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Kwasi Kwarteng will return to the UK from Washington earlier than planned, as another major mini-budget U-turn is expected.

The chancellor was due to attend a final day of meetings at the International Monetary Fund’s annual gathering in Washington today.

Instead, after a hasty briefing with journalists late on Thursday, he announced he would fly home overnight.

Truss is out ‘and we have the numbers’, says Tory MP – politics latest

A source close to him dismissed suggestions that this represented a sign of panic and insisted that the chancellor’s focus was the medium-term fiscal plan.

Mr Kwarteng had been due to return to the UK from the annual IMF meeting later on Friday, but hasty changes were made.

Pressed on why there was a need for a last-minute schedule change, a Treasury source insisted that it was for talks on “the medium-term fiscal plan”.

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The source said that the IMF trip had “put everything in a global context… a global set of challenges…”

On his return, the chancellor is likely to find a significant section of his mini-budget re-drawn following days of open revolt among Tory MPs and an expectation that another major U-turn is on the cards.

It comes amid speculation in Westminster about the fate of Mr Kwarteng, only a few weeks into the job, if his financial plans are scrapped in the coming days.

However, Mr Kwarteng has insisted that his position is safe, telling broadcasters: “I am not going anywhere.”

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Pressure builds on Kwarteng

PM’s key pledge could be next casualty

Meanwhile, mounting pressure has been placed on Prime Minister Liz Truss to reassure the UK’s financial markets and rescue her administration, with her key pledge to scrap the planned increase in corporation tax from 19% to 25% widely seen as a likely casualty.

Former home secretary Priti Patel became the latest senior Tory to suggest the government could be forced into another U-turn, telling Sky News “market forces” could make a reversal on corporation tax cuts unavoidable.

Downing Street has not denied the policy could be reversed, despite it being one of Ms Truss’s landmark promises.

Former chancellor Rishi Sunak has no comment when asked about the Truss government tax cuts.
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Former chancellor Rishi Sunak gave no comment when asked about the Truss government tax cuts

Several reports have also suggested that senior Conservatives are plotting the possibility of replacing Ms Truss with a joint ticket of Rishi Sunak and Penny Mordaunt.

The Times newspaper said party grandees are among those considering replacing her with a “unity candidate”.

Sky News understands Downing Street held talks on abandoning more elements of the £43bn tax-cutting mini-budget on Thursday, with proposed changes to corporation tax and dividend tax among the policies being considered.

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‘There are difficult choices’ to be made

Speculation surrounding the proposed changes have been fuelled by the chancellor following an interview he did with The Daily Telegraph.

Asked about the expectation that the government could ditch its corporation tax promise, Mr Kwarteng simply replied: “Let’s see”.

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What are bonds and where do they fit in the mini-budget crisis?
‘Don’t prolong the pain’

He also insisted there would be “no real cuts to public spending”, but added that “there are difficult choices” to be made.

“You have to make sure that you know the public is getting value for money. And I make no apologies for that, there has to be some sort of fiscal discipline,” he said.

Since his mini-budget announcement at the end of September, the UK’s financial markets have been reeling, with the Bank of England forced to intervene to restore some sense of stability.

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Mini-budget caused ‘some turbulence’

‘Get on and do it – we all know it’s coming’

Not only did his policies spook markets, but they also caused anger among the Conservative Party, with some senior Tories calling for changes to be made.

Newly elected Foreign Affairs Committee Chair Alicia Kearns told LBC’s Tonight With Andrew Marr that she wanted the PM to succeed, but added her voice to calls for a change of course on the mini-budget.

She said: “The markets are not woke, the markets are not left. The fact they are not lefty, anti-government, the fact they have been spooked, is something that should be taken incredibly seriously.”

Former chancellor Ken Clarke told Sky News he has “never known a government to make such a catastrophic start”.

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‘Catastrophic start’ – Ken Clarke slates Truss

Former veterans minister Johnny Mercer also tweeted that the situation “needs a course correction” from Number 10.

“Get on and do it – we all know it’s coming,” he wrote.

The government’s plans revolve around securing an increase in economic growth – with a target of an annual rise of around 2.5% in gross domestic product.

The crucial date will be 31 October, when the forecasts presented by the Office for Budget Responsibility alongside the chancellor’s statement will give an assessment on whether such a plan is realistic.

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Baroness Mone: I have no wish to rejoin Lords as Conservative peer

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Baroness Mone: I have no wish to rejoin Lords as Conservative peer

Baroness Michelle Mone has broadened her attack on her political critics, accusing Conservative leader Kemi Badenoch of using “inflammatory” and “reckless” language that could prejudice a police investigation into her role in the awarding of PPE contracts.

A day after she wrote to Sir Keir Starmer, accusing the government of pursuing a vendetta against her, the former Conservative peer responded to comments by Ms Badenoch following a High Court ruling that a company linked to Baroness Mone’s husband must repay £122m received for surgical gowns.

The court found that PPE Medpro, founded by her husband Doug Barrowman, was in breach of contract with the Department of Health and gave it two weeks to repay the sum.

