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

Published

3 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.

World

What’s it like with the National Guard on the streets of DC?

Published

4 hours ago

August 22, 2025

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What's it like with the National Guard on the streets of DC?

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What’s it like on the streets of DC right now, as thousands of federal police patrol the streets?

Who is Steve Witkoff, the US envoy regularly meeting Vladimir Putin and Benjamin Netanyahu to broker peace in Ukraine and Gaza?

And why is Californian Governor Gavin Newsom now tweeting like Donald Trump?

Martha Kelner and Mark Stone answer your questions.

If you’ve also got a question you’d like the Trump100 team to answer, you can email it to trump100@sky.uk.

You can also watch all episodes on our YouTube channel.

World

It’s been a confusing week – and Trump’s been made to look weak

Published

4 hours ago

August 22, 2025

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It’s been a confusing week.

The Monday gathering of European leaders and Ukraine’s president with Donald Trump at the White House was highly significant.

Ukraine latest: Trump changes tack

The leaders went home buoyed by the knowledge that they’d finally convinced the American president not to abandon Europe. He had committed to provide American “security guarantees” to Ukraine.

The details were sketchy, and sketched out only a little more through the week (we got some noise about American air cover), but regardless, the presidential commitment represented a clear shift from months of isolationist rhetoric on Ukraine – “it’s Europe’s problem” and all the rest of it.

Yet it was always the case that, beyond that clear achievement for the Europeans, Russia would have a problem with it.

Trump’s envoy’s language last weekend – claiming that Putin had agreed to Europe providing “Article 5-like” guarantees for Ukraine, essentially providing it with a NATO-like collective security blanket – was baffling.

Russia gives two fingers to the president

And throughout this week, Russia’s foreign minister Sergei Lavrov has repeatedly and predictably undermined the whole thing, pointing out that Russia would never accept any peace plan that involved any European or NATO troops in Ukraine.

“The presence of foreign troops in Ukraine is completely unacceptable for Russia,” he said yesterday, echoing similar statements stretching back years.

Remember that NATO’s “eastern encroachment” was the justification for Russia’s “special military operation” – the invasion of Ukraine – in the first place. All this makes Trump look rather weak.

It’s two fingers to the president, though interestingly, the Russian language has been carefully calibrated not to poke Trump but to mock European leaders instead. That’s telling.

The bilateral meeting (between Putin and Zelenskyy) hailed by Trump on Monday as agreed and close – “within two weeks” – looks decidedly doubtful.

Maybe that’s why he went along with Putin’s suggestion that there be a bilateral, not including Trump, first.

It’s easier for the American president to blame someone else if it’s not his meeting, and it doesn’t happen.

NATO defence chiefs met on Wednesday to discuss the details of how the security guarantees – the ones Russia won’t accept – will work.

European sources at the meeting have told me it was all a great success. And to the comments by Lavrov, a source said: “It’s not up to Lavrov to decide on security guarantees. Not up to the one doing the threatening to decide how to deter that threat!”

The argument goes that it’s not realistic for Russia to say from which countries Ukraine can and cannot host troops.

Would Trump threaten force?

The problem is that if Europe and the White House want Russia to sign up to some sort of peace deal, then it would require agreement from all sides on the security arrangements.

The other way to get Russia to heel would be with an overwhelming threat of force. Something from Trump, like: “Vladimir – look what I did to Iran…”. But, of course, Iran isn’t a nuclear power.

Something else bothers me about all this. The core concept of a “security guarantee” is an ironclad obligation to defend Ukraine into the future.

Future guarantees would require treaties, not just a loose promise. I don’t see Trump’s America truly signing up to anything that obliges them to do anything.

A layered security guarantee which builds over time is an option, but from a Kremlin perspective, would probably only end up being a repeat of history and allow them another “justification” to push back.

Image and reality don’t seem to match

Among Trump’s stream of social media posts this week was an image of him waving his finger at Putin in Alaska. It was one of the few non-effusive images from the summit.

He posted it next to an image of former president Richard Nixon confronting Soviet leader Nikita Khrushchev – an image that came to reflect American dominance over the Soviet Union.

That may be the image Trump wants to portray. But the events of the past week suggest image and reality just don’t match.

The past 24 hours in Ukraine have been among the most violent to date.

World

At least 17 dead in Colombia after car bombing and helicopter attack

Published

4 hours ago

August 22, 2025

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At least 17 dead in Colombia after car bombing and helicopter attack

At least 17 people were killed after a car bombing and an attack on a police helicopter in Colombia, officials have said.

Authorities in the southwest city of Cali said a vehicle loaded with explosives detonated near a military aviation school, killing five people and injuring more than 30.

Authorities said at least 12 died in the attack on a helicopter transporting personnel to an area in Antioquia in northern Colombia, where they were to destroy coca leaf crops – the raw material used in the production of cocaine.

Antioquia governor Andres Julian said a drone attacked the helicopter as it flew over coca leaf crops.

Colombian President Gustavo Petro attributed both incidents to dissidents of the defunct Revolutionary Armed Forces of Colombia (FARC).

He said the aircraft was targeted in retaliation for a cocaine seizure that allegedly belonged to the Gulf Clan.

Who are FARC, and are they still active?

The Revolutionary Armed Forces of Colombia, a Marxist guerrilla organisation, was the largest of the country’s rebel groups, and grew out of peasant self-defence forces.

It was formed in 1964 as the military wing of the Colombian Communist Party, carrying out a series of attacks against political and economic targets.

In 2016, after more than 50 years of civil war, FARC rebels and the Colombian government signed a peace deal.

It officially ceased to be an armed group the following year – but some small dissident groups rejected the agreement and refused to disarm.

According to a report by Colombia’s Truth Commission in 2022, fighting between government forces, FARC, and the militant group National Liberation Army had killed around 450,000 people between 1985 and 2018.

Both FARC dissidents and members of the Gulf Clan operate in Antioquia.

It comes as a report from the United Nations Office on Drugs and Crime found that coca leaf cultivation is on the rise in Colombia.

The area under cultivation reached a record 253,000 hectares in 2023, according to the UN’s latest available report.