Liz Truss fights for survival as even allies say she could have only days left

Prime minister to meet mutinous Tory MPs this week in effort to shore up her position after U-turns on tax

Liz Truss is fighting for her political survival, with Conservative MPs threatening to oust her and even allies warning she has just days to turn around her premiership despite ripping up her economic strategy and appointing Jeremy Hunt as chancellor.

The beleaguered prime minister will attempt to shore up her crumbling support by gathering her cabinet ministers at No 10 on Monday and then embarking on a series of meetings with mutinous Tory MPs before the next budget in a fortnight’s time.

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Tory leadership: Nadine Dorries steps down and returns to backbenches – as it happened

Latest updates: culture secretary will not serve in Truss’s cabinet and is expected to receive peerage from Boris Johnson

Philip Hammond, who was chancellor when Theresa May was prime minister, has joined Rupert Harrison, another Tory Treasury alumnus (see 10.02am), in criticising the Truss camp this morning for disparaging Treasury orthodoxy. Hammond told Times Radio:

When I hear people talking about Treasury orthodoxy, I do worry that what they might sometimes be talking about are economic facts of life. And yes, the Treasury will ensure that politicians, however senior, are confronted with the realities of the economic facts of life. “Yes, Minister, you may wish to do this. But you need to understand that the consequences will be as follows.” And we can’t legislate to change the laws of economics, unfortunately. And I think Liz Truss understands that very well.

Obviously, I worked very closely with her. She was chief secretary to the Treasury when I was chancellor, she understands the laws of economics as well as anybody does. And it’s essential that the political solutions that a government crafts, go with the grain of the laws of economics, because if you try and confront the laws of economics, you will come unstuck.

I think it is right and unavoidable that the government needs to provide support to people dealing with these huge energy bills as a short term solution, but we have to be clear, and I think [Truss] will be clear, that this can only be government support to deal with the immediate emergency energy prices being sky high, largely because of the war in Ukraine.

At the same time we’ve got to be honest about the fact that energy bills in the future are going to be higher than they were, traditionally, as we move to ensure energy self sufficiency, and to decarbonise our economies. That has always been the case; decarbonisation doesn’t come free.

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Liz Truss wins Tory leadership race to become Britain’s next PM

Foreign secretary defeats Rishi Sunak, winning 57.4% of Tory members’ votes to former chancellor’s 42.6%

Liz Truss will become Britain’s next prime minister after beating Rishi Sunak in the bitterly fought Conservative leadership contest.

The foreign secretary, who won 81,326 votes (57.4%) of Tory members to the former chancellor’s 60,399 (42.6%), takes over from Boris Johnson, who was ousted by his own MPs earlier this summer.

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Larry4Leader: No 10’s Larry the cat ‘enters’ race to become next PM

Downing Street’s ‘chief mouser’ has apparently thrown his collar in the ring to replace Boris Johnson

Twitter users were delighted to see billboards across London announcing that Larry the cat, No 10’s “chief mouser”, has thrown his collar into the ring to become the country’s next prime minister.

Either Liz Truss or Rishi Sunak will be declared as the new leader of the Conservative party on Monday, but the campaign team behind Larry4Leader has gone to extra lengths to ensure the tabby’s stance is known.

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British rural voters ‘ignored’ by Liz Truss and Rishi Sunak

Tory leadership hopefuls ‘taking countryside voters for granted’ and neglecting pressing issues, says CLA business group

Neither of the candidates for leadership of the Conservative party has made a convincing pitch to rural voters, despite that demographic being one of the biggest sources of Tory power, the head of the UK’s biggest rural business organisation said.

Mark Tufnell, president of the Country Land and Business Association (CLA), which represents about 30,000 landowners and rural businesses, said Liz Truss and Rishi Sunak had done too little to show how they would boost the countryside economy and deal with pressing concerns such as planning, rural broadband, and farm support.

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‘Curse of Heseltine’: how the wheels came off Rishi Sunak’s No 10 campaign

Ex-chancellor was leading frontrunner in the race to succeed Boris Johnson but his dreams soon unravelled

One of the most familiar refrains of the Conservative leadership contest was candidates earnestly inviting comparisons to Margaret Thatcher.

But after his resignation as chancellor brought down Boris Johnson’s wobbling house of cards, a Tory insider said Rishi Sunak found himself with “the curse of Heseltine hanging round his neck”.

