Liz Truss is to delay the vote on cutting the 45p rate of tax for higher earners, a cabinet minister has told Sky News.
The policy was announced in last Friday’s mini-budget, but would have to go to a vote of MPs before it could be approved.
On Sunday, the party said any Tory MP who voted against the mini-budget would have the whip removed, which would mean they are suspended from the Conservative Party.
The vote is likely to take place in the spring, ahead of the budget.
Several Tory MPs have voiced their disapproval of the controversial plan to remove the 45p rate of income tax from higher earners – which would benefit the wealthiest 1%.
Tory grandee Michael Gove earlier said he did not approve of the policy, and tax cuts should firstly benefit those who need it the most.
And former cabinet minister Grant Shapps branded the move as “politically tin-eared”, accusing the PM and chancellor of putting “all their chips on red” in the hope that cutting taxes will deliver growth.
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The 45p income tax cut policy was one of a series that prompted turmoil in the markets over the past week, with the pound reaching record lows against the dollar.
Sky News political editor Beth Rigby said: “Liz Truss is avoiding a showdown with backbenchers in the coming weeks and is effectively buying herself some time.”
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2:07
Chancellor ‘sticking with growth plan’
Chancellor expected to double down on mini-budget
However, sources close to the chancellor said: “There will be a vote on the finance bill next year, as planned, and no delays are expected.”
It comes just hours before Chancellor Kwasi Kwarteng is expected to tell members to withstand the turbulence, so the government can show their economic plan is “sound, credible and will increase growth”.
He is also expected to double down on the mini-budget, saying it is the way forward to boost growth.
Mr Kwarteng is due to tell the Conservative Party conference in Birmingham on Monday: “We must face up to the facts that for too long our economy has not grown enough.
“The path ahead of us was one of slow, managed decline and I refuse to accept that it is somehow Britain’s destiny to fall into middle-income status.
“Or that the tax burden reaching a 70-year-high is somehow inevitable. It isn’t, and shouldn’t be.
“We needed a new approach, focused on raising economic growth. We must stay the course. I am confident our plan is the right one.”
Mr Kwarteng will also ask if we should “really just have accepted that fate” of “skyrocketing energy bills, a 70-year high tax burden, slowing long-term growth rates, painfully slow infrastructure delivery”.
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0:21
‘I stand by economic package’
‘That is my promise to the people of this country’
During the speech, the chancellor is expected to promise that there will be more businesses, jobs, higher pay and more money for public services, saying the country “cannot have a strong NHS without a strong economy”, nor good schools or quality infrastructure.
On top of that, he is due to reiterate the government’s promise of aiming for 2.5% annual trend growth.
“We did it before. We can do it again,” he will say. “And even in the face of extreme volatility in global markets.
“With major currencies wrestling an incredibly strong US dollar and longer-term trends from demographic change to climate change, we will show that our plan is sound, credible and will increase growth.
“That is my promise to the people of this country.”
The head of the Royal Navy has warned the government to “step up” and fund defence or risk losing the UK’s superiority in the Atlantic to Russia.
Should that happen, General Sir Gwyn Jenkins said it would be the first time since the end of the Second World War that Britain’s warships and submarines were not the dominant force in their most vital sea lanes alongside their allies.
“We are holding on, but not by much,” he told a conference in London on Monday.
“There is no room for complacency. Our would-be opponents are investing billions. We have to step up, or we will lose that advantage.”
As a senior, serving military officer speaking publicly, he did not make any direct criticism of the speed of plans by Sir Keir Starmer’s government to increase defence spending.
But Sky News has reported that he and his fellow chiefs held a “very difficult meeting” last month over how to fund plans to rebuild the armed forces amid fears of further cuts.
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1:49
Budget: what about defence spending?
Defence sources said there was growing concern at the very top of the armed forces about a gap between the promises being made by the prime minister to fix the UK’s hollowed-out defences and the reality of the size of the defence budget, which is currently not seen as growing fast enough.
That means either billions of additional pounds must be found more quickly, or ambitions to modernise and transform the armed forces might need to be curbed, despite warnings of mounting threats from Russia and China, and pressure from Donald Trump on allies to spend more on their own defences.
A Sky News and Tortoise podcast series called The Wargame tracks the hollowing out of the UK’s military since the end of the Cold War and the risk that has created.
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General Jenkins, the first Royal Marine to serve as First Sea Lord, used a speech at the Sea Power Conference to say that Russia is still investing billions in its naval capabilities – in particular the Northern Fleet that operates in the Atlantic – even as it wages war against Ukraine.
There has been a 30% increase in Russian incursions in the North Atlantic in the past two years, he said.
That included the Yantar spy ship, which last month was spotted off the coast of Scotland and even shone a laser at the pilots of a Royal Air Force reconnaissance plane that was tracking the vessel.
Image: The Russian spy ship Yantar. Pic: MOD/PA
Yet General Jenkins said what Russia is doing beneath the surface of the waves, where the UK and its allies store vital communications cables as well as critical oil and gas pipelines, was even more concerning.
“I can also tell you today that the advantage that we have enjoyed in the Atlantic since the end of the Second World War is at risk,” he said.
Image: HMS Iron Duke shadowing the Russian Frigate Neustrashimy through UK waters in September. Pic: PA
Navy facing huge challenges
It is a particularly tough time for the navy, which has more ships and submarines alongside and unable to operate than at sea or at least ready to sail.
The service is also suffering from a shortage of sailors and in particular submariners, which again is impacting the availability of the fleet.
The crisis follows decades of funding cuts since the end of the Cold War, compounded by a litany of botched procurement programmes that has all too often seen vessels coming into service years late, at an inflated price and in too few numbers.
