Pound news – live: Punish Truss for market turmoil, says Labour as Bank vows action

Labour has urged voters to punish Liz Truss for the sterling crisis sparked by her chancellor Kwasi Kwarteng’s mini-Budget last week.

“Don’t forget. Don’t forgive. The only way forward is to stop this – with a Labour government,” party leader Keir Starmer said.

The historic slump in the pound’s value will likely “require a significant monetary policy response”, the Bank of England’s chief economist has said, as he sought to reassure markets spooked by the government’s plan to slash taxes and increase borrowing.

The Bank warned on Monday that interest rates could be hiked “by as much as needed” to control inflation, as mortgage lenders temporarily withdrew deals for new customers and traders banked on rates hitting nearly 6 per cent next year, sparking some fears of a future housing crash.

However, Mr Kwarteng insisted during a meeting with City bosses on Tuesday that he was “confident” in his economic plan, telling them during a meeting on financial deregulation: “Our approach will work.”

Key Points

• ‘Don’t forget, don’t forgive’: Starmer urges voters to punish Truss for financial mayhem

• Pound slump will require ‘significant response’, top Bank of England official says

• Chancellor Kwasi Karteng doubles down on economic strategy

• Liz Truss has ‘lost control of economy’, says Labour

• Pound steadies slightly on Tuesday

• Kwasi Kwarteng’s mini-Budget ‘deeply damaged’ Tory election chances, MPs warn

• Lenders temporarily pull mortgages from sale

Lenders pull mortgages from sale amid market volatility after pound plunges

04:57 , Maroosha Muzaffar

Three lenders have temporarily pulled mortgages that come with fees for new customers in response to market volatility prompted by the fall of the pound.

Halifax, Britain’s largest mortgage lender, is to withdraw the products until it works out what interest rates to charge, according to the Reuters news agency.

Virgin Money and Skipton have reportedly followed Halifax’s move.

Read the full story here:

Lenders pull mortgages from sale amid market volatility after pound plunges

Kwasi Kwarteng to reveal new fiscal rules in November amid market panic

05:10 , Maroosha Muzaffar

Chancellor Kwasi Kwarteng is to reveal the government’s “fiscal plan” on 23 November, the Treasury has said amid market panic over borrowing-fuelled tax cut spree.

The government said the statement would include details on the new approach to borrowing, spending and tax-raising rules, including a pledge to ensure debt falls as a share of GDP in the “medium term”.

Read the full story by Adam Forrest here:

Kwasi Kwarteng to reveal new fiscal rules in November amid market panic

How will the plunge of the pound affect the cost of living crisis?

05:20 , Maroosha Muzaffar

The aftermath of Kwasi Kwarteng‘s tax-slashing economic plan revelation has seen the pound sterling plummeting in value, reaching an all-time low against the US dollar.

In light of this, those already struggling to make ends meet amid a cost of living crisis will all be asking the same question - what does this mean for my pocket?

Watch the video that explains how this could impact households here:

How will the plunge of the pound affect the cost of living crisis?

Pound edges higher in Asian trading

05:30 , Maroosha Muzaffar

The British pound rose today in Asian trading after hitting a record low against the dollar, the Financial Times reported.

The report said that the pound sterling was up 0.9 per cent in morning trading at $1.0776, just a day after an early morning fall sent the currency tumbling almost 5 per cent to a record low of $1.035.

Bank of England forced to intervene as pound crashes to all-time low after ‘disastrous’ mini-Budget

05:40 , Maroosha Muzaffar

The Bank of England was forced into an emergency intervention on Monday, warning that it would not hesitate to hike interest rates “as much as needed” after the pound plummeted in the wake of Kwasi Kwarteng’s mini-Budget.

Sterling fell to its lowest ever level against the US dollar, dropping by more than 4 per cent to just $1.03 before regaining some ground.

Read the full story by Rob Merrick and Adam Forrest here:

Bank of England says it will raise rates ‘as much as needed’ after rout on pound

ICYMI: Shadow chancellor ‘very concerned’ by fall of pound following mini-budget

05:50 , Maroosha Muzaffar

Rachel Reeves says she is “very concerned” about the fall of the pound following the announcement of Kwasi Kwarteng’s mini-budget, warning it will worsen the cost of living crisis.

Watch the video here:

Pound Sterling: Shadow chancellor calls currency fall ‘very concerning’

Starmer takes aim at Tories as Labour buoyed by promising poll

06:00 , Maroosha Muzaffar

Sir Keir Starmer will be buoyed by promising polling for Labour as he accuses the Tories of losing control of the economy and vows to get the UK “out of this endless cycle of crisis”.

He will quote Sir Tony Blair to dub Labour the “political wing of the British people”, as a new YouGov survey suggests the party has opened up a 17-point lead over the Conservatives – the greatest since the firm began polling in 2001.

Read the full story by Amy Gibbons here:

Starmer takes aim at Tories as Labour buoyed by promising poll

Kwarteng faces massive market turmoil after disastrous day for sterling

06:10 , Maroosha Muzaffar

Kwasi Kwarteng is contending with massive market turmoil sparked by his tax-cutting mini-budget as a disastrous day for the pound saw Labour take its biggest poll lead over Tories for more than 20 years.

The Treasury moved to settle the markets with the promise of a Budget next spring as sterling tumbled to its lowest level against the dollar for at least half a century on Monday.

Read the full story by Amy Gibbons here:

Kwarteng faces massive market turmoil after disastrous day for sterling

Gary Neville: Government’s ‘shock’ mini-budget didn’t ‘read the room’

06:20 , Maroosha Muzaffar

The government’s economic policies announced last week were a “shock,” former footballer Gary Neville has said.

Kwasi Kwarteng’s mini-budget offered tax cuts to millionaires and lifted the cap on bankers’ bonuses.

“It didn’t feel like it was reading the room in this country when people are desperately worrying over the winter about how they are going to heat their homes,” Mr Neville said at the Labour party conference in Liverpool on Monday, 26 September.

Watch the full video here:

Gary Neville: Government’s ‘shock’ mini-budget didn’t ‘read the room’

ICYMI: Liz Truss and Kwarteng accused of ‘gambling with public’s money’ as pound plummets

06:30 , Maroosha Muzaffar

Liz Truss and Kwasi Kwarteng have been accused of recklessly gambling with the UK’s finances, as the pound slumped to an all-time low on the back of a borrowing-fuelled tax cut spree.

Labour’s shadow chancellor Rachel Reeves accused the PM and the chancellor “behaving like two gamblers in a casino chasing a losing run”, after Mr Kwarteng hinted at tax cuts beyond the £45bn package in his mini-Budget.

Read the full story here:

Truss and Kwarteng accused of ‘gambling with public’s money’ as pound plummets

Voices: Truss’s lack of fiscal responsibility is a huge chance for Labour – but can they rise to the challenge?

06:40 , Maroosha Muzaffar

With the exception of the Blair-Brown era, in recent times Labour has struggled to convince the voters it can be trusted to run the economy, Andrew Grice writes:

Can Labour capitalise on Liz Truss’s mistakes? | Andrew Grice

Tory MP says chancellor's cuts will ‘drive investment and liberate enterprise’

06:50 , Maroosha Muzaffar

Tory MP Danny Kruger was quoted as saying by the BBC that the approach of previous governments had been of “managed decline”, and the chancellor’s cuts were a “bold set of reforms that will drive investment and liberate enterprise”.

