Liz Truss under pressure from senior Tory MPs to rethink tax cuts

The government may have to rethink its tax-cutting plans to reassure financial markets and stabilise the economy, some senior Conservative MPs have said.

The warnings came ahead of a bruising appearance for the prime minister at a meeting of Tory backbenchers.

One loyal minister told the BBC: “We are completely in a dreadful place. There is no way out – maybe Liz Truss will find a way, but I cannot see it.”

Ms Truss has repeatedly defended the proposed tax cuts outlined last month.

The chancellor’s mini-budget on 23 September, which included £45bn of tax cuts funded by borrowing, sparked turmoil on financial markets and prompted the Bank of England to intervene to protect pension funds.

Kwasi Kwarteng is due to set out how he will fund the package and reduce debt on 31 October.

Ms Truss insists cancelling a rise in corporation tax from 19% to 25% due in April and other tax cuts will help boost growth.

The prime minister also believes stepping back from what she describes as the…

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