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Liz Truss and Kwasi Kwarteng may be bounced into a U-turn on corporation tax by "market forces", Priti Patel suggested this evening.
In her first broadcast interview since leaving the Cabinet last month, Ms Patel said the final decision would be determined by "crucial levers".
"There’s an irony to this, which is market forces will probably dictate some of these changes now," the former home secretary told Sky News.
"Primarily because, you know, we want to see stability. Stability is absolutely crucial for everyone to carry on living their lives and institutions to function, but actually for the British people to have the, you know, stability that they need in their lives as well."
Ms Patel also urged the party to "unite" behind Ms Truss but insisted the beleaguered leader must stick to Boris Johnson’s 2019 general election manifesto.
Earlier today the Sun newspaper reported the Prime Minister would end up raisign corporation tax, going against her leadership promises, but Downing Street sources have denied these claims to the Telegraph.
With the Chancellor out of the country and the Prime Minister out of the glare of the public, the early signs of another Tory rebellion against Liz Truss and Kwasi Kwarteng were there.
The Chancellor insisted he would still be in his job this time next month as he met with the IMF, while Downing Street doubled down on its pledge there would not be any further U-turns.
Some Tory MPs are openly agitating for more of the measures in Mr Kwarteng’s mini-Budget last month to be reversed, while others say Ms Truss’s premiership should be "coming to an end".
As Big Ben bonged once again at Westminster, a handful of disaffected backbenchers are hoping the bell will soon toll for Ms Truss – but only time will tell if she can overcome the difficulties of her first six weeks in office.
My colleague Jack Maidment will be back early tomorrow with Friday’s live blog.
The new Tory chairman of the foreign affairs select committee tonight called on Liz Truss to reverse her tax cuts.
Alicia Kearns, the MP for Rutland and Melton, said the public wanted to see "pragmatism" and "fiscal responsibility" at a time of financail crisis.
"Do I think we should be borrowing en mass when our children have to be paying this back for decades to come? No, I don’t," she told LBC.
Asked by presenter Andrew Marr if this meant reversing tax-cutting measures in the mini-Budget, she replied: "Yes."
"I feel it would be wrong at a time when we are trying to attract investment into our country at a time of global crisis to be raising taxes," Liz Truss said at Prime Minister’s Questions yesterday.
But reports emerged earlier today Ms Truss could do exactly that by proceeding with the corporation tax rise that had been scheduled for April under Rishi Sunak.
Downing Street sources denied the claims to the Telegraph, but there was less clarity from No 10 on whether other tax-cutting elements of Kwasi Kwarteng’s mini-Budget could be reversed.
This is a major test for Ms Truss and Mr Kwarteng. Some of the more liberal voices on the backbenches want them to change course. Others believe it would calm the markets.
But for members, Ms Truss’s backers, and low-tax conservatives alike, it would constitute a major and worrying U-turn on a key point of difference between her and her leadership rival. With political pressure growing, only time will tell whether No 10 and No 11 stand firm.
This from Robert Largan, the MP for High Peak:
It’s good to be back in sunny Glossop after a very weird week in Westminster. pic.twitter.com/4ivDraUfrS
Liz Truss is reportedly facing a Tory rebel plot to oust her as Prime Minister, writes Gareth Davies.
ConservativeHome editor Paul Goodman has said some Tory backbenchers are considering pushing for Rishi Sunak and Penny Mordaunt to replace the Prime Minister.
The former Tory MP told BBC Radio 4’s Today Programme: "All sorts of different people are talking about all sorts of different things because the Conservative backbenchers are casting around for a possible replacement for Kwasi Kwarteng, even for a possible replacement for Liz Truss.
"All sorts of names are being thrown about, Rishi Sunak, even Boris Johnson, Kit Malthouse, Sajid Javid.
"But one idea doing the rounds is that Penny Mordaunt and Rishi Sunak, who, after all, between them got pretty much two-thirds of the votes of MPs, come to some kind of arrangement and essentially take over."
Read the full story here
My message is very clear. We absolutely need to get back to delivering for the British public, and that is based on the 2019 manifesto.
But at the same time, we’ve got to unite and deliver for the country. You know, the country is experiencing very, very hard and difficult times right now. That is self-evident.
The reactions of the government… It is important that we put the public first. The winter is going to be hard. There’s good work that’s taken place actually on energy price caps. And, you know, all of those measures.
