Truss battling to stay in power after sacking her chancellor and U-turning on tax pledge - Sky News

The prime minister is fighting for her political survival after ditching a major chunk of the mini-budget and sacking her chancellor and close ally Kwasi Kwarteng.

This story is now outdated - for the latest, please read here:
Jeremy Hunt: There were mistakes in mini-budget - and some taxes will go up

But it is unclear whether Liz Truss's gamble to stay in power will pay off, with financial markets remaining jittery and reports of a number of Tory MPs plotting to replace her.

After a tumultuous three weeks for the financial markets in the wake of Mr Kwarteng's £45bn mini-budget tax giveaway, the PM acknowledged that "the way we are delivering our mission right now has to change".

She replaced her "great friend" Mr Kwarteng" with former foreign secretary Jeremy Hunt, who backed her rival Rishi Sunak in the Tory leadership contest.

While his appointment was welcomed by some Tory MPs as "an experienced pair of hands", others questioned why Mr Kwarteng was the one who had to go when he was pursuing policies Ms Truss espoused in her leadership campaign.

Image: Liz Truss appoints Jeremy Hunt as chancellor. Pic: Andrew Parsons / No 10 Downing Street

Politics latest: Tory MPs turn on Truss as PM scrambles to save job

More on Jeremy Hunt

Related Topics:

At a hastily-arranged news conference in Downing Street on Friday, Ms Truss dismissed calls for her resignation, saying she was "absolutely determined to see through what I have promised".

She announced she was abandoning Mr Kwarteng's commitment to drop the planned rise in corporation tax from 19% to 25%, saving the Exchequer £18bn a year.

Advertisement

She also suggested a new squeeze on public spending which would "grow less rapidly than previously planned".

Please use Chrome browser for a more accessible video player

2:25

Do voters have confidence in Truss?

Ms Truss said it was a "down payment" on the medium-term fiscal plan on 31 October, when Mr Hunt will now set out how he intends to get the public finances back on track. It suggests further measures to plug the estimated £60bn void created by the mini-budget will have to follow.

"It is clear that parts of our mini-budget went further and faster than markets were expecting, so the way we are delivering our mission right now has to change," she said.

"We will do whatever is necessary to ensure debt is falling as a share of the economy in the medium-term."

Read more:
Be in no doubt, the PM is in deep trouble, writes Sky's Beth Rigby
Having sealed her chancellor's fate, the markets could seal the PM's fate

Please use Chrome browser for a more accessible video player

2:26

Analysing market reaction to latest U-turn

Voters' response to her U-turn appeared reasonably favourable, with a snap poll by YouGov finding 49% of voters said Ms Truss was right to sack her chancellor.

Cabinet ministers also remained publicly loyal, tweeting their support for Ms Truss and her new chancellor.

But other Conservatives appeared to be divided over Ms Truss's future as prime minister.

Heated messages were shared in Conservative Party WhatsApp groups after her news conference, with a screenshot sent to Sky News' deputy political editor Sam Coates showing Crispin Blunt calling for Rishi Sunak and Penny Mordaunt to take over.

"Step forward Rishi and Penny, with our support and encouragement in the interests of us all," it read.

Please use Chrome browser for a more accessible video player

3:03

Kwarteng sacked after 38 days

There have also been multiple reports of Tory MPs and Conservative grandees plotting moves to force Ms Truss from Downing Street.

A source apparently close to Mr Kwarteng suggested that Ms Truss may only have bought herself a few more weeks in office, according to The Times.

Former leader Lord Hague warned that Ms Truss's premiership "hangs by a thread", while Conservative former chancellor Lord Hammond said the events of the past weeks had wrecked the party's reputation for fiscal discipline.

Click to subscribe to the Sky News Daily wherever you get your podcasts

During her news conference Ms Truss said she was "incredibly sorry" to lose Mr Kwarteng but insisted Mr Hunt shared her vision of a "high-growth, low-tax economy".

But Mr Hunt's appointment signals a major shift in policy direction - he is a more centrist figure than either Mr Kwarteng or Ms Truss and is unlikely to share their ideological free market commitment to tax cuts.

In July, Mr Hunt told Sky News cutting corporation tax was "not sexy, but necessary" as he backed plans to reverse the planned rises.