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Boris Johnson says ‘madness’ not to build Sizewell C nuclear plant as he promises £700m investment – UK politics live

Latest updates: outgoing prime minister promises investment in nuclear power in Suffolk and says he is ‘confident’ it will get over the line

Speaking from Sizewell in east Suffolk, Boris Johnson begins by talking about a “much-thumbed” Ladybird book he owned as a child, which was called The Story of Nuclear Power.

He says he was “enthralled” to read how UK scientists split the atom for the first time at the Cavendish laboratories in Cambridge. He said he noted how the world’s first civilian nuclear power station was built in Cumbria.

I look back at the optimism in the pages of that book and I look at what has happened since and at the short-termism of successive British governments and their failure to do justice to our pioneering nuclear history … and I feel like one of those beautifully drawn illustrations of that Ladybird book of what happens in a nuclear pile.

The graphite rods are taken out at the wrong moments and my blood starts to boil and steam starts coming out of my ears and I think I’m going to meltdown. I ask myself the question: ‘What happened to us?’.

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Liz Truss and Rishi Sunak make final bids to impress Tory members before new PM is chosen – UK politics live

At the final leadership hustings, the two candidates have one last opportunity to sell themselves to Tory members

The Transport Salaried Staffs’ Association has announced a countrywide 24-hour strike as part of an ongoing dispute over pay, job security, and working conditions.

The union said that staff at nine train operating companies as well as Network Rail would strike from midday on Monday 26 September until midday the following day.

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Politicians view face-to-face interviews as ‘all risk’, says Nick Robinson

BBC journalist says ‘broadcast interviews matter for the health of our democracy’ after Liz Truss cancels one-on-one encounter

Politicians feel television and radio grillings are “all risk” with almost “no opportunity”, Nick Robinson has said after Liz Truss cancelled an interview with him at the last minute.

The Conservative leadership frontrunner was to be interrogated by the senior BBC journalist in a face-to-face interview due to be broadcast at 7pm on Tuesday on BBC One. However, she pulled out on Monday because she could “no longer spare the time”.

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New Tory leader urged to scrap MPs’ break for party conferences amid cost of living crisis

Exclusive: Ministers encouraged to stay at Westminster to devise emergency plans to address cost of living crisis

The next Conservative leader has been urged to scrap MPs’ four-week break for party conference season and told it would be “immoral and insulting” to go “missing in action” during the worsening cost of living crisis.

With the Commons due to go into recess for a month in mid-September for the parties’ annual conventions, ministers were encouraged to remain in Westminster to devise and debate emergency plans for supporting struggling people through the winter.

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Liz Truss ponders VAT cut of 5 percentage points amid cost of living crisis

Tory leadership frontrunner understood to have discussed move, with final decision coming after contest ends

Liz Truss is considering whether to reduce VAT by five percentage points across the board, which could save families £1,300 a year, it was reported.

The foreign secretary is understood to have discussed the move with her advisers but no final decisions will be taken until the Conservative leadership contest concludes on 5 September, according to the Sunday Telegraph.

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Unions threaten ‘waves of industrial action’ over UK cost of living crisis

Move could see synchronised strikes in autumn as new prime minister takes office

Britain is facing a wave of coordinated industrial action by striking unions this autumn in protest at the escalating cost of living crisis, the Observer can reveal.

A series of motions tabled by the country’s biggest unions ahead of the TUC congress next month demand that they work closely together to maximise their impact and “win” the fight for inflation-related pay rises.

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Truss and Sunak clash on energy costs at penultimate Tory hustings

Truss remained loath to ‘bung money’ at those struggling to afford spiralling bills, Sunak said millions may be forced into destitution

Liz Truss has doubled down on her reluctance to “bung more money” at those who will struggle to afford spiralling energy costs this winter while Rishi Sunak said millions may be forced into destitution without extra support, as the pair clashed at the penultimate hustings of the Conservative leadership race.

With energy regulator Ofgem expected to raise the price cap to £3,500 a year from October for the average dual-fuel tariff, Truss warned the issue of spiralling fuel costs was not a short-term one. “If people think this problem is going to be over in six months they are not right. This is a long term problem,” she told the audience in Norfolk.

