Rachel Reeves continues her response to the Chancellor's statement.

She acknowledges that Liz Truss is finally in the chamber - having not been present earlier for an urgent question about her government.

"It is good to see the prime minister, and not as the Leader of the House of Commons had to reassure us, under the desk," she says.

"She has no authority, no credibility... the people who caused the chaos cannot fix the chaos," she adds.

Shadow chancellor Rachel Reeves responds to Hunt. She quips: "As I regularly say now, I welcome the new chancellor - the fourth in four months,"

She then says: "The damage has been done. This is a crisis made in Downing Street - but ordinary people are paying the price."

Reeves says that the climbdown on energy support calls for a windfall tax to help foot the bill.

The chancellor now tells the House the government will establish a new economic advisory panel to provide expert advice.

The chancellor tells Parliament he will publish the government’s fiscal rules alongside an OBR forecast - and further measures - on 31 October.

"I'm afraid many difficult decisions will be announced" on 31 October, Hunt says.

Hunt tells the House says the measures he's announced today will save £32bn per year.

He says he will continue with the energy price guarantee for now, but it will be reviewed in April.

"Beyond next April, the prime minister and I have reluctantly agreed" that it is "not responsible" to expose public finances to volatility in the energy markets, he says.

This new approach will "cost significantly less" and will help those who can least afford raised energy prices, he states.

Jeremy Hunt says the government is currently committed to cutting the basic rate of income tax to 19%.

But, the chancellor says at a time when markets are asking serious questions, the government cannot afford to permanently increase borrowing.

The rate will remain at 20p until economic conditions allow for a change - and a change is affordable.

Hunt repeats his previous announcements on the abolition of the health and social care levy, the cuts to dividend tax rates, scrapping VAT-free shopping for tourists - and says he will provide further details "shortly" on how alcohol duty rates will change.

There was a lot of unruly behaviour in the Commons as Hunt got up to start his speech.

As the Chancellor started speaking, there was plenty of noise from parliamentary benches.

Hunt said economic policy would be shaped by "compassionate Conservative values", which was met with jeering from the opposition.

Nick Eardley
Chief political correspondent

As Liz Truss watches on, the chancellor is preparing the country for a rocky few months.

Jeremy Hunt admits the decisions made by the government this weekend were “eye-wateringly” difficult.

He is rolling the ground for reductions in spending and increases in tax.

This is the very opposite of what the prime minister was saying last week.

The Chancellor continues, saying he must be frank about the economic challenge, adding there are short-term difficulties after his predecessor's mini-budget last month.

Jeremy Hunt points to inflation problems around the world and the fact that Russia's war with Ukraine has caused energy and food prices to soar.

Hunt assures the House and the public that every single one of his decisions "will be shaped by core compassionate Conservative values" that "will prioritise the needs of the most vulnerable".

He says he pays tribuite to his predecessors for the furlough scheme, the Energy Price Guarantee and the decision to protect the NHS.

Chancellor Jeremy Hunt says the government has to do what is necessary for economic stability.

He says the UK is a country that funds its promises and pays its debts.

The government will make decisions that are of eye watering difficulty.

Nick Eardley
Chief political correspondent

This is a big parliamentary moment. Jeremy Hunt is about to confirm to MPs that the government has ripped up its economic strategy.

There will be - undoubtedly - criticism from opposition parties.

But keep an eye on Conservative MPs too. Will any criticise the government and the U-turns of recent days?

Chancellor Jeremy Hunt is about to address MPs and answer questions about the recent economic U-turns made by the government.

Stay with us for updates.

Penny Mordaunt has been at the dispatch box for nearly an hour answering questions from MPs in Parliament.

The Leader of the House of Commons has repeatedly said there is a "genuine reason" as to why Liz Truss is not in the chamber, but she hasn't disclosed further what that reason is.

Mordaunt insisted the prime minister is not "cowering under a desk", and said Liz Truss had made decisions in the national interest, although this was difficult to do.

She has also directed questions on the budget to the Chancellor - who is to address MPs and take questions shortly.

Liz Truss has now arrived in the Commons and is sitting behind Penny Mordaunt ahead of the statement by the chancellor, which is coming up shortly.

SNP MP Patricia Gibson asks Penny Mordaunt if she thinks she would have made a better prime minister.

Mordaunt says she supports the PM and says Truss has shown great courage and duty.

"She has my admiration and respect for that," she adds.

Nick Eardley
Chief political correspondent

We’ve heard several times now that the PM is detained on urgent business - but we can’t be told why.

Yet she is due in Parliament shortly to flank the chancellor. She’s also due to address the One Nation group of Conservatives later.

We’ve asked the government if they can shed any more light.

Does the leader of the house not think MPs deserve to hear from the PM, Mordaunt is asked.

"I'm sure there will be many opportunities to hear from the prime minister - some in the next 24 hours," Mordaunt replies.

But, she says, it's appropriate for the chancellor to deliver the statement today.