"It’s going to be very hard for her to continue. She is in a vulnerable position," according to former Conservative MP and Treasury Minister David Gauke.

He's been telling Radio 5 Live the government "owes the country an apology”.

“The prime minister could have delivered that apology. She’s ambitious for this country but she made a very bad misjudgement; she needed to put a hand up and explain that she’d made a misjudgement.”

“In terms of the policy, we’re still not there yet,” he adds.

Gauke says the new chancellor, Jeremy Hunt "does bring a vast amount of experience and political skill".

“The prime minster was right to change the chancellor because she needed more credibility and I think Jeremy does bring more credibility," he says.

“In terms of the reputation of the Conservative Party, the economic competence, it is perfectly evident it has taken an enormous hit."

Cabinet ministers have been lining up to support Liz Truss.

Business Secretary Jacob Rees-Mogg tweeted that the PM, external has "acted decisively to provide the economic stability our country needs", and that he and his colleagues "must now get on and deliver the pro-growth reforms that will lay the foundations for our future prosperity".

Former chancellor Nadhim Zahawi, now chancellor of the Duchy of Lancaster, tweeted, external: "It's time to get Britain moving. We are determined to grow the economy, eliminate the Covid backlog and protect people from Putin's energy warfare."

Deputy Prime Minister Therese Coffey, who's a close Truss ally, said, external: "The PM is right to act now to ensure our country's economic stability - key for families and businesses - and reassure the markets of our fiscal discipline, especially in light of the worsening global economic conditions with Putin's illegal invasion of Ukraine."

And there's a tweet, external from Levelling Up Secretary Simon Clarke: "The Prime Minister has my support."

Transport Secretary Anne-Marie Trevelyan has been speaking to BBC Politics North. She has denied the PM is "out of her depth".

"What she is doing is delivering a broad programme. She has reached the conclusion that doing all the tax changes at the same time is too much for the markets to sustain in the short term, because there are so many global disruptions."

Reality Check

Jeremy Hunt has been brought in as chancellor after the prime minister U-turned over her plan to cancel a planned increase to corporation tax (from 19% to 25%) and sacked the previous chancellor.

Jeremy Hunt, was one of the candidates to be the leader of the Conservative Party this summer. He was knocked out in the first round of voting on 13 July.

During his leadership campaign, he said he would cancel the planned rise in corporation tax, scheduled for April 2023 – a pledge Liz Truss also made.

But Hunt also said he would go further and cut the tax from 19% to 15% in the first budget if he became leader.

He told the Telegraph, external that it was justified to borrow more money now to deliver the business tax cuts that can kick-start growth.

And he told the BBC’s, external Sophie Raworth: “No Conservative should offer unfunded tax cuts and no Conservative should raise taxes either”. He also said, “If we’re going to increase corporation tax… then people won’t want to set up businesses.”

The government's fiscal plan will still be delivered on 31 October, the Treasury has confirmed this evening.

"Chancellor of the Exchequer Jeremy Hunt will set out the government's Medium-Term Fiscal Plan on 31 October, alongside a full forecast from the independent Office for Budget Responsibility," it said in a statement.

Image source, Reuters

The new Chancellor Jeremy Hunt has now left Downing Street after his meeting with Prime Minister Liz Truss.

Despite reporters calling out questions, he remained silent as he walked out of No 10.

Hunt left through the gates towards the Foreign Office because Extinction Rebellion protesters are continuing to block the main Downing Street gates.

More Tory MPs have been reacting to Liz Truss's news conference, off the record.

A former minister describes it as "a car crash - don't think she can survive this".

Another MP says: "It was just bizarre. I don't know where we go from here. It's dreadful. The great and good of the party need to tell her to go."

A backbencher who supported her for the leadership and liked her mini-budget says they are “very disappointed… She’s under quite a threat and I don’t think today would have helped... She doesn’t have the presentational skills, she’s quite wooden.”

Another MP: "Not a convincing performance."

We've been gauging reaction from Conservative circles to Liz Truss's news conference and it has has been largely negative.

One backbencher told the BBC: "I voted for Liz but I think she just appointed her successor [Jeremy Hunt]. Awful. Sadly I think that hastened her demise."

