Priti Patel breaks cover to claim ‘markets will dictate’ Tory U-turn

Priti Patel says the ‘markets will dictate’ Tory u-turn on tax cuts

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In her first interview since returning to the backbenches, the former Home Secretary suggested the decision over whether to scrap planned tax cuts could well be out of the Government’s hands. Priti Patel has reported the “markets will dictate” if the Chancellor is forced to make a U-turn on corporation tax cut pledges. Her statements come after Prime Minister Liz Truss was forced to make a screeching U-turn on the plan to scrap the top rate of income tax amid huge political and public backlash.

Political editor for Sky News, Beth Rigby asked Priti Patel if she thought a U-turn on the planned cuts to corporation tax rates would be a “sensible” idea.

The Tory MP responded: “Market forces will probably dictate some of these changes now, the market is going to dictate this.”

“Primarily, because we want to see stability – stability is absolutely crucial.”

Fallout from the Chancellor’s mini-budget has sparked economic turmoil as the Bank of England was forced to intervene to prevent a collapse of some pension funds in wake of his Common’s announcement.

Speaking to the Conservative Party Conference in Birmingham, the Prime Minister stood firm on the mini-budget policy as she declared: “We are keeping corporation tax at 19 percent, the lowest in the G20.”

Under her predecessor Boris Johnson, the former Chancellor Rishi Sunak had planned a corporation tax hike from 19 percent to 25 percent.

Ms Truss had pledged to scrap this fiscal policy and maintain the 19 percent rate which places the UK tax rate significantly lower than the other G7 countries and the lowest among the G20 nations.

However, as the markets have continued to react feverishly to the drastic economic pledges of the Tory Government, there has been speculation that the Prime Minister could soon mark the second u-turn in her short premiership.

Read more: Truss eyes up tax U-turn in desperate bid to restore market confidence

The official spokesperson for Liz Truss doubled down on the comment of the Prime Minister on Thursday as Number Ten denied that any further changes would be made to the mini-budget plan.

However, reports later emerged of active discussions within Downing Street concerning which elements of the economic policy should be abandoned given both public and political criticisms.

Deputy political editor for Sky News Sam Coates reported: “Discussions are underway over which bits might yet be junked given the scale of the concern.”

Despite the speculation, the Chancellor has asserted he remains “focused” on delivering the growth plan previously outlined through his mini-budget.

Nicholas Watt of BBC Newsnight warned the UK to brace for “the mother of all u-turns on the mini budget”.

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Former Chancellor George Osborne has weighed in on the matter, urging the Prime Minister to fold under the pressure of an “inevitable” U-turn. Labour’s former shadow chancellor Ed Balls later chimed in to declare he agreed with Mr Osborne.

In a bid to quell concerns, Liz Truss told the House of Commons on Wednesday that there would be no cuts to public spending as a result of the new tax measures.

Members of the Conservative Cabinet have rallied around the Prime Minister and encouraged backbenchers to unite amid the difficult economic circumstances.

Business Secretary Jacob Rees-Mogg asserted: “It’s a policy that is beneficial for everybody – it’s better for businesses and it’s better for the Treasury.”

In an interview with The Telegraph, Chancellor Kwasi Kwarteng ominously replied “let’s see” when pressed over the potential for a corporation tax u-turn. He maintained that keeping the 19 percent rate was a “great idea” and would allow the UK to be “competitive” in the global market.

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