“Jeremy Hunt is to delay the penny cut to income tax — the flagship announcement in the disastrous mini-budget — as cabinet ministers warn that the prime minister’s time is up and backbenchers plot to oust her. In the latest in a series of government U-turns, the new chancellor is expected to announce that plans to reduce the basic rate of income tax next April will be pushed back by a year. The 19 per cent rate will now take effect at the time previously proposed by Rishi Sunak, Liz Truss’s leadership rival.” – Sunday Times
>Today: ToryDiary: It’s all over for Truss
“I do want to be honest with people that this is not going to be easy. To get debt falling, and restore market confidence, it will be necessary to take some very difficult decisions. Spending is not going to rise by as much as we would have liked. We’re not going to be able to cut taxes as quickly as we wanted to. Some taxes may even have to go up. That is not what we wanted to see. But if we want to keep interest-rate rises as low as possible – and avoid simply passing on to our children the burden of paying off the debts we’ve run up today – then we have to give certainty to the markets that we really can fund every penny of our plans.” – Jeremy Hunt, Sunday Telegraph
“We cannot allow Britain to be held back by a militant mob. That is why we will push on this week with new measures to stop the chaos caused by guerrilla protests and to curb the power of militant rail unions. This is only the beginning. We will drive further reforms over the coming weeks to do everything from helping you set up your own business to getting spades in the ground quicker, building what local communities most need. As Prime Minister, I will always act in the national interest. Every day, I am thinking of nothing else but how to support families and businesses across our great country. The best way to do this is to get our economy growing. Put simply, growth means stability, security and success. No matter how hard things get, my mission will remain the same.” – Liz Truss, The Sun on Sunday
“The governor of the Bank of England has warned interest rates may need to rise by more than previously expected. Speaking in Washington, Andrew Bailey said “inflationary pressures” meant a “stronger response” could be needed from the Bank than thought in August. The next rate rise decision is on 3 November, days after the government lays out its economic plans. Meanwhile, Mr Bailey described his discussions with the new Chancellor Jeremy Hunt as a “meeting of minds”. Mr Hunt, who was appointed on Friday after his predecessor Kwasi Kwarteng was abruptly sacked, has confirmed the government will set out its tax and spending plans on 31 October.” – BBC
“Militant rail unions will be banned from bringing the UK to a standstill under tough new minimum service laws introduced this week. Limits could see rail operators forced to run a 40 per cent service even during militant walk outs. The new laws will be laid this week in Parliament, and will match similar regs that are in place for transport networks across Western Europe including France and Spain. It will mean transport services – including rail, tubes and buses – cannot be completely shut down when unions walkout. Government insiders hope the new rules will come into force next year after a year of union walkouts.” – The Sun on Sunday
“The Home Secretary has vowed to crack down on “monstrously selfish” eco-protesters who have been causing mayhem and risking lives by blocking roads. Suella Braverman has announced plans are in place in a bid to stop climate activists holding the public “to ransom”. The Home Secretary said police will be given new powers to ensure a more proactive approach is taken when it comes to protests. Just Stop Oil and Extinction Rebellion activists have staged various protests and demonstrations in recent months, causing disruption to commuters and traffic across the country.” – The Sun on Sunday
“Serious Disruption Prevention Orders will target selfish, repeat disruptors. There is a range of new offences and powers relating to the dangerous practice of tunnelling. The Bill will strengthen the security of our transport networks, oil terminals, and printing presses by creating new criminal offences of interfering with key national infrastructure or access to essential goods and services. A small number of people can bring gridlock – and misery. New powers allowing Ministers to take out injunctions against the so-called protesters will scupper disruptive plans and prevent them from escalating into chaos. This Government will not hesitate to act – and keep the law-abiding majority safe.” – Suella Braverman, Mail on Sunday
“When Ben Wallace pulled out of the Conservative leadership contest in July, he had already built a campaign team and secured the support of more than 25 MPs. But strains in his domestic life led him to conclude that the pressures of the job would have too great an impact on his family. But friends say the Defence Secretary has now become much less categoric’ about not running, after being approached by colleagues to stand in any possible contest. Mr Wallace, who regularly tops the rankings among Tory party members, is ‘rethinking’ his position because he believes that Rishi Sunak, the favourite to succeed Liz Truss, ‘cannot unite the party’.” – Mail on Sunday
“When a political campaign that has recently lost an election throws a thank you event for its supporters, you might expect the atmosphere to be flat. That was not the case when backers of Rishi Sunak gathered at a central London hotel on Thursday night to sip English sparkling wine. Sources report that the mood was “upbeat” and the idea of sharing commiserations far from people’s minds. It is not difficult to see why – allies of Mr Sunak believe their man could be in 10 Downing Street within months if a sufficient mass of Tory MPs can persuade the 1922 Committee to tell Ms Truss that her time is up.” – Sunday Telegraph
“Senior Conservative MPs have warned that voters could desert the party “in droves” if Liz Truss drops her plans for post-Brexit reforms. Eurosceptic backbenchers rallied behind Ms Truss in the leadership election after she promised to pursue wider deregulation and turbocharge trade with Commonwealth countries. But figures on the Tory Right have insisted the Prime Minister must not be forced into any further U-turns as she seeks to break further from Brussels and pursue a free-trading agenda. Nigel Farage, former Ukip and Brexit Party leader, this week railed against Ms Truss’s decision to break a leadership election promise by raising corporation tax.” – Sunday Telegraph
“The Downing Street chief of staff lobbied ministers, including Liz Truss, for a politician he falsely claimed was Libya’s “legitimate prime minister” as part of a paid campaign to change UK foreign policy. Mark Fullbrook, who previously ran his own lobbying company, spent this spring pressing the government to diverge from the official stance taken by the UN and US and recognise the authority of Fathi Bashagha, who led a failed military bid to storm Tripoli this year….Fullbrook told ministers his client could grant access to Libyan oil fields and stop the flow of migrants into Europe in exchange for recognition.” – Sunday Times
“A major fire broke out on Saturday at Iran’s notorious Evin prison, known for housing political prisoners, journalists and foreign nationals. Videos shared online showed flames and smoke at the site in Tehran, and gunshots and explosions could be heard. An official quoted by state media said the situation was under control, but video footage appeared to show the fire continuing after this. Iran has been gripped for weeks by anti-government protests.” – BBC
“Is there a way out? Supply-side reform really can help, for example by making childcare cheaper, housebuilding simpler and infrastructure quicker to build. But the anti-growth coalition will not be easily thwarted — especially the members in blue rosettes. There are also a striking number of big beasts brooding on the back benches, including Kwarteng. And looming above them are the even bigger beasts of the bond markets. In her speech on Friday, Truss acknowledged the need for stability. That is indeed the priority, for voters and the markets. It will also be the hardest thing for her and her new chancellor to deliver.” – Robert Colvile, Sunday Times
“It is likely that, far from raising revenue, putting corporation tax back to 25 per cent will leave the Exchequer worse off. Reducing it to its present rate of 19 per cent resulted in significant gains for the Treasury – a point Truss made in her first Prime Minister’s Questions. She went on to explain that “if taxes are raised to the same level as France, which is what the current proposal is, that will put off investors and ultimately that will mean fewer jobs, less growth and less opportunity”. She was quite right. So why is she doing something that she does not believe will work even as a revenue-raising measure? The answer is unbelievably depressing: her MPs gave her no other option.” – Daniel Hannan, Sunday Telegraph