Battles on the backbenches – what are the different factions in the Conservative Party?

Published

2 years ago

January 16, 2024

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Long gone are the days of Leave versus Remain. But the Conservative Party and its varied factions are still able to draw battle lines between one another when MPs face a crucial vote.

This week, the focus will be on Rishi Sunak’s Rwanda bill – his attempt to revive the scheme, ruled unlawful by the Supreme Court, that would see asylum seekers arriving by small boat crossings deported to the African nation.

The bill passed its second reading in a crunch Commons vote just before Christmas.

But it will return for its next parliamentary stages on Tuesday and Wednesday this week – and the different factions are still causing the prime minister trouble.

So who are the different groups on the Tory benches? And what do they want?

European Research Group

This gang of MPs is the most well-known of the so-called “five families” of right-wing groups within the Conservative Party.

It became a household name during Brexit years, dominating the headlines with its own demands for exiting the EU, but has kept relatively quiet since the deal was done – except for calling key elements of the Windsor Framework “practically useless”.

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.

Now, the ERG is leading the fight once again over the Rwanda bill, calling for the prime minister to scrap his current plan, start again and go further in ignoring international treaties and limiting the ability for asylum seekers to take appeals to court.

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 Mr Johnson won a significant majority on his promises to “get Brexit done” and “level up” the country.

One of its first events as it sought to raise its public profile was outlining 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.

Now, its right-wing members have raised doubts over Mr Sunak’s Rwanda bill.

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.

But as the third of the five families of those on the right, its support could be crucial to seeing the Rwanda legislation become law.

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

Common Sense Group

This collective of around 50 MPs and peers says it “stands for authentic conservatism”, with many of the issues it focuses 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”.

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

And the group takes a strong stance when it comes to immigration, so a question mark remains over whether Mr Sunak’s bill goes far enough for this group.

Conservative Growth Group

The final of the “five families”, this group 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 while Ms Truss was prime minister.

One Nation caucus

In stark contrast to the previous five, 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 over 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.

Recent issues being raised have included a call to focus on policies for winning back younger voters – such as rental reform and childcare.

But they are now seen as a key faction for the prime minister to keep onside to ensure the success of the Rwanda plan.

The group has offered its support to Mr Sunak so far, and pledged to back the bill.

But with its more liberal outlook – and having voiced concerns about the prospect of leaving (or break) international human rights treaties – the members have also said they will pull their backing if the prime minister bends to the will of those on the right and goes too far.

Away from the Rwanda row, there are other factions in the party who all want to have their voices heard by the leadership on their main issues of concern.

Conservative Democratic Organisation

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

The CDO was 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 Dame Priti Patel.

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

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.

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 on to 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.

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”.

It says 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”.

Politics

Upcoming budget will be big – and Starmer has some serious convincing to do as he fights for survival

Published

5 hours ago

November 24, 2025

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Upcoming budget will be big - and Starmer has some serious convincing to do as he fights for survival

Wednesday’s budget is going to be big.

It will be big in terms of tax rises, big in terms of setting the course of the economy and public services, and big in terms of political jeopardy for this government.

The chancellor has a lot of different groups to try to assuage and a lot is at stake.

“There are lots of different audiences to this budget,” says one senior Labour figure. “The markets will be watching, the public on the cost of living, the party on child poverty and business will want to like the direction in which we are travelling – from what I’ve seen so far, it’s a pretty good package.”

The three core principles underpinning the chancellor’s decisions will be to cut NHS waiting lists, cut national debt and cut the cost of living. There will be no return to austerity and no more increases in government borrowing.

Politics Live: Reeves’s ‘mansplaining’ claims are just a ‘smokescreen’, says shadow chancellor

What flows from that is more investment in the NHS, already the big winner in the 2024 Budget, and tax rises to keep funding public services and help plug gaps in the government’s finances.

Some of these gaps are beyond Rachel Reeves’ control, such as the decision by the independent fiscal watchdog (the Office for Budget Responsibility) to downgrade the UK’s productivity forecasts – leaving the chancellor with a £20bn gap in the public finances – or the effect of Donald Trump’s tariffs on the global economy.

