Liz Truss faces mutiny from her MPs over plans for a tax cut for the rich

Yesterday Tory MPs including Michael Gove, the former levelling up secretary, indicated that they would vote against a financial package in the House of Commons if it included measures such as the cut to the top rate of tax.

His intervention on the first day of the Conservative’s party conference in Birmingham, along with that of several colleagues who are no longer in government, sets up a showdown between the Prime Minister and her party in the coming weeks.

The influential backbencher said he was “profoundly” concerned about the £45 billion worth of tax cuts during the cost of living crisis, saying that it was “not Conservative” to fund them through increased borrowing that would have to be paid off by future generations.

He told the BBC’s Laura Kuenssberg that cutting taxes for high earners while the public struggle to pay bills was a “display of the wrong values”.

“I don’t believe it’s right,” he said, when pressed on whether he would vote against the measures in Parliament.

It came as Jake Berry, the new chairman of the Conservative Party, confirmed that any MPs, including those as senior as Mr Gove, could lose the party whip if they vote against the measures, and would no longer be Tory MPs.

Julian Smith, who, like Mr Gove, is a former chief whip, responded to the threat by saying that the “first job of an MP is to act in the interest of their constituents and in the national interest”.

“We cannot clap for carers one month & cut tax for millionaires months later,” added the North Yorkshire MP.

At least a dozen Tory MPs have now confirmed that they disagreed with axing the top rate of tax, as the size of the backbench rebellion against the Prime Minister’s plans grew over the weekend.

Two further senior Tory MPs told the Yorkshire Post that the threat of deselection would not stop them voting against the Chancellor’s tax-cutting budget.

“It’s a cult,” one noted.

Damian Green, a former deputy prime minister under Theresa May, said that his party would lose the next election “if we end up painting ourselves as the party of the rich”.

Meanwhile, George Osborne, the ex-chancellor under David Cameron said that it was “touch and go” whether Kwasi Kwarteng would be able survive the fallout of the fiscal statement, and it could be “curtains” for him is his speech goes badly later today.

Tory ex-chancellor George Osborne said it was “touch and go whether the Chancellor can survive” the fall-out, telling the Andrew Neil Show it would be “curtains” for Mr Kwarteng if his speech on Monday went badly.

He predicted that the cut to the top rate of tax would end in “humiliating defeat” in the House of Commons, which Mr Kwarteng should avoid by backing down and withdrawing it.

It has been reported that some Tory MPs have contacted the Labour Party in a bid to plan ways to block the measures.

One of the key disagreements between Conservative backbenchers and their leader has been over the decision to fund tax cuts for the richest in society, and to lift the cap on bankers’ bonuses at the same time as considering public sector and benefit cuts.

Michael Gove told the Telegraph that it would be “very, very, very difficult” to argue that it was right to slash benefits whilst cutting tax for the highest earners.

Liz Truss yesterday committed to ensuring that pensions would rise in line with inflation, but refused to make the same commitment for benefits and for government spending on public services.