Levelling Up Secretary Simon Clarke has denied a Sunday Times report that said Liz Truss "ordered" King Charles to "stay away" from next month's Cop27 climate change summit.

Speaking on Times Radio, Clarke said the Sunday Times claims were "simply not true", and that the decision that the King should not attend the summit in Cairo had been taken "consensually" between the Government and the Palace.

"It's been clear this is a decision that has been made consensually between the King and the Government," he told Times Radio. "That is a decision that has been made amicably, as far as I am aware, between the Palace and the Government. The suggestions this morning that he was ordered to stay away are simply not true.

"I think it is very different when you are the host country for a major event like Cop to have the head of state involved, as opposed to the head of state going to what is an event being hosted in Egypt.

"It is the normal course of matters that this would be handled by the Government rather than by the monarchy."

One of Boris Johnson's fiercest supporters, former culture secretary Nadine Dorries, tweets that the PM saying the 45p tax cut was "a decision the Chancellor made" amounts to throwing Kwasi Kwarteng under a bus. However, she appears to be keeping her fingers crossed that "things improve and settle down".

Liberal Democrat leader Ed Davey tweets that the PM's "failure" to rule out public spending cuts could ultimately hit the NHS:

Former Conservative cabinet minister Michael Gove has voiced his concerns over last Friday's mini-budget.

He tells Laura Kuenssberg "there is an inadequate realisation at the top of government of the scale of change that is required".

"The sheer risk of using borrowed money to fund tax cuts - that is not Conservative," he says.

Ione Wells
Political Correspondent, BBC News

Things could get a bit fiery at this Tory party conference.

And not just because some Tory MPs are already publicly showing signs of rebellion over some of Liz Truss’s tax-cutting plans.

Attendees have been warned to prepare for strobe lighting, smoke effects and pyrotechnics.

It’s not clear whose speech or event that may be for…

Labour shadow chancellor Rachel Reeves has said the government's "trickle-down economics" plan will fail.

Asked on Sunday with Laura Kuenssberg about the prime minister and chancellor's strategy, Reeves said the government was conducting a "mad experiment" with the UK economy.

"Trickle-down economics" is the theory that policies favouring the highest earners also have benefits for the rest of society.

Liz Truss tells Laura Kuenssberg she did not discuss scrapping the 45p top rate of tax with the whole cabinet.

"It was a decision the chancellor made," she says.

Does Truss have the votes for her mini-budget?published at 10:19 British Summer Time 2 October 2022

10:19 BST 2 October 2022

Faisal Islam
BBC Economics Editor

A new dimension of uncertainty is now added to events surrounding the mini budget.

Does the PM have the votes to pass her mini-budget?

Former cabinet minister Michael Gove declined to confirm he would back a Budget with unfunded tax cuts, and a headline measure scrapping the 45p rate.

Others publicly faced down threats of losing the whip.

This gets in to the weeds of parliamentary procedure, but these are serious stakes, which will be noticed on markets.

Reality Check

Laura Kuenssberg asked Liz Truss whether she felt “any responsibility” for the worries that people now have about their mortgages and loans.

The prime minister called it a "global problem", citing the war in Ukraine, the aftermath of Covid and rising global interest rates. She also emphasised that the "Bank of England set interest rates, not the government".

Interest rates are rising around the world as central banks, like the Bank of England, raise them to fight the inflation that has been made worse by the war in Ukraine.

But as our Economics Editor Faisal Islam pointed out on Twitter, the cost of the UK’s borrowing spiked on the Friday of the government's mini-budget and again early the following Monday. This lifted the cost of borrowing in the UK above that in Greece, and it hasn't come down since.

This rise was not set by the Bank of England - but by the bond markets - and it is feeding through into rising mortgage rates and hundreds of products being withdrawn from the mortgage market.

Laura Kuenssberg
Presenter, Sunday with Laura Kuenssberg

Image source, PA Media

From our long conversation this morning, four things were abundantly clear:

• Liz Truss has no intention of changing her plans for the economy
• Her decisions may well involve spending cuts in the next few years
• She didn't consult her Cabinet over the most controversial decision, scrapping the 45p top rate
• She knows the last week has not been an unalloyed success

Her mini-mea culpa about the handling of the mini-budget was a straightforward admission that she and her team got some things wrong.

It's clear she is a politician who is well aware that her ideology and her determination may upset many members of the public and many in her party.

But having been given the chance to change the country by that party - not by the population at large - she is obviously determined she won't let it go to waste.

There's trouble in store for her at the Conservative Party's conference in Birmingham - and trouble waiting when she gets back to Westminster too.

Ione Wells
Political Correspondent, BBC News

Labour’s shadow chancellor Rachel Reeves is trying to draw a clear dividing line between them and the Conservatives – saying Labour's energy support package would partly be funded by an extension of the windfall tax on oil and gas companies.

But the party faces questions too on why they are confident their ideas, some of which would require borrowing too, would not similarly spook the markets. For example, Labour also want to cut national insurance.

