Rishi Sunak blocks Boris Johnson rescue deal: Chancellor wins battle over company subsidies

Rishi Sunak blocks Boris Johnson bailout: Chancellor wins battle with PM over aid for firms hit by energy crisis

  • Chancellor Rishi Sunak halts a bailout deal for the manufacturing sector
  • Business Minister Kwasi Koarting said earlier that there were talks about a rescue deal
  • The Prime Minister supported Mr. Kwarteng’s plan, while Mr. Sunak publicly opposed it
  • Now, the chancellor has successfully scrapped the plan which is no longer on the table

Chancellor Rishi Sunak has halted a multi-million pound industrial rescue plan backed by Boris Johnson in reference to rising tensions in the Cabinet.

It follows a row with Business Minister Kwasi Kwarting, who told broadcasters last month that he was in talks with the Treasury over a rescue deal for industries hit by high energy prices.

The claim prompted a startling reprimand, with a source from Mr Sunak’s department accusing Mr Kwarteng of “making up things in the interviews”.

However, the chancellor faced embarrassment after the prime minister sided with the business minister.

Chancellor Rishi Sunak has halted a proposed rescue deal for the manufacturing sector after weeks of wrangling with Prime Minister and Business Minister Kwasi Koarting.

Number 10 ordered the two departments to work together on a possible solution, which resulted in Mr. Kwarteng submitting a proposal for taxpayer money.

Options offered included government-backed loans and energy price subsidies for troubled companies.

It was understood that Mr Johnson was convinced sectors including steel, chemicals and ceramics needed help and was preparing to sign a hundreds of millions of pounds bailout.

But the Daily Mail can reveal that Mr. Sunak successfully halted the plan, which is no longer under consideration.

Government sources emphasized that with energy prices falling in recent weeks from record highs, there is little chance of their revival.

It comes as senior Conservative MPs dubbed “the men in gray suits” went to meet Mr Johnson in Downing Street yesterday amid continuing turmoil in the party’s ranks during the functioning of the government.

Sir Graham Brady, Chairman of the 1922 Committee of Conservative Party Members, asserted that the Executive had met the Prime Minister as tenth but declined to comment on their discussions.

The meeting comes after a difficult few weeks for Johnson, starting with his failed attempt to reform the normative rules for MPs, leading to renewed accusations of Tory “corruption”.

This followed criticism that long-awaited announcements about rail improvements in the North and Midlands and funding for adult welfare in England had failed to deliver on earlier promises.

Business Minister Kwasi Quarting had earlier told broadcasters that he was in talks with the Treasury about a possible rescue deal

Business Minister Kwasi Quarting had earlier told broadcasters that he was in talks with the Treasury about a possible rescue deal

The events culminated in Mr Johnson’s rambling speech to the CBI in which he misled part of his text and talked about his visit to Peppa Pig World theme park.

There have been reports that Tory whips believe a number of MPs have submitted letters of no confidence from Mr Johnson to Sir Graham – although they are still well short of the 54 required under Tory rules for a vote on his leadership.

Yesterday, Downing Street sought to play down reports of tensions between Mr Johnson and Mr Sunak after claims that the chancellor had become increasingly frustrated with the “chaotic” process in 10th place.

Some have blamed the chancellor’s chief of staff, Liam Booth Smith, in an anonymous toxic briefing that there was ‘much concern in the building’ about Mr Johnson – although the Treasury vehemently denied he was behind the quotes given to the BBC. .

The Prime Minister’s spokesperson insisted that Number 10 and Number 11 “continue to work very well together at all levels”.

Asked if Johnson had confidence in Mr Booth Smith, his spokesman said: “Of course, the Prime Minister trusts the 11th team.

“They work very closely together to achieve the audience’s priorities.”


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