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Kwasi Kwarteng has been sacked as chancellor three weeks after his mini-budget unleashed chaos on the economy and Jeremy Hunt appointed in his place.

Mr Kwarteng was appointed to the role by Liz Truss only 38 days ago, making him the second-shortest serving chancellor after Iain Macleod, who died a month after being handed the job by Edward Heath.

Number 10 announced an hour after his sacking on Friday afternoon that former foreign secretary Mr Hunt was replacing him.

Liz Truss appoints Jeremy Hunt as chancellor. Pic: Andrew Parsons / No 10 Downing Street
Image:
Liz Truss appoints Jeremy Hunt as chancellor. Pic: Andrew Parsons / No 10 Downing Street

Unapologetic Truss says she ‘acted decisively’ in tense news conference – follow latest updates

Mr Hunt’s appointment, just an hour after his predecessor was sacked, is a sign Ms Truss is trying to get her opponents on side.

Mr Kwarteng’s downfall was set in motion by the mini-budget on 23 September, in which he announced £45bn in unfunded tax cuts.

The mini-budget pushed the pound to a record low against the dollar, sent the cost of government borrowing and mortgage rates up and led to an unprecedented intervention by the Bank of England.

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Chris Philp, who was heavily involved in plans for the mini-budget, has also lost his job as chief secretary to the Treasury but has been moved to the Cabinet Office as paymaster general.

In Mr Kwarteng’s letter to Ms Truss accepting he had been sacked, he said: “You have asked me to stand aside as your chancellor. I have accepted.”

He said he accepted the job “in full knowledge that the situation we faced was incredibly difficult, with rising global interest rates and energy prices”.

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Moment Kwarteng sacking announced

But he said the PM’s “vision of optimism, growth and change was right” and “following the status quo was simply not an option”.

He finished his letter by saying they have been “colleagues and friends for many years” and he believes her “vision is the right one”.

“It has been an honour to serve as your first chancellor. Your success is this country’s success and I wish you well,” he wrote.

Moments later, he was seen leaving No 11 Downing Street and was driven away from the home he had only occupied for just over a month.

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Ms Truss replied to his letter by saying she is “deeply sorry to lose” him from government and said “I deeply respect the decision you have taken today” – despite her sacking him.

She said they “share the same vision” for the UK and praised him for the energy price guarantee and the energy bill relief scheme, saying “thanks to your intervention, families will be able to heat their homes this winter and thousands of jobs and livelihoods will be saved”.

Ms Truss and Mr Kwarteng, who have been close friends for years, have insisted over the past few weeks that the turbulence in the UK economy was part of a global problem exacerbated by the war in Ukraine and post-pandemic recovery.

But last week, after open revolt by Tory MPs and a record surge for Labour in the polls, the prime minister announced the first major reversal of mini-budget policies when she backtracked on scrapping the 45p top rate of income tax.

Read more:

Ministers say PM ‘cannot survive’ – so how could Liz Truss be removed?
Corporation tax raised in second major U-turn of mini-budget

Britannia Unchained on tour....#unplugged #unleashed #howthelightgetsin #festivalvibes. Pic: Liz Truss/Instagram
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Kwasi Kwarteng and Liz Truss have been close friends for a long time. Pic: Liz Truss/Instagram

The second U-turn came on Friday afternoon, when Ms Truss confirmed the government will raise corporation tax from 19% to 25% next April, despite promising not to do so in the mini-budget.

An hour before being sacked, Mr Kwarteng had landed back in London after cutting short meetings with the International Monetary Fund in Washington DC.

He had been due to make a medium-term fiscal statement on 31 October, which will now be made by Mr Hunt.

The Conservative Party is now on its fifth chancellor in the past three years – Mr Hunt, Mr Kwarteng, Nadhim Zahawi, Rishi Sunak and Sajid Javid.

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Mr Hunt is the seventh Tory chancellor in 12 years.