“Once we see the splash of last Friday’s announcement subside, we will see the real value has been created for our economy and markets will respond.”

Tumbling pound will intensify cost of living crisis, government warned

07:00 , Maroosha Muzaffar

The falling value of the pound is set to intensify the UK’s cost of living crisis and push more people into poverty, the government has been warned.

The Institute for Public Policy Research (IPPR), a UK think tank, said the fall in the pound would “worsen inflation and lengthen the cost of living crisis”, which is already expected to deepen over the winter months as energy consumption increases.

Read the full story by Samuel Lovett here:

Tumbling pound will intensify cost of living crisis, government warned

Pound steadies slightly in Asian markets after historic drop

07:30 , Andy Gregory

The pound steadied in early trading in Asian markets today, recovering slightly from the record low of 1.0327 against the US dollar it struck on Monday morning – when it tumbled by nearly 5 per cent – as traders were spooked by the government's economic plans.

Sterling sat around around 1.08 dollars by 7am on Tuesday, but economists have warned it could still fall to parity with the dollar this year for the first time.

Liz Truss’s chief of staff to be directly employed by No 10 – rather than by own lobbying firm

07:36 , Andy Gregory

Downing Street has announced a U-turn after revelations that Liz Truss’s chief of staff was being paid via his own lobbying firm sparked allegations of “Tory sleaze” within her first month in office.

Mark Fullbrook will now be employed directly by Downing Street and be put on a special advisor contract to avoid “any ongoing speculation”, a No 10 spokesperson announced early on Tuesday.

A spokesperson for Mr Fullbrook previously denied speculation that the arrangement allows him to pay less tax, saying: “This is not an unusual arrangement. It was not put in place for tax purposes and Mr Fullbrook derives no tax benefit from it.”

Our political correspondent Adam Forrest has more details:

Liz Truss aide to be directly employed by No 10 after being paid by own firm

‘Cavalry is coming with Labour,’ claims Wes Streeting

07:50 , Andy Gregory

The “cavalry is coming” with the Labour Party, Wes Streeting has claimed, after Sir Keir Starmer’s party was given its largest lead ever over the Tories in a YouGov poll which put them on a huge 17-point lead.

“All of us are frankly still recovering from our jaws hitting the floors last week with that budget from Kwasi Kwarteng,” the shadow health secretary told Sky News.

“And the real world consequences we’re seeing overnight, the withdrawal of mortgage products, tell us about the extent to which our own chancellor in this country has frightened the markets.

“This is just the tip of the iceberg, if interest rates go up in the way that some people are predicting that’s going to be huge additional costs to people with mortgages.

“And what was the Chancellor’s answer yesterday? ‘Don’t worry folks, in November I’m going to come up with some new fiscal rules – ie I’ve ignored all the ones I’ve already got and I’m rewriting the rules and making them up as I go along’.

“This isn’t serious leadership – it’s a reckless gamble,” Mr Streeting added. “The calvary is coming with Labour. We’ve got serious people, with a serious plan that would make an enormous difference to families right across the country and to businesses, who are the backbone of our economy and will be the bedrock of economic growth.”

Asking Tories to fix crises ‘like asking arsonist to put out fire’, says Wes Streeting

07:57 , Andy Gregory

Labour’s shadow health secretary Wes Streeting has compared asking the Tories to fix the economic crises to requesting an arsonist to extinguish the blaze they had ignited.

“If Labour win the next general election we will inherit crises on all fronts,” he told Sky News. “There are a whole load of problems that are made in Downing Street and after 12 years of Conservative government asking this lot to fix those crises they’ve created is like asking the arsonist to put out the fire they’ve started. It’s not going to happen.”

On Labour’s new 17-point poll lead over the Tories, he said: “We’re kind of double-looking as Labour politicians, thinking, ‘Look at these polls – look at what it will deliver’.”

Wes Streeting says he is worried about his own mortgage renewal next year

07:59 , Andy Gregory

Labour frontbencher Wes Streeting has said he is worried about his own mortgage renewal next year because of rising interest rates.

“My mortgage is up for renewal next year,” the shadow health secretary told BBC Breakfast.

“I’m worried about interest rates, and I don’t even think I’m one of the people who are most vulnerable to interest rate rises.”

Mini-budget ‘deeply damaged’ Tory election chances, say angry MPs

08:07 , Andy Gregory

One senior Tory backbencher told The Independent that the combination of the “disastrous” mini-Budget and plummeting pound had “substantially reduced” the Tory party’s chances of winning the next election.

“It’s been deeply damaging to our reputation on the economy – but that’s what happens when you have ideologues running the show. They’re like tea party Republicans or right-wing Corbynistas,” said the MP.

The senior figure said fellow moderates felt there was no point trying to change leader because it would make the Tory party an “absolute joke” to the wider electorate, and see another right-winger Tory grassroots. “What’s the f****** point?” they said.

The Tory added: “The mood now is that the next general election cannot be won, so some of us are thinking about how you reshape the party after a defeat.”

Another Tory MP said the mini-budget had badly damaged the party’s next election. “It’s done our chances no good at all. The bankers bonus thing and scrapping 45p rate were very strange and stupid. They’re just going to wind people up in the red wall.”

The backbencher said: “Some are thinking about what they are going to do next if they lose seats.”

Our deputy political editor Rob Merrick and political correspondent Adam Forrest have the full story here:

Bank of England says it will raise rates ‘as much as needed’ after rout on pound

Kwarteng said ‘who cares if Sterling crashes?’ after Brexit, report claims

08:33 , Andy Gregory

Chancellor Kwasi Kwarteng reportedly said “who cares if Sterling crashes” in the immediate aftermath of the Brexit referendum result in 2016.

Joy Lo Dico, the journalist behind the Evening Standard’s Londoner diary column at the time, said she found Mr Kwarteng talking “feverishly” into his phone outside the Groucho Club in Soho after the result. “The markets are going mad,” he told her.

The Brexiteer was later heard saying: “Who cares if Sterling crashes? It will come back up again.”

Our political correspondent Adam Forrest has more:

Kwasi Kwarteng said ‘who cares if Sterling crashes?’ after Brexit, report claims

Markets ‘don’t believe’ in government plan, says top economist

08:34 , Adam Forrest

Some people on fixed-rate mortgages could see payments “double” when the re-mortgage over the next year, Resolution Foundation director Torsten Bell has warned.

On the “turmoil” sparked by Kwasi Kwarteng’s mini-Budget, the economist told Sky News: “The government said it believed in markets to deliver a growth strategy on Friday. On Monday, the markets have said, ‘We don’t believe in the growth strategy’.

Mr Bell added: “In the current climate, announcing large, permanent, unfunded tax cuts is not a good idea. And that is what the markets are responding to.”

“In the end, lower taxes [for the wealthy] will mean worse public services or other people’s taxes having to go up. It’s those choices – and the ducking of those choices – that the markets are looking at and saying, ‘That’s not what serious policy-making looks like’.”

FTSE 100 edges upwards as investors await new Bank of England remarks

08:42 , Andy Gregory

UK’s FTSE 100 has edged higher this morning, as investors await a statement from the Bank of England’s chief economist for further details on the central bank’s response to the recent turmoil.

