Penny Mordaunt has been knocked out of the Conservative leadership race and will not be Britain's next prime minister. Getty
Penny Mordaunt has been knocked out of the Conservative leadership race and will not be Britain's next prime minister. Getty
Penny Mordaunt has been knocked out of the Conservative leadership race and will not be Britain's next prime minister. Getty
Penny Mordaunt has been knocked out of the Conservative leadership race and will not be Britain's next prime minister. Getty

Tories fear Penny Mordaunt's exit will lead to election defeat


Thomas Harding
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Penny Mordaunt’s departure from the Conservative leadership race will significantly lessen the chances of the party holding on to power at the next election, Tory insiders have said.

The former trade minister had the most popular appeal among both Tory membership and the wider population of the last three candidates standing.

Instead Rishi Sunak or Liz Truss will make their case to members over the next six weeks — and then to the British public when one of them is announced as prime minister on September 5.

In a last-minute bid to stay in the race, Ms Mordaunt’s team sent a message to all MPs that showed a poll putting her ahead of the remaining pair in being able to win the next general election, but it failed to convince.

At precisely 4pm, Sir Graham Brady, chairman of the 1922 Committee that oversees Conservative affairs, walked into the cavernous Committee Room 14, where all results from the five previous ballots have been announced.

In a room packed with Conservative MPs, he read the outcome in alphabetical order, announcing Ms Truss’s 113 votes last. She beat Ms Mordaunt by eight votes. Immediately there were expletives from a number of Tories. One muttered: “This is perfect for Labour,” and a Ms Mordaunt supporter stated that “the only winner of Rishi versus Liz is Labour”.

Mr Sunak, who won 137 votes, does have a Yorkshire constituency but his vast personal wealth, along with his immensely rich India-born wife, is unlikely to convince Red Wall voters in northern England.

Being Boris Johnson’s chancellor will also provide the opposition with significant ammunition, as will the Conservative leadership debates that ended in unedifying mud-slinging between candidates.

The two remaining Conservative Leader candidates Liz Truss and Rishi Sunak. The eventual winner and next prime minister will be announced on September 5. Getty
The two remaining Conservative Leader candidates Liz Truss and Rishi Sunak. The eventual winner and next prime minister will be announced on September 5. Getty

Ms Truss is keen on steep tax cuts at a time of high inflation, with questions over her ability to steer the economy out of the mire caused by the pandemic and cost-of-living crisis.

She is also not a natural orator — as her rather wooden debate performances demonstrated — and is likely to be easily outshone by Labour leader Sir Keir Starmer during Prime Minister’s Questions.

“If the party was thinking straight, they would have put Penny Mordaunt on the last two,” said one political observer. “She was the only one that was a clean break from the Boris regime who would have nationwide electoral appeal. She was the high-risk, high-reward candidate.”

It is understood that Mr Johnson’s favoured choice for successor is the Foreign Secretary Ms Truss and early in the campaign she was overshadowed by Ms Mordaunt’s sudden surge in the polls.

But Ms Mordaunt’s campaign was then hamstrung by a series of high-level leaks to Conservative-supporting newspapers that attacked her on transgender rights, as well as her time as a Cabinet minister.

On the leadership trail - in pictures

Those leaks are now being investigated by the Cabinet Secretary Sir Simon Case, but that probe was announced after MPs were finishing voting.

Shortly before the vote announcement, a Ms Mordaunt MP supporter sent a text that suggested Ms Truss’ campaign team were behind the personal attacks. “I fear Liz has pushed us out,” he wrote. “The nasty personal attacks cut through.”

Nicola Richards, the MP for West Bromwich East who was backing Ms Mordaunt, said shortly after she had voted: “Penny is the only one who can win us the Red Walls seats. Having seen Penny’s sensible approach in the leadership campaign, that was how she would have governed the country. She has great appeal across the UK."

Michael Fabricant, another Ms Mordaunt supporter, agreed that she had “the best chance of winning the next general election”. He also told The National: “She is very business-like, very conscientious and has real appeal among the electorate."

With Mr Sunak some distance behind Ms Truss in opinion polls of the 160,000 Tory members, he is now expected to make a series of high-level policy announcements. Realistically he has only two weeks in which to make an impression as the first postal ballot papers drop through letterboxes from August 1.

His biggest moment to cut through and make a forceful impression will come when the BBC hosts the first — and possibly only — televised debate between the pair on Monday evening.

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Will the pound fall to parity with the dollar?

The idea of pound parity now seems less far-fetched as the risk grows that Britain may split away from the European Union without a deal.

Rupert Harrison, a fund manager at BlackRock, sees the risk of it falling to trade level with the dollar on a no-deal Brexit. The view echoes Morgan Stanley’s recent forecast that the currency can plunge toward $1 (Dh3.67) on such an outcome. That isn’t the majority view yet – a Bloomberg survey this month estimated the pound will slide to $1.10 should the UK exit the bloc without an agreement.

New Prime Minister Boris Johnson has repeatedly said that Britain will leave the EU on the October 31 deadline with or without an agreement, fuelling concern the nation is headed for a disorderly departure and fanning pessimism toward the pound. Sterling has fallen more than 7 per cent in the past three months, the worst performance among major developed-market currencies.

“The pound is at a much lower level now but I still think a no-deal exit would lead to significant volatility and we could be testing parity on a really bad outcome,” said Mr Harrison, who manages more than $10 billion in assets at BlackRock. “We will see this game of chicken continue through August and that’s likely negative for sterling,” he said about the deadlocked Brexit talks.

The pound fell 0.8 per cent to $1.2033 on Friday, its weakest closing level since the 1980s, after a report on the second quarter showed the UK economy shrank for the first time in six years. The data means it is likely the Bank of England will cut interest rates, according to Mizuho Bank.

The BOE said in November that the currency could fall even below $1 in an analysis on possible worst-case Brexit scenarios. Options-based calculations showed around a 6.4 per cent chance of pound-dollar parity in the next one year, markedly higher than 0.2 per cent in early March when prospects of a no-deal outcome were seemingly off the table.

Bloomberg

Score

New Zealand 266 for 9 in 50 overs
Pakistan 219 all out in 47.2 overs 

New Zealand win by 47 runs

New Zealand lead three-match ODI series 1-0

Next match: Zayed Cricket Stadium, Abu Dhabi, Friday

Updated: July 20, 2022, 4:13 PM`