Mini-budget 2022: pound crashes as chancellor cuts stamp duty and top rate of income tax – live

Tax cuts to cost Treasury around £37bn in 2023-24, official figures reveal

There are no urgent questions in the morning, and so Kwasi Kwarteng, the chancellor, will be delivering his statement soon after 9.30am.

The Commons starts sitting at 9.30am, but they always begin with prayers in private, and so Kwarteng will be up a few minutes later.

The last time they did it one third of the beneficiaries were people buying second homes or buy to let, so we are sceptical that this is the magic bullet to increase homeownership. What we really need to do is to build more houses and to help get people onto the property ladder by increasing the supply of housing.

When this has been done before, it has often fuelled an already hot market and many of the beneficiaries have been people buying a second or third home, rather than the first time buyers that we really want to help who are often trapped in private rented accommodation where they’re paying as much in rent every month as they would in a mortgage.

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Starmer must not ‘sit back’ if Labour is to win next election, Mandelson says

Former cabinet minister urges Labour leader to be ‘restless for change’ and challenge ‘post-truth’ campaign by Truss government

Liz Truss will mount a “post-truth” campaign presenting the Conservatives as the party of change at the next election, Peter Mandelson has warned, as he called on Keir Starmer not to “sit back” and assume automatic victory.

While Labour has held a steady lead in the opinion polls for nine months, Starmer was urged by the former cabinet minister to “do a better job” of showing voters how the party has evolved under his leadership to cement its chances of entering government.

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Liz Truss could follow Trump and move UK embassy to Jerusalem

PM considering breaking with decades of British foreign policy by relocating UK embassy in Israel

Liz Truss has said she is considering relocating the British embassy in Israel from Tel Aviv to Jerusalem in a controversial move that would break with decades of UK foreign policy in order to follow in the footsteps of Donald Trump.

In a meeting on the sidelines of the UN general assembly in New York, the prime minister told Israel’s caretaker leader, Yair Lapid, about a “review of the current location” of the building, Downing Street said in a statement.

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Striking union members should ‘get back to work’, says Liz Truss

PM maintains pledge to bring in measures limiting industrial action but denies planning to rip up EU rules on workers’ rights

Liz Truss has told striking workers to “get back to work” as she doubled down on her pledge to bring in measures to limit industrial action within weeks of coming to power.

The prime minister suggested that a planned wave of strikes by workers ranging from train drivers to barristers, risked holding the country back during the toughest economic climate in a generation.

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Liz Truss dismisses Putin’s nuclear threats as ‘statement of weakness’

UK PM spurns Russian president’s ‘sabre-rattling’ as she prepares call for democratic renewal in UN address

Liz Truss has dismissed Vladimir Putin’s warning that Russia will use “all the means at our disposal” to protect itself as “sabre-rattling” in advance of her UN speech, where she will warn him: “This will not work.”

The Russian president’s threats in a televised address to the nation appeared to suggest the conflict in Ukraine could spiral into a nuclear crisis, prompting a furious response from world leaders, led by the US president, Joe Biden.

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Liz Truss may face Lords rebellion over Northern Ireland bill

Exclusive: about 50 peers due to meet on Wednesday morning to discuss how to amend or halt proposed legislation

Liz Truss is facing a potential House of Lords rebellion over proposed legislation to rip up part of the Brexit arrangements for Northern Ireland amid concerns that it gives ministers “dictatorial” powers to pen and pass laws without scrutiny.

About 50 Conservative, Labour and cross party peers are due to meet on Wednesday morning to discuss how they can amend or halt the Northern Ireland bill which has already passed through the House of Commons.

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‘Not every measure will be popular’: Truss says voters may not like all her pro-growth measures – UK politics live

Latest updates: prime minister says she is willing to implement unpopular policies to try to boost growth in the UK

Rosie Cooper has indicated that she intends to stand down as Labour MP for West Lancashire to take up a new job as chair of the Mersey Care NHS foundation trust. In her statement announcing the move Cooper says that events in recent years have “undoubtedly taken their toll” – a reference to Cooper being targeted by a neo-Nazi who was jailed for life in 2019 for plotting to kill her.