The benchmark FTSE 100 was up nearly 0.7 per cent on its previous closing value, lifted by miners, while the FTSE 250 had gained nearly 0.8 per cent, at the time of writing.

Investors will be closely watching the policy forum scheduled for midday, where Bank of England chief economist Huw Pill is expected to give a clearer indication of bank’s response.

In an intervention on Monday, Threadneedle Street said that it would not hesitate to change interest rates and was monitoring markets “very closely”.

Voters realising risk for UK lies in ‘continuity with the Conservatives’, says Streeting

08:52 , Andy Gregory

Voters are realising that the risk for the country is not change with Labour but “continuity with the Conservatives”, Wes Streeting has claimed.

The shadow health secretary told BBC Radio 4’s Today programme: “What we’ve seen in recent days in our country isn’t the consequence of foreign wars or external factors, these are the result of the reckless and irresponsible choices made by a Conservative chancellor.

“And now I think it’s clear for the country the risk isn’t change with Labour, it’s continuity with the Conservatives.”

Former US Treasury secretary denounces Kwarteng's ‘utterly irresponsible’ mini-Budget

09:17 , Andy Gregory

Former US Treasury secretary Larry Summers has said that he “did not expect markets to get so bad so fast” following chancellor Kwasi Kwarteng’s “utterly irresponsible” mini-Budget on Friday.

“A strong tendency for long rates to go up as the currency goes down is a hallmark of situations where credibility has been lost,” the Harvard president emeritus said, adding that “this happens most frequently in developing countries” but had also happened in the US, France and Germany.

“Financial crisis in Britain will affect London’s viability as a global financial center,” Mr Summers said, adding: “A currency crisis in a reserve currency could well have global consequences. I am surprised that we have heard nothing from the IMF.”

Truss’s right-wing economic advisor was against tax cut for rich

09:18 , Adam Forrest

Gerard Lyons, the radical right-wing economist who has advised Ms Truss, admitted that axing the top rate of tax had “spooked” the markets – saying he was confused by the government’s move.

“I was against those unexpected and unexplained small tax changes on Friday,” Mr Lyons told Channel 4 News. “Even though in the scale of things they were small compared to the reversal of the tax increases, they spooked the markets.”

He added: “I think what we need to do, given both the Treasury and the Bank of England statements, is see how the market settles down in coming days.”

Bank of England should consider emergency meeting, former senior official says

09:21 , Andy Gregory

The Bank of England should consider an emergency meeting in light of the UK economy’s current state, its former deputy governor for monetary policy has said.

Professor Sir Charlie Bean told BBC Radio 4’s Today programme the bank was “rightly reluctant to have emergency meetings”, but added: “I think on this occasion if I had still been at the bank in my role as deputy governor, I certainly would have been counselling the governor that I think this is one of the occasions where it might have made sense.”

Asked about the economic turmoil this could cause, he said: “The key thing is, if you call it, you have to take significant action”, adding: “The lesson is you go big and you go fast.”

Sir Charlie also warned: “It now costs the UK government more to borrow than Italy or Greece, who we have traditionally thought of as being not quite basket cases, but certainly weaker-performing sovereign entities.”

Overseas buyers look to snap up London property as weak pound takes demand to ‘new levels’

09:49 , Andy Gregory

Demand for London property from foreign investors is at “new levels” as they rush to make the most of the weaker pound, my colleague Holly Bancroft reports.

“To maximise the saving that can be had due to current exchange rates, buyers are especially drawn to some of London’s priciest neighbourhoods such as Knightsbridge, Mayfair and South Kensington,” said Matthew Thompson of estate agent Chestertons, pointing to a reduction of nearly $1m on a £4m property over the past six months.

“For many, this could be a once in a lifetime opportunity,” said Naeem Aslam, chief market analyst at AvaTrade.

Weak pound attracts overseas buyers to London property market

Kwarteng to meet with City executives to discuss deregulation plans

09:52 , Andy Gregory

Kwasi Kwarteng will meet asset managers, pension funds and insurers on Tuesday to discuss his plans for financial services deregulation, a day after the pound plunged to historic lows.

The meeting, expected to take place mid-morning, will be attended by Aviva, BlackRock and JP Morgan among others.

Pound higher against dollar this morning

10:18 , Andy Gregory

The British pound remains higher against the dollar this morning,as one analyst suggested the statements from the Bank of England and Treasury had helped it recover from yesterday’s record lows of $1.0327.

At 10am, the pound sat at $1.0825 dollars – up from $1.0688 at the previous day’s close. The euro, meanwhile, was £0.8900 pounds , down slightly from £0.8997 at the previous close.

“I think the statements from the Bank of England and the Treasury have helped the pound,” Stuart Cole, head macro economist at Equiti Capital, was reported as saying by Reuters.

“The BoE saying it won’t change course has helped the recovery in sterling as it conveys a message that there’s no sense of panic at the central bank,” Mr Cole added.

Kwarteng eyes deregulation ‘Big Bang 2.0'

10:32 , Andy Gregory

As he contends with massive market turmoil sparked by his mini-Budget, Kwasi Kwarteng is meeting with City investors to discuss a package of financial deregulation.

The Chancellor will meet with pension funds, insurers and asset managers to discuss what is being billed as a Big Bang 2.0 – a reference to Margaret Thatcher's 1986 policies which kicked off a massive change in the City of London.

Aviva, Legal and General, Royal London, BlackRock, Fidelity, and JP Morgan will all be in the room this morning.

Markets treating UK like ‘developing country’ after Kwarteng budget, warns ex-US Treasury chief

10:37 , Andy Gregory

Former US Treasury secretary Larry Summers has claimed that markets are treating Britain like a developing country where “credibility” is lost.

The president emeritus at Harvard – who advised presidents Bill Clinton and Barack Obama – said that he did not expect markets to “get so bad so fast” following chancellor Kwasi Kwarteng’s “utterly irresponsible” mini-Budget.

Our political correspondent Adam Forrest has more details:

Markets treating UK like ‘developing country’, warns ex-US Treasury chief

‘Welcome relief’ in calmer markets on Tuesday morning

11:00 , Andy Gregory

The markets are somewhat calmer this morning, with the pound holding its slightly better position against the dollar and gilt yields – the interest rates on government bonds – falling slightly.

Andy Bruce, of Reuters, described the situation as “mildly reassuring after the market freakshow of the last couple of days”, before adding:

Mortgage payers set for huge hit if interest rates rise to 6%

11:13 , Adam Forrest

Money markets are predicting that the Bank of England’s base rate could almost treble to 6 per cent next year.

Samuel Tombs, chief economist at Pantheon Macroeconomics, said that if base interest rates go up to 6 per cent as predicted, those refinancing a two-year fixed rate mortgage would see monthly payments jumping up from £863 to £1,490.

“Many simply won’t be able to afford this,” he said on the prospect of repossessions.

Former Bank of England monetary policy committee member Martin Weale warned that even if base rates reach 4 per cent or 5 per cent, it will push mortgage rates above 7 per cent.

Sir Charlie Bean told BBC Radio 4’s Today programme that first time-buyers will “hit straight away” by higher rates, while others would feel the pain when they move off fixed-rate terms over the next year.

