Foreign secretary fails to rule out U-turn on corporation tax
Liz Truss is considering a U-turn on her plan to cut corporation tax amid a growing rebellion on the Tory back benches, it is reported.
It comes after The Independent revealed that No 10 officials were looking again at the chancellor’s “mini-Budget” following turmoil in the markets.
According to reports, the prime minister is considering raising the levy but that it won’t go back to “all the way to 25 per cent”.
It comes amid another day of confusion at Westminster.
Less than an hour before the report was published the PM’s official spokesperson committed to the time frame of tax cuts set out in Kwasi Kwarteng’s Budget.
Earlier James Cleverly, the foreign secretary also said there would be no going back on the measures outlined in the government’s plan.
Watch: Kwarteng says he’s ‘100% not resigning’
Kwarteng: ‘I’m focused on delivering mini-Budget’
Amid reports that No 10 is considering a climb down on corporation tax, the chancellor insisted that “our position hasn’t changed”.
Speaking from Washington, where he is attending a meeting of the International Monetary Fund, Kwas Kwarteng added: “I will come up with the medium-term fiscal plan on October 31, as I said earlier in the week, and there will be more detail then.”
Asked if a corporation tax U-turn was on the cards, he said: “What I’m totally focused on is delivering on the mini-budget.”
Labour MP Christina Rees suspended after alleged bullying
Senior Labour MP Christina Rees has had the party whip suspended following reported allegations of bullying.
The Neath MP – who was shadow Welsh secretary under Jeremy Corbyn – will now sit in the House of Commons as an independent.
She is understood to have had her party membership administratively suspended while the complaint is investigated.
Full report:
Labour MP Christina Rees suspended after alleged bullying
Former shadow Welsh secretary ‘not aware’ of details of complaint
Kwasi Kwarteng says he is ‘absolutely 100%’ not resigning as chancellor
Kwasi Kwarteng has said he is “absolutely 100%” not resigning as chancellor following criticism of his budget.
Speaking on Thursday afternoon Mr Kwarteng downplayed talk of a U-turn on further measures, telling broadcasters on a trip to New York: “Our position hasn’t changed.”
Our policy correspondent Jon Stone has more on this story below:
Kwasi Kwarteng says he is ‘absolutely 100%’ not resigning as chancellor
Kwasi Kwarteng has said he is “absolutely 100%” not resigning as chancellor following criticism of his budget.
Welfare minister won’t answer questions on possible welfare cuts
Work and pensions secretary Chloe Smith refuse to answer questions about the prospect of benefit or public spending cuts at a Policy Exchange event, Adam Forrest, our politics correspondent, reports.
Asked if she could guarantee there wouldn’t be spending cuts at her department, Ms Smith said: “I’m not in the position to answer your question…as you know that will be a matter for the chancellor to announce in due course.”
Journalists were asked to keep questions “on the topic” of Ms Smith’s speech – getting people back into work.
The work and pensions secretary wants employers to take steps to made workers healthier amid concern over the level of long-term sickness across the UK.
Former Tory chancellor would back U-turn as IMF says ‘recalibration can be good’
Norman Lamont, Tory peer and former chancellor, said he would back a U-turn on the tax-cutting mini-Budget. “If they do reverse the budget, I would support them, but I personally think that’s rather unlikely,” he told the World at One.
Lord Lamont added: “Sometimes it’s said that politics is the art of the possible. I think it’s the art of choosing between the incredible and the utterly impossible.”
Meanwhile, the managing director of the International Monetary Fund (IMF) has said it is sometimes right for an economic “recalibration” when asked about the prospect of a U-turn from the Liz Truss government.
“If the evidence is that there is a need for recalibration it is right for governments to do so,” said Kristalina Georgieva when asked about the prospect of a reversal of the mini-Budget.
The IMF chief added: “Our message to everybody, not just the UK, is that at this time, fiscal policy should not undermine monetary policy … Don’t prolong the pain – make sure actions are coherent and consistent.”
No 10 dodges questions on lack of confidence in PM
Downing Street declined to say whether Liz Truss is concerned about a loss of confidence in her leadership after a bruising meeting with Tory backbenchers.
Asked whether she is worried, her official spokesman told reporters: “The prime minister’s sole focus is on ensuring the delivery of growth through the changes and reforms set out in the growth plan, and obviously on some of the ongoing challenges the war in Ukraine.”
Consumers should cut back on their energy use this winter, Ofgem chief says
Consumers should cut down on their electricity and gas use this winter, the chief of energy regulator Ofgem has said.
Jonathan Brearley told Energy UK’s london conference that “all of us could be thinking about how to reduce our energy use where possible”.
My colleague Holly Bancroft reports:
Consumers should cut back on their energy use this winter, Ofgem chief says
Consumers should cut down on their electricity and gas use this winter, the chief of energy regulator Ofgem has said.
Penny Mordaunt says her resting face ‘that of bulldog chewing a wasp’
Penny Mordaunt said her resting face was that of a “bulldog chewing a wasp” as she responded to accusations that she could not even “muster a nod” for Liz Truss during Prime Minister’s Questions.
Several social media users claimed her facial expression remained set throughout the session:
Penny Mordaunt says her resting face is ‘that of a bulldog chewing a wasp’
Labour claims Commons leader could not even ‘muster a nod’ during Liz Truss’s first PMQs since mini-Budget
PM ‘preparing corporation tax U-turn’ amid backbench rebellion
Liz Truss is considering a U-turn on her plan to cut corporation tax amid a growing rebellion on the government back benches, it has been reported.
The prime minister is said to be considering raising the levy but that it won’t go back to 25 per cent.
It comes after The Independent revealed No 10 officials were looking again at the chancellor’s “mini-Budget” following turmoil in the markets.
Full report below:
Expectations grow of imminent Truss U-turn on corporation tax
Rebuke for Kwasi Kwarteng’s budget from IMF boss in New York
