Kwasi Kwarteng reportedly believes Liz Truss ‘only has a few weeks’ – as it happened

Source close to sacked chancellor briefs Times that ‘wagons are still going to circle’ around embattled prime minsiter

The Conservative peer, Ed Vaizey, said he disagreed with the international trade secretary, Greg Hands, who earlier said Kwasi Kwarteng’s early return is not unusual. “It is quite unusual for this to happen,” he said.

Speaking to Sky News, Vaizey said the chancellor cutting his trip to the US short is “not a good sign”. He said:

I’m afraid the chancellor coming back a day early doesn’t fill one with confidence.

The fact that people were speculating about the prime minister’s leadership this early in her premiership is not ideal, but I think he’s just got to bite the bullet. He’s got to try to give the markets confidence in the British economy.

If he can do that then perhaps he can say: ‘Well, I had to do some difficult choices, slightly humiliating choices, but the result is stabilisation and I can move forward.’

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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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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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Starmer’s chief of staff to leave job as Labour leader unveils major party shake-up – UK politics live

Latest updates: Labour leader hoping to put party on war footing ahead of next election

In the supreme court Dorothy Bain KC, the lord advocate, the Scottish government’s most senior law officer, is now setting out her case.

Here is the 50-page submission to the court setting our her case that was released in July.

Despite the political context of this reference, the questions the court has to decide are limited to technical questions of law. The court will decide them by applying legal principles.

The court will require time after the hearing to prepare its judgement. The hearing is the tip of the iceberg. We also have more than 8000 pages of written material to consider.

Therefore, as usual, is likely to be some months before we get our judgement.

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Pret a Manger raises pay for second time in a year amid staff shortages

Sandwich shop chain to increase pay by 5% for most cafe workers, with higher rates for baristas

Pret a Manger is investing £10m in raising pay, announcing its third rise in 13 months to a minimum of £10.30 an hour, as hospitality and retail businesses compete to attract workers during the busy run-up to Christmas.

The sandwich shop chain, which has more than 400 outlets in the UK, said it was increasing pay by 5% or 50p an hour for most cafe workers from 1 December. Pay for skilled baristas, who are particularly in short supply, will rise from a minimum of £10.30 to £10.85 – an extra 5p.

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Rise in UK borrowers falling behind on mortgage payments, says Santander

Boss says bank is putting aside more money for potential defaults linked to cost of living crisis

The boss of Santander UK says the bank is putting aside more money for potential defaults linked to the cost of living crisis after seeing a pickup in customers falling behind on mortgage and loan payments.

Mike Regnier told the Guardian that he was keeping a close eye on the “strain and pressure” facing customers as a result of the cost of living crisis, which has made it harder for some households to keep up with rising food and energy bills and financial commitments such as home loans.

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Thousands of salaried Tesco workers forced to take real-terms pay cut

A 3% pay rise for team managers amid 10% inflation comes after a string of wage rises for hourly staff

Thousands of Tesco staff have been forced to take a large real-terms pay cut as the supermarket puts a squeeze on store managers while offering bigger wage rises for lower-paid workers.

In the latest pay battle amid the cost of living crisis, the retailer’s team managers, who earn about £30,000 a year, say they have received as little as a 3% pay rise. The official rate of inflation is close to 10%, and expected to hit 11% this month.

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Liz Truss on verge of major U-turn on real-terms benefits cut

Exclusive: Tory MPs warn PM she would lose vote on increasing benefits only in line with earnings rather than inflation

Liz Truss is teetering on the edge of performing another big U-turn as Tory MPs warned she would lose a vote on delivering a real-terms cut to benefits while new research showed the move could push an extra 450,000 people into poverty.

Despite desperate pleas for party unity from senior ministers after weeks of bitter infighting, the row over welfare threatened to overshadow the prime minister’s attempt to reassert her authority when the Commons returns from recess on Tuesday.

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Older people at risk from overcharging and mis-selling ‘scandal’

Unnecessary policies and overpayments for services are draining the accounts of vulnerable customers

Elderly and vulnerable customers are being routinely overcharged by utility and insurance firms in a hidden scandal highlighted today by one of the country’s senior financial services executives. Unfair practices are putting them at risk of being unable to afford food and heating, he warns.

Michael Donald, a former director of Visa UK, said he was staggered to discover hundreds of pounds of overcharging when he carefully checked the direct debits on his 79-year-old mother’s accounts.

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Teaching assistants quitting schools for supermarkets because of ‘joke’ wages

Headteachers fear impact on children of unfilled vacancies as support staff say rising bills force them to leave jobs in education

Headteachers across the country say they cannot fill vital teaching assistant vacancies and that support staff are taking second jobs in supermarkets to survive because their wages are “just a joke”.

Schools are reporting that increasing numbers of teaching assistants are leaving because they will not be able to pay for high energy bills and afford food this winter. And with job ads often attracting no applications at all, heads fear they will be impossible to replace. They warn this will have a serious impact on children in the classroom, especially those with special educational needs, and will make it increasingly hard for teachers to focus on teaching.

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Liz Truss meets European leaders in Prague as Irish deputy PM says NI protocol ‘a little too strict’ – as it happened

This live blog has now closed, you can find our latest political coverage here

In his interview with LBC Jake Berry, the Tory chairman, was asked if he was channelling When Harry Met Sally when he described Liz Truss as the “Yes, yes, yes prime minister” in his speech to the conference yesterday. (Robert Hutton is very funny about this, and much else, in his sketch for the Critic.) Berry said he was referring to Yes, Minister and Yes, Prime Minister when he delivered that line.

In the same interview, Berry revealed that his joke-making has not improved since yesterday. Talking about the conference in general, Berry said:

I think colleagues saw yesterday that when the going gets tough, the Truss gets going.

