Secret talks to remove Truss: Tax decision may topple UK Prime Minister

UK Prime Minister Liz Truss is facing a political crisis that may topple her from her position as a result of her economic plan, which has been the subject of controversy in British circles recently.

Plans to oust Truss

The Daily Mail reported Sunday that a number of parliament members will try to oust Truss this week, despite Downing Street's warning that this could lead to a general election that the country will not currently tolerate, either politically or economically.

The newspaper quoted unidentified sources as saying that more than 100 parliament members belonging to the ruling Conservative Party are ready to submit letters of no-confidence from Truss to Graham Brady, head of the Conservative Party committee that organizes the leadership election.

Britain, mired in a political crisis, has lost three prime ministers since it voted to leave the European Union in 2016, according to Reuters.

The Reuters report added that Brady is resisting the move, saying that “Truss and newly appointed Chancellor of the Exchequer Jeremy Hunt deserve an opportunity to put an economic strategy in the budget on October 31.”

On the other hand, the Times said that some members of parliament held secret talks about replacing Truss with a new leader.

The newspaper wrote on Sunday that “Hunt is in control as the plotters surround a weak prime minister,” noting that the Conservatives are still seeking a way to remove Truss from power.

The newspaper pointed out that confidence “will not be restored as long as she is” in her position, defending Rishi Sunak, the rival of Truss, whom she defeated in the party's presidential elections.

Sunak is moving behind the scenes with Conservative deputies to take the initiative, the newspaper reported.

The Times also indicated that Defense Secretary Ben Wallace is seen as a potential candidate to succeed Truss.

‘The game is up'

“I think the game is up and the question now is how to manage her succession phase,” long-serving Conservative MP Crispin Blunt told Britain's Channel 4.

Alicia Kearns, the new chair of the foreign affairs committee, said the question of whether or not Truss should stay in Downing Street was “extremely difficult”.

“Our moral credibility has been called into question (under Boris Johnson) and now they are asking questions about our financial credibility,” she said on Times Radio.

Truss defends low-tax agenda

Truss partly backed away from her government's economic plan. She said on Friday that Britain's corporate tax would be raised to 25% from April next year, rather than keeping it at 19% as part of her government's initial “mini-budget”.

In an attempt to calm financial markets, Truss fired Finance Minister KwasiKwarteng on Friday and scrapped provisions from their controversial economic program, even though they worked out the plan together, according to Reuters and AFP.

In an article published by The Sun on Sunday, Truss stressed her commitment to what she called “a high-growth, low-tax economy”. She considered the dismissal of her friend Kwarteng from the post of Minister of Finance was “a wrench”.

“We cannot pave the way for a low-tax, high-growth economy without maintaining market confidence in our commitment to making the right money,” Truss said in her article.

Controversial plan

That confidence was jeopardized on September 23 when Kwarteng and Truss unveiled a right-wing program, inspired by US President Ronald Reagan's plan in the 1980s, worth 45 billion pounds ($50 billion) of tax cuts financed exclusively from high debt, according to AFP.

The markets slumped, as a result, leading to higher borrowing costs for millions of Britons. The Conservatives popularity has fallen in opinion polls, causing an open war in the ruling party just weeks after Truss succeeded Boris Johnson.

New financial plan

New Chancellor of the Exchequer Jeremy Hunt is now dismantling tax cuts as he presses for cuts in government spending by his Cabinet colleagues while Britons grapple with a cost-of-living crisis.

In an interview with the BBC on Sunday, Hunt said, “It will be very difficult and I think we have to be frank with the people about that.”

Britain's appointed finance minister said that Truss was in charge of the government and dismissed the idea that the party should replace her after her turbulent start in office, according to Reuters.

When asked about demands to replace Truss, he said voters wanted stability and “the worst thing that could happen is more political instability at the top and another extended campaign for leadership.”

Hunt met Truss at the prime minister's rural residence on Sunday to draw up a new budget plan that is due to be presented on October 31, according to AFP.

Hunt promised to restore “Britain's economic credibility by fully accounting for the government's plans for taxation and spending while insisting that Liz Truss remain in charge of the government.”

The Sunday Times said Hunt would cancel more of the original Truss package by delaying a planned reduction of the basic rate of income tax as part of a desperate attempt to balance it.

The newspaper quoted Britain's independent Financial Supervisory Authority as saying in a draft forecast that there could be a gap of 72 billion pounds ($80 billion) in the public finances by 2027-2028, which is worse than economists had expected.

On Sunday, several unions threatened to resort to strikes across the country at a time when the government wants to limit the right to strike in light of the escalation of social mobility.

The Finance Ministry declined to confirm reports that Hunt was planning to delay a planned reduction in the basic rate of income tax, removing another key measure announced by the government last month, according to AFP.

With polls showing support for both the ruling Conservative Party and the prime minister personally, Truss is counting on Hunt to help salvage her premiership after nearly 40 days in office.