A top Tory today warned that Chancellor Kwasi Kwarteng is likely to make another humiliating U-turn over his disastrous tax cuts - as Labour labels the government "pyromaniacs".
Mel Stride, who chairs the influential Treasury Select Committee, says he is among those who expects Mr Kwarteng will have to row back further when he announces full financial plans on October 31.
But the government today said it has no intention of U-turning again - having already scrapped a proposal to cut the tax rate for the UK's highest earners following a Conservative mutiny.
Mr Stride today told the House of Commons that the Chancellor faces a "huge challenge" in reassuring the markets after weeks of chaos and coming up with plans which are politically acceptable.
This could mean, he warned, that he is forced to retreat on his mini-budget when he makes his Halloween financial statement.
Mr Stride said: "Given the huge challenges, there are many, myself included, who believe that it's quite possible that he will simply have to come forward with a further rowing back on the tax announcements that he made on September 23."
In response Chris Philp, Chief Secretary to the Treasury, ruled out any changes on measures such as a cut in National Insurance and corporation tax.
He told the Commons: "There are not any plans to reverse any of the tax measures announced in the growth plan."
Mr Philp went further, claiming there was "consensus" as Labour had backed plans to scrap a rise in National Insurance, adding: "We want to make sure that the UK is a competitive jurisdiction."
The remarks came after Labour shadow chancellor Rachel Reeves launched a scathing attack on Tory financial plans - warning that home repossessions will soar as a result of rocketing mortgage rates.
Ms Reeves fumed: "The mini-Budget just 19 days ago was a bonfire made up of unfunded tax cuts, excessive borrowing and the repeatedly undermining of economic institutions.
"It was built and then set ablaze by a Conservative Party totally out of control. Not ‘disrupters’, but pyromaniacs. And the fire has spread.
"Yet still the government still denies all responsibility."
Mr Philp said that mortgate rates were on an "upward trajectory" around the world, with base rates 1% higher in the US compared to the UK.
He said the government was "very mindful" of the cost of living crisis, which is why the government announced a £37 billion package of measures in its first week.
The government faces growing calls from within the Tory Party to reverse some of its spending plan, with MP Stephen Hammond becoming the first to call for corporation tax cuts to be scrapped.
Mr Hammond told Sky News: "It is clear that if you look at international tax rates for corporates, keeping it at a level below the 24p level but keeping it above the 19p level would raise money and that would be a sensible way at this stage."
It comes as Liz Truss pledged there would be no cuts to public spending during a heated PMQs session today - - despite experts saying she needs to slash £60billion just to pay for her tax cuts bonanza.
In comments that could spook the markets further, the PM stuck by a pledge in July - when she told the Mirror: "I'm very clear I'm not planning public spending reductions."
Yesterday the IFS think tank warned “fiscal tightening” of £62bn will be needed by 2026/27 to bring down debt after the mini-Budget funded tax cuts with £70bn of borrowing.
Yet asked if she stood by her July pledge today, she said: "Absolutely. Absolutely." The PM said she will lower vast borrowing in the "medium term" - but refused to say how and claimed no cuts will be involved.
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