating — critical of her, she seems to be alienating some of her supporters in terms _ alienating some of her supporters in terms of how she handled the situation _ terms of how she handled the situation and reversing the tax cuts that some — situation and reversing the tax cuts that some of her supporters actually wanted _ that some of her supporters actually wanted to— that some of her supporters actually wanted to see unfermented. she finds herself— wanted to see unfermented. she finds herself in_ wanted to see unfermented. she finds herself in a _ wanted to see unfermented. she finds herself in a worse position at the end of— herself in a worse position at the end of the — herself in a worse position at the end of the day that she was at the start— end of the day that she was at the start of— end of the day that she was at the start of the — end of the day that she was at the start of the day, unable to answer the question about why she fired her charrcellor— the question about why she fired her chancellor and why she should stay in post. _ chancellor and why she should stay in post. given they were delivering the same — in post. given they were delivering the same economic vision which has had to— the same economic vision which has had to be _ the same economic vision which has had to be reversed. she finds herself— had to be reversed. she finds herself basically in an extremely position— herself basically in an extremely position boxed in position. there is no clear— position boxed in position. there is no clear picture as yet emerging of what _ no clear picture as yet emerging of what the _ no clear picture as yet emerging of what the next step should be. there

is talk _ what the next step should be. there is talk of _ what the next step should be. there is talk of people going to her to tell her— is talk of people going to her to tell her like it is to say she needs to stand — tell her like it is to say she needs to stand down. people are questioning her leadership, of course. — questioning her leadership, of course, those conversations have been _ course, those conversations have been going — course, those conversations have been going on all week and they will intensify— been going on all week and they will ihtehsify in — been going on all week and they will intensify in the aftermath of this press _ intensify in the aftermath of this press conference. who intensify in the aftermath of this press conference.— intensify in the aftermath of this press conference. who is doing the manoeuvring? _ press conference. who is doing the manoeuvring? people _ press conference. who is doing the manoeuvring? people like - press conference. who is doing the manoeuvring? people like michael| manoeuvring? people like michael grove, grant shapps. —— michael gove. grove, grant shapps. -- michael gove. , ' :, , , gove. different groupings within the -a . son gove. different groupings within the party. sony different _ party. sony different administrations in recent political history— administrations in recent political history there are lots of former cabinet — history there are lots of former cabinet ministers on the backbenches. conversations on going across _ backbenches. conversations on going across the _ backbenches. conversations on going across the party and different groupings about liz truss's future under— groupings about liz truss's future under various different intakes of mps and — under various different intakes of mps and older, more experienced mps, too. it— mps and older, more experienced mps, too. it doesn't seem like there is one group— too. it doesn't seem like there is one group at the moment trying to move _ one group at the moment trying to move against her, it seems too soon to be _ move against her, it seems too soon to be saying — move against her, it seems too soon to be saying that the rumblings of discontent that we heard in public this week— discontent that we heard in public this week a lot in private, too, they— this week a lot in private, too, they are — this week a lot in private, too, they are intensifying as a result of what _ they are intensifying as a result of what they—

they are intensifying as a result of what they heard today. leila nathoo, thanks. torsten bell, from the think tank the resolution foundation,