Sunak is warned spending squeeze could lead to Conservative party wipeout at election

As fresh party infighting erupts after two byelection losses, the right are targeting public service funding to pay for tax cuts while others urge restraint

Rishi Sunak is being warned he risks taking his party further towards disaster by sanctioning a new public spending squeeze in a desperate pursuit of pre-election tax cuts, as more Tories said they feared an election wipeout.

With more infighting erupting this weekend after two huge byelection losses in former safe seats, Treasury officials are examining cuts to public spending should they be needed to fund tax cuts, demanded most vociferously by the right of the party.