Liz Truss admits ‘disruption’ to UK economy but stands by forecast-free mini-budget
Liz Truss has for the first time acknowledged that “there has been disruption” to the UK economy following last week’s mini budget.
Since the chancellor’s announcement of £45bn in tax cuts the value of the pound has plummeted, nearly half of mortgages have been pulled and the Bank of England launched a £65bn bail-out to save pension funds from collapse.
Asked on Friday whether she accepted this is largely a crisis of her government’s own making, the prime minister said: “It was very, very important that we took urgent steps to deal with the costs that families are facing this winter, putting in place the energy price guarantee for which we’ve had to borrow to cover the cost… but also making sure that we are not raising taxes at a time where there are global economic forces caused by the war in Ukraine that we need to deal with.
“I recognise there has been disruption. But it was really, really important that we were able to get help to families as soon as possible – that help is coming this weekend.
“Because this is going to be a difficult winter and I’m determined to do all I can to help families and help the economy at this time.”
The government’s energy price guarantee comes into force on Saturday.
It means the average household shouldn’t have to pay more than £2,500 a year on their energy bills.
Ms Truss defended the decision to present last week’s mini-budget without an accompanying forecast from the Office for Budget Responsibility (OBR) due to the need to respond rapidly to rising energy prices, amid concerns that average annual household bills could soon reach £6,000.
The lack of such a forecast is blamed by many – including Mel Stride MP, the Conservative chair of the treasury select committee – of contributing to the week’s turmoil on the markets.
The OBR said a forecast had been offered to Chancellor Kwasi Kwarteng but was not commissioned.
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Truss: Right to ‘take decisive action’
On Friday morning, the prime minister and chancellor met the OBR’s budget responsibility committee and afterwards issued a statement saying they “made it clear they value its scrutiny”.
Read more:
Will the housing market crash? Is my pension safe? Your questions answered
Storm clouds are thickening thanks to Truss and Kwarteng
But Ms Truss did not accept that failing to commission a forecast last week had been a mistake.
“It was important we acted quickly, in that timescale there couldn’t be a full OBR forecast. But we are committed to the OBR forecast.
“We are working together with the OBR. There will be an event on 23 November where the policies are fully analysed by the OBR, but it was a real priority to me to make sure we’re working to help struggling families.”
On Thursday, the chancellor committed to maintaining the triple lock on state pensions, which means they would rise in line with inflation (the triple lock means following whichever is higher consumer price inflation, average wage growth or 2.5%).
But the prime minister declined to offer a guarantee that benefits would also rise in line with inflation, despite a pledge from Boris Johnson’s government to do so.
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‘People have no faith in govt’
Ms Truss said the issue is “something that the work and pensions secretary is looking at, and she will make an announcement in due course, as is the normal practice for the autumn”.
But the prime minister argued the reversal of the National Insurance hike and support for businesses’ energy bills will help families.
“I had real fears that businesses could go out of business this winter because they were facing unaffordable energy bills,” she added.
“We put in place a business scheme, we put in place support for households across the country. That has cost us money, but it was important we acted quickly.”
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With the latest polls putting Labour more