Senior Tory MPs ell Liz Truss: Rethink Tax Cuts

The government may have to rethink its tax-cutting plans to reassure financial markets and stabilize the economy, some senior Conservative Members of Parliament (MPs) have said, Ione Wells and Becky Morton reported for BBC Politics.

Photo Insert: Truss also believes stepping back from what she describes as the highest tax burden in 70 years would allow the public to keep more of the money they earn at a time of global high prices.

Such warnings came ahead of a bruising appearance for the prime minister at a meeting of Tory backbenchers. One loyal minister told the BBC: "We are completely in a dreadful place. There is no way out - maybe Liz Truss will find a way, but I cannot see it." Truss has repeatedly defended the proposed tax cuts outlined last month.

The chancellor's mini-budget on September 23, which included £45 billion of tax cuts funded by borrowing, sparked turmoil on financial markets and prompted the Bank of England to intervene to protect pension funds.

Kwasi Kwarteng is due to set out how he will fund the package and reduce debt on Oct. 31. Truss insists canceling a rise in corporation tax from 19% to 25% due in April and other tax cuts will help boost growth.

Truss also believes stepping back from what she describes as the highest tax burden in 70 years would allow the public to keep more of the money they earn at a time of global high prices.

One of the ways the government plans to achieve this is by bringing forward a cut in the lower rate of income tax, so people will be taxed 19% on earnings between £12,571 and £50,270.

But the editor of Conservative Home Paul Goodman has argued the mini-budget is now "more likely than not" to be totally withdrawn.

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