Cooper’s statement implies she will resign and trigger a byelection. At the last election she had a majority of more than 8,000 over the Conservatives, and in a byelection Labour would be expected to hold the seat very easily.

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Liz Truss meeting with Irish PM raises hopes Brexit talks with EU will resume

British prime minister and Micheál Martin understood to have agreed there is opportunity for reset of relations

Hopes that talks between the UK and the EU will resume over a protracted dispute about the Brexit arrangements in Northern Ireland have risen after a 45-minute meeting between Liz Truss and the Irish prime minister in Downing Street on Sunday morning.

The taoiseach, Micheál Martin, was one of five world leaders to have “leaders’ meetings” with the British prime minister before the Queen’s funeral on Monday, in what was seen by some as a mark of the UK’s determination to reset soured relations with its neighbour.

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Beijing-backed Chinese language schools in UK to be replaced with teachers from Taiwan

MPs in talks with Taiwan to help phase out Confucius Institutes as relations between the countries worsen

A group of cross-party MPs is in talks with Taiwan to provide Mandarin teachers to the UK as the government seeks to phase out Chinese state-linked Confucius Institutes, the Observer has learned.

There are currently 30 branches of the Confucius Institute operating across the UK. Although controversies have existed for many years, they have continued to teach Britons Chinese language, culture and business etiquette. These schools are effectively joint ventures between a host university in Britain, a partner university in China, and the Chinese International Education Foundation (CIEF), a Beijing-based organisation.

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Liz Truss’s first big diplomatic meeting with Biden postponed

Meeting rearranged for Wednesday in New York as Bidens travel to UK for Queen’s funeral

Liz Truss’s planned meeting with Joe Biden in Downing Street, which was to be her first major diplomatic event as prime minister, has been rescheduled for Wednesday at the UN.

Officials from both countries said that a meeting in the margins of the UN general assembly would allow “fuller” bilateral discussion and was not the result of friction. But, whenever the two leaders meet, they face disagreements over Northern Ireland.

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Companies declared insolvent in England and Wales jump by 43%

Businesses may struggle as consumers cut back spending amid high inflation and rising fuel costs, economists warn

The number of companies in England and Wales declared insolvent jumped by 43% in August, according to government data, which adds to concerns for the health of the UK economy.

There were 1,933 insolvencies in August, compared with 1,348 in the same month last year, the Insolvency Service said. It was 42% above the level in August 2019, before the Covid-19 pandemic hit.

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Kwarteng plan to lift cap on bankers’ bonuses infuriates unions

Unite leader deplores prospect of post-Brexit deregulation drive ‘when millions are struggling’

Unions have reacted with fury to the prospect of the government scrapping a cap on bankers’ bonuses, as ministers geared up for a return to near-normal politics next week, topped by an emergency mini-budget on Friday.

Kwasi Kwarteng, the chancellor, who will set out plans for tax cuts and give more details about the government’s plans to limit rising energy bills, is also considering whether to shed the legacy of an EU-wide cap on bonuses of twice an employee’s salary, imposed after the 2008 financial crash.

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Liz Truss faces backlash over plan to lift cap on bankers’ bonuses – UK politics live

Latest updates: Kwasi Kwarteng’s plan to lift cap criticised as ‘very bad timing’ during cost of living crisis

In its response to the legal proceedings launched by the EU over the Northern Ireland protocol (see 11.54am), the UK government has said that it has unilaterally decided to continue suspending border checks on farm produce and other goods entering NI from Great Britain, my colleague Lisa O’Carroll reports.

The European Union is considering its next steps after receiving the UK’s response to legal threats over the failure to comply with the post-Brexit Northern Ireland protocol, PA Media reports. PA says:

Despite politics as normal being paused while the nation mourns the Queen’s death, the government responded to the action ahead of today’s deadline.

The bloc had requested a response to its raft of infringement proceedings over the UK’s failure to comply with the rules before the end of the day.

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British firms warned of delay in energy bills support, reports say

Businesses may have to wait until November, although package could still be activated next month

British businesses have been warned by government officials that they will have to wait longer than households for financial support with their energy bills amid delays in launching the £150bn scheme, according to reports.

