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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.

Politics live: Major U-turn after prominent Tories speak out

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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Pound up after tax U-turn

What are MPs saying?

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.

Grant Shapps speaking to the media ahead of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Monday October 3, 2022.
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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.

Read more:
First part of Truss’ reign is over – is there any way back from 45p tax rate U-turn?

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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.

Read more:
Has the government lost credibility?
Truss sticks by plan but admits mistakes
‘What a day!’ – Chancellor admits ‘tough time’

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.

Hours after his speech, it was revealed Mr Kwarteng will bring forward his medium-term financial statement from 23 November to this month, despite saying he would not earlier in the day.

Markets bounced back on Monday morning, but financial commentators cautioned that it was likely some respite only.

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‘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.

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‘Immediate action’ taken after blueprints of prisons in England and Wales leaked on dark web

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'Immediate action' taken after blueprints of prisons in England and Wales leaked on dark web

“Immediate action” is being taken after blueprints of jail layouts were shared online.

The maps detailing the layouts of prisons in England and Wales were leaked on the dark web over the past fortnight, according to The Times.

The detailed information is said to include the locations of cameras and sensors, prompting fears they could be used to smuggle drugs or weapons into prisons or help inmates plan escapes.

Security officials are now working to identify the source of the leak and who might benefit from the details.

The Ministry of Justice did not disclose which prisons were involved in the breach.

A government spokesperson said in a statement: “We are not going to comment on the specific detail of security matters of this kind, but we are aware of a breach of data to the prison estate and, like with all potential breaches, have taken immediate action to ensure prisons remain secure.”

The leak comes amid a chronic prison overcrowding crisis, which has led to early release schemes and the re-categorising of the security risks of some offenders to ease capacity pressures.

Justice Secretary Shabana Mahmood is launching a sentencing review in a bid to ease the crisis.

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Starmer says UK will ‘set out a path’ to raise defence spending to 2.5% in spring

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Starmer says UK will 'set out a path' to raise defence spending to 2.5% in spring

The UK will “set out a path” to lift defence spending to 2.5% of national income in the spring, the prime minister has said, finally offering a timeframe for an announcement on the long-awaited hike after mounting criticism.

Sir Keir Starmer gave the date during a phone call with Mark Rutte, the secretary general of NATO, in the wake of threats by Moscow to target UK and US military facilities following a decision by London and Washington to let Ukraine fire their missiles inside Russia.

There was no clarity though on when the 2.5% level will be achieved. The UK says it currently spends around 2.3% of GDP on defence.

Volodymyr Zelenskyy, Nato Secretary General Mark Rutte and  Keir Starmer, during a trilateral meeting in 10 Downing Street.
Pic: PA
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Ukraine leader Volodymyr Zelenskyy, Sir Keir Starmer and NATO boss Mark Rutte in October. Pic: PA

Ukraine war latest: Follow live updates

A spokeswoman for Downing Street said that the two men “began by discussing the situation in Ukraine and reiterated the importance of putting the country in the strongest possible position going into the winter”.

They also talked about the deployment of thousands of North Korean soldiers to fight alongside Russia.

“The prime minister underscored the need for all NATO countries to step up in support of our collective defence and updated on the government’s progress on the strategic defence review,” the spokeswoman said.

“His government would set out the path to 2.5% in the spring.”

The defence review will also be published in the spring.

Read more from Sky News:
Strike using UK-made Storm Shadow missiles ‘very successful’
Putin warns US and UK over ‘escalation of aggressive actions’

While a date for an announcement on 2.5% will be welcomed by the Ministry of Defence, analysts have long warned that such an increase is still well below the amount that is needed to rebuild the armed forces after decades of decline to meet growing global threats from Russia, an increasingly assertive China, North Korea and Iran.

They say the UK needs to be aiming to hit at least 3% – probably higher.

With Donald Trump returning to the White House, there will be significantly more pressure on the UK and other European NATO allies to accelerate increases in defence spending.

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Man shot dead and another critically injured in Birmingham shooting – as murder suspect arrested

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Man shot dead and another critically injured in Birmingham shooting - as murder suspect arrested

A man has been arrested on suspicion of murder after one man died and another was critically injured in a shooting in Birmingham.

Police were called to Rotton Park Road in Edgbaston, just before 11pm on Friday, to reports that two people had been shot.

One man, in his 20s, was found in a car but was pronounced dead at the scene.

Another man, in his 30s, was found injured at a bus stop, and was taken to hospital where he remains in a critical condition, West Midlands Police added.

Firearms officers arrested a man in his 30s on suspicion of murder just before 12.30am. He remains in custody.

Officers remain on the scene, with road closures in place. The force said reassurance patrols will also be taking place.

Detective Inspector Nick Barnes said: “This is a tragic incident, and we have worked through the night to understand exactly what happened.

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“We’ve already made good progress and arrested a suspect, but I still need to hear from anyone who was in the area that we’ve not already spoken to.

“This happened near the busy junction with City Road and it may be that you’ve got dashcam footage or mobile phone footage from the area just before 11pm.

“We really need to hear from you so that we can build as clear a picture as possible of what happened.”

Officers are urging anyone with information to get in contact, with anonymous tips also taken via Crimestoppers.

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