Thanks for joining us our live coverage of another busy day in UK politics.

Here's what went on:

• Newly-appointed Chancellor Jeremy Hunt said "mistakes" were made in the tax-slashing mini-budget announced by his predecessor Kwasi Kwarteng last month
• Hunt told the BBC that "difficult decisions" would now need to be made - include raising taxes in some cases, a squeeze on public spending, and cutbacks for government departments
• He refused to commit to a pledge from Boris Johnson's government to raise benefits in line with inflation - though he said he was mindful of the needs of the most vulnerable
• Hunt also confirmed to ITV that a fiscal plan due to be published at the end of the month would "pretty much" represent a new, "proper" Budget
• The Bank of England chief said he'd already spoken to Hunt, describing their conversation as "an immediate meeting of minds" on financial stability
• Andrew Bailey warned that the Bank may have to hike up interest rates even further than expected, in a bid to curb inflation that's driving cost-of-living pressures
• Prime Minister Liz Truss faced further criticism over her handling of the economy - with Labour leader Sir Keir Starmer accusing her of causing "grotesque chaos" and Asda chairman, Lord Stuart Rose, calling her a "busted flush"
• However, Truss retains the public backing of several cabinet ministers following a major policy U-turn on Friday

• MPs have paid tribute to Sir David Amess on the first anniversary of the murder of the Essex MP
• And actress Miriam Margolyes caused controversy by swearing live on BBC Radio 4's Today programme while discussing Hunt - for which presenters apologised - saying she thought she was off air

We're pausing our live coverage for now but you can still follow the latest developments here. Today's page was brought to you by Anna Boyd, James Gregory, Alex Therrien, Dan Coles and James FitzGerald.

If you want to catch up with more of the big stories - don't forget to watch Sunday with Laura Kuenssberg tomorrow morning.

On this week's show:

• Chancellor Jeremy Hunt, shadow business secretary Jonathan Reynolds and founders of vaccine firm BioNTech, Ugur Sahin and Ozlem Tureci
• Guests on the panel are Unison general secretary Christina McAnea, Tesco chairman John Allan and former Health Secretary Matt Hancock
• Watch live on BBC One and iPlayer at 09:00 BST tomorrow
• Get live updates, reaction and analysis from on the BBC News website

Image source, Getty Images

Former Brexit Secretary David Davis is among the senior Tory MPs who've today given their reaction to the appointment of Jeremy Hunt as chancellor.

Commenting on Hunt's morning media appearances, Davis said his colleague had "got off to a good start" and "shown himself to be fairly self-assured".

As for the prime minister, Davis told GB News that Liz Truss didn't have "very good odds" for survival.

That said, Davis estimated that the appetite for another Tory leadership contest was low.

"It will make the party look stupid and it will be uncomfortable, painful even," he commented.

Earlier, we heard the new chancellor, Jeremy Hunt, say it was a mistake to "fly blind" and publish the mini-budget without also providing independent reassurance from the Office for Budget Responsibility (OBR).

So, what is the OBR and why did its absence in last month's mini-budget cause so much turmoil?

The OBR

This watchdog is independent of the government and examines the impact of Budget decisions.

Budgets are held when the government announces which taxes it wants to raise or lower, and how it intends to spend public money.

The OBR's job includes setting out economic forecasts - calculations of the most likely thing that will happen in the future, given all the facts available.

These forecasts set out the cost and impact of new policies, how much tax will be raised, and what that all means for borrowing and growth.

What happened with the 23 September mini-budget?

OBR forecasts were not published alongside the plans of then-Chancellor Kwasi Kwarteng, and the government was accused of avoiding scrutiny of its plans for big tax cuts.

After the statement, the value of the pound fell, the cost of government borrowing went up and the Bank of England was forced to step in to protect pension funds.

Critics - including MPs on the Treasury Select Committee - suggested the lack of forecasts had contributed to this reaction by affecting confidence in the UK economy, and called for them to be published.

Read more about the OBR here.

Laura Kuenssberg
Presenter, Sunday with Laura Kuenssberg

Image source, Getty Images

Under acute pressure from the markets, Prime Minister Liz Truss had a choice - stick with her plan and say goodbye to what economic credibility her government had left, or say farewell to her proposals and try to muddle on.

In other words - change or die. She chose change. But has she killed off what political authority she had left and handed it to someone else?

Jeremy Hunt, her new chancellor and a guest on my show tomorrow morning, has in a little over 24 hours junked Truss's economic strategy of tax cuts and a promise not to cut public spending.

He's made a virtue out of being candid about how bad things are - dangling the implication the prime minister has not levelled with the public about what comes next.

Whether it's intentional or not, the message isn't that subtle: after the craziness of the last few weeks, here comes an experienced grown-up to take control.

And it's given the impression, as one former minister put it, that "he's gone out and said he's in charge."

Hunt told me in our interview for Sunday's programme - as you might expect - that Truss is still the boss.

