Pound latest: Liz Truss blames communication problems for market turmoil after clear economic plan

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Liz Truss and Kwasi Kwarteng libertarian anarchists, says RMT’s Mick Lynch

Liz Truss admitted she should have laid the ground better about the governments mini-budget which triggered dramatic market turmoil.

She told the BBCs Sunday with Laura Kuenssberg: Im afraid there is an issue that interest rates are going up around the world and we do have to face that.

But I do want to say to people I understand their worries about what has happened this week.

She added that she does stand by the package as well as how quickly it was announced, saying, we had to act.

Acknowledging her mistakes, she said: But I do accept we should have laid the ground better I have learned from that and I will make sure that in future we do a better job of laying the ground.

The prime minister also refused to commit to increasing welfare benefits in line with inflation, but said she is absolutely committed to pressing ahead with the abolition of the top rate of income tax for the rich.

Key PointsShow latest update 1664702115Truss shifts the blame to Kwarteng for 45p top tax rate

Liz Truss pointed the blame to her chancellor Kwasi Kwarteng when questioned about the 45p top tax rate, saying it was a decision the chancellor made.

Pippa Crerar, political editor of the Guardian, later commented that the awkward shift of blame to Mr Kwarteng raises questions about the relationship between the prime minister and the chancellor.

Maryam Zakir-Hussain2 October 2022 10:15

1664700915Labours shadow chancellor says PM fails to understand the anxiety and fear people face

Shadow chancellor Rachel Reeves has said the prime minister failed to understand the anxiety and fear felt by people facing huge increases in their mortgage repayments as a result of the governments mini-budget.

Ms Reeves dismissed claims that the growth plan would deliver the annual 2.5% trend rate of growth chancellor Kwasi Kwarteng is aiming for.

The prime minister just doesn’t seem to understand the anxiety and fear. This is a crisis made in Downing Street but it is ordinary working people who are paying the price, she told the BBCs Sunday With Laura Kuenssberg programme.

The idea that trickle-down economics is somehow going to deliver the 2.5% growth we all want to see is for the birds.

The prime minister and the chancellor are doing some sort of mad experiment with the UK economy and trickle down economics. It has failed before and it will fail again.

Maryam Zakir-Hussain2 October 2022 09:55

1664699715Truss must ‘correct’ mini-Budget mistakes, says Michael Gove

Former cabinet minister Michael Gove told the BBC on Sunday that Ms Truss must correct mistakes made in the mini-Budget, saying the public were desparate for reassurance from the government.

Mr Gove said he was deeply worried about the huge amount of borrowing to pay for tax cuts arguing that it was not Conservative. He also said the abolition of the 45p tax rate was a display of the wrong values.

Ms Truss former colleague who would not say whether he rebel over tax cuts in the Commons added: There was a number of mistakes made but there is room and time to address them and correct them.

(REUTERS)

Maryam Zakir-Hussain2 October 2022 09:35

1664698695Truss says pensions will rise in line with inflation, but refuse to say the same for benefits

Liz Truss said she would ensure pensions rise in line with inflation, but refused to make the same commitment for benefits and government departmental spending.

Not ruling out departmental real-term cuts, the Prime Minister told Sunday With Laura Kuenssberg on BBC One: Im not going to write future budgets on your show.

I believe in outcomes rather than inputs, so I believe in what people see and what people feel.

Not ruling out rowing back on Boris Johnsons promise to raise benefit payments in line with inflation, she said: This is something the Department of Work and Pensions Secretary is looking at at the moment. She will make a determination on that and we will announce that this morning.

But she was clear pensions would rise in line with inflation, saying: Ive committed to the triple lock. Yes.

Maryam Zakir-Hussain2 October 2022 09:18

1664697913Liz Truss refuses to commit to benefits hike but stands by tax cut for rich

Prime Minister Liz Truss has refused to commit to increasing welfare benefits in line with inflation, but said she is absolutely committed to pressing ahead with the abolition of the top rate of income tax for the rich.

Keep up with this breaking news story here:

Liz Truss refuses to commit to benefits hike but stands by tax cut for rich

Prime Minister Liz Truss has refused to commit to increasing welfare benefits in line with inflation, but said she is absolutely committed to pressing ahead with the abolition of the top rate of income tax for the rich.

Maryam Zakir-Hussain2 October 2022 09:05

1664697857Truss admits she did not check her mini-budget with the whole of her cabinet

Liz Truss said scrapping the top rate of income tax for the nations highest earners was a decision made by Kwasi Kwarteng rather than being agreed by the wider cabinet.

Asked if she discussed the controversial move with the whole Cabinet, the prime minister told Sunday With Laura Kuenssberg on BBC One: No, no we didnt. It was a decision the chancellor made.

Maryam Zakir-Hussain2 October 2022 09:04

1664697571Liz Truss blames poor communication for market chaos after mini-Budget

Liz Truss has blamed poor communication for some of the market chaos which followed her chancellor Kwasi Kwartengs mini-Budget.

But the prime minister vowed to stick by her 45bn tax cut plan, insisting she had made the right decision to expand government borrowing.

I understand their worries about what has happened this week, but I stand by the package we announced and I stand by the fact that we announced it quickly, she told BBCs Sunday with Laura Kuenssberg.

The prime minister said: But I do accept that we should have laid the ground better. Ive learned from that and I will make sure that in future we do a better job of laying the ground.

Liz Truss blames poor communication for market chaos after mini-Budget

We should have laid the ground better, says PM

Maryam Zakir-Hussain2 October 2022 08:59

1664697050Truss dodges repeated question about cuts to public spending

Liz Truss has avoided the question posed many times by Laura Kuenssberg on BBC about whether she will cut spending on public services.

She diverted the question, saying: I am going to make sure we get value for money for the tax-payer. Im going to make sure we get excellent front-line services.

My approach is to help people get through a very difficult winter.

Maryam Zakir-Hussain2 October 2022 08:50

1664696902Truss continues to defend her financial strategy

The prime minister continued to defend her fiscal actions, as she told BBC: The alternative was people would be paying up to 6,500 on energy bills.

Were not living in a perfect world.

Of course, we need to bring down borrowing as a proportion of GDP over a long-term plan.

What would have been wrong is for us not to have acted.

Ive been honest that we should have laid the ground down better, but we have been living in a set of extreme circumstances here in the UK.

(AP)

Maryam Zakir-Hussain2 October 2022 08:48

1664696644Truss says she accepts they should have laid the ground out better on mini-budget

Speaking on interest rates and her mini-budget on BBC this morning, the prime minister has said: We had to act on taxation to make sure the economy didnt slow down any further, and this is important.

Were trying to avoid a serious economic slowdown.

I do want to say to people, I understand their worries about what has happened this week, I do stand by the package we announced, I stand by the fact that we announced it quickly, but I do accept that we should have laid the ground out better, and I will learn from that.

Maryam Zakir-Hussain2 October 2022 08:44

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