I think it would be useful, actually, now to just make sure that we put the public interest first, deliver for the public, and make sure that we are giving them the support that they need through what is clearly and self-evidently going to be some very challenging times.
Liz Truss and Kwasi Kwarteng may be bounced into a U-turn on corporation tax by "market forces", Priti Patel suggested this evening.
In an interview with Beth Rigby, the Sky News political editor, the former home secretary said the final decision would be determined by "crucial levers".
"There’s an irony to this, which is market forces will probably dictate some of these changes now," Ms Patel said.
"Primarily because, you know, we want to see stability. Stability is absolutely crucial for everyone to carry on living their lives and institutions to function, but actually for the British people to have the, you know, stability that they need in their lives as well."
The word "febrile" is used a lot about the atmosphere in SW1, but rarely has it been more fitting than today. Railing against Liz Truss, one senior backbencher told the Telegraph: "We’re all suffering from depression and anxiety. We’re trying to work out what to do."
A member of the 2019 intake admitted it was "not looking very good at all" for his party, while a third Tory MP added: "We are six weeks into a new leadership and it feels as though that leadership ought to already be coming to an end. This is a royal s—show and it could not have gone any worse."
However there are still plenty who remain loyal to Ms Truss. Some have pledged their "full support" and pointed to the long-term nature of her economic reforms, while others pointed to the global nature of the current financial turmoil.
And another Truss loyalist added: "We’ve only just moved the pawns out of the bloody chessboard and everyone is taking to the hills and wanting to kill the queen – it’s absolutely ridiculous. The naivety of colleagues is quite comic."
They went on to describe the Prime Minister as "not the best star performer, but better than the alternative". Ms Truss will hope that, in time, her fractured party comes to the same conclusion.
For years now, the world economy has resembled a ludicrously high-stakes game of Jenga, writes Allister Heath.
Politicians and central bankers kept taking it in turns to remove blocks from the tower, adding them back to the top of the stack and congratulating themselves on their brilliance, wilfully blind to the fact that the structure was becoming ever more unstable. Some genuinely believed that the tower, like the economy, was getting taller; others secretly knew it was an optical illusion, but enjoyed fooling the voters.
Liz Truss and Kwasi Kwarteng have been doubly unlucky. While almost everybody else in Britain remained in denial, they correctly identified this absurd game for the con-trick that it truly was, warned that it was about to implode and pledged to replace it with a more honest system.
Instead of a zombie economy based on rising asset prices and fake, debt-fuelled growth, their mission was to encourage Britain to produce more real goods and services, to work harder and invest more by reforming taxes and regulation.
And what happened next is dispiriting in the extreme.
Rachel Reeves accused the Government of behaving "like pyromaniacs" this afternoon as she sought to talk up Labour’s readiness to govern.
The shadow chancellor said there were "global factors at play" but Liz Truss and Kwasi Kwarteng were "setting ablaze the UK economy".
"The Prime Minister and Chancellor introduced this package of measures together," Ms Reeves told the PA news agency. "The Prime Minister has been in office for just one month and has already caused so much damage.
"The public are sick and tired of it, they want the Government to think again and to U-turn, and if the Government aren’t capable of providing the leadership the country needs, Labour absolutely is."
Former chancellor George Osborne has urged Kwasi Kwarteng to make another "inevitable" U-turn on his mini-Budget rather than waiting until the end of the month to change course.
Downing Street officials reportedly held discussions on Thursday about further changes to the growth plan in the hope of calming financial markets after a turbulent few weeks.
No 10 insisted its position had "not changed" and promised there would be no more about-turns beyond last week’s decision to scrap the abolition of the 45p tax rate.
However some Tory MPs have privately expressed their frustration with the timing of the tax-cutting measures during a cost of living crisis, while both Sky News and Bloomberg reported officials had held initial talks.
Report: Don’t wait 18 days to change course, Truss warned
Conservative MPs are mulling over a Lord Howard-style coronation of a successor to Liz Truss that would cut out Tory members as they once again debate a leadership switch.
There is yet to emerge a single concerted push to topple the Prime Minister, according to a host of Tory MPs who talked to The Telegraph on Thursday about party mood.
However, amid dire polling, continued market turmoil and the economic and political challenges of the fiscal reset later this month, MPs are privately discussing what could happen next.
There is little consensus among MPs who spoke to The Telegraph on questions of leadership – how long Ms Truss has to turn things around, how she could possibly fall and who may come next.