There is now a renewed focus on whether Ms Truss can remain in the job.

A Tory MP told Sky News: “The idea that the prime minister can just scapegoat her chancellor and move on is deluded.

“This is her vision. She signed off on every detail and she defended it.”

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Russia launches major deadly missile and drone attack on Ukraine

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Russia launches major deadly missile and drone attack on Ukraine

Russia launched a major overnight missile and drone attack on Ukraine that killed at least three people – including a four-year-old child.

Officials say Russia fired more than 650 drones and three dozen missiles in an assault that began during the night and stretched into daylight hours Tuesday.

Ukrainian President Volodymyr Zelenskyy said the barrage struck homes and the power grid in 13 regions across Ukraine, causing widespread outages in bitter temperatures.

It comes a day after he described recent progress towards a peace deal as “quite solid”.

The bombardment demonstrated Russian President Vladimir Putin’s intention of pursuing the invasion of Ukraine, Mr Zelenskyy said in an online post.

A damaged apartment building in Kyiv. Pic: Reuters
Image:
A damaged apartment building in Kyiv. Pic: Reuters

A damaged apartment building in Kyiv. Pic: Reuters
Image:
A damaged apartment building in Kyiv. Pic: Reuters

Ukrainian and European officials have said Putin is not sincerely engaging with US-led peace efforts.

The attack “is an extremely clear signal of Russian priorities,” Mr Zelenskyy said.

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“A strike before Christmas, when people want to be with their families, at home, in safety. A strike, in fact, in the midst of negotiations that are being conducted to end this war. Putin cannot accept the fact that we must stop killing.”

US President Donald Trump has for months been pressing for a peace agreement, but the negotiations have become entangled in the very different demands from Moscow and Kyiv.

US envoy Steve Witkoff described talks in Florida with Ukrainian and European representatives as “productive and constructive”.

A drone explodes during a Russian missile and drone strike, in Kyiv. Pic: Reuters
Image:
A drone explodes during a Russian missile and drone strike, in Kyiv. Pic: Reuters

Trump was less effusive on Monday, saying, “The talks are going along.”

Initial reports from Ukrainian emergency services said the child died in Ukraine’s northwestern Zhytomyr region, while a drone killed a woman in the Kyiv region, and another civilian death was recorded in the western Khmelnytskyi region, according to Mr Zelenskyy.

Russia launched 635 drones of various types and 38 missiles, Ukraine’s air force said. Air defences stopped 587 drones and 34 missiles, it said.

Read more
Russian general killed by car bomb and Moscow blames Ukraine
Putin didn’t sound like he will alter his course anytime soon

Polish and allied fighter jets were deployed after the Russian airstrikes towards western Ukraine, near Poland’s border.

“Fighter jets were scrambled, and ground-based air-defence and radar reconnaissance systems were put on heightened readiness,” the operational command of Poland’s armed forces said.

It was the ninth large-scale Russian attack on Ukraine’s energy system this year and left multiple regions in the west without power, while emergency power outages were in place across the country, acting Energy Minister Artem Nekraso said. Work to restore power would begin as soon as the security situation permitted, he said.

Ukraine’s largest private energy supplier, DTEK, said the attack targeted thermal power stations in what it said was the seventh major strike on the company’s facilities since October.

DTEK’s thermal power plants have been hit more than 220 times since Russia’s full-scale invasion began in February 2022. Those attacks have killed four workers and wounded 59.

Authorities in the western regions of Rivne, Ternopil and Lviv, as well as the northern Sumy region, reported damage to energy infrastructure or power outages after the attack.

In the southern Odesa region, Russia struck energy, port, transport, industrial and residential infrastructure, according to regional head Oleh Kiper.

A merchant ship and over 120 homes were damaged, he said.

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‘No one is here to help us’: Palestinians watch on as Israeli diggers tear down their homes in East Jerusalem

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'No one is here to help us': Palestinians watch on as Israeli diggers tear down their homes in East Jerusalem

A balcony of onlookers stare as three diggers gnaw at the four-storey building that was a fixture of their daily view.