A former cabinet minister described the news conference as "awful. That did not look like a woman fighting back. There's not much reason for optimism."

Another former minister said: “I can’t see how she survives. It was her policy."

An MP first elected in 2019 added: “She can’t sack a chancellor and pretend she had nothing to do with it. She trashed our reputation, she’s the captain, the sinking ship is hers."

Liz Truss's sacking of Kwasi Kwarteng has been publicly questioned by one Tory backbencher who asks why she dismissed the chancellor for implementing her own policies.

Sir Roger Gale tweeted, external: "Hard to understand why the prime minister has sacked her chancellor - a good man - for promoting the policies upon which she was elected.

"Good, though, that in Jeremy Hunt there will be an experienced pair of hands on the financial tiller."

The Liberal Democrats have called for parliament to sit tomorrow to allow the new Chancellor Jeremy Hunt to deliver a statement in the Commons.

The party is calling for him to make an urgent statement laying out plans to "scrap the mini-budget to calm the markets before they open on Monday".

Lib Dem Treasury Spokesperson Sarah Olney said: “This government has overseen a slow-motion car crash as Britain’s economy barrels towards disaster.

"For weeks Ministers have sat on their hands as their mini-budget unfolded. Parliament must sit tomorrow so we can hear from this new Chancellor.

“As the revolving door at Number 11 continues the very least the latest one can do is come to Parliament tomorrow and deliver an urgent statement putting the final nail in the coffin of this budget.”

'Reversing credibility problem very difficult' - Tory MPpublished at 16:40 British Summer Time 14 October 2022

16:40 BST 14 October 2022

Chris Mason
Political editor

"Once you eliminate the impossible, whatever remains, no matter how improbable, must be the truth."

A senior Conservative backbencher quotes Arthur Conan Doyle, the creator of Sherlock Holmes.

The MP said "the mini budget was a maxi disaster" and argued that the real reason the markets tanked after that economic statement three weeks ago was a lack of credibility, rather than the numbers.

"Reversing a numerical problem is straightforward," they said.

"Reversing a credibility problem is very difficult," they almost also said.

Except the word was rather stronger than "very".

Scotland's First Minister Nicola Sturgeon has called for a general election, saying Liz Truss is "unfit to hold the office of prime minister".

"I think the only decent thing that Tory backbenchers can do now is call time on Liz Truss and this entire UK government, and allow people across the UK to have a general election," she tells BBC News.

"This was beyond a joke, it was never funny, but Liz Truss has already, through her own decisions, crashed the economy and heaped misery on people who were already struggling with the cost-of-living crisis."

Sturgeon adds that by sacking Kwasi Kwarteng, Truss has "forced her chancellor to carry the can for her decisions".

"She had already shown herself to be completely out of her depth as prime minister, and as of today she is also a lame duck prime minister," she says.

So Jeremy Hunt is getting down to business as the new chancellor on a fast-moving day in politics.

Here are a few facts about the UK's new top finance minister.

• Brought up in Surrey and privately-educated at Charterhouse School; later studied at the University of Oxford
• Elected as MP in South West Surrey in 2005
• Appointed by then-Prime Minister David Cameron as a culture secretary, an important role during the 2012 London Olympics
• Later made health secretary, holding that post for a record stint of nearly six years, during which time he presided over a government standoff with junior doctors
• Supported Remain during the 2016 EU referendum
• Served as foreign secretary in the government of Theresa May
• Finished second to Boris Johnson in the 2019 Conservative leadership election
• Unsuccessfully stood for Tory leader again in this year's contest, pledging to slash corporation tax - a hot-button issue during the premiership of Liz Truss

• Becomes chancellor at a critical time for the UK economy, with inflation soaring and many struggling to pay energy bills and other living costs
• Married to wife Lucia, with whom he has three children

Read more here.

Image source, Reuters

Jeremy Hunt, the new Chancellor, has just arrived at Downing Street to meet with Prime Minister Liz Truss.

He did not wave or speak to reporters as he arrived via the gates to the Foreign Office and walked across the road to enter the main entrance to No 10.

