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Never were the divides in the Conservative Party more stark than in the Brexit years.

Whether it was Leave campaigners demanding to exit the bloc on their terms, or Remain backers calling for a second referendum, the drama within the ranks was laid bare for all to see.

Parliament may have moved on from those tempestuous days but it hasn’t stopped the Tories finding new dividing lines, and the incumbent of Number 10 being pulled in numerous directions to keep their colleagues on side.

We take a look at the current factions in the party and what they want from Rishi Sunak.

New Conservatives

The newest kids on the block, this group is made up of 25 Tory backbenchers predominantly from so-called “Red Wall” seats that the party won from Labour in recent elections.

All of the members only entered parliament after 2016 – since the Brexit referendum took place – and say they are determined to focus the party on delivering on the 2019 manifesto, where Boris Johnson won a significant majority on his promises to “get Brexit done” and “level up” the country.

The faction has already outlined its 10-point plan for immigration, causing controversy with its call to end the temporary visa scheme for care workers and cap the number of refugees who can settle in the UK.

But one of its missions is to develop ideas for the upcoming manifesto, so you can expect to hear more from them.

Its co-chairs are MPs Miriam Cates and Danny Kruger.

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Who are the New Conservatives?

Northern Research Group

Perhaps the precursor to the New Conservatives, this faction was also born from the 2019 election victories in the Red Wall, promising to focus on the interests of the towns and cities that make up the Tories’ “Northern Powerhouse”.

With around 55 MPs from the north of England, Scottish borders and North Wales – led by the now-former chairman of the party, Sir Jake Berry – the group has expanded its remit somewhat, speaking out against COVID lockdowns and business taxes, as well as pushing for its core goals around devolution, transport and investment.

It also holds a conference every year, attracting senior members of government to speak and attempt to keep the powerful bloc onside.

Conservative Party chairman Jake Berry speaking at the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Wednesday October 5, 2022.
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Sir Jake Berry served as party chairman under Liz Truss

Net Zero Scrutiny Group/Conservative Environment Network

Climate policies have been a central bone of contention for Tory MPs in recent months – especially after the party managed to cling onto Mr Johnson’s former seat of Uxbridge and South Ruislip in a by-election by focusing on residents’ anger of the expansion of London’s Ultra Low Emission Zone (ULEZ).

The victory saw a number of the party’s green policies brought into question, with Mr Sunak pledging to only roll them out in a “proportionate and pragmatic way” and watering down a number of promises.

But the legal obligation to hit net zero by 2050 – a law brought in by the Conservatives – has long caused rows, with two groups being formed to represent both sides of the argument.

Minister for Universities, Science, Research and Innovation, Chris Skidmore, addresses the Universities UK Conference at the University of Birmingham. PA Photo. Picture date: Thursday September 12, 2019. See PA story EDUCATION Universities. Photo credit should read: Joe Giddens/PA Wire
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Chris Skidmore (L) and Craig Mackinlay (R) chair opposing groups when it comes to net zero

The Net Zero Scrutiny Group insists it is not climate sceptic, but instead says government policies have gone too far, too fast, contributing to the cost of living crisis.

The group of 50 or so MPs and peers – led by former UKIP deputy leader Craig Mackinlay – wants green levies to be scrapped, saying they are hitting the poorest the hardest, and wants the government to ramp up fossil fuel production at home.

On the other hand, there is the Conservative Environment Network (CEN), which claims to have over 130 MPs and peers backing its mission to “champion greater environmental action in parliament”.

They say Conservative voters don’t want to see a row about whether net zero is worth it or not, but a debate on the right policies to achieve it.

A smaller faction echoing the sentiments of the CEN is led by Tory MP Chris Skidmore and is known as the Net Zero Support Group, which aims to “demonstrate and maintain Conservative support for net zero carbon emissions and policies needed to deliver this”.

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China Research Group

Another hot topic within Conservative ranks is the best way to approach China, and this group was set up to amplify that debate.

It was co-founded and chaired by the now security minister Tom Tugendhat – an outspoken critic of the country, who has highlighted the dangers of its technological influence, its human rights record, and its ongoing sanctioning of UK politicians.

While its former chair now finds himself on the frontbench, the voices calling for tougher action on Beijing are growing and questioning the current administration’s desire to engage with China, rather than calling it out for being a threat.

Foreign Affairs Committee chair Alicia Kearns now leads the group.

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‘Your backbenchers pulled you back’

Common Sense Group

This collective of around 50 MPs and peers says it “stands for authentic conservatism”, with many of the issues they focus on falling squarely into the culture wars category.

