PM olive branch to Tory rebels as she hands Sunak ally government job

Truss’s olive branch to Tory rebels: PM hands key Rishi Sunak ally government job as she vows to ‘bring everyone together’ after infighting over tax and benefits

• The Prime Minister wants to use return of Parliament from recess to settle nerves
• Truss set up to host a series of meetings with MPs who have raised concerns
• She also asked to address 1922 Committee on Wednesday, in place of Kwarteng

Liz Truss has offered an olive branch to Tory rebels by bringing a key Rishi Sunak ally into the government as she scrambles to quell infighting.

The PM has appointed veteran Greg Hands as trade minister as she tries to stabilise her government after a torrid conference marred by the fallout from the mini-Budget.   

Sources said the move was a ‘very clear signal’ that Ms Truss wants to ‘bring everyone back together’.

The premier is set to mount a charm offensive as Parliament returns this week, addressing all MPs at a meeting of the 1922 committee as wooing anxious politicians behind the scenes. Chancellor Kwasi Kwarteng is also calling in groups to reassure them that he has laid the ground with markets for his crucial growth plan, which could come within weeks. 

Speculation is mounting that Ms Truss will have to perform another climbdown, after indicating that she wants to increase benefits in line with wages rather than inflation to help balance the books.

The leadership has already abandoned plans to abolish the 45p top rate of tax after Mr Kwarteng’s unfunded package sparked a slump in the Pound and uproar on Conservative benches. 

The mood has been further darkened by a slew of dire polls showing Labour up to 33 points ahead – enough for a massive landslide at an election. 

Liz Truss will embark on a major charm offensive this week in an attempt to unite Tory MPs behind her leadership

Chancellor Kwasi Kwarteng (pictured today) is calling in groups of MPs to reassure them that he has laid the ground with markets for his crucial growth plan, which could come within weeks

The mood has been further darkened by a slew of dire polls showing Labour up to 33 points ahead – enough for a massive landslide at an election. Opinium yesterday found a 21-point gap, the highest ever for the firm

Mr Hands’ appointment was welcomed by fellow Sunak supporter Grant Shapps, who was one of the rebel ringleaders in the top tax rate row.

‘No one is more experienced and knowledgeable than @GregHands on trade,’ he tweeted.

‘A welcome addition back to @trussliz government.’

A Government source said: ‘Greg was one of Rishi’s most high-profile backers.

‘This is a very clear signal from the PM that she wants to unify the party and bring everyone back together.

‘Greg has been a vocal supporter of the PM’s economic plan, he’s competent and well-liked across the party.’

Mr Hands has extensive experience in the Trade Department, having held the minister of state post twice before his appointment.

He most recently served in the Department for Business, Energy and Industrial Strategy, and has also been chief secretary to the Treasury.

Ms Truss has asked to address the 1922 Committee on Wednesday, in place of Mr Kwarteng. 

One insider said last night: ‘It’s a concerted effort. There is going to be a lot of engagement happening.

‘It will involve meeting MPs in small groups, and being more available to MPs.’

With her first month in charge overshadowed by the Queen’s death and funeral, the radical mini-Budget and the chaotic party conference, No 10 is hoping this week’s meetings will provide an opportunity to get Ms Truss’s premiership back on track.

But one party grandee warned: ‘It will help a bit but people are unhappy. We are in quite a difficult situation.’

A host of Cabinet ministers were deployed to rally support for the PM, with warnings that the Tories face election catastrophe unless they unite.

After a party conference blighted by infighting, Suella Braverman, Nadhim Zahawi, Penny Mordaunt and Environment Secretary Ranil Jayawardena all penned articles backing Ms Truss.

In interviews yesterday, Mr Zahawi warned that the government must focus on delivering its policies. 

‘Delay is our biggest enemy,’ he told Sky News. ‘Dither and delay will end in defeat.’ 

A No 10 source said the ‘cold hard reality’ is the party must ‘get behind Liz’ or wind up with a ‘monstrous coalition of Labour and the SNP’.

However, senior Tories continued to call for Miss Truss to change tack yesterday.

Former Culture Secretary Nadine Dorries insisted she was still one of the PM’s biggest supporters, but told the BBC: ‘You have to put that into the context of the fact that we are 30 points behind Labour in the polls. 

‘And if there were a general election tomorrow that would probably mean a complete wipeout for the Conservative Party.

‘The fact is that just after a leadership election, and at the start of a new administration, what we don’t need is a disrupter, what we need is a unifier.’

Ms Dorries, an ally of Boris Johnson, urged his successor not to ditch his policies – but also said rebels should not try to get rid of her. Asked if she thought Mr Johnson could make a comeback, Ms Dorries said it would be ‘highly, extremely unlikely’. 

As the turmoil continued, The Mail on Sunday reported how allies of Ms Truss branded former Cabinet minister Michael Gove – who led the revolt against the 45p tax rate cut – as ‘sadistic’ and ‘deeply troubled’.

The chairman of the Treasury committee, Mel Stride, described the mood of Tory MPs as ‘fairly febrile’, with a series of opinion polls putting Labour well ahead.

He told Times Radio: ‘There are a lot of backbenchers and members of the Government who are very concerned at where we are in the polls. 

‘We’ve got two years to a general election. We’ve got to turn things around and start doing it very quickly.’ 

Mr Hands’ appointment was welcomed by fellow Sunak supporter Grant Shapps, who was one of the rebel ringleaders in the top tax rate row

He blamed the economy, the ‘missteps’ by the new administration and the fact that Ms Truss had not sought to ‘reach out’ to supporters of her leadership rival, Rishi Sunak.

‘The Prime Minister decided, after she won that contest, to form a government, which was predominantly made up of those that were strong supporters of her personally, and that’s fine. And I have no problem with that,’ Mr Stride said. 

‘But I think there was a shortfall when it came to reaching out right across the party. And I think you’re probably seeing some of the consequences of that now that things are getting a bit tougher.’

Former veterans minister Johnny Mercer did not rule out standing as an independent candidate unless the Tories got back on track in the centre ground.

He told Channel 4’s Andrew Neil Show that he wanted his party to bring about ‘real change for people who need it’. 

Former chancellor George Osborne piled on the pressure by telling the same programme that a ‘Tory wipeout is potentially on the cards’.

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