YESTERDAY, PM Truss was fighting for her political life against a Tory faction that is determined to ditch her as soon as possible, if not sooner.
Getting rid of Liz Truss would be a ‘disastrously bad idea’, the Foreign Secretary James Cleverly has said, as he defended the Prime Minister’s economic plans.
Cleverly said the PM – who has been in office for 37 days – would stick to her plans despite a Tory revolt over tax cuts for millionaires.
The fact is that her mini-budget, which further enriches the millionaires, with the poor to pay the bill, is splitting the Tory Party.
Truss is insisting that increases in benefits for the poor will not be at the rate of wage inflation settlements which in fact would be a real benefit cut.
Truss has repeatedly defended the proposed huge tax cuts for the rich outlined last month.
There is now widespread speculation that Truss will be forced out of office by Conservative MPs if she does not change course.
Cleverly defended her approach, telling BBC Radio 4’s Today programme that changing the leadership would not bode well for the UK ‘politically and also economically’.
When asked if the government would make any changes to win over rebellious Tory MPs, Cleverly said the ‘plan is to grow the economy’.
He argued that the only way to counteract the ‘powerful and negative economic headwinds’ buffeting the UK was by stimulating growth.
The government would make ‘professional and tough decisions’ on spending, Cleverly said, adding: ‘We’re not going to be cutting public services,’ but some areas would see ‘close to inflation growth’.
Chancellor Kwasi Kwarteng’s mini-budget on 23rd September, which included £45bn of tax cuts funded by borrowing, has caused financial markets to crash and prompted the Bank of England to intervene to protect pension funds from crashing.
Kwarteng is due to set out how he will fund the package and reduce debt on 31st October.
However, Truss is facing growing calls within her own party to scrap all, or part, of her economic programme to shore up the UK’s economic position ahead of a difficult winter.
After a stormy session of Prime Minister’s Questions on Wednesday, Truss attended a meeting of backbench Tory MPs.
Tory MP Robert Halfon accused Truss of ‘trashing blue collar Conservatism’.
He told her the party’s record over the past 10 years had included things like boosting apprenticeships and the living wage, whereas she had cut tax for millionaires and wanted to slash affordable housing and benefits.
MPs who were present said he got a cheer, while Truss looked ‘shocked’.
But as she left the room, the Prime Minister said it had been a ‘very good’ meeting.
Tories are saying that Truss will lose them the next general election.
- Investors remain nervous after the Bank of England insisted its emergency bond-buying scheme will end today.
The Bank is buying bonds to stabilise their price and prevent a sale which could put some pension schemes at risk of being bankrupted.