Read: The inside track from the Telegraph’s politics team
There are two things that politicians cannot control but which are essential to their success. One is timing. The other is luck. On both counts, Liz Truss has missed out, reflects Tom Harris.
When she was first elected to Parliament in 2010, the new government, led by David Cameron, committed itself to a ruthless form of austerity. Cameron calculated (correctly, as it turned out) that the voters were sceptical about Gordon Brown and Labour’s economic prospectus.
The previous government had presided over the ballooning of an unprecedented structural budget deficit and the country was in no mood to listen to excuses. That gave Cameron the opportunity – rare in British politics – to win an election on a pretty doom-laden manifesto that warned of tough times ahead. But because he successfully blamed Labour for the new government’s lack of maneuverability, he was given the benefit of the doubt.
Truss, who likes to model herself on the Iron Lady, might have been more comfortable as leader in either 1979 or 2010. The problem (or one of many problems) she faces is that she is bringing a Thatcherite solution to a problem caused, not by her party’s traditional opponent, the Labour Party, but by Conservative governments.
Tom Harris: Why public won’t let Truss pass the buck
There was not a great deal of clarity from Downing Street just now when pressed on reports of imminent U-turns around freezing corporation tax and last month’s mini-Budget.
Asked if Liz Truss stood by her view it would be "wrong" to raise taxes on British businesses, a No 10 spokesman said: "You heard from the Prime Minister yesterday about her plan for growth and the chancellor’s approach.
"They are both focused on delivering on the growth plan making sure we get growth back into our economy, we heard the Chancellor talking about that just earlier this afternoon and making sure more people keep money they earn."
Downing Street repeated multiple times "our position hasn’t changed", and repeated its earlier insistence there would be no more U-turns.
But on whether Kwasi Kwarteng’s Growth Plan would be reversed before October 31, the response was – for a fifth time – nothing more substantial "our position hasn’t changed". Of course, this does not rule out an imminent about-turn which would pile further political pressure on Ms Truss.
A senior Conservative MP hinted he will put the country before his party after he was asked about his support for Liz Truss.
Responding to Dave Tooke, a Liberal Democrat councillor who described encouragement to get behind the Prime Minister as "perverse", Simon Hoare, the MP for North Dorset, wrote: "My mantra has always been the same as Churchill’s.
"Country and constituency, then party."
Julian Smith, a former Tory Chief Whip and the MP for Skipton and Ripon, has been one of the most outspoken critics of Liz Truss during the first six weeks of her premiership.
This afternoon, he tweeted:
11. ⁰the feeling or belief that one can have faith in or rely on someone or something.
Dominic Penna here, the Telegraph’s Political Reporter taking you through the rest of a dramatic day in Westminster.
Asked about whether there would be any "imminent" policy U-turns this afternoon, a No 10 spokesman insisted: "Our position hasn’t changed."
But Downing Street’s attempted reassurances have done little to quell both press speculation about a further reversal of the mini-Budget or the discontent of Tory MPs, which has now started to spill into the open.
Christopher Hope, The Telegraph’s associate editor, has this exclusive story in today’s Chopper’s Politics newsletter:
That did not last long. After I disclosed last week how Isaac Levido and his company Fleetwood Strategy had been dropped by new Tory leader Liz Truss, there has been something of a rapprochement.
Levido was spotted by multiple witnesses walking through the House of Commons yesterday, deep in talks with Jake Berry, the party chairman. Berry told me today that the party now wanted to work with Levido in the future.
He said: "Isaac is a longstanding friend of the Conservative Party. It was a ‘reset’ chat about how we can work together in the future."
You can sign up for the newsletter here.
Kwasi Kwarteng insisted the Government’s position on the mini-Budget "hasn’t changed” (see the post below at 14.44) but he refused to be drawn on specific questions about whether No 10 officials are looking at which measures could potentially be dropped.
It is worth pointing out that just because the position has not changed, that does not mean that discussions about changing the position are not taking place.
We will hopefully get some clarity shortly on what is going on when the Prime Minister’s Official Spokesman answers questions from reporters at the afternoon lobby briefing.
Given the pain being caused to the real economy by the financial turbulence, it’s not clear why it is in anyone’s interests to wait 18 more days before the inevitable u-turn on the mini budget
Sir Ed Davey, the leader of the Liberal Democrats, said Kwasi Kwarteng must "resign or be sacked" amid reports that the Government could perform a further U-turn on the mini-Budget.
