Letters of no confidence in Liz Truss 'already being put in', says Tory MP

A former Tory minister MP has told Sky News the new Prime Minister is "f*****" and the party are already looking to bring her down following Friday's mini-budget. 

The MP said: "They are already putting letters in as think she will crash the economy. The tax cuts don’t matter as all noise anyway - mainly reversing back to the status quo this year.

"The issue is government fiscal policy is opposite to Bank of England monetary policy - so they are fighting each other. What Kwasi [Kwarteng] gives, the Bank takes away."

Another Tory MP told the broadcaster that Friday's announcement - which included reversing a 1.25% hike in National Insurance - had been a "s***show".

They said they weren’t aware of any coordinated plan to vote down government legislation, but added they would not rule out something happening given what has happened in the last few days.

Kwasi Kwarteng's mini-budget included a cut in the basic rate of income tax to 19p in the pound - though this does not apply in Scotland - while the Chancellor also pledged to scrap the cap on bankers' bonuses.

READ MORE: Jim Murphy urges Scottish Labour to 'confront nationalism' in bid to regain power

Kwarteng also took the opportunity to cut taxes for the highest earners, telling MPs that the 45% higher rate of income tax will be “abolished”.

And he did away with a planned increase in corporation tax from 19% to 25%.

Treasury estimates put the overall measures as costing nearly £45 billion a year by 2026.

Analysis of Kwarteng's fiscal statement by Resolution Foundation said “only the very richest households in Britain” will see their incomes grow as a result of the most significant tax cuts in 50 years.

The richest 5% will see their incomes grow by 2% next year (2023-24), while the other 95% of the population will get poorer.

But Kwarteng insisted that the Tories' economic vision would “turn the vicious cycle of stagnation into a virtuous cycle of growth”.