Rishi Sunak blocks Boris Johnson bailout: Chancellor wins battle for company handouts

Rishi Sunak blocks Boris Johnson bailout: Chancellor wins battle with PM over handouts to companies hit by energy crisis

  • Chancellor Rishi Sunak blocked bailout deal for manufacturing sector
  • Business Secretary Kwasi Kwarteng said earlier there were talks of a bailout deal
  • Prime Minister backed Mr. Kwarteng’s plan, while Mr. Sunak publicly opposed it
  • Now the Chancellor has managed to cancel the plan, which is no longer on the table

Chancellor Rishi Sunak has blocked a multimillion-pound bailout backed by Boris Johnson, a sign of rising tensions within the Cabinet.

This follows a row with Business Secretary Kwasi Kwarteng, who told broadcasters last month that he was in talks with the Treasury over a bailout deal for industries hit by soaring prices. energy.

This claim has drawn mind-boggling blame, with a source in Mr. Sunak’s department accusing Mr. Kwarteng of “making things up in interviews.”

However, the chancellor was embarrassed after the prime minister sided with the business secretary.

Chancellor Rishi Sunak blocked draft manufacturing bailout after weeks of disagreement with Prime Minister and Secretary of Business Kwasi Kwarteng

No. 10 ordered the two departments to work together on a possible solution, which led to Mr. Kwarteng submitting a taxpayer money proposal.

The options offered included government-backed loans and energy price subsidies for struggling businesses.

Mr Johnson was reportedly convinced sectors such as steel, chemicals and ceramics needed help and was preparing to sign a bailout worth hundreds of millions of pounds.

But the Daily Mail can reveal that Mr Sunak was successful in stopping the plan, which is no longer under consideration.

Government sources have confirmed that with energy prices falling in recent weeks from record highs, there is little chance that it will be resuscitated.

It comes as senior Tory MPs dubbed the ‘men in the gray suits’ visited Mr Johnson in Downing Street yesterday amid continuing unrest in the party ranks over the government performance.

Sir Graham Brady, chairman of the 1922 Conservative MPs Committee, confirmed the executive had met with the PM at No 10, but declined to comment on their discussions.

The meeting comes after a difficult few weeks for Mr Johnson, starting with his botched attempt to revise the rules of standards for MPs, which has led to new accusations of “sleaze” from the Tories.

This was followed by criticism that the long-awaited announcements of rail improvements for the North and Midlands and funding for adult social services in England have failed to deliver on previous promises.

Business Secretary Kwasi Kwarteng had previously told broadcasters he was in talks with the Treasury over a possible bailout deal.

Business Secretary Kwasi Kwarteng had previously told broadcasters he was in talks with the Treasury over a possible bailout deal.

Events culminated with Mr Johnson’s rambling speech at CBI in which he misplaced part of his text and talked about his visit to the Peppa Pig World theme park.

It has been reported that Tory whips believe a number of MPs have submitted letters of no confidence to Mr Johnson to Sir Graham – although they remain well below the 54 required by Tory Party rules to trigger a vote on its direction.

Yesterday, Downing Street sought to downplay reports of tensions between Mr Johnson and Mr Sunak following claims the Chancellor was growing increasingly frustrated with the ‘chaotic’ operation at No 10.

Chancellor’s Chief of Staff Liam Booth-Smith has been blamed by some for a toxic anonymous briefing that there was ‘a lot of concern in the building’ over Mr Johnson – although the Treasury has strongly denied that he was behind the quotes given. at the BBC.

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

When asked if Mr Johnson trusts Mr Booth-Smith, his spokesperson said: “Of course the PM trusts the No11 squad.

“They work closely together to meet the public’s priorities. “


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Edward L. Robinett