Sir Ed said: "This U-turn would come too late for many struggling families facing mortgage misery. The only way to restore credibility is for Kwasi Kwarteng to resign or be sacked. This Chancellor has done enough damage and needs to go.
“His botched Budget then needs to be scrapped altogether and replaced with a fair and responsible plan, including emergency support for mortgage borrowers bearing the brunt of this Conservative chaos."
Sterling rallied towards its pre mini-Budget levels and UK bonds rocketed after reports emerged this afternoon that No 10 officials are looking at potentially dropping parts of the mini-Budget.
However, some political commentators have pointed out that this could provide Liz Truss with a fresh headache if the mooted U-turn does not materialise.
Robert Shrimsley, the chief UK political commentator at the Financial Times, articulated the idea in this tweet:
Truss now has another major problem. If she is not preparing to u-turn on the budget she can't allow the markets to believe one is coming. So if she let's this hare run much longer the markets will punish her even further for not doing it
Kwasi Kwarteng was asked if he will still be Chancellor and Liz Truss will still be Prime Minister in one month’s time.
Speaking in Washington DC, he said: "Absolutely 100 per cent. I am not going anywhere."
Kwasi Kwarteng was asked if he would consider his position as Chancellor if a major part of his mini-Budget is dropped.
Speaking in Washington DC, he said: "I am totally focused on the growth agenda. I am totally focused on making sure that people are helped with their energy bills, that the energy price guarantee is understood, that the scale of our intervention, credible intervention of the British state, is understood and that we can actually deliver this country a path, get us on a trajectory, to growing the economy so everyone benefits.”
Kwasi Kwarteng has refused to be drawn on reports that the Government is preparing to potentially drop parts of his mini-Budget.
The Chancellor was told during an interview in Washington DC that the markets are already responding to the idea of a potential U-turn on corporation tax.
Asked if that is a possibility, he said: “My total focus is on delivering on the mini-Budget and making sure that we get growth back into our economy. That is the central prize, that is the main focus of my job.”
Told that No 10 officials are reportedly looking at which of his measures could be dropped, the Chancellor said: "I speak to No 10, I speak to the Prime Minister, all the time and we are totally focused on delivering the growth plan."
Mr Kwarteng insisted “our position hasn’t changed”, adding: “I will come up with the medium-term fiscal plan on October 31, as I said earlier in the week, and there will be more detail then.”
Professor Sir John Curtice, the polling expert, said Liz Truss is as unpopular as Tory former prime minister John Major was after Black Wednesday – when Britain crashed out of the European Exchange Rate Mechanism.
He told BBC Radio 4’s World at One programme: “Liz Truss is now deeply unpopular. She is more unpopular than Boris Johnson was at the worst period of his premiership, which was in the middle of January this year when the partygate scandal was at its height.
“She finds herself at pretty much the same level of popularity as did John Major about a few weeks after Black Wednesday in September 1992, which of course is the last time that a Conservative administration got into trouble with the markets.”
He added: “She’s got two problems. One is she isn’t really liked. Her personality is not one that warms to the general public. And, secondly, now she is regarded as incompetent.”
Lord Lamont, the Tory former chancellor, said he believes Liz Truss and Kwasi Kwarteng will survive the current turmoil.
He told the BBC: "I think they will survive it. I think we are not going to impress the country by changing the Prime Minister and the Chancellor.
"We have had so many changes of prime minister I think people are beginning to think that the stability of this country is somehow in question which of curse it is not. But optically it is not a good look."
Tory former chancellor Lord Lamont of Lerwick has said the choices facing Liz Truss and Kwasi Kwarteng are “appalling” and that he would support a reversal of the mini-Budget.
He told BBC Radio 4’s World at One programme: “I think the choices here are appalling. You know, sometimes it’s said that politics is the art of the possible. I think it’s the art of choosing between the incredible and the utterly impossible.”
He added: “If they do reverse the budget, I would support them, but I personally think that’s rather unlikely.”
Rachel Reeves, Labour’s shadow chancellor, said reports that officials are working on potential options for mini-Budget U-turns demonstrates that the Government is in a state of "utter chaos".
She said: “Today’s mess shows the utter chaos this government is in. This is a crisis made in Downing Street and working people are paying the price.
