Kwasi Kwarteng was logical choice as chancellor but hubris was his downfall

Truss ally has experienced a dramatic reversal of fortune after five weeks and three days in the job

When Kwasi Kwarteng became chancellor on 6 September it seemed a logical career progression. Deemed a politician imbued with economic doctrine, even his critics conceded he was determined and intellectually imposing. Five weeks and three days later, he is gone.

The newly restored backbench MP for Spelthorne in Surrey is not the shortest-serving chancellor of modern times, but only because the holder of that unwelcome title, Iain Macleod, died from a heart attack a month into his tenure in 1970.

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Liz Truss appoints Jeremy Hunt as chancellor after sacking Kwarteng

Former foreign secretary and leadership contender is back in cabinet, in stunning reversal of fortune

Jeremy Hunt has been appointed as Liz Truss’s new chancellor, in a stunning reversal of political fortune and a sign that the beleaguered prime minister wants to reach out to other sections of the Conservative party.

Hunt, the former foreign secretary and health secretary, has twice tried unsuccessfully to become Conservative leader.

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‘Lipstick effect’: Britons turn to small luxuries in cost of living crisis

Strong demand for beauty products such as eyeliners and mascaras, as chocolate and coffee also sell well

The shadow cast by the cost of living crisis has spurred a retreat into small luxuries with Britons cheering themselves up with mood boosters such as luxury lip balms and false nails as well as chocolate and coffee.

The lipstick index, coined by Estée Lauder’s Leonard Lauder, is the idea that sales of affordable luxuries rise in economic downturns. This spending behaviour has been true during previous downturns and the same picture is emerging again as consumers battle severe financial headwinds.

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Kwasi Kwarteng says ‘let’s see’ when asked about potential U-turn on corporation tax – UK politics live

Chancellor does not rule out increasing corporation tax when asked about whether government will perform U-turn

The Home Office has taken the modern slavery brief away from the minister responsible for safeguarding and classed it as an “illegal immigration and asylum” issue, updated online ministerial profiles show.

The move is seen as a clear sign that the department is doubling down on Suella Braverman’s suggestion that people are “gaming” the modern slavery system and that victims of the crime are no longer being prioritised.

The largest single group of modern slavery victims under the referral system last year were British children – including those who were exploited through county lines. The evidence shows the majority of exploitation takes place in the UK rather than across borders.

The government should be treating this as an enforcement and safeguarding issue and taking stronger action against the crime of modern slavery wherever it takes place.

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Labour vows to treble solar power use during first term if elected

Ed Miliband criticises Liz Truss’s ‘anti-green-energy dogma’ after plans to ban solar projects revealed

Labour has criticised prime minister Liz Truss’s plan to ban solar power from most of England’s farmland and vowed to treble the renewable energy source in its first term.

Ed Miliband, the shadow climate secretary, will visit a solar farm on Friday. He is to lay out his opposition to plans by Truss and her environment secretary, Ranil Jayawardena, who the Guardian revealed earlier this week are hoping to ban solar from about 41% of the land area of England, or about 58% of agricultural land.

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Liz Truss bows to pressure with corporation tax U-turn ‘on the table’

Speculation that reversal on leadership campaign pledge risks split with her chancellor, Kwasi Kwarteng

Liz Truss has bowed to intense pressure from Conservative MPs and the markets by agreeing to redraw her mini-budget, paving the way for a major U-turn on her signature corporation tax cut.

In another serious blow to her authority as prime minister, government sources told the Guardian that a climbdown on the plan to scrap the rise in corporation tax was now “on the table”.

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Home Office threatens to send heavily pregnant rape survivor to Rwanda

Eritrean woman, 28, in acute distress having spent most of her life in search of safety

A heavily pregnant rape survivor from Eritrea has been threatened with forced removal to Rwanda by the Home Office.

Human rights campaigners say it is the “most egregious” case they have come across so far in the government’s scheme to outsource the processing of UK asylum claims to the east African country.

