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Kwasi Kwarteng is facing calls for an official inquiry following a report that he attended a private champagne reception with hedge fund managers following his mini-budget.

The Sunday Times newspaper reported that the chancellor joined the gathering in Chelsea on 23 September and was said to have been “egged on” to pursue his plan of £45bn of unfunded tax cuts.

Those hedge fund managers present stood to gain from the collapse in sterling following the mini-budget.

Speaking to Sky News’ Ridge on Sunday programme, Conservative Party Chairman Jake Berry denied that Mr Kwarteng discussed plans for future spending cuts at the event.

Liz Truss stands by mini-budget – Politics latest

Mr Berry, who attended the event, said: “I certainly didn’t hear him make those comments.

“I was there so I listened to what he said and what he talked about was his plan for growth.”

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Mr Berry added: “I can categorically rule out that in terms of the address he made to the group of people who were there as part of this normal treasurer’s event, he did not give any insight into future plans and I’m sure in terms of his private conversations he didn’t give any.”

He said that the event’s guests were broader than just hedge fund managers and also included property developers.

Mr Berry said these individuals “should be lauded” for supporting political parties and that the reception was part of the “normal drumbeat” of treasury events.

The Tory party chairman also noted that he believed Mr Kwarteng was “drinking a soft drink” at the do.

Also probed on the champagne reception, Liz Truss said Mr Kwarteng “meets business people all the time”.

“I do not manage Kwasi Kwarteng’s diary, believe me,” the PM told the BBC.

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Chancellor ‘sticking with growth plan’

Pressed on whether it would have been better if he had not attended since people are struggling with the cost-of-living crisis, Ms Truss said: “I get up every morning as prime minister thinking how can we make our country more successful, how can we reassure people, how can we help people get through these very difficult times and we do face difficult times…

“And that’s what I’m focused on. That’s what the chancellor is focused on and that is what the whole cabinet is focused on.”

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The Liberal Democrats have called for an inquiry into the matter.

The party’s treasury spokeswoman Sarah Olney said: “While struggling homeowners saw their mortgage bills spiral, it seems the chancellor was sipping champagne with hedge fund managers profiting from the falling pound.

“How out of touch can you get? We need an official inquiry into this now.”

A source close to the chancellor said: “Any suggestion attendees had access to privileged information is total nonsense.

“The Growth Plan published on Friday included a commitment to review our tax code to make it simpler, better for families and more pro-growth.

“The government’s ambitions on lowering the tax burden are hardly a state secret.”

The prime minister is set to face a wretched week at the Tory Party conference after the disastrous reaction to Mr Kwarteng’s tax-cutting mini-budget last month.

But ahead of the official opening of the event in Birmingham which comes at the end of another tumultuous week for the Conservative Party, Ms Truss said she was sticking to her guns and that the tax cuts were essential to getting the economy to grow again.

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‘I stand by economic package’

A series of polls taken this week have shown a massive drop in popularity for the Tories and a record high for Labour following the mini-budget.

The latest poll from Opinium showed 55% of voters disapprove of both Ms Truss and Mr Kwarteng while Labour enjoyed a 19-point boost.

And 75% of all voters think they have lost control of the economy. When it comes to Tory voters, 71% think they do not have the economy under control versus just 24% who believe they do.

But despite the criticism and plummeting support, Ms Truss this morning doubled down on the decision to remove the top rate of income tax (45%) as “it’s part of an overall package of making our tax system simpler and lower” – but admitted the policy was not discussed with the cabinet.

“It was a decision that the chancellor made,” she told the BBC.

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A spokesperson for the chancellor said: “As the PM said this morning, the 45p rate raises very little and makes our tax system more complicated.

“While the chancellor obviously makes all tax decisions, the prime minister and Kwasi are in lockstep on this.”

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Starmer suspends four Labour MPs for breaches of party discipline

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Starmer suspends four Labour MPs for breaches of party discipline

Sir Keir Starmer has suspended four MPs for repeated breaches of party discipline.

Brian Leishman, Chris Hinchliff, Neil Duncan-Jordan and Rachael Maskell have lost the whip, meaning they are no longer part of Labour’s parliamentary party and will sit as independent MPs.

The suspension is indefinite pending a review.

Three other MPs have had their trade envoy roles removed: Rosena Allin Khan, Bell Ribeiro-Addy and Mohammed Yasin.

Politics latest: Suspended MPs defend their voting record

All seven had voted against the government’s welfare reforms earlier this month. However, it is understood this is not the only reason behind the decision, with sources citing “repeated breaches of party discipline”.

More than 100 MPs had initially rebelled against the plan to cut personal independent payments (PIP). Ultimately, 47 voted against the bill’s third reading, after it was watered down significantly in the face of defeat.

Ms Maskell was one of the lead rebels in the welfare revolt, and has more recently called for a wealth tax to fund the U-turn.

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‘There are lines I will not cross’

The York Central MP has spoken out against the government on a number of other occasions since the election, including on winter fuel and cuts to overseas aid.

