Rishi Sunak's supporters intensify their efforts as Liz Truss faces an open revolt
Rishi Sunak's supporters intensify their efforts as Liz Truss faces an open revolt
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This week, as mutinous backbenchers plan to unseat her and financial markets issue a fresh judgement on her jarring economic reset, Britain’s beleaguered prime minister Liz Truss will fight to keep her job as leader.

Truss, who has only been in office for 40 days, spent Sunday huddling with the newly appointed Chancellor of the Exchequer, Jeremy Hunt. Hunt was Truss’ choice to restore stability following a humiliating climbdown that included firing her initial choice for the position and scrapping an economic plan that caused a sell-off in UK assets.

Markets will put Truss to the test, but the Conservative Party ultimately decides whether she will be able to keep her post.

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An official with knowledge of the situation said Truss will hold a reception for the Cabinet at 10 Downing Street on Monday night to continue soliciting their opinions on a medium-term budget plan that Hunt will unveil on October 31. The person stated that Hunt will meet with every Conservative MP this week to solicit their input.

In an effort to stop more punitive increases in the cost of borrowing for the UK government, Hunt spent the weekend laying out a fundamentally different fiscal strategy that would require tax increases and spending reductions. The Bank of England’s emergency bond-buying scheme, which was put in place to calm the markets after Truss announced her mini-budget, has finally come to an end. Gilts experienced a sharp sell-off on Friday afternoon following Truss’ lacklustre news conference.

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Investors’ speculation that more of Truss’s underfunded tax cut package would be reversed caused the pound to increase during early Asian trading on Monday. Even though they performed better than the Euro Stoxx 50 contracts, FTSE 100 futures had a 0.6% decline at opening.

The second test for Truss, if she can survive the markets, will be dealing with a party that is openly revolting. As of Sunday night, three Conservative MPs were publicly demanding for her resignation, while a number of others declared in private that they would write to Graham Brady, the head of the 1922 Committee, asking him to amend the party’s rules so that a vote of confidence in Truss could be called.

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The plots against Truss are intensifying as a result of the Tories’ historic polling disadvantage against Labour and their perception that they will have an electoral disaster if she is allowed to continue in office. Over the weekend, Rishi Sunak’s supporters intensified their attempts to win support for his installation as head of the Conservative Party after finishing second to Truss in the previous leadership race.

An alleged Sunak coronation, which would avoid another vote among the party’s base followers, has been discussed by former chief whip Julian Smith with a number of Conservative MPs. Mel Stride, a vocal opponent of Truss and a backer of Sunak, will hold a dinner for MPs on Monday night, similar to the one she hosted last week.

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Truss’ ally cautioned that the plotters don’t care about the future of the markets or the UK’s economic health. The source claimed that instead of causing a coronation, the conspirators would simply call a general election.

Under existing Conservative regulations, Truss’s position is shielded by a one-year immunity clause. According to a person familiar with its discussions, the 1922 executive would require approval from roughly two-thirds of the party’s close to 360 MPs in order to amend the rules. This means that Truss won’t likely be fired anytime soon. The individual stated that the executive wouldn’t meet until Wednesday.

According to a senior Conservative operator who spoke on the condition of anonymity, Truss could still credibly muddle through for weeks or months with the markets calmed, her policy platform reversed, and Hunt effectively in charge. The individual stated that this is the most likely outcome because there isn’t a candidate for unity and there are enough MPs who want to support the new Hunt campaign.

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When asked earlier if he would abandon more of Truss’s tax-cutting plans, Hunt responded that nothing is “off the table,” reiterating that he is now the top government spokesperson on UK fiscal policy.

Truss’ fate is in the hands of the financial markets and her backbenchers, so there is still some uncertainty as to whether she will live to see Halloween for the budget plan.

Jamie Wallis, a Tory MP, demanded Truss’ resignation in a letter, claiming that she had “undermined Britain’s credibility as a trustworthy, responsible leading economy” and “fractured our party in a potentially irreparable manner.” “Neither the nation nor the parliamentary party has faith in you anymore.”

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