Category Archives: Liz Truss

Truss’s mini-budget looks likely to cost the Tories the next election | Pippa Crerar

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Tory MPs fear voters see them as the nasty party again after the prime minister refused to rethink tax cuts for the rich

Liz Truss has long channelled Margaret Thatcher – echoing her rhetoric, her free market instincts and even her clothes – but as the Tory conference kicked off in Birmingham on Sunday many in her party were hoping that she would relinquish ambitions to be the next Iron Lady and drop her mini-budget plans.

There were early glimmers of hope. In an article for the Sun, she admitted her proposals would cause “short term disruption” but that she had an “iron grip” on the country’s finances. Then she told the BBC she understood public concerns. “I do accept we should have laid the ground better,” she said.

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Michael Gove says Liz Truss’s tax cut plans ‘not Conservative’

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Influential former minister hints he will not vote for mini-budget measures, in blow to PM

Michael Gove said Liz Truss’s programme of tax cuts was deeply concerning and “not Conservative”, and hinted he would not vote for them, in a major blow to the prime minister’s authority.

Gove, who was removed as levelling up secretary before Boris Johnson left No 10 but remains a hugely influential Tory MP, said he could not back Truss’s abolition of the top 45p rate of tax, or the removal of the cap on bankers’ bonuses.

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Liz Truss admits she should have ‘laid ground better’ before mini-budget and says cabinet not consulted about 45% top rate tax cut – live

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Latest updates: PM vows to press ahead with mini-budget plans and dismisses objections to top rate of tax being axed

Q: Are you absolutely committed to getting rid of the 45% rate of tax?

Yes, says Truss.

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Liz Truss refuses to rule out spending cuts to pay for reduced tax rates

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PM says she accepts ‘we should have laid ground better’ after mini-budget sparked economic turmoil

Liz Truss has refused to rule out public spending cuts and a real-terms drop in benefits to help pay for the mini-budget, as she sought to quell fury over her handling of the economy by admitting she should have “laid the ground better”.

The prime minister offered a sliver of remorse for the way last Friday’s mini-budget was received. There was a temporary collapse in the value of sterling against the dollar, a rebuke from the International Monetary Fund and warnings that interest rates could be hiked again.

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‘Disconnected from reality’: Tory MPs plan rebellion over Liz Truss’s economic agenda

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Prime minister is facing the same fate as Theresa May when the Commons returns and could even be removed as leader

Liz Truss is already facing the possibility of crippling parliamentary rebellions over welfare, planning and a new wave of austerity, as MPs warn that No 10 has become “disconnected from reality”.

With some Conservatives in talks with Labour over how to block elements of the prime minister’s sweeping plans, senior Tories believe that Truss is now heading into the bruising parliamentary warfare that characterised Theresa May’s beleaguered premiership.

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Truss says Nord Stream gas pipeline damage ‘clearly sabotage’

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Russia is suspected to have carried out explosions to put pressure on western energy supplies

Liz Truss has said a series of explosions that severely damaged Russia’s undersea Nord Stream gas pipelines were an act of sabotage.

In a joint report delivered to the United Nations last week, the Danish and Swedish governments have claimed that the leaks in the Nord Stream gas pipelines, which can carry gas to Germany, were caused by blasts equivalent to the power of “several hundred kilograms of explosive”.

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Why OBR forecast is being held back until Kwarteng’s next fiscal plan

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Huge policy changes are needed to get UK back on track – so early publication would give an incomplete picture

The message the government wanted to get out was clear. After less than a month as prime minister, Liz Truss had converted from vocal scourge of Treasury orthodoxy to an active supporter.

Given the fallout in financial markets after the not-so-mini-budget, Truss and her chancellor, Kwasi Kwarteng, laid on a heavily stage-managed meeting on Friday with officials from the Office for Budget Responsibility, the Treasury’s independent economic forecaster, to try to smooth over the mess.

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Treasury to delay publishing OBR forecast by six weeks after 7 October delivery – UK politics live

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Budget watchdog to give assessment of fiscal plans next week but public will have to wait until chancellor’s November statement

Following a meeting with the prime minister, Liz Truss, and the chancellor, Kwasi Kwarteng, the Office for Budget Responsibility has confirmed it will deliver an initial forecast on 7 October.

A spokesperson for the OBR said:

[The forecast] will, as always, be based on our independent judgment about economic and fiscal prospects and the impact of the government’s policies.

We discussed the economic and fiscal outlook, and the forecast we are preparing for the chancellor’s medium-term fiscal plan.

We will deliver the first iteration of that forecast to the chancellor on Friday 7 October, and will set out the full timetable up to 23 November next week.

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How Truss’s post-Brexit farming policy descended into chaos

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Rumours rife as farmers fear PM plans U-turn on financial subsidy measures to improve environment

The chaos in the English countryside began with the click of a civil servant’s mouse. At the end of last week, farmers who had been working with the government on environmental subsidy schemes saw that their regular meetings about it had been removed from their online diaries without warning.

This appeared to hint at what had been feared – that the new post-Brexit farming subsidy scheme was in danger of being scrapped.

