Thursday’s front pages lead on domestic politics, with a number of publications reporting on the shock exit of James Cleverly from the Conservative Party leadership race. Cleverly had been a clear favourite for much of the contest – which is now down to Kemi Badenoch and Robert Jenrick. 

Elsewhere, an estimate by the IFS that taxes will need to rise by up to £25bn in the budget if Labour is to meet its pledge to protect public spending.

‘Shock’ as Cleverly knocked out 

‘Tory race veers to right as favourite Cleverly is knocked out,’ says the Metro.

The Metro reports the “shock” result will see “Tory fight veers to the right” as “favourite” James Cleverly is knocked out in a “surprise twist.” The paper says the next leader will be between “hardliners” Bandenoch and Jenrick. 

‘Botched attempt to influence run-off has backfired,’ says The Times.

The Times describes it as a “new twist” as Cleverly’s support collapsed “amid claims of a botched attempt to influence the final run-off.” 

‘Jenrick lured Cleverly’s team into false sense of security,’ reports the Telegraph.

The Telegraph offers up five possible reasons for Cleverly’s elimination from the contest. The paper says by far the most complex of these involves supporters of Jenrick backing Cleverly in previous rounds, luring his team into a false sense of security.

The paper’s lead column says the Tories “never cease to surprise” when it comes to selecting a leader. The paper points out that neither Jenrick nor Badenoch have the backing of the majority of Tory MPs – something that “may yet prove problematic.” 

‘Next party leader will be from populist right,’ says The Guardian.

The Guardian says the loss of Cleverly means the party’s next leader will be “from the populist right.” It adds that Cleverly’s elimination shocked the Tories – and left Labour and Lib Dems “delighted.” 

‘Badenoch on course to become Tory leader,’ says the i newspaper.

The i says Kemi Badenoch is back on course to become Tory leader. 

‘Centre-ground favourite out leaves party at mercy of hard right,’ reports The Independent.

“Centre-ground favourite” Cleverly’s elimination means the leadership is now at the mercy of the hard right, writes The Independent. 

‘IFS warns taxes need to rise’ 

‘Cost of avoiding austerity is twice as much as 2010 budget,’ writes The Times.

The Times says the IFS has “calculated the cost of avoiding austerity” – taxes will need to rise by up to £25bn in the budget for Labour to meet its pledge to protect public spending – meaning taxes will rise by twice as much as George Orbourne’s budget in 2010, even if rules on borrowing are loosened. 

‘£25bn gap driven by increase in population,’ claims the Telegraph.

The Telegraph says the £25bn gap has been partly driven by a bigger-than-forecast increase in population of about £1bn. The chancellor’s decision to give public sector workers higher-than-inflation pay deals also helped fuel the gap. 

‘PM refuses to rule out putting employer’s NI up,’ according to the FT.

The FT reports on the PM’s refusal in the Commons to rule out putting up employers’ national insurance, which could involve levying NI on employer pension contributions. 

‘It could raise up to £17bn annually,’ says The Guardian.

The Guardian reports that Treasury officials are examining the move which could raise up to £17bn annually, while a pensions specialist at the consultants PWC tells the paper there could be implications for employee salary sacrifice schemes. 

‘Fury among business leaders about Labour’s revolution for workers,’ says The Mail.

The Mail says there is fury among business leaders about “Labour’s revolution for workers” – also known as the Employment Rights Bill – which will be introduced on Thursday. 

‘Reforms show the government is delivering for working people,; writes the Mirror.

Deputy PM Angela Rayner writes in the Mirror that the reforms are “personal” for her and show the government is delivering for working people. 

‘Silver voices urges Labour to adopt Tory proposals,’ reports the Express.

The Daily Express continues its coverage of the winter fuel payment – saying that some pensioners who are losing their fuel payments are among more than 100,000 people who have been dragged into paying income tax because of frozen thresholds. The campaign group Silver Voices urges Labour to adopt a Tory proposal for an age-related tax allowance.