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.
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.
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The policy was announced during the mini-budget near the end of September, which plunged UK markets into turmoil.
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2:16
Pound up after tax U-turn
What are MPs saying?
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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.
Image: Grant Shapps said the government must communicate clearly with the public
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.
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4:01
Is there any way back for Kwarteng?
‘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.
Markets bounced back on Monday morning, but financial commentators cautioned that it was likely some respite only.
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1:45
‘We have a plan and we need to deliver it’
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.
Chloe Kelly scored the winning spot-kick following two huge saves from goalkeeper Hannah Hampton, after Alessia Russo scored an equaliser to send the game to a shootout.
Nowhere was the roar for the Lionesses louder than in the Astley and Tyldesley Miners Welfare club on the outskirts of Manchester.
The club where a five-year-old Ella Toone started her journey to England stardom, like so many places across the country, hosted nail-biting, table-thumping and, ultimately, deafening watch parties.
The roof almost came off the clubhouse when Chloe Kelly’s winning penalty went in.
Red bucket hats emblazoned with Toone’s now-famous ‘Buzzing My Head Off’ catchphrase were thrown in the air.
“Absolutely ecstatic,” said Lorraine Warwick-Ellis, who runs the pathway development for women and girls at the club.
“I was very nervous, very worried about penalties but we did it in the end.”
The success of the Lionesses has driven a huge boom in the popularity of women’s and girls football in recent years. She hopes this win will have a similar effect.
“I hope it cements the girls who are already here, keeps them engaged, and I hope it brings more girls down who want to be footballers and see that it’s open for everybody.”
It had been a pretty sombre watch for much of the game after Spain took the lead – but it erupted into life after Alessia Russo’s equaliser.
The shootout was the usual emotional rollercoaster but young fans seem to have greater faith in the Lionesses.
Among the jubilant teenagers celebrating in the clubhouse were two who have followed Toone’s path to academies at professional clubs.
“It’s unbelievable, they’re amazing, Chloe Kelly, I just don’t know what to say about her,” said Natasha Greenhouse. “We knew if it went to penalties that they’d do it.”
Tamsin Gallagher said: “They’ve done it the hard way all the way through the Euros but we all believed in them. Come on England.”
The party in Manchester and around the country and only just begun.
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16:49
‘I am so incredibly proud’
Prince William and Princess Charlotte, who were in attendance at St Jakob-Park in Basel, added on social media: “What a game!
“Lionesses, you are the champions of Europe and we couldn’t be prouder of the whole team. Enjoy this moment England.”
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In a post on the official Royal Family account on X, King Charles also sent his “most heartfelt congratulations on winning the Euros 2025” to the Lionesses.
“For more years than I care to remember, England fans have sung that famous chant ‘football’s coming home’,” he said.
“As you return home with the trophy you won at Wembley three years ago, it is a source of great pride that, through sporting skill and awesome teamwork, the Lionesses have made those words ring true.
“For this, you have my whole family’s warmest appreciation and admiration. More than that, though, you have shown through your example over past weeks that there are no setbacks so tough that defeat cannot be transformed into victory, even as the final whistle looms.”
The monarch ended his statement by saying “the next task is to bring home the World Cup in 2027 if you possibly can!”
Culture Secretary Lisa Nandy added: “What an absolutely extraordinary achievement by our Lionesses – once again they have made history and united the country with pride and joy.”
Reform UK’s Nigel Farage said “well done” to the team and “what an absolutely fantastic watch,” while Conservative leader Kemi Badenoch said: “What an achievement. What a team!”
A man has died after suffering cardiac arrest onboard a boat attempting to reach the UK.
The vessel turned back towards Equihen beach on the French coast yesterday morning.
A nurse tried to resuscitate the man but was unsuccessful.
Image: Pic: PA
French authorities have now launched an investigation into the circumstances.
A spokesperson for Doctors Without Borders, also known as MSF, has criticised authorities on both sides of the Channel.
Jacob Burns said: “Yet again we have a tragedy in the Channel, that is the consequence of the deadly, costly and ineffective security policies implemented by the UK and France.”
Image: Pic: PA
Later on Saturday, a lifeboat carried migrants who have made the voyage into the Port of Dover.
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Photographs showed them huddled under blankets and orange life jackets on board.
“The opportunity of tomorrow and what’s on offer is the best thing in football,” the England captain said. “I think we don’t necessarily carry the weight of it and how much it means to people, but we’re aware of it because it means the same to us.”
So often they were only watching other nations making finals.
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England’s first was the men winning the 1966 World Cup.
Image: England manager Sarina Wiegman reacts to defeat against Spain at the Women’s World Cup final in 2023. Pic: Reuters
Image: Lauren James looks dejected after their World Cup defeat, but is confirmed fit for Sunday’s revenge match against Spain. Pic: Reuters
Now, in Basel, comes the chance for revenge against Spain – even though no one in the England camp is saying that, publicly at least, in Switzerland.
Especially knowing how challenging a task it is coming up again against Aitana Bonmati and Alexia Putella – the recent winners of football’s biggest individual honours.
Image: England fans celebrating after England beat Italy to reach the finals. Pic: Reuters
Image: Given England’s history against Spain, it could be a nerve-wracking time for England fans. File pic: Action Images/Reuters
But this is Spain’s first Euros final.
And there is some fear from the world champions at England’s grit and resolve to produce comebacks late in the quarter-finals and semi-finals – with 19-year-old Michelle Agyemang’s goals integral to the fightbacks.
Image: England celebrate their semi-final win against Italy to reach the finals. Pic: Reuters
Image: Michelle Agyemang has propelled England to the Euro 2025 final with two vital goals. Pic: AP
Spain captain Irene Paredes reflected yesterday on how the Lionesses can flip a result late on.
But she was also discussing how their World Cup win was tarnished by the on-pitch kiss that led to former Spanish federation president Luis Rubiales being convicted of a sexual assault on striker Jenni Hermoso.
It sparked a wider clamour in Spain for improved rights and respect for women.
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2:10
Spain’s players struggle for respect
“Since then [2023] we took big steps forward,” Paredes said.
“I think this idea is disappearing from society. I still believe we have to continue opening doors… we’re a reference for boys and girls in society, but we still have things to do.”
It is a reminder that while tonight is about collecting silverware, both England and Spain know that emerging as champions can drive further growth in women’s football back home.
Amid it all, they’ll try to savour just what reaching a final means and how rare they are – until recently for English and Spanish women.