Tory MPs call on Chancellor Kwarteng to act on mini budget 'disaster'

Kwasi Kwarteng faces demands from his own party to act within days, as millions fear they will face a sharp rise in mortgage rates, a leading Tory MP described last week's mini-budget as "an absolute disaster".

Tory MPs have called for swift action to restore investor confidence after the Chancellor sparked market turmoil and sent the pound plummeting to a record low.

The IMF issued an extraordinary rebuke of its tax plans, urging a rethink and saying they would "increase inequality".

And No 10 was also forced to denying claims of a split between Liz Truss and Mr Kwarteng explain how to deal with the market backlash.

A Tory backbench MP has described the mini-budget as "the memo of shortest suicide in history", a nod to the famous description of the 1983 Labor election manifesto, telling The Independent it could be "an absolute disaster".

The Conservatives' concern could even be seen at the Labor Party conference in Liverpool, where an MP told The Independent that he had received a text from an ex-Boris Johnson government minister urging Labor to win the next election, signed 'a patriot'.

Mr. Kwarteng pledged to continue the £45billion wave of tax cuts fueled by government borrowing despite growing calls to reverse the tide, and said he would produce a 'credible plan' to cut public debt.

“We are confident in our long-term strategy to boost economic growth through tax cuts and supply-side reform,” the Chancellor said at the a meeting with banking and investment chiefs on Tuesday.

But former Brexit secretary David Davis said Mr Kwarteng needed to act "rather quickly - and certainly by the party conference", which starts in Birmingham this weekend.

He accused Mr Kwarteng of doing 'what Americans call a 'Hail Mary' - throwing it all up and hoping it works out".

"He has to give a sense of what the thought is, there was no attempt to explain the thought last week,” Davis added.

< p>Sir Bob Neill, the Tory MP who chairs the Commons Justice Committee, also said Mr Kwarteng needed to act "very quickly" to restore justice. He called on the Chancellor to present the medium-term budget plan due for November and to reconsider her surprise announcement that he was scrapping the top rate of tax, paid by those earning over £150,000. /p>

Senior economists have also suggested that there needs to be more urgency in the response to the crisis Charlie Bean, the former deputy governor of the Bank of England, said that i He advised the Bank to call an emergency meeting.

Mr. Kwarteng held a call with Tory MPs as he sought to calm nerves following the market fallout. But Mel Stride, the Tory chairman of the Commons Treasury Committee, warned that the party's reputation on the economy was "at risk".

In an interview, Tory MP Kevin Hollinrake, also a member of the Commons Treasury Committee, refused to rule out voting against the Money Bill containing some of the government's planned tax cuts.

A Tory MP told The Independent that there could be a 'big battle' over the plan to scrap the top rate of income tax, suggesting that up to 20 MPs could rebel over the issue. But another moderate backbencher played down the idea of ​​a rebellion against the tax cuts.

"You will lose the whip - any government that cannot carry its budget will not is no longer a government. The loss of moderate MPs will mean a further shift to the right,” they said.