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Turning to welfare, Kemi Badenoch says government spending on debt interest is over 拢100bn a year, and welfare spending is "out of control".

"The state is bloated, productivity has flat lined, and the economy is stuck in first gear," she says.

"Our country is living beyond its means. We are spending more than we are earning; and it means the cost of living crisis for working people is getting worse and worse."

She calls for a "totally different approach" that "ensures things are easier for the makers 鈥� the people who work hard, create wealth and jobs, and deliver frontline public services".

The Tory leader then says: "Currently this country has too many people who are taking 鈥� whether it is those who sit at home with the curtains drawn while others go out to work, or those who skip the queue and arrive here illegally, only to be given privileged access to social housing, the NHS and our generous welfare system".

Turning to the government's battle with its own backbenches to get its welfare cuts through parliament, Badenoch says the PM is "in the fight of his life" to save changes that "don't even cut the overall bill".

She argues that Labour MPs are "too scared to make difficult decisions" - but they must be made to sort out of the economy.

She calls for "real welfare reform" to "incentivise takers to become makers", and a "fundamental rethink about which conditions should qualify for long-term financial support".

"I was shocked to hear that the majority of new disability claims in this country are now for behavioural and mental health conditions like anxiety," Badenoch says, and calls for support to be focused on more severe conditions.

Kemi Badenoch opens her speech by setting out her vision of how to run the economy.

She tells the British Chamber of Commerce: "My vision, the Conservative vision, is it is not government that creates growth - it is business."

One of the reasons the Tories lost the election last year is they "were no longer trusted", she says, adding: "It's quite clear that we got enough things wrong during our time in government that people wanted change."

'I know who's side I'm on'

The Tory leader turns to what has happened since the general election, saying inflation is higher, unemployment is up, and growth has halved.

She points to the national insurance rise that could lead to job losses, and the creation of "more quangos" that is increasing bureaucracy.

"This matters because it is about real people - it is people and businesses who are hurting when government is making wrong decisions," she says.

The fundamental question she wants to answer is "whether we are for the makers or for the takers".

"I know who's side I'm on," she says.

Badenoch later says that Labour's Employment Rights Bill will "make things worse", describing it as "300 pages of red tape which nobody running a business asked for".

Scrapping that "red tape" is a key promise of her Tory party.

Badenoch pledges a "serious centre-right plan" that "understands the power of the private sector to transform lives".

Following in the footsteps of Keir Starmer this morning, the Tory leader Kemi Badenoch is addressing business leaders.

You can watch her speech at the British Chamber of Commerce in the stream above if you'd like.

For all the talk of a Labour rebellion, there was a solitary voice of revolt on the Tory backbenches today too.

Conservative MP Mark Pritchard accused his leader, Kemi Badenoch, of bringing "partisan politics" into national security.

It comes after Keir Starmer lambasted her for doing so, after she'd accused him of "evading" PMQs because he was at a NATO summit.

Pritchard said while he may disagree with the PM generally, he agreed with the importance of putting on a united front on security issues.

"I may get the party whip withdrawn for saying that but so be it," he added, with Badenoch still sat just a few benches in front of him.

Trade Secretary Jonathan Reynolds has claimed that Port Talbot's operations do not meet the US "rules of origin" that the UK needs to meet to get exemptions from Donald Trump's steel tariffs over the line.

"The issue with the implementation of the steel agreement is the melt and pour rules, which is the US interpretation of rules of origin around steel," he says.

That applies to Port Talbot, where semi-finished products come into the UK and then go to the mills to keep the business going, he said.

"That doesn't meet their existing implementation of that in the US. On British Steel, we have to resolve issues of ownership separate to issues around US trade."

Asked if British Steel's ownership was part of US trade talks, he said it "comes up in the context of the US is very supportive of what we did" after the UK government used emergency powers to take control of British Steel.

But he said British Steel's ownership was something that needed to be resolved "regardless" of the US talks.

By Alexandra Rogers, political reporter

Sir Keir Starmer faces the biggest rebellion of his premiership next week when his controversial welfare reforms are voted on in the Commons.

