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.
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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2:16
Pound up after tax U-turn
What are MPs saying?
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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.
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.
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4:01
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.
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.
Markets bounced back on Monday morning, but financial commentators cautioned that it was likely some respite only.
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1:45
‘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.
Twelve British soldiers were injured in a major traffic pile-up in Estonia, close to the border with Russia, local media have reported.
Eight of the troops – part of a major NATO mission to deter Russian aggression – were airlifted back to the UK for hospital treatment on Sunday after the incident, which happened in snowy conditions on Friday, it is understood.
Five of these personnel have since been discharged with three still being kept in the military wing of the Queen Elizabeth Hospital in Birmingham.
The crash happened at an intersection at around 5pm on Friday when the troops were travelling in three minibuses back to their base at Tapa.
Two civilian cars, driven by Estonians, are thought to have collided, triggering a chain reaction, with four other vehicles – comprising the three army Toyota minibuses and a third civilian car – piling into each other.
According to local media reports, the cars that initially collided were a Volvo S80, driven by a 37-year-old woman and a BMW 530D, driven by a 62-year-old woman.
The Estonian Postimees news site reported that 12 British soldiers were injured as well as five civilians. They were all taken to hospital by ambulance.
The British troops are serving in Estonia as part of Operation Cabrit, the UK’s contribution to NATO’s “enhanced forward presence” mission, which spans nations across the alliance’s eastern flank and is designed to deter attacks from Russia.
Around 900 British troops are deployed in Estonia, including a unit of Challenger 2 tanks.
A spokesperson for the Ministry of Defence said: “Several British soldiers deployed on Operation CABRIT in Estonia were injured in a road traffic incident last Friday, 22nd November.
“Following hospital treatment in Estonia, eight personnel were flown back to the UK on an RAF C-17 for further treatment.
“Five have since been discharged and three are being cared for at the Royal Centre for Defence Medicine, Queen Elizabeth Hospital Birmingham. We wish them all a speedy recovery.”
Defence Secretary John Healey said: “Following the road traffic incident involving British personnel in Estonia, my thoughts are with all those affected, and I wish those injured a full, swift recovery.
“Thanks to the Royal Centre for Defence Medicine at Queen Elizabeth Hospital Birmingham for their excellent care.”
Two Britons are believed to be among more than a dozen people missing after a boat sank in the Red Sea off the Egyptian coast.
The yacht, called Sea Story, had 44 people on board, including 31 tourists of varying nationalities and 13 crew.
Authorities are searching for 16 people, including 12 foreign nationals and four Egyptians, the governor of the Red Sea region said, adding that 28 other people had been rescued.
Preliminary reports suggested a sudden large wave struck the vessel, capsizing it within about five minutes, governor Amr Hanafi said.
“Some passengers were in their cabins, which is why they were unable to escape,” he added in a statement.
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0:49
Passengers rescued from sunken tourist boat
The people who were rescued only suffered minor injuries such as bruises and scrapes with none needing hospital treatment.
A Foreign, Commonwealth and Development office spokesperson said: “We are providing consular support to a number of British nationals and their families following an incident in Egypt and are in contact with the local authorities.”
The foreign nationals aboard the 34-metre-long vessel, owned by an Egyptian national, included Americans, Belgians, British, Chinese, Finns, Germans, Irish, Poles, Slovakians, Spanish, and Swiss.
Sea Story had no technical problems, obtained all required permits before the trip, and was last checked for naval safety in March, according to officials.
The four-deck, wooden-hulled motor yacht was part of a multi-day diving trip when it went down near the coastal town of Marsa Alam following warnings about rough weather.
Officials said a distress call was received at 5.30am local time on Monday.
The boat had left Port Ghalib in Marsa Alam on Sunday and was scheduled to reach its destination of Hurghada Marina on 29 November.
Some survivors had been airlifted to safety on a helicopter, officials said.
The firm that operates the yacht, Dive Pro Liveaboard in Hurghada, said it has no information on the matter.
According to its maker’s website, the Sea Story was built in 2022.
A motion has been filed to drop the charges against Donald Trump of plotting to overturn the 2020 US presidential election result.
Mr Trump was first indicted on four felonies in August 2023: Conspiracy to defraud the United States, conspiracy to obstruct an official proceeding, obstruction of and an attempt to obstruct an official proceeding, and conspiracy against rights.
The president-elect pleaded not guilty to all charges and the case was then put on hold for months as Mr Trump’s team argued he could not be prosecuted.
On Monday, prosecutors working with special counsel Jack Smith, who had led the investigation, asked a federal judge to dismiss the case over long-standing US justice department policy, dating back to the 1970s, that presidents cannot be prosecuted while in office.
It marks the end of the department’s landmark effort to hold Mr Trump accountable for the attack on the US Capitol on 6 January 2021 when thousands of Trump supporters assaulted police, broke through barricades, and swarmed the Capitol in a bid to prevent the US Congress from certifying Joe Biden’s 2020 election victory.
Trump plays blinder as accusers forced to turn blind eye over Capitol riots
In winning the White House, he avoids the so-called ‘big house’.
Whether or not prison was a prospect awaiting Donald Trump is a moot point now, as he now enjoys the protection of the presidency.
The delay strategy that he pursued through a grinding court process knocked his federal prosecution past the election date and when his numbers came up, he wasn’t going down.
Politically, and legally, he has played a blinder.
Mr Smith’s team had been assessing how to wind down both the election interference case and the separate classified documents case in the wake of Mr Trump’s election victory over vice president Kamala Harris earlier this month, effectively killing any chance of success for the case.
In court papers, prosecutors said “the [US] Constitution requires that this case be dismissed before the defendant is inaugurated”.
They said the ban [on prosecuting sitting presidents] “is categorical and does not turn on the gravity of the crimes charged, the strength of the government’s proof, or the merits of the prosecution, which the government stands fully behind”.
Mr Trump, who has said he would sack Mr Smith as soon as he takes office in January, and promised to pardon some convicted rioters, has long dismissed both the 2020 election interference case and the separate classified documents case as politically motivated.
He was accused of illegally keeping classified papers after leaving office in 2021, some of which were allegedly found in his Mar-a-Lago home in Florida.
The election interference case stalled after the US Supreme Court ruled in July that former presidents have broad immunity from prosecution, which Mr Trump’s lawyers exploited to demand the charges against him be dismissed.
Mr Smith’s request to drop the case still needs to be approved by US District Judge Tanya Chutkan.
At least 1,500 cases have been brought against those accused of trying to overthrow the election result on 6 January 2021, resulting in more than 1,100 convictions, the Associated Press said.
More than 950 defendants have been sentenced and 600 of them jailed for terms ranging from a few days to 22 years.