UK Prime Minister Liz Truss appears to be facing another climbdown over benefits spending as she tries to impose discipline on her rebellious party after the government’s U-turn on a 45% income tax rate for top earners, part of No 10’s mini-budget.
The British news outlet i cited an unnamed Whitehall source as saying that “there’s always going to be differences of opinion between people,” who are “entitled to their personal opinions.”
The source at the same time added that all this “should be raised in a more constructive manner” and that “collective responsibility is the same as it always has been.”
Unlike the previous government, Truss has repeatedly refused to confirm her plan for benefits, meaning that some of the poorest households may face a real-terms cut in their income.
Some ministers insist that increasing the level of benefits in line with inflation next year would be unaffordable, while Work and Pensions Secretary Chloe Smith is understood to be pushing for an inflation-linked uplift.
Another Cabinet minister who supports her told i that “on universal credit, we [Tory MPs] are going to win. I’m going to make sure of that”, a view that was also backed by Northern Ireland Minister Steve Baker.
Former Secretary of State for Levelling Up, Housing and Communities Michael Gove, for his part, said that he wanted to see No10’s argument but that he would need “a lot of persuading”.
Ex-Treasury Minister David Gauke noted that he couldn’t see how the government refuses to grant the benefits uplift given the “very significant” cost of living crisis.
MPs will return to Parliament after a brief recess next week.
The i report came after the PM pledged to get her country through "stormy days" as she set out her plan to bolster the British economy in the midst of market turmoil during a keynote speech at the Conservative Party Conference in Birmingham on Wednesday.
Truss underscored that she was “determined to get Britain moving and get” the country “through the tempest” as well as put the UK “on a stronger footing as a nation”. According to her, Brits “need an economically sound and secure United Kingdom”.
This followed Chancellor Kwasi Kwarteng conceding in his speech during the Conservative Party Conference that his emergency tax-cutting mini-budget, which was announced on September 23, had caused "a little turbulence". He also added that the government will forge a new deal to help ensure economic growth in the country.
The chancellor's unveiling of the mini-budget triggered a backlash from Conservative MPs amid ensuing financial turmoil; the pound plunged to a record low since 1971 and mortgage lenders pulled a spate of key deals. The developments were followed by the government making a U-turn on part of the mini-budget, which stipulates a reduction of taxes on incomes over 150,000 pounds ($168,000) per year from 45% to 40%.