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| David Cameron backs chancellor despite Tory turmoil over budget | |
| (35 minutes later) | |
| David Cameron has offered his full backing to George Osborne, despite the fact that the chancellor’s latest budget triggered a cabinet resignation, a serious Tory rebellion, and now includes a £4.4bn financial black hole. | David Cameron has offered his full backing to George Osborne, despite the fact that the chancellor’s latest budget triggered a cabinet resignation, a serious Tory rebellion, and now includes a £4.4bn financial black hole. |
| The prime minister’s spokeswoman said Cameron “absolutely” had confidence in his chancellor. | The prime minister’s spokeswoman said Cameron “absolutely” had confidence in his chancellor. |
| Related: Corbyn granted UQ to summon Osborne to Commons to explain budget PIP U-turn – Politics live | Related: Corbyn granted UQ to summon Osborne to Commons to explain budget PIP U-turn – Politics live |
| Asked if Osborne had “played a blinder”, she added: “I think the prime minister recognises that, as a government both under the last parliament and this parliament, we have faced challenging global economic circumstances. | Asked if Osborne had “played a blinder”, she added: “I think the prime minister recognises that, as a government both under the last parliament and this parliament, we have faced challenging global economic circumstances. |
| “We’ve faced a big deficit and debt to bring down and therefore tough decisions about how we are a country that lives within its means. He has worked very closely with the chancellor and other ministers on that to date and will continue to do so.” | “We’ve faced a big deficit and debt to bring down and therefore tough decisions about how we are a country that lives within its means. He has worked very closely with the chancellor and other ministers on that to date and will continue to do so.” |
| Labour attempted to drag Osborne to the House of Commons on Monday afternoon to respond to an urgent question on the U-turn to personal independence payment (PIP) reforms that were due to save the Treasury £1.2bn by 2018, and £4.4bn over the next five years. | Labour attempted to drag Osborne to the House of Commons on Monday afternoon to respond to an urgent question on the U-turn to personal independence payment (PIP) reforms that were due to save the Treasury £1.2bn by 2018, and £4.4bn over the next five years. |
| The Speaker granted the question – but the Treasury minister David Gaulke will respond. The Guardian understands that Osborne will be in parliament on Tuesday to close the budget debateand may be on the green benches during the prime minister’s EU statement, which will come straight after the urgent question. | The Speaker granted the question – but the Treasury minister David Gaulke will respond. The Guardian understands that Osborne will be in parliament on Tuesday to close the budget debateand may be on the green benches during the prime minister’s EU statement, which will come straight after the urgent question. |
| The Downing Street spokeswoman also confirmed that the budget would go ahead in its current form, despite the decision to climb down on PIP reforms. She said the issue would not now be addressed until the autumn statement – when forecasts would be revised. | The Downing Street spokeswoman also confirmed that the budget would go ahead in its current form, despite the decision to climb down on PIP reforms. She said the issue would not now be addressed until the autumn statement – when forecasts would be revised. |
| David Davis, the senior Tory MP who ran against Cameron for the leadership in 2005, said Osborne’s hopes of becoming leader of the Conservatives if the prime minister quit in the near future had “sunk without a trace”. | |
| A Conservative MP revealed that she and colleagues warned Osborne the day before the budget about the changes to PIP. | A Conservative MP revealed that she and colleagues warned Osborne the day before the budget about the changes to PIP. |
| Karen Lumley MP released the letter, which said the budget plans risked looking like a “sustained attack on disabled benefits by the government” and would cause long-term damage to its reputation. | Karen Lumley MP released the letter, which said the budget plans risked looking like a “sustained attack on disabled benefits by the government” and would cause long-term damage to its reputation. |
| Related: David Cameron to face MPs as criticism of George Osborne mounts | Related: David Cameron to face MPs as criticism of George Osborne mounts |
| The letter demonstrates that Osborne was aware of i backbenchers’ concerns about the impending cuts but pressed ahead anyway. It said: “We are writing to you as a small group of colleagues to raise concern about the proposed changes in personal independence payment criteria. Many colleagues will have been surprised by the response to the recent ESA [employment and support allowance] WRAG [work-related activity group] benefit, which has led resulted in large amounts of personal abuse towards colleagues. | |
| “Coming so soon after the ESA changes, we are concerned that further changes to PIP will be seen as a sustained attack on disabled benefits by the government. This is very concerning for the impact it will have on disabled people, but it also feeds into a wider narrative that the Conservatives are trying to balance the books on the backs of the most vulnerable.” | “Coming so soon after the ESA changes, we are concerned that further changes to PIP will be seen as a sustained attack on disabled benefits by the government. This is very concerning for the impact it will have on disabled people, but it also feeds into a wider narrative that the Conservatives are trying to balance the books on the backs of the most vulnerable.” |
| They wrote that while they knew that the attack was “not true”, it would be difficult to persuade the public. | They wrote that while they knew that the attack was “not true”, it would be difficult to persuade the public. |
| Campaigners pointed out that the new work and pensions secretary had written a post defending ESA cuts on his Facebook page. Stephen Crabb has angered critics by writing: “Any disabled person who is unable to work due to ill-health or disability is in the support group of ESA. They are wholly unaffected by the change, as only those who are fit to work and actively seeking work are included in the work related activity group.” | |
| There is pressure on Cameron and Osborne to rethink their decision to protect pensioners at all costs – which Iain Duncan Smith said was at the heart of his resignation. One cabinet minister told the Guardian that Duncan Smith had not raised the issue in front of colleagues, but said Theresa Villiers, the Northern Ireland secretary, had done. | There is pressure on Cameron and Osborne to rethink their decision to protect pensioners at all costs – which Iain Duncan Smith said was at the heart of his resignation. One cabinet minister told the Guardian that Duncan Smith had not raised the issue in front of colleagues, but said Theresa Villiers, the Northern Ireland secretary, had done. |
| The minister said they felt it might be time to think again, in particular about the “triple lock” on pensions that has meant rates have risen by 2.5% despite ultra-low inflation. | |
| Cameron’s spokeswoman said the government was still committed to maintaining that policy. | Cameron’s spokeswoman said the government was still committed to maintaining that policy. |
| Related: IDS resignation damages George Osborne's Tory leadership hopes | Related: IDS resignation damages George Osborne's Tory leadership hopes |
| She also revealed that the government would not oppose two amendments to the budget calling for the “tampon tax” to be scrapped, and for VAT not to be raised on solar panels. | |
| The issues have been the source of an unholy alliance between Labour MPs and Eurosceptics, who argue that the taxes have been forced on to Britain by the EU. Cameron secured a promise in Brussels that he would be able to reduce the tax rate on sanitary products to zero although it will not be agreed by the time of the budget vote on Tuesday night. | The issues have been the source of an unholy alliance between Labour MPs and Eurosceptics, who argue that the taxes have been forced on to Britain by the EU. Cameron secured a promise in Brussels that he would be able to reduce the tax rate on sanitary products to zero although it will not be agreed by the time of the budget vote on Tuesday night. |
| The Resolution Foundation has told the Guardian that the decision to row back on the PIP plans had blown Osborne off course to achieve his £10bn surplus in 2019-20 – and warned against looking at working-age benefits again. | The Resolution Foundation has told the Guardian that the decision to row back on the PIP plans had blown Osborne off course to achieve his £10bn surplus in 2019-20 – and warned against looking at working-age benefits again. |
| “The government’s decision to back away from changes to disability benefits last Friday isn’t the end of difficult decisions emerging from the budget,” said Torsten Bell, director of the thinktank. | “The government’s decision to back away from changes to disability benefits last Friday isn’t the end of difficult decisions emerging from the budget,” said Torsten Bell, director of the thinktank. |
| “The issue now is how that gap is filled, with the danger being that the Treasury pushes DWP for more cuts to working-age benefits that are already being stripped back significantly over this parliament.” | “The issue now is how that gap is filled, with the danger being that the Treasury pushes DWP for more cuts to working-age benefits that are already being stripped back significantly over this parliament.” |