Torsten Bell, Resolution Foundation director, said around 1.8 million households come off their current fixed-rate mortgages next year. “They will come onto much higher rates – we could see the average rate doubling – the interest payments, not the capital payments.”

UK conducting a ‘major experiment’, German finance minister says

11:21 , Andy Gregory

Germany’s finance minister Christian Lindner is reported to have expressed doubts over what he dubbed the UK government’s “major experiment”.

Speaking at an event hosted by the Frankfurter Allgemeine Zeitung newspaper, Mr Lindner said: “In the UK, a major experiment is starting as the state simultaneously puts its foot on the gas while the central bank steps on the brakes.”

He added: “I would say we wait for the results of this attempt and then draw the lessons.”

YouGov poll finds drop in number of Tory voters switching to Labour, pollster says

11:30 , Andy Gregory

Labour’s historic YouGov poll lead over the Conservatives is “mostly built off Tory 2019 voters switching to ‘don't know’”, a polling expert has said.

Despite the headline figures showing a 17-point Labour lead – the highest since polling began in 2001 – Chris Curtis of Opinium said that the new polling actually found a drop in the number of Tory voters switching to Labour.

Sir Keir Starmer’s party “still needs to convert more of them if they want to get a majority at the next election” Mr Curtis said, adding: “It's not as bad for the Tories as the headline number suggests.”

Emily Thornberry ‘apologises’ to Labour conference for her Tory PM ‘curse’

11:39 , Andy Gregory

Emily Thornberry has jokingly apologised to the Labour conference for having shadowed both Boris Johnson and Liz Truss before each of them became prime minister.

The shadow attorney general told delegates: “Conference, it’s a pleasure to be back in Liverpool. But I must start with an apology. The last time I stood here in 2018, I was shadowing Boris Johnson. When our conference was cancelled in 2020, I was shadowing Liz Truss.

“So, I don’t know what this curse is, but let me apologise in advance for the catastrophic period in our national history when the premiership of Suella Braverman begins. It could get worse though. We may need an emergency motion stating that Keir cannot under any circumstances make me shadow Jacob Rees-Mogg.”

Hundreds of mortgage deals pulled from market

11:39 , Adam Forrest

More than 350 mortgage deals have been pulled since Kwasi Kwarteng’s mini-Budget, according to the Moneyfacts website.

There are 3,596 residential mortgage products available on the market – down from 3,880 at the start of the week.

‘Too early to be sure’ Labour will win majority, polling guru says

11:48 , Andy Gregory

It is “too early to be sure” that Labour will win an overall majority, Sir Professor John Curtice has said.

“It’s pretty clear that Friday’s mini-Budget has shaken the confidence of the electorate as well as the markets, not least because of the market reaction,” the polling guru told LBC.

Pointing to the recent YouGov and Redfield & Wilton polls – giving Labour 17 and 13-point leads respectively – Mr Curtice said: “If those kinds of things were to transpire at the ballot box, frankly Labour would get an overall majority.

“Now the question is ‘where are we in the longer-term?’ It is pretty difficult for Labour to win an overall majority, not least because it’s not going anywhere in Scotland, it’s got to be around a dozen points or so ahead and I think it might come down a bit.

“So if we take a longer-term view – yes, the Labour Party do look a very good bet to be the largest party in the next parliament, but it’s too early to be sure that they’re going to win an overall majority.”

Bitcoin-loving El Salvador president mocks Bank of England

11:52 , Andy Gregory

The president of El Salvador mocked the Bank of England as the price of the pound plummeted yesterday, following its previous criticism of his country’s bitcoin experiment.

Our deputy technology editor Anthony Cuthbertson has the details here:

Bitcoin-loving president of El Salvador mocks Bank of England over pound crash

Exclusive: Labour to promise law to ensure international aid tackles climate crisis

12:08 , Andy Gregory

Sir Keir Starmer’s Labour Party will commit to passing a law requiring the UK’s overseas aid spending to prioritise climate action, The Independent can reveal.

In a speech today at the party’s conference, shadow international aid secretary Preet Gill will confirm a commitment to restoring the huge international aid cuts made by Boris Johnson, and will introduce a new focus on using UK assistance to developing countries to address “this century’s biggest threat to humanity”.

Our political editor Andrew Woodcock has the full story:

Labour to promise law to ensure international aid tackles climate crisis

Labour’s Yvette Cooper outlines party’s policies on crime, policing and small boat crossings

12:25 , Andy Gregory

A Labour government would crack down on criminals luring young people into violence and “outlaw the exploitation of children for crime”, shadow home secretary Yvette Cooper has announced, in a speech attacking the Tories’ record on tackling crime.

“In 94% of crimes now no-one is charged,” Ms Cooper told delegates in Liverpool. “Time and again no-one pays the price, there are no consequences, there is no justice.”

Her party would “rebuild community policing” with a “fully-funded” £360m programme to put 13,000 additional police and PCSOs into community teams, Ms Cooper said.

“And unlike the Tories, we will work with France to prevent dangerous small boats crossing the Channel and putting lives at risk with a new cross-border police unit to crack down on the criminal gangs who make millions from trading in people and profiting from their lives, paid for by cancelling the deeply damaging, extortionately expensive, unworkable and unethical Rwanda plan,” she added.

Pound holds position after rallying slightly against dollar

12:28 , Andy Gregory

The pound is so far holding its position against the dollar this morning.

As of midday, Sterling was $1.0806, compared to $1.0688 at the previous close. Meanwhile, the euro was £0.8912 , down from £0.8997 at the previous close.

Mini-budget 'has achieved precisely the opposite’ of one Truss pledge

12:42 , Andy Gregory

Kwasi Kwarteng’s mini-Budget has caused “precisely the opposite” of what Liz Truss said she wanted to achieve during the leadership campaign, according to ITV’s Robert Peston.

While Ms Truss had pledged to spread the UK’s Covid-related debt over a “longer-term footing”, the interest rates on 30-year government debt have now risen above their Italian equivalent following Friday’s announcement – and to double that of Germany’s, he pointed out.

ECB chief proposes taxing richest to support people through energy crisis

12:59 , Andy Gregory

The European Central Bank’s chief economist has suggested taxing higher earners and the most profitable firms to support people with rocketing energy prices, in comments starkly contrasting with Kwasi Kwarteng’s abolition of the top income tax rate on Friday.

“The energy shock we are experiencing is huge. It is the poorest people in our society that are most affected,” Philip Lane told Austria’s Der Standard newspaper.

Calling on governments to support those most at-risk, he said: “This could take the form of higher taxes on higher earners or on industries and firms that are highly profitable in spite of the energy shock.”

Government should ‘consider reversing’ some policies in mini-Budget, says Virgin Atlantic boss

13:19 , Andy Gregory

The fall in the value of the pound means the UK is “on sale” for overseas tourists, Virgin Atlantic boss Shai Weiss has said, as he called on the government to “consider reversing” some of the policies announced on Friday.

Speaking at a press conference in London, he warned that the pound’s historic fall was hurting the economy and consumers by “fuelling the inflation vicious cycle that we’re in”.

“The message to government is pretty clear in my mind,” Mr Weiss said. Prime minister Liz Truss has taken difficult decisions upon entering into the role.