After initially securing support for the welfare bill - in principle, at least - a mutiny is building within the parliamentary party at the scale and potential impact of billions of pounds in cuts.

More than 120 Labour MPs have now signed a "reasoned amendment" to oppose the government's proposals - which, if passed, would effectively kill the legislation.

In the amendment, the MPs, who represent a broad spectrum of opinion in the party, call for a delay to assess the impact of cuts to personal independence payments (PIP), one of the main types of benefit for those living with a long-term health condition or disability.

They also cite the government's own figures showing 250,000 people, including 50,000 children, could be pushed into poverty as a result.

Ministers are discussing the prospect of further concessions to win over the growing list of Labour MPs poised to rebel against the planned welfare reforms ahead of the crunch vote next Tuesday.

Sky News takes a look at what the Universal Credit and Personal Independence Payment Bill proposes at present - and why the prime minister has a major rebellion on his hands.

There's a rebellion brewing in Sir Keir Starmer's party.

More than 120 Labour MPs have signed a "reasoned amendment" to the government's welfare policy, which will face a vote after its second reading on Tuesday.

The scale of the rebellion could signal Starmer's first Commons defeat - at the hands of his own backbenchers.

But what exactly are they asking for - and could concessions be made?

The amendment was tabled by Dame Meg Hillier, chair of the Treasury select committee, with the support of 12 other select committee chairs.

It is an attempt to force the government to water down the benefit changes, in advance of Tuesday's vote.

Signatories are calling for a delay to assess the impact of cuts to personal independence payments (PIP).

They express concerns, according to a draft seen by Sky News, about the government's own figures showing 250,000 people could be pushed into poverty, and what the forecast is for how many may find employment.

Last night, the government confirmed that talks are ongoing with backbench rebels, though ministers have continued to insist that a vote will take place on Tuesday.

There have been suggestions this morning that Number 10 is considering tabling its own amendment ahead of the vote, in an effort to avoid Starmer's first Commons defeat.

The Telegraph reports that they could promise to speed up payment of funds to help people back into work.

Another alleged option is to offer assurances that reviews of policies around welfare will be published as soon as possible.

Keir Starmer has returned to Downing Street after two days at a NATO summit, and faces arguably the toughest fight of his premiership.

Here are the main things you need to know from today so far:

• The PM has vowed to keep talking to Labour MPs about their concerns with his welfare reforms, telling them he wants to get them "right";
• Starmer used the top of a Commons statement about the NATO summit to address the rebellion that threatens to defeat his government, with at least 126 backbenchers seeking to block his plans;
• Our political correspondent Amanda Akass said it was clear the PM was now considering concessions, but our deputy political editor Sam Coates said they would cost the chancellor billions.

• The crunch parliamentary vote on the welfare reforms is due to take place next Tuesday, with ministers insisting it will go ahead;
• Rebel MPs have told Sky News they remain angry with Number 10 about how their concerns have been handled, with many still prepared to vote against the government;
• "It's now become more than welfare," one said, while another said Starmer had treated the rebels with "contempt".

We'll bring you more updates and analysis on this developing story throughout the afternoon.

Our political correspondent Amanda Akass and our political reporter Faye Brown have been hearing from some Labour MPs prepared to vote against the government's welfare reforms.

One who has signed the "reasoned amendment" designed to kill the proposed bill says they have not been approached by No 10 or any ministers about their concerns.

They think it'll be hard for the PM's team to "really bring the numbers they need back on board", as "everyone has their own reasons" for opposing the changes.

'Many are sticking to their guns'

A reminder that at least 126 Labour MPs have signed the amendment, more than enough to defeat the government.

Another rebel says: "Many are sticking to their guns - it's now become more than welfare."

They say the PM's allies have been "too heavy" with attempts to win rebels over, putting too much pressure on backbenchers.

'This is only annoying people more'

And despite Keir Starmer's seemingly conciliatory statement in the Commons this morning, another rebels says they are yet to hear any "concrete" signs of concessions.

They don't expect their position to change before Tuesday's vote, and think the government should delay it until later in the year.

One MP accuses No 10 and Starmer of showing "utter contempt" towards the rebels, and says this "is only annoying people more".