A SUSSEX MP said he continues to back Liz Truss as Prime Minister and Conservative Party leader, despite rumours of some MPs calling for her resignation.
A former Conservative minister told Sky News that letters of no confidence have been coming in amid fears she will “crash the economy”, with another Tory MP describing an announcement last week to cut taxes for the richest funded by government borrowing as a “s**tshow”.
However, Worthing West MP Sir Peter Bottomley threw his weight behind the new Prime Minister, who has been in office for just three weeks.
Sir Peter, the longest serving MP currently in Parliament, said: “I support the aims of Prime Ministers, including each Conservative leader.”
Chancellor Kwasi Kwarteng’s mini-budget included a cut in the basic rate of income tax, as well as abolishing the cap on bankers’ bonuses and scrapping the 45p higher rate of income tax.
Treasury estimates put the overall measures as costing nearly £45 billion a year by 2026.
Hundreds of mortgage deals have vanished from the market in recent days amid turmoil on the financial markets, with the pound plunging to a record low against the dollar.
Polling by YouGov revealed that while most Britons are happy with some measures in the mini-budget, such as the reversal of the recent National Insurance rise, 72 per cent said abolishing the top rate of tax is the wrong priority during the cost of living crisis.
In talks with City investors, Mr Kwarteng insisted he was committed to “fiscal discipline” and that he had a “credible plan” to start to bring down the UK debt.
He also emphasised the importance of the “supply side” reforms ministers will be setting out in the coming weeks, including reforms on the financial market regulations, in supporting growth.
He said: “We are confident in our long-term strategy to drive economic growth through tax cuts and supply-side reform.
“Supply-side reforms are critical - increasing capacity brings down prices.
“We are committed to fiscal discipline, and won’t re-open the spending review.
“I am confident that with our growth plan and the upcoming medium-term fiscal plan - with close co-operation with the Bank of England - our approach will work.”
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