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The pound has edged higher against the dollar in anticipation of a key statement from the new chancellor tasked with sorting out the fallout from the government’s mini-budget.

Sterling had fallen to a record low against the dollar at the end of September, after the short-lived then chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.

Mr Kwarteng, who was sacked on Friday after just 38 days in the job, paid the price for a mini-budget that called into question the government’s economic credibility on financial markets.

The mini-budget led not just to a collapse in the value of the pound but also prompted a surge in borrowing costs – forcing an unprecedented intervention by the Bank of England (BoE).

Kwasi Kwarteng leaves Downing Street
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Out the door went Kwasi Kwarteng

However, following the prime minister’s announcement on Friday that Mr Kwarteng had been sacked and that corporation tax would rise to 25% from April next year instead of being kept at 19%, there was a partial recovery for the UK currency and bond yields.

Mr Kwarteng’s replacement, former foreign and health secretary Jeremy Hunt, has since promised to win back the confidence of the financial markets by fully accounting for the government’s tax and spending plans.

Sterling gained 1% to hit $1.1282 on Monday in trade in Asia when the Treasury revealed that Mr Hunt would deliver key parts of a medium-term fiscal plan later on Monday in support of “fiscal sustainability”.

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New Chancellor of the Exchequer Jeremy Hunt leaves 10 Downing Street
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In came the new Chancellor of the Exchequer Jeremy Hunt

The statement added that Mr Hunt met the BoE governor and the head of the Debt Management Office on Sunday night to brief them on the plans – measures brought forward from the Medium-Term Fiscal Plan that is due to be revealed on 31 October.

The early measures would first be revealed in a statement on Monday morning before being outlined to MPs, the Treasury said.

All eyes are now on how the UK government bond market will trade, after the BoE on Friday concluded its emergency gilt market support.

Any rises in government borrowing costs, through a gilt yield rise, would reflect continuing jitters.

More likely, however, is a downwards shift given that Mr Hunt appears to be acting swiftly to address the concerns of investors.

Can Truss remain PM?

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.

Read more:
Pound sinks to record low against the dollar – as PM and chancellor defend mini-budget
Bank of England ‘will not hesitate to change interest rates as necessary’ after pound’s fall

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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Storm Bram named as weather warnings issued for UK and Ireland

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Storm Bram named as weather warnings issued for UK and Ireland

Storm Bram has been named by the Irish weather service – with warnings for strong winds and heavy rain issued for parts of the UK and Ireland.

More than half a month’s rainfall could hit some parts of the UK in just a 24-hour period, the Met Office has warned.

Parts of Scotland are also facing a “danger to life” warning due to the “very strong” winds on Tuesday.

Yellow and orange warnings are in place across Ireland today and tomorrow, with “very strong to gale force” winds forecast on Tuesday.

Check the forecast for your area

The Met Office said strong winds forecast from Monday evening through until Wednesday could cause disruption, with gusts of 50-60mph predicted widely and 70-80mph in some places.

A yellow weather warning for rain comes into force from 6pm on Monday, and will be in place until 2pm on Tuesday, covering parts of southwest England and Wales, and stretching to parts of Herefordshire and Hampshire.

The Met Office has also issued a yellow warning for high winds from Dorset to Cornwall and up to north Wales, in place from 10pm on Monday until 4pm on Tuesday.

It said transport networks could face disruption, with delays for high-sided vehicles on exposed routes and bridges, and coastal roads and seafronts affected by spray and large waves. Power outages are also possible.

For 24 hours from 6pm on Monday, up to 40mm of rain could fall in some areas, with 60-80mm of rain over Dartmoor and high ground in South Wales, which would amount to more than half the average monthly rainfall in December.

The predicted rainfall across southwest England and South Wales is expected to hit already saturated ground and could lead to difficult travel conditions.

An amber warning for wind has been issued for northwest Scotland on Tuesday, from 4pm until the end of the day.

Flying debris “could result in a danger to life” – and there could be damage to buildings and homes along with the risk of roofs being “blown off” due to the “very strong and disruptive winds”, the Met Office warned.

Forecasters added there was the potential for large waves and beach material “being thrown” across sea fronts, roads and properties.

There are also further yellow warnings for wind and rain on Tuesday across Northern Ireland, Scotland, Wales and northern England.

Weather warnings issued for Tuesday. Pic: Met Office
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Weather warnings issued for Tuesday. Pic: Met Office

Yellow warnings for wind have been issued for Scotland and parts of northern England on Wednesday.

The Met Office’s deputy chief meteorologist, Steven Keates, said: “A deepening area of low pressure will approach the UK from the southwest later on Monday, bringing with it heavy rain and strong winds, which are likely to affect the UK between late Monday and early Wednesday.

