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The prime minister is fighting for her political survival after ditching a major chunk of the mini-budget and sacking her chancellor and close ally Kwasi Kwarteng.

But it is unclear whether Liz Truss’s gamble to stay in power will pay off, with financial markets remaining jittery and reports of a number of Tory MPs plotting to replace her.

After a tumultuous three weeks for the financial markets in the wake of Mr Kwarteng’s £45bn mini-budget tax giveaway, the PM acknowledged that “the way we are delivering our mission right now has to change”.

She replaced her “great friend” Mr Kwarteng” with former foreign secretary Jeremy Hunt, who backed her rival Rishi Sunak in the Tory leadership contest.

While his appointment was welcomed by some Tory MPs as “an experienced pair of hands”, others questioned why Mr Kwarteng was the one who had to go when he was pursuing policies Ms Truss espoused in her leadership campaign.

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

Politics latest: Tory MPs turn on Truss as PM scrambles to save job

At a hastily-arranged news conference in Downing Street on Friday, Ms Truss dismissed calls for her resignation, saying she was “absolutely determined to see through what I have promised”.

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She announced she was abandoning Mr Kwarteng’s commitment to drop the planned rise in corporation tax from 19% to 25%, saving the Exchequer £18bn a year.

She also suggested a new squeeze on public spending which would “grow less rapidly than previously planned”.

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Do voters have confidence in Truss?

Ms Truss said it was a “down payment” on the medium-term fiscal plan on 31 October, when Mr Hunt will now set out how he intends to get the public finances back on track. It suggests further measures to plug the estimated £60bn void created by the mini-budget will have to follow.

“It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission right now has to change,” she said.

“We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium-term.”

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Analysing market reaction to latest U-turn

Voters’ response to her U-turn appeared reasonably favourable, with a snap poll by YouGov finding 49% of voters said Ms Truss was right to sack her chancellor.

Cabinet ministers also remained publicly loyal, tweeting their support for Ms Truss and her new chancellor.

But other Conservatives appeared to be divided over Ms Truss’s future as prime minister.

Heated messages were shared in Conservative Party WhatsApp groups after her news conference, with a screenshot sent to Sky News’ deputy political editor Sam Coates showing Crispin Blunt calling for Rishi Sunak and Penny Mordaunt to take over.

“Step forward Rishi and Penny, with our support and encouragement in the interests of us all,” it read.

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Kwarteng sacked after 38 days

There have also been multiple reports of Tory MPs and Conservative grandees plotting moves to force Ms Truss from Downing Street.

A source apparently close to Mr Kwarteng suggested that Ms Truss may only have bought herself a few more weeks in office, according to The Times.

Former leader Lord Hague warned that Ms Truss’s premiership “hangs by a thread”, while Conservative former chancellor Lord Hammond said the events of the past weeks had wrecked the party’s reputation for fiscal discipline.

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During her news conference Ms Truss said she was “incredibly sorry” to lose Mr Kwarteng but insisted Mr Hunt shared her vision of a “high-growth, low-tax economy”.

But Mr Hunt’s appointment signals a major shift in policy direction – he is a more centrist figure than either Mr Kwarteng or Ms Truss and is unlikely to share their ideological free market commitment to tax cuts.

In July, Mr Hunt told Sky News cutting corporation tax was “not sexy, but necessary” as he backed plans to reverse the planned rises.

:: The new chancellor, Jeremy Hunt, will be speaking to Sky News from 7am today

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Major companies part of drive to get thousands of offenders in work

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Major companies part of drive to get thousands of offenders in work

Bosses of leading high street businesses are set to lead a new drive to cut crime and get ex-offenders into stable jobs.

It’s part of a government initiative creating 11 new regional employment councils across England and Wales.

Leaders from firms including the Co-Op, Iceland, Greggs, and Oliver Bonas will provide voluntary advisory roles in conjunction with probation, job centres, and the Department for Work and Pensions.

The idea is to help ex-prisoners find work while they serve the remainder of their sentence in the community.

The government says roughly 80% of offending is reoffending, while the latest data shows offenders unemployed six weeks after leaving jail have a reoffending rate more than twice that of those in work – 35% versus 17%.

The employment councils will supplement the work of existing employment advisory boards, created by the former Timpsons chief executive, now prisons minister, Lord Timpson.

The advisory boards bring local leaders into 93 individual jails to help provide education and training advice, but largely stop at the prison gates.

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The government wants the new councils to act as better bridges for offenders, under one umbrella – bringing together probation, prisons and local employers, helping prison leavers look for work.

This will include connections with work coaches at job centres that will provide mock interviews, CV advice and training opportunities in the community.

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Lord Timpson called the new scheme and partnering with business a “win win”.

“Getting former offenders into stable work is a sure way of cutting crime and making our streets safer,” he said.

