Liz Truss is facing cabinet unrest over her plans for brutal public spending cuts across all departments after the disastrous mini-budget put major pledges at risk, including the pensions triple lock.
The prime minister held a cabinet meeting yesterday in which she warned ministers that difficult decisions” lay ahead.
The chancellor, Jeremy Hunt, told them everything is on the table” as he strives to find tens of billions of savings after ditching Truss’s economic plan. Health, education and welfare are among those departments expected to be hit.
One Whitehall official said that departments were already preparing for cuts significantly higher” than previously planned, with Hunt’s tax U-turns estimated to raise 32bn, leaving a 38bn hole in the public finances. Truss remains in a precarious position, having in effect handed power to Hunt, with a YouGov poll showing that half of Conservative members think she should resign. A significant majority would also support a coronation of a new prime minister by Tory MPs.
Senior ministers are expected to capitalise on Truss’s weakness and resist deep cuts, with the defence secretary, Ben Wallace, indicating he would be prepared to quit his job if she did not honour her campaign pledge to spend 3% of GDP on defence by 2030.
She faces a humiliating prime minister’s questions against Keir Starmer today after one of the most dramatic U-turns in modern times, with Downing Street aides concerned that rebel Tory MPs could seize the moment to publicly call for her to go.
This story is from the October 19, 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 19, 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.