Others are self-inflicted, with the chancellor having to find about £7bn to plug her reversals on winter fuel allowance and welfare cuts.

By not pulling the borrowing lever, she hopes to send a message to the markets about stability, and that should help keep down inflation and borrowing costs low, which in turn helps with the cost of living, because inflation and interest rates feed into what we pay for food, for energy, rent and mortgage costs.

That’s what the government is trying to do, but what about the reality when this budget hits?

This is going to be another big Labour budget, where people will be taxed more and the government will spend more.

Only a year ago the chancellor raised a whopping £40bn in taxes and said she wasn’t coming back for more. Now she’s looking to raise more than £30bn.

That the prime minister refused to recommit to his manifesto promise not to raise income tax, VAT or national insurance on working people at the G20 in South Africa days ahead of the budget is instructive: this week we could see the government announce manifesto-breaking tax rises that will leave millions paying more.

Freeze to income thresholds expected

The biggest tax lever, raising income tax rates, was going to be pulled but has now been put back in neutral after the official forecasts came in slightly better than expected, and Downing Street thought again about being the first government in 50 years to raise the income tax rate.

On the one hand, this measure would have been a very clean and clear way of raising £20bn of tax. On the other, there was a view from some in government that the PM and his chancellor would never recover from such a clear breach of trust, with a fair few MPs comparing it to the tuition fees U-turn that torpedoed Nick Clegg’s Lib Dems in the 2015 general election.

Instead, the biggest revenue raiser in the budget will be another two-year freeze on income tax thresholds until 2030.

This is the very thing that Reeves promised she would not do at the last budget in 2024 because “freezing the thresholds will hurt working people” and “take more money out of their payslips”. This week, those words will come back to haunt the chancellor.

Two-child cap big headline grabber

There will also be more spending and the biggest headline grabber will be the decision to lift the two-child benefit cap.

This was something the PM refused to commit to in the Labour manifesto, because it was one of the things he said he couldn’t afford to do if he wanted to keep taxes low for working people.

But on Wednesday, the government will announce it’s spending £3bn-a-year to lift that cap. Labour MPs will like it, polling suggests the public will not.

What we are going to get on Wednesday is another big tax and spend Labour budget on top of the last.

For the Conservatives, it draws clear dividing lines to take Labour on. They will argue that this is the “same old Labour”, taxing more to spend more, and more with no cuts to public spending.

Having retreated on welfare savings in the summer, to then add more to the welfare bill by lifting the two-child cap is a gift for Labour’s opponents and they will hammer the party on the size of the benefits bill, where the cost of supporting people with long-term health conditions is set to rise from £65bn-a-year to a staggering £100bn by 2029-30.

Mansion tax on the cards

There is also a real risk of blow-up in this budget as the chancellor unveils a raft of revenue measures to find that £30bn.

There could be a mansion tax for those living in more expensive homes, a gambling tax, a tourism tax, a milkshake tax.

Ministers are fearful that one of these more modest revenue-raising measures becomes politically massive and blows up.

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This is what happened to George Osborne in 2012 when he announced plans to put 20% of VAT on hot food sold in bakeries and supermarkets. The plan quickly became an attack on the working man’s lunch from out-of-touch Tories and the “pasty tax” was ditched two months later.

And what about the voters? Big tax and spend budgets are the opposite of what Sir Keir Starmer promised the country when he was seeking election. His administration was not going to be another Labour tax and spend government but instead invest in infrastructure to turbocharge growth to help pay for better services and improve people’s everyday lives.

Seventeen months in, the government doesn’t seem to be doing things differently. A year ago, it embarked on the biggest tax-raising budget in a generation, and this week, it goes back on its word and lifts taxes for working people. It creates a big trust deficit.

Government attempts to tell a better story

There are those in Labour who will read this and point to worse-than-expected government finances, global headwinds and the productivity downgrades as reasons for tax raising.

But it is true too that economists had argued in the run-up to the election that Labour’s position on not cutting spending or raising taxes was unsustainable when you looked at the public finances. Labour took a gamble by saying tax rises were not needed before the election and another one when the chancellor said last year she was not coming back for more.

