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| Mini-budget U-turn on table as Kwasi Kwarteng flies home | Mini-budget U-turn on table as Kwasi Kwarteng flies home |
| (32 minutes later) | |
| The chancellor will speak with Prime Minister Liz Truss later on Friday | The chancellor will speak with Prime Minister Liz Truss later on Friday |
| Chancellor Kwasi Kwarteng has cut short his visit to the US for urgent talks in Downing Street, with a U-turn over the mini-budget on the table. | Chancellor Kwasi Kwarteng has cut short his visit to the US for urgent talks in Downing Street, with a U-turn over the mini-budget on the table. |
| Mr Kwarteng is flying home early from Washington DC after days of open revolt among Tory MPs over his economic plan. | |
| Prime Minister Liz Truss is facing calls to change her plan to calm market turbulence and reassure her party. | Prime Minister Liz Truss is facing calls to change her plan to calm market turbulence and reassure her party. |
| No 10 downplayed speculation of imminent changes to the plan after reports suggested parts may be ditched. | |
| A Downing Street source told the BBC the prime minister thinks the chancellor is "doing an excellent job and they are in lockstep". | |
| Many Tory MPs think a further change of plan is inevitable, following a previous U-turn on Ms Truss's plan to scrap the top rate of income tax. | Many Tory MPs think a further change of plan is inevitable, following a previous U-turn on Ms Truss's plan to scrap the top rate of income tax. |
| Live updates: Chancellor to return for crunch talks | Live updates: Chancellor to return for crunch talks |
| Chris Mason: Can Liz Truss salvage her premiership? | Chris Mason: Can Liz Truss salvage her premiership? |
| Pound rises on talk of mini-budget U-turn | Pound rises on talk of mini-budget U-turn |
| A mini-budget announced by Mr Kwarteng last month - featuring a £45bn raft of tax cuts, funded by borrowing - spooked financial markets and prompted a drop in the value of the pound. | A mini-budget announced by Mr Kwarteng last month - featuring a £45bn raft of tax cuts, funded by borrowing - spooked financial markets and prompted a drop in the value of the pound. |
| The continuing turmoil prompted an intervention from the Bank of England, which involved buying government bonds to stabilise their value. | The continuing turmoil prompted an intervention from the Bank of England, which involved buying government bonds to stabilise their value. |
| The Bank has said it is withdrawing that programme of emergency support as planned on Friday. But the pound has rallied in value following speculation in Westminster that another U-turn was in the offing. | The Bank has said it is withdrawing that programme of emergency support as planned on Friday. But the pound has rallied in value following speculation in Westminster that another U-turn was in the offing. |
| Mr Kwarteng had been in Washington DC for a meeting of global finance ministers. | Mr Kwarteng had been in Washington DC for a meeting of global finance ministers. |
| Speaking about the change in his travel plans, a source close to the chancellor said he "really wants to engage not only with government colleagues, but also MPs" over the financial plans. | Speaking about the change in his travel plans, a source close to the chancellor said he "really wants to engage not only with government colleagues, but also MPs" over the financial plans. |
| No 11 dismissed a comparison to the Greek financial crisis of 2011, when its finance minister was hauled back from an international meeting to meet the country's prime minister. | No 11 dismissed a comparison to the Greek financial crisis of 2011, when its finance minister was hauled back from an international meeting to meet the country's prime minister. |
| Trade Minister Greg Hands told Sky News it was "not unusual" for a minister to cut short an international visit by a day. | Trade Minister Greg Hands told Sky News it was "not unusual" for a minister to cut short an international visit by a day. |
| The chancellor began his journey back to the UK a day earlier than planned | The chancellor began his journey back to the UK a day earlier than planned |
| The tense atmosphere in Westminster was apparent as the BBC spoke to dozens of sources across Parliament and the government on Thursday. | The tense atmosphere in Westminster was apparent as the BBC spoke to dozens of sources across Parliament and the government on Thursday. |
| "It's checkmate, we're screwed," one Tory MP remarked. | "It's checkmate, we're screwed," one Tory MP remarked. |
| "There is no question in my mind, they'll have to junk loads of this stuff and U-turn," another said. | "There is no question in my mind, they'll have to junk loads of this stuff and U-turn," another said. |
| If the government does announce changes to its plans it is not clear when this might happen. | If the government does announce changes to its plans it is not clear when this might happen. |
| Mr Kwarteng has said he was "not going anywhere" and when asked if he and Ms Truss would still be in their jobs this time next month, replied: "Absolutely, 100%." | Mr Kwarteng has said he was "not going anywhere" and when asked if he and Ms Truss would still be in their jobs this time next month, replied: "Absolutely, 100%." |
| The chancellor is set to spell out how he will pay for the government's £43bn package of tax cuts and get the UK's national debt falling in a statement on 31 October, alongside an independent economic forecast. | The chancellor is set to spell out how he will pay for the government's £43bn package of tax cuts and get the UK's national debt falling in a statement on 31 October, alongside an independent economic forecast. |
| Although the government has already scrapped its plan to scrap the top rate of income tax, this only made up £2bn of the tax cuts announced by the chancellor last month. | Although the government has already scrapped its plan to scrap the top rate of income tax, this only made up £2bn of the tax cuts announced by the chancellor last month. |