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Truss and Sunak face Tory hustings after both say Covid lockdown went too far – as it happened

Latest updates: Tory leadership frontrunner reacts to Sunak comments, saying school closures went too far; pair meet Tory members in Norwich

Lee Cain, who was director of communications in Downing Street during the early phase of the Covid crisis, says Rishi Sunak’s comments about the lockdown policy (see 9.22am and 9.47am) are “simply wrong”.

But Sunak is not saying lockdown should not have happened, as Cain suggests. He is just saying that it was implemented too rigidly, and perhaps for too long, and that more consideration should have been given to the downsides.

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Sunak accused of ‘rewriting history’ by saying No 10 ignored lockdown harms

Tory leadership hopeful says he was prevented from raising negative effects of Covid measures

Rishi Sunak has been accused of trying to “rewrite history” after he claimed the harms of lockdown were ignored, meaning curbs on people’s freedoms may have gone on too long and been overly strict.

The Conservative leadership hopeful was criticised for his account of the discussions at the heart of government when he was chancellor amid frantic attempts to curb the spread of the virus and avoid the NHS becoming overwhelmed.

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Sunak says it was a mistake to ‘empower scientists’ during Covid pandemic

Ex-chancellor admits being furious about school closures, adding trade-offs of lockdowns were not properly considered by experts

Rishi Sunak has claimed that it was a mistake to “empower scientists” during the coronavirus pandemic and that his opposition to closing schools was met with silence during one meeting.

The Conservative leadership candidate believes one of the major errors was allowing the Scientific Advisory Group for Emergencies (Sage) to have so much influence on decision making such as closing nurseries, schools and colleges in March 2020.

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Next PM could face £23bn autumn spend to cover £900 rise in energy bills

Energy prices have soared above prediction and subsidies will require significant further spending

Ministers could face an additional £23bn price tag for covering extra household energy costs of £900 this autumn, rising to £90bn next year, a new paper by the Institute for Government has found.

The paper, looking at the options for Liz Truss or Rishi Sunak in No 10, also warned the government should plan for prolonged rises in energy bills by going a lot further in making public appeals to use less gas – for example by informing consumers about the cost savings from turning down thermostats – and in committing to building more energy efficient homes to help protect consumers.

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Liz Truss refuses to commit to appointing ethics adviser

Tory leadership hopeful says there is no need for independent body as she has ‘always acted with integrity’

Liz Truss has refused to commit to appointing an ethics adviser if she became prime minister, saying she has “always acted with integrity”.

At the Conservative leadership hustings in Birmingham on Tuesday night, Truss declined to directly answer whether she would appoint someone to the role, instead saying she would “ensure the correct apparatus is in place so that people are able to whistle-blow”.

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Tory leadership hustings – Birmingham: Liz Truss confirms she will allow new grammar schools – as it happened

This live blog is now closed. You can read our latest story on the leadership contest here:

The cross-party Commons Treasury committee has expressed concerns about reports that Liz Truss, the frontrunner in the Tory leadership contest, may hold an emergency budget in September without asking the Office for Budget Responsibility to update its fiscal and economic forecast.

The OBR usually publishes a new forecast alongside a budget, and it provides an independent assessment of what impact the budget measures will have. The system was put in place by George Osborne to discourage the Treasury from making dubious claims about what its tax and spending announcements might be able to achieve.

OBR forecasts provide transparency and reassurance to the markets on the health of the nation’s finances. As a committee, we expect the Treasury to be supporting and enabling the OBR to publish an independent forecast at the time of any significant fiscal event, especially where, unlike other recent fiscal interventions, this might include significant permanent tax cuts.

Whether such an event is actually called a budget or not is immaterial. The reassurance of independent forecasting is vital in these economically turbulent times. To bring in significant tax cuts without a forecast would be ill advised. It is effectively ‘flying blind’.

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Tory big beasts put careers on line with aggressive criticism of Truss

Analysis: Strength of attacks suggests they come from strong belief that frontrunner’s policies are wrong

There has been no shortage of cabinet big beasts willing to place their careers on the line for the failing Tory leadership campaign of Rishi Sunak. Michael Gove, Dominic Raab and Matt Hancock – not to mention Sunak himself – have not held back in their aggressive criticism of Liz Truss.

Traditionally, in the dying days of a leadership contest, some of the animosity dissipates as the likely losing candidate assesses their prospects of a job in a new administration. However, Sunak and his supporters have been vehement in their attacks on Truss’s economic policies, with the strength of their criticism increasing in recent days.

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