UK's Kwarteng Plans to Meet Tory MPs in Bid to Regain Trust




  • In World
  • 2022-10-06 15:27:40Z
  • By Bloomberg
 

(Bloomberg) --

Most Read from Bloomberg

  • Nord Stream Leaks Caused by Detonations in Sign of Sabotage

  • Trump Says US Agency Packed Top-Secret Documents. These Emails Suggest Otherwise.

  • Kremlin Lets State Media Tell Some Truths About Putin's Stalling War

  • Musk's Twitter Takeover Hits Snag Over Debt-Financing Issue

  • Stocks Slide With Anxiety Running High Before Jobs: Markets Wrap

Chancellor of the Exchequer Kwasi Kwarteng is set to address restless Tory MPs next week as he and Prime Minister Liz Truss attempt to regain the trust of their party after a badly-received package of tax cuts and an unexpected U-turn exposed rifts in the UK's ruling Tories.

Kwarteng plans to meet with backbench Members of Parliament at a gathering of the Tory Party's influential 1922 Committee on Wednesday, according to a person familiar with the matter.

The Chancellor and premier are trying to re-establish authority over their Conservatives after triggering a market rout last month with the biggest set of unfunded tax cuts in half a century. That led to a fractious party conference this week which exposed deep divisions that ultimately forced the pair into an embarrassing U-turn on their signature tax cut for the UK's highest earners.

On Tuesday, lawmakers will return to Parliament for the first time since Kwarteng's fiscal statement Sept. 23. Since then, the pound touched a record low against the dollar, the Bank of England was forced to intervene in the gilt market to avoid a damaging crash, and the chancellor and Truss caved in to pressure from Tory MPs who disagreed with cutting taxes for the country's highest earners during a cost of living crisis.

All that makes Wednesday's meeting important, especially after Truss's opponents, including former cabinet ministers Michael Gove and Grant Shapps, spent the party conference sounding out disgruntled MPs. Some Tories -- including senior members of Truss's government -- continue to publicly squabble over how the government will fund its cuts, and the issue of whether to raise welfare payments in line with inflation threatens to spark another rebellion.

(Updates with Kwarteng tweet about meeting with bankers)

Most Read from Bloomberg Businessweek

  • The Massive Gas Field That Europe Can't Use

  • Even After $100 Billion, Self-Driving Cars Are Going Nowhere

  • 'I Am Energy': Inside the Bang Billionaire's Reeling Empire

  • Millions in Cryptocurrency Vanished as Agents Watched Helplessly

  • Musk Won't Own Twitter Until the Shareholders Get Paid

©2022 Bloomberg L.P.

COMMENTS

More Related News

Suncor to Retain Canadian Gas-Station Arm Following Review
Suncor to Retain Canadian Gas-Station Arm Following Review

(Bloomberg) -- Suncor Energy Inc., the Canadian oil sands producer under pressure from activist investor Elliott Investment Management LP, said it decided to...

Hong Kong Peg Creator Says Sky-High Rates Can Defend It
Hong Kong Peg Creator Says Sky-High Rates Can Defend It

(Bloomberg) -- Hong Kong is willing to tolerate sky-high borrowing rates and near term economic pain to defend its currency peg with the dollar in the wake...

Chinese Stocks Surge in US as Vaccine Drive Fuels Reopening Bets
Chinese Stocks Surge in US as Vaccine Drive Fuels Reopening Bets

(Bloomberg) -- Chinese stocks listed in the US extended gains in premarket trading as officials vowed to speed up Covid shots for the elderly and to avoid...

Israel PM Asks 50 Countries to Prevent UN Vote on ICJ Advisory
Israel PM Asks 50 Countries to Prevent UN Vote on ICJ Advisory
  • World
  • 2022-11-29 09:08:18Z

(Bloomberg) -- Israeli Prime Minister Yair Lapid has written to 50 heads of states in a bid to prevent a vote in the United Nations that seeks to request an ...

Spanish Inflation Eases More Than Expected in Boost for ECB
Spanish Inflation Eases More Than Expected in Boost for ECB

(Bloomberg) -- Spanish inflation eased for a fourth month and by more than expected, reinforcing expectations for a wider slowdown in European prices and...

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: World