From slamming the National Trust for publicising Winston Churchill’s family links to slavery, to attacking Black Lives Matter and Extinction Rebellion as “subversives fuelled by ignorance”, the group – led by veteran backbencher Sir John Hayes – calls on the government to “reflect the will of the people, rather than pandering to the peculiar preoccupations of the liberal elite and the distorted priorities of left-wing activists”.

They have published their own set of essays to highlight their concerns, with titles including, “The judicial activists threatening our democracy”, “Taking politics out of policing”, and “The case for strengthening families”.

Security minister John Hayes at the Conservative Party Conference in 2011.
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Sir John Hayes leads the group that focuses on culture war issues

Conservative Growth Group

This faction came to life after the short-lived premiership of Liz Truss, who was ousted from Number 10 after just 49 days following her disastrous mini-budget.

But while the party may have pushed for her undoing, her approach to tearing up the “economic orthodoxy” of the Treasury still garners the support of a number of backbenchers – especially those who enjoyed equally short-lived ministerial careers while she was in office.

There are only thought to be around 20 members in the group, including Ms Truss herself, but they are pushing for popular policies in the party, such as tax cuts and deregulation, as the best way for growing the British economy.

It is chaired by Ranil Jayawardena, who was environment secretary when Ms Truss was prime minister.

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Truss ‘tried to fatten and slaughter the pig’

Conservative Democratic Organisation

This is another group formed after Ms Truss’ exit, but with fierce loyalty to her predecessor, Mr Johnson.

The CDO were furious with how Mr Sunak had been chosen as the new leader – without a vote of the membership – calling it “undemocratic”, and promised to “take back control” of the party with its grassroots movement.

But it is not just leadership elections it wants to influence. The organisation hopes to “steer [the Tories’] political direction back to the centre-right”, with specific calls for tax cuts and attacks on the current PM for failing to provide them.

Key figures include billionaire Conservative donor Lord Cruddas, the party’s former treasurer, and key Johnson ally and former home secretary Priti Patel.

They have already held a conference, with other Johnson backers like Nadine Dorries and Jacob Rees-Mogg attending to give speeches.

Priti Patel
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Priti Patel is one of the members spearheading the group

European Research Group

A gang of Tory MPs who became household names during Brexit, the ERG may not dominate the headlines anymore, but they still hold a powerful position within the party.

The Eurosceptic group is currently chaired by Mark Francois, but saw many of its members promoted to ministerial positions after Boris Johnson came to power – including Sir Jacob Rees-Mogg, Suella Braverman and Steve Baker.

Its last appearance in the headlines came during Mr Sunak’s negotiations on the Windsor Framework – a renegotiated post-Brexit plan aiming to tackle the impact of leaving the EU on Northern Ireland – where they called key elements of the deal “practically useless”.

But with an election looming, and issues around cooperation with Europe already getting a lot of focus, the group could come to prominence again.

Jacob Rees-Mogg speaks at a meeting of the pro-Brexit European Research Group in London
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Sir Jacob Rees-Mogg used to chair the ERG before he was made a minister by Boris Johnson

Tory Reform Group

In stark contrast to the ERG, this group – established back in 1975 – promotes the One Nation Conservative ideology, a more centrist approach to both the economy and social policy.

Despite dominating the party during the David Cameron years, many of the One Nation group fell out of favour during the tumultuous Brexit debate due to their support for Remain, with Mr Johnson kicking a number of them out of the party for failing to back his exit plans.

But while they may have been in the shadows in recent years, there are still 100 members in parliament – with some former figures, such as Alex Chalk and Gillian Keegan, making it onto the frontbench – and they are starting to peek out above the parapet again.

Britain's Prime Minister and Conservative Party leader David Cameron (L) walks with Chancellor George Osborne during their visit to Marston's Brewery in Wolverhampton, central England April 1, 2015. Britain will go to the polls in a national election on May 7. REUTERS/Leon Neal/pool
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Before Brexit, One Nation Tories were an influential force in the party – especially under David Cameron and George Osborne

Recent issues being raised have included a call to focus on policies for winning back younger voters – such as rental reform and childcare – and appealing against leaving the European Convention on Human Rights.

And much like the ERG, these voices could become louder as the election campaign intensifies.

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Rachel Reeves signals she will break tax pledges – and gives strongest indication she will lift two-child cap

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Rachel Reeves signals she will break tax pledges - and gives strongest indication she will lift two-child cap

Rachel Reeves has signalled she is going to break her manifesto tax pledges at the budget – and has given her strongest indication yet she will lift the two-child benefit cap.