Yet the way in which he has been able to comprehensively ditch her programme is striking, and shifts the political balance in Downing Street.

• Read Laura's full blog here
• Watch Sunday with Laura Kuenssberg live on BBC One and iPlayer at 09:00 BST tomorrow

We've just heard the Bank of England's chief speak on topics including pensions.

The Bank works to maintain financial stability, and to keep the cost of living stable.

Financial markets were thrown into turmoil last month when the government unveiled huge tax cuts in its mini-budget, without saying how these would be funded.

The financial volatility prompted the Bank to commit to buying up government bonds (also known in the UK as gilts), to stabilise their price and provide reassurance to some pension schemes.

Gilts are like IOU notes issued by the government, which sells them to raise money for public spending. Pension funds invest in them because they tend to provide a reliable return over a long period.

However, the recent sharp fall in the value of gilts forced pension funds to sell them, threatening to create a "downward spiral" of falling prices as more were offloaded, leaving some funds close to collapse.

The Bank also reviews interest rates about every six weeks to try to ensure that the cost of living rises at no more than its target of 2% a year. This measure, called inflation, is currently close to 10%.

How does raising interest rates help to combat inflation? By making it more expensive to borrow money. This encourages people to borrow and spend less.

The governor of the Bank of England has given an update on his initial conversations with Jeremy Hunt, the new chancellor who was appointed yesterday.

"It was a very clear and immediate meeting of minds on the importance of stability and fiscal sustainability," Andrew Bailey told the seminar in Washington DC.

He described that comment as a "clear message for markets".

More remarks from the governor of the Bank of England during a speech in Washington.

Andrew Bailey acknowledged that UK financial markets have seen "violent moves" in recent weeks, following the government's mini-budget on 23 September.

Bailey said the Bank had intervened to deal with "a threat to the stability of the financial system".

Amid market turmoil following the mini-budget, the Bank stepped in with a pledge to buy government debt - in a move that was designed to prop up the value of investments held by pension funds.

Bailey said there was a difference between monetary policy and temporary interventions aimed at financial stability - and that the Bank needed to be able to do both.

The governor of the Bank of England has warned interest rates might need to rise by a larger amount than previously expected.

In a speech in Washington DC, Andrew Bailey said: "We will not hesitate to raise interest rates to meet the inflation target. And, as things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August."

The next interest rate rise decision is on 3 November, shortly after the government’s economic plan on 31 October. The markets were expecting a rise of between 0.75% and 1% when the Bank's Monetary Policy Committee (MPC) made its decision.

Bailey also commented on the turmoil in the pension market following the mini-budget.

“UK financial markets have experienced some violent moves in the last few weeks, particularly at the long-end of the Government debt market," he said.

“This has put the spotlight on flaws in the strategy and structure of one important part of a lot of pension funds”.

Image source, Getty Images

The governor of the Bank of England, Andrew Bailey, has just started speaking to delegates at the headquarters of the International Monetary Fund (IMF) in Washington.

Bailey earlier told reporters that the Bank may be forced to raise interest rates higher than previously thought to tackle a steep rise in inflation.

We'll bring you updates from what he says.

Ben Boulos
BBC Breakfast business presenter

Even on a Saturday morning, traders at Romford market were out early today.

They had work to do - and so too, they were adamant, did the new chancellor.

“What will he do to stabilise the pound?” asked Graham, a trader who has been working at the market for 15 years. “Everything we buy in from abroad is costing more.”

Caron, who has had a stall here for 25 years, said she got lucky and won a holiday recently, but her luck ran out when she went to change her money. “I went to get some dollars and the best rate I could find was $1.08 to the pound. It’s a lot worse than just a few years ago.”

Santokh’s fruit and veg stall was among the busiest this morning but he was also worried. “I’m on a variable mortgage and rates keep going up each month. How will the new government stop that? With everything else getting more expensive, people can’t cope.”

Financial markets may feel a long way from people’s daily lives but the economic shocks are also being felt in markets like this one already.

With all this talk of U-turns, you might be wondering which policies of Prime Minister Liz Truss announced on 23 September have been reversed, and which are still in play.

Image source, .

Simon Jack
Business editor

As markets closed on Friday, the cost of government borrowing was creeping back up to the level at which the Bank of England stepped in to buy bonds from specialist pension fund managers facing collapse.

But the Bank has made clear that its last direct intervention was on Friday.

It also made clear it only stepped in to preserve financial stability.

It is not there to bring government borrowing costs down - quite the opposite in fact - it is committed to raising interest rates to fight inflation.

What happens on Monday when the Bank, the biggest bond buyer of the last decade, goes on strike?

Simon French from investment bank Panmure Gordon told the BBC that installing Jeremy Hunt as chancellor would help and his comments to the media on Saturday morning were sensible.

"He acknowledged the economy we actually have and not the one we wish we had," French said. "My sense is they have done enough for now to keep the markets happy."

