Summary

  • PM Liz Truss has announced another U-turn in her government's tax-cut plan, in an effort to reassure financial markets

  • Truss says she will reverse her plan to scrap an increase in corporation tax and admits the government's mini-budget had gone "faster and further" than many expected

  • Asked why she should stay on as PM, she says she is "determined to see through what I promised"

  • It comes after the PM sacked her chancellor, Kwasi Kwarteng, and replaced him with former health and foreign secretary Jeremy Hunt

  • Kwarteng lost his job just three weeks after he announced unfunded tax cuts that triggered financial turmoil

  • In a letter, Kwarteng backs Truss's economic "vision" for the country and says he will continue to support her from the backbenches

  • The PM has been under growing pressure from within her party to rethink her economic plans, with one Tory MP telling the BBC: "It's checkmate, we're screwed”

  1. 'The scale of this Tory crisis is frightening'published at 12:21 British Summer Time 12 October 2022

    Blackford says the prime minister is "ignoring the damage of the chaos of the mini-budget and is worried about saving the chancellor's job".

    "Many families are now worried not just about heating their homes but keeping their homes.

    "The scale of this Tory crisis is frightening.

    "100,000 household a month are up for mortgage renewals - people can't afford to pay an extra £4,500 a year in interest."

  2. Postpublished at 12:21 British Summer Time 12 October 2022

    Truss says the action the government has taken means families are not facing "gargantuan energy bills".

    She says Blackford and other Scottish MPs could help by building nuclear power stations and helping get more gas from the North Sea in order to deliver a more secure energy future.

  3. Blackford challenges 'incompetence'published at 12:20 British Summer Time 12 October 2022

    Media caption,

    Blackford accuses Truss of 'scapegoating' Bank of England governor

    The Westminster leader of the SNP opens his questions by saying his thoughts and prayers are with the wife and family of Sir David Amess.

    He then moves on to the economy, and says he would have thought Truss would have said that benefits will be uprated in line with inflation.

    He mentions the rise in interest rates, saying it is hitting average families with mortgages with an extra £450 a month. "Thirty-seven days into the job this is literally the cost of the PM's incompetence," he says.

    He asks, will she now give up her desperate plan to save her chancellor's skin by scape-goating the governor of the Bank of England?

  4. Postpublished at 12:17 British Summer Time 12 October 2022

    Truss responds by saying: "What our budget has delivered is security for families for the next two winters.

    "It's made sure we're going to see higher economic growth, lower inflation and more opportunities.

    "The way we'll get our country growing is through more growth, more jobs and more opportunities - not through higher taxes, higher spending and his friends in the union stopping hard working people get to work."

  5. Postpublished at 12:17 British Summer Time 12 October 2022

    Starmer asks: "Who voted for this? Not home owners paying extra on their mortgages, not working people paying for tax cuts for the largest companies, not even most of the MPs behind the PM who know you can't pay for tax cuts on the never-never."

    Does she think the public will ever forgive the Tory party if they continue with this "madness" and "kamikaze budget?"

  6. Truss says public spending won't be cutpublished at 12:16 British Summer Time 12 October 2022
    Breaking

    Media caption,

    PM Liz Truss rules out cuts to public spending.

    Truss says she will "absolutely" stick to a pledge made during her leadership campaign that she is not planning public spending reductions.

    "We are spending almost £1tn of public spending. We were spending £700bn back in 2010," she says.

    "What we will make sure is that over the medium-term the debt is falling.

    "But we will do that not by cutting public spending, but by making sure we spend public money well."

  7. Postpublished at 12:15 British Summer Time 12 October 2022

    Keir StarmerImage source, PA Media

    Starmer says Truss is going ahead with £18bn of tax cuts for the richest businesses and "those who live off stocks and shares".

    He asks: why does Truss expect working people to pick up bill for unfunded tax cuts for those at the top?

    He also asks if she will stick to a pledge during the Tory leadership contest that she is "not planning public spending reductions".

  8. Postpublished at 12:14 British Summer Time 12 October 2022

    Truss responds to Starmer by saying he is refusing to confirm whether he supports the government's energy guarantee.

    "The opposition has said people should be supported for six months - does he think in six months pensioners should be facing very high energy bills?

    "Because that's what will happen if he doesn't support our energy guarantee."

  9. Postpublished at 12:13 British Summer Time 12 October 2022

    Starmer says he gently reminds PM Liz Truss that freezing energy bills was a Labour idea that the government then took on.

    He says Truss previously said the government were not planning public spending reductions and asks, "is she going to stick to that?"

  10. Postpublished at 12:11 British Summer Time 12 October 2022

    TrussImage source, PA Media

    Truss says that "last night the Labour Party supported bringing down national insurance".

