Tory leadership loser Rishi Sunak is to stay away from the party’s annual conference next week after the new government’s disastrous first mini-budget – claiming he wants to let winner Liz Truss ‘own the moment’.

The ex-chancellor warned during their TV debates that her plans would push ‘millions into misery’ and bring defeat at the next election. A source close to the MP for Richmond told The Times he will be ‘in Yorkshire instead’ to ‘give Truss all the space she needs to own the moment’.

His revenge emerged as Tory civil war broke out only three weeks after Ms Truss became prime minister – and as the Bank of England stepped in to buy government debt to shore up confidence and prevent a run on pension

Funds, hitting retirement plans for millions. Chancellor Kwasi Kwarteng slashed the basic rate of tax from 20p to 19p to help lower paid workers in last Friday’s mini-budget, but also axed the 45 per cent top tax rate for high earners in a bid to fire up the economy.

But his £45billion borrowing – on the back of billions more to cap families’ energy bills for the next two years as war in Ukraine sends prices soaring – spooked global markets which feared UK debt would be ‘unsustainable’.

On Monday the pound plunged to a record low against the surging dollar, causing pain for industry and travellers and threatening to fuel inflation.

A day later mortgage lenders pulled almost 1,000 deals as fears grew that the Bank of England will raise interest to seven per cent to fight rising prices.

The IMF, US Federal Reserve and Moody’s rating agency all claimed the plans were likely to spark inflation, increase inequality, reduce growth, destabilise the UK economy and add to the risk of a global recession.

The fall-out echoes Mr Sunak’s warnings, and Tory MPs are said to be sharing debate video clips on WhatsApp. In one he tells Ms Truss her ‘fairytale’ plans could lead to seven per cent interest, informing her: ‘That’s thousands of pounds on their mortgage bill.’ In another he tells he then-foreign secretary her plan was a ‘short-term sugar rush’ of £40billion unfunded tax cuts.

Several other senior Tories are said to be snubbing next week’s conference in Birmingham – a week after Labour leader Sir Keir Starmer made the most of the crisis with a buoyant showing at his own conference with his party now 17 points ahead in two polls.

Ex-chancellor Sajid Javid, treasury committee chair Mel Stride and former minister David Davis are tipped to be absent, and party whips were said to be ringing Tory MPs to press them to attend for a display of unity.

No.10 last night insisted Ms Truss stood by her chancellor and there would be no U-turn. Sources close to Mr Kwarteng said he would not quit or change course. Both kept a low profile yesterday. And financial secretary to the treasury Andrew Griffith told Sky News: ‘We think they’re the right plans, they make our economy competitive. Getting on and delivering that plan, that’s what we’re focused on.’

Whitehall sources later told the BBC that treasury secretary Chris Philp is to demand ‘spending efficiencies’ from government departments.

Sir Charlie Bean, former Bank of England deputy governor, warned the tax cuts would lead to reduced public spending. ‘You have to be prepared, say, to move away from our health service, free at the point of delivery to one funded by social insurance like in Germany,’ he told Sky News.

The Bank justified its intervention yesterday, saying: ‘Were dysfunction in this market to continue or worsen, there would be a material risk to UK financial stability.’ There were fears of a run on pension funds, similar to one that destroyed Northern Rock bank in 2007 as the financial crash began.

Yesterday the value of the pound stayed low but stable, at around $1.07 after Monday’s record fall to $1.03.

Sir Keir insisted parliament should be recalled today, while some Tories predicted yet another leadership vote.

‘Kwasi and Liz will have to go,’ one senior MP told Sky News. ‘They have to, they’re actually crashing the economy.’

A backbencher added: ‘It’s actually incredible that the UK central bank has had to step in to protect the UK from the actions of the UK’s own government – a humiliation.’

Another told Times Radio: ‘Politically this is extinction level for us. It’s all over. Half of my colleagues realise it, the question is just how quickly will the other half catch up.’

Backbencher Robert Largan called the cut in top rate tax a ‘mistake’. And Julian Smith told Ms Truss to ‘keep a growth plan but… make changes’.

MP Simon Hoare tweeted: ‘These are not circumstances beyond the control of the government and treasury. This inept madness cannot go on.’

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