Heckles from Dilyn but it’s the old dog who needs new tricks to tackle the big squeeze

There was a back-to-school feel in the sunny Downing Street garden on Tuesday night as Tory MPS gathered for a tête-à-tête with colleagues and “the boss”.

Boris Johnson had just seen his legislative agenda, packed with “red meat” for the back benches, read out by the future monarch at Parliament’s reopening. But as the Prime Minister attempted to address his MPS, newly reunited after Sir Keir Starmer’s beergate police investigation woes, there was persistent heckling from one of those present. Time after time he was interrupted by a barking Dilyn, the Johnsons’ Jack Russell. So much so that the Prime Minister joked: “Take this dog to a place of execution.”

More serious topics were discussed as Mr Johnson chatted to colleagues in smaller groups about the cost-of-living crunch. Jake Berry, Conservative MP and once a close Johnson ally, who was at the event, put it to Sky News that the Prime Minister “was showing more than a bit of ankle” on a topic close to Tory hearts – tax cuts.

There is a growing belief among some Conservative MPS that the biggest threat to Mr Johnson’s political career is not the furore over lockdown breaking parties but the stuttering economy. “Stagflation” is rearing its head as inflation soars but economic growth shows signs of slowing.

Jeremy Hunt last night warned that “very, very low (economic) growth” risked undermining the NHS as it faced soaring bills and shortages of doctors. “The Conservative Party has to promise a well-funded NHS and the prospect of tax cuts. If we make people choose between one or the other, we’re not going to win the election,” the former foreign secretary said.

Recession could come next year – yesterday it emerged the economy actually contracted in March.

All of which has focused minds in Downing Street – both at No 10 and the Chancellor’s team next door – about what more can be done to help households suffering the squeeze. The Queen’s Speech had as its opening line that the Government’s “priority” is helping with the cost of living and growing the economy, but its 38 Bills did little to help. Moves to diversify energy supply, improve the rail network and drive up productivity could ease future concerns but do not help in the here and now.

So focus is now on the near term. There are three broad areas where thinking is being developed with an eye on the tricky politics of cost concerns. One involves spending no money and cutting no tax. The Prime Minister has tasked all departments to come up with “non-fiscal” ways to help ease financial pressures on the public.

There was a “blue-sky thinking” Cabinet meeting, where people threw in ideas and – as one Tory adviser joked – “auditioned to be Chancellor”.

That has solidified into a dozen proposals which were the subject of detailed discussion in a Cabinet sub-committee attended by Mr Johnson on Tuesday.

One idea is changing the annual requirement of MOT tests for most