Labour surges as Tory fears grow over Truss’s tax cut agenda

Likely PM’s policies will mean ‘big trouble’, say critics, as Starmer’s energy price initiative boosts him in polls

Senior Tories have warned that their party will suffer dire electoral consequences under a Liz Truss premiership that fails to address the cost of living crisis, as Labour enjoys a poll bounce suggesting Keir Starmer could be on course for No 10.

Amid signs of mounting panic among high-ranking Conservatives about Truss’s economic policies, several former cabinet ministers told the Observer on Saturday the party would suffer devastating losses in blue and red wall seats unless Truss changes tack, if and when she enters No 10.

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Glum Sunak supporters hold out for gamechanging gaffe from Truss

With Tory members seeming to tolerate a series of missteps, the frontrunner is on course for No 10 – barring a ‘spectacular foul-up’

Rishi Sunak’s supporters are understandably glum, but one thing alone means they have not totally given up hope of defeating Liz Truss. “We’re crossing our fingers for a gamechanging gaffe,” says one Conservative MP who has ended up supporting Sunak after initially backing another candidate.

John Curtice, the polling expert from Strathclyde University, this week put Sunak’s chances of victory at just 5%, saying Truss was almost sure to win unless she “fouls up in some spectacular fashion” in the final stages of the Tory leadership contest.

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Gove backs Sunak and says Truss is ‘taking holiday from reality’

Former cabinet minister says he does not expect to return to frontbench politics as he backs underdog in race to be PM

Michael Gove has thrown his support behind Rishi Sunak in the Conservative leadership contest, warning that Liz Truss’s refusal to offer more support over rising energy bills and to just focus on tax cuts marked a “holiday from reality”.

In a sometimes hard-hitting article in the Times, Gove said he did not expect to be made a minister again and that many people expected Truss to win, but he believes Sunak “makes the right arguments”.

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Liz Truss called for patients to be charged for GP visits, 2009 paper reveals

PM hopeful co-authored pamphlet that also called for doctors’ pay to be slashed by 10% and abolition of universal child benefit

Liz Truss called for patients to be charged to see their GP and for doctors’ pay to be slashed by 10% in a pamphlet she co-authored in 2009, the unearthed document has revealed.

The Tory leadership frontrunner also wanted to see the universal child benefit abolished in the report, which she co-wrote with six other people when she was deputy director of the Reform thinktank.

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UK’s 10% inflation casts doubt on Truss and Sunak’s tax cut promises

Soaring cost of living is forcing up government spending on benefits, pensions and debt leaving no spare cash to lower taxes

Britain’s first double-digit inflation in more than four decades has cast doubts on the plausibility of the tax cuts being promised by Liz Truss and Rishi Sunak during their leadership battle, one of the UK’s leading thinktanks has said.

Following news that the government’s preferred measure of the cost of living rose by 10.1% in the year to July, the Institute for Fiscal Studies said higher inflation would mean extra spending on welfare benefits, state pensions and on debt interest.

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Political strategist calling Sunak-backing MPs to win them over to Truss camp

Exclusive: Mark Fullbrook having ‘long conversations’ with high-profile potential switchers

A veteran political strategist who used to work for Boris Johnson has been phoning senior Conservatives currently supporting Rishi Sunak to persuade them to back Liz Truss for prime minister.

Mark Fullbrook, who ran the prime minister’s successful leadership bid in 2019, has been playing a key role in the foreign secretary’s bid to win over more high-profile Tory MPs to cement her frontrunner status.

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Liz Truss’s plan for cost of living crisis would lead to ‘moral failure’, says Rishi Sunak – UK politics live

Former chancellor says foreign secretary’s tax cut plan would provide no support for pensioners or other vulnerable groups

London’s mayor has warned of a rise in shootings and stabbings amid concerns that the increasing cost of living could lead to more violence and make it easier for gangs to lure vulnerable young people.

Sadiq Khan said millions of pounds more were being put into schemes to turn people away from violence. The Labour mayor has been criticised by some for his record on crime.

