London Daily

Focus on the big picture.
Friday, Aug 07, 2026

Tory conference: Liz Truss will lose 45p tax rate vote, says Shapps

Tory conference: Liz Truss will lose 45p tax rate vote, says Shapps

Liz Truss would lose a Commons vote on cutting the top rate of income tax, former cabinet minister Grant Shapps has told.

Scrapping the 45% top rate was a key part of last Friday's mini-budget aimed at boosting growth.

But it has faced a growing backlash from Conservative MPs after market turmoil and a big slide in the polls.

Michael Gove earlier hinted that he would vote against it - but Mr Shapps has now gone further.

The former transport secretary warned Ms Truss not to have a "tin ear" to voters' concerns about rising living costs and to do a U-turn as soon as possible.

"Let's not muddy the water with... tax cuts for wealthy people right now, when the priority needs to be on everyday households," he said.

MPs are not likely to get a chance to vote on the tax changes until next spring, but Mr Shapps suggested enough Tory MPs would join forces with Labour and other opposition parties to defeat it.

"I don't think the House is in a place where it's likely to support that," he told the BBC on the first day of the Conservative conference in Birmingham.

Like others who supported Rishi Sunak in the Tory leadership contest, Mr Shapps was fired from the cabinet by Ms Truss when she became prime minister.

But Mr Shapps insisted he was not being unhelpful to the new PM. "Sometimes budgets go wrong when they're announced," he said.

He cited former Chancellor George Osborne's 2012 Budget - dubbed the "omnishambles" - as an example of when economic policies have been "quickly reversed".

"And you know what? We went on to win the next election. So I mean this to be entirely helpful. There is a way through this. But the way through isn't to put fingers in the ear."

Instead of just "pushing on" with the 45p top rate cut, he said the government "needed to actually recognise that we're trying to do something here, which really isn't possible at this moment".

Later on Monday, Chancellor Kwasi Kwarteng will use his Conservative conference speech to insist the government will "stay the course" on his tax-cutting growth plan, arguing that without tax reform the country is heading for "slow decline".

Earlier, Conservative Party chairman Jake Berry warned that Tory MPs who voted against the prime minister's tax measures would be kicked out of the parliamentary party - known as losing the whip.

Talking to Sky News, Mr Berry urged Conservatives to back the prime minister, adding: "I'm sure that if we do that it will lead ultimately to long-term electoral success."

But former Levelling-Up Secretary Michael Gove - who also backed Mr Sunak in the leadership contest - said there were "two major" problems with the prime minister's plans.

"The first is the sheer risk of using borrowed money to fund tax cuts - that's not Conservative," he said.

The second, he argued, was to cut the top rate of income tax and scrap the cap on bankers' bonuses "at a time when people are suffering".

Asked if Ms Truss would be prime minister this time next year, he said she would but added: "There needs to be a course correction."

And asked on the Telegraph's Chopper's Politics Live podcast if the prime minister had a mandate for her tax changes, Mr Gove argued she did for changes to National Insurance and corporation tax - because she had campaigned for them during the leadership contest.

But he added: "What was not discussed was the prospect of income tax cuts, particularly income tax cuts for the very wealthiest."


Watch Grant Shapps: "Let's not muddy the water with... tax cuts for wealthy people right now"