Confirming the suspension, Ms Maskell told Sky News that she “doesn’t see herself as a rebel” but “somebody that is prepared to fulfil (her) role here of holding the executive to account and speaking truth to power”.

She stopped short of criticising the decision, saying: “I hold my hand out to the prime minister and hope he takes that and wants to reach back because I think it’s really important that we work together.”

Prime Minister Sir Keir Starmer. File pic: PA
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File pic: PA

Ms Maskell was first elected in 2015, while the other suspended MPs were newly elected last year.

Mr Hinchliff, the MP for North East Hertfordshire, has proposed a series of amendments to the flagship planning and infrastructure bill criticising the government’s approach.

Mr Duncan-Jordan, the MP for Poole, led a rebellion against the cut to the winter fuel payments while Alloa and Grangemouth MP Mr Leishman has been critical of the government’s position on Gaza.

Suspended Labour MPs clearly hit a nerve with Starmer


Tamara Cohen

Tamara Cohen

Political correspondent

@tamcohen

After a tricky few weeks for the government, in which backbenchers overturned plans to cut back welfare spending, now a heavy hand to get the party into line.

All four suspended MPs appear to be surprised – and upset.

Three more have lost plum roles as trade envoys – all on the left of the party.

All were active in the rebellion against the government’s welfare reforms, and voted against the changes even after a series of U-turns – but were among 47 Labour MPs who did so.

When MPs were told after the welfare vote that Number 10 was “fully committed to engaging with parliamentarians”, this was not what they were expecting.

We’re told the reasons for these particular suspensions go wider – over “persistent breaches of party discipline” – although most are not high profile.

In the scheme of things, Jeremy Corbyn and John McDonnell rebelled against the Labour whip hundreds of times under New Labour, without being suspended.

But these MPs’ pointed criticism of the Starmer strategy has clearly hit a nerve.

Read Tamara’s analysis in full here

‘Couldn’t support making people poorer’

Mr Duncan-Jordan told Sky News that he understood speaking out against benefit cuts would “come at a cost” but said he “couldn’t support making disabled people poorer”.

Mr Leishman echoed that sentiment, saying: “I firmly believe that it is not my duty as an MP to make people poorer, especially those that have suffered because of austerity and its dire consequences.”

Both said they remain committed to the Labour Party and its values, suggesting they have no plans to join the new party being set up by former Labour leader Jeremy Corbyn and ousted MP Zarah Sultana.

Similarly Mr Hinchliff said in a brief statement: “I remain proud to have been elected as a Labour MP and I hope in time to return to the Labour benches.”

The suspensions will be seen as an attempt to restore discipline ahead of the summer recess following a number of rebellions that has forced the government into U-turns.

Read more:
Who are the suspended Labour MPs?

As well as watering down the welfare bill, some cuts to the winter fuel payment have been reversed, leaving Chancellor Rachel Reeves with a fiscal blackhole to fill.

However the move risks creating further divisions with a number of Labour MPs criticising the decision.

Starmer ‘rolling out the carpet to Reform’

Ian Byrne, Labour MP for Liverpool West Derby, said he was “appalled” by the suspensions as he and 44 others voted against welfare cuts.

He said this isn’t the first time the Starmer leadership has “punished MPs for standing up for what’s right”, as he and six others were suspended last year for voting against the two-child benefit cap.

“These decisions don’t show strength. They are damaging Labour’s support and risk rolling out the red carpet for Reform,” he added.

Richard Burgon, who was also temporarily suspended in the two-child benefit cap revolt, said he had hoped the leadership would take a different approach to backbenchers.

“Sadly, it isn’t yet doing so. To help stop a Reform government, it really must do so,” he said.

Jon Trickett, Labour MP for Normanton and Hemsworth, said “it’s not a sin to stand up for the poor and disabled”, adding: “Solidarity with the suspended four.”

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Why suspended Labour MPs clearly hit a nerve with Starmer

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Why suspended Labour MPs clearly hit a nerve with Starmer

After a tricky few weeks for the government, in which backbenchers overturned plans to cut back welfare spending, now a heavy hand to get the party into line.

Three newly-elected MPs, Neil Duncan-Jordan, MP for Poole, Brian Leishman, MP for the new Alloa and Grangemouth constituency, and Chris Hinchcliff, for North East Herefordshire, have all had the whip suspended.

Rachael Maskell, MP for York Central, who was first elected a decade ago, is the fourth.

Politics latest: Labour MP ‘appalled’ after Starmer suspends rebels

They will all sit as independent MPs and will not be allowed to stand for Labour at the next election, unless readmitted. All appear to be surprised – and upset.

Three more have lost plum roles as trade enjoys – Dr Rosena Allin-Khan, Bell Ribeiro-Addy and Mohammed Yasin, all on the left of the party.

All were active in the rebellion against the government’s welfare reforms, and voted against the changes even after a series of U-turns – but were among 47 Labour MPs who did so.