“Maybe you need to take a more difficult decision to reverse the declining pound and ensure that this country is not left with unsustainable perceived weakness in international markets, which of course then impact interest rates, impact consumers, impact mortgage rates, impact the entire economy.”

Chancellor sticks by economic plan and says he has ‘confidence in our long-term strategy'

13:39 , Holly Bancroft

The Chancellor has spoken of his confidence in the Government’s tax-cutting strategy, despite Friday’s mini-budget sending the pound plummeting.

“We are confident in our long-term strategy to drive economic growth through tax cuts and supply-side reform. Supply-side reforms are critical – increasing capacity brings down prices,” said at a meeting with City investors.

According to a read-out of the meeting, Kwasi Kwarteng added: “Cabinet ministers will set out more supply-side measures over coming weeks to make meaningful change. Right across Government, departments have to be focussed on this.

“As I said on Friday, every department will be a growth department.

“We are committed to fiscal discipline, and won’t re-open the spending review. We have a Medium Term Fiscal Plan coming on 23 November, alongside an OBR forecast. That will be a credible plan to get debt to GDP falling.

“We have responded in the immediate term with expansionary fiscal stance on energy because we had to. With two exogenous shocks – Covid-19 and Ukraine – we had to intervene. Our 70-year-high tax burden was also unsustainable.

“I’m confident that with our growth plan and the upcoming medium-term fiscal plan – with close co-operation with the Bank – our approach will work.”

Hundreds of mortgage deals vanish from market after mini-budget

13:40 , Andy Gregory

Hundreds of mortgage deals have vanished from the market in recent days after the mini-Budget triggered market turmoil.

Several lenders including Halifax, Virgin Money and Skipton Building Society have pulled their fixed-rate products for new customers.

Vicky Shaw and Chiara Giordano have the full report:

Hundreds of mortgage deals vanish from market after mini-budget

Breaking: Kwasi Kwarteng vows to stick with tax cut plan despite calls to ‘reverse course’

13:56 , Holly Bancroft

Kwasi Kwarteng has vowed to push on with the government’s radical borrowing-fuelled tax cut spree despite growing calls to “reverse course” amid market turmoil.

“We are confident in our long-term strategy to drive economic growth through tax cuts and supply-side reform,” the chancellor said after a meeting with banking chiefs on Tuesday.

Mr Kwarteng promised to produce “credible plan” to reduce government debt at the end of next month – but said he and Liz Truss would be pushing on in their search for growth.

Read the full story from Adam Forrest:

Kwasi Kwarteng vows to stick with tax cut plan despite calls to ‘reverse course’

Labour’s Angela Rayner accuses government of ‘casino-style gamble'

13:59 , Andy Gregory

Liz Truss and Kwasi Kwarteng’s approach in Friday’s mini-Budget is “so reckless” and a “very risky casino-style gamble”, Labour’s deputy leader Angela Rayner has warned, as she said her party was “ready for a general election”.

“The situation at the moment is so grave, the markets are so spooked by what the Conservatives have said on Friday, that actually they really need to get a grip of this because I don’t see how we can go forward certainly up until – the Bank of England are not due to meet until November,” Ms Rayner told Times Radio.

“I really don’t see how we get from where we are now until November in a situation where obviously we need to stabilise the market, we need to make sure that there’s confidence in the programme for the government, so that we don’t end up in a really serious situation.

“That is my appeal really to the government, is that this is not just about party political politics, this is really quite serious and it’s going to affect people’s real lives, mortgage, interest rates, day-to-day living costs, all of these things. If you’re not on £155,000 a year or above, you’re going to be worse off as a result of Friday’s budget.”

Starmer starts conference speech with Arsenal joke

14:06 , Andy Gregory

Sir Keir Starmer has taken to the stage at the Labour conference in Liverpool.

“It’s great to be here in Liverpool. After all the changes we’ve made, all the hard work that we’ve put in, finally we’re seeing the results,” the Labour leader said.

“We can say it at last, Arsenal are top of the league,” he joked.

Labour must stand with working people, Starmer says

14:10 , Andy Gregory

We have seen two sides of Britain in recent weeks, Sir Keir Starmer said.

On one hand, was a nation united to pay its respects to the Queen, who “even in death, found a unique way to capture the British sprit”.

But the other side of Britain – one all at sea, where a cloud of anxiety hangs over working people – never went away, he added.

Labour “must stand with working people” and “meet their ambitions for real change”, and “walk toward a better future” which is greener and more dynamic, “because we can’t go on like this”, he said.

Government has lost control of the British economy, Starmer warns

14:12 , Andy Gregory

The government has “lost control of the British economy”, Sir Keir Starmer said, adding: “And for what?”

Calling the situation in recent days “without precedent”, the Labour leader said: “They’ve crashed the pound – and for what? Higher interest rates, higher borrowing – and for what?

“Not for you, not for working people. For tax cuts for the richest 1 per cent in our society.”

Labour government would ‘run towards the challenges of tomorrow’, Starmer says

14:16 , Andy Gregory

Sir Keir Starmer has attacked the government over raw sewage in our seas, NHS backlogs and the poorest in our society “still facing the coldest winter in our lives”.

Britain never won its battles with wishful thinking, he said, adding: “Fail to prepare and you prepare to fail ... that’s how the Tories have governed our country for 12 long years.

“That’s why our economy has been more brittle than others in the face of crisis.”

The Tories “haven’t just failed to fix the roof, they’ve ripped out the foundations, smashed through the windows and now they’ve blown the doors off for good measure”, the Labour leader said.

His government would “run towards the challenges of tomorrow” and get Britain out of “this cycle of crisis”, doing so with a fresh set of priorities, Sir Keir said.

Government has left NHS ‘face down on the floor’, Starmer says

14:20 , Andy Gregory

The government has left the NHS “face down on the floor”, Sir Keir Starmer has said.

“I know this will shock you, but the Tories aren’t on the side of the NHS,” he told Labour conference delegates in Liverpool.

Saying that his mother, sister and wife have all worked in the health service, the Labour leader claimed it “runs through our family like a stick of rock”.

He recalled a conversation with a doctor who told him the NHS was now “face down on the floor”, adding that “the pathetic response of the government last week left it there”.

Labour ‘must restore our sense of collective hope'

14:24 , Andy Gregory

The next Labour government “must restore our sense of collective hope”, Sir Keir Starmer has told delegates in Liverpool.

“We should never be left cowering in a brace position. It’s time for Britain to stand tall again ... to chart a new course and to get our future back,” the Labour leader said.

Recalling “what rising prices feel like” during his childhood in the 1970s, he said: “There’s something else I remember ... hope. Not a grandiose, utopian dream kind of hope, a hope that was ordinary, basic, taken for granted.

“Because like all families, although we had our ups and downs, my parents never granted for one second that things would get better. And you know what, they were right.”

The gift of opportunity they gave him “drive me to make sure that no one, anywher in this country, is held back by their circumstances”, Sir Keir said, adding: “That’s not just words, that’s the story of my life.”

He added: “Work hard and you will get a fair chance in Britain. My parents didn’t just believe this, it comforted them. But is it still true? I don’t think so. After 12 long years, our spirit is ground down.”

Tories have ‘choked aspiration for working people’, Starmer says

14:28 , Andy Gregory

The Tories “keep talking about aspiration, but they don’t understand how they’ve choked it off for working people”, Sir Keir Starmer has said.