To register your interest and share your story, please email TheGreatDebate@sky.uk

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMifGh0dHBzOi8vbmV3cy5za3kuY29tL3N0b3J5L3RydXNzLWJhdHRsaW5nLXRvLXN0YXktaW4tcG93ZXItYWZ0ZXItc2Fja2luZy1oZXItY2hhbmNlbGxvci1hbmQtdS10dXJuaW5nLW9uLXRheC1wbGVkZ2UtMTI3MjA2NzPSAYABaHR0cHM6Ly9uZXdzLnNreS5jb20vc3RvcnkvYW1wL3RydXNzLWJhdHRsaW5nLXRvLXN0YXktaW4tcG93ZXItYWZ0ZXItc2Fja2luZy1oZXItY2hhbmNlbGxvci1hbmQtdS10dXJuaW5nLW9uLXRheC1wbGVkZ2UtMTI3MjA2NzM?oc=5

2022-10-15 03:33:45Z
1607505298

Leah Croucher: Suspect in teen murder case is dead - BBC

Thames Valley Police

A sex offender who killed himself while on-the-run from police is suspected of murdering teenager Leah Croucher.

This week, unidentified human remains and personal items belonging to the 19-year-old were found in the loft of a house in Milton Keynes.

Thames Valley Police said Neil Maxwell, 49, who was found dead two months after Miss Croucher's disappearance, had a history of offences against women.

It said he was the only person to have keys to the house when she vanished.

Det Ch Supt Ian Hunter said: "If Maxwell were alive today, we would be seeking his arrest in connection with this investigation, so he could be interviewed under caution to provide his account."

Thames Valley Police

The teenager was last seen on CCTV in the Buckinghamshire city on Friday, 15 February 2019.

Police began searching the house on Loxbeare Drive in Furzton on Monday evening, following a tip-off phone call from a member of the public.

• The quiet teenager who vanished on her way to work

In the loft they discovered human remains and a rucksack containing personal items belonging to Miss Croucher.

A post-mortem examination is taking place on Friday and formal identification of the remains and forensic analysis of the property could "take some time", police said.

The property is less than half-a-mile (0.8km) from where Miss Croucher was last seen on Buzzacott Lane, Furzton, walking in the direction of Loxbeare Drive and Chaffron Way.

PA Media

At a press conference on Friday, Det Ch Supt Hunter said: "Sadly, the call from the member of the public that we received on Monday was the first occasion that information was made available to enable the investigation team to provide any link between that address in Loxbeare Drive and Leah."

He confirmed that number two Loxbeare Drive, where the remains were discovered, was visited on at least two occasions during door-to-door inquiries in the search for the teenager, but there was no response.

"Therefore, we dropped a leaflet through the letterbox, requesting a call back if the occupants of the property had any information," he said.

Since Monday, the force said it discovered the house was owned by someone who lived overseas who rarely visited the UK and was not in the UK at the time Miss Croucher went missing. It said the house was unoccupied when officers attended.

The force said it also learned this week that during the time of the disappearance, Neil Maxwell was the only person to have keys to the property.

He had been employed by the home owner to carry out maintenance at the house. He was found dead in Milton Keynes on 20 April 2019, having taken his own life.

Mr Hunter said the person who contacted the force on Monday was doing some other work at the address and "informed us of some concerns that led to the call to police and further investigations".

PA Media

He said the suspect - who had previous convictions for sexual offences against women - had keys to the home since November 2018 and was wanted in connection with a sexual assault in Newport Pagnell in the same month.

Officers first attempted to arrest him in connection with the offence on 30 November 2018, at an address in central Milton Keynes, but he was not there, he said.

Thames Valley Police shared his name with other forces on the Police National Computer in December 2018 and attempted to arrest him 18 times at addresses across the UK.

The force said it would keep "an open mind" as the investigation continued and would gather more evidence to establish what happened.

"This may or may not implicate or exonerate Maxwell or any other persons from the investigation," police said.

However, he was the only suspect at this stage, they added.

PA Media

On Thursday evening, Miss Croucher's parents and her sister Jade visited the house and left flowers with a message, saying: "We will cherish your memories forever."

