Much of the drama following the government's 23 September mini-budget has been to do with how international financial markets have responded.

Your mortgage and pension can be affected by turbulence in the markets - something that's often reflected in the government's cost of borrowing money.

Government borrowing costs rose yesterday, despite a second U-turn from the Prime Minister on her tax-slashing plans. The value of the pound, which initially held firm earlier on Friday, also lost ground.

The moves came as Liz Truss sacked her chancellor, Kwasi Kwarteng, and said a rise in corporation tax would now go ahead - a U-turn on one policy that had spooked markets.

Some economists have warned that these steps might not be enough to restore the UK's credibility.

It was "unlikely" that Truss's actions, on their own, would be sufficient to "regain the full confidence of the financial markets," said Paul Dales, chief UK economist at Capital Economic.

The PM has insisted she will stay in post to get the economy growing.

Image source, PA Media

Former defence minister Tobias Ellwood has hailed the appointment of Jeremy Hunt as chancellor as a "wise inclusion".

The prominent Tory MP appears to signal that he's had the Conservative whip restored, tweeting , externalthat he's "off the... naughty step & back in Pty".

Ellwood had the whip withdrawn - basically meaning he was kicked out of the parliamentary party while keeping his seat - after missing a vote of confidence in Boris Johnson's government in July.

At the time, he said he'd been unable to return from a meeting overseas.

The Conservative Party has not yet commented.

Marc Ashdown
BBC business correspondent

Image source, Reuters

Just three weeks after the phrase was coined, so-called Trussonomics is no more.

Liz Truss's ambitious plan for a high growth, high-wage, low-tax economy didn't even get off the launch pad. The new Chancellor Jeremy Hunt concedes that mistakes were made in how it was delivered.

In a remarkably frank interview with BBC Radio 4's Today programme this morning, he admitted there would be difficult decisions ahead.

Some taxes would now go up, he said, and others may not come down as quickly as people want.

Spending will not rise as fast as previously planned. Hunt will now ask all government departments to look for efficiency savings - and said even health and defence are not immune.

He also admitted that "flying blind" was another big error. That was a reference to the failure of his predecessor to submit his plan to be stress-tested by the independent Office for Budget Responsibility (OBR) to make sure the sums added up.

The reaction from the business world has been mixed. One investment fund manager described the reversal in policy as a turning point, and described Jeremy Hunt as someone the markets could trust.

But the chairman of supermarket giant Asda, Lord Stuart Rose, described Liz Truss as a "busted flush", who in his view cannot bring stability to the economy.

The judgement from the markets will come when they re-open at 08:00 on Monday. It will be the first working day since the Bank of England stopped buying government bonds to try and stabilise the pension market. The price of government borrowing was already creeping up again at close-of-play on Friday.

Jeremy Hunt said he had been given a clean slate to re-work the mini-budget. He now has two weeks to make the figures work before delivering his economic plan on 31 October.

Further details now from Sir Keir Starmer's speech.

The Labour leader questioned whether Liz Truss can remain in charge, saying: "There is still one person clinging on - the prime minister."

He added: "No doubt we will hear plenty of laughable excuses in the coming days. After 12 years of stagnation, that's all her party has left.

"But even they know she can't fix the mess she has created."

Image source, ITN pool

Starmer tells his audience in South Yorkshire that his party wants to restore "faith in politics as a force for good".

But, he says, "the damage the Conservatives have done to the economy means things are going to be really tough."

The Labour leader accuses Prime Minister Liz Truss of "grotesque chaos" in her sacking of Kwasi Kwarteng.

The phrase appears to be a reference to a 1985 conference speech by then-Labour leader Neil Kinnock.

More now from Labour - which has been calling for a general election.

Leader Sir Keir Starmer is giving a speech in Barnsley during a regional conference.

He launches a fresh attack on the government, accusing ministers of putting "party first, country second".

That is "unforgiveable", he adds, saying "the change this country needs is a Labour government".

The Conservatives have "no mandate for unfunded promises", Starmer argues.

Jeremy Hunt's morning media round came amid renewed calls from Labour for a general election.

Shadow foreign secretary David Lammy told BBC Radio 4's Today programme that the current situation "is a crisis created in No 10, paid for by working people.

"It's clear that changing the chancellor, or a partial U-turn, doesn't fix the problem."

Lammy added: "Liz Truss never had a mandate to have unfunded tax cuts for the very wealthiest in our society... what we need is certainty.

"The only way to get certainty in a democracy is to have a general election that sets a course for five years, so people they know where they stand."

Image source, Reuters

Good morning and thanks for joining our live coverage of the latest developments in UK politics.

If you're just joining us, here's a recap of what new Chancellor Jeremy Hunt told the BBC.

• Hunt admitted "mistakes" had been made with the government's mini-budget, which was unveiled on 23 September
• He said one error was to abolish the top rate of income tax for the highest earners - which is one policy the government has now reversed
• Hunt also said it was a mistake to "fly blind" and publish the mini-budget without also providing independent reassurance from the Office for Budget Responsibility (OBR) that "the sums add up"
• Speaking of "difficult decisions" ahead, he said some taxes would now go up, and that others would "not be cut as quickly as people want"
• And, he said, "spending will not rise by as much as people would like"
• Furthermore, the chancellor said, "all government departments are going to have to find more efficiencies than they were planning to"
• Hunt, who is less than 24 hours into his job, declined to give details of his plans, but said he had been given a clean slate to rework the mini-budget
• He stood by Prime Minister Liz Truss's plans for the economy, saying these were "absolutely right"
• He denied future moves by the government would represent another era of austerity, and said his team of "compassionate Conservatives" would keep in mind the most vulnerable in society

Presenters on BBC Radio 4's Today programme apologised to listeners after guest Miriam Margolyes swore on air while discussing the new chancellor.