People “don’t think that real change is possible anymore”, he said, adding: “And who can blame them? Just look at what they’ve been through”.

The Labour leader listed the British people as having paid for the banking crisis, being let down after voting for economic change “in a referendum”, and uniting to defeat a virus only to see the government break the rules they respected.

“And now this, the biggest hit to their living standards in a century,” he added. “And it turns out there is money for the top 1 per cent.”

‘Slava Ukraini’, Starmer says

14:30 , Andy Gregory

Sir Keir Starmer has told the Labour conference to say “slava Ukraini”, to rapturous applause, as he vowed to stand with Kyiv against Russian aggression.

“We will never allow Putin’s threats and imperialism to succeed. We will stand alongside Ukraine and its people, fighting on the frontline of freedom,” he said, as people rose to their feet to clap.

Starmer: ‘Working class impatience’ drives me as Labour leader

14:37 , Andy Gregory

“Working class impatience” drives me as Labour leader, Sir Keir Starmer has said, declaring that Labour’s position was now “country first, party second”.

“We need to get moving. That’s the other thing my background gives me – impatience,” the Labour leader said.

“If you’re born without privilege, you don’t have time for messing around. You don’t walk around problems without fixing them, and you don’t surrender to the instincts of organisations that won’t face up to change.”

Describing his aim of making “our party fit to serve this country”, he added: “That’s why we had to rip out antisemitism by its roots. That’s why we had to show our support for Nato is non-negotiable, show we want business to prosper.”

He added: “Country first, party second. And I didn’t do this alone. Conference, we did it together and it shows.”

Starmer sets out vision for UK post first-term of Labour government

14:42 , Andy Gregory

By the end of Labour’s term, it will have “defeated the cost of living crisis” and “services are there when you need them”, Sir Keir Starmer has suggested.

“Our economy is stable again, businesses have the certainty to invest, the NHS is back in good health, and people are starting to raise their sights – believe in Britain again,” the Labour leader said, painting a picture of his view for a post-Labour Britain.

“We’re proving net-zero can be achieved and the most precious gift to the next generation is in our grasp, a safer and more prosperous world to live in,” he continued. “And because we are fairer, because we are greener, we are also more dynamic, our entrepreneurial spirit unleashed.

“New technology improving public services, cutting-edge science and world-class services driving economic growth. And working people are respected as the people who create the wealth that drives Britain forward,” he added.

“And there’s one more thing – it’s possible to govern with integrity, to unite rather than divide, to respect other points of view, to see that long-term plans trump short-term fixes, that decline is not inevitable. Yes, some people will say ‘politicians are all the same’, but not as many.”

Tories have acted irresponsibly in ‘spectacular fashion’, says Starmer

14:45 , Andy Gregory

The Tories have acted irresponsibly in a “spectacular fashion”, Sir Keir Starmer has said, as he accused them of losing control of the economy.

Speaking to the Labour conference, the party leader said: “Rachel Reeves and I have set out a framework for sound money. We’re determined to reduce debt as a share of our economy. Every policy we announce will be fully costed. And we will set up an Office for Value for Money to make sure public spending targets the national interest.

“We should be clear about what that means. It means not being able to do things – good Labour things – as quickly as we might like. That’s what responsible government looks like.

“Because if you lose control of the economy, if you act irresponsibly – as the Tories have done in spectacular fashion – then you lose the ability to do anything. And working people pay the price. We will not let that happen.”

Labour has ‘economic reason’ on its side, Starmer says

14:58 , Andy Gregory

Labour will beat the Tories because the party has “fairness” and “economic reason” on its side, Sir Keir Starmer has claimed.

He told the Labour conference: “If they want to fight us on redistribution, if they want to fight us on workers’ rights, if they want to tell us working people don’t come first, we’ll take them on – and we will win.

“And we will win not just because we have fairness on our side but because we have economic reason on our side too. Trickle-down economics doesn’t work. Britain won’t be better off just because we make the rich richer. ”

He also suggested Kwasi Kwarteng had been “caught bang to rights” on the Tories’ economic record.

“We will fight the Tories on economic growth. Their record is appalling – the worst decade of growth in two centuries. Or, as the Chancellor puts it, ‘a vicious cycle of stagnation’, he said.

“Now, I have to say, as a former prosecutor, it always warms my heart when somebody caught bang to rights pleads guilty at the first opportunity.”

Starmer sets out Labour target for 70% to own their own homes

15:01 , Andy Gregory

A Labour government will set a target to ensure 70 per cent of Britons own their own homes, Sir Keir Starmer has confirmed.

The party will also help “real” first-time buyers onto the property with a new mortgage guarantee scheme, the Labour leader told his annual conference in Liverpool.

Our Whitehall editor Kate Devlin has more:

Labour to set 70 per cent homeowning target, Keir Starmer announces

Labour to set up new publicly-owned company to ‘harness green energy’

15:04 , Andy Gregory

Labour will set up a new publicly-owned green energy company as as a rival to foreign investors, Keir Starmer has announced.

Great British Energy would “harness the power of Britain’s sun, wind, and waves to cut energy bills and deliver energy independence”, the Labour leader told the party’s conference.

GB Energy would work “alongside the rapidly expanding private sector, to establish the UK as a clean energy superpower and guarantee long term energy security”, Sir Keir said.

Our deputy political editor Rob Merrick reports:

Labour to set up new publicly-owned company to ‘harness green energy’

Labour will ‘make Brexit work’, Starmer says

15:06 , Andy Gregory

Sir Keir Starmer has vowed that a Labour government would “make Brexit work”.

He told the Labour conference: “The policy of my Labour government will always be to make Brexit work. It’s no secret I voted Remain – as the prime minister did.

“But what I heard, around the country, was people who thought we’d got our priorities wrong; who wanted democratic control over their lives but who also wanted opportunities for the next generation, communities they felt proud of, public services they could rely on.”

Sir Keir said he did not hear that Brexit was about “slashing workers’ rights” or lowering food standards, or ending redistribution, adding: “So I want to speak directly to the people who left Labour on this issue. Whether you voted Leave or Remain, you’ve been let down.

“And with Liz Truss, the Tories are changing the meaning of Brexit before your eyes.”

He added: “If you voted for a government to step in on your side, for better work, higher wages, more opportunities in your community, for an NHS that is modern and reliable. If you voted to take control of your life and for the next generation to have control of theirs, then I say to you: that is what I will deliver.

“I will make work pay for the people who create this country’s wealth. I will make sure we buy, make and sell more in Britain. I will revitalise public services and control immigration using a points-based system. I will spread power and opportunity to all.”

Labour ‘won’t work with the SNP under any circumstances’, Starmer says

15:14 , Andy Gregory

Scotland needs a Labour government, Sir Keir Stamer has claimed, insisting that his party will not make a deal with the SNP “under any circumstances”.

He told delegates in Liverpool: “Conference, the challenges we face – the cost-of-living crisis, climate change, standing up to Putin – are common across our four nations.

“We saw off the threat of fascism and deadly disease, together. We built the NHS and the welfare state, together. But I don’t believe in our union just because of our history. I believe in it because of our future.”