While not a director of the company, Baroness Mone used her political contacts to introduce PPE Medpro to the government’s “VIP fast-lane” at the start of the pandemic, and a family trust of which her children are beneficiaries received £29m of the profits.

A separate criminal investigation by the National Crime Agency (NCA) is ongoing, and assets linked to the couple worth £75m have been frozen while it continues.

In a series of radio interviews, Ms Badenoch criticised Baroness Mone, accusing her of bringing shame on the Conservative Party and calling for her to step down from the House of Lords.

“Where people do wrong, they should be punished,” she said. “They should face the full force of the law and this is something that I very strongly believe in,” she said.

“And as the prosecution against her continues, they should throw the book at her for every single bit of wrongdoing that has taken place.”

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Baroness Mone ‘should resign’

In a letter from her private office, Baroness Mone accuses the Tory leader of being ignorant of the facts and calls out a series of other Conservative politicians who introduced companies to the VIP lane.

“I was shocked to the core to read about your inflammatory language on BBC Radio yesterday calling for me to resign from the House of Lords,” she writes.

“You are commenting on a live criminal investigation that could prejudice the outcome of any trial, and in so doing, you are reportable to the attorney general for breach of and contempt of court. Does no one ever tell you these things before you and your colleagues make reckless statements in the public domain?”

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Baroness Mone goes on to say the NCA investigation has “nothing to do with PPE Medpro and the contracts”.

“The case theory of the NCA investigation is that I somehow misled the Conservative government about my alleged concealed involvement and ended up pocketing a lot of money,” she writes. “Well I’m sorry to disappoint you, but it isn’t true.”

She also says the Conservative government knew of her involvement and names former health secretary Matt Hancock, Lord Agnew, Lord Feldman and Lord Chadlington as being among 51 “mostly Conservative peers and MPs” who introduced providers to the VIP lane.

“So Kemi, my role was exactly the same as all other Conservative MPs and peers who were trying to help provide PPE… if I have done wrong, then so have all the others in the VIP lane. In which case, you should be calling out for them to resign as well. That’s if you manage to work out what it is they are supposed to have done wrong.”

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The High Court says a company linked to Mone breached a government contract of nearly £122m

She concludes by saying she has no wish to rejoin the Lords as a Conservative peer when her leave of absence ends, “that’s assuming there still is a Conservative Party before the next General Election”.

The letter comes as an online petition calling for Baroness Mone to step down from the Lords, launched by the Covid-19 Bereaved Families for Justice, attracted 60,000 signatures in 24 hours.

The Conservative Party has been approached for comment.

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Customer details stolen in Renault UK cyber attack

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Customer details stolen in Renault UK cyber attack

Renault UK has become the latest car company to be hit by a cyber attack.

The firm said some customer personal data had been accessed during a breach of one of its third-party data providers, but that no financial information or passwords had been compromised.

A spokesman said this included “customer names, addresses, dates of birth, gender, phone numbers, vehicle identification numbers and vehicle registration details”.

It comes after Jaguar Land Rover (JLR) was forced to suspend production at its UK factories following a cyber attack on 31 August.

JLR said earlier this week that it planned to resume limited production “in the coming days”, but no firm date has been announced.

Renault UK said none of its systems had been compromised, and manufacturing has not been affected.

A spokesperson added: “The third-party [data] provider has confirmed this is an isolated incident which has been contained, and we are working with it to ensure that all appropriate actions are being taken. We have notified all relevant authorities…

“We wish to apologise to all affected customers. Data privacy is of the upmost importance to us and we deeply regret that this has occurred.”

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Renault UK confirmed it was in the process of contacting all customers affected and advised them “to be cautious of any unsolicited requests for personal information”.

It refused to say how many were affected “for ongoing data security reasons”.

Retailers, airports and even a nursery chain have been targeted by cyber criminals during a spate of online attacks in recent months.

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Furniture retailer Cotswold Company lays groundwork for sale

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Furniture retailer Cotswold Company lays groundwork for sale

The long-standing owner of The Cotswold Company, the premium furniture and homewares brand, is paving the way for a sale after retaining investment bankers to oversee discussions with potential buyers.

Sky News has learnt that True, the private equity firm, recently appointed Rothschild-owned Arrowpoint Advisory to formulate a long-term disposal plan.

Sources said an auction of the premium handcrafted furniture retailer was not imminent, but acknowledged True was expected to pursue a sale in the next couple of years.

The investor has owned the business since 2016.

News of the prospective sale comes two weeks after The Cotswold Company reported a 30% rise in sales in the six months to August 30.

It said the rise had been driven by strong momentum behind the brand, as well as improvements to its digital offering.

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The company has more than 250,000 active customers, and opened two new showrooms during the half-year period.

Ralph Tucker, The Cotswold Company’s chief executive, said it provided “alternatives to soulless and low-quality furniture”.

It recently recruited TV personality Will Kirk as its quality expert, which it hopes will cement its credentials as a seller of products known for their craftsmanship and sustainability.

True and The Cotswold Company declined to comment.

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