Liz Truss blames poor communication for market chaos after mini-Budget
After Michael Gove, former transport secretary Grant Shapps has also criticised the government’s plans to cut high earners’ income tax, calling it “politically tin-eared”.
Mr Shapps attacked the proposal to scrap the 45p tax band, saying that PM Liz Truss and Mr Kwarteng’s plans have “managed to alienate almost everyone” and suggesting the proposal may not pass a vote in the Commons.
“I don’t think the House is in a place where it’s likely to support that,” he told the BBC.
His fellow ex-cabinet minister Michael Gove had earlier said Ms Truss’s plans to pay for vast tax cuts with increased borrowing were “not Conservative” as he threatened to vote against the mini-Budget.
“My other worry is if you are going to make tax changes, a 45p cut that will benefit millionaires but not ordinary people is not the right priority at this point.”
It comes as Ms Truss admitted she should have “laid the ground” ahead of the government’s mini-Budget, which triggered dramatic market turmoil.
How weak pound has prompted a rash of takeovers of UK companies
“Sterling investors need high-quality sterling assets but while billions of pounds worth of UK companies have been taken off the London Stock Exchange, they are not being replaced through IPOs,” writes James Moore. Read more:
Sterling investors need high-quality sterling assets but while billions of pounds worth of UK companies have been taken off the London Stock Exchange, they are not being replaced through IPOs, writes James Moore
Editorial: Only a month in, Liz Truss is a prime minister without credibility
“In the traditional eve-of-conference BBC interview, Liz Truss continued to maintain that the terrible reaction to her Budget in financial markets was in fact a reaction to Vladimir Putin’s war in Ukraine.”
Read The Independent’s editorial here:
Editorial: In the traditional eve-of-conference BBC interview, Liz Truss continued to maintain that the terrible reaction to her Budget in financial markets was in fact a reaction to Vladimir Putin’s war in Ukraine
Grant Shapps joins Tory revolt over tax cut
Tory former cabinet minister Grant Shapps has joined a growing revolt against Liz Truss’s tax plans, branding her decision to scrap the 45p top rate as “politically tin-eared”.
Mr Shapps, who was transport secretary under Boris Johnson, accused the prime minister and chancellor Kwasi Kwarteng of putting “all their chips on red” in the hope that cutting taxes will deliver growth.
The veteran of government, who is influential in the Tory party, also said he was “profoundly” concerned about the £45 billion of tax cuts, particularly the abolition of the top income tax rate.
Here’s his full statement:
The former cabinet minister said handing ‘big giveaways’ to those who need them least is ‘politically tin-eared’.
Charles to miss key climate summit in Egypt
King Charles III, who until his accession was quite vocal about the climate crisis, will be absent from the key United Nations climate summit next month in Egypt, Buckingham Palace has confirmed.
The news - which was first reported by The Sunday Times newspaper - comes amid speculation that the new British monarch would have to rein in his environmental activism now that he has ascended the throne.
The report said that prime minister Liz Truss objected to King Charles attending the Cop27 conference, and that she mentioned this when she met with the king last month at Buckingham Palace.
But a member of Ms Truss’s cabinet said the government and palace were in agreement about the decision.
“That is a decision that has been made amicably, as far as I am aware, between the palace and the government,” Simon Clarke told Times Radio on Sunday. “The suggestions this morning that he was ordered to stay away are simply not true.”
Mr Clarke also rejected suggestions that Ms Truss didn’t want the King to attend the summit because she intends to water down Britain’s climate goals. The government remains committed to achieving its target of net-zero carbon emissions by 2050, he said.
Charles attended the Cop26 summit in Glasgow last year where he called for a “war-like footing” against the climate crisis. The former Prince of Wales was also expected to attend the summit this year, where national representatives from around the world will gather to negotiate the path forward in fighting the increasingly challenging effects of global warming.
The then Prince of Wales speaks at Cop 26 in Glasgow.
(AFP/Getty)
Truss preparing U-turn on 45p tax rate - The Sun
Liz Truss could be preparing to U-turn on the 45p tax rate, according to a report in The Sun.
It comes after two former cabinet minister, Michael Gove and Grant Shapps, publicly criticised the policy.
The tabloid paper reported that the prime minister had called the chancellor to crisis talks, in which the pair drew up plans to ditch the 45p income tax cut.