I am concerned about a potential increase in violence this summer as the cost of living crisis deepens and threatens to reverse the progress we have made in tackling violent crime. Violence, like poverty, is not inevitable and the government must now do much more to show it shares my commitment to building a fairer, safer London for all.

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Liz Truss faces Rishi Sunak in leadership hustings after comments about British workers leaked – as it happened

Latest updates: leaked audio reveals favourite to be next PM said British workers lacked the ‘graft’ of their foreign rivals

Keir Starmer said the biggest cause of division in Scotland was the Conservative party.

The Labour leader said:

The single biggest driver of division in Scotland is the Tory party in Westminster.

I want to hold our UK together, I want to make a positive case for the UK as we go forward.

I think that this assumption that most people can afford these massive hikes in their energy bills is completely wrong.

I think the government in making that argument is completely out of touch.

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Sunak and Truss rule out freezing energy prices at leadership hustings

Rival candidates questioned in Perth after frontrunner Truss makes belligerent remarks about Sturgeon

Rishi Sunak and Liz Truss have ruled out freezing energy prices by claiming it would be an expensive, short-term fix that would fail to solve the underlying problem with soaring energy costs.

The Conservative leadership contenders were questioned on whether they would back Labour’s new strategy to fix the domestic energy cap during a leadership hustings at Perth Concert Hall on Tuesday night.

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Liz Truss cabinet predictions: who could be in and who would lose out?

Analysis: Kwasi Kwarteng and Thérèse Coffey could be among the big winners if Truss becomes PM

Liz Truss has three weeks before she is likely to walk through No 10’s black door as prime minister, facing a difficult in-tray. Here we take a look at how senior roles could shape up.

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Truss and Sunak woo Tory members with lukewarm stance on climate

Analysis: noncommittal positions of leadership hopefuls on tackling climate crisis may be short-sighted

It’s the driest, hottest summer in 50 years, yet the Conservative leadership candidates appear to be fiddling while Britain burns.

Rishi Sunak and Liz Truss have barely been asked anything about their plans for tackling the climate emergency in all their debates and hustings so far – and nor have they made it a leading campaign issue themselves.

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Keir Starmer defends Labour’s response to cost of living crisis – as it happened

Labour leader hits back at criticism saying his party has been ‘leading’ on the issue

Keir Starmer has teased Labour’s package to tackle the cost of living crisis, saying his party would end energy prepayment premiums which he claims would offer 4m households relief on bills.

The announcement, which came in what is reportedly his first tweet this month, follows criticism of Labour’s inaction on the cost of living crisis.

Every organisation has its culture, but it’s not fixed, it can be changed.
That’s what ministerial leadership is about: it’s about making sure that the policies we represent, the values we stand for, are reflected in what we do.

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Tory leadership: Sunak frustrated government attempts to realise benefits of Brexit, Truss allies claim – UK politics live

Latest updates: foreign secretary’s supporters accuse former chancellor of resisting changes to EU regulation as sixth hustings looms

Gordon Brown, the former Labour prime minister, has used an article in today’s Guardian to propose that the government should halt the increases in the energy price cap planned for later this year and next year and, if necessary, take energy companies into public ownership to ensure that they keep prices down.

Alongside the Lib Dem plan, with which it has some similarities (they also want a price cap freeze, and more money raised through a windfall tax), it is the most radical and ambitious proposal on the table to tackle the energy bills crisis.

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Sunak accuses Truss of major U-turn after she says she will do ‘all I can to help struggling households’ with fuel bills – UK politics live

Tory leadership contender says rival had previously dismissed direct support as ‘handouts’

Suella Braverman, the attorney general, is giving a speech to the Policy Exchange thinktank on equalities and rights. There is a live feed here.

In a preview of the speech published in the Daily Telegraph, Braverman says she wants to clarify the law on trans rights as it applies in schools. She says:

When it comes to gender-questioning children, we should always have compassion. At the same time, our compassion should never blind us to the harm it is possible to do to children by misplaced affirmation. Many schools and teachers believe – incorrectly – that they are under an absolute legal obligation to treat children who are gender questioning according to the preference of the child. Many are scared of the consequences of not doing so.

I want to make it clear that it is possible, within the law, for schools to refuse to use the preferred opposite-sex pronouns of a child.

