Liz Truss to face wretched week at Tory Party conference after mini-budget turmoil
Liz Truss is set to face a wretched week at the Tory Party conference after the disastrous reaction to Kwasi Kwarteng’s tax-cutting mini-budget.
The prime minister arrived in Birmingham on Saturday looking buoyant just hours before yet another injurious poll was released.
Hopes to be greeted by an adoring host of members have likely been dashed as some Tory MPs have questioned whether she will still be PM by the end of the year.
Nearly two dozen senior Conservative MPs have told Sky News they will not be attending after a tumultuous week that saw the pound hit a record low against the dollar and the Bank of England stepping in to prevent a pension funds collapse.
Ms Truss and her chancellor have doubled down in defending the £45bn of unfunded tax cuts that caused the economic turmoil, insisting it is necessary for growth.
The PM on Saturday said “rough decisions” were needed to boost growth and told the Sunday Telegraph she wants to “bring people with me on this journey”, insisting the “status quo isn’t an option”.
There are concerns the situation could get worse if the Bank of England is forced to hike interest rates to shore up the currency and keep inflation down.
A series of polls taken this week have shown a massive drop in popularity for the Tories and a record high for Labour following the mini-budget.
The latest poll from Opinium showed 55% of voters disapprove of both Ms Truss and Mr Kwarteng while Labour enjoyed a 19-point boost.
And 75% of all voters think they have lost control of the economy. When it comes to Tory voters, 71% think they do not have the economy under control versus just 24% who believe they do.
Many of Ms Truss’ own MPs have been talking out against her economic plan and Tory grandee Michael Gove, who backed Rishi Sunak, is expected to demand the party changes course during eight official appearances at the conference.
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Truss arrives at Tory conference
Senior backbenchers told The Independent the PM has a matter of days to row back on tax and welfare cuts or a rebellion could see her removed from Downing Street by Christmas.
There are reports of letters going in to the chair of the backbench 1922 Committee from MPs calling for a vote of no confidence.
Under current rules she is safe from a leadership challenge for a year after her election but the 1922 executive could change the rules if demand from Tory MPs is overwhelming.
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News on Saturday that Mr Kwarteng held a champagne reception with hedge fund managers just hours after the mini-budget was met with incredulity.
A source close to the chancellor denied he had provided guests with privileged information and said: “The government’s ambitions on lowering the tax burden are hardly a state secret.”
Truss needs to reset if she is to survive
Liz Truss starts her first Conservative Party conference less than a month – 25 days – since becoming leader, all the more notable given 11 of those days were spent in official mourning for the death of the Queen.
Also notable in that time is that the government spent upwards of £160 billion, Sterling collapsed to the lowest level since 1985, UK is now at threat of downgrade by credit rating agencies, swathes of cheaper mortgages have disappeared from the market, the Bank of England has done an emergency intervention to save pension funds and the Tories have recorded their worst opinion poll rating for YouGov since the company was founded in the late 90s.
Everybody – Tory MPs, institutions, voters looking at the economic turmoil to come – is anxious.
Ms Truss’s most important job is to show the county and her party whose side she is on.
Which is why the story tonight from the Sunday Times about her Chancellor Kwasi Kwarteng is so damaging.
On the day of the mini-budget, where he cut taxes for the richest, he went to a hedge fund party hosted by Andrew Law, Tory donor. 30 donors and financiers were there as he went round the top.
I’ve spoken to someone who has been at events such as these recently. They are amazed at just how casual Kwarteng is about spraying bold, potentially market moving views around such events, on topics such as the governor of the Bank of England Andrew Bailey.
Some in the City worry such talk undermines the credibility of the UK’s independent financial institutions, after the watchdog OBR and Treasury expertise already came in the firing line. Careless talk costs credibility.
Another difficult moment, one of just many.
Many Tories think Liz Truss now needs to reset with her party this week to survive.
‘The worst is yet to come’
Opposition parties used the opening of the Conservative conference to hit out at the Tories, with the SNP saying the worst is yet to come.
The SNP’s Westminster leader Ian Blackford said: “It’s been a disastrous first few weeks of her premiership but if the rhetoric from the Tories is to be believed, the worst of this Truss government is yet to come.”
His comments came after a key ally of Ms Truss’, Levelling Up Secretary Simon Clarke, signalled ministers are looking to shrink the overall size of the state alongside falling tax cuts.
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Truss acknowledges ‘some disruption’
And Sir Keir Starmer said it was “unacceptable” voters nor MPs had had any say on the new economic measures announced.
“The economy is not a laboratory experiment for the maddest scientists of the Conservative Party,” the Labour leader wrote in the Sunday Telegraph.
“The pain about to be inflicted on the whole country is the result of a prime minister and a chancellor wedded to a disastrous ideology.”
The conference will open today with a tribute to the Queen but it is Mr Kwarteng’s speech on Monday and Ms Truss’ closing speech on Wednesday that will command the political attention.
The twin threats of climate change and Russian malign activity in the Arctic must be taken “deadly seriously,” David Lammy has warned.
Sky News joined him on the furthest reaching tour of the Arctic by a British foreign secretary.
We travelled to Svalbard – a Norwegian archipelago that is the most northern settled land on Earth, 400 miles from the North Pole.
