Chancellor Kwasi Kwarteng, fresh from his backdown over tax cuts, faces a new battle with Tory MPs over a previously promised benefits increase.
Chancellor under pressure to back benefits increase
UK Chancellor Kwasi Kwarteng risks a fresh battle with Tory MPs over benefits funding after being forced into a humiliating U-turn on plans to cut tax for top earners in the face of a revolt by party grandees.
The Chancellor said he wass “not committed to any spending” during an interview on LBC radio on Monday morning as he declined to commit to increasing benefits in line with inflation.
Failing to keep pace with rising prices would leave some of the poorest households facing a real-terms cut in their incomes.
It comes as the Government dramatically dropped its plans to abolish the 45% rate on earnings over £150,000 following widespread criticism.