The UK and partners have condemned in the strongest terms China’s escalation in the region around Taiwan, as seen through our recent G7 statement.

I instructed officials to summon the Chinese ambassador to explain his country’s actions.

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With Keir Starmer on holiday, Labour treads water on cost of living

Analysis: Gordon Brown, Martin Lewis and Ed Davey are the voices being heard, as the opposition is left with the same policy as Sunak

Gordon Brown has thrown down the gauntlet with his plan to halt a winter energy crisis – but not just to the Tory leadership candidates. The call to revoke the energy price cap and consider nationalising energy firms will attract a lot of attention but fundamentally it is also a chance for Labour to choose to be radical. It is likely to compound calls from activists for the party to find a new sense of urgency.

In the middle of August, politicians can often afford to take long breaks away from Westminster to recharge – and sometimes get a valuable dose of perspective. But the extent to which politicians – including those in the Labour party – have gone missing this summer is particularly striking.

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Liz Truss doubles down on tax cuts over support for energy bills

Foreign secretary had previously said she did not want to give ‘handouts’ to people struggling with the cost of living

Liz Truss has doubled down on her refusal to offer significant help to people with soaring energy bills this winter, despite a forecast that these could exceed £4,200 annually from January, and rise further during 2023.

Truss, the runaway favourite to succeed Boris Johnson as prime minister next month, has already said she does not want to give “handouts” to people struggling with bills, preferring to prioritise tax cuts.

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Truss and Sunak accused of ‘living in parallel universe’ on bills crisis – UK politics live

Latest updates: Lib Dem leader says Tory leadership hopefuls have no plan to help millions of families struggling with price rises

The Joseph Rowntree Foundation, a leading poverty charity, says, in the light of the latest forecast about how energy bills will rise (see 10.54am), the government needs to at least double the help already provided to help people through the cost of living crisis. This is from Peter Matejic, its chief analyst.

The latest projections of annual energy bills exceeding £4,200 from January is the latest in a series of terrifying warnings over the past week, from the Bank of England and others. Families on low incomes cannot afford these eye watering sums and as a nation we can’t afford to ignore an impending disaster.

Both candidates to be prime minister must now recognise the extraordinarily fast-changing situation and act to protect the hardest hit from the coming emergency.

Unite said the 4% increase for staff in middle pay bands announced by the government last month is a “massive pay cut” because of soaring inflation.

The union will now consult with its 100,000 health members across the NHS in both England and Wales on whether they accept the “imposed deal” or want to challenge it through industrial action, which could mean strikes this winter.

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Truss and Sunak still haven’t grasped the magnitude of Britain’s cost of living crisis

Sunak says Truss’s plan to reverse the increase in national insurance ‘won’t touch the sides’ but neither will his

Britain is facing a cost of living crisis this winter more brutal than any in living memory. Annual energy bills for the average household are set to hit £300 a month from October, almost double the current level. Spending power will be sucked out of the economy as millions of households struggle – and fail – to make ends meet. The courts will be clogged up with people prosecuted for falling behind with their payments.

That’s the situation facing the two hopefuls slugging it out to be the country’s next prime minister, yet neither Liz Truss nor Rishi Sunak yet seems to have grasped the magnitude of the problem, in public at least.

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Penny Mordaunt denies Liz Truss is ruling out more help for poor this winter

Truss said she would lower taxes not give ‘handouts’, but ally says future support is not off the table

A senior ally of Liz Truss has played down suggestions she ruled out more emergency support payments to help people struggling through the worsening cost of living crisis this winter.

Penny Mordaunt, who is backing the frontrunner in the Tory leadership race, said Truss’s comments had been misinterpreted and she wanted to prioritise tax cuts.

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Truss-Sunak contest leaves Brussels pessimistic about relations with UK

EU officials see little hope of escape from post-Brexit low under either Tory candidate

European officials are pessimistic about a reset in post-Brexit relations with the UK, whoever becomes Britain’s next prime minister in September.

Whether it is Liz Truss or Rishi Sunak who is handed the keys to Downing Street on 5 September, officials in Brussels have little hope of a rapprochement with the new government.

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