I do think my language was a bit clumsy in that regard and I regret it.

The point I was making ... is that the government needs to go for growth to ensure that it can grow the economy and Britain can get a pay rise. You don’t have to tell me how hard people graft in this economy. I know how hard people work.

We’ve got to wait until those figures are available … You simply cannot make a decision on figures you do not currently have.

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Tesco warns of cost inflation as it raises pay for third time in 13 months

Supermarket aims to make £500m of savings but will freeze prices on more than 1,000 products until 2023

Tesco has warned annual profits will be at the lower end of its hopes as it faces significant cost inflation, revealing it has raised pay for a third time in 13 months.

The UK’s biggest retailer said it was aiming to make £500m of savings this year to offset its higher costs, including more automated tills, but was uncertain how shoppers would behave in the run-up to Christmas.

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Kwasi Kwarteng set to address Tory conference with authority on the line after 45% tax rate U-turn – UK politics live

Chancellor expected to give changed address after confirming plan to axe top rate of income tax has been scrapped

Q: Where does this leave your credibility?

Kwarteng says he has been in parliament for 12 years. He says ministers do sometimes change their minds.

I decided, along with the the prime minister, not to proceed [with the policy].

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Michael Gove says Liz Truss’s tax cut plans ‘not Conservative’

Influential former minister hints he will not vote for mini-budget measures, in blow to PM

Michael Gove said Liz Truss’s programme of tax cuts was deeply concerning and “not Conservative”, and hinted he would not vote for them, in a major blow to the prime minister’s authority.

Gove, who was removed as levelling up secretary before Boris Johnson left No 10 but remains a hugely influential Tory MP, said he could not back Truss’s abolition of the top 45p rate of tax, or the removal of the cap on bankers’ bonuses.

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Liz Truss admits she should have ‘laid ground better’ before mini-budget and says cabinet not consulted about 45% top rate tax cut – live

Latest updates: PM vows to press ahead with mini-budget plans and dismisses objections to top rate of tax being axed

Q: Are you absolutely committed to getting rid of the 45% rate of tax?

Yes, says Truss.

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Just Stop Oil activists blockade four London bridges

Climate and cost of living campaigners converged in London protests

Thousands of supporters of Just Stop Oil have blocked four bridges across the Thames.

Protesters blocked Waterloo Bridge, Westminster Bridge, Lambeth Bridge and Vauxhall Bridge with sit-down protests after marching from 25 points around the centre of London.

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Currys raises pay for third time in 13 months amid staff shortage

Electrical goods retailer keen to attract and retain workers as cost of living increases

Currys has raised pay for the third time in 13 months to attract and retain workers amid a labour shortage and rise in the cost of living.

The electrical goods retailer said that from 30 October it was increasing rates by 3.5% to a minimum of £10.35 an hour (£11.43 in London), only a month after a previous rise came into effect.

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Truss ‘standing by Kwarteng’ as Treasury defends plans despite market turmoil – as it happened

No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed

Q: When would you get debt falling as a proprotion of GDP?

Starmer says Labour does want to get that down.

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Keir Starmer promises to launch publicly-owned UK energy company as he hails ‘Labour moment’ – UK politics live

Latest updates: the Labour party leader used his conference speech to spell out his plan for the UK

The decision to pay Liz Truss’s new chief of staff, Mark Fullbrook, through a private company has been dropped after criticism from within the Conservatives as well as from opposition parties.

The government admitted over the weekend that Fullbrook would be paid through his lobbying firm, a move that could have helped him avoid paying tax. He had previously claimed the firm had stopped all commercial activities.

The world we are heading for is a bumpy few weeks. The chancellor is now going to have quite a tough time because he has now set out plans to balance the books in November. That is going to be very hard.

Actually balancing the books in November is going to be harder than it would have been to show you are balancing the books last week because higher interest rates will make it harder to do. You might need £15bn worth of tough choices now that you didn’t need last Friday.

In the end, lower taxes will mean worse public services, or other people’s taxes having to go up, and it is those choices and ducking those choices that markets are looking at and saying that is not what serious policymaking looks like.

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Labour delegates urged to back PR to end ‘trickle-down democracy’ – UK politics live

Latest updates: Labour delegate says current electoral system allows Tories to get away with measures like ‘protecting bankers’ bonuses’

In June, as the RMT union launched what has become an ongoing series of strikes, Keir Starmer ordered Labour frontbenchers and shadow ministerial aides not to join picket lines. This infuriated leftwing Labour MPs and some union leaders, notably Sharon Graham, the general secretary of Unite.

At one point it looked as if there might be a huge row at conference about whether shadow ministers should or should not be allowed to join picket lines. But, in an interview with the Today programme this morning, Graham suggested that a truce of sorts has been agreed – even if the two sides do not entirely see eye to eye.

My issue about this … isn’t necessarily around one person on a picket line because, quite frankly, that isn’t the issue. The issue is the mood music [ordering shadow ministers not to join picket lines] suggests. It suggests a mood music that being on the picket line is somehow a bad thing. It’s a naughty step situation.

The party who is there to stick up for workers should not give the impression – that’s the problem, it gives the impression – that they are saying picket lines are not the place to be. And I think that it was unfortunate. I think it was a mistake. I think, to be honest with you, Labour knows it was a mistake. And I don’t actually think it’s holdable.

When people go on strike it is a last resort at the end of negotiations. And I can quite understand how people are driven to that … I support the right of individuals to go on strike, I support the trade unions doing the job that they are doing in representing their members.

I’m incredibly disappointed that as delegates we’ve been excluded from this key part of the conference’s democratic process.

This is an unprecedented move silencing members’ voices. Our CLP sent us here to Liverpool to promote our motion on public ownership and a Green New Deal, but we’ve been unfairly denied that right.

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