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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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Minister defends proposals to ban over 70s from driving if they fail new compulsory eye tests

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Minister defends proposals to ban over 70s from driving if they fail new compulsory eye tests

Wes Streeting has defended plans to make over 70s take compulsory eye tests every three years – which could see them banned from driving if they fail, it is understood.

Ministers are considering “tougher” measures to tackle road deaths and injuries in England and Wales, which they believe have “remained stubbornly high under successive Conservative governments”.

Under the new proposals, first reported by The Times, the drink-drive limit would be lowered to match the current rules in Scotland.

Currently, the drink-drive limit is 35 micrograms of alcohol per 100 millilitres of breath in England and Wales, or 80 milligrams of alcohol per 100 millilitres of blood.

But this is expected to be lowered to 22 micrograms of alcohol per 100 millilitres of breath or 50 milligrams of alcohol per 100 millilitres of blood, to match the stricter levels already enforced in Scotland.

Those caught not wearing a seatbelt could also receive penalty points for the first time, while drivers found on the road without insurance could also face more severe consequences.

As well as this, plans are currently being drawn up to make those aged 70 or over take a compulsory eye test every three years when they renew their driving licence.

Those who fail this would lose their right to drive under the proposals. It’s understood that tests for other conditions, such as dementia, are also being considered.

Speaking on Monday, Mr Streeting said the transport secretary is consulting and “considering a whole range of proposals”, which will be unveiled in the “not too distant future”.

It is understood that Heidi Alexander will unveil the measures in a new road safety strategy in the autumn.

Transport Secretary Heidi Alexander is expected to introduce the changes as part of the government's road safety strategy in the autumn.
Pic: Reuters
Image:
Transport Secretary Heidi Alexander is expected to introduce the changes as part of the government’s road safety strategy in the autumn.
Pic: Reuters

The health secretary also defended the plans around elderly drivers.

He told broadcasters: “It cannot be right that we’ve ended up in a situation where the NHS is hit with a £2 billion a year bill because we are not taking road safety seriously enough – particularly as we get older and the quality of our eye health deteriorates, that we’re not keeping a regular check.”

Read more from Sky News:
The full-time workers who are turning to food banks
‘Deport now, appeal later’ scheme for foreign criminals expanded

A Labour source said: “At the end of the last Labour government, the number of people killed and seriously injured on our roads was at a record low, but numbers have remained stubbornly high under successive Conservative governments.

“In no other circumstance would we accept 1,600 people dying, with thousands more seriously injured, costing the NHS more than £2bn per year.

“This Labour government will deliver the first Road Safety Strategy in a decade, imposing tougher penalties on those breaking the law, protecting road users and restoring order to our roads.”

It comes after 1,633 people died in road traffic accidents in 2024, with nearly 28,000 victims seriously injured.

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UK weather: Amber heat health alert issued for large parts of England

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UK weather: Amber heat health alert issued for large parts of England

An amber heat health alert has been issued for large parts of England.

The amber alert – described as an “enhanced hot weather response” – covers East Midlands, West Midlands, East of England, London, and the South East.

The alert, issued by the UK Health Security Agency (UKHSA), is due to be in place from 9am on Tuesday, until 6pm on Wednesday.

Explainer: What is a heat-health alert?

The UK Health Security Agency (UKHSA) has issued alerts across England
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The UK Health Security Agency (UKHSA) has issued alerts across England

The UKHSA, a government agency for England, warned “significant impacts are likely” across health and social care services due to the high temperatures.

Parts of the country are facing a fourth heatwave of the summer, where highs pass a threshold on three consecutive days.

A yellow alert, also between 9am on Tuesday until 6pm on Wednesday, covers the North East, North West, Yorkshire, The Humber, and the South West.

More on Heatwave

Check the weather forecast where you are

Dr Paul Coleman, consultant in public health at UKHSA, said temperatures are forecast to rise above 30C (86F) across some areas which “can result in serious health outcomes” particularly for the elderly or those with serious health conditions.

“If you have friends, family or neighbours who are vulnerable, it is important to ensure they are aware of the forecasts and are following the necessary advice.

“Check in on them if you can to make sure they know that hot weather is on the way and how to keep themselves safe,” Dr Coleman said.

Temperatures could peak in the low 30s on Tuesday, with a small chance of hitting 35C (95F)
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Temperatures could peak in the low 30s on Tuesday, with a small chance of hitting 35C (95F)

Sky News meteorologist Christopher England said the high pressure that brought the warmth of the last few days via the “heat dome” effect is moving east, as low pressure moves in towards the west.

“On Tuesday, southern Britain can expect temperatures widely into the low 30s… perhaps exceeding 35C (95F) in places,” he said.

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Drought in England explained

On 1 July, the UK recorded its hottest day of the year so far with a temperature of 34.7C (94.4F) recorded at St James’s Park in central London.

The Met Office’s criteria for a heatwave are met when temperatures are above a certain level for three consecutive days. This threshold varies from 25C to 28C (77F to 82F) depending on the location.

People enjoying the hot weather in North Shields in June. Pic: PA
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People enjoying the hot weather in North Shields in June. Pic: PA

Mr England added: “There’s around a 10% chance Wales may exceed its August peak temperature of 35.2C (95.3F) recorded at Hawarden on 2 August 1990.

“Expect some tropical nights too, with temperatures holding above 20C (68F).”

In July, the Met Office warned Britain’s climate is changing rapidly, with records regularly being smashed and extremes of heat and rainfall becoming the norm.

Read more from Sky News:
Tips for staying cool in bed
Could this be the UK’s hottest year?
How does sunscreen protect us?

The UKHSA has issued advice for keeping cool:
• close windows and curtains in rooms that face the sun
• seek shade and cover up outside
• use sunscreen, wear a hat and sunglasses
• keep out of the sun at the hottest times, between 11am and 3pm
• restrict physical activity to the cooler mornings or evenings
• know how to respond to heat exhaustion and heatstroke

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Dozens evacuated after burst water main floods streets in north London

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Dozens evacuated after burst water main floods streets in north London

Around 30 residents have been evacuated from their homes in north London after a water main burst, leaving roads under 44cm (17in) of water.

Seventy firefighters were dispatched by London Fire Brigade to the area around Canonbury Street in Islington just after 10pm on Sunday.

People have been urged to avoid the area including Essex Road, Elmore Street, Halliford Street and Ecclesbourne Road – and warned against driving through floodwater.

Canonbury Street in Islington experienced significant flooding. Pic: London Fire Brigade
Image:
Canonbury Street in Islington experienced significant flooding. Pic: London Fire Brigade

Fire crews used flood barriers and sandbags to divert floodwater away from homes as they warned disruption was likely to continue into Monday afternoon.

Islington council also warned at 9am on Monday that Canonbury Street was closed from Essex Road up to Arran Walk.

A Thames Water spokesperson said: “We have now managed to stop the flow of water and ensure that the site is safe. We have also been able to move parked cars which were over another critical water main.

“We have a specialist team on site for those impacted by the incident, at Cedar Place on Essex Road, and are supporting customers who have been affected.

“To keep the public and our team safe, we’ve arranged equipment to help manage the traffic while we work in the road. We are sorry for the impact this may have on traffic in the area.”

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