London Daily

Focus on the big picture.
Monday, Jan 05, 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
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
Starmer and Trump Coordinate on Ukraine Peace Efforts in Latest Diplomatic Call
The Pilot Barricaded Himself in the Cockpit and Refused to Take Off: "We Are Not Leaving Until I Receive My Salary"
UK Fashion Label LK Bennett Pursues Accelerated Sale Amid Financial Struggles
U.S. Government Warns UK Over Free Speech in Pro-Life Campaigner Prosecution
Newly Released Files Shed Light on Jeffrey Epstein’s Extensive Links to the United Kingdom
Prince William and Prince George Volunteer Together at UK Homelessness Charity
UK Police Arrest Protesters Chanting ‘Globalise the Intifada’ as Authorities Recalibrate Free Speech Enforcement
Scambodia: The World Owes Thailand’s Military a Profound Debt of Gratitude
×