UK

Shoppers are paying a record 10.6% more for food than they were a year ago, figures show. Overall shop price inflation accelerated to 5.7% in September, up from 5.1% in August, in another record since the British Retail Consortium-Nielson IQ index began in 2005. Food price inflation rocketed past last month’s 9.3% to 10.6%, driven

The Bank of England’s chief economist has said the government’s mini-budget, which led to the pound falling to a record low against the dollar, will require “a significant monetary policy response”. Speaking at the International Monetary Policy Forum, Huw Pill reasserted the Bank of England’s willingness to act to rein in inflation. Mortgage repayments could

The collapse of the value of the pound in the wake of Friday’s mini-budget appears to have stalled, for now, but only thanks to market expectations that the Bank of England will be forced to intervene. The rout for sterling, which began after Chancellor Kwasi Kwarteng revealed a £45bn tax cut plan on top of

The pound has fallen to a record low against the dollar amid a fresh investor rush towards the US currency globally. Sterling slipped by nearly 5% early on Monday to $1.0327 – building on fresh 1985 lows seen on Friday after UK chancellor Kwasi Kwarteng unveiled the biggest programme of tax cuts for 50 years.

The Bank of England says it “will not hesitate to change interest rates as necessary” after markets reacted badly to the chancellor’s tax-cutting mini-budget. In a statement, the Bank said it was “monitoring developments in financial markets very closely in light of the significant repricing of financial assets”. It came after the pound fell to

A freed British prisoner of war who was held by Russian-backed separatists has told Sky News how he was tortured over several days. John Harding said he was used as a “punching bag” by the guards in a holding facility in the self-declared Donetsk People’s Republic in eastern Ukraine. The centre was run by the

The Labour Party’s annual conference begins today – and policies on neighbourhood policing and clean energy are among those on the agenda. The Labour leader is seeking to set out the dividing lines between his party and the new Tory government during the four-day event. Speaking at a London Labour reception on Friday evening, Sir

Buckingham Palace has released the first image of the new ledger stone marking the Queen’s final resting place. The late monarch was laid to rest on Monday evening in the King George VI Memorial Chapel in St George’s Chapel, Windsor Castle. Her parents and husband are also buried there. Elizabeth II’s name is inscribed on

The chancellor has denied suggestions he is gambling with the economy as his raft of tax cuts were met with a hostile reception – and sent the pound plummeting to a 37-year low. The Institute of Fiscal Studies (IFS) said he was “betting the house” by putting government debt on an “unsustainable rising path”. Only

Here are the key points from Chancellor Kwasi Kwarteng’s mini-budget statement to MPs: • The basic rate of income tax will be cut to 19p in the pound from April 2023. Will mean 31 million people will be better off by an average of £170 per year. • The 45% higher rate of income tax

Kwasi Kwarteng will promise a “new era for Britain” with a major package of measures to “turn the vicious cycle of stagnation into a virtuous cycle of growth”. The chancellor is set to announce tens of billions of pounds both of increased spending and of tax cuts when he delivers his mini-budget at around 9.30am

Chancellor Kwasi Kwarteng has announced that April’s National Insurance hike is to be reversed from 6 November. The 1.25 percentage point increase was introduced under former chancellor Rishi Sunak, but during the Tory leadership race Liz Truss pledged to change it. Mr Kwarteng made the announcement ahead of a “mini-budget” on Friday. Politics hub: Health

The mother of an unarmed black man who was killed by a police officer in south London has again called for justice after being shown the bodycam footage of his shooting. Chris Kaba, 24, was killed on 5 September after a police chase in Streatham Hill. His Audi was hemmed in by two police cars

Wholesale energy costs for businesses will be slashed by up to half their expected price through the winter months, the government has announced. Firms across the UK will see government-funded cuts to their energy bills in line with the reductions that have already been announced for homes. The level of discount will depend on what

When Liz Truss was vying to be the Conservative Party leader and our next prime minister, some of her colleagues worried that, as the anointed choice of Prime Minister Johnson, she was going to be the Boris Johnson continuity candidate. On the economy, they could not have been more wrong. Since becoming the prime minister

Liz Truss has said she is prepared to be unpopular with her tax policy as she believes it will ultimately benefit the British economy. Talking to Sky News’ political editor Beth Rigby in New York, the prime minister defended any tax changes her government will make at the end of the week and said she

The Royal Family has released a previously unseen photograph of the Queen after she was laid to rest in a private burial. The image of the monarch was taken at Balmoral in 1971, with the caption often borrowed from Shakespeare’s Hamlet: “May flights of Angels sing thee to thy rest.” “In loving memory of Her

The Queen’s coffin has been seen in public for the last time before she is laid to rest beside her husband – with the nation bidding farewell to Britain’s longest reigning monarch. Thousands of people lined the Long Walk leading to Windsor Castle and broke out in applause as the coffin was carried in a

The Duke of York has paid tribute to the Queen, saying:  ”Mummy, your love for a son, your compassion, your care, your confidence I will treasure forever.” Prince Andrew, who is no longer a working royal, accompanied his statement with a black and white image of his mother holding him as a baby in March

Today marks the final full day of the Queen’s lying in state. Thousands of people are still joining the queue to pay their respects, as heads of state continue to arrive in London ahead of Monday’s funeral. Irish president Michael D Higgins and Taoiseach Micheal Martin are expected to join those who have signed an