The roads of Silwan’s Wadi Qaddom neighbourhood are blocked off by Israeli police as residents watch the demolition in the valley from every vantage point. The block of flats was home to around 100 of their neighbours – many of them are now homeless.

An elderly woman sits at the bus stop near the police checkpoint closest to the demolition site. As she walks back down the hill, she looks back at the destruction. Her cheeks are red with anger when she hails that God is their only protection.

“Where are the Arab countries? No one is here to help us,” she exclaims.

Of the 230 buildings demolished in East Jerusalem’s Palestinian neighbourhoods in 2025, the block of roughly 13 flats is considered to be the largest and took 12 hours to completely demolish.

The demolition of a building in Silwan's Wadi Qaddom neighbourhood
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The demolition of a building in Silwan’s Wadi Qaddom neighbourhood

The building was without a permit, like many in Silwan, and stood on land that was not licensed for residential use. The residents were challenging long-standing demolition orders and applying for licensing when diggers arrived at dawn.

The Jerusalem Municipality said the demolition of the building in Silwan was based on a 2014 court order, and that residents were granted extensions for the execution of the order and were offered various options in order to find a solution, but they declined to do so.

But an architect and urban planner from the Israeli NGO Bimkom (Planners for Planning Rights) – which is supporting the families in their bid to license the land of the building – says their time to act was cut short.

Architect Sari Kornish speaks to Sky's Yousra Elbagir
Image:
Architect Sari Kornish speaks to Sky’s Yousra Elbagir

“They were told that the demolition order would be implemented, and then they would get another six months’ recourse to try to continue with their planning. Six months is not enough for these planning processes. They take a long time,” Sari Kornish tells us in front of the Jerusalem Municipality after meeting with the building residents’ lawyer there.

Are permits granted for Palestinians in East Jerusalem?

“Very, very few, and in recent years, since October 7, less and less,” says Sari.

“It has always been discrimination. It has always been not enough.”

Far-right minister of national security Itamar Ben-Gvir posted on X about the building’s demolition.

He said: “Proud to lead the policy of demolishing illegal buildings – not only in the Negev, this morning in East Jerusalem (Silwan neighbourhood) a building that was built illegally and 100 people lived in it – was demolished! Strengthens the police and the district commander.”

Israel’s annexation of East Jerusalem and parts of the West Bank is illegal under international law.

Read more from Sky News:
Is Israel building a wall on Lebanese land?
Mother of last hostage in Gaza speaks to Sky News

Sky's Yousra Elbagir watches the demolition in Silwan
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Sky’s Yousra Elbagir watches the demolition in Silwan

On Sunday, Israel’s far-right finance minister Bezalel Smotrich announced that the security cabinet approved 19 new Jewish settlements in the occupied West Bank.

Half a million Israeli settlers currently live in the West Bank, and over 230,000 live in East Jerusalem, where some are taking over homes instead of seizing land.

At least 500 Palestinians have lost their homes to lack-of-permit demolitions in East Jerusalem, and at least 1,000 people, including 460 children, are at risk of forced displacement from eviction cases filed against them in Israeli courts by settler organisations.

Zuhair al Rajabbi looks out at the homes of his neighbours now marked by demolition sites
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Zuhair al Rajabbi looks out at the homes of his neighbours now marked by demolition sites

In the East Jerusalem neighbourhood of Batn al Hawa in Silwan, Zuhair al Rajabbi looks out from his balcony at the homes of his neighbours.

The landscape is marked by demolition sites, and former homes of his neighbours are marked by Israeli flags. Settlers are busy renovating the rooftops to make their own.

“They have five children, and a grandmother was in one room. Downstairs, there was a family of seven children, with the wife and mother, in that one,” he says, pointing at the roof of his neighbours.