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Truss and Kwarteng to hold back OBR forecasts for six weeks

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PM and chancellor say they will not publish projections until late November despite them being ready next week

Liz Truss and Kwasi Kwarteng will refuse to release forecasts from the Office for Budget Responsibility (OBR) until more than six weeks after receiving them, despite calls for them to be published as soon as possible.

The prime minister and chancellor said they would only publish the independent forecasts on 23 November alongside a fiscal statement, despite them being ready on 7 October.

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Arab diplomats urge Liz Truss not to move British embassy to Jerusalem

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Private letter says ‘illegal’ plan could jeopardise free trade deal between UK and Gulf Cooperation Council

Arab ambassadors in London are urging Liz Truss not to go ahead with “an illegal and ill-judged” plan to move the British embassy to Jerusalem.

Some Arab diplomats have even said the plan could jeopardise talks on a highly prized free trade deal between the UK and the Gulf Cooperation Council due to be completed this year.

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OBR: we offered to update forecasts in time for ‘mini-budget’ – live

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Watchdog said it was ready to supply information, but was not asked to do so by Kwasi Kwarteng

Q: Can you reassure listeners that your judgment is better than that of people like the IMF and the Bank of England, who have criticised the mini-budget?

Truss says:

I have to do what I believe is right for the country and what is going to help move our country forward.

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Liz Truss to attend first meeting of European Political Community

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Inaugural summit of EU initiative that aims to unite Europe on issues such as security and energy to take place in Prague

Liz Truss will attend the inaugural summit of the European Political Community (EPC) next week, an initiative by the EU aimed at uniting the continent to work together on security and other common projects.

The prime minister plans to attend the first EPC summit in Prague on 6 October, a No 10 source told the Guardian, despite her scepticism about the EU-led initiative.

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Truss ‘standing by Kwarteng’ as Treasury defends plans despite market turmoil – as it happened

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No 10 says PM has faith in chancellor, as Treasury minister says tax cuts are the ‘right plan’. This blog is now closed

Q: When would you get debt falling as a proprotion of GDP?

Starmer says Labour does want to get that down.

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Truss and Kwarteng had row over sterling crisis response, say Whitehall sources

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First signs of friction between PM and chancellor emerge as pound falls to historic low following mini-budget

The first signs of friction between Liz Truss and Kwasi Kwarteng over how to deal with the tanking pound have emerged, after the pair met in No 10 to thrash out how to respond on Monday.

Downing Street rebuffed talk of a split between No 10 and No 11 over how to deal with the market reaction to the mini-budget, and denied that there was a row.

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Homeowners warned of ‘significant’ rise in UK interest rates

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Bank of England’s chief economist speaks out after mini-budget, with financial markets expecting rates to reach up to 6%

Britain’s homeowners have been warned to brace themselves for a “significant” increase in interest rates from the Bank of England in response to Kwasi Kwarteng’s tax-cutting mini-budget last week.

Huw Pill, Threadneedle Street’s chief economist, added to the concerns of millions of mortgage payers who have already seen hundreds of home loan products pulled by lenders in anticipation of a big increase in the cost of borrowing.

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Party conference will be last before Labour governs, says Andy Burnham

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Greater Manchester mayor predicts regaining lost ‘red wall’ seats in Q&A with Guardian editor-in-chief

Andy Burnham has said Labour is on the brink of government, predicting the party will win back all of the “red wall” seats it lost in 2019.

The Greater Manchester mayor also doubled down on calls for Labour to reinstate the 20p tax rate after planned cuts by Liz Truss, saying the money should be directed to public sector pay, and reiterated calls for nationalisation of the railways, calling it a “no-brainer”.

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Liz Truss ‘plans to loosen immigration rules to boost UK economy’

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PM expected to expand shortage occupation list to help businesses fill jobs amid recession warnings

Liz Truss is expected to loosen immigration rules in an attempt to stimulate economic growth amid warnings of a recession.

The prime minister is set to expand the government’s shortage occupation list in order to help businesses fill vacancies by recruiting overseas workers with less bureaucracy.

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Time is against Liz Truss as she bets big on plan to turn economy around

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With an election two years away, any failure of her radical approach could shred the Tories’ credibility

When Liz Truss flew to the US this week on her first foreign trip as prime minister, she was unequivocal about how she would achieve her mission in office: “Lower taxes lead to economic growth, there is no doubt in my mind about that.”

There was not a quiver of self-doubt in her voice as she gave a round of television interviews at the top of the Empire State Building expanding on her plans for the economy and saying she was “willing to be unpopular” to push them through.

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Truss axes national security council, sparking ‘talking-shop’ concerns

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Labour says new merged foreign policy council could reduce Whitehall policy-makers’ focus on security

Liz Truss has scrapped the national security council and merged it with two Boris Johnson-era foreign policy committees in a structure that Labour warned risked diluting the government’s security focus.

Created in 2010 under the coalition, led by David Cameron and Nick Clegg, to better coordinate security policy after the disaster of the Iraq war, the NSC is now to be replaced by a broad eight-strong foreign policy and security council (FPSC).

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