The government needs to be honest about the "reduction in our national standard of living" which has been caused by the war in Ukraine and other global factors, the former governor of the Bank of England, Mervyn King has told Laura Kuenssberg.

There are three main challenges that the UK faces including high inflation, high national debt and the fact the country is "saving far too little" and not investing enough, he added.

He said the best way to tackle inflation is through "slow growth" and pinned the blame on central banks around the world who "made the mistake during the lockdown period of thinking they should print a lot of money" to support the economy whilst covid was causing it to contract.

He also warned that the UK could face a period that is "more difficult" than the period of austerity under former Chancellor George Osbourne.

Meanwhile ex-leader of the Tories Iain Duncan Smith outlined the possible pros and cons of a Johnson or Sunak government.

Johnson "cuts through" to the public but he is still facing an inquiry into Partygate and it is not clear how well he can focus on administration, Duncan Smith says. However, in his view, Sunak is good at government administration but the "jury's out" on if he can campaign well.

Prof Jane Green, director of the Nuffield Politics Research Centre, cast doubt on Johnson's popularity, saying "he's a very polarising character" who did not have "very high popularity" compared to Theresa May, although he was favoured by those who voted leave in the EU referendum.

Asked whether NHS spending would increase in line with inflation under Labour, Starmer says "of course the NHS needs more money" but it also needs "reform".

He says his wife works in the NHS, as did his mother and sister - and the health service needs to move to a "preventative model".

Labour's Sir Keir Starmer is asked what he would do if he was to take over as PM, particularly in the light of recent economic developments.

"Any incoming government will have to pick up the mess of the Tory's making," Starmer says.

"We need the OBR report so we can see the extent of the damage... I know there are going to be tough choices meaning can't do some of the things we want to do as a Labour government," Starmer says.

"We will pay for day-to-day spend, we will only borrow to invest and we will get debt down as a percentage of our economy," he says, adding that there will also be changes to the windfall tax, non-dom status, tax breaks for private schools and loopholes for tax equity.

Challenged on whether Labour's current polling popularity is more down to a Tory collapse, Starmer says he's not complacent.

He says it's very hard to get seen and heard in opposition, saying: "The beam of the lighthouse only comes round so often."

But he says Labour must fight for every single vote.

He reiterates that the public are worrying about their bills and mortgages "as a direct result of the Tories crashing the economy".

Next up is Keir Starmer, leader of the Labour Party, who is asked which Conservative leadership candidate he would prefer to face.

He doesn't answer, saying he doesn't want to spend too much time on the "chaotic circus" within the Tory Party and that he will instead focus on the people who are "fed up to the back teeth" of the current situation and the cost of living crisis.

Starmer says "there is a choice to be made. We need a general election - do the public want to continue with this chaos or do they want stability with a Labour government?".

Before Penny Mordaunt's interview, we heard from Laura Kuenssberg's panel.

Senior Conservative MP and former party leader, Iain Duncan-Smith says he does not yet know who he is going to support to be the next prime minister.

He tells the programme “I desperately want my party to settle down”.

He added the party should choose someone that everyone is “going to get behind”. He also said the party must decide if it truly wants to “make a go of these last two years” until the next election.

Meanwhile, the director of the Nuffield Politics Research Centre at Oxford University and an elections analyst, Jane Green, said the Labour lead in recent polls is “really significant” and that what the public cares about is the economy and not a Tory leadership contest.

Former governor of the Bank of England, Mervyn King, also highlighted the difficult economic situation the UK, and other countries around the world find themselves in: “Public finances both in the US and the UK were not put on a sustainable track,” he said, adding that central banks have lost control of inflation.

Read more about Sunday's panel here.

Mordaunt denies reports she's been in touch with Boris Johnson's camp potentially offering her support in return for a job.

"No, no, it's completely false," she says.

One of the Tory ambitions is to get net migration to under 100,000 people a year. Would that still be a priority for Mordaunt?

"Again - I'm not being drawn into the details," Mordaunt says, adding: "I believe in cabinet collective responsibility."

"If I become PM I won't be imposing my decisions or policy that I've just made up in a room by myself - I will be talking with my cabinet."

A few weeks ago, Mordaunt said benefits should rise in line with inflation - does she stand by that now?

"We have always protected people, but I'm not being drawn into the detail," she says.

Pressed again, she says her mandate lies in the 2019 manifesto.

Asked about her priorities ahead of a difficult winter, Mordaunt says she recognises people need support and "targeted and measured" tax cuts.

She does not confirm whether she would make cuts to the NHS: "What we have to do is make efficiency savings" but have to ensure the services people need are still there. "I am not going to be drawn into the details of this," she says.

Mordaunt says Jeremy Hunt would stay as chancellor under her premiership - adding that she's sat down with him at the Treasury and been briefed ahead of a planned fiscal statement on 31 October.

She won't be drawn on what her economic plans would be - despite Hunt saying he would raise taxes and cut spending.

"I'm not going to talk about the details of that package ... that would be wrong," she says.

Laura Kuenssberg's first guest is Commons leader Penny Mordaunt - one of potentially three candidates to take over from Liz Truss as prime minister.

Asked whether she thinks that Truss' policies were "great", like Mordaunt said in the summer when she backed the outgoing PM, she says she "regrets" the mini-budget and it is "critical" that stability and confidence are now rebuilt.

Image source, PA Media

Shortly we’ll be hearing from Commons leader Penny Mordaunt - one of three potential candidates to take over from Liz Truss.

Mordaunt was one of the less well-known candidates in the summer Tory leadership contest, but made it through to the final three.

In the first four ballots of Tory MPs in July, she came a clear second behind Rishi Sunak. She eventually lost out to Mr Sunak and Liz Truss in the last round, before Conservative members had the final say.

Her strong showing was rewarded when she was named Leader of the House of Commons by Ms Truss on her first day in office.

Since then, she has impressed colleagues at Westminster with a series of sure-footed appearances and her use of humour in the Commons, at a time when crisis was engulfing the government.

• Find out more about Penny Mordaunt

Stay with us for live coverage of the main guests on Sunday with Laura Kuenssberg.

We'll bring you the latest lines from the show's interviews - and you can also watch it from 9am by clicking on the play button in the picture at the top of this page.

Image source, Getty Images

"There is a lot of love out there for Boris Johson - I've been a big fan of Boris Johnson so many times, but this isn't the time for Boris's style," Baker said in his interview with Sky's Sophy Ridge.

Baker said that he has heard from an MP who said he would rather lose the whip than vote for Johnson. "Voters out there love him and he's a wonderful man - but he doesn't have that meticulous compliance with tedious rules."

The UK cannot afford to be back where it is now in a couple of months, Baker said, which is almost guaranteed to happen if Johnson becomes prime minister again: "He's bound to implode, taking down the whole government with him", says Baker, adding: "We just can't do that again.

"I want Rishi to win and I want Conservative members to please engage with the reality."

On the events that led to the resignation of Liz Truss, who Steve Baker backed during the leadership contest in the summer, he says he could "not have foreseen" them.

Current Northern Ireland minister, Boris Johnson ally and Brexiteer Steve Baker has declared he is supporting Rishi Sunak.

"Boris would be a guaranteed disaster" because of the ongoing inquiry into Partygate, Baker says.

Listening to and analysing the interviews on Sunday with Laura Kuenssberg this week are former Bank of England governor Lord King, ex-Conservative Party leader Sir Iain Duncan Smith and Prof Jane Green, professor of political science and British politics at the University of Oxford's Nuffield College.

Mervyn King was governor of the Bank of England for a decade between 2003 and 2013 - putting him in a key role during the 2008 financial crisis. He was made a life peer after leaving the Bank in 2013.

Iain Duncan Smith led the Conservatives from 2001 to 2003 while in opposition. When the Tory-Lib Dem coalition government was formed in 2010 he was appointed Work and Pensions Secretary - a post he held until 2016. He set up think tank the Centre for Social Justice in 2003.

Jane Green is director of the Nuffield Politics Research Centre at Oxford University and an elections analyst. She is co-director of the British Election Study which has been analysing UK voting behaviour since 1964.

Image source, PA Media/Reuters

On Sunday with Laura Kuenssberg this week is Conservative leadership hopeful Penny Mordaunt. She’s hoping to fare better this time than she did in the summer when she came third in the poll of MPs - behind Rishi Sunak and Liz Truss.

We’ll find out if she's confident she will get the 100 nominations necessary to secure a place in this week’s contest to replace Truss - and whether she intends standing for the same policies she put forward during the last leadership election.

Two other Conservatives are on the programme this morning. Business Secretary Jacob Rees-Mogg is on - he’s backing former Prime Minister Boris Johnson. Dominic Raab - who was deputy prime minister under Johnson but is backing Sunak - will also face Kuenssberg’s questions.

Later we’ll hear from Labour leader Sir Keir Starmer. With his party enjoying a huge lead in the polls over the Conservatives he’s called for a general election following Truss’ resignation.

Whether he’ll get one seems unlikely at the moment - so the next question is - who would he prefer to face across the despatch box in the Commons - Sunak, Mordaunt or a returning Johnson?

Turning to Ukraine, and Laura Kuenssberg has been speaking to Ukraine’s Defence Minister Oleksii Reznikov - as the war enters its ninth month.

It’s the day before Conservative MPs choose which of their colleagues they think are best placed to lead the party - and the country - following Liz Truss’ resignation 45 days into the job of being prime minister.

As part of an accelerated leadership election timetable, nominations close at 2pm tomorrow. Each candidate needs to get the backing of at least 100 Conservative MPs to be on the ballot. There are a total of 357 of them in the Commons, so only three are expected to get through.

At the moment the only declared candidate is Commons leader Penny Mordaunt, who is one of the guests on Sunday with Laura Kuenssberg at 9pm this morning.

Stay here as we carry the programme live on this page and bring you the top news lines, best quotes, video clips, analysis and reaction.

Image source, .

Image source, Reuters

The SNP's Westminster leader Ian Blackford is urging Labour to submit a formal vote of no confidence in the government in an attempt to force a general election.

Blackford says it is "time for people to have their say", adding the Tories "simply cannot be allowed to impose a third... prime minister without an election. It would be unthinkable and undemocratic".

He has written to Labour leader Sir Keir Starmer - who as the leader of the opposition is the only MP who can submit a no confidence motion.

Blackford says it is "vital that opposition parties work together to force a vote of no confidence, and pile pressure on the Tories to call a general election, so voters can decide".

However, with the Tories holding a majority at Westminster, it is not certain such a motion would pass.