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The chancellor has insisted he is “not going anywhere” amid the economic turmoil – and when asked if he was about to do a U-turn on corporation tax he said: “Let’s see”.

Speaking earlier in the US where he is attending IMF meetings, Kwasi Kwarteng told reporters that he remains “totally focused” on delivering the government’s growth plan.

Later, in response to a question about how markets “have improved today because they think you’re about to do a U-turn on corporation tax”, Mr Kwarteng said: “Let’s see,” according to The Telegraph.

It is his strongest indication yet of a possible change of course.

During a visit to Washington, Mr Kwarteng was asked whether he and Liz Truss, the prime minister, will be in their jobs this time next month.

“Absolutely. 100%. I’m not going anywhere,” he said.

The chancellor admitted there has been some “domestic turbulence” since he unveiled his tax-cutting mini-budget at the end of September and the pound fell to record lows against the dollar, but said there is “a very dicey situation globally”.

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Truss is out ‘and we have the numbers’, says Tory MP – politics latest

“I speak to Number 10, the PM all the time, and we are totally focused on delivering the growth plan,” he said.

Pushed on whether there will be any more reversals of policies in the mini-budget, Mr Kwarteng said: “I am totally focused on the growth agenda.”

Last week, after open revolt from Tory MPs and a surge in support for Labour in the polls, Ms Truss and Mr Kwarteng abandoned the plan to abolish the highest 45% tax rate.

Sky News understands discussions are under way in Downing Street over whether to scrap some of the contentious proposals which remain in the chancellor’s tax-cutting mini-budget.

The proposed changes to corporation tax and dividend tax are those understood to be under discussion.

Downing Street insisted earlier on Thursday that there will be no more U-turns on policies in the government’s tax-cutting mini-budget despite pressure from Conservative MPs for changes to be made.

Asked to confirm there would be no further reversals, the prime minister’s official spokesman said: “Yes, as I said to a number of questions on this yesterday – and the position has not changed from what I set out to you all then.”

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Discussions happening over whether to scrap parts of the mini-budget

Ms Truss faces open revolt in her party over the £45bn package of unfunded tax cuts in the mini-budget, which unleashed chaos in the markets when it was announced last month.

Former home secretary Priti Patel became the latest senior Tory to suggest the government could be forced into another U-turn, telling Sky News “market forces” could make a reversal on corporation tax cuts unavoidable.

The chancellor will set out his debt-cutting plan in more detail on 31 October, having bowed to pressure to bring the date forward from 23 November given the economic turbulence.

Earlier on Thursday, James Cleverly, the foreign secretary, refused to say there would be no more reversals.

He told Sky News the Halloween statement would give “a more holistic assessment of the public finances and our response to the global headwinds that every democracy, every economy in the world is facing”.

Pressed on the plan to axe the increase in corporation tax from 19% to 25% in April, Mr Cleverly said it is “absolutely right” the government helps businesses to “stay competitive” and “stay afloat”.

The Treasury had vowed to reduce the rate of income tax on dividends by 1.25 percentage points.

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How long can Truss stay in power?

Mr Kwarteng is meeting with International Monetary Fund (IMF) leaders in Washington DC today, after the institution’s chief economist said tax cuts threatened to cause “problems” for the UK economy.

Speaking at a press conference in Washington, the managing director of the IMF said it is sometimes right for a “recalibration” of policies as she was questioned over reports of further U-turns after the mini-budget market chaos.

Kristalina Georgieva said: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy.”

Read more:
What on earth is happening in UK markets?
What are bonds and where do they fit in the mini-budget crisis?

Meanwhile, in a post on social media on Thursday, former Conservative chancellor George Osborne questioned why Ms Truss and Mr Kwarteng would wait for the chancellor’s statement on 31 October to perform an “inevitable U-turn” on their mini-budget.

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Tories ‘must get back to being fiscally responsible’

On Wednesday, Mel Stride, the Tory chairman of the Commons Treasury Committee, said that given Ms Truss’s commitments to protect public spending, there was a question over whether any plan that did not include “at least some element of further row back” on the tax-slashing package can reassure investors.

While David Davis, the Tory former minister, called the mini-budget a “maxi-shambles” and suggested reversing some of the tax cuts would allow Ms Truss and Mr Kwarteng to avert leadership challenges for a few months.

