Chaos in the Tories: Truss fights for political survival

Disagreements in the British government over funding for tax cuts are causing uncertainty among the conservative Tories. Prime Minister and party leader Liz Truss is increasingly coming under fire.

It is slowly becoming confusing at the U-turns. First, a planned reduction in the top tax rate on income was canceled. Finance Minister Kwasi Kwarteng then hinted that plans to fund a raft of tax cuts will be presented later this month, rather than in November. A measure that should calm the financial markets. But today the finance minister announced the third reversal: he had been misunderstood, but no early budget planning.

The uncertainty at the party base is growing

This is not well received at the grassroots level, many are unsettled and criticize the chaos in which the new government led by Liz Truss has started. This became clear in the many rounds of talks at the Conservative party conference. For example, Jake Berry, the party’s new executive director, had invited. Numerous members and delegates came to ask questions about party finances, party work and the current state of the Conservatives.

Two local politicians gave free rein to their frustration and reported how difficult it was at the moment to talk to voters on their doorstep. Everyone just wanted to talk about the dispute in London, nobody about local politics. In another panel, one member pointedly pointed out that there were already voices recommending that the Conservatives should regroup in the opposition.

Truss emphasizes the unity of her ministers

But new elections are not yet pending. Liz Truss fights for political survival. Home Secretary Suella Braverman defended the Prime Minister in Birmingham, explaining why she was in favor of cutting the top tax rate. But parts of the party had instigated a “coup”. She was referring to numerous MPs who had indicated that they would not agree to the tax cut for the wealthy in Parliament. Among them was Michael Gove, the former Minister for Equality of Living, who had openly criticized the plans to reduce the top tax rate on the BBC.

Liz Truss, on the other hand, again pointed out the unity of the government. Her ministers are behind the growth plans, she told Times radio. The prime minister wants to fuel growth with a number of measures, including a reduction in land transfer tax, corporate tax and the entry tax rate on income. It remains to be seen whether these debt-financed measures will really boost growth.

Controversy over funding for tax cuts

However, the Prime Minister’s statements sound like the famous whistling in the woods. Because there has long been a dispute about the financing of the tax cuts, which is still unclear. Liz Truss would not pledge that benefits will be adjusted for inflation. In an interview with the BBC, she said she had to act “financially responsible” – which others criticized. House of Commons Speaker Penny Mordaunt, also of the Conservative Party, said it made sense to adjust welfare benefits in line with inflation. She and other MPs would have voted for this in the past.

The dispute over how to finance the tax cuts could get quite heated. New elections would be a disaster for the party at the moment: In a poll last week, 54 percent of those polled said they would vote for Labour, compared to just 21 percent for the Conservatives. With that in mind, the pressure on Truss is huge.