The chancellor said the world has changed in the year since the last budget, when she reiterated Labour’s manifesto promise not to raise national insurance, VAT or income tax on “working people”.

“It would, of course, be possible to stick with the manifesto commitments, but that would require things like deep cuts in capital spending,” she told BBC 5Live.

“I have been very clear that we are looking at both taxes and spending,” she added.

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The chancellor also gave her strongest indication yet she will lift the two-child benefit cap at the budget on 26 November, saying it is not right a child is “penalised because they are in a bigger family”.

Ms Reeves blamed poor productivity and growth over the last few years on the previous government “always taking the easy option to cut investment in rail and road projects, in energy projects and digital infrastructure”.

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She said she promised during the election campaign to “bring stability back to our economy”.

Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA
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Ms Reeves, here with US Secretary of Commerce Howard Lutnick in London in September, blamed tariffs for poor growth. Pic: PA

‘I’ll always do what’s right for UK’

“What I can promise now is I will always do what I think is right for our country, not the easy choice, but the thing that I think is necessary,” she added.

The chancellor blamed the UK’s lack of growth under her tenure on global conflicts, trade and tariffs over the past year.

In a dig at Donald Trump, who has imposed wide-ranging tariffs on countries around the world, she said: “The tariffs. I don’t think anyone could have foreseen when this government was elected last year that we were going to see these big increases in global tariffs and barriers to trade.

“And I have to be chancellor in the world as it is not necessarily the world as I would like it to be. But I have to respond to those challenges, and that’s the responsible thing to do.”

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Gordon Brown ‘confident’ of two-child benefit cap change

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‘Shameful’ that 4.5m children in poverty

‘Children should not be penalised’

The government has, so far, resisted lifting the two-child benefit cap, which means a family can only claim child benefits for the first two children.

But, it is a contentious subject within Labour, with seven of its MPs suspended two weeks after the election for voting to scrap it, while others are aware it will cost £2.8bn to do so.

Former Labour prime minister and chancellor Gordon Brown has been pushing for Ms Reeves, who says he is her hero, to lift it.

She said she saw Mr Brown at Remembrance Sunday, where they “had a good chat and we’ve emailed each other just today”, as she revealed they speak regularly.

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Labour’s child benefit cap dilemma

Ms Reeves added Mr Brown and Sir Tony Blair were big heroes of hers because they did so much to lift children out of poverty – the reason she went into politics.

Pushed on whether she would lift the cap, she said: “I don’t think that it’s right that a child is penalised because they are in a bigger family, through no fault of their own. So we will take action on child poverty.”

Mr Brown earlier told Sky News’ Mornings with Ridge and Frost he was “confident” of a two-child benefit cap change at the budget.

The latest YouGov polling found 59% of the public are in favour of keeping the cap in place, and only 26% thought it should be abolished.

Shadow chancellor Sir Mel Stride said: “Rachel Reeves has borrowed, spent and taxed like there’s no tomorrow – and she’s coming back for more because she doesn’t have a plan or the strength to stand up to Labour’s backbenchers, who are now calling the shots.

“My message is clear: if Rachel Reeves reduces government spending – including the welfare bill, she doesn’t need to raise taxes again. “

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Senate Committee unveils crypto market structure bill draft

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Senate Committee unveils crypto market structure bill draft

The US Senate Agriculture Committee has released its long-awaited discussion draft of crypto market structure laws, bringing Congress closer to passing legislation outlining how the crypto sector will be regulated.

Republican Agriculture Chair John Boozman and Democrat Senator Cory Booker released the draft on Monday, which includes brackets around sections of the bill that lawmakers are still negotiating.

The bill aims to outline the limits of the Commodity Futures Trading Commission and the Securities and Exchange Commission’s power to regulate crypto. Only Congress can set the agencies’ regulatory boundaries, but both have shared guidance to companies about crypto under the Trump administration’s deregulation push.

“The CFTC is the right agency to regulate spot digital commodity trading, and it is essential to establish clear rules for the emerging crypto market while also protecting consumers,”  Boozman said.

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Booker said the discussion draft “would provide the CFTC with new authority to regulate the digital commodity spot market, create new protections for retail customers, and ensure the agency has the personnel and resources necessary to oversee this growing market.”

The House passed a similar bill, called the CLARITY Act, to the Senate in July, which would give the CFTC a central role in regulating crypto.

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