Leah Croucher: A timeline

Thames Valley Police

• 14 February 2019: Leah Croucher is last seen by her parents at the family home in Quantock Crescent, Milton Keynes at 22:00 GMT
• 15 February 2019: CCTV footage shows her walking down Buzzacott Lane in Furzton at 08:16. She was thought to be going to her job at a finance company, but she never arrived
• April 2019: Thames Valley Police says three people had reported possible sightings of Miss Croucher near Furzton Lake between 09:30 and 11:15, on the day she went missing
• October 2019: A two-week search by Thames Valley Police of a lake and surrounding area at the Blue Lagoon nature reserve in Bletchley finds nothing
• 15 February 2021: On the second anniversary of her disappearance, police say there are "no significant leads" and the case is "bewildering and frustrating"
• 12 October 2022: Police open a murder investigation after unidentified human remains and a rucksack containing personal possessions belonging to Leah are found in the loft of a home on Loxbeare Drive in Furzton
• 14 October 2022: Neil Maxwell, a deceased sex offender, is named as the prime suspect in the case by police

Find BBC News: East of England on Facebook, Instagram and Twitter. If you have a story suggestion email eastofenglandnews@bbc.co.uk

Related Internet Links

• Thames Valley Police

The BBC is not responsible for the content of external sites.

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLWVuZ2xhbmQtYmVkcy1idWNrcy1oZXJ0cy02MzI1OTA0NNIBQ2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLWVuZ2xhbmQtYmVkcy1idWNrcy1oZXJ0cy02MzI1OTA0NC5hbXA?oc=5

2022-10-14 20:12:37Z
1594094229

Liz Truss insists she won't resign after making Jeremy Hunt chancellor - The Times

Liz Truss has vowed to carry on as prime minister after scrapping a key campaign pledge not to raise corporation tax and sacking her chancellor.

She replaced Kwasi Kwarteng, her long-term ally and friend, with Jeremy Hunt, the former cabinet minister who ran against her in the summer’s leadership race and eventually supported Rishi Sunak.

But in a televised press conference this afternoon, she insisted: “The mission remains the same.”

Jeremy Hunt leaves No 10 after his first meeting as chancellor. He was informed of his new role by phone

TIMES PHOTOGRAPHER RICHARD POHLE

Liz Truss holds a press conference as Jeremy Hunt becomes chancellor

Truss confirmed that her plan to freeze corporation tax would not go ahead and it would rise to 25 per cent next year, as was originally planned by Sunak. She said this would raise £18 billion per year.

She told a Downing Street press conference lasting just over eight minutes: “It is clear that parts

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMicGh0dHBzOi8vd3d3LnRoZXRpbWVzLmNvLnVrL2FydGljbGUvcG9saXRpY3MtbGF0ZXN0LXRydXNzLWFuZC1rd2FydGVuZy1zZXQtdG8tZGl0Y2gtY29ycG9yYXRpb24tdGF4LWN1dC1iMnpjZ3RjZDLSAQA?oc=5

2022-10-14 17:25:00Z
1607505298

Leah Croucher: Suspect in teen murder case is dead - BBC

Thames Valley Police

A sex offender who killed himself while on-the-run from police is suspected of murdering teenager Leah Croucher.

This week, unidentified human remains and personal items belonging to the 19-year-old were found in the loft of a house in Milton Keynes.

Thames Valley Police said Neil Maxwell, 49, who was found dead two months after Miss Croucher's disappearance, had a history of offences against women.

It said he was the only person to have keys to the house when she vanished.

Det Ch Supt Ian Hunter said: "If Maxwell were alive today, we would be seeking his arrest in connection with this investigation, so he could be interviewed under caution to provide his account."

Thames Valley Police

The teenager was last seen on CCTV in the Buckinghamshire city on Friday, 15 February 2019.

Police began searching the house on Loxbeare Drive in Furzton on Monday evening, following a tip-off phone call from a member of the public.

• The quiet teenager who vanished on her way to work

In the loft they discovered human remains and a rucksack containing personal items belonging to Miss Croucher.

A post-mortem examination is taking place on Friday and formal identification of the remains and forensic analysis of the property could "take some time", police said.

The property is less than half-a-mile (0.8km) from where Miss Croucher was last seen on Buzzacott Lane, Furzton, walking in the direction of Loxbeare Drive and Chaffron Way.

PA Media

At a press conference on Friday, Det Ch Supt Hunter said: "Sadly, the call from the member of the public that we received on Monday was the first occasion that information was made available to enable the investigation team to provide any link between that address in Loxbeare Drive and Leah."

He confirmed that number two Loxbeare Drive, where the remains were discovered, was visited on at least two occasions during door-to-door inquiries in the search for the teenager, but there was no response.

"Therefore, we dropped a leaflet through the letterbox, requesting a call back if the occupants of the property had any information," he said.

Since Monday, the force said it discovered the house was owned by someone who lived overseas who rarely visited the UK and was not in the UK at the time Miss Croucher went missing. It said the house was unoccupied when officers attended.