But Mohamed El-Erian, a renowned economist and President of Queen's College, Cambridge, told the BBC he believed the government had not yet done enough to reassure the financial markets.

He said: "They're going to be pushed to find more ways to cover what is still a significant hole in the budget."

Read more from Simon here.

A fresh line from Jeremy Hunt, the new chancellor, who's been speaking to ITV's political editor Robert Peston.

Hunt confirmed that the government's medium-term fiscal plan, due to be delivered on 31 October, will "pretty much" represent a "proper" Budget.

"We're going to be talking about tax," Hunt said. "We're going to be talking about spending, we're going to be talking about medium and long-term plans."

The so-called mini-budget presented by Hunt's predecessor Kwasi Kwarteng on 23 September prompted market turbulence and a drop in the value of the pound.

Earlier, the chancellor declined to be drawn into the specifics of the package he will deliver in two weeks' time, but signalled neither the NHS nor defence spending will be immune from potential cuts.

He also declined to say whether benefits will rise with inflation, something demanded by a number of Tory MPs.

Image source, Reuters

Thanks for joining our latest live coverage of a tumultuous time in UK politics.

Here's a little look at what's been going on so far today.

• New Chancellor Jeremy Hunt has admitted "mistakes" were made in the tax-slashing mini-budget announced by his predecessor Kwasi Kwarteng last month
• Hunt told the BBC this morning that "difficult decisions" would now need to be made - with taxes likely to rise in some cases, spending unlikely to increase "as much as people would like", and government departments asked to make cutbacks
• He declined to give more detail, and also refused to commit to a pledge from Boris Johnson's government to raise benefits in line with inflation - though he said he was mindful of the needs of the most vulnerable
• Opposition calls for a general election have been building, with Labour leader Sir Keir Starmer accusing Prime Minister Liz Truss of "clinging on" and causing "grotesque chaos" in the economy
• Truss has also faced criticism from her own party following Friday's U-turn on a key leadership pledge, which means that a rise in corporation tax will go ahead after all
• However, the embattled PM has received the public backing of multiple cabinet ministers, including her deputy Therese Coffey, as well as Nadhim Zahawi and Jacob Rees-Mogg
• MPs have paid tribute to Sir David Amess on the first anniversary of the murder of the Essex MP

Image source, PA Media

The SNP’s Westminster leader Ian Blackford has labelled Friday’s events “a shambles”.

He's also called for an immediate general election.

Blackford told the BBC's Good Morning Scotland radio programme: “We have really seen the credibility for financial competence, for financial management, of this government really put to bed.”

He added that the public was paying the price, through rising inflation and soaring mortgage rates.

Blackford said: “The person that has caused that is the prime minister and the person that should be paying the price today is the prime minister, who needs to go."

Scottish Labour leader Anas Sarwar also told the programme the government was “at the end of the road”.

He said: “Liz Truss is now a lame duck prime minister. She is prime minister just in name.”

Labour leader Sir Keir Starmer has accused the government of creating "grotesque chaos" in its handling of the economy.

In a speech in Barnsley earlier, he made multiple references to a 1985 speech by former party leader Neil Kinnock which attacked the left-wing Militant group in Liverpool.

But Starmer's criticism is all aimed at the Conservatives in Westminster, who he suggests are "playing politics" with people's finances.

Prime Minister Liz Truss is one of many politicians who have marked the first anniversary of the death of Sir David Amess - tweeting to say she is thinking of his family.

Sir David was stabbed while meeting constituents at Belfairs Methodist Church in Leigh-on-Sea, Essex, on 15 October last year.

Ali Harbi Ali was given a whole-life jail sentence in April for murdering the Southend West MP.

Ali told his trial he was seeking revenge against MPs who had voted for airstrikes on Syria.

Sir David, a father of five, had long campaigned for Southend to become a city and this became a reality after his death.

Others who've posted about Sir David include Sir Keir Starmer, external, Boris Johnson, external and Kim Leadbeater, external, whose sister Jo Cox was murdered whilst serving as an MP.

As the old saying goes, a week is a long time in politics.

But sometimes a lot can happen in just one day, too.

Friday proved a particularly dizzying 24 hours, as Prime Minister Liz Truss sacked her chancellor, appointed a replacement and announced a U-turn on a key tax-cutting pledge.

Our video above rounds up the key developments in less than a minute.

Image source, Sky pool

Labour figures have been queuing up today to criticise the prime minister, saying Liz Truss has damaged the economy.

Shadow chancellor Rachel Reeves earlier spoke alongside Labour leader Sir Keir Starmer at a regional conference in Barnsley.

Reeves says Kwasi Kwarteng - sacked by Truss on Friday - was not a "rogue chancellor" but was in fact a close ally of the PM, enacting her pledges.

The pair "behaved like two gamblers in a casino" over the economy, she alleges.