London Daily

Focus on the big picture.
Saturday, Oct 25, 2025

Tory MPs back Sunak after prime minister’s threat to sack him

Tory MPs back Sunak after prime minister’s threat to sack him

Chancellor popular with fiscally conservative wing of party amid tensions over idea of carbon tax
Tory MPs have lined up to back Rishi Sunak as the defender of fiscal conservativism after Boris Johnson’s threat to sack him, as Treasury sources pushed back against the idea of a carbon tax.

No 10 insisted the prime minister had full confidence in Sunak but his spokesman did not deny Johnson had threatened to demote the chancellor to health secretary amid a row about a leaked letter pushing Johnson to ease Covid restrictions.

Johnson was rumoured to be considering a reshuffle in the autumn although his spokesman would only say there were no imminent plans for a shake-up.

Sunak is backed by the fiscally conservative wing of the Conservatives and is popular with party members, who view him as committed to keeping tight control of day-to-day spending.

There are several areas of tension between No 10 and No 11 Downing Street but the biggest unresolved areas of spending are how to reach the government’s net zero target and fund a new social care system, with both policies delayed until the autumn.

Kwasi Kwarteng, the business secretary, said on Monday morning that a carbon tax was under discussion, telling BBC Radio 4’s Today programme: “You can also go down a carbon tax route, and these policies we’re discussing with the Treasury.”

But Treasury sources pushed back on this idea, suggesting it was no longer considering a carbon border adjustment tax that could put up a levy on carbon-intensive imported goods.

Asked about the possibility of a carbon tax, a Treasury spokesman said: “We’re leading the world in building back better and greener from the pandemic. We were the first major economy to commit to net zero by 2050 and one of the first to phase out petrol and diesel car sales by 2030, and just last week we announced more ambitious carbon emissions targets.

“But this is about policies, not just targets, which is why the prime minister has outlined an ambitious 10-point plan to achieve our environmental goals.”

Under that 10-point plan, the Treasury’s “net zero review” is considering the “choices across our tax, spend, regulatory and other levers to maximise growth opportunities and ensure an equitable balance of contributions across society”. Sources close to Sunak have said he is trying to mitigate the costs of reaching net zero on lower income families.

Ahead of the autumn spending review, Mark Harper, the former Tory chief whip and leader of the lockdown-sceptic Covid Recovery Group, said he would back Sunak making efforts “to get us back on the road to fiscal responsibility”.

“I think we do need to get back to living within our means at some point, reasonably quickly. It also applies to people on my own side and the spending review, I think it is going to be quite tough and involve making some choices.”

Asked whether Johnson should keep Sunak in post, he said: “There is a bit of August in the stories but if anyone were to suggest moving the chancellor I think that would be a mistake. He was absolutely prepared to do what was necessary last year in an emergency but I think he recognises that we have got to reassert some fiscal discipline. And the public is quite [clear] about this too – that you do have to make choices.”

Another Tory MP said Sunak had substantial backing in the party that Johnson would be “unwise to test”. A third backbencher said he thought MPs recognised Sunak’s role in “trying to keep the PM on the straight and narrow” when it came to spending.

A government figure close to the chancellor told the Telegraph at the weekend: “If he demotes him he’s only signing his death warrant. There’s nobody else as good as Rishi.”

Speaking to broadcasters on Monday morning, Kwarteng backed Sunak to stay as chancellor but acknowledged it was in Johnson’s hands saying “that’s up to the PM” and adding: “I think Rishi is doing a great job as chancellor.”

Asked about the difficult relations in Downing Street, he said: “I happen to think the PM and chancellor get on very well generally. They are both very good … there are always disagreements. There is always going to be a slight creative tension between No 10 and No 11. I happen to think this PM and chancellor are working very effectively together.”

Despite fiscally hawkish conservatives expressing worries about the cost of net zero, there is also a large caucus of more than 100 Tory MPs under the Conservative Environmental Network who are championing policies that would help reach the target.
Newsletter

Related Articles

0:00
0:00
Close
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
Shouting Match at the White House: 'Trump Cursed, Threw Maps, and Told Zelensky – "Putin Will Destroy You"'
Windows’ Own ‘Siri’ Has Arrived: You Can Now Talk to Your Computer
Thailand and Singapore Investigate Cambodian-Based Prince Group as U.S. and U.K. Sanctions Unfold
‘No Kings’ Protests Inflate Numbers — But History Shows Nations Collapse Without Strong Executive Power
Chinese Tech Giants Halt Stablecoin Launches After Beijing’s Regulatory Intervention
Manhattan Jury Holds BNP Paribas Liable for Enabling Sudanese Government Abuses
Trump Orders Immediate Release of Former Congressman George Santos After Commuting Prison Sentence
S&P Downgrades France’s Credit Rating, Citing Soaring Debt and Political Instability
Ofcom Rules BBC’s Gaza Documentary ‘Materially Misleading’ Over Narrator’s Hamas Ties
Diane Keaton’s Cause of Death Revealed as Pneumonia, Family Confirms
Former Lostprophets Frontman Ian Watkins Stabbed to Death in British Prison
"The Tsunami Is Coming, and It’s Massive": The World’s Richest Man Unveils a New AI Vision
Outsider, Heroine, Trailblazer: Diane Keaton Was Always a Little Strange — and Forever One of a Kind
Dramatic Development in the Death of 'Mango' Founder: Billionaire's Son Suspected of Murder
Two Years of Darkness: The Harrowing Testimonies of Israeli Hostages Emerging From Gaza Captivity
EU Moves to Use Frozen Russian Assets to Buy U.S. Weapons for Ukraine
Europe Emerges as the Biggest Casualty in U.S.-China Rare Earth Rivalry
HSBC Confronts Strategic Crossroads as NAB Seeks Only Retail Arm in Australia Exit
U.S. Chamber Sues Trump Over $100,000 H-1B Visa Fee
Shenzhen Expo Spotlights China’s Quantum Step in Semiconductor Self-Reliance
China Accelerates to the Forefront in Global Nuclear Fusion Race
Yachts, Private Jets, and a Picasso Painting: Exposed as 'One of the Largest Frauds in History'
Australia’s Wedgetail Spies Aid NATO Response as Russian MiGs Breach Estonian Airspace
McGowan Urges Chalmers to Cut Spending Over Tax Hike to Close $20 Billion Budget Gap
Victoria Orders Review of Transgender Prison Placement Amid Safety Concerns for Female Inmates
U.S. Treasury Mobilises New $20 Billion Debt Facility to Stabilise Argentina
French Business Leaders Decry Budget as Macron’s Pro-Enterprise Promise Undermined
Trump Claims Modi Pledged India Would End Russian Oil Imports Amid U.S. Tariff Pressure
×