“Labour has said repeatedly that they need to reverse the kamikaze budget and restore confidence. This is now urgent as the Bank of England’s intervention in the markets ends tomorrow. The Tories cannot allow the chaos caused by their mini-Budget to continue any longer.”
Liz Truss’s Government has displayed a lack of “compassionate conservatism” which has led to a feeling of “caution and concern” among Tory MPs, backbencher John Baron has said.
He told BBC Radio 4’s World at One programme: “The mood, generally, is one of caution and concern. For me, it’s about the lack of compassionate conservatism, the breaking of the link between benefits and inflation during the cost-of-living crisis is wrong.
“But the optics are also wrong when we’ve also been proposing a cut in the 45p rate of tax. So, that together with a lack of reassurance to the markets when it came to the mini-Budget, about the borrowing and the spending requirements and cuts too, you know, has all added to the general air of concern. Now we have time to put this right, but no time to waste.”
The pound has surged by more than 2pc against the dollar on growing hopes that ministers are drawing up plans for a major U-turn on Kwasi Kwarteng’s £43bn of tax cuts.
Sterling rallied towards its pre mini-Budget levels and UK bonds rocketed after reports emerged that officials are looking at reversing the huge unfunded package that has rattled markets.
The pound jumped by as much as 2.1pc versus the dollar to almost $1.13 while government borrowing costs plunged on hopes of a U-turn. The benchmark 10-year gilt yield fell by almost 0.4 percentage points in a massive move in UK bonds as relief swept markets.
You can follow the latest updates on the economy on The Telegraph’s business live blog here.
John Redwood, a Tory former Cabinet minister, has warned against a U-turn on corporation tax (see the post below at 13.21).
He told The Telegraph: “I think it would be quite wrong to backtrack on corporation tax. It was one of her key policies in the leadership campaign, that and lowering national insurance.
“She was right in the leadership campaign, that’s what I voted for and that’s what I’d expect her to be getting on with. Cancelling the cuts in corporation tax is Labour Party policy and I’d be surprised if she wanted to adopt Labour Party policy.
“That wouldn’t be a good idea at all: the aim is to make Britain a more competitive place. My advice is to roll out all parts of the growth plan as quickly as possible.”
The Sun has reported that Liz Truss is considering raising corporation tax next year.
That would represent a fairly spectacular U-turn given that one of Ms Truss’s key campaign pledges was to scrap Rishi Sunak’s planned corporation tax hike from 19 per cent to 25 per cent which was pencilled in for next year.
However, Downing Street sources have told The Telegraph that they rejected the claim.
Downing Street is publicly insistent that there will not be any further U-turns on the mini-Budget.
But a number of senior journalists in Westminster are now reporting that discussions are underway in No 10 about which parts of the package could be dropped.
Here is a tweet from Sam Coates, the deputy political editor at Sky News:
Downing Street denying any changes to mini budget but I'm told by sources discusssions underway over which bits might yet be junked give the scale of the concern
Looking at a return to the mandate from the leadership contest
No clarity on timing of announcement if it happens
And here is a tweet from Kitty Donaldson, the political editor at Bloomberg News:
NEW: Officials in Downing Street are working on a U-turn on Liz Truss's tax plans, but no decisions will be made before Chancellor Kwasi Kwarteng gets back from the IMF in Washington
MPs circulating a smorgasboard of names re who should replace Truss as PM are not taking into account the fact that they cannot foist upon the British public another Prime Minister that the public have not voted for. A totally untenable position. #backliz
Liz Truss said yesterday that she is not planning to make any cuts to public spending. There were some questions over exactly what the Prime Minister meant.
Downing Street has now attempted to offer some clarity.
The Prime Minister’s Official Spokesman said: “As she said, overall spending will not be going down, it will continue to rise in real terms. Over the past 12 years it has risen from £750 billion in 2010 to almost £1 trillion now.”
After confirming the overall amount spent on public spending will rise, the spokesman was then asked if individual departmental budgets could increase or decrease.
They said: “When it comes to departments, obviously there is a process to go through which is being led through the Treasury.
“As the Prime Minister said we need to spend public money wisely and work as efficiently as possible to ensure taxpayers’ money is spent on things that matter most to the public.”
That would suggest that departmental budgets could be altered in the future, perhaps in the middle of the decade.
Downing Street also confirmed that the tens of billions of pounds being spent on energy bills support will be included in the overall public spending figure.