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Four charged after £7m of damage caused to aircraft at RAF Brize Norton

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Four charged after £7m of damage caused to aircraft at RAF Brize Norton

Four people have been charged after £7m of damage was caused to two Voyager aircraft at RAF Brize Norton.

The investigation into the incident early on Friday 20 June was led by counter-terror police.

They have been charged with conspiracy to enter a prohibited place knowingly for a purpose prejudicial to the safety or interests of the UK – and conspiracy to commit criminal damage.

Two Voyager aircraft at RAF Brize Norton were damaged. PA file pic
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Two Voyager aircraft at RAF Brize Norton were damaged. PA file pic

The four charged have been identified as:

• Amy Gardiner-Gibson, 29, of no fixed abode

• Daniel Jeronymides-Norie, 35, from London

• Jony Cink, 24, of no fixed abode

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• Lewie Chiaramello, 22, from London

They will appear at Westminster Magistrates’ Court later today.

Brize Norton

A 41-year-old woman arrested last week on suspicion of assisting an offender has been released on bail until 19 September.

Meanwhile, a 23-year-old man detained on Saturday was released without charge.

Last month’s incident at RAF Brize Norton in Oxfordshire was claimed by the activist group Palestine Action.

Yesterday, MPs voted to proscribe the group as a terrorist organisation.

The legislation passed with 385 MPs voting in favour, while 26 were against.

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No 10 backs Chancellor Rachel Reeves and says she ‘is going nowhere’ after tearful appearance in Commons

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No 10 backs Chancellor Rachel Reeves and says she 'is going nowhere' after tearful appearance in Commons

Rachel Reeves has not offered her resignation and is “going nowhere”, Downing Street has said, following her tearful appearance in the House of Commons.

A Number 10 spokesperson said the chancellor had the “full backing” of Sir Keir Starmer, despite Ms Reeves looking visibly upset during Prime Minister’s Questions.

Politics latest: ‘A moment of intense peril’ for PM

A spokesperson for the chancellor later clarified that Ms Reeves had been affected by a “personal matter” and would be working out of Downing Street this afternoon.

Politics latest: Reeves looks visibly upset in Commons

UK government bond prices fell by the most since October 2022, and the pound tumbled after Ms Reeves’s Commons appearance, while the yield on the 10-year government bond, or gilt, rose as much as 22 basis points at one point to around 4.68%.

Downing Street’s insistence came despite Sir Keir refusing to guarantee that Ms Reeves would stay as chancellor until the next election following the fallout from the government’s recent welfare U-turn.

Tory leader Kemi Badenoch branded the chancellor the “human shield” for the prime minister’s “incompetence” just hours after he was forced to perform a humiliating U-turn over his controversial welfare bill.

Emotional Reeves a painful watch – and reminder of tough decisions ahead

It is hard to think of a PMQs like it – it was a painful watch.

The prime minister battled on, his tone assured, even if his actual words were not always convincing.

But it was the chancellor next to him that attracted the most attention.

Rachel Reeves looked visibly upset.

It is hard to know for sure right now what was going on behind the scenes, the reasons – predictable or otherwise – why she appeared to be emotional, but it was noticeable and it was difficult to watch.

To read more of Ali Fortescue’s analysis, click here

Speaking at Prime Minister’s Questions, Ms Badenoch said: “This man has forgotten that his welfare bill was there to plug a black hole created by the chancellor. Instead they’re creating new ones.”

Turning to the chancellor, the Tory leader added: “[She] is pointing at me – she looks absolutely miserable.

“Labour MPs are going on the record saying that the chancellor is toast, and the reality is that she is a human shield for his incompetence. In January, he said that she would be in post until the next election. Will she really?”

Not fully answering the question, the prime minister replied: “[Ms Badenoch] certainly won’t.

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Welfare vote ‘a blow to the prime minister’

“I have to say, I’m always cheered up when she asks me questions or responds to a statement because she always makes a complete mess of it and shows just how unserious and irrelevant they are.”

Mrs Badenoch interjected: “How awful for the chancellor that he couldn’t confirm that she would stay in place.”

The prime minister’s watered-down Universal Credit and Personal Independent Payment Bill, aimed at saving £5bn, was backed by a majority of 75 in a tense vote on Tuesday evening.

A total of 49 Labour MPs voted against the bill – the largest rebellion in a prime minister’s first year in office since 47 MPs voted against Tony Blair’s Lone Parent benefit in 1997, according to Professor Phil Cowley from Queen Mary University.

After multiple concessions made due to threats of a Labour rebellion, many MPs questioned what they were voting for as the bill had been severely stripped down.

They ended up voting for only one part of the plan: a cut to Universal Credit (UC) sickness benefits for new claimants from £97 a week to £50 from 2026/7.

Ms Badenoch said the climbdown was proof that Sir Keir was “too weak to get anything done”.

Read more:
The PM faced down his party on welfare and lost
Labour welfare cuts ‘Dickensian’, says rebel MP

Ms Reeves has also borne a lot of the criticism over the handling of the vote, with some MPs believing that her strict approach to fiscal rules has meant she has approached the ballooning welfare bill from the standpoint of trying to make savings, rather than getting people into work.

Experts have now warned that the welfare U-turn, on top of reversing the cut to winter fuel, means that tax rises in the autumn are more likely – with Ms Reeves now needing to find £5bn to make up for the policy U-turns.

Asked by Ms Badenoch whether he could rule out further tax rises – something Labour promised it would not do on working people in its manifesto – Sir Keir said: “She knows that no prime minister or chancellor ever stands at the despatch box and writes budgets in the future.

“But she talks about growth, for 14 years we had stagnation, and that is what caused the problem.”

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Prosecutors consider more charges against Lucy Letby

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Prosecutors consider more charges against Lucy Letby

Prosecutors are considering whether to bring further criminal charges against Lucy Letby over the deaths of babies at two hospitals where she worked

The Crown Prosecution Service said it had received “a full file of evidence from Cheshire Constabulary asking us to consider further allegations in relation to deaths and non-fatal collapses of babies at the Countess of Chester Hospital and Liverpool Women’s Hospital”.

“We will now carefully consider the evidence to determine whether any further criminal charges should be brought,” it added.

“As always, we will make that decision independently, based on the evidence and in line with our legal test.”

Letby, 35, was found guilty of murdering seven children and attempting to murder seven more between June 2015 and June 2016 while working in the neonatal unit of the Countess of Chester Hospital and is currently serving 15 whole-life orders.

lucy letby
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Letby worked at the Countess of Chester Hospital and Liverpool Women’s Hospital

She is understood to have carried out two work placements at Liverpool Women’s Hospital, where she trained as a student, between October and December 2012, and January and February 2015.

Police said in December that Letby was interviewed in prison as part of an investigation into more baby deaths and non-fatal collapses.

A Cheshire Constabulary spokesperson said: “We can confirm that Cheshire Constabulary has submitted a full file of evidence to the CPS for charging advice regarding the ongoing investigation into deaths and non-fatal collapses of babies at the neo-natal units of both the Countess of Chester Hospital and the Liverpool Women’s Hospital as part of Operation Hummingbird.”

Detectives previously said the investigation was looking into the full period of time that Letby worked as a nurse, covering the period from 2012 to 2016 and including a review of 4,000 admissions of babies.

Letby’s lawyer Mark McDonald said: “The evidence of the innocence of Lucy Letby is overwhelming,” adding: “We will cross every bridge when we get to it but if Lucy is charged I know we have a whole army of internationally renowned medical experts who will totally undermine the prosecution’s unfounded allegations.”

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Three managers at the hospital where Lucy Letby worked have been arrested on suspicion of gross negligence manslaughter.

On Tuesday, it was confirmed that three managers at the Countess of Chester hospital had been arrested on suspicion of gross negligence manslaughter in a separate investigation.

Read more from Sky News:
‘Catastrophic failure’ that led to Heathrow power outage revealed
Man charged with murder of 93-year-old woman in Cornwall

Police said the suspects, who occupied senior positions at the hospital between 2015 and 2016, have all been bailed pending further inquiries.

There is also an investigation into corporate manslaughter at the hospital, which began in October 2023.

A public inquiry has also been examining the hospital’s response to concerns raised about Letby before her arrest.

In May, it was announced the inquiry’s final report into how the former nurse was able to commit her crimes will now be published early next year.

Earlier this year, Letby’s lawyers called for the suspension of the inquiry, claiming there was “overwhelming and compelling evidence” that her convictions were unsafe.

In February, an international panel of neonatologists and paediatric specialists told reporters that poor medical care and natural causes were the reasons for the collapses and deaths.

Their evidence has been passed to the Criminal Cases Review Commission (CCRC), which investigates potential miscarriages of justice, and Letby’s legal team hopes her case will be referred back to the Court of Appeal.

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