The force said it also learned this week that during the time of the disappearance, Neil Maxwell was the only person to have keys to the property.

He had been employed by the home owner to carry out maintenance at the house. He was found dead on 20 April 2019, having taken his own life.

Mr Hunter said the person who contacted the force on Monday was doing some other work at the address and "informed us of some concerns that led to the call to police and further investigations".

PA Media

He said the suspect - who had previous convictions for sexual offences against women - had keys to the home since November 2018 and was wanted in connection with a sexual assault in Newport Pagnell in the same month.

Officers first attempted to arrest him in connection with the offence on 30 November 2018, at an address in central Milton Keynes, but he was not there, he said.

Thames Valley Police shared his name with other forces on the Police National Computer in December 2018 and attempted to arrest him 18 times at addresses across the UK.

The force said it would keep "an open mind" as the investigation continued and would gather more evidence to establish what happened.

"This may or may not implicate or exonerate Maxwell or any other persons from the investigation," police said.

However, he was the only suspect at this stage, they added.

PA Media

On Thursday evening, Miss Croucher's parents and her sister Jade visited the house and left flowers with a message, saying: "We will cherish your memories forever."

Leah Croucher: A timeline

Thames Valley Police

• 14 February 2019: Leah Croucher is last seen by her parents at the family home in Quantock Crescent, Milton Keynes at 22:00 GMT
• 15 February 2019: CCTV footage shows her walking down Buzzacott Lane in Furzton at 08:16. She was thought to be going to her job at a finance company, but she never arrived
• April 2019: Thames Valley Police says three people had reported possible sightings of Miss Croucher near Furzton Lake between 09:30 and 11:15, on the day she went missing
• October 2019: A two-week search by Thames Valley Police of a lake and surrounding area at the Blue Lagoon nature reserve in Bletchley finds nothing
• 15 February 2021: On the second anniversary of her disappearance, police say there are "no significant leads" and the case is "bewildering and frustrating"
• 12 October 2022: Police open a murder investigation after unidentified human remains and a rucksack containing personal possessions belonging to Leah are found in the loft of a home on Loxbeare Drive in Furzton
• 14 October 2022: Neil Maxwell, a deceased sex offender, is named as the prime suspect in the case by police

Find BBC News: East of England on Facebook, Instagram and Twitter. If you have a story suggestion email eastofenglandnews@bbc.co.uk

Related Internet Links

• Thames Valley Police

The BBC is not responsible for the content of external sites.

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiP2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLWVuZ2xhbmQtYmVkcy1idWNrcy1oZXJ0cy02MzI1OTA0NNIBQ2h0dHBzOi8vd3d3LmJiYy5jby51ay9uZXdzL3VrLWVuZ2xhbmQtYmVkcy1idWNrcy1oZXJ0cy02MzI1OTA0NC5hbXA?oc=5

2022-10-14 15:43:32Z
1594094229

Liz Truss insists she won't resign after making Jeremy Hunt chancellor — follow latest - The Times

Liz Truss has vowed to carry on as prime minister after scrapping a key campaign pledge not to raise corporation tax and sacking her chancellor.

She replaced Kwasi Kwarteng, her long-term ally and friend, with Jeremy Hunt, the former cabinet minister who ran against her in the summer’s leadership race and eventually supported Rishi Sunak.

But in a televised press conference this afternoon, she insisted: “The mission remains the same.”

Liz Truss holds a press conference as Jeremy Hunt becomes chancellor

Truss confirmed that her plan to freeze corporation tax would not go ahead and it would rise to 25 per cent next year, as was originally planned by Sunak. She said this would raise £18 billion per year.

She told a Downing Street press conference lasting just over eight minutes: “It is clear that parts

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMicGh0dHBzOi8vd3d3LnRoZXRpbWVzLmNvLnVrL2FydGljbGUvcG9saXRpY3MtbGF0ZXN0LXRydXNzLWFuZC1rd2FydGVuZy1zZXQtdG8tZGl0Y2gtY29ycG9yYXRpb24tdGF4LWN1dC1iMnpjZ3RjZDLSAQA?oc=5

2022-10-14 16:25:00Z
1607505298

Mini-budget U-turn on table as Kwasi Kwarteng flies home - BBC

EPA

By Chris Mason & Joshua Nevett

BBC News

Chancellor Kwasi Kwarteng has cut short his visit to the US for urgent talks in Downing Street, with a U-turn over the mini-budget on the table.

