Boris Johnson news: Tory hardliners 'plotting to force no-deal', as Brexit recession warning issued and pound tumbles
UK faces 'one in three chance of recession' after EU departure, says Bank of England
Britain has a one-in-three chance of a recession even if there is an orderly exit from the EU, the Bank of England has warned as sterling fell to a new two-and-a-half year low against the dollar amid Brexit uncertainty.
It came as the newly appointed chief secretary to the Treasury, Rishi Sunak, cast doubt over the government's Brexit deadline, as he said Britain would "hopefully" leave the EU by 31 October.
Voters are also heading to the polls in the Brecon and Radnorshire by-election that could see Boris Johnson's working majority in the Commons cut to just one if the Tories fail to hold on to the seat. The result is expected in the early hours of Friday morning.
This live article has now ended. Recap on how developments unfolded below
Welcome to The Independent's live politics coverage. This morning the newly-appointed cabinet minister Rishi Sunak cast doubt over the government's Brexit deadline, as he told the BBC Radio 4 Today programme the government would "hopefully" leave the EU by the end of the October.
Offering a noticeably more caveated comment on the Brexit deadline, he said: "A lot of the money we are spending is going to go on things that would need to spend anyway because we are leaving the European Union, that means we're going to be leaving the single market and the customs union, so of course that does mean changes to how we trade with Europe."
In a subsequent interview, the chief secretary to the Treasury clarified his remarks, telling LBC: "The government is crystal clear, we are leaving the EU - no ifs no buts - at the end of October."
It seems Mr Sunak noticed his mistake, or someone noticed it for him.
Chancellor Sajid Javid has committed an additional £2.1bn to efforts to stave off expected disruption caused by a no-deal Brexit, prompting accusations of wasting taxpayers’ money on an outcome opposed by MPs and voters.
The announcement – which brings to £6.3bn the amount set aside by the Treasury for no-deal preparations – was branded “a colossal waste of money” by anti-Brexit campaigners, who pointed out that opinion polls have consistently shown that voters would rather stay in the EU than leave without a deal.
Mr Javid said it was “vital” to spend the money on planning to be sure that the UK can leave the EU on the Halloween deadline, deal or no deal.
But Labour MP Owen Smith, a leading supporter of the People’s Vote campaign, said: “It is an absolute outrage that, without any democratic consent whatsoever, Boris Johnson thinks he can set our country on such a dangerous and reckless course, at enormous expense to the public.”
Gary Cohn - a former chief economic adviser to Donald Trump - has said a no-deal Brexit would be better than "the state we're in right now".
Speaking on BBC Radio 4's Today programme, Mr Cohn claimed: "Any forward progress at this point is good.
"This is another one of those economic geopolitical situations that has to be solved. And if it's hard, soft, it has to be solved.
"And countries are more resilient than people think, and if you end up at the hard Brexit and say 'We're out, no-deal, we'll be out on this day' things will tend to happen, things will fall into place. You'll have to get certain things done to make sure it works and then it will evolve over time.
"But it's better than the state we're in right now, where every month or every six weeks there's a new drama and we just kick the can down the road."
Voters are preparing to head to the polls in the Brecon and Radnorshire by-election that could see Boris Johnson’s majority in the House of Commons cut to just one.
The Liberal Democrats are expected to gain the Welsh seat in the election, which was triggered after a successful recall petition against Conservative MP Chris Davies, who was convicted of making a false expenses claim.
Mr Davies is standing again for the Conservatives but is expected to lose his seat to Liberal Democrat challenger Jane Dodds, a former social worker.
"The Labour Party needs to talk about … Boris," writes The Independent's political commentator Andrew Grice in his new column. "Surprisingly, it seemed unprepared for Boris Johnson taking power, even though it was hardly a surprise when he won the Tory leadership. I see little evidence of a Labour strategy on Boris."
International trade secretary Liz Truss has sent out an entirely unstaged photograph of herself in her new role - on the phone to her Australian counterpart. Featuring a Daily Telegraph on her unusually tidy desk and a £6.19 Boris Johnson card available on Amazon that has 200 hours of play time.
How important is the Brecon and Radnorshire by-election? Political commentator John Rentoul asks in his latest column, suggesting a win for the Liberal Democrats will be hailed as a significant victory.
A pro-EU Tory MP has said he is considering whether to defect to the Liberal Democrats, in a move that could wipe out the government's Commons majority.
Dr Phillip Lee said he feels "politically homeless" over his party's shift towards a no-deal Brexit following Boris Johnson's election as Conservative leader.
The former justice minister, who has thrown his weight behind The Independent's calls for a Final Say referendum, warned the Tories could lose voters if the party leads the UK out of the EU without a deal.
New international trade secretary Liz Truss has released a glossy video on social media about her first week in the job.
Renowned for her love of Instagram, the Brexiteer used her hashtags liberally in the tweet.
Jacob Rees-Mogg, the newly-appointed House of Commons leader, who also attends cabinet, has said the EU should realise the new government would not be "browbeaten" by Brussels.
In his ConservativeHome podcast he said: "They should believe us because of our new leader. The new Prime Minister is somebody of considerable force of personality who is not going to be browbeaten by them.
"They should believe us because of the appointment of Dominic Cummings, which seems to me to be exceptionally important as a statement as to what is going to happen.
"That ought to make the EU realise that it is not business as usual. It isn't a sort of wet establishment that will go along with Brino (Brexit in name only).
"It is a tough-minded, clear-sighted Government that will accept a decent deal, a fair deal, but will not accept a bad deal and isn't frightened of leaving."
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