Newsletter

Related Articles

0:00
0:00
Close
HMRC’s 2029 Tax Shift Could Overlap Old and New Self-Assessment Bills
Thetford Disorder Prompts Expanded Police Powers Amid Asylum-Housing Protests
Cambridge Faces Calls for Independent Review of Jason Arday Appointment
Scotland’s ‘Cock of the North’ Woodland Is Being Felled After Wind Damage
Reform UK and Greens Unite Against Vast Solar Plans for Kent Marshland
New Zealand Draws Wealthy Americans With Revamped Investor Visa
Senate Panel Votes to Hold Anthony Fauci in Contempt After Fifth Amendment Testimony
Cambridge Professor Jason Arday Resigns as University Opens Inquiry Into His Credentials
Manchester Power Failure Disrupts Trains Across North West Into Friday
UK Fashion and Tourism Sectors Prepare for Strong Summer and Autumn Activity
London Residents Seek Appeal Against Approval for Chinese Super-Embassy Development
UK Environment Officials Issue Biosecurity Alert Over Rising Bluetongue Cases in Livestock
UK Charity Regulator Opens Investigations Into Donations Linked to Israeli Settlements
Gatwick Expansion and Chinese Embassy Plans Highlight Growing UK Infrastructure Disputes
UK Agriculture Authorities Warn of Rising Bluetongue Virus Cases Among Sheep Farms
UK Watchdog Finds Electronic Monitoring Failures Leaving Some Offenders Without Timely Alerts
Metropolitan Police Investigate Covent Garden Knife Attack That Injured Four Men
UK Government Confirms Severe Terror Threat Level as Prevent Programme Expands
Diageo Plans Guinness Expansion While Cutting Jobs Through Global Restructuring Programme
Bank of England Keeps UK Borrowing Costs Stable While Markets Await Future Rate Cuts
Gatwick Airport Wins Approval for Second Runway Expansion After Legal Challenges Fail
Apple Challenges UK Government Over Demand for Access to Encrypted iCloud Data
London Approves First Autonomous Taxi Licences for Wayve and Uber Passenger Trials
UK Artificial Intelligence Safety Institute Finds Advanced AI Models Showing Deceptive Behaviour in Security Tests
UK Small Boat Channel Crossings Fall Forty-Three Percent as Government Highlights France Cooperation
UK Government Plans Procurement Reforms to Boost British Jobs and Domestic Steel Supply Chains
Bank of England Holds Interest Rates at Three Point Seven Percent as Inflation Stays Above Target
EY Raises UK 2026 Growth Forecast to Zero Point Nine Percent as Energy Risks Remain a Concern
UK Artificial Intelligence Regulation and Public Infrastructure Investment Remain Key Policy Focus Areas
Kemi Badenoch Faces Criticism Over Appointment of Former Neo-Nazi Linked Figure to Advisory Role
AG Barr Reports £10 Million Sales Loss After Supply Chain and Planning Failures
UK Government Fast-Tracks Specialist Care Pathways for Motor Neurone Disease Patients
UK Government Connects More Than 60,000 Rural Homes and Businesses to Gigabit Broadband
Next Raises Full-Year Profit Forecast After Strong Summer Sales
Metropolitan Police Arrest Woman After Four Men Stabbed in Central London’s Covent Garden Area
UK Procurement Reform and Infrastructure Spending Signal New Focus on Regional Economic Growth
UK Government Expands Global Talent Visa Access for International Researchers and Innovators
NHS Launches £343 Million Expansion of Community Mental Health Centres Across England
UK Treasury Explores Higher Borrowing Capacity for Infrastructure and Housing Investment
UK Cabinet Office Reforms Procurement Rules to Direct £90 Billion of Public Spending Toward Jobs and Skills
UK Government Considers Public Inquiry Into Jeffrey Epstein’s Activities and Possible Institutional Failures
Britain’s AI Safety Institute Finds Advanced Models Creating Fake Identities and Malicious Code During Tests
Lightning Strike Kills Yala FC Player During Match in Southern Thailand
Senate Scrutinises AI-Driven Personalised Pricing
Spain Seeks Mainland Transfers for 1,100 Children Stranded in Ceuta
UK Government Pushes New Procurement, Skills and Technology Policies Amid Economic Pressure
UK Charity Commission Investigates Donations Linked to Israeli Settlement Groups
UK Government Faces Pressure Over Possible Windfall Tax on Bank Profits
South East Water Provides Emergency Support After Kent Supply Disruptions
UK Defence Supports US Operation to Seize Russian-Flagged Oil Tanker in North Atlantic
×