He added: “Scotland needs a Labour government that can deliver change. But it also needs the power and resources to shape its own future, whoever’s in power in Westminster. And the SNP are not interested in this.

“For them, Scotland’s success in the UK is met with gritted teeth, seen as a roadblock to independence, and so, they stand in the way. We can’t work with them. We won’t work with them. No deal under any circumstances.

“A fairer, greener, more dynamic Scotland. In a fairer, greener, more dynamic, Labour Britain.”

Starmer declares Labour ‘party of the centre ground'

15:19 , Andy Gregory

Sir Keir Starmer concluded his speech at his party’s conference by claiming that Labour are the “party of the centre-ground”.

But he warned that the Tories will “stop at nothing” in a bid for a fifth term.

“Conference, on climate change, growth, aspiration, levelling-up, Brexit, economic responsibility we are the party of the centre-ground,” he said, echoing Tony Blair as he added: “Once again, the political wing of the British people – and we can achieve great things.”

Sir Keir continued: “Let’s not kid ourselves: the next two years will be tough. The Tories want a fifth term and they will stop at nothing to achieve it. And because of their record, because of the state of Britain, they are getting desperate. With so little that’s good to defend, they will lash out.

“We need to be prepared, disciplined, focused, spend each day working to earn the trust of the British people. Meet their attacks with hope, provide the leadership this country so desperately needs.

“Because, as in 1956, 1964, 1997: this is a Labour moment.”

Bank of England chief economist says pound slump will ‘require significant response’

15:25 , Andy Gregory

The Bank of England’s chief economist Huw Pill has told a conference that the slump in the value of the pound will require a “significant monetary policy response”.

In a statement to Barclays-CEPR International Monetary Policy Forum, Mr Pill tried to reassure those present that the Bank of England had a watchful eye on current events, as well as “a very good understanding of its mandate to maintain price stability and its remit to bring inflation to its 2 per cent target”.

My colleague Holly Bancroft has more details:

Bank of England chief economist says pound slump will ‘require significant response’

Sources in Rupa Huq’s local party call for her to lose whip after calling Kwarteng ‘superficially’ black

15:29 , Andy Gregory

Sources in Rupa Huq’s local Labour party have called for her to lose the whip after she called chancellor Kwasi Kwarteng “superficially” black, reports The Independent’s Whitehall editor Kate Devlin .

In comments apparently made during a fringe event at the Labour conference, the MP for Ealing Central and Acton can be heard discussing the chancellor’s private school background, before adding that “you wouldn’t know he is black” when hearing him speak, in audio published online.

Here is the full exclusive report:

Sources in Rupa Huq’s local party call for her to lose whip in racism row

‘A government-in-waiting’: Political journalists react to Starmer speech

15:45 , Andy Gregory

Here is some of the reaction from political journalists to Sir Keir Starmer’s speech at the Labour Party conference, in which he claimed his was “the party of the centre ground”.

Pippa Crerar of The Guardian said that “for the first time in years”, Labour actually sounds like a government-in-waiting.

ITV’s Robert Peston said there were “enough ovations to make a dictator proud”.

According to the New Statesman’s Rachel Wearmouth, the reaction across the Labour Party is broadly positive.

Emily Ashton, of Bloomberg, described a “real belief here that Labour can win next election”.

Analysis | How Kwasi Kwarteng’s budget damaged the economy and what will happen now

15:48 , Andy Gregory

With the government’s economic policy – described as a “doomsday cult” by the chief economist of the world’s largest wealth manager UBS – having sent the pound tumbling, our policy correspondent Jon Stone takes a look at how Friday’s mini-Budget has damaged the economy:

How Kwasi Kwarteng’s budget damaged the economy and what will happen now

‘Significant policy response’ to come, says Bank of England economist

16:01 , Adam Forrest

The Bank of England’s chief economist Huw Pill has reiterated the Bank’s willingness to hike interest rates further – admitting there would be “challenging times” ahead to bring inflation back down to a target of 2 per cent.

“I think it’s hard not to draw the conclusion that all this will require a significant monetary policy response,” he told the International Monetary Policy Forum on Tuesday.

He said the Bank’s Monetary Policy Committee (MPC) “cannot be indifferent” to the repricing of financial assets seen (i.e. market turmoil) in the last few days. But he added: “We must be confident in the stability of the UK’s economic framework.”

Labour removes party whip after MP calls Kwarteng ‘superficially’ black

16:23 , Rory Sullivan

Labour has removed the party whip from Rupa Huq MP after she called chancellor Kwasi Kwarteng “superficially” black.

In audio published online, Ms Huq was heard discussing his private school background, before adding that “you wouldn’t know he is black” when hearing him speak.

The MP for Ealing Central and Acton, in west London, appeared to have been made the comments at a fringe event at the Labour conference in Liverpool on Monday.

A Labour spokesperson said: “We obviously condemn the remarks she made, they are totally inappropriate and we would call on her to apologise and withdraw them.”

Labour removes party whip after MP calls Kwarteng ‘superficially’ black

Tory donor makes huge profits from falling pound

16:40 , Rory Sullivan

Conservative party donor Crispin Odey is among those who has made huge profits by shorting the pound in the run-up to the currency crisis.

He has donated more than £350,000 to the Tories, according to Electoral Commission records.

Odey Asset Management’s European hedge fund is said to be up about 145 per cent after Mr Odey’s firm bet against the pound and government bonds in the gilts market.

“It’s been helpful,” Mr Odey told the Financial Times on his short position on Sterling, while describing his bets against gilts as “the gifts that keep on giving”.

Tory donor makes huge profits from falling pound

Keir Starmer on Brexit

17:00 , Rory Sullivan

Our deputy political editor Rob Merrick has more details about Keir Starmer’s comments on Brexit this afternoon.

The Labour leader accused the Tories of betraying a public that voted for better public services and stronger communities.

In his fiercest criticism of the government’s handling of EU withdrawal, he said it epitomised how ministers “lurch from crisis to crisis” on issues.

Insisting Labour would “make Brexit work” – not seek to reverse it – Sir Keir said only he could deliver the Leave promise that people would “take control” of their lives.

Brexit is Tories’ ‘biggest failure’ with ‘no plan for future’, Keir Starmer says

Rupa Huq offers Kwarteng ‘heartfelt apologies’

17:16 , Rory Sullivan

Rupa Huq has offered chancellor Kwasi Kwarteng “sincere and heartfelt apologies” for her “ill-judged” comments describing him as “superficially” black.

The Ealing Central and Acton MP had the Labour whip removed earlier today for her remarks.

Lammy calls for special tribunal to prosecute Putin over Ukraine war

17:20 , Rory Sullivan

Shadow foreign secretary David Lammy has called for a special tribunal to be set up to try Russian president Vladimir Putin for his “crime of aggression” against Ukraine.

The Labour frontbencher said: “No act of imperialism is ever the same.

“But Vladimir Putin’s barbaric invasion of Ukraine this year was just the latest front in an age-old war between democracy and dictatorship. Freedom and subjugation. Empire and independence.

“As Vladimir Putin continues to wage his barbaric war, let us send a message directly to him: we will create a special tribunal to prosecute you for your crime of aggression.

“And whether it takes six months, three years or ten, Ukraine will win.”