However no further details on the U-tun were provided.
The Conservative MPs speaking out against 45p tax axe
A brief recap on the Tory MPs who have spoken out against the government’s controversial tax cut plans:
Tory former cabinet minister Grant Shapps branded her decision to scrap the 45p top rate as “politically tin-eared” and has “managed to alienate almost everyone”.
Ex-cabinet minister Michael Gove said plans to pay for vast tax cuts with increased borrowing were “not Conservative”.
Maria Caulfield, a former health minister and ex-nurse, said she could not support the removal of the 45p rate while nurses were struggling to pay their bills.
She tweeted that if Mr Berry and the party “don’t want this working class MP, fair enough”.
Damian Green, a former deputy prime minister, warned that the Tories would lose the next election if “we end up painting ourselves as the party of the rich”.
ICYMI: Kwarteng to insist tax cut proposal is ‘right’ plan
Chancellor Kwasi Kwarteng will double down on his controversial tax cut plans in a speech to Conservative Party conference.
On Monday, he is expected to declare that the government “must stay the course” as he is “confident” that his economic plan, which includes a proposal to axe the 45p rate of tax, is “the right one” despite its announcement spooking the markets.
He will insist that his £45bn giveaway – expected to be funded by borrowing – is “the only way to achieve long-term financial sustainability”.
You can read the full story here by Andrew Woodcock
‘We must stay the course’: Chancellor to brush off calls for U-turn
Truss: ‘We haven’t made enough conservative arguments’
Prime minister Liz Truss has been filmed claiming that the Conservative Party has “not made enough conservative arguments for the past few years”.
She spoke at a fringe meeting – during the party’s first day of conference – that was sponsored by ConservativeHome, financial industry body TheCityUK, and Heathrow Airport.
The PM reeled off a list of things she believed are “a good thing”, which includes business, the City of London, and financial services.
Ms Truss says: “Taxes are not something that the government owns. They’re something that individuals work hard to create that income, and we take from them, so we have to be very careful about making sure that what we take from them is value for money.
“Business is a good thing, making profit is a good thing, the City is a good thing, and our financial services are a good thing – and we need to be prepared to make that argument.
“Because we all care desperately about levelling up ... what we all agree on is that we need to level up and we need to attract enterprise and we need to attract investment.
“It is only by having a successful City of London that we are going to do that...”
Labour demands names of Tory champagne party attendees
Labour is demanding that the Conservative Party releases a list of names of all the attendees of a private champagne reception attended by chancellor Kwasi Kwarteng after he delivered his controversial mini-budget.
Anneliese Dodds, the Labour chair, wrote to her Tory counterpart Jake Berry calling on him to release the list and whether those that attended pledged donations or paid a fee.
Labour chair Anneliese Dodds
(AFP via Getty Images)
Earlier, on Sky News, Mr Berry said that the drinks reception was not unusual and those who were there should be “lauded” as Britain's leading businesspeople, as well as hedge fund managers and property developers.
In her letter calling for the names, Ms Dodds wrote – as the Guardian reported: “Many people are sickened by the image of champagne-quaffing Conservative donors encouraging the chancellor to press ahead with further tax cuts for billionaires, at the same time as many members of the British public are unable to access a mortgage.”
Truss told to enact free school meals in billboard campaign
Campaigners have used billboards in Birmingham to demand that the Tories implement universal free school meals.
The posters depict a menu reportedly offered at the Conservative Party conference that is being hosted by the city.
It says: “Menu Conservative Conference – Caviar d’aubergine on rosti potato”.
Next to it is an image of an empty school lunch tray that says: “Menu Primary Schools: Child hunger.”
Campaign group No Child Left Behind – run by the National Education Union – tweeted: “Today we unveil billboards across Birmingham with a stark message for Liz Truss at Conservative Party Conference.
“𝗡𝗼 𝗰𝗵𝗶𝗹𝗱 𝘀𝗵𝗼𝘂𝗹𝗱 𝗲𝘃𝗲𝗿 𝗴𝗼 𝗵𝘂𝗻𝗴𝗿𝘆 𝗮𝘁 𝘀𝗰𝗵𝗼𝗼𝗹.
“Prime Minister, will you back #FreeSchoolMealsForAll?”