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Another U-turn looms – how much will it save and what else could the chancellor ditch?

Corporation tax plans likely to be latest to be dropped – bad news for Kwarteng’s credibility, but good for his balance sheet

Liz Truss is on the verge of reversing one of the last major pillars of her chancellor’s disastrous September mini-budget.

While Kwasi Kwarteng mingles with finance ministers at the International Monetary Fund gathering in Washington DC, discussions are taking place in London that would see the promise to freeze corporation tax rates binned. There is also speculation about dropping smaller measures including a more generous tax treatment of share dividends. These U-turns would come hard on the heels of the humiliating climbdown on Kwarteng’s promise to scrap the 45p top rate of tax.

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‘Let’s see’: pressure builds for No 10 U-turn on corporation tax

Reversing key plank of her leadership pitch would be much bigger humiliation for Liz Truss than 45p rate U-turn

The clamour among Conservative MPs for a third U-turn by Liz Truss started the same as the others: one MP begins as an outrider, backed by some party veterans or ex-cabinet ministers, and the question catches alight across broadcasters who ask every MP they see. Soon enough, it is received wisdom.

Most MPs who are squeamish about deposing their third prime minister had hoped that they would see change in the markets and contrition from No 10 and 11 after the U-turn on the 45p rate. Over the course of the past week, it has been clear to them that will not happen.

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First British woman and her child repatriated to UK from Syrian camp

Woman, said to have been trafficked, is only adult allowed back since end of Islamic State ground war

A British woman and her child have been repatriated from a Syrian camp, the first time an adult has been allowed to come back to the UK from detention since the end of the ground war against Islamic State.

The Foreign Office said that British policy to those held in Syria remained unchanged, and that it considered requests for help on “a case by case basis”, but campaigners said it was a significant first step.

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Truss promises to slash EU red tape – what’s the truth behind the rhetoric?

Experts take a forensic look at the PM’s promise to axe to up to 2,400 laws on British statute books

Liz Truss has promised to “consign to history” all EU red tape within the next year, axing to up to 2,400 laws on British statute books.

It was not just party conference rhetoric. Her government is planning to pass legislation to give itself the power to simply switch off 40 years of EU harmonisation legislation at the stroke of midnight 31 December 2023. No list of laws targeted has been published.

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Liz Truss on collision course with Jacob Rees-Mogg over solar power ban

PM wants to prevent panels on 58% of farmland but business secretary says renewables need to be boosted

Liz Truss is facing a rebellion from Jacob Rees-Mogg’s business department over plans to ban solar power from most of England’s farmland.

The prime minister and her environment secretary, Ranil Jayawardena, want to ban solar from about 41% of the land area of England, or about 58% of agricultural land, the Guardian revealed earlier this week.

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Four out of five pupils in England say progress suffered due to Covid

State school pupils twice as likely to feel they have fallen behind than peers in private schools, landmark study finds

Four out of five teenagers say their academic progress has suffered as a result of the pandemic, with state school pupils twice as likely to feel they have fallen behind than their peers in private schools, according to initial findings from a landmark study.

Half of the 16- and 17-year-olds questioned said the Covid disruption had left them less motivated to study, while 45% felt they have not been able to catch up with lost learning.

There was a lot of chaos in my life at the time and then we went into lockdown quite unprepared. There was a lot of confusion about schooling. I didn’t really have access to technology. I didn’t have online lessons, things like that. There was work that went on every week, but I couldn’t access it because I didn’t have the internet. I remember talking to one of my friends and they were like, ‘Oh have you seen the work that’s been put for English’, and I was like, ‘We have work?’

It was only in the September when we came back I finally got more support. I got a laptop and I got better access. A lot of people in my school had issues like me. A lot of people didn’t have technology or they didn’t have structured lessons, so we’ve had a lot to try to catch up on. A lot of the lessons have been quite content-heavy because it felt like we were trying to do two years in one, so that was quite stressful. And I felt like I had to work harder to do my GCSEs. I felt I had to do more to recover to my peers’ level.

