Liz Truss is fighting for her political life after less than a month as prime minister as a chaotic Conservative conference saw a breakdown in cabinet discipline and the first signs of organized opposition to her agenda.
The Prime Minister will use her keynote speech at the annual meeting in Birmingham on Wednesday to promise a “new Britain for a new era” with a libertarian platform for growth that she admits will cause “disruption” to UK life.
But former cabinet minister Grant Shapps – rejected for the job by Truss because of his support for leadership rival Rishi Sunak – has warned she has just 10 days to save her premiership from rebel MPs who are expected to begin serious plotting. when returning to Westminster next week.
And the Independent has learned that the prime minister’s Tory opponents are drawing up plans for a new group to develop the intellectual basis for an alternative to her right-wing agenda.
Grouped around centrist think tanks such as Onward and thinkers such as 2019 manifesto co-author Rachel Wolff, it is expected to draw up a “community” agenda for a leader to replace Truss, perhaps after defeat in the next election.
Michael Gove has led the charge against Mrs Truss’s tax cuts for the wealthy in Birmingham, but the group is not expected to be a vehicle for a new leadership bid by the former equalization secretary. Figures including Mr Sunak and Gove-backed leadership candidate Kemi Badenoch are likely to be targeted, although neither is believed to be involved at this stage.
Intended as a launch pad for her administration, Ms Truss’s first conference as leader was plagued by reverses, rebellion and indiscipline, with members of her own cabinet openly challenging the prime minister’s position on a range of issues.
After Monday’s collapse of the £2 billion high-income tax handout, the Prime Minister and Kwasi Kwarteng caused further confusion by backing out of a plan to table the Chancellor’s long-awaited November 23 Fiscal Report for October, along with the Office’s crucial judgment for budget Responsibility for the credibility of its package.
Cabinet ministers Penny Mordaunt and Sir Robert Buckland have gone public with concerns about Mrs Truss’ reported plan to save up to £7bn by cutting welfare benefits.
House of Commons leader Ms Mordaunt said it “makes sense” to raise working-age benefits next April in line with inflation by around 10 per cent, as previously promised, instead of wages at 6 per cent. And Welsh Secretary Sir Robert urged the Tories to “help those who really need it”.
Former leader Sir Ian Duncan Smith said a below-inflation rise “makes no sense” and ex-minister Lord (Eric) Pickles warned the number of rebels could be higher than under the scrapping of the top 45 income pence tax.
Liz Truss avoids directly saying that she still trusts Kwasi Kwarteng
Former minister Andrew Mitchell said it would be “weird” to bail out the poorest with energy bills only to not support the real value of their wages. He warned of the danger of the Tories forming a “round-robin” on the issue.
Mrs Truss insisted no decision had been made on benefits but then sparked uncertainty over pensions by refusing to rule out an increase in the retirement age from 67.
Meanwhile, Home Secretary Suella Braverman said she was “disappointed” the Prime Minister dropped the 45p rate mid-conference and accused Tory critics of the move of staging a “coup” against their new leader.
She won the support of Equalities Secretary Simon Clarke, who tweeted “Swella speaks very sensibly as usual”, but was attacked by Trade Secretary Cammy Badenoch for her “inflammatory” comments.
Nadine Dorries has reiterated her call for an early general election so Mrs Truss can claim a mandate for her sharp departure from Boris Johnson’s 2019 manifesto.
“If we don’t want to fulfill the deal, the promises, we need a new mandate,” said the former culture minister.
Mr Shapps told the News Agents podcast that Mrs Truss only had a “limited period of time to turn things around”, adding that the “next 10 days” were a crucial period to convince MPs who they fear for their seats, not to “move the dice” for a new leader.
The former transport minister later told Times Radio that the Tories would not “sit idly” on the leader’s removal if “the polls continue as they are”.
Robert Halfon, the Tory chairman of the House of Commons education committee, who wants benefits to rise in line with inflation, told the BBC: “The Prime Minister needs to get back to showing that the Conservatives are a compassionate party… We need to be on the side of everyone, not just on the side of entrepreneurs. So that means social capital – making sure we’re developing our society as much as we’re trying to develop the economy.”
Senior MP Mark Harper pleaded for “discipline”, telling a sideline event at the Birmingham conference: “We can’t have a situation like we’ve seen today … Various cabinet ministers are challenging the prime minister’s authority, government policy is changing several times and cabinet ministers … then criticize backbenchers for having the temerity to have an opinion.
“If we’re going to keep going like this, it’s not going to work.”
One Tory MP told The Independent that Ms Truss only had a “very, very narrow window” to turn things around with her parliamentary party, which will begin discussing how she can be replaced when they return in the House of Commons next week if she wants to keep the “fight” with them over benefits.
Another said it was “too late” for Mrs Truss to turn things around because of the scale of the damage from the mini-budget. But he warned that a move against Ms Truss could trigger an early general election. “We can cut each other’s throats and that will have to be taken into account.”
In her speech on Wednesday, Ms Truss will set out her argument that UK politics has for too long been dominated by a debate over how to distribute the dwindling national wealth.
“Instead, we need to grow the pie so that everyone gets a bigger piece,” she will say.
“That’s why I’m determined to take a new approach and get us out of this cycle of high taxes and low growth.” This is what our plan is all about: to grow our economy and rebuild Britain through reform.
She will say the scale of the challenge Britain faces is “enormous” and admit her plans will disrupt the lives of voters.
“Whenever there’s change, there’s disruption,” she will say.
“Not everyone will be in favor.” But everyone will benefit from the result – a growing economy and a better future. That is what we have a clear plan to achieve.”
Drawing on her experience growing up in Paisley and Leeds during the Thatcher years, she will say: “It’s a great country. But I know we can do better and we must do better. We have tremendous talent across the country. We don’t do it enough. To achieve this, we need to get Britain moving. We cannot have any more deviation and delay at this vital time.
“We are the only country with the determination to achieve… Together we can unleash the full potential of our great country. This is how we will build a new Britain for a new era.”
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