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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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‘Immediate action’ taken after blueprints of prisons in England and Wales leaked on dark web

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'Immediate action' taken after blueprints of prisons in England and Wales leaked on dark web

“Immediate action” is being taken after blueprints of jail layouts were shared online.

The maps detailing the layouts of prisons in England and Wales were leaked on the dark web over the past fortnight, according to The Times.

The detailed information is said to include the locations of cameras and sensors, prompting fears they could be used to smuggle drugs or weapons into prisons or help inmates plan escapes.

Security officials are now working to identify the source of the leak and who might benefit from the details.

The Ministry of Justice did not disclose which prisons were involved in the breach.

A government spokesperson said in a statement: “We are not going to comment on the specific detail of security matters of this kind, but we are aware of a breach of data to the prison estate and, like with all potential breaches, have taken immediate action to ensure prisons remain secure.”

The leak comes amid a chronic prison overcrowding crisis, which has led to early release schemes and the re-categorising of the security risks of some offenders to ease capacity pressures.

Justice Secretary Shabana Mahmood is launching a sentencing review in a bid to ease the crisis.

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

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

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

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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:
Strike using UK-made Storm Shadow missiles ‘very successful’
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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Man shot dead and another critically injured in Birmingham shooting – as murder suspect arrested

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Man shot dead and another critically injured in Birmingham shooting - as murder suspect arrested

A man has been arrested on suspicion of murder after one man died and another was critically injured in a shooting in Birmingham.

Police were called to Rotton Park Road in Edgbaston, just before 11pm on Friday, to reports that two people had been shot.

One man, in his 20s, was found in a car but was pronounced dead at the scene.

Another man, in his 30s, was found injured at a bus stop, and was taken to hospital where he remains in a critical condition, West Midlands Police added.

Firearms officers arrested a man in his 30s on suspicion of murder just before 12.30am. He remains in custody.

Officers remain on the scene, with road closures in place. The force said reassurance patrols will also be taking place.

Detective Inspector Nick Barnes said: “This is a tragic incident, and we have worked through the night to understand exactly what happened.

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“We’ve already made good progress and arrested a suspect, but I still need to hear from anyone who was in the area that we’ve not already spoken to.

“This happened near the busy junction with City Road and it may be that you’ve got dashcam footage or mobile phone footage from the area just before 11pm.

“We really need to hear from you so that we can build as clear a picture as possible of what happened.”

Officers are urging anyone with information to get in contact, with anonymous tips also taken via Crimestoppers.

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