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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. | 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. | 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". | 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. |
| Other scenarios being discussed by some Tory MPs include the chancellor resigning or the prime minister being ousted, with some talking about a joint team of Rishi Sunak and Penny Mordaunt as replacements. | Other scenarios being discussed by some Tory MPs include the chancellor resigning or the prime minister being ousted, with some talking about a joint team of Rishi Sunak and Penny Mordaunt as replacements. |
| Under this scenario, Tory MPs would propose just one person to succeed the prime minister, with the other individual taking a senior cabinet role, avoiding the need for another leadership contest. | Under this scenario, Tory MPs would propose just one person to succeed the prime minister, with the other individual taking a senior cabinet role, avoiding the need for another leadership contest. |
| In a tweet that laid bare Tory tensions, former cabinet minister Nadine Dorries accused those of agitating to remove Ms Truss of a plot to "overturn democracy". | |
| 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 |
| What was in the mini-budget and what has changed? | |
| Mr Kwarteng had been in Washington DC for a meeting of global finance ministers at the International Monetary Fund's (IMF) annual meeting. | Mr Kwarteng had been in Washington DC for a meeting of global finance ministers at the International Monetary Fund's (IMF) annual meeting. |
| 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. |
| His mini-budget last month included £45bn of tax cuts, funded by borrowing, which spooked financial markets and prompted a drop in the value of the pound. | His mini-budget last month included £45bn of tax cuts, funded by borrowing, which spooked financial markets and prompted a drop in the value of the pound. |
| He was forced to scrap plans to cut the top rate of income tax, which made up just £2bn of the package. | He was forced to scrap plans to cut the top rate of income tax, which made up just £2bn of the package. |
| But continuing market turmoil prompted an intervention from the Bank of England, which involved buying government bonds to stabilise their value. | But continuing market 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. |
| 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 |
| There has been speculation the government could reverse its policy of scrapping a planned rise in corporation tax, which is a tax on the profits of UK limited companies. | There has been speculation the government could reverse its policy of scrapping a planned rise in corporation tax, which is a tax on the profits of UK limited companies. |
| A key plank of Ms Truss's Tory leadership pitch was ditching the rise to the tax, which was set to increase from 19% to 25% in 2023. | |
| 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 is due to make a financial statement on 31 October - but he may be forced to act much sooner than that, if the markets and the mood among Tory MPs swings against him. | Mr Kwarteng is due to make a financial statement on 31 October - but he may be forced to act much sooner than that, if the markets and the mood among Tory MPs swings against him. |
| 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 |
| Ms Truss's supporters are urging her to stick to the course she set just 39 days ago when she became PM. | Ms Truss's supporters are urging her to stick to the course she set just 39 days ago when she became PM. |
| Sir Christopher Chope 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 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. | He added that a U-turn would be a "complete betrayal" of what she believed in. |
| When asked if changes to the mini-budget were coming on Friday, trade minister Greg Hands told the BBC's Today programme "I'm not expecting that". | When asked if changes to the mini-budget were coming on Friday, trade minister Greg Hands told the BBC's Today programme "I'm not expecting that". |
| Mr Hands said it was now time for the Conservative Party to unite behind the prime minister, who won the Tory leadership contest in the summer. | Mr Hands said it was now time for the Conservative Party to unite behind the prime minister, who won the Tory leadership contest in the summer. |
| 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? |
| But other Tory MPs say further U-turns are inevitable and should come immediately to calm market jitters. | But other Tory MPs say further U-turns are inevitable and should come immediately to calm market jitters. |
| 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". |
| 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". |
| 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. |