| While some Tory MPs think the government's tax-cutting plans should be reversed, others believe the help with energy bills should be more targeted. | While some Tory MPs think the government's tax-cutting plans should be reversed, others believe the help with energy bills should be more targeted. |
| Watch: I am not going anywhere - Kwasi Kwarteng speaking on Thursday | Watch: I am not going anywhere - Kwasi Kwarteng speaking on Thursday |
| Watch: I am not going anywhere - Kwasi Kwarteng speaking on Thursday | Watch: I am not going anywhere - Kwasi Kwarteng speaking on Thursday |
| Among the possible U-turns, there has been speculation the government could reverse its plan for corporation tax. | Among the possible U-turns, there has been speculation the government could reverse its plan for corporation tax. |
| Ms Truss has pledged to scrap a planned rise to the tax, which was set to increase from 19% to 25% in 2023. | Ms Truss has pledged to scrap a planned rise to the tax, which was set to increase from 19% to 25% in 2023. |
| When asked about the positive market response to the speculation of a U-turn on corporation tax, Mr Kwarteng told the Daily Telegraph: "Let's see." | When asked about the positive market response to the speculation of a U-turn on corporation tax, Mr Kwarteng told the Daily Telegraph: "Let's see." |
| However, he added that he still thought ensuring "competitive" tax rates for businesses was a "great idea". | However, he added that he still thought ensuring "competitive" tax rates for businesses was a "great idea". |
| Former home secretary Priti Patel told Sky News the market would now "dictate" the prime minister's decision on corporation tax "primarily because we want to see stability". | Former home secretary Priti Patel told Sky News the market would now "dictate" the prime minister's decision on corporation tax "primarily because we want to see stability". |
| Other scenarios being discussed by some Tory MPs include the chancellor resigning or the prime minister being ousted. | Other scenarios being discussed by some Tory MPs include the chancellor resigning or the prime minister being ousted. |
| But there is little agreement on what should happen next or who should replace Ms Truss if she is removed. | But there is little agreement on what should happen next or who should replace Ms Truss if she is removed. |
| According to the Times, senior Conservatives are holding talks about replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, who both ran for the leadership this summer. | According to the Times, senior Conservatives are holding talks about replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt, who both ran for the leadership this summer. |
| Unlike the summer leadership contest, MPs would propose just one person to succeed the PM, with the other individual taking a senior cabinet role, the paper reported. | Unlike the summer leadership contest, MPs would propose just one person to succeed the PM, with the other individual taking a senior cabinet role, the paper reported. |
| The pitfalls lying ahead for an embattled PM | The pitfalls lying ahead for an embattled PM |
| Where are the other bits of government's growth plan? | Where are the other bits of government's growth plan? |
| What will the tax changes mean for you? | What will the tax changes mean for you? |
| Senior Tories are continuing to call for the government to change course. | Senior Tories are continuing to call for the government to change course. |
| Mel Stride, the chairman of the Treasury Select Committee, called on the chancellor to make a "significant" announcement "sooner rather than later". | Mel Stride, the chairman of the Treasury Select Committee, called on the chancellor to make a "significant" announcement "sooner rather than later". |
| However, he told BBC Breakfast that he did not back a change in leadership, saying "the last thing we need is more market turbulence". | However, he told BBC Breakfast that he did not back a change in leadership, saying "the last thing we need is more market turbulence". |
| Former minister Johnny Mercer called for a "course correction" from No 10, describing the impact of rising mortgage rates on people who want to buy a home as "politically unsurvivable". | Former minister Johnny Mercer called for a "course correction" from No 10, describing the impact of rising mortgage rates on people who want to buy a home as "politically unsurvivable". |
| Scottish Conservative leader Douglas Ross called on the prime minister and chancellor to "get a grip" on the economy. | Scottish Conservative leader Douglas Ross called on the prime minister and chancellor to "get a grip" on the economy. |
| But, asked whether he believed Ms Truss could win the next general election, he replied: "Yes." | But, asked whether he believed Ms Truss could win the next general election, he replied: "Yes." |
| Other Tory MPs expressed support for the prime minister and said she must not reverse her plans. | Other Tory MPs expressed support for the prime minister and said she must not reverse her plans. |
| Sir Christopher Chope, a Truss backer, told the BBC Two's Newsnight: "If we were to increase corporation tax having said that we're not going to, that would be totally inconsistent with the prime minister's policy of promoting growth, growth and growth." | Sir Christopher Chope, a Truss backer, told the BBC Two's Newsnight: "If we were to increase corporation tax having said that we're not going to, that would be totally inconsistent with the prime minister's policy of promoting growth, growth and growth." |
| He added that a U-turn would be a "complete betrayal" of what she believed in, saying he did not think it would not happen. | He added that a U-turn would be a "complete betrayal" of what she believed in, saying he did not think it would not happen. |
| Wales Office Minister David Davies said the government had to be "flexible" in what he described as an economic "storm", adding that Mr Kwarteng should remain chancellor. | Wales Office Minister David Davies said the government had to be "flexible" in what he described as an economic "storm", adding that Mr Kwarteng should remain chancellor. |