When MPs were told after the welfare vote that Number 10 was “fully committed to engaging with parliamentarians”, this was not what they were expecting.

We’re told the reasons for these particular suspensions go wider – over “persistent breaches of party discipline” – although most are not high profile.

In the scheme of things, Jeremy Corbyn and John McDonnell rebelled against the Labour whip hundreds of times under New Labour, without being suspended.

But these MPs’ pointed criticism of the Starmer strategy has clearly hit a nerve.

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Suspended MP: ‘There are lines I will not cross’

Maskell – who was referred to, jokingly, in the House of Commons earlier this month by Tory MP Danny Kruger as “the real prime minister” – led the rebellion against cuts to winter fuel allowance which triggered a U-turn which she said would still leave pensioners in fuel poverty.

There was an attack on the government’s values. Duncan-Jordan, a trade unionist who won the Poole seat by just 18 votes, led the welfare rebellion, telling Sky News the proposed cutbacks were “not a very Labour thing to do”.

Hinchliff, who has also opposed the government’s housebuilding strategy and plans to expand Luton airport,had told his local paper he was willing to lose the whip over welfare cuts if necessary. He also has a marginal seat, won by fewer than 2,000 votes.

Read more:
Who are the suspended Labour MPs?

Leishman, a former pro golfer, has also been vocal about government plans to close the refinery in his Grangemouth constituency after promising to try and make it viable. They are MPs who the leadership fear are going for broke – and that’s concerning as more tough decisions on spending are likely to come.

But after a poorly-handled welfare vote, in which MPs seemed to be in the driving seat forcing changes, will this instil a sense of discipline over the summer break?

While some MPs will see this as a deterrent to rebellion, for those whose chances of re-election are small, it may continue to be seen as a price worth paying.

To other Labour MPs, the move is confusing and may be counter-productive. One Labour MP on the left told me: “So, we’re suspending people for winning an argument with the government?”

Another, in the centre, feared it looked divisive, saying: “We need to go into the summer focused on the opposition – not involved in our melodramas.”

Number 10 wants to show rebelling comes at a price – but many Labour MPs with concerns about their political direction will want to know the prime minister is planning to listen to concerns before it gets to that point.

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‘Betrayed’ Afghan interpreter says family ‘waiting for death’ under Taliban after UK military data breach

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'Betrayed' Afghan interpreter says family 'waiting for death' under Taliban after UK military data breach

An Afghan interpreter who worked with the British military has told Sky News he feels “betrayed by the British government” after a massive data breach saw his personal details revealed.

Ali, whose name has been changed to protect his identity, had long suspected his details had been shared with the Taliban – but found out just yesterday that he was a victim of the breach three years ago.

He is now even more fearful for the lives of family members still in Afghanistan, who are already in hiding from the Taliban.

Ali worked alongside British soldiers in Helmand Province to help them speak with Afghan people. His job also involved listening in on Taliban radio communications and translating them for the British forces.

“The Taliban called us the British eyes,” he told Sky News. “Because they think if we are not on the ground with them, the British force cannot do anything.

“They know that you’re listening to their chatting and the British forces are acting according to our translation. We were always the first target and our job was always full of risk.”

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Here’s what the public couldn’t know until now.

After the Taliban seized power in Afghanistan in 2021, Ali – who had already suffered injuries after the Taliban targeted him with a car bomb – was brought to the UK through the British government’s Afghan Resettlement Programme (ARP) for his own protection.

Once in the UK, he began to suspect his data had been leaked after his father “died because the Taliban took him into custody and beat him”.

Ali contacted the Ministry of Defence to raise concerns over his personal information last year, and stated in an email that he was “terrified”, adding: “I beg of you, do not pass this information to anyone.”

“They just ignored what I told them and they never replied,” he said.

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Afghans being relocated after data breach

‘The Taliban want me’

Following confirmation that the data breach did take place, Ali is even more scared for the lives of his family members who have already been in hiding from the Taliban for around five months.

I’m feeling terrible and frustrated,” he said. “My family’s details have been shared with the Taliban intelligence forces and now they are looking for them.

“Every day, every single minute, my family’s waiting for their death, because if anyone comes to knock the door, they think that that is the Taliban.”

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Ali has twice applied for his family to be relocated to the UK but both applications have been rejected. He is now renewing his call for the British government to move his loved ones.

“I have carried the body of the British soldier,” he said. “I feel betrayed by the British government. They should relocate my family to a safe place.”

Read more:
Afghan man pleads for King’s help after data leak
How Afghan data breach unfolded
‘Serious questions to answer’ over data breach, says PM

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Ali has decided he will return to his homeland to help his family if they are not granted legal passage to the UK.

“If we don’t win [the case], I have decided I want to go back to Afghanistan and finish this,” he said. “The Taliban want me. If the British government can’t save my family, then I have this one responsibility to go and save them.

“I don’t want my family being killed for something they didn’t do.”

Sky News has contacted the Ministry of Defence for comment.

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