Ms Reeves argues it was the scale of the government’s tax cuts that has been the issue, as well as how they plan to fund the energy support package.

Was OBR ready with figures for mini-budget?published at 09:51 British Summer Time 2 October 2022

09:51 BST 2 October 2022

Faisal Islam
BBC Economics Editor

The PM repeated her view that the independent Office for Budget Responsibility (OBR), the government’s official number crunchers, would not have been ready to produce its forecasts alongside the mini-budget.

This is a move that many market experts, MPs and former Bank of England Governor Mark Carney say would have helped prevent last week’s chaos.

That is not what the OBR itself says. Last week it confirmed in a letter a BBC News story from before the mini-budget that it had provided a draft forecast to the chancellor on his first day in the office, and would have been able to release a forecast, albeit shorter than normal, with his announcements.

The PM, who met the budget watchdog on Friday, told Laura Kuenssberg: “I completely want to work with the OBR.”

Prime Minister Liz Truss stood by her tax-cutting plan on today's Sunday with Laura Kuenssberg.

But she admitted she could have done more to prepare the ground for Chancellor Kwasi Kwarteng's mini-budget, which spooked the markets and sent the pound plummeting.

Image source, Getty Images

The Conservative Party Chairman says he can "categorically rule out" that Chancellor Kwasi Kwarteng discussed confidential information on his plans for the economy at a private champagne reception with financiers.

There are calls for an official inquiry after a story in the Sunday Times reported the chancellor met hedge fund managers who to stood gain from a crash in the pound, after the mini-budget.

The newspaper reports that at the 23 September party the chancellor was "egged on" to commit to his plan for £45bn of unfunded tax cuts.

Tory chairman Jake Berry told Sky's Sophy Ridge: "I can categorically rule out that in terms of his address he made to the group of people who were there - part of this normal treasurer's event - he did not give any insights into future plans.

"And I'm sure in terms of his private conversations, he didn't give any insight."

Berry added the gathering was not a get-together for hedge fund managers, but rather a reception for "Britain's leading entrepreneurs".

Liberal Democrat Treasury spokeswoman Sarah Olney says that "while struggling homeowners saw their mortgage bills spiral, it seems the chancellor was sipping champagne with hedge fund managers profiting from the falling pound".

“How out of touch can you get? We need an official inquiry into this now.”

Shadow chancellor Rachel Reeves is asked about Labour's plans to freeze energy prices for six months rather than two years as promised by the government.

She says: "We support the government's package - the only difference is how it's paid for."

Reeves adds that while the government is "putting it all on borrowing" Labour says there should be an extension of the windfall tax.

Kuenssberg points out that if the predicted cost of funding the two-year energy freeze is around £120bn, the windfall tax is predicted to only raise £8bn.

"We haven't got any numbers from the government," says Reeves. "But we think we can raise tens of billions from the windfall tax."

Ione Wells
Political Correspondent, BBC News

Tory MPs are already sharing mixed reactions to Liz Truss’s interview.

Conservative Party chairman Jake Berry said today that any Tory MPs who vote against the tax-cutting budget will lose the whip – meaning they’d have to sit as an independent MP.

Julian Smith MP, who backed Rishi Sunak to be leader, posted in response: “The first job of an MP is to act in the interest of their constituents and in the national interest.

"We cannot clap for carers one month and cut tax for millionaires months later.”

Liz Truss’s first big Tory rebellion is already brewing.

Economic growth has collapsed since the last Labour government, Reeves says.

She dismisses the idea that trickle-down economics is going to deliver 2% growth.

"The PM and chancellor are doing some sort of mad experiment with the UK economy," she says.

"It's failed before and it will fail again."

Laura Kuenssberg is now speaking to Labour's Rachel Reeves, the shadow chancellor.

"I thought some of what the prime minister said this morning was quite shocking," Reeves says.

She gives the example that a typical family could face interest rates rising from 2% to 6%, adding up to £8,000 in yearly mortgage repayments.

"People can't cope with those sort of increases and the prime minister doesn't seem to understand the anxiety and fear.

"This is a crisis that is made in Downing Street but ordinary people are paying for it," Reeves says.

After a segment with Mark Hamill on his relationship with Ukraine's Volodymyr Zelensky, we're back to politics.

What does Michael Gove make of Liz Truss' admissions she didn't consult the cabinet on abolishing the 45p top tax rate?

Gove says this is quite usual and the cabinet often does not always hear all the details beforehand.

"I think there are other things the cabinet could understandably have asked for, including more detail and clarity from the OBR" but making decisions like that is entirely within the PM's remit, he says.

Mark Hamill tells Kuenssberg about how he came to back Ukraine's army of drones project after he first tweeted in support of the nation when it was invaded by Russia.

"I was fascinated with President Zelensky, he's been absolutely heroic he's an amazing man," he says.

He adds that Zelensky did reference the Star Wars movies when they spoke, adding: "It's not hard to understand why... it's not hard to extrapolate an evil empire with Russia invading a sovereign nation."

He says he was surprised to realise the Ukrainian president had the time in his schedule "to even talk to me".