Britain has a new Chancellor following dramatic developments at Westminster last night which saw two top ministers resign, saying they no longer have confidence in Prime Minister Boris Johnson to lead the country.
Hard-pressed businesses will now be watching closely to see if the shake-up in the Tory cabinet will lead to any major changes in economic policy, such as a cut in VAT.
Departing Chancellor Rishi Sunak was certainly not the most popular person with UK oil and gas producers after his recent controversial decision to hit them with a multi-billion pound windfall tax.
He said last night that the public expected Government to be conducted "properly, competently and seriously".
Also heading for the exit door was Health Secretary Sajid Javid, who said the Government was not "acting in the national interest".
Mr Johnson will come under further pressure later today as he faces MPs at Prime Minister's Questions.
He is also due to give evidence to Westminster's Liaison Committee, which scrutinises the Government's policy and decisions.
Mr Johnson is now fighting for his political survival. Critics said it was "over for him as PM, but he is battling on and has announced a cabinet reshuffle.
New Chancellor
Education Secretary Nadhim Zahawi is the new Chancellor, and Downing Street chief of staff Steve Barclay will replace Mr Javid as Health Secretary.
Mr Sunak felt his own approach to the economy was "fundamentally too different" to that of Mr Johnson. The PM had been preparing for a joint speech next week with the Chancellor as the anchor of a plan to show the Government taking control of the cost-of-living crisis.
But the BBC says the pair could not agree its contents. In particular, the Chancellor said the public is "ready to hear the truth" about the tough times ahead of us.
The cost-of-living crisis means there are a series of incredibly-difficult trade-offs for Government to make in the coming months.
Public sector pay review bodies have begun to report back. The Treasury believes it is irresponsible even to be talking about pay claims matching the 9% inflation rate. And yet, a 10% rise in pensions is pencilled in for next year.
Government departments are facing rising costs to provide public services, but cash budgets are yet to be increased.
Fuel prices reach new records. Domestic energy prices are heading even higher than predicted at the time of the Chancellor's last cost-of-living package.
Mr Sunak was a crisis Chancellor. He spent his time expanding the state, spending and levels of taxation, against his instincts, to deal with the pandemic and Ukraine crisis.
Cut to VAT?
The BBC says that, with a new Chancellor, the PM will find it easier to tax less, perhaps spend more and so borrow more. There is also talk of a cut to VAT.
Last night's resignations came minutes after the PM apologised for appointing MP Chris Pincher to a Government role.
Mr Johnson admitted he made a "bad mistake" in making Mr Pincher deputy chief whip earlier this year, despite being made aware of earlier allegations about the MP's conduct.
His handling of the row has led to fierce criticism from the opposition and some of his own MPs.
There have also been other departures in addition to Mr Sunak and Mr Javid.
Bim Afolami quit as Tory vice-chair, Andrew Murrison resigned as a trade envoy, and ministerial aides Jonathan Gullis and Saqib Bhatti left their roles.
But the BBC understands Foreign Secretary Liz Truss, Levelling-Up Secretary Michael Gove and other cabinet ministers are backing the prime minister as he assesses the scale of the rebellion against his leadership.
Mr Johnson has been publicly backed by loyal allies Culture Secretary Nadine Dorries and Minister for Brexit Opportunities Jacob Rees-Mogg, who insisted the Prime Minister was the "right man for the job".
Fresh leadership crisis
The resignation of two senior cabinet ministers has plunged Mr Johnson into a fresh leadership crisis weeks after he survived a no-confidence vote.
The PM is immune from a Conservative leadership challenge until June next year under party rules, after he won 59% of the vote.