“The exact track, depth and timings of this low are uncertain, which makes it harder to determine where will be most impacted by strong winds and/or heavy rain.

“This system has the potential to cause disruption, and severe weather warnings are likely to be issued over the weekend as details become clearer. We therefore urge people to keep up-to-date with the latest Met Office forecast.”

Read more from Sky News:
City may have to evacuate as water supplies run low
UK unveils undersea military technology

Sky News meteorologist Dr Christopher England warned many areas could face disruption from “damaging gusts”.

“There could also be ferry disruption and that even outside the warning areas, potentially damaging gusts of over 50mph are possible,” he said.

“It only takes one tree falling in the wrong place at the wrong time to have a significant impact.”

The Met Office said the rest of the month remained unsettled, with further periods of low pressure predicted.

It said it is too early to provide an accurate forecast for the Christmas period.

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Former Radio 1 DJ Tim Westwood pleads not guilty to rape and sexual assault

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Former Radio 1 DJ Tim Westwood pleads not guilty to rape and sexual assault

Former Radio 1 DJ Tim Westwood has pleaded not guilty to four counts of rape, nine counts of indecent assault and two counts of sexual assault.

The 68-year-old arrived at Southwark Crown Court on Monday, wearing a black hooded jacket, a maroon shirt and dark trousers.

Westwood stood with his hands clasped in front of him as he confirmed his name, before sitting down in the glass dock.

He is alleged to have raped women, kissed them and touched their bodies without consent.

The offences are said to have taken place against seven different women between 1983 and 2016.

Three of the alleged indecent assaults are said to have taken place at the BBC studios in the 1990s.

Westwood was granted bail, with the condition not to contact the complainants ahead of a pre-trial review hearing, scheduled for next December.

Last month, Westwood returned to the UK from Nigeria to appear in court.

He has attended five police interviews voluntarily since the investigation into the alleged offences began.

Westwood has previously denied all allegations of sexual misconduct made against him.

The charges

Charges against Westwood include an allegation of rape against a woman at a hotel in London in 1996, one count of rape from the early 2000s at an address in London, and two counts of rape at an address in London in the 2010s.

He is further accused of four indecent assaults in London in the 1980s, three indecent assaults at the BBC in the 1990s, and two indecent assaults in the early 2000s.

The former DJ is also alleged to have sexually assaulted a woman at a nightclub in Stroud, Gloucestershire, in 2010.

Westwood began his broadcasting career in local radio before joining Capital Radio in the late 1980s.

He moved to the BBC in 1994, working on Radio 1 and Radio 1Xtra for almost 20 years.

After leaving the BBC in 2013, he then joined Capital Xtra, hosting a regular Saturday show where he was referred to as “The Big Dawg”, before he left the company in 2022.

The trial is set to start on 25 January 2027.

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Ex-footballer Joey Barton sentenced for posting grossly offensive social media messages

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Ex-footballer Joey Barton sentenced for posting grossly offensive social media messages

Retired footballer Joey Barton has been sentenced over X posts he sent to football pundits Eni Aluko and Lucy Ward, along with broadcaster Jeremy Vine.

Barton, 43, had been found guilty of six counts of sending a grossly offensive electronic communication with intent to cause distress or anxiety.

He was sentenced to a six-month prison sentence, suspended for 18 months.

The former Manchester City, Newcastle United and Rangers midfielder had claimed he was the victim of a “political prosecution” and denied his aim was to “get clicks and promote himself”.

But the jury decided Barton, capped once for England in 2007, had “crossed the line between free speech and a crime” with the six posts he made on the social media platform.

The prosecution argued that Barton, who has 2.5 million followers, “may well be characterised as cutting, caustic, controversial and forthright”.

Peter Wright KC continued: “Everyone is entitled to express views that are all of those things.

“What someone is not entitled to do is to post communications electronically that are – applying those standards – beyond the pale of what is tolerable in society.”

Barton denied 12 counts of sending a grossly offensive electronic communication with intent to cause distress or anxiety between January and March last year.

He was found guilty on six counts, but cleared of another six.

In one post in January 2024, Barton compared Aluko and Ward to the “Fred and Rose West of football commentary”, and superimposed the women’s faces on a photograph of the serial murderers.

He also described Aluko as being in the “Joseph Stalin/Pol Pot category”, suggesting that she had “murdered hundreds of thousands, if not millions, of football fans’ ears”.

The jury found him not guilty in relation to the comparison with the Wests, Stalin and Pol Pot, but decided the superimposed image was grossly offensive.

Another message allegedly suggested Vine had a sexual interest in children, after the broadcaster posted a question relating to the posts about the football commentators asking whether Barton had a “brain injury”.

The ex-footballer told the court the posts were “dark and stupid humour” and “crude banter”. He also said he had no intention of implying Vine was a paedophile.

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