The spokesman said: “Obviously that would need to be factored into any decisions on spending. It is an intervention to ensure the public aren’t facing, households and indeed public services, aren’t facing extraordinarily high bills.”
Jacob Rees-Mogg yesterday criticised the Office for Budget Responsibility – the Government’s independent economic forecaster – as he said "its record of forecasting accurately hasn’t been enormously good".
Downing Street today insisted that Liz Truss "values" the scrutiny provided by the organisation, describing it as a "highly regarded body worldwide".
The Prime Minister’s Official Spokesman said: "The OBR is the Government’s official forecaster. The Prime Minister has said on a number of occasions that she values their scrutiny and respects their independence.
"They are a highly regarded body worldwide."
Downing Street was asked this morning if Liz Truss is concerned about an apparent loss of confidence in her leadership among some of her MPs.
The Prime Minister’s Official Spokesman said that Ms Truss’s "sole focus is on ensuring we are delivering growth through the changes and reforms set out in the growth plan".
Downing Street has promised there will not be any more U-turns on the mini-Budget.
Asked if the Prime Minister can "promise" there will be no U-turns, the Prime Minister’s Official Spokesman said: “Yes, as I said to a number of questions on this yesterday and the position has not changed from what I set out to you all then.”
Downing Street also insisted the PM remains committed to the timeframes she has set out for introducing her mini-Budget measures.
The spokesman said: “Yes and obviously as you know the date for the medium term fiscal plan has been brought forward.”
Liz Truss has a number of options she could choose from in order to save the government money and reassure the financial markets. None of them are particularly palatable.
The options could include:
You can read a full piece on Ms Truss’s options here.
An economist who advised Liz Truss during the Conservative leadership contest said that the mini-Budget “clearly has contributed to a lot of the problems” in the markets.
Gerard Lyons said pension fund problems “would likely have come to the fore anyway” but the mini-Budget made the reaction “far more dramatic” because interest rate expectations went much higher.
Mr Lyons told Times Radio: “The reaction of the markets isn’t only to the mini-Budget itself, even though that clearly has contributed to a lot of the problems. Markets were in a very febrile state ahead of the mini-Budget.”
Some Tory MPs are clearly unhappy with Liz Truss’s leadership. One of the key questions this morning is just how many are actually contemplating trying to oust her.
There is, after all, a big difference between anonymously criticising the PM and submitting a letter of no confidence.
One Tory MP painted a picture of the scale of the potential rebellion with this comment to Henry Zeffman, associate political editor at The Times. Here’s the tweet:
"If the 22 changed the rules, we'd hit the threshold for a confidence vote in a couple of hours", a Tory MP tells me.
Safe to say the mood is sulphurous in parliament this morning
It is worth remembering that as a new leader of the party, Ms Truss cannot technically face a confidence vote in her first 12 months.
However, rules could potentially be changed if there was sufficient demand for such a move.
The NHS waiting list for treatment has hit seven million people for the first time ever, according to new data published this morning by NHS England.
The news has sparked an immediate political backlash, with Labour and the Lib Dems demanding urgent action from the Government to address the situation.
Wes Streeting, Labour’s shadow health secretary, said: "It is totally unacceptable for millions of people to be left waiting months or even years for treatment, often for painful and debilitating conditions.
"12 years of Conservative understaffing of the health service is holding our economy back, with patients unable to work while they wait. You can’t have a healthy economy without a healthy society."
Daisy Cooper, the Lib Dems’ health spokeswoman, said: "Behind these figures are countless human tragedies. In every corner of the country people are frightened, suffering and waiting in pain because our NHS can no longer cope. This Conservative government has brought the NHS to its knees and patients are paying the price. This cannot go on.
"The Government must come forward with a proper plan to bring down waiting times and recruit more NHS staff, starting by scrapping their tax cut for wealthy corporations."
Lord Barwell, who served as Theresa May’s chief of staff when she was prime minister, has offered some advice to his Tory MP colleagues.
He argued in a tweet this morning that the way to secure long term economic growth is to first deliver "political stability".
Message to my former colleagues: you want stronger long term growth? Deliver political stability. Avoid regular big shifts in government policy. And – as much as is possible in a robust democracy like the UK – build cross party consensus on long term issues
Sir Christopher Chope, the Conservative MP for Christchurch, has told Tory colleagues who are criticising Liz Truss to "shut up".
Told during an interview on Times Radio that some Tory MPs had been critical of the PM after her address to the 1922 Committee yesterday, Sir Christopher said: "It largely depends on to whom you are talking.