It is at the heart of an Arctic region facing growing geopolitical tension and feeling the brunt of climate change.
Mr Lammy told us the geopolitics of the region must be taken “deadly seriously” due to climate change and “the threats we’re seeing from Russia”.
We witnessed the direct impact of climate change along Svalbard’s coastline and inland waterways. There is less ice, we were told, compared to the past.
David Lammy and Norway’s Foreign Minister Barth Eide view the melting Blomstrandbreen glacier. Pic: PA
The melting ice is opening up the Arctic and allowing Russia more freedom to manoeuvre.
“We do see Russia’s shadow fleet using these waters,” Mr Lammy said. “We do see increased activity from submarines with nuclear capability under our waters and we do see hybrid sabotage of undersea cables at this time.”
In Tromso, further south, the foreign secretary was briefed by Norwegian military commanders.
The foreign secretary visiting SvalSat, a satellite ground station which monitors climate in Svalbard. Pic: PA
Vice Admiral Rune Andersen, the Chief of Norwegian Joint Headquarters, told Sky News the Russian threat was explicit.
“Russia has stated that they are in confrontation with the West and are utilising a lot of hybrid methods to undermine Western security,” he said.
But it’s not just Vladimir Putin they’re worried about. Norwegian observers are concerned by US president Donald Trump’s strange relationship with the Russian leader too.
Norwegian observers are concerned about the Russian leader – and Trump being ‘too soft’ on him. Pic: AP
Karsten Friis, a Norwegian defence and security analyst, told Sky News: “If he’s too soft on Putin, if he is kind of normalising relations with Russia, I wouldn’t be surprised.
“I would expect Russia to push us, to test us, to push borders, to see what we can do as Europeans.”
Changes in the Arctic mean new challenges for the NATO military alliance – including stepping up activity to deter threats, most of all from Russia.
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In Iceland, we toured a NATO airbase with the foreign secretary.
There, he said maintaining robust presence in the Arctic was essential for western security.
“Let’s be clear, in this challenging geopolitical moment the high north and the Arctic is a heavily contested arena and we should be under no doubt that NATO and the UK need to protect it for our own national security.”
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This is also about distracting Russia, drawing away resources that could have been used in the war in Ukraine and deterring it in the future.
Because the more Arctic opens up, the more this once pristine wilderness is becoming the arena of national rivalry and potentially conflict.
World
‘What did they do to be burned and bombed?’: Charity calls on UK to offer Gaza children life-saving treatment
A British charity has written to the prime minister and foreign secretary, urging them to allow seriously ill children from Gaza into the UK to receive life-saving medical treatment.
Warning: This article contains images readers may find distressing
The co-founder of Project Pure Hope told Sky News it was way past the time for words.
“Now, we need action,” Omar Dinn said.
He’s identified two children inside Gaza who urgently need help and is appealing to the UK government to issue visas as a matter of urgency.
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Britain has taken only two patients from Gaza for medical treatment in 20 months of Israeli bombardment.
Children are among the bulk of the casualties in Gaza
“Most of the people affected by this catastrophe that’s unfolding in Gaza are children,” he continued. “And children are the most vulnerable.
“They have nothing to do with the politics, and we really just need to see them for what they are.
“They are children, just like my children, just like everybody’s children in this country – and we have the ability to help them.”
Sky News has been sent video blogs from British surgeons working in Gaza right now which show the conditions and difficulties they’re working under.
They prepare for potential immediate evacuation whilst facing long lists, mainly of children, needing life-saving emergency treatment day after day.
Dr Victoria Rose is a British surgeon working in southern Gaza’s last remaining hospital
Dr Victoria Rose told us: “Every time I come, I say it’s really bad, but this is on a completely different scale now. It’s mass casualties. It’s utter carnage.
“We are incapable of getting through this volume. We don’t have the personnel. We don’t have the medical supplies. And we really don’t have the facilities.
“We are the last standing hospital in the south of Gaza. We really are on our knees now.”
One of her patients is three-year-old Hatem, who was badly burned when an Israeli airstrike hit the family apartment.
Karam, aged one, has a birth defect that could be easily fixed with surgery
His pregnant mother and father were both killed, leaving him an orphan. He has 35 percent burns on his small body.
“It’s a massive burn for a little guy like this,” Dr Rose says. “He’s so adorable. His eyelids are burnt. His hands are burnt. His feet are burnt.”
Hatem’s grandfather barely leaves his hospital bedside. Hatem Senior told us: “What did these children do wrong to suffer such injuries? To be burned and bombed? We ask God to grant them healing.”
Hatem Senior
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The second child identified by the charity is Karam, who, aged one, is trying to survive in a tent in deeply unhygienic surroundings with a protruding intestine.
He’s suffering from a birth defect called Hirschsprung disease, which could be easily operated on with the right skills and equipment – unavailable to him in Gaza right now.
Read more:
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Karam, aged one, has a birth defect that could be easily fixed with surgery
Karam’s mother Manal told our Gaza camera crew: “No matter how much I describe how much my son is suffering, I wouldn’t be able to describe it enough. I swear I am constantly crying.”
Children are among the bulk of casualties – some 16,000 have been killed, according to the latest figures from local health officials – and make up the majority of those being operated on, according to the British surgical team on the ground.
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