Israeli settler flags on a building in Silwan, a Palestinian neighbourhood in East Jerusalem
Image:
Israeli settler flags on a building in Silwan, a Palestinian neighbourhood in East Jerusalem

As we watch, a woman quietly mops the dirty water into a hole in the fence and onto the roof of the house next door.

“Look, they are even putting the dirty water on our neighbour’s roof,” Zuhair says with a sad bitterness.

“We used to live together like we live here at home – eating and drinking with them. It makes me sad when I see their home disappearing.”

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Trump: US has to have Greenland

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Trump: US has to have Greenland

Donald Trump has said the US “has to have” Greenland, claiming it needs the territory for national security.

It comes after the US president appointed Louisiana’s governor Jeff Landry as special envoy to Greenland, saying he would “lead the charge” in advocating the semi-autonomous part of Denmark to become part of the United States.

“Jeff understands how essential Greenland is to our national security,” Mr Trump said.

Donald Trump has appointed Jeff Landry as special envoy to Greenland. Pic: Reuters
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Donald Trump has appointed Jeff Landry as special envoy to Greenland. Pic: Reuters

“We need Greenland for national security, not for minerals… If you take a look ​at Greenland, you look up and down the coast, you have Russian and Chinese ships all over the place.

“We need it for national security. We have to ‍have it… Greenland is a big deal.”

Why does Trump want Greenland?

Trump said Greenland is a 'big deal'. Pic: Reuters
Image:
Trump said Greenland is a ‘big deal’. Pic: Reuters

Danish Prime Minister Mette Frederiksen and Greenland’s Prime Minister Jens-Frederik Nielsen said in a joint statement that Greenland belongs to Greenlanders, stressing the US will not take it over.

“You cannot annex another country. Not even ‌with an argument about international security,” they said.

The country has already summoned the US ambassador in protest, with its foreign minister saying the move shows the US is still interested in the vast Danish territory.

Mr Trump has repeatedly called for the US to take over the mineral rich and strategically located Arctic island, since winning his second term, and has not ruled out using military force to achieve it.

Denmark’s foreign minister Lars Løkke Rasmussen said everyone – including the US – must show respect for Denmark’s territorial integrity.

NATO allies Denmark, Norway, Sweden, Germany and France took part in military drills in Greenland, where the US has a military base, in September. Pic: Reuters
Image:
NATO allies Denmark, Norway, Sweden, Germany and France took part in military drills in Greenland, where the US has a military base, in September. Pic: Reuters

How did we get here?

In March, US Vice President JD Vance visited a remote American military base in Greenland and accused Denmark – a NATO ally of the US – of underinvesting there.

The issue then gradually drifted out of the headlines but, in August, Danish officials again summoned the US ambassador – following a report that at least three people with connections to Mr Trump had carried out covert influence operations in Greenland.


President Donald Trump has said America ‘needs’ Greenland for ‘international security’.

The territory’s strategic position between Europe and North America makes it a key site for the US ballistic missile defence system, while its mineral wealth has heightened US interest in reducing reliance on Chinese exports.

Earlier this month, the Danish Defence Intelligence Service said in an annual report that the US was using its economic power to “assert its will” and threaten military force against friend and foe alike.

Denmark's Prime Minister Mette Frederiksen (left) greets Greenland's Prime Minister, Jens-Frederik Nielsen.
Image:
Denmark’s Prime Minister Mette Frederiksen (left) greets Greenland’s Prime Minister, Jens-Frederik Nielsen.

Read more:
Head of US Greenland base sacked after criticising JD Vance
Denmark’s PM says ‘you can’t spy against an ally’

The report also highlighted the rising strategic importance of the Arctic to great power countries as “conflict between Russia and the West intensifies.

It went on to say that the growing security and strategic focus on the Arctic by the US would “further accelerate these developments”.

Russian President Vladimir Putin has said Russia is worried about NATO’s activities in the Arctic and will respond by strengthening its military capability in the polar region.

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