    "I am genuinely unclear as to what the Labour Party's policy is on our energy price guarantee," she says.

    "It was the biggest part of our mini-budget. Are the opposition saying they want to reverse it and they want to see people facing energy bills of £6,000?

    "Is that what he's saying?"

  11. Postpublished at 12:11 British Summer Time 12 October 2022

    Starmer says the economy is "in turmoil" and says this isn't the time for political parties to descend into "nonsense attacks" on one another.

    He accuses the Tories of going on a "borrowing spree" and says people are "worried sick" and "won't forgive" them for sending mortgage costs through the roof.

    He asks Truss when the government will reverse their "kamikaze budget".

  12. Postpublished at 12:11 British Summer Time 12 October 2022

    Truss answers by saying "when I came into office people were facing energy bills of up to £6,000 per year".

    There are jeers from the Labour benches in response to this line.

    "We're seeing interest rates rising globally in the face of Putin's appalling war in Ukraine and we're helping people with lower stamp duty, lower energy costs, reducing inflation with our energy package and keeping taxes low," Truss says.

    She says the Labour leader has refused to confirm whether or not he backs the energy price guarantee for two years which "protects families this winter and next winter".

  13. Postpublished at 12:07 British Summer Time 12 October 2022

    Starmer says the PM is "ducking the question" which shows why investors have lost confidence in her government.

    Reflecting on a couple whose mortgage was withdrawn and are "devastated", Starmer asks if the PM understands why the couple are furious with her?

  14. Postpublished at 12:07 British Summer Time 12 October 2022

    Truss responds that the government has taken "decisive action to make sure that people are not facing energy bills of £6,000 for two years".

    "We've also taken decisive action to make sure that we are not facing the highest taxes for 70 years in the face of a global economic slowdown," she says.

    "As a result of our action... we will see higher growth and lower inflation."

    Yesterday the International Monetary Fund said her plans could boost growth but risked stoking inflation.

  15. Postpublished at 12:06 British Summer Time 12 October 2022

    StarmerImage source, PA Media

    Starmer begins by saying the loss of Sir David Amess was deeply felt across the benches and he also sends his condolences to people in Creeslough, where 10 people were killed in an explosion.

    His first question to Prime Minister Truss is about Business Secretary Rees Mogg's comments to media outlets that UK market turmoil wasn't sparked by the government's mini-budget.

    He asks: "Does the prime minister agree with him?"

  16. Truss commits on no-fault evictionspublished at 12:04 British Summer Time 12 October 2022

    Graham Stringer MP asks the PM whether she will commit to getting rid of no-fault evictions. The PM says she will commit to that.

    A ban on no-fault evictions is due to become law next year after being promised by Boris Johnson at the 2019 general election.

    There had been some suggestions that the plans - which would stop landlords in England evicting tenants without giving a reson - could be scrapped by the government

  17. Truss pays tribute to Sir David Amesspublished at 12:04 British Summer Time 12 October 2022

    Liz Truss opens PMQs by marking that this Saturday marks the anniversary of the murder of Sir David Amess, a "superb parliamentarian".

    She says the thoughts of the House are with his wife and children.

  18. PM Truss on her feetpublished at 12:01 British Summer Time 12 October 2022

    Liz TrussImage source, House of Commons

    Prime Minister Liz Truss is on her feet in the House of Commons as PMQs gets under way.

  19. Expect a turbulent ridepublished at 12:00 British Summer Time 12 October 2022

    Chris Mason
    Political editor

    Hello from the press gallery of the House of Commons.

    There is fair dose of gallows humour privately from Conservative backbenchers.

    And a jittery nervousness within government.

    And there’s a very good reason for that: they are in an almighty bind.

    Pulling off something that is both economically and politically credible.

    It looks near impossible right now with turbulence in equal measure in the markets and on the backbenches.

  20. What could Liz Truss be pressed on?published at 11:56 British Summer Time 12 October 2022

    After a tumultuous first month in office, Liz Truss will face questions from MPs shortly for her second PMQs since entering office.

    We've looked at some of the topics Truss could be pressed on today:

    • The mini-budget: The reaction from Tory MPs and the markets to 31 Oct statement will give the government a better indication of whether its mini-budget can survive contact with political reality
    • Uprating benefits: The former chancellor Rishi Sunak had promised to tie benefits payments to inflation. But Truss's government is yet to commit to this
    • Fracking: Truss has said fracking will only resume where there is local consent. But Conservative opinion is divided on fracking, which was halted in 2019 following opposition from environmentalists
    • Planning reform: Another big plank of Truss's programme is reform of planning law, but no date has been set to debate these reforms. Planning reform is a touchy subject for some Tory MPs, particularly those in rural areas

    Read more: The pitfalls lying ahead of an embattled prime minister