Mr Kwarteng is flying home early from Washington DC after days of open revolt among Tory MPs over his economic plan.

Prime Minister Liz Truss is facing calls to change her plan to calm market turbulence and reassure her party.

No 10 downplayed speculation of imminent changes to the plan after reports suggested parts may be ditched.

A Downing Street source told the BBC the prime minister thinks the chancellor is "doing an excellent job and they are in lockstep".

Many Tory MPs think a further change of plan is inevitable, following a previous U-turn on Ms Truss's plan to scrap the top rate of income tax.

Other scenarios being discussed by some Tory MPs include the chancellor resigning or the prime minister being ousted, with some talking about a joint team of Rishi Sunak and Penny Mordaunt as replacements.

Under this scenario, Tory MPs would propose just one person to succeed the prime minister, with the other individual taking a senior cabinet role, avoiding the need for another leadership contest.

In a tweet that laid bare Tory tensions, former cabinet minister Nadine Dorries accused those of agitating to remove Ms Truss of a plot to "overturn democracy".

• Live updates: Chancellor to return for crunch talks
• Chris Mason: Can Liz Truss salvage her premiership?
• Pound rises on talk of mini-budget U-turn
• What was in the mini-budget and what has changed?

Mr Kwarteng had been in Washington DC for a meeting of global finance ministers at the International Monetary Fund's (IMF) annual meeting.

Speaking about the change in his travel plans, a source close to the chancellor said he "really wants to engage not only with government colleagues, but also MPs" over the financial plans.

His mini-budget last month included £45bn of tax cuts, funded by borrowing, which spooked financial markets and prompted a drop in the value of the pound.

He was forced to scrap plans to cut the top rate of income tax, which made up just £2bn of the package.

But continuing market turmoil prompted an intervention from the Bank of England, which involved buying government bonds to stabilise their value.

The Bank has said it is withdrawing that programme of emergency support as planned on Friday. But the pound has rallied in value following speculation in Westminster that another U-turn was in the offing.

There has been speculation the government could reverse its policy of scrapping a planned rise in corporation tax, which is a tax on the profits of UK limited companies.

A key plank of Ms Truss's Tory leadership pitch was ditching the rise to the tax, which was set to increase from 19% to 25% in 2023.

If the government does announce changes to its plans it is not clear when this might happen.

Mr Kwarteng is due to make a financial statement on 31 October - but he may be forced to act much sooner than that, if the markets and the mood among Tory MPs swings against him.

This video can not be played

To play this video you need to enable JavaScript in your browser.

Ms Truss's supporters are urging her to stick to the course she set just 39 days ago when she became PM.

Sir Christopher Chope told the BBC Two's Newsnight: "If we were to increase corporation tax having said that we're not going to, that would be totally inconsistent with the prime minister's policy of promoting growth, growth and growth."

He added that a U-turn would be a "complete betrayal" of what she believed in.

When asked if changes to the mini-budget were coming on Friday, trade minister Greg Hands told the BBC's Today programme "I'm not expecting that".

Mr Hands said it was now time for the Conservative Party to unite behind the prime minister, who won the Tory leadership contest in the summer.

• The pitfalls lying ahead for an embattled PM
• Where are the other bits of government's growth plan?
• What will the tax changes mean for you?

But other Tory MPs say further U-turns are inevitable and should come immediately to calm market jitters.

Former minister Johnny Mercer called for a "course correction" from No 10, describing the impact of rising mortgage rates on people who want to buy a home as "politically unsurvivable".

Mel Stride, the chairman of the Treasury Select Committee, called on the chancellor to make a "significant" announcement "sooner rather than later".

However, he told BBC Breakfast that he did not back a change in leadership, saying "the last thing we need is more market turbulence".

The tense atmosphere in Westminster was apparent as the BBC spoke to dozens of sources across Parliament and the government on Thursday.

"It's checkmate, we're screwed," one Tory MP remarked.

"There is no question in my mind, they'll have to junk loads of this stuff and U-turn," another said.

Adblock test (Why?)

https://news.google.com/__i/rss/rd/articles/CBMiLWh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy91ay1wb2xpdGljcy02MzI1MDc5NtIBMWh0dHBzOi8vd3d3LmJiYy5jb20vbmV3cy91ay1wb2xpdGljcy02MzI1MDc5Ni5hbXA?oc=5

2022-10-14 08:47:43Z
1607505298