Liz Truss spoke defiance as she kicked off Tory conference, warning the restive MPs against settling for the “status quo” after today’s market crash.

Birmingham’s PM will launch the event against the background of plunging Pounds and an increase in borrowing costs due to Kwasi Kwarteng’s tax-cutting Emergency Budget.

With the lack of OBR costings from independent sources and no plan to handle debt, the Chancellor suggested that with ‘hindsight’ things would have been different.

But Ms Truss insisted there is no prospect of sacking Mr Kwarteng, and urged Conservatives to get behind her leadership – saying ‘the status quo isn’t an option’.

The definition of small business will be expanded from 250 to 500 employees as part of these reforms. This should reduce red tape and help to make it easier for thousands of businesses. In order to increase childcare opportunities, the government is also looking to emulate a French model. 

An Opinium poll showed that Labour was at 46%, 19 points more than the Tories and sufficient to win a clear victory in the election. Other polls have given Keir Starmer’s party a lead of as high 33 points.

Michael Gove (ex-Minister of Cabinet) joined the fray this morning. He said that the Budget contained ‘a few mistakes’ and needed to be “corrected”.

He said, “That’s our challenge for this week.”  

Liz Truss is launching the gathering in Birmingham against the backdrop of the Pound's plunge and a surge in borrowing costs following Kwasi Kwarteng's tax-cutting emergency Budget

Liz Truss launches the Birmingham meeting against the backdrop to the Pound’s plummet and the surge in borrowing cost following Kwasi Kwarteng’s tax cutting emergency budget

The grim political consequences of the market turmoil for the Tories was laid bare with an Opinium poll putting Labour on 46 per cent, 19 points ahead

An Opinium poll that placed Labour at 46%, 19 points in front of Tories, exposed the dire political implications of market turmoil.

After market chaos, poll puts Labour ahead by 19 points 

Another poll found that the Tories are suffering the most from the meltdown of the markets.  

Opinium research found Labour at 46%, which is 19 percentage points higher than the Conservatives’ 27%. 

The survey on the economic issue found that the Tories had a lead of one point a week earlier, but Labour now has a lead of 19 points. 

It follows a tumultuous week which saw the pound slump to a record low against the dollar and the Bank of England step in to prevent the collapse of the pensions industry in the wake of Mr Kwarteng’s £45 billion package of unfunded tax cuts.

Some Tory MPs speculated that she may not survive the year. Sir Keir starmer tried to capitalize on discontent within the Conservative ranks and urged rebels to join Labour in defeating the Government’s tax proposals in the Commons.

In an interview with The Sunday Telegraph however, she stated that the Budget was put together in a hurry, but that she would stick to her guns and tax cuts were essential for the recovery of the economy.

People might be concerned by the idea of change. However, I believe that we must all change. The status quo simply isn’t possible, she stated.

‘We cannot continue on the current trajectory of managed decline… We must take a new direction.’

Kwarteng acknowledged that he was surprised by how the financial markets reacted to his budget.

According to him, it was put together with a high degree of speed due to the need for support with energy bills. But he’s ‘100% certain’ that it is the right plan.

He stated that it is difficult to predict how the markets will react and that if politicians could read markets well, they would probably be traders.

“I feel that what we see now is stability. I believe we can continue to grow on this.

Ms Truss announced that small business exemptions from the Government’s supply side reforms are being extended to firms of up to 250 employees and up to 500.

The change will free up 40,000 additional firms from the red tape, making it “easier” for them to go about their business.

To reduce the costs of childcare, she is currently working to create new “childminder agencies” in a French model.

There are reports that Sir Graham Brady is the Chairman of the Conservative 1922 Committee. These letters come from Tory MPs requesting a vote in no confidence.

She’s protected for one year following her election from any challenger to the leadership, but the 1922 executive is empowered to alter those rules in the event of overwhelming demand.

Michael Gove is a former cabinet minister and will be joining the criticism at this conference’s fringe today. 

Kwasi Kwarteng told The Mail on Sunday the Budget had been put together at 'very high speed' because of the need to support people with their energy bills, but that he was '100 per cent convinced' it was the right plan

Kwasi Kwarteng explained to The Mail that while the Budget was assembled at “very high speeds” due to people needing support with their energy bills on Sunday, he’s ‘100 percent convinced’ that it is the right plan

Ms Truss was all smiles as she arrived in Birmingham for Tory conference last night

When Ms. Truss arrived in Birmingham last night for the Tory conference she was all smiles

A number of other senior figures – including Ms Truss’s defeated leadership rival Rishi Sunak and former cabinet ministers Priti Patel, Sajid Javid and David Davis – are staying away from the conference.

James Cartlidge, South Suffolk MP joined the fray. He warned that cutting benefits and taxing top earners during a crisis of cost-of living was unacceptable.

He said, “This does not mean we lost market support in proposed unfunded tax actions, but that we seek to win that support again with on the-back-foot and un-pitchrolled cuts to benefits when it is rocketing to food, while keeping a tax cut to the wealthiest.”

Former foreign secretary Jeremy Hunt supported Rishi Sunak’s leadership but said Ms. Truss must be allowed to succeed in her plans.

It was evidently a difficult week. We have to allow things to settle down. He said that he believes now is the right time to judge,’ GB News reported.