Buoyant Labour think Truss’s ‘scorched earth’ approach can pave their way to power

17:40 , Rory Sullivan

Some political commentators have said they’ve rarely seen a Labour conference so buoyant with expectation.

The opposition party appears to be growing in confidence after it jumped to a 17-point lead over the Tories, following the sterling crisis sparked by the government’s mini-Budget.

Andrew Woodcock reports:

Buoyant Labour think Truss’s ‘scorched earth’ approach can pave their way to power

Cost of living protests to coincide with Tory conference

18:00 , Rory Sullivan

Protest groups are to join forces for a “day of action” on the cost of living during the Tory conference, writes Jon Stone.

Organisations including the Don’t Pay campaign, Just Stop Oil and Enough is Enough will take to the streets in dozens of towns and cities on 1 October – in what is expected to be the biggest set of cost-of-living demonstrations yet.

Cost of living protests to hit start of Tory conference as bill rise kicks in

David Lammy attacks ‘twisted lies’ of Empire that turned millions into slaves

18:20 , Rory Sullivan

Shadow foreign secretary David Lammy has attacked the “twisted lies” of Empire that turned millions into slaves.

In a speech at the Labour conference, the MP for Tottenham linked the imperialism of the slave trade to Russia’s assault on Ukraine.

He also tore into what he called 40 years of failed Conservative foreign policy.

Read more here:

David Lammy attacks ‘twisted lies’ of Empire that turned millions into slaves

Labour’s Great British Energy plan

18:40 , Rory Sullivan

Earlier today, Labour announced its plans to set up a publicly-owned green energy company to help combat climate change.

Speaking about the Great British Energy proposal, Ed Miliband, shadow secretary for net zero, said the top ten countries for renewable energy all have state energy companies.

“Why do they do that? Partly because they want to make the investments so they can get the jobs and the wealth, and we’re saying, well look if we’re going to not only get this green economy, but take advantage of the opportunities there are for good jobs and decent wages, we need to do this ourselves as well.”

He added: “We’ve had an aversion in this country to a real industrial policy where the state plays its proper role, not substituting for the private sector, but partnering with the private sector, and I think that is an absolutely central part to the vision that Keir Starmer was talking about today.”

‘Don’t forget, don’t forgive’: Starmer urges voters to punish Truss for financial mayhem

18:59 , Rory Sullivan

Keir Starmer has urged voters to punish Liz Truss’s government for the sterling crisis it has caused.

“Don’t forget. Don’t forgive. The only way forward is to stop this – with a Labour government,” he told conference attendees in Liverpool.

‘Don’t forget, don’t forgive’: Starmer urges voters to punish Truss for market mayhem

Opinion: All Keir Starmer had to do was to sound reasonably coherent – and he succeeded

19:20 , Rory Sullivan

John Rentoul has thisappraisal of Keir Starmer’s conference speech earlier today:

It wasn’t a great speech, but it didn’t have to be. Keir Starmer is not a great speaker, but he doesn’t have to be. He had to read out a reasonably coherent text, remind people that he once had a real job, and look like a plausible prime minister. He succeeded triumphantly on all points.

He faced a huge political opportunity, handed to him on a plate by an incompetent, overconfident government, and he didn’t make a fool of himself.

All Keir Starmer had to do was to sound reasonably coherent – and he succeeded

Belarusian opposition leader to be special guest at Labour conference

19:40 , Rory Sullivan

Belarus opposition leader Sviatlana Tsikhanouskaya will speak at the final day of the Labour conference, it has been announced.

She will tell delegates that her country’s fate is linked to neighbouring Ukraine, arguing that both are under threat from Vladimir Putin’s “Russian imperialism”.

The Belarusian autocrat Alexander Lukashenko allowed Moscow’s troops to use his territory as a base for their invasion of Ukraine.

A Labour spokesman said: “In 2020 Sviatlana Tsikhanouskaya bravely stood for election as president of Belarus against Putin-backed dictator Alexander Lukashenko, inspiring people to take to the streets after election victory was taken away by the armed forces.

“Since then she has been forced to flee her home country but has remained a leader of the peaceful resistance against the Putin backed oppressive regime in Belarus and a prominent advocate of political and civil freedom.”

Politics sketch: Keir Starmer’s speech was a penalty shootout against a team that’s already gone home

19:53 , Rory Sullivan

Our political sketch writer Tom Peck has this piece on Labour’s new-found confidence:

Starmer’s speech was a penalty shootout into an open goal | Tom Peck

Sussex Police apologises in home secretary row

20:11 , Rory Sullivan

Sussex Police has apologised after the home secretary Suella Braverman accused of it “playing identity politics and denying biology”.

The force was criticised for publishing a recent press release under the title “Woman convicted of historic offences against children in Sussex”.

The case referred to this month’s sentencing of the transgender woman Sally Ann Dixon, who was jailed for 20 years for 30 indecent assaults. She committed the crimes before she transitioned.

In response to the public backlash against its press release, Sussex Police tweeted that it does not “tolerate any hateful comments towards their gender identity regardless of crimes committed”.

“This is irrelevant to the crime that has been committed and investigated,” it added.

Suella Braverman later said the force should “focus on catching criminals not policing pronouns”.

Liz Truss bad for Britain on world stage, majority of voters say

20:36 , Rory Sullivan

Britons do not trust prime minister Liz Truss to represent the UK’s interests well overseas, a new poll has found.

More than 52 per cent of respondents said they have little or no confidence that she will perform well on the world stage.

My colleague Kim Sengupta reports:

Liz Truss bad for Britain on world stage, majority of voters say

Huq’s comments about chancellor were ‘reprehensible’, says Miliband

21:00 , Rory Sullivan

Labour’s Ed Miliband has spoken to the BBC about Rupa Huq, who had the party whip removed today for calling chancellor Kwasi Kwarteng “superficially” black.

Asked if she would should become a Labour MP again after she apologised, he said: “Well, that’s a matter for Keir Starmer, but look, let me just say these are appalling comments that Rupa Huq made.

“There is absolutely no place for these kind of comments in our politics and the party will have to decide what it does in terms of her future, but I mean these comments are reprehensible and awful.”

IMF criticises Truss’s economic strategy

21:20 , Rory Sullivan

The International Monetary Fund (IMF) appears to have criticised the government’s mini-Budget, which caused the pound to plunge and gilt yields to surge.

“Given elevated inflation pressures in many countries, including UK, we do not recommend large untargeted fiscal packages at this juncture, as it is important fiscal policy does not work at cross purposes to monetary policy,” the IMF said.

Tory grandee says ‘time may have come’ for House of Lords overhaul

21:40 , Rory Sullivan

A Tory grandee has said it might be time for an overhaul of the House of Lords.

During a lecture at the University of Edinburgh, Sir Malcolm Rifkind, a former Conservative minister, first spoke of his opposition to Scottish independence.

He added: “I think one change that is worth considering is a reform not in Edinburgh or Cardiff, but in Westminster itself.

“We have an upper house, the House of Lords - it does very good work, I’m not going to be rude or unpleasant about it, it does a lot of very important revising work.

“But I wonder whether the time has come to have something that reflects more the age we live in, perhaps something more of a senate.

“Maybe elected, not necessarily 100 per cent elected.

“I think there is a case for appointing members who have already made a contribution to some aspect of public life and whose advice and experience would be valuable.”