Kwasi Kwarteng sacked amid reports Jeremy Hunt to be chancellor with Liz Truss expected to U-turn over mini-budget – live

After a torrid three weeks since his mini-budget sent the economy – and the Tory party – into turmoil, the chancellor, Kwasi Kwarteng, has left a meeting of the IMF in Washington DC early to return home, amid expectations that he and the prime minister, Liz Truss, will be forced into a humiliating U-turn barely a month into their tenure.

As my colleague Larry Elliott reports:

Kwasi Kwarteng has dramatically cut short his visit to the International Monetary Fund, flying home early from Washington in response to the mounting political crisis over his tax-cutting budget.

Adding to signs that the government is preparing to announce a U-turn over its plan to scrap a rise in corporation tax, the chancellor left the US capital a day earlier than planned.

Treasury sources said the chancellor had two constructive days in Washington but was keen to get back to London to engage with colleagues over his medium-term fiscal plan, due to be announced on 31 October.

But his unscheduled departure on a late-night flight from Washington capped a day of drama for the Truss government and prompted comparisons with the sterling crisis suffered by the Labour government in 1976.

Then, the chancellor Denis Healey turned around at Heathrow rather than fly out to an IMF meeting in Manila after pressure mounted on the pound.

Treasury sources refused to comment on whether Kwarteng’s decision meant a U-turn on corporation tax was imminent, but the chancellor was under pressure to make a decision before the financial markets open for business on Monday.

We will have all the latest developments here on the politics live blog.

Here is the agenda for the day.

Morning. Economic crime and corporate transparency bill – second reading.

9.30am. The Office for National Statistics will publish its latest survey of the social impact of the cost of living, goods shortages, and Covid-19.

10.30am. Charity Asylum Aid is bringing a high court challenge to the government’s proposals to send some asylum seekers to Rwanda.

12pm. Weekly UK Covid-19 infection survey, from the Office for National Statistics.

3pm. Cop26 president, Alok Sharma, to speak at the Wilson Centre in Washington.