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Prime Minister Rishi Sunak insisted the British economy has “well and truly turned the corner” as he sought to calm nerves among Conservative MPs and quell rumors in Westminster about a threat to his leadership.
Addressing a business audience in Coventry on Monday, he insisted his economic plan is working, with ministers hoping for encouraging data showing a decline in inflation on Wednesday.
“We really turned the corner earlier this year,” Sunak said. “Inflation has been more than halved. Mortgage rates, energy bills down, wages up, consumer confidence, business confidence up.”
He added: “After a couple of difficult years, we are now pointing in the right direction and that actually gives me a lot of confidence for the future.”
Right-wing Conservative rebels have spoken of the possibility of Sunak being toppled after local elections on May 2 if the party performs as poorly as many Conservative MPs fear.
Rebels within the party said they had spoken to allies of centrist Penny Mordaunt, leader of the House of Commons, who is running for the party leadership twice in 2022.
But Mordaunt told colleagues the speculation had nothing to do with her and that talk of a plot against Sunak was bound to damage both her and the prime minister.
Downing Street insiders said Sunak’s allies have spoken to Mordaunt and have some sympathy for her. “I suspect it’s not a large group,” one said, referring to rumors of a riot.
«It’s the last attempt to raise the waters. I feel sorry for Penny, it’s not fair. I don’t know how high her ambitions are, but if I were her, I wouldn’t want any of this going into the election. I would like to wait,” they added.
Kemi Badenoch, the business secretary, seen as another potential Tory leadership contender, said rumors of a conspiracy had been spread by “one or two” people out of around 350 Tory MPs.
“There will be some people who will be unhappy, I don’t deny that,” he told radio station LBC. “But we need to move away from the scenario where one or two people can create all the news and 300 others can’t say a word.”
Sunak traveled to Coventry on Monday to speak at the government’s Business Connect conference, where he presented reforms aimed at increasing the number of apprenticeships and cutting red tape for small businesses.
This included £60 million to pay the full cost of training for anyone aged up to 21 employed as an apprentice by a small business and a 50% increase in the financial thresholds to qualify as an SME (small and medium-sized enterprise). .
Iain McIlwee, chief executive of the Finishes and Interiors sector, a body representing 600 members in the construction industry, said the announcements were “just more sweets”. McIlwee
“A lot of what we see right now is political posturing rather than a long-term vision from the government,” he said.
Along with Badenoch and Education Secretary Gillian Keegan, Sunak argued his Cabinet was well equipped to support business.
“We all come from the private sector and hopefully the fact that we understand business ourselves means we will generate policy that helps businesses,” Sunak said.
The Prime Minister added that the Government was focused on cutting taxes to support businesses, including raising the VAT threshold to £90,000 and instituting a 75% discount for those in the retail sectors , hospitality and leisure.
After his speech, Sunak insisted he remained focused on government and that the Conservatives were “united” in this ambition. “What matters is the future of our country. And that’s what I’m focused on,” he said.