'Multiple' Tory MPs may join forces with Labour to bring down parts of mini budget, writes Lewis Goodall

30 September 2022, 18:20 | Updated: 30 September 2022, 22:52

LBC understands that "multiple" Conservative MPs are in talks with the Labour Party in Parliament to defeat elements of Liz Truss’ "mini-budget".

Special pressure will be brought to bear on reversing the abolition of the 45p top rate of tax.

Parliamentary sources confirm that discussions have already taken place between Labour and potential Conservative rebels.

Although the government has a healthy majority, it would only take around 35 Conservative MPs to put any legislative proposals at risk.

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The government will try and ensure some elements do not go to a parliamentary vote, but that will not be possible for everything.

Budget measures are not usually subject to rebellion and are traditionally considered issues of confidence.

If voted against MPs risk losing the whip.

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But government whips face difficulty on a number of fronts.

MPs may argue that they are not bound by elements, like the 45p rate, which were not included in the Conservative 2019 manifesto.

They may also say that given this was not a full budget, traditional rules do not apply.

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Potential rebels are understood to be anxious to send a signal to the markets that the party and government take what has happened seriously.

The government will resist any hint of rebellion fiercely.

If Truss cannot show she has command of the parliamentary party, about signature measures, her authority will be wounded further still.

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Though many Conservative MPs are stunned by the speed of political developments, there is general consensus that Truss’ fate is in the hands of the markets.

One senior MP told LBC a key date identified is October 14 - the day the Bank of England stops buying UK government bonds.

There is fear the markets could quickly turn south again.

If that happens, as one MP said "all bets are off and she’ll be gone by Christmas".

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On Friday the Prime Minister and the Chancellor met the Office of Budget Responsibility (OBR) for emergency talks after days of market turmoil sparked by their mini budget.

But the meeting with the head of Britain's independent financial forecaster ended after 45 minutes.

Ms Truss and Mr Kwarteng are expected to release the UK's financial forecast within days.

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A statement released by the OBR said: "We discussed the economic and fiscal outlook, and the forecast we are preparing for the Chancellor's medium-term fiscal plan.

"We will deliver the first iteration of that forecast to the Chancellor on Friday October 7 and will set out the full timetable up to November 23 next week.

"The forecast will, as always, be based on our independent judgment about economic and fiscal prospects, and the impact of the Government's policies."