The actress had been on the airwaves to talk about the death of fellow star Robbie Coltrane and had just taken a seat vacated by Jeremy Hunt.

She said: "When I saw him there I just said 'You've got a hell of a job, the best of luck'", adding that she'd wanted to tell him - using a colourful expression - to go away.

"But you can't say that," she said.

To which the presenters agreed: "No, you can't say that."

She told producers afterwards that she mistakenly believed she was off air.

Image source, Getty Images

Asda chairman Lord Stuart Rose says he does not believe Prime Minister Liz Truss can deliver stability for the economy.

Speaking on Radio 4's Today programme, he said it was nice to "hear a serious voice" in the new chancellor but said Jeremy Hunt would have to work very hard to increase business and consumer confidence.

Asked if Liz Truss was better off staying or going, for the good of the country, he said the PM was "a busted flush".

He also voiced concerns that "inflation is roaring away" and that "if we do not kill inflation we've got a problem that will last years not months."

Lord Rose added: "I can tell you people are terrified about inflation."

Chancellor Jeremy Hunt says the country wants "stability", stressing that Prime Minister Liz Truss has been in her job for less than five weeks. He says he thinks that Truss will be judged at an election.

You can watch his exchange with the BBC's Martha Kearney in the clip above.

Earlier, the new Chancellor Jeremy Hunt admitted that some taxes would rise.

His comments came after the government's mini-budget last month - with £45bn worth of tax cuts - caused market turbulence.

Hunt insisted the government was comprised of "compassionate Conservatives" who would keep in mind the most vulnerable in society.

Watch the key moment during his interview with BBC Radio 4's Today programme.

Ione Wells
Political Correspondent, BBC News

The new chancellor has said there are “difficult decisions” ahead.

He’s said government departments will need to find “efficiencies” (read: cuts could be on the way).

Hunt hasn’t ruled out the health department also needing to tighten its belt, including on NHS spending.

He also said taxes won’t go down as much as people hoped, and some will go up.

And he didn't rule out row-backs on Liz Truss’s pledge to boost defence spending - saying that department, too, will have to help find efficiencies, and any increase will depend on the economic situation.

This is massive. All of Liz Truss’s flagship policies are now looking uncertain. So where does that leave her, if so-called “Trussonomics” now faces the chop?

She now risks not leading on the economy to ease the markets, and also not being the unifying leader to ease her party either - with many MPs concerned her performance at yesterday's press conference didn’t offer them reassurance.

Some even told me that “at least” Boris Johnson managed at times to get the morale even of his critics up when things looked bad for them.

Some Tory MPs I’ve spoken to this morning feel Hunt’s appointment has “bought them time.”

Some MPs who backed Liz Truss are annoyed at U-turns on some of her plans. Those who didn’t like her policies think she’s not fit for the job.

She still has many more fires to fight, too, on policy - with live rows going on in the party at the moment over possible spending cuts, her plans to bring back fracking, and her plans to change planning and housebuilding rules to name but a few.

It's been a busy morning for new Chancellor Jeremy Hunt, who's less than 24 hours into the job.

During an interview with BBC Radio 4's Today programme in the last hour, he said he's been given clearance to tweak the mini-budget unveiled by the government last month.

Asked if he has a clean slate to change elements of the plan, he responded: "Yes. And the fundamental thing the prime minister wants me to do, and I need to do, is to be completely honest with the country."

He added that he would meet Treasury officials later, and the PM herself on Sunday.

During his morning media round, the new Chancellor Jeremy Hunt admitted two errors with the mini-budget unveiled by his predecessor Kwasi Kwarteng.

You can watch a clip of him speaking to BBC Radio 4's Today programme above.

Continuing with Hunt's interview on BBC Breakfast.

He says: "We have to show the world we have a plan that adds up financially. That's the way we get stability back in this situation.

"I'm doing this job because despite all those difficult decisions, I have incredible long-term confidence in our country. We have enormous potential in this country."

Pressed by BBC Breakfast on the specifics of what he has in store as chancellor, Hunt is cagey.

He says he's "not going to make any commitments" on details of spending or taxes, reiterating that he is just "hours" into the job.

He again says "difficult decisions" are ahead, but that he will be thinking about "the people who are struggling the most".

Hunt is quizzed about Truss's corporation tax U-turn on Friday.

The new chancellor offers a defence of his boss, saying he would "rather have a PM who listens and learns".

A mini-budget unveiled by Truss's former chancellor Kwasi Kwarteng last month spooked the markets and prompted a drop in the value of the pound.

Hunt is now being interviewed by BBC Breakfast.

He says this is a "compassionate Conservative government" which will make sure the needs of those who are struggling is at the "top of our minds".

He reiterates: "As we make these very difficult decisions on spending, very difficult decisions on tax, we will be thinking about families and businesses who are struggling at the moment."

Jeremy Hunt is now being interviewed on BBC Breakfast - you can watch here.