Monday morning news briefing: Pound dealt record blow

The pound has today plunged to a record low. It slumped to its lowest level against the dollar since decimalisation in 1971 this morning, after Chancellor Kwasi Kwarteng hinted more tax cuts would follow those he announced last week.

Sterling fell by more than four per cent to just 1.0327 dollars in early Asia trade as markets meted out more punishment, before it regained some ground to about 1.05 dollars early on Monday – when the euro also hit a fresh 20-year low amid recession and energy security fears.

Andrew Bailey, Governor of the Bank of England, is facing growing calls to intervene to calm spooked markets. While traders prepare for another day of turbulence, follow the latest in our live blog with James Warrington.

The sharp decline fuelled expectations of an aggressive interest rate rise by the Bank of England at its next meeting in November.

In his analysis, Ambrose Evans-Pritchard says Mr Kwarteng's tax cluster bomb risks blowing up Britain's credibility.

It comes as the Labour Party is split on how to respond to the tax plans, with Sir Keir Starmer accused of lacking the "fight" to reverse them.

Meanwhile, the Home Secretary is insisting that immigration must fall even as Britain pushes for growth.

The Telegraph understands Suella Braverman wants the Government to meet its manifesto pledge to bring down net migration, as ministers consider plans to relax visa restrictions to tackle labour shortages and attract talent.

Prime Minister Liz Truss and Mr Kwarteng are understood to believe some sectors may need more migrants to help fulfil their ambitious economic growth plans. But Mrs Braverman is among Cabinet Brexiteers who have concerns.

US to take 'catastrophic' action if Putin goes nuclear

It was a thinly-veiled nuclear threat in his address to the nation. Now, the White House has warned top Kremlin officials that Russia will face "catastrophic consequences" if Vladimir Putin deploys nuclear weapons in Ukraine.

Jake Sullivan, the US national security adviser, revealed the US has "communicated directly and privately to the Russians at very high levels" how it will respond if Mr Putin follows through.

"If Russia crosses this line, there will be catastrophic consequences," he said. "The United States will respond decisively."

As Roland Oliphant reports, it came as some of Mr Putin's allies publicly broke ranks to criticise the way in which conscripts are being recruited.

While the threat is seen by some as an attempt to assert control after a series of embarrassing defeats, Ukrainian president Volodymyr Zelensky does not think he is "bluffing".

What a month without alcohol does to your body

Sober October is gearing up for a bumper month as many, mindful of drinking too much during lockdown, are signing up. Countless studies have shown links between excessive drinking and cancers, heart failure and diabetes. No wonder, then, that so many of us are reconsidering our habits with alcohol. But does a month of sobriety make any difference to overall health? Flic Everett asks the experts about long-term benefits.

Daily dose of Matt

In his latest cartoon from the weekend, Matt sees the funny side of the mini-Budget. And see our latest political cartoon from Blower.

Also in the news: This morning's other headlines

Exclusive | A transgender children's charity is giving potentially dangerous chest-flattening devices to 14-year-olds against their parents' wishes, an investigation by The Telegraph has found. Mermaids, which receives funding from the taxpayer and runs training for schools and the NHS, offered to send a breast binder to a girl it believed was only 14 after being told that she was not allowed to use one by her mother. Special correspondent Hayley Dixon has our exclusive report.

• Iranian embassy | Police injured in clashes with protesters

• Scotland | Nicola Sturgeon faces exodus of high earners

• Strike action | Union boss threatens to bring UK 'to its knees'

• Fortnum and Mason | Store 'gives up on police to stop thieves'

• The Crown | Palace ready to shield King from new TV series

Around the world: Italy set to have Right-wing leader

Italy looks set to have its first woman prime minister and most Right-wing government since the Second World War after exit polls suggested the country's election was won by an alliance of three Right-wing parties. Polls released after voting finished at 11pm local time indicated the alliance had won between 41 and 45pc of the vote, which would give it control of both chambers of parliament in Rome. As Nick Squires reports, the victory for a party descended from Italy's fascist movement came 100 years after Benito Mussolini and his party came to power.

Comment and analysis

• Nick Timothy | Mass migration has suppressed productivity

• Roger Bootle | Kwarteng may have walked into Brown's trap

• James Dyson | Liz Truss must ditch the anti-farming lobby

• Telegraph View | Keir Starmer has adopted politics of envy

• Reader letters | Voters will not look kindly on mini-Budget

Sport briefing: 'My job's not safe', says Southgate

Gareth Southgate has admitted his tenure as England manager could end after the World Cup should his team's poor form result in failure in Qatar. England face Germany tonight in their last fixture before the World Cup, having failed to win any of their past five matches in the Nations League. In cricket, England came out on the wrong side of a rollercoaster finish as Pakistan squared the Twenty20 series with a thrilling three-run win in the fourth match. Nick Hoult has our report from Karachi.

Editor's choice

1. Britain's cocaine trade | From schools for hitmen to selling on the streets

2. Education | Why are our classrooms being led by teaching assistants?

3. Mel C on life as Sporty Spicy | 'Management discouraged me from a relationship'

Business briefing: Tumbling gas prices

Britain's energy bills freeze could prove much less costly than feared by early next year, as City forecasters predict gas prices will plunge following a successful scramble across Europe to fill reserves. As Tom Rees reports, a halving in gas prices would push average household bills below the £2,500 limit set by the Government's Energy Price Guarantee, slashing the cost of the intervention, according to Deutsche Bank. Meanwhile, the cost of living crisis is whittling away pandemic savings.

Travel: Supersize your city break

Autumn is the ideal time for a getaway to a thriving city; a happy medium wherein summer's more excessive temperatures have slipped away but life is still lived outdoors. With carefully chosen day trips and a bit of variety, travel writer Chris Leadbeater explains how your Continental long-weekend can feel like a proper escape.

Tonight's dinner

Microwave pea and ham risotto | This easy, classic dish by Georgina Hayden is made even quicker by using the microwave.

And finally... for this morning's downtime

Cheers! | The great British pub is in danger of extinction – under threat from spiralling costs, staff shortages and changing habits – but communities are coming to the rescue. Boudicca Fox-Leonard meets the village community who saved theirs.