Prime Minister Liz Truss facing fresh battle with senior Tories over benefits squeeze and public spending cuts

Published

2 years ago

October 4, 2022

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Liz Truss is facing a fresh battle with Conservative MPs over a potential benefits squeeze and cuts to public spending, after already being forced into making a policy U-turn.

The prime minister is under pressure to set out whether benefit payments will be uprated in line with inflation, or if they will face a real-term cut.

It is understood that Downing Street is considering increasing Universal Credit using a lower metric, such as the increase in average earnings, instead.

Politics live: Major U-turn after prominent Tories speak out

While an official decision on benefit payments has still not been made, Welfare Secretary Chloe Smith said one “will be taken in due course”.

Senior Tories have called on the PM to row back on cutting public spending in the middle of the cost of living crisis, with concerns that failing to keep pace with rising prices would leave some of the poorest households worse off.

It comes as the government dramatically dropped its plans to abolish the 45% tax rate on earnings over £150,000 following widespread criticism.

The policy was announced during the mini-budget near the end of September, which plunged UK markets into turmoil.

What are MPs saying?

Speaking to Sky News, Conservative MP Damian Green said: “The government should uprate in line with inflation. The previous government said it was going to, so people are expecting this.”

Asked if cuts to benefits are the next battle, he replied: “Well, I hope not because I hope the government has clearly started listening.”

Former transport secretary Grant Shapps is also among the senior Tories calling for the government to be transparent about its plans.

Asked if he would want to see benefits increased in line with inflation, he said: “Of course, every politician would want to see that.

“If there is a case whereby we are going to be going through difficult times, then the government must communicate that and be honest with people and explain how and what needs to happen next.”

Former home secretary Priti Patel is set to take aim over the government’s unfunded tax cuts, telling the Conservative Party it will “live or die” by its economic credibility.

According to The Times, she is expected to accuse the PM and Chancellor Kwasi Kwarteng of “spending today with no thought of tomorrow” and will call on Ms Truss to put a “ceiling” on public spending.

‘Action was needed urgently’

Despite the discontent within the Conservative Party, Liz Truss has pushed forward with her economic policy, saying the UK must have “the courage of its convictions to put our nation on the path to success”.

Writing in the Telegraph, the prime minister said the struggling economy was a global problem caused by Russia’s President Vladimir Putin and COVID and that there was “no time to waste”.

“Action was needed urgently. People forget the counterfactual of what would have happened had we not acted,” she wrote.

While she dismissed the U-turn on the 45p tax rate cut as a “tiny part of the plan”, reports in The Sun said that the Chairman of the 1922 Committee Sir Graham Brady went to see her at 7pm on Sunday evening.

The PM was then said to have met Chancellor Kwasi Kwarteng for crisis talks, hours before she ditched the tax promise on Monday morning.

Monday was a tumultuous day for the party, with Mr Kwarteng’s keynote conference speech altered at the last minute to acknowledge the U-turn.

Hours after his speech, it was revealed Mr Kwarteng will bring forward his medium-term financial statement from 23 November to this month, despite saying he would not earlier in the day.

Markets bounced back on Monday morning, but financial commentators cautioned that it was likely some respite only.

What will be happening at the Tory Conference today?

The Conservatives will be hoping for a quiet day on Tuesday ahead of Liz Truss’ speech on Wednesday.

In his first speech as foreign secretary, James Cleverly is expected to focus on the UK helping Ukraine defend itself against Russia.

He will also talk about finding a “mutually beneficial solution” to Brexit issues in Northern Ireland.

New Home Secretary Suella Braverman will also speak on Tuesday, setting out her plans to “redouble efforts to crack down on illegal migration”.

Education Secretary Kit Malthouse, Health Secretary and Deputy PM Therese Coffey, Transport Secretary Anne-Marie Trevelyan and Justice Secretary Brandon Lewis will also address the conference in Birmingham.

UK

Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Published

2 hours ago

November 23, 2024

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Gatwick Airport: Police release two people who were detained amid security incident as South Terminal reopens

Two people detained during a security incident at Gatwick Airport have been allowed to continue their journeys after a suspect package saw a “large part” of the South Terminal evacuated.

The terminal was closed for hours after the discovery of a “suspected prohibited item” in a passenger’s luggage sparked an emergency response. It reopened at around 3.45pm.

Officers from the EOD (Explosive Ordnance Disposal) team “made the package safe” before handing the airport back to its operator, Sussex Police said.

Their statement continued: “Two people who were detained while enquiries were ongoing have subsequently been allowed to continue their journeys.

“There will remain an increased police presence in the area to assist with passengers accessing the South Terminal for onward travel.”

The force also thanked the public and airport staff for their patience while the incident was ongoing.

Earlier the airport, which is the UK’s second busiest, said the terminal was evacuated after a “security incident”.

“The earlier security alert has now been resolved and cleared by police,” it later said in a statement on Friday afternoon.

“The South Terminal is reopening to staff and will be open to passengers shortly.”

Gatwick said some flights were cancelled while others were delayed.

It said passengers should contact their airlines for any updates on flights.

Footage on social media taken outside the airport showed crowds of travellers heading away from the terminal building.

“Arrived at London Gatwick for routine connection. Got through customs to find out they’re evacuating the entire airport,” one passenger said.

“Even people through security are being taken outside. Trains shut down,” another passenger added, who said “thousands” of people were forced to leave.

Another passenger said people near the gates were being told to stay there and not go back to the departure lounge.

People outside the airport were handed blankets and water, passengers told Sky News.

The airport said its North Terminal was still operating normally.

Gatwick Express said its trains did not call at Gatwick Airport during the police response, but the airport said trains would start calling there again once the terminal was fully reopened.

More than 600 flights were due to take off or land at Gatwick on Friday, amounting to more than 121,000 passenger seats, according to aviation analytics firm Cirium.

UK

Starmer says UK will ‘set out a path’ to raise defence spending to 2.5%

Published

5 hours ago

November 23, 2024

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Starmer says UK will 'set out a path' to raise defence spending to 2.5%

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

Ukraine war latest: Follow live updates

A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.