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Poorer families risk £1,000 hit from earnings-related benefits rise

Below-inflation rise would save exchequer tenth of £40bn to be given out through tax cuts, says thinktank

If the government raises benefits in line with earnings rather than inflation next year, it would drastically cut the incomes of poorer working-age families, while saving less than a tenth of the cost of recent tax cuts, a leading economic thinktank has calculated.

Such a change, which would mean a significant real-terms cut given that wages are rising at 5.5% with inflation close to 10%, could see the effective income of some families reduced by up to £1,000 a year, the Resolution Foundation said.

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UK’s Brexit divorce bill stood at £36.7bn in 2021, EU audit reveals

Settlement was down from £41.7bn, reflecting payments already made to cover UK obligations

The UK’s Brexit “divorce bill” stood at €41.8bn (£36.7bn) in 2021, according to the EU’s official auditors.

The European court of auditors’ annual report revealed that the UK was expected to make €10.9bn in payments to the EU during 2022.

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No 10 warns of ‘difficult decisions’ on public spending despite Truss’s vow to avoid cuts – UK politics live

Statement from No 10 comes straight after PM told MPs she was ‘absolutely’ committed to avoiding public spending cuts

Sajid Javid, the former Tory chancellor, has been speaking at an event organised by the Legatum Institute thinktank this morning. As Chris Smyth from the Times reports, Javid said the turmoil in the markets was caused by the fact that the tax cuts in the mini-budget went “way beyond” what Liz Truss promised during the leadership campaign, and by the fact that her energy bills bailout was also much bigger than expected.

The government has drawn up a plan to cap the unit cost of gas and electricity for two years. Labour proposed its own plan to freeze energy bills, but it only proposed a commitment for six months.

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Only UK parliament can approve a Scottish independence poll, court told

All four nations would have interest in referendum so Westminster has authority, UK government lawyer tells supreme court

Judges sitting in the UK’s highest court have been told Westminster is the ultimate authority on Scotland’s future because Scottish independence is of “critical importance” to the future of the UK.

Sir James Eadie KC, a senior lawyer acting for the UK government, said the union between Scotland and England was “the constitutional foundation of the modern British state”, and mattered to everyone in the UK.

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Liz Truss insists tax cuts will go ahead despite public spending promise

PM suggests borrowing will rise as she surprises MPs by saying she has no plans to cut public spending

Liz Truss has said the Conservatives will push ahead with tax cuts without cutting public spending, instead allowing borrowing to rise over the next few years.

Senior economists had warned on Wednesday that such a strategy, if set out by Kwasi Kwarteng in the chancellor’s fiscal plan at the end of this month, would be likely to spook investors, creating renewed market turmoil.

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One in five families in Liz Truss’s seat would lose out under real-term benefit cuts

Research from the Joseph Rowntree Foundation shows impact of increasing benefits in line with earnings, not inflation

At least one in five working-age families in most UK constituencies – including in Liz Truss’s seat – would lose out by hundreds of pounds on average if real-terms benefit cuts go ahead, a study has found.

The scale of the impact of a below-inflation rise on already struggling households and by extension, local shops and businesses, is revealed in a study by the Joseph Rowntree Foundation (JRF). It would amount to the biggest-ever real terms cut to benefits in a single year.

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UK trade regulators struggling to cope due to poor Brexit planning, MPs say

Commons committee warns there are still shortages of staff to deal with UK’s new status as a third country

UK regulators are struggling to cope with the post-Brexit trading environment because of “poor preparation and planning”, a House of Commons committee investigation has found.

Almost two years after the UK quit the EU, there are still shortages of vets, toxicologists, lawyers and economists to deal with the UK’s new status as a “third country”, found the public accounts committee report, Regulating After EU Exit.

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