Last month Sky News heard from former offender, Terry, now employed at the cobblers and key cutters Timpsons, about what he calls an “invisible stigma” for those with criminal records seeking employment.

He said getting a secure job was life-changing because without other options “you’re probably going to think about doing crime”.

Annie Gail, head of social impact at Cook Foods, which is taking part of the government’s new scheme, also told Sky News that prison leaver programmes such as theirs are “challenging”.

She said having ex-offenders in public-facing roles “can cause concern” but insists “good business is about more than just turning a profit” and instead is about being “a force for good in society”.

The new scheme is set to start next week, and plans to get thousands of ex-offenders into stable jobs, away from a life of crime.

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Boy, 17, stabbed to death at Bedford bus station

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Boy, 17, stabbed to death at Bedford bus station

A 17-year-old boy has been stabbed to death in Bedford.

Police say Thomas Taylor was walking along Greenhill Street, close to Bedford Bus Station, when he was attacked by a group of men at 5.50pm on Wednesday.

He was taken to hospital after suffering serious injuries and died a short time later.

A murder inquiry has been launched.

The attackers have not been caught. They were described as black and wearing dark clothes. They ran away in the direction of Hassett Street and Greyfriars car park, police said.

Detective Chief Inspector Katie Dounias said: “This is an absolutely shocking incident in which a teenage boy has been stabbed to death in a busy town centre.

“We have a dedicated team of detectives working on this investigation and supporting Thomas’s family at this incredibly difficult time for them.

“I would urge anyone who saw what happened or has any information to come forward and speak to police and help us bring those responsible to justice.

“We’re aware that there are images and videos circulating on social media, please refrain from sharing any such clips and instead contact police.”

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Bedford Academy headteacher Chris Deller said: “We are deeply upset and shocked to hear the sad news that a Bedford Academy student has lost their life.”

He described Thomas as a “popular, well-liked, and respected lad” who had recently finished Year 11, before heading onto sixth form.

“Our focus now is on supporting the family through such a difficult period, whilst helping our students and wider community to come to terms with such a tragic loss,” he added.

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Romanian grooming gang convicted of sexually exploiting women in Dundee

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Romanian grooming gang convicted of sexually exploiting women in Dundee

A Romanian grooming gang has been convicted of sexually exploiting 10 vulnerable women in Dundee.

Four men and one woman were found guilty of dozens of offences – including rape – following an extensive investigation into sexual exploitation, human trafficking, and the supply of drugs in the Tayside area.

Marian Cumpanasoiu, 37, Remus Stan, 34, Catalin Dobre, 44, Cristian Urlateanu, 41, and Alexandra Bugonea, 34, denied any wrongdoing but on Thursday were convicted following a trial at the High Court in Glasgow.

Detective Inspector Scott Carswell branded the offenders “deplorable” in an interview with Sky News’ Scotland correspondent, Connor Gillies.

The detective said the gang plied the women with alcohol and free Class A drugs at parties before coercing them into sexual activity, “which a lot of them didn’t want to do”.

He said: “But as things progressed, they were so addicted to the drugs that they knew the only way they could get the drugs was to perform the sexual acts that they were having to get involved in.”

Detective Inspector Scott Carswell
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Detective Inspector Scott Carswell

DI Carswell said the gang got the women addicted to drugs in a bid to control them and keep them coming back for more.

He added: “They’ve had no thought as to the impact this is having on the victims. It’s been quite controlled in that they knew what they were doing.”

The gang will be sentenced at a later date.

Police Scotland said the offenders were arrested and charged as part of Operation Recloir, which was launched in late 2021 to target a gang of suspected human traffickers in the Tayside area.

DI Carswell said the inquiry initially focused on brothel-keeping in Dundee and the suspected trafficking of Romanian females into the country.

He added: “However, into the summer of 2022 we started to receive information that the crime group were targeting vulnerable Dundee females, and it looked like they were grooming them and coercing them with gifts of free drugs and other things until it moved on to the victims having to get involved in sexual activity to get the free drugs.

“And unfortunately, this got them addicted to the class A drugs that had been provided.”

DI Carswell said many of the victims identified believed they were the girlfriends of the men involved and did not realise they were being “groomed and used”.

The detective said the women were looking to be “cared for”, noting: “However, I believe that the end goal here was to groom the females and possibly move them into prostitution.”

Read more from Sky News:
Timeline of the grooming gangs scandal
Grooming gangs are ‘in every single part of our country’

DI Carswell said it was important to build up the victims’ “trust and confidence” in order to get them to engage with the force.

He said: “That did take a lot of patience, and it was something that I was passionate about with my inquiry team from the start.”

DI Carswell added work remains ongoing to ensure the women’s welfare and long-term safeguarding.

The detective believes his team identified all the victims, but not everyone wished to engage with the inquiry.

DI Carswell added: “What I would say to them is even at this time if they don’t want to engage with the police, the support’s always there if they need help with anything on the back of this.”

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