Liz Truss news – live: Bank warns of interest rate hike as Hunt abandons PM’s tax plan

Angela Rayner has castigated the Conservative party for the “catastrophe” it has “wreaked upon Britain” following a choatic few weeks under Liz Truss’s government.

Taking to Twitter, the deputy Labour leader said: “They can’t even admit the grotesque mess they’ve caused, let alone be trusted to clean it up. No mandate. No credibility. No more. They’re unfit to govern.”

A senior SNP has urged the the Scottish Conservatives to “grow a backbone” and lend their voices to calls for Liz Truss to resign.

Mhairi Black, shadow secretary for Scotland, said Ms Truss’s premiership is “over” following a week of turmoil in the Conservative Party which saw Jeremy Hunt replace Kwasi Kwarteng as Chancellor on Friday – the fourth person to hold the position since July.

Ms Black said the prime minister is “running on borrowed time”.

“It is therefore on the Scottish Tories to end their silence, grow a backbone and call for her to go,” she added.

The Bank of England has warned of higher interest rates than expected next month.

Speaking in Washington this morning, the Bank of England governor Andrew Bailey said: “As things stand today, my best guess is that inflationary pressures will require a stronger response than we perhaps thought in August.”

He added that the Bank “will not hesitate” to raise interest rates to curb inflation.”

Thomas Kingsley reports:

Here’s Jeremy Hunt speaking to Peston earlier, where he told the ITV political editor that a “pretty much full budget” was coming on 31 October.

Labour members have said their party has “a real chance” of winning the next election after 12 years in opposition.

The Press Association spoke to party members at Labour’s regional conference in Barnsley today after speeches from Sir Keir Starmer and Rachel Reeves.

Following Sir Keir’s speech, Bradford councillor Shakeela Lal said Labour now had “a real chance” of winning the next election,” adding the party had a “really clear plan and idea” of how they would govern.

Jo Gogarty, 60, from Wakefield, who joined the Labour Party six months ago, said: “We’ve got a chance of winning an election. I think we have got the right direction – it’s a more strategic direction.”

Kevin Shutt, who has been a councillor in Grimsby for five months, said the situation in the country was “depressing”.

“I feel so sad we’ve reached this position where they just don’t leave, they’re just hanging on – that’s what they do.

Matt Patrick, leader of North East Lincolnshire Labour group, said the mood was “very positive,” adding: “There’s a growing sense of confidence that we really haven’t had for some time. Right now I want to knock on a few doors.”

The new Chancellor has admitted that the medium-term fiscal plan on 31 October will now effectively amount to a full budget, as he signalled a major shift in the economic policies that brought Liz Truss to power.

That statement, he told ITV’s Robert Peston on Saturday, would “pretty much” be delivering a “proper” budget.

“We’re going to be talking about tax,” he said. “We’re going to be talking about spending, we’re going to be talking about medium and long-term plans.”

Earlier, the chancellor had 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 significant caucus of Tory MPs.

A look at Jeremy Hunt’s career so far from Thomas Kingsley:

Political pundit Twitter was abuzz after Jeremy Hunt’s massive overhaul of Liz Truss’s government.

In a series of television and radio interviews this morning the new chancellor indicated he would abandon the spirit and remaining content of Liz Truss’s dash for growth by turning to a programme of tax cuts and spending rises to alleviate debt and reassure markets.

“Truss ran to be the antithesis of Sunak, she now governs as Sunak,” said LBC presenter Lewis Goodall, referring to the similarity of Mr Hunt’s plan to Rishi Sunak’s pitch for the Tory leadership when he ran against Ms Truss. Mr Hunt backed Mr Sunak in the race.

ITV’s Robert Peston said Mr Hunt thought he was being pranked when he was asked to see Ms Truss yesterday. After this morning, “maybe the prank is on her”, said Peston.

Sky’s Beth Rigby said Mr Hunt had “the air of someone who is now in the driving seat”.

Paul Waugh from the i suggests Mr Hunt said all the things Ms Truss knew had to change but did not dare to say in her much-derided press conference yesterday.

Scottish Labour leader Anas Sarwar said his party is ready to fight a general election, backing the call of national leader Sir Keir Starmer.

Speaking to BBC Radio Scotland’s Good Morning Scotland today, he said: “I think it’s clear Liz Truss is a lame duck Prime Minister. She’s Prime Minister just in name.

“Keir Starmer is absolutely right to demand a general election.

“He’s also right to highlight that we don’t want just this government to lose, we want to deserve to win.”

New polling released on 5 October by YouGov showed Scottish Labour on 31 per cent of the vote in a general election in Scotland – an increase of nine points.

We have had confirmation that Tobias Ellwood MP has had the Tory whip restored.

The chair of the Commons Defence Committee was suspendde after he failed to vote for Boris Johnson’s government in a confidence vote in July.

Mr Ellwood, a former minister, had argued he was unable to make it to the crucial vote as he struggled to travel back from a meeting with the president of Moldova.

At the time, he said he was “very sorry” he did not make it back to parliament in time.

On Saturday, the Bournemouth East MP tweeted that he was glad “to be off the naughty step & back in Pty as we enter this re-set”.

A spokesman on behalf of the whips office confirmed that Mr Ellwood has had the whip restored.