"If you are talking to people who never supported Liz Truss and still don’t want her to be leader of the Conservative Party then its’s time that they shut up and allowed those who want to ensure that our country is able to break free of the anti-growth coalition to do just that."
The Liberal Democrats have claimed the Government has "24 hours to set out a realistic plan" to address the ongoing economic turmoil.
Sarah Olney, the party’s Treasury spokeswoman, said: "James Cleverly has spent this morning defending the indefensible. The botched budget must be overhauled starting by scrapping tax cuts for the richest companies.
"With the economic doomsday clock ticking, we are seeing the Conservatives at their very worst, both uncaring and incompetent. The Government has 24 hours to set out a realistic plan.
"We have seen nothing but chaos and calamity since Liz Truss took power, the public deserves better than this."
James Cleverly, the Foreign Secretary, has acknowledged that recent turmoil in the financial markets is linked to the mini-Budget.
He told the BBC: “The markets of course did respond to the Chancellor’s mini-Budget. I have not said that isn’t the case.
"The point I am making is many of the challenges we are facing are challenges shared by countries around the world."
James Cleverly has said economic growth in the coming years will enable the Government to deliver its proposed tax cuts without cutting public spending.
The Foreign Secretary told the BBC Radio 4 Today programme: "People were saying, well hang on, how do you lower taxes without cutting spending. The way you do it is you grow the economy.
"Liz has been absolutely consistent and clear that that is the major plank of her agenda."
James Cleverly has warned Tory MPs that any attempt to replace Liz Truss as Prime Minister would be a “disastrously bad idea”.
He told BBC Radio 4’s Today programme: “We have got to recognise that we do need to bring certainty to the markets.
“I think that changing the leadership would be a disastrously bad idea not just politically but also economically and we are absolutely going to stay focused on growing the economy.”
"Changing the leadership would be a disastrously bad idea, not just politically but economically"
Foreign Secretary James Cleverly tells @MishalHusain the government recognises it needs to bring certainty to the markets, and defends its growth plans.https://t.co/klR00bNQuK pic.twitter.com/nSdBjiQKy7
A former member of the Bank of England’s Monetary Policy Committee has said that any idea of avoiding public spending cuts through accelerated economic growth would be “wishful thinking” on the part of the Government.
Martin Weale, professor of economics at King’s Business School, told Times Radio that economic forecasts other than the Office for Budget Responsibility were available but “they aren’t actually terribly comforting for the Government”.
“Look at what the IFS and Citibank were saying that there’s a £60 billion hole that needs to be filled," he said.
Mr Weale, a member of the Monetary Policy Committee from 2010 to 2016, added: “The only way of squaring that circle is to assume that economic growth accelerates in the way that the Government wants. And I think most people regard that as just wishful thinking.”
Liz Truss insisted yesterday that she will not cut spending to balance the books as economists and the financial markets continued to question her plans.
ConservativeHome editor Paul Goodman has said some Tory backbenchers are considering pushing for Rishi Sunak and Penny Mordaunt to replace Liz Truss.
The former Tory MP told BBC Radio 4’s Today Programme: “All sorts of different people are talking about all sorts of different things because the Conservative backbenchers are casting around for a possible replacement for Kwasi Kwarteng, even for a possible replacement for Liz Truss.
“All sorts of names are being thrown about, Rishi Sunak, even Boris Johnson, Kit Malthouse, Sajid Javid.
“But one idea doing the rounds is that Penny Mordaunt and Rishi Sunak, who, after all, between them got pretty much two-thirds of the votes of MPs, come to some kind of arrangement and essentially take over.”
The editor of the ConservativeHome website, an influential voice within the Tory party, has said some backbenchers have become “piranha fish taking a bite” at the Chancellor.
Paul Goodman, a former Conservative MP, told BBC Radio 4’s Today Programme: “I am beginning to wonder whether or not ministers and Conservative MPs are capable of putting together a package of public spending cuts on the scale required, and if they do whether they’re going to be acceptable to the markets, or whether the markets are now going to demand the withdrawal, in effect, of the mini-Budget, or most of it, that Kwasi Kwarteng announced only very recently.
“It’s certainly the thinking of some, we’ve seen individual backbenchers pop up in recent days rather like small piranha fish taking a bite at the whale, Stephen Hammond, Mel Stride, Kevin Hollinrake, they’ve all come out, essentially to say that quite a bit of the mini-Budget, especially the corporation tax cut, have to be turned.
