George Osborne clears path for tax cuts in Budget with £1bn benefits raid

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Tory party at war as Iain Duncan Smith allies slam ‘immoral cuts’



On Saturday, as the Conservative party descended into a savage war of words over the reasons for the resignation, friends of the prime minister and chancellor tried to undermine efforts by Duncan Smith to occupy the moral high ground, insisting he had personally agreed to the cuts last week and supported them at cabinet on the morning of the budget.

They also suggested that Duncan Smith – a supporter of Brexit – had been looking for several weeks for an opportunity to resign, and claimed that he wanted to find a moment when he could inflict maximum damage on the campaign led by Cameron and Osborne to keep Britain in the European Union.

A spokeswoman for Duncan Smith said it was “total rubbish” that he had resigned in order to advance the cause of Brexit, or that he had planned to do so for some time: “Downing Street are briefing this but it is simply not true.”

Duncan Smith’s allies said he had reluctantly gone along with the disability cuts in advance of the budget but had decided to quit when he felt he was being made to “carry the can” for the policy.

They also said that he had decided to go when he was told by Cameron on Friday that, although the policy announced in the budget would not be implemented in that form, he would still have to find an equivalent amount from the disability budget. “This is the dishonesty of it,” said an IDS aide. “It is not a U-turn at all.”

Writing in the Observer, Bernard Jenkin, a Tory MP and chair of the Commons public administration select committee, says that Duncan Smith was not prepared to tolerate another raid on the disability budget.

Referring to the prime minister’s letter to Duncan Smith, in which Cameron said he was “puzzled” by the resignation, Jenkin writes: “What that letter does not make clear is that the £4bn savings in the budget from welfare still stands and, once again, Iain was being told to find similar cuts from other benefits for working-age people – including for the disabled – again undermining the positive incentives that make it worthwhile for them to take work. That is what he finds morally indefensible.”

Last night it was unclear whether Duncan Smith would lay out his position further in a resignation statement in the House of Commons. He is due to appear on Sunday morning on the BBC’s Andrew Marr programme.

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George Osborne skips parliamentary session about problems with Budget and sends junior minister instead



George Osborne has been criticised for skipping a parliamentary question about the unraveling of his Budget – and for putting a junior minister up in his place.

The Government has backpedalled on a number of policies in just days since the Chancellor announced his spending plans for the coming year.

As well as a major U-turn on steep cuts for disability benefits, the Government has said it will not oppose a number of Labour amendments on issues including the so-called Tampon Tax and VAT on solar panels.

Conservative backbenchers have signed some of the Labour amendments – suggesting a rebellion when they come to a vote and a possible defeat for the Government, which only has a very small majority.

John McDonnell, Labour’s shadow chancellor has been granted an urgent question to ask about the changes – but the Government has said Mr Osborne will not reply himself.

Treasury minister David Gauke will field the questions from the dispatch box instead and reply for the Government.

Mr McDonnell branded Mr Osborne a coward for skipping the key scrutiny session.

“It is deeply disappointing that Osborne is cowardly hiding behind his junior minister instead of showing some leadership,” he said.

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Gidiot will possibly be the next scalp. Camoron's already blamed him for the fiasco. (Today's Telegraph)

I'll grab a coke(!) and some popcorn, this might be entertaining.

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If the budget bill is rejected by the commons Osborne will have no choice but to resign.

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Stephen Crabb: 'No further plans' for welfare cuts



Ministers say they will not target other benefits to pay for axing cuts to disability payments as they seek to heal a rift over last week's Budget.

Welfare Secretary Stephen Crabb made the pledge in his first speech since replacing Iain Duncan Smith, who quit with an attack on the planned cuts.

Earlier, the PM defended Chancellor George Osborne, whose Budget is missing £4.4bn earmarked for the now-axed cuts.

Labour said Mr Osborne should resign and the Budget should be withdrawn.

Both David Cameron and Mr Crabb praised Mr Duncan Smith, who said the government risked dividing society with politically-motivated spending cuts.

The new work and pensions secretary confirmed the changes to Personal Independence Payments had been cancelled and told MPs: "After discussing this issue over the weekend with the prime minister and the chancellor we have no further plans to make welfare savings beyond the very substantial savings legislated for by Parliament two weeks ago."

A Downing Street spokesman said the government would still deliver on its commitment to save £12bn from welfare by the end of the Parliament in 2020.

Does anyone else spot the contradiction in those statements?