Shadow chancellor Rachel Reeves says Liz Truss should "go back to the drawing board" with the mini-budget, saying it was "devised in a lockstep" with the former chancellor.

Speaking in Leeds, Reeves tells reporters that the prime minister needs to "put the country first".

Asked what she would do as chancellor to resolve the economic turmoil, she says financial institutions need to be respected.

Reeves says: "The undermining of the Bank of England, the sacking of the permanent secretary of the Treasury, the gagging of the Office for Budget Responsibility have all added to the volatility in the financial markets along with the scale of the unfunded tax cuts."

A Labour government will put "fiscal responsibility and economic credibility" first, Reeves adds.

Simon Read
Personal Finance Reporter

The yields paid out on UK government bonds - in other words the interest rates the government is forced to pay for its borrowing - have climbed since the prime minister's statement this afternoon and are now higher than at the start of the day.

That won't be an encouraging sign for Liz Truss, who had presumably hoped her speech would have a calming influence rather than push rates higher again.

The scrapping of the corporation tax cut will deliver £18bn of the £45bn of unfunded tax cuts arising from the mini budget - but economists have pointed out that the markets are still nervous about how the government will fill the rest of the budgetary black hole.

The pound is currently trading at $1.11 down nearly 2% on the day, having hit a high of $1.13.

Iain Watson
Political correspondent

I’ve been getting some reaction from Conservative MPs, after the brief press conference from the prime minister.

One of her supporters - you read that right - said "that was the worst press conference I have seen in a decade and a half."

Another MP, who voted for Truss in the leadership election, said "I had my hands over my eyes" during the speech.

Fans of Little Britain will get his reference: "It was like ‘computer says no."

And it hasn’t taken long for speculation to build that Jeremy Hunt may become a caretaker leader – ‘a Hunt coronation’ says one MP.

"Hunt is well placed to succeed her."

One long-standing critic of hers says "God knows where we will be on Monday when the markets re-open."

In the last hour, the prime minister delivered a short press conference aimed at restoring confidence in her government after a bruising week. Here's a quick recap on the main takeaways:

• Liz Truss announced a U-turn on the government's decision in the mini-budget to freeze corporation tax. It means the tax will now rise from 19% to 25% - a policy that had previously been pledged by former Chancellor Rishi Sunak. Truss said the move will raise £18bn in taxes per year
• She conceded that parts of her mini-budget "went further and faster than markets were expecting"
• The PM was repeatedly challenged by journalists over why she should remain in post when she had sacked Kwasi Kwarteng as chancellor for implementing policies she had consistently called for. Earlier this morning, No 10 said the pair had been working in "lockstep" together
• In response, Truss said she was "absolutely determined" to see through her promise to deliver economic growth

• The PM said she was "incredibly sorry" to lose Kwasi Kwarteng as chancellor but added that her newly-appointed Chancellor Jeremy Hunt "shares her vision"
• She confirmed he will deliver the medium-term fiscal plan - where the government sets out more detail on its tax and spending plans - at the end of the month

Reacting to Liz Truss's U-turn on corporation tax, the Shadow Work and Pensions Secretary Jon Ashworth says "this is a government in utter meltdown".

"Let's be clear what's just happened. Liz Truss has sacked her chancellor for carrying out the policies of Liz Truss - a set of policies that led to turmoil on the markets, a run on pension funds and soaring mortgage rates for homeowners across the country," he tells the BBC.

"This is clearly a disastrous set of decisions from a disastrous budget."

He adds that only Labour can now grow the economy sustainably and be "prudent and careful with the public finances", saying that the prime minister's political future "hangs in the balance".

"What we need is not just the change of chancellor, we need a change of government," Ashworth says.

Anjana Gadgil
BBC News in Greenwich

Kwasi Kwarteng was smiling but not taking questions as he returned home to his house in Greenwich. Neighbours gathered in the leafy south-east London street to watch as he came back from his final meeting with the prime minister as chancellor. Asked if he felt betrayed by Liz Truss; he declined to answer. Kwarteng was then asked if the prime minister should be the next person to resign.

He again made no comment as he let himself in and said goodbye to the media and neighbours standing outside.