Vision of ‘hybrid navy’
Despite the sombre tone, the First Sea Lord set out how he wants to transform his service and make it ready to fight a war – though not until 2029, a timeline that could be too slow if some predictions about the threat posed by Russia to NATO are correct.
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1:46
New UK military technology unveiled
His vision – working with industry and other allies – is about developing a blend of manned ships and submarines as well as unmanned ones – a “hybrid navy”.
He is also stripping back what he called the navy’s own bureaucracies to enable the service to move much faster – crucially at the pace of the threat and the pace of rapid and growing technological change.
“We will face headwinds, we will face rough seas, but together, we can solve these problems if we have the appetite, if we have the determination, and if we have the mindset.”
Two teenage asylum seekers from Afghanistan face possible deportation after being detained for abducting and raping a 15-year-old girl.
Jan Jahanzeb and Israr Niazal, both 17, led the “highly-distressed” victim away from friends near Leamington town centre to a secluded “den-type” area in parkland, where they pushed her to the ground and attacked her.
Sentencing the pair at Warwick Crown Court on Monday, Judge Sylvia de Bertodano said they ignored the victim’s “vigorous protests” and told them what they did “changed her life forever”.
“No child should have to suffer the ordeal that she suffered. It’s clear from the footage we have seen that no one can seriously entertain the thought that you believed she was consenting,” she said.
“You both knew perfectly well that what you were doing was criminal and wrong,” the judge added.
‘Highly distressing’
After lifting reporting restrictions protecting the identities of the defendants, the judge told them they had “betrayed” those who come to Britain seeking sanctuary and who observed the law.
Both defendants were unaccompanied child asylum seekers who arrived in the UK last year, prosecutor Shawn Williams said.
The incident happened in May of this year.
“Highly distressing” phone video found by police showed the victim screamed for help, but Jahanzeb placed his hand over her mouth.
CCTV footage showed that after being led away against her will, the terrified victim was “moved to a bushy den-type area – a really secluded location” before, according to her, she was “pushed to her knees before being raped”.
“The prosecution case is that it was probably Jahanzeb that did that, but what is certain is that Israr Niazal was present and participating,” Mr Williams said.
The victim had made “explicit verbal protests” during what Mr Williams described as an abduction.
What are their sentences?
Jahanzeb, who has already been served with deportation notification papers, was given 10 years, eight months’ youth detention.
Niazal, who may also be deported, was sentenced to nine years and 10 months.
They will start their sentences in a young offenders’ institution and move to prison at a later date, police said.
Both pleaded guilty to rape at an earlier hearing.
Detective Chief Inspector Richard Hobbs said the offenders “went out of their way to befriend the victim with the intention of raping her”.
“The length of their sentence reflects the severity of their crime and the need to protect the public from them,” he added.
After sentence was passed, Judge de Bertodano said the victim had been “beyond brave” in attending court at a previous stage, when the defendants had intended to plead not guilty.
They were both ordered to register as sex offenders.
A “striking” new design for UK trains has been revealed by the transport secretary – but you may well think it looks familiar.
Train services already in public ownership will begin to adopt a Union flag-inspired design from this spring, Heidi Alexander has confirmed.
It’s part of the government’s efforts to nationalise most passenger rail services in the UK and run them under the new Great British Railways (GBR) brand – with its logo to be unveiled later today.
Ms Alexander will be speaking more about GBR – which is due to be formally established in 2027 – on Mornings With Ridge And Frostfrom around 7.10am.
Image: The new Great British Railways logo has drawn on the original logo of British Rail from 1965.
Pic: Dovetail Games.
Haven’t I seen this somewhere before?
The branding features the familiar double arrow symbol used by British Rail when the country’s trains were last state-owned.
A spokesperson for the Department for Transport (DfT) said the “iconic” symbol has been incorporated into the new GBR logo to reflect “Britain’s proud railway heritage”.
Ms Alexander has insisted it “isn’t just a paint job”, saying: “It represents a new railway, casting off the frustrations of the past and focused entirely on delivering a proper public service for passengers.”
Special one-day public exhibition launched
People in the capital will be able to see the new train livery for themselves today, with a special one-day exhibit being held at London Bridge station, where a GBR-branded Hornby model train will be on display.
The government has also partnered with a gaming company to create mock-ups of the new design, and those at the station will be able to see a digital demonstration of the new artwork in Train Sim World 6.
The new designs will also be beamed on to digital display boards over the coming days at Manchester Piccadilly, Birmingham New Street, Glasgow Central, and Leeds City.
Image: People in the capital will be able to see a mock-up of a train in the new livery in a Train Sim World 6 game.
Pic: Dovetail Games.
It comes as MPs prepare to debate the government’s Railways Bill in the Commons.
The government has taken control of seven major operators so far, but has pledged to return all passenger services to public ownership as contracts with existing operators expire or are broken through a failure to deliver.
The government has said its Railways Bill will bring 17 different organisations together and will also lead to greater accountability, better services and an easier way to buy tickets.
Among the measures is the creation of a GBR app, where passengers will be able to check train times and buy tickets without booking fees, while those with disabilities will be able to also request assistance.
Image: A new ‘one-stop shop’ app will be launched as part of the scheme.
Pic: Department for Transport
The draft law would also beef up accountability by creating a strengthened Passenger Watchdog, while GBR would operate both services and maintain the railways themselves.
Ministers have pointed to improvements to existing services since they have been nationalised, such as South Western Railway boosting capacity by almost 10% by quadrupling its number of Arterio trains in service.
A new East Coast Main Line timetable will also come into effect this month, which the government says will lead to 10,000 extra LNER services every year, or roughly 60,000 extra seats a week.