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.
Donald Trump’s special envoy Steve Witkoff has met Vladimir Putin for talks in Russia – as the US president called on Moscow to “get moving” with ending the war in Ukraine.
Mr Witkoff, who has been pressing the Kremlin to accept a truce, visited Mr Putin in St Petersburg after earlier meeting the Russian leader’s international co-operation envoy Kirill Dmitriev.
Mr Putin was shown on state TV greeting Mr Witkoff at the city’s presidential library at the start of the latest discussions about the search for a peace deal on Ukraine.
Before Friday’s meeting, Kremlin spokesman Dmitry Peskov played down expectations of a breakthrough and told state media the visit would not be “momentous”.
However, Sky News Moscow correspondent Ivor Bennett said he believes the meeting – Mr Witkoff’s third with Mr Putin this year – is significant as a sign of the Trump administration’s “increasing frustration at the lack of progress on peace talks”.
Earlier on Friday, Mr Trump issued his latest social media statement on trying to end the war, writing on Truth Social: “Russia has to get moving. Too many people ere [sic] DYING, thousands a week, in a terrible and senseless war – A war that should have never happened, and wouldn’t have happened, if I were President!!!”
Dialogue between the USand Russia, aimed at agreeing a ceasefire ahead of a possible peace deal to end the war, has recently appeared to have stalled over disagreements around conditions for a full pause.
Image: Mr Trump, pictured at a cabinet meeting at the White House earlier this week, has called for Russia to ‘get moving’. Pic: AP
Secondary sanctions could be imposed on countries that buy Russian oil, Mr Trump has said, if he feels Moscow is dragging its feet on a deal.
Mr Putin has said he is ready in principle to agree a full ceasefire, but argues crucial conditions have yet to be agreed – and that what he calls the root causes of the war have yet to be addressed.
The Russian president wants to dismantle Ukraine as an independent, functioning state and has demanded Kyiv recognise Moscow’s annexation of Crimea and other partly occupied areas, and pull its forces out, as well as a pledge for Ukraine to never join NATO and for the size of its army to be limited.
Zelenskyy renews support calls after attack on home city
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0:44
Children killed in strike on Zelenskyy’s home town
Speaking online at a meeting of the so-called Ramstein group of about 50 nations that provide military support to Ukraine, named after a previous meeting at America’s Ramstein air base in Germany in 2022, Mr Zelenskyy said recent Russian attacks showed Moscow was not ready to accept and implement any realistic and effective peace proposals.
Mr Zelenskyy also made his evening address to the nation, saying: “Ukraine is not just asking – we are ready to buy appropriate additional systems.”
The UK’s defence secretary, John Healy, has said this is “the critical year” for Ukraine – and has confirmed £450m in funding for a military support package.
A family of five Spanish tourists, including three children, have been killed in a helicopter crash in New York City.
A New York City Hall spokesman identified two of those killed as Agustin Escobar, a Siemens executive, and Merce Camprubi Montal – believed to be his wife, NBC News reported.
The pilot was also killed as the aircraft crashed into the Hudson River at around 3.17pm on Thursday.
New York Police commissioner Jessica Tisch said divers had recovered all those on board from the helicopter, which was upside down in the water.
“Four victims were pronounced dead on scene and two more were removed to local area hospitals, where sadly both succumbed to their injuries,” she said.
Image: The helicopter was submerged upside down in the Hudson. Pic: Reuters
Image: A crane lifted out the wreckage on Thursday evening. Pic: AP
The Spanish president Pedro Sanchez called the news “devastating”.
“An unimaginable tragedy. I share the grief of the victims’ loved ones at this heartbreaking time,” he wrote on X.
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The aircraft was on a tourist flight of Manhattan, run by the New York Helicopters company.
Witnesses described seeing the main rotor blade flying off moments before it dropped out the sky.
Image: Agustin Escobar and Merce Camprubi Montal.
Pic: Facebook
Lesly Camacho, a worker at a restaurant along the river in Hoboken, said she saw the helicopter spinning uncontrollably before it slammed into the water.
“There was a bunch of smoke coming out. It was spinning pretty fast, and it landed in the water really hard,” she said.
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0:55
Witness saw ‘parts flying off’ helicopter
Another witness said “the chopper blade flew off”.
“I don’t know what happened to the tail, but it just straight up dropped,” Avi Rakesh told Sky’s US partner, NBC News.
Video on social media showed parts of the Bell 206 helicopter tumbling through the air and landing in the river.
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1:59
New York mayor confirms six dead
Image: The crash happened near Pier 40. Pic: AP
New York Mayor Eric Adams confirmed the six deaths and said authorities believed the tourists were from Spain.
He said the flight had taken off from a downtown heliport at around 3pm.
Image: Pic: Cover Images/AP
The crash happened close to Pier 40 and the Holland tunnel, which links lower Manhattan’s Tribeca neighbourhood with Jersey City to its west.
Tracking service Flight Radar 24 published what it said was the helicopter’s route, with the aircraft appearing to be in the sky for 15 minutes before the crash.
The Federal Aviation Administration and the National Transportation Safety Board have started an investigation.
A former ballerina who spent more than a year in a Russian jail for donating £40 to a charity supporting Ukraine has returned home to the US after being freed in a prisoner exchange.
Ksenia Karelina landed at Joint Base Andrews in Maryland at around 11pm, local time, on Thursday.
A smiling Ms Karelina was greeted on the runway by her fiance, the professional boxer Chris van Heerden, and given flowers by Morgan Ortagus, President Donald Trump’s deputy special envoy to the Middle East.
Image: Ksenia Karelina arrives at Joint Base Andrews. Pic: AP
Van Heerden said in a statement he was “overjoyed to hear that the love of my life, Ksenia Karelina, is on her way home from wrongful detention in Russia.
“She has endured a nightmare for 15 months and I cannot wait to hold her. Our dog, Boots, is also eagerly awaiting her return.”
He thanked Mr Trump and his envoys, as well as prominent public figures who had championed her case, including Dana White, a friend of Mr Trump and CEO of the Ultimate Fighting Championship (UFC).
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Ms Karelina, 34, a US-Russian citizen also identified as Ksenia Khavana, was accused of treason when she was arrested in Yekaterinburg, in southwestern Russia, while visiting family in February last year.
Investigators searched her mobile phone and found she made a $51.80 (£40) donation to Razom, a charity that provides aid to Ukraine, on the first day of Russia’s invasion in 2022.
She admitted the charge at a closed trial in the city in August last year and was later jailed for 12 years, to be served in a penal colony.
At a cabinet meeting on Thursday, Mr Trump, who wants to normalise relations with Moscow, said the Kremlin “released the young ballerina and she is now out, and that was good. So we appreciate that”.
Image: Ksenia Karelina is hugged by her boyfriend, Chris van Heerden. Pic: Reuters
Russian security services accused her of “proactively” collecting money for a Ukrainian organisation that was supplying gear to Kyiv’s forces.
The First Department, a Russian rights group, said the charges stemmed from a $51.80 donation to a US charity aiding Ukraine.
Washington, which had called her case “absolutely ludicrous”, released Arthur Petrov, who it was holding on charges of smuggling sensitive microelectronics to Russia, in the prisoner swap in Abu Dhabi.
Karelina was among a growing number of Americans arrested in Russia in recent years as tensions between Moscow and Washington spiked over the war in Ukraine.
Her release is the latest in a series of high-profile prisoner exchanges Russia and the US carried out in the last three years – and the second since Mr Trump took office.
White House national security adviser Mike Waltz said members of the Trump administration “continue to work around the clock to ensure Americans detained abroad are returned home to their families”.