Liz Truss's leadership was in fresh peril yesterday with calls growing among senior Conservatives to reverse more proposed tax cuts and MPs accusing her of "trashing" Conservative values.
As the cost of government borrowing soared further, Truss used her second PMQs appearance to "absolutely" rule out further spending cuts, instead allowing borrowing to rise over the next few years.
The remarks failed to calm the markets. The price of 20-year UK bonds hit new lows yesterday afternoon after the Bank of England insisted its £65bn package of support for the bond market would end tomorrow.
On the day of the prime minister's first parliamentary showdown since Conservative conference, MPs renewed serious conversations about the prospect of replacing her.
Truss has pledged to increase engagement with restive MPs with a series of round-table meetings over the next week. No 10 has publicly denied there is any new examination of the tax cuts announced at the mini-budget, including tweaks to the timing of the income tax cut or a re-evaluation of the cancelled corporation tax rise.
The former chancellor Sajid Javid and the chair of the Treasury select committee, Mel Stride, both voiced fears about the current approach and suggested the Treasury would need to look again at the measures announced by Kwasi Kwarteng.
At a meeting of the backbench 1922 Committee, MPs described her performance as "just appalling" and raised serious concerns about mortgage rates and the state of the polls showing a hefty Labour lead.
This story is from the October 13, 2022 edition of The Guardian.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the October 13, 2022 edition of The Guardian.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
The Filter Cast-iron alternatives to Le Creuset for less
Le Creuset's colourful pans have long topped the wishlists of amateur and professional cooks.
Money hacks How to find a pet-sitter you can trust
Unless you have family, a friend or a neighbour who can care for your pet when you're away, you'll need to find a pet-sitter you can trust.
Pensions An A to Z of how to save for your retirement
Everything you need to know to plan for your future and make the most of your finances. Rupert Jones and Hilary Osborne report
'A fork in the road' AI's bid to help on laundry days at Europe's tech summit
This year's Web Summit in Lisbon was all about artificial intelligence and a robot sorting laundry.
Brexit So how could Labour improve EU ties for the sake of growth?
The Bank of England governor, Andrew Bailey, said this week that Brexit had undermined the UK's economy, and urged the government to improve relations with the EU for the sake of growth.
Aviation Flying taxis: destined never to take off?
In a dreary November day in the Cotswolds, the VX4 - a cross between a plane and a helicopter - rose from an airport runway, hovered a few feet off the ground and set back down.
Property firm back in profit as workers return to offices
One of Britain's biggest property developers has provided further evidence of the return to office working, saying occupancy in its central London offices is at an all-time high and the value of its portfolio has returned to growth.
Analysis Summer of dark warnings from the Treasury may have cast a shadow on growth
It was hardly surprising that the chancellor, Rachel Reeves, declared herself \"not satisfied\" with the news that the UK's GDP expanded by a measly 0.1% in the three months to September.
Contracting GDP adds to German woes as general election looms
Germany's looming general election will be fought against the backdrop of a stagnating economy, the European Commission has forecast, with GDP expected to have contracted in 2024.
UK economy slows amid jitters over Labour budget
The UK economy slowed to a near-standstill in the third quarter as uncertainty around Labour's first budget and high interest rates weighed on business and consumer spending.