Company bosses are increasingly worried about the prospect of delays to the arrival of support because fixed energy contracts come to an end in October for hundreds of thousands of firms.

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Kwarteng ‘tells Treasury to focus entirely on growth’ as Tory peer defends sacking of senior civil servant – as it happened

The new chancellor is reported to have told Treasury staff there was a need to ‘do things differently under fresh leadership’. This live blog is now closed

At the lobby briefing yesterday Downing Street admitted that Liz Truss had not completed her government reshuffle. New appointments were suspended following the death of the Queen.

According to an analysis by Arj Singh for the i, 55 posts remain unfilled. Singh says that, to fill all the posts that Boris Johnson had in his government, Truss will need to appoint 21 junior ministers in the Commons, nine Commons whips and 25 Lords ministers.

The removal of Sir Tom Scholar as the lead permanent secretary at the Treasury should be a cause for celebration.

Having worked in his department for nearly two years I saw at first hand the malign influence of the Treasury orthodoxy at play. Whether it was foot-dragging and passive resistance to creating a Treasury office in the north (in Darlington), which he fiercely resisted, or the botched arrangements in the construction of the bounceback loans during the pandemic, all roads led back to him.

I hope very much that our new prime minister will build on her excellent decision and remove responsibility from the Treasury for driving economic growth. It has no idea how to deliver this. The system obsesses about measuring inputs, counting out the money distributed to departments, but has little clue of how to measure outcomes. Departments are infantilised in their management of money, with savings being automatically clawed back to the centre. This of course removes any incentive to think innovatively, creatively or cost-effectively.

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How is Liz Truss’s government challenging ‘Treasury orthodoxy’?

Sir Tom Scholar’s removal as Treasury’s top mandarin signals attempt to change department’s view of the world

Sir Tom Scholar’s removal as the Treasury’s top mandarin was a brutal statement of intent by Liz Truss’s new government. The message was clear: the days when Britain’s economic strategy would be determined by bean counters were over. From now on, growth rather than balancing the books would be the priority.

That is the theory. In practice, removing what Truss sees as the “dead hand” of Treasury orthodoxy from the running of the economy is likely to prove difficult. The fact that all four deputy governors of the Bank of England are Treasury old boys is an example of its influence on the economic policy-making machinery. There have been attempts in the past to cut Whitehall’s most powerful department down to size. Sooner or later, all have failed.

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Liz Truss under pressure to reveal details of energy crisis plan

Emergency budget of winter tax cuts expected next week once period of national mourning for Queen is over

An emergency budget to bring in winter tax cuts for millions of people and set out more detail on energy handouts is expected late next week once the country emerges from national mourning.

Though politics has been paralysed by the death of the Queen, Liz Truss is under pressure from Tory MPs to set out her plans potentially on Thursday or Friday next week, before the Commons breaks up for party conferences.

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MPs and public gather at St Paul’s for service of thanksgiving for the Queen

Congregation of more than 2,000 people attends cathedral to listen to readings and sing hymns

They listened in silence – some with babes in arms, some in black mourning dress, others in the T-shirts and jeans of daily life – as the voice of King Charles III echoed around St Paul’s Cathedral.

As a service of thanksgiving coincided with the first public address of the new King, it was his words about his “darling mama” that were the focus before anything else at a solemn event which included a lament from a lone Scottish piper and ended with the first singing of God Save the King.

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King Charles to address nation as period of mourning for Queen begins

Prime minister to meet new monarch as floral tributes are placed outside Buckingham Palace and elsewhere

The first full day of the reign of King Charles III has begun, with the new monarch travelling to London to meet the prime minister and prepare for a national address on Friday evening.

After staying at Balmoral overnight, the King will travel with Camilla, now Queen Consort, to the capital.

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White House warns Truss over efforts to ‘undo’ Northern Ireland protocol

Biden administration says undoing the protocol would not be ‘conducive’ to a trade deal between the UK and US

The Biden administration has sent Liz Truss a message on her second day in office warning against “efforts to undo the Northern Ireland protocol”.

The warning came from the lectern in the White House briefing room, where spokesperson Karine Jean-Pierre was asked about new British prime minister Truss’s first phone call with Joe Biden and whether a US-UK trade deal was discussed.

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