“I don’t really know if they’re a majority or not, but if I’m right then we will see the Government have great difficulty in getting this package of cuts together.”
Sir Christopher Chope, Conservative MP for Christchurch, has backed Liz Truss to lead the Tories to victory at the next general election.
He told Times Radio: "I have absolute confidence in the Prime Minister and indeed the descriptions of what happened at the ’22 Committee bear no resemblance to the truth.
"The truth is the Prime Minister was in good form. She was calm and confident and if I was a betting man I would now be going out and putting money on the Conservatives winning the next general election not with a landslide but certainly with a good majority."
Buckingham Palace is reconsidering plans for the Queen Consort to be crowned using the controversial Koh-i-Noor diamond, with India’s ruling party warning that the move would bring back “painful memories of the colonial past” (you can read the full story here).
James Cleverly, the Foreign Secretary, was asked this morning if he believes the crown should be worn.
He told Sky News: “Ultimately decisions like that are for the Palace. What I have seen actually through the funeral arrangements for Her Late Majesty is the Palace is really very good at assessing the public and indeed the international mood.
“Ultimately of course decisions are for the Palace on issues like this.”
Sir Iain Duncan Smith, the Tory former Cabinet minister, reportedly told The Daily Express that Andrew Bailey’s response to the recent market turmoil had been "stupid" and left a "mess".
James Cleverly, the Foreign Secretary, today defended the Bank of England Governor.
He told Sky News: "No, of course he is not stupid. You don’t get to be governor of the Bank of England if you are being stupid.”
Liz Truss is under growing Tory pressure to raise corporation tax to reassure the markets over her debt reduction plan after she yesterday ruled out major spending cuts.
Ms Truss has promised to scrap the rise in corporation tax from 19 per cent to 25 per cent, due in April, but is now facing calls to reverse course.
James Cleverly was asked this morning if the Government will stick to its plan to scrap the hike. He failed to give a firm and unambiguous commitment.
The Foreign Secretary told Sky News: "The Chancellor is going to be making a statement on the 31st of October which gives a more holistic assessment of the public finances and our response to the global headwinds that every economy in the world is facing.
“But as I say, the foundations of that mini-Budget, protecting people from energy bill prices, letting them keep more of their earnings, protecting businesses from those energy prices, making sure that we are internationally competitive, all of those things are really key for the growth agenda that the Prime Minister has put forward.”
The question on many people’s lips in Westminster is whether the Government will backtrack further on its mini-Budget measures amid ongoing economic turmoil.
James Cleverly, the Foreign Secretary, failed to guarantee this morning that the Government will stick to everything in the blueprint.
He told Sky News: “Well, the last time we spoke we talked about the changes that the Chancellor had made to one of the elements of it. But ultimately what that mini-Budget was about and we should remind ourselves, it was about protecting tens of millions of people from unaffordable energy prices. That was the bulk of that proposal.
“It was about making sure that taxes for 30 million working people were reduced a little bit and those are really storing principles and I absolutely think we should stick with those.”
A wave of negative briefings from anonymous Tory MPs followed Liz Truss’s appearance in front of the 1922 Committee last night.
This from Jason Groves, the Daily Mail’s political editor, was perhaps the most savage:
Tory MP on Liz Truss's appearance at the 1922 Committee: 'It was like someone trying to light a fire using a magnifying glass. Using damp wood. In the dark.'
Such briefings have unsurprisingly gone down badly with members of the Government. James Cleverly, the Foreign Secretary, blasted the rebels as he conducted the morning media round.
He told Sky News: “Look, some people like having quotable tweets and some people like delivering good government.
“I am in the camp of the kind of people that like delivering good government. I know that the Chancellor, the Prime Minister, and my ministerial colleagues are focused on delivering for the British people.”
Good morning and welcome to today’s politics live blog.
Liz Truss is under mounting pressure to stabilise her premiership after a bruising appearance in front of the 1922 Committee of Tory MPs last night.
Anonymous MPs savaged the PM’s performance and questioned how she will make the sums add up when the Government unveils its medium term fiscal plan on October 31.
Downing Street will be hoping that things will now settle after a bumpy first few days back in the House of Commons after the party conference recess. But with economic turmoil continuing, the PM faces a battle to get back on the front foot.
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