Tories threaten rebellion over 45p tax rate axe

TORY MPs last night warned Liz Truss she has just two weeks to convince them to back her tax-cutting plans, or she risks a Commons rebellion.

Backbenchers enraged by proposals to slash taxes for the highest earners south of the Border, while imposing a real-terms cut on benefits, say No 10 has left the public feeling ‘frightened instead of reassured’.

Even allies who want the Prime Minister to stick to her guns are insisting the Government must improve the way it communicates economic policy to voters.

Some Tories are considering voting down parts of the Finance Bill to block the abolition of the top 45p rate of income tax paid by the highest earners. One backbencher said: ‘They’ve got two weeks to sell it to us... I don’t think we’re at the stage yet of Truss having her first rebellion four weeks into her premiership – but it is not far off.

‘She has got to play the next few weeks a lot cleverer and No10 has got to be a lot cleverer and be a lot more inclusive than they have in the first few weeks. This is a problem of their own making.’

A former minister said Miss Truss was ‘finished’ and that ‘lots’ of letters calling for a confidence vote in the PM had been submitted – even though she cannot face a vote for a year. But the MP said angry MPs were not wholly blaming Kwasi Kwarteng’s ‘mini-Budget’ last week.

‘People are not that upset with the Budget as most of it is support for energy and NI (national insurance) reversal. We are angry because they are s**t, did not roll the pitch and cannot communicate the strategy so public feel frightened instead of reassured.’

Sir Charles Walker, a former chairman of the 1922 Committee of Tory backbenchers, said the plans had been ‘executed so utterly poorly’.

But Downing Street remained defiant, with a source saying: ‘We’ve got an 80-seat majority and we’ve done nothing with it. We have an opportunity now to push through reforms to things that have been holding Britain back for years. If not now, when?’

Ministers are reviewing a commitment made by Boris Johnson to increase benefits in line with inflation next year, meaning claimants could have their payments squeezed.

Miss Truss yesterday refused to be drawn on the question of how much benefits will increase by, but said Work and Pensions Secretary Chloe Smith would make an announcement ‘in due course’.