After a year-and-a-half of governing, the country isn’t feeling better off, the cost of living isn’t easing, the economy isn’t firing, the small boats haven’t been stopped, and the junior doctors are again on strike.

The PM told me at the G7 summit in Canada in June that one of his regrets of his first year wasn’t “we haven’t always told our story as well as we should”.

What you will hear this week is the government trying to better tell that story about what it has achieved to improve people’s lives – be that school breakfast clubs or extending free childcare, increasing the national living wage, giving millions of public sector workers above-inflation pay rises.

You will also hear more about the NHS, as the waiting lists for people in need of non-urgent care within 18 weeks remain stubbornly high. It stood at 7.6m in July 2024 and was at 7.4m at the end of September. The government will talk on Wednesday about how it intends to drive those waits down.

But there is another story from the last 18 months too: Labour said the last budget was a “once in a parliament” tax-raising moment, now it’s coming back for more. Labour said in the election it would protect working people and couldn’t afford to lift the two child-benefit cap, and this week could see both those promises broken.

Can PM convince his MPs?

Labour flip-flopped on winter fuel allowance and on benefit cuts, and is now raising your taxes.

Downing Street has been in a constant state of flux as the PM keeps changing his top team, the deputy prime minister had to resign for underpaying her tax, while the UK’s ambassador to the US, Peter Mandelson, was sacked over his ties to the Jeffrey Epstein, the late convicted paedophile. It doesn’t seem much like politics being done differently.

All of the above is why this budget is big. Because Wednesday is not just about the tax and spend measures, big as they may be. It is also about this government, this prime minister, this chancellor. Starmer said ahead of this budget that he was “optimistic” and “if we get this right, our country has a great future”.

But he has some serious convincing to do. Many of his own MPs and those millions of people who voted Labour in, have lost confidence in their ability to deliver, which is why the drumbeat of leadership change now bangs. Going into Wednesday, it’s difficult to imagine how this second tax-raising budget will lessen that noise around a leader and a Labour government that, at the moment, is fighting to survive.

Politics

Rising crypto token value capture may fuel 2026 rebound: Bitwise CIO

Published

9 hours ago

November 24, 2025

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Rising crypto token value capture may fuel 2026 rebound: Bitwise CIO

Crypto tokens are becoming increasingly efficient at capturing value, thanks in part to new regulations and upgrades, which could send prices surging in 2026, according to Bitwise chief investment officer Matt Hougan.

Hougan said in an X post on Saturday that in the chaos of the current market pullback, big news is getting lost, such as the level of value capture in digital assets trending upward.

“Most of today’s tokens were created in a regulatory era where value capture was risky; as a result, they defaulted to vague governance-style design choices,” he said.

“Under the new regulatory climate, that’s being unwound. I think we’ll start to feel this effect in 2026.”

Uniswap rallied after investor-friendly proposal

Uniswap (UNI), the native token behind the crypto protocol of the same name, surged earlier this month after the Uniswap Foundation and Uniswap Labs introduced a proposal to make the token more attractive as an investment.

Among the ideas being floated were a protocol-level fee mechanism to burn the tokens and building a Protocol Fee Discount Auctions system to increase liquidity provider returns.

Hougan said this is one of the most obvious examples of a token trying to capture value, and predicts that if the proposal passes, it could send UNI into the top ten by market cap in the future.

“The big knock on UNI has always been that it is a governance token. Uniswap is great, but activity on Uniswap didn’t benefit UNI tokenholders,” he said.

“Except now, UNI is considering flipping the fee switch. If the vote goes through, ~16% of trading fees will be used to burn UNI. I suspect this will push UNI toward being a top 10 token by market cap over time.”

Fusaka upgrade could see Ether lead rebound

Hougan also pointed to Ethereum’s Fusako upgrade as a catalyst that could “significantly increase token value capture.”

The Fusako upgrade mainnet launch is expected in December and will roll out upgrades to Ethereum’s execution layer and improvements to staking economics, among other upgrades.

“I suspect the market will start to orient around the positive impacts of Fusaka soon, particularly if it’s delivered Dec. 3 as expected. It’s an under-appreciated catalyst and one reason ETH could lead the crypto rebound,” Hougan said.