Tory MPs plot to avert welfare squeeze after humiliating U-turns

theguardian.com:

Conservative MPs are plotting to avert a squeeze on welfare after Liz Truss and Kwasi Kwarteng were forced into a humiliating U-turn on plans to abolish the 45% top rate of income tax.

In another reversal, the Guardian understands Kwarteng will also speed up plans for a new fiscal statement, expected to focus on spending and deregulation. It will now take place later this month, rather than on 23 November as previously scheduled, accompanied by new forecasts from the Office of Budget Responsibility, in another move designed to restore market stability.

Senior MPs warned of further rebellions over reductions in public spending, especially on benefits, which the chancellor has declined to rule out.

The threat came as the Institute for Fiscal Studies (IFS) and the Resolution Foundation said there would need to be significant cuts in public spending unless there were further U-turns on policies announced in the mini-budget last month.

In a brief and abashed Tory conference speech, Kwarteng admitted it had been a “tough day” – hours after rowing back on the tax cut for high earners. He said his economic plan had caused “a little turbulence”.

Kwarteng said the government was committed to its radical agenda – and would move soon to deregulate sectors including childcare, agriculture, immigration, planning and financial services.

But he also said the government would take fiscal discipline seriously, saying they were “absolutely committed to being serious custodians of the public purse”.

Truss and Kwarteng decided to ditch the cut to the 45% tax rate the night before the conference when the scale of rebellion by MPs made it clear it would not survive a parliamentary vote – with many other tough battles to come.

Cabinet ministers said