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Be in absolutely no doubt, the prime minister is in deep trouble.

She has sacked her chancellor, committed a second major U-turn on her mini-budget, and junked the core of her economic policy.

And she did so, awkwardly and uncomfortably, in no more than eight minutes.

Government descends into chaos as PM faces battle to survive – follow latest updates

In an excruciating news conference – so short the gathered political press pack were left open-mouthed as she departed – Liz Truss made her already perilous political position even worse.

The aim of this breakneck change in direction was to attempt to calm markets and her Conservative colleagues, but instead, she left huge questions unanswered.

It’s worth underlining the significance of what the prime minister just announced.

More on Liz Truss

First, on policy, she has buckled and reversed her position on corporation tax. She will now go ahead with the increase proposed by her leadership rival, Rishi Sunak.

During the contest to replace Boris Johnson as Tory leader, Ms Truss had said increasing the rate from 19% to 25% next April would “put off people who want to invest in Britain” and amount to “cutting off our nose to spite our face”.

It was a significant part of the platform on which she was elected Tory leader, now humiliatingly discarded in order to bring in around £18bn to fill the black hole left by last month’s mini-budget.

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‘You’re out of your depth, prime minister?’

Read more:
Ministers say PM ‘cannot survive’ – so how could Liz Truss be removed?

She said it was a “down payment” on the medium-term fiscal plan due to be set out on 31 October – a signal to the markets that she’s prepared to make more reversals if necessary.

Does she still believe it will put people off investing? We don’t know because she didn’t stick around at the news conference long enough to be asked.

On the sacking of Kwasi Kwarteng as chancellor, she expressed her sorrow – but again, did not answer the obvious question about how she can possibly justify his departure without her own.

British Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng walk outside a hotel, as Britain's Conservative Party's annual conference continues, in Birmingham, Britain, October 4, 2022. REUTERS/Toby Melville
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Liz Truss and her former chancellor Kwasi Kwarteng

The chancellor, who was supposed to be one of her closest political friends, was also humiliatingly discarded – along with the government’s radical economic mission for which she had asked him to lead the charge.

The way in which the prime minister delivered this news really matters. Not just because of the lack of scrutiny that came from only taking four questions and barely engaging with them in the answers – but because her party, and indeed the markets, will have been watching to see how she handled the situation.

That news conference was not just about communicating with the public. The messages I received from Conservative MPs ahead of the news conference made clear that she needed to put in a really strong, reassuring performance.

Their fears are that she is out of her depth. They want to see that she can handle being prime minister. And the early signs are that her performance today failed on both fronts.

One MP has messaged me saying it was “shockingly bad”, even by Liz Truss’s standards.

Jeremy Hunt says that while now is not the right time to change Prime Minister, he hasn't ruled out a return to frontline politics
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Jeremy Hunt has replaced Kwasi Kwarteng as chancellor

Jeremy Hunt’s installation as the new chancellor may be intended to show the ship is being steadied – that someone with deep experience in government is at the helm of the economy and that markets do not need to fear further surprises.

But power flows from Number 10. The prime minister is the head of government. The prime minister is the person who must command the confidence of the Commons if they are to remain in post.

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This prime minister looks out of her depth. “It’s not going to last,” is how one cabinet minister put it to me.

:: The new chancellor, Jeremy Hunt, will talk to Sky News at 7.15am.

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Read more:
Latest updates from Gatwick Airport
What are your rights if your flight is affected?

Passengers at Gatwick Airport after flights were cancelled. Pic: PA
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Passengers at Gatwick Airport after flights were cancelled. Pic: PA

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

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Starmer says UK will ‘set out a path’ to raise defence spending to 2.5%

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Starmer says UK will 'set out a path' to raise defence spending to 2.5%

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

Volodymyr Zelenskyy, Nato Secretary General Mark Rutte and  Keir Starmer, during a trilateral meeting in 10 Downing Street.
Pic: PA
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Ukraine leader Volodymyr Zelenskyy, Sir Keir Starmer and NATO boss Mark Rutte in October. Pic: PA

Ukraine war latest: Follow live updates

A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

Read more from Sky News:
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Putin warns US and UK over ‘escalation of aggressive actions’

While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Read more:
Latest updates from Gatwick Airport
What are your rights if your flight is affected?

Passengers at Gatwick Airport after flights were cancelled. Pic: PA
Image:
Passengers at Gatwick Airport after flights were cancelled. Pic: PA

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

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