Asked more about how Rishi Sunak is doing as prime minister, Badenoch tells Laura he knows what he is doing and is running the economy well and will continue to do so.

Badenoch says there's too much "personality politics" and reporting on "Westminster gossip".

She says one of the panellists has written an entire book where the plot is "mostly conspiracy theory". While she does not name her directly, she means Nadine Dorries, whose book about politics in Westminster, The Plot, was published last year.

Asked about concerns raised by the focus group we mentioned earlier, Badenoch points to other countries that are experiencing unrest and have been grappling with cost-of-living crises.

She says there have been protests in several countries including Germany, France, Romania and the Netherlands about the same issues, saying inflation is "not a UK specific problem".

"The comfort is that despite all of those difficulties, we are doing better than those other countries", she insists.

We're hearing from Business Secretary Kemi Badenoch now.

Laura asks about the voters' views of Rishi Sunak we've just heard, and what she'd say in response to them.

Badenoch says people clearly want to see hope and optimism and the government has a plan to make the UK better.

She also says the views expressed by the group, which were also not positive about Labour leader Sir Keir Starmer, shows there is "everything to play for" in an upcoming election, which is expected later this year.

Badenoch adds that people are fed up with the "toxicity" in politics at the moment.

The programme next turns to the group of nearly 50 voters the BBC spoke to about their views on Rishi Sunak and Keir Starmer and the country as a whole.

As we mentioned earlier, their verdict was not exactly glowing.

"Depressing" and "I think it's the worst it's ever been" were some of the views expressed about the state of the country.

Voters in the group describe Sunak as "out of touch" and "wealthy", and say there's a disconnect between him and the public. Responses about Starmer were also negative, with the Labour leader described as "dull" and some members of the panel questioning what he actually believes.

The panel moves on to that theme - the mood of the country at the moment.

Former Tory MP Nadine Dorries says people have had enough and they're dealing with real life problems.

She says "we have failed them as a government" and voters are worried about a possible incoming Labour government.

There is no love for Starmer on the doorstep, she says.

Labour MP Rosena Allin-Khan says people are fed up of the pantomime that has played out and how the pandemic was handled.

Allin-Khan adds that people are sick of politicians appearing on reality television. She says Labour leader Starmer isn't auditioning for I'm a Celebrity, Get Me Out of Here - he's a serious politician.

We'll hear more from the business secretary in a bit, but Laura Kuenssberg kicks off the programme by asking Kemi Badenoch how she would describe the mood of the country.

Badenoch says there is a general sense of fear about the whole world, but specifically their own personal security.

That is why the government is looking at things that matter to them, she says, like bringing down inflation and growing the economy.

And we’re live - Sunday with Laura Kuenssberg is now on air on BBC One, the BBC News Channel and BBC iPlayer.

You can also press Play above to watch the show on this page, where we’ll bring you live text updates, clips, reaction and analysis.

As usual, we also have a panel of guests joining Laura in the studio to discuss this morning’s interviews and political news. We’ll be hearing from:

Former Culture Secretary Nadine Dorries, one of Boris Johnson's staunchest allies and an outspoken critic of Rishi Sunak. When Dorries resigned as an MP in August, she delivered a scathing attack on Sunak’s record as prime minister, accusing him of taking "the British public for fools".

Labour MP for Tooting Dr Rosena Allin-Khan, who served as a shadow health minister in the party until 2023. She is among dozens of Labour MPs who have defied leader Sir Keir Starmer’s stance on the Israel-Gaza conflict. In November, she voted against her party and backed a motion calling for a ceasefire.

And they’ll be joined by Luke Tryl, UK director of research group More in Common, who helped bring together those voters we mentioned earlier to give their views on Sunak and Starmer.

As Business Secretary, Kemi Badenoch may be asked about the UK's faltering trade talks with Canada.

This week it emerged that negotiations between the UK and Canada for a post-Brexit trade deal have broken down over a row about Canadian hormone-treated beef and imports on British cheese.

It means the UK's trading terms with Canada will now be worse than when it was part of the EU's deal with the country.

Earlier this week, Downing Street said the government would “only negotiate deals that deliver for the British people” - but added it was open to restarting talks with Canada in the future.

One topic we're likely to hear about is the latest missile strike by the Iran-backed Houthis against a UK-linked tanker in the Gulf of Aden.

The group, based in Yemen, said it targeted the Marlin Luanda on Friday in response to "American-British aggression".

The US and UK have launched air strikes on Houthi targets in response to attacks on ships in the Red Sea region.

It is the latest attack on commercial shipping by the Houthis in and around the Red Sea. The group says it is targeting vessels in the region in support of Palestinians in Gaza, where Israel is fighting Hamas.

Image source, Indian Navy

Earlier this week Laura headed to Manchester to speak to a group of nearly 50 voters with a range of political leanings about what they think of Rishi Sunak and Keir Starmer - and their verdict was not exactly a glowing endorsement of either leader.

"We're not allowed to swear, are we," quipped one of the voters.

The group was upset and frustrated about the state of the country, particularly about the cost of living and the NHS.

Hardly anyone felt Sunak was doing a good job, or had the right set of skills to do so.

And several also expressed uncertainty about what Starmer stands for, and gave the sense Labour was ahead in the polls by default.

We'll hear more about this later.

More now on the news that the Post Office's chairman has stepped down.

The organisation said Henry Staunton had been asked to leave his post by Badenoch.

In a statement released on Saturday, Badenoch said the company was "rightfully" under heightened scrutiny, adding: "I felt there was a need for new leadership, and we have parted ways with mutual consent."

More than 700 sub-postmasters and sub-postmistresses were prosecuted between 1999 and 2015 after faulty accounting software Horizon made it look as though money was missing from their shops.

The news that Staunton was going to step down was first reported by Sky News. An interim chair is expected to be appointed shortly.

Alex Therrien
Live reporter

Image source, PA

Good morning and welcome to our live coverage of Sunday with Laura Kuenssberg.

This week’s political interviews are with Business Secretary Kemi Badenoch and Labour’s shadow business secretary Jonathan Reynolds.

They will be speaking after it emerged on Saturday that the chairman of the Post Office had been asked to leave his post by Badenoch amid ongoing tensions around the Horizon IT scandal that saw hundreds of sub-postmasters wrongly convicted.

We’re also likely to hear discussion about the US and UK’s continuing airstrikes against Houthi rebel targets in Yemen, when US Navy Secretary Carlos Del Toro appears on the show later.

The show kicks off at 09:00 GMT -stay with us for updates, reaction and analysis.

You can watch live on BBC One and iPlayer, or by clicking the Play button at the top of this page.