London Tories react to Kwarteng's tax U-turn

Chancellor Kwasi Kwarteng sat with Prime Minister Liz Truss at the start of the Conservative Party conference on Sunday

"Hallelujah!" - the single-word response from one London Conservative MP to the top rate tax U-turn.

The MP, who didn't want to be quoted on the record, is among several who haven't made the journey to Birmingham for the annual party gathering - citing other commitments.

Another absentee said the tax climbdown showed Chancellor Kwasi Kwarteng to be "incompetent".

Wimbledon MP Stephen Hammond, another not to have made it to the gathering, said it was the right thing to do.

"I think this was a recognition of the reality that publicly and privately many colleagues had told the government that it was not acceptable to cut taxes for the richest when so many were struggling."

For a decade, people in England, Wales and Northern Ireland have been taxed at 45% on earnings over £150,000.

Doing away with that policy came as something of a surprise to those across the political spectrum when it was announced in the government's mini-budget 10 days ago. During her party leadership campaign, Liz Truss had not hinted it would be among her tax cuts should she become prime minister.

Many people who would have benefited from the tax cut work in the City

It also seems likely to have come out of the blue for the financial world, given the reaction in the markets which followed.

• Kwasi Kwarteng u-turns on tax cut

• What's in the mini-budget?

But behind the policy itself seemed to be a clear message: this government rewards the creation of wealth, from which the whole of the UK benefits.

London, where the majority of £150,000+ earners are to be found, surely would have felt the rewards the most.

It seems likely, however, the move would have been entirely incompatible with the government's "levelling up" policy, a commitment to addressing a wealth imbalance that favours the South East.

But we will never know - it is a policy that never was.

Junior Treasury minister Felicity Buchan - MP for Kensington and a former City financier - remained utterly faithful to her boss, Mr Kwarteng, when she told me it had become a "distraction" from the government's growth plan - which, she says, is the right plan.

Some London business organisations disagree. The London Chambers of Commerce's boss said it was welcome "as far as it goes" but there was still little reassurance for hundreds of businesses facing rising inflation and interest rates.

"There is no strategy", chief executive officer Richard Burge said.

Junior Treasury minister Felicity Buchan said the proposed tax cut was a "distraction"

Clearly, turbulence in the financial markets, and the public reaction, has unnerved many Tory MPs.

On Sunday, Michael Gove said he would not vote for the the measures announced when they went through Parliament.

But this should not be taken as a sign of an impending rebellion, said one minister in response.

"Michael has caused trouble for successive prime ministers going back to Cameron so no surprises he's up to his old tricks," he said.

"There's no sense of gathering rebellion - most MPs understand we need a bold plan for growth. Yes, it needs to be properly funded and fully detailed and all that will be set out in Kwasi's Medium Term Financial Plan, which will reassure financial markets, colleagues and the public."

Just a few hours later, the chancellor and PM decided that to keep calm and carry on was not an option.

And there is no shame in that, said Andrew Boff, a Tory Assembly member. "It's refreshing to have a leader who can take responsibility for mistakes and learn from them," he said.

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