Truss faces fresh battle to stop Tory rebels blocking plans to squeeze benefits and cut public spending

4 October 2022, 01:23 | Updated: 4 October 2022, 08:12

Liz Truss is facing a fresh rebellion from within her party.
Liz Truss is facing a fresh rebellion from within her party. Picture: Alamy

By Emma Soteriou

Liz Truss is facing a fresh battle against Tory rebels trying to block her plans to squeeze benefits and cut public spending after being forced to abandon the abolition of the 45p top rate of tax.

Listen to this article

Loading audio...

Tory rebels who forced the PM into her initial u-turn, including former ministers Michael Gove and Grant Shapps, have already begun warning against the rest of her agenda, with the benefits battle appearing to be the new front for infighting.

Downing Street is said to be considering not increasing Universal Credit in line with inflation, but instead using an increase in average earnings as the metric to encourage people into work.

Some Cabinet ministers are understood to believe that refusing to increase benefits by inflation is a "non-starter", according to the Telegraph.

The Prime Minister - and Chancellor Kwasi Kwarteng - declined to commit to increasing benefits in line with inflation on Monday.

Failing to keep pace with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.

Listen to Nick Ferrari's interview with Liz Truss this morning only on Global Player.

Liz Truss U-turned on the 45p tax plan.
Liz Truss U-turned on the 45p tax plan. Picture: Alamy

Former Home Secretary Priti Patel is also set to fire a warning shot at Liz Truss on Tuesday, saying the Tory party will "live or die" by its economic credibility.

In a sign of continuing disquiet among Conservative MPs, Ms Patel is set to accuse Ms Truss and Mr Kwarteng of "spending today with no thought of tomorrow".

"I want to see our party regain its credibility by restoring its commitment to sustainable public spending ... which is affordable today, tomorrow and for the foreseeable future," she will tell a conference fringe event, according to The Times.

Michael Gove is among the former cabinet members speaking out against the agenda
Michael Gove is among the former cabinet members speaking out against the agenda. Picture: Alamy

It comes after Mr Kwarteng admitted his mini budget caused "a little turbulence", after over a week of economic turmoil sparked by his fiscal plan.

Last week the pound plummeted to a record low and lenders pulled mortgages from the market after his plan, which included scrapping the bankers' bonus cap and the top level of tax - the latter of which the government U-turned on 10 days later.

Opening his speech to the Conservative Party conference hours after the change on Monday, Mr Kwarteng said: "What a day.

"It has been tough but we need to focus on the job in hand."

He went on: "I can be frank."I know the plan put forward only 10 days ago has caused a little turbulence.

"I get it. I get it. We are listening and have listened, and now I want to focus on delivering the major parts of our growth package."

Read more: Nadine Dorries calls for a general election and accuses Liz Truss of not having a mandate for her policies
Read more:
'What a day': Chancellor admits mini Budget caused 'a little turbulence' after govt U-turn on 45p tax plan

Priti Patel is expected to speak up on public spending
Priti Patel is expected to speak up on public spending. Picture: Alamy

The Chancellor is now expected to bring forward his plans for bringing down government debt.

In a second change of course in a bid to reassure markets and Tory rebels, the Chancellor is understood to be bringing forward his medium-term fiscal plan, alongside official forecasts from the Office for Budget Responsibility, to later this month.

Having previously insisted he would wait until November 23, Mr Kwarteng told the conference he would publish details "shortly" on how he planned to bring down public debt as a percentage of GDP over the medium term.

He insisted the Tories will be "serious custodians of the public finances".

More Latest News

See more More Latest News

Reform UK Holds a Regional Conference In Wiltshire

Farage claims Conservative Party has less than 100,000 members and blasts Kemi Badenoch for calling Reform member numbers 'fake'

Foreign Ministers attend an Arab League extraordinary meeting in Cairo on October 11, 2023.

Egypt to host emergency Arab League summit after Trump announces plan to displace 1.8 million Palestinians and 'take over Gaza'

Jack Fincham.

Love Island star admits to feeling like a 'failure' after spending '£1 million on drugs, alcohol and gambling'

Westminster Abbey and Church House

Church of England meeting at time of ‘unprecedented crisis’ after scandals and historical abuse claims

The plane was forced to make an emergency landing

easyJet flight forced to make emergency landing after pilot collapses on board

Joel Verite was among the first on the scene of the Southport knife attack where three girls were stabbed to death at a Taylor Swift-themed dance party.

Southport hero who came face-to-face with Rudakubana as he rushed to save dying girls says it was 'like a horror film'

Labour vows to punish any other MP or minister caught up in Andrew Gwynne WhatsApp group scandal

Labour vows to punish any MP caught up in Andrew Gwynne WhatsApp group scandal

Donald Trump has spoken to Vladimir Putin

Trump confirms he 'spoke to Putin about ending war in Ukraine' as Russian president 'wants to see people stop dying'

displaced Gazans walking toward Gaza City on January 27, 2025, after crossing the Netzarim corridor from the southern Gaza Strip.

Israeli troops withdraw from key militarised corridor that splits Gaza in two as part of ceasefire deal

The bodies of Andrew Searle and his wife Dawn were discovered by a neighbour in Les Pesquiès, south of Villefranche-de-Rouergue, on Thursday afternoon.

Mysterious death of British couple in French villa suspected murder-suicide as investigators consider new theories

David Schwimmer has called for Elon Musk to ban Kanye West from X

Friends star David Schwimmer calls for Kanye West to be banned from X over 'hate-filled, ignorant' remarks

The NTSB recovers the debris of a Sikorsky UH-60 Black Hawk involved in a mid-air collision near DCA in Arlington, VA.

All major parts of DC plane and Black Hawk helicopter involved in mid-air collision recovered, investigators confirm

A Thai hostage who was freed from Hamas, Pongsak Thaenna, hugs a relative upon arrival at Suvarnabhumi International Airport

'We never gave up hope': Freed Thai hostages in tears of joy as they reunite with families after more than a year

Harry and Meghan at the opening ceremony for the Invictus Games.

Meghan and Prince Harry cheer on Team UK at Invictus Games opening ceremony

Daisy the Labrador.

Stolen dog reunited with family after seven years

Irish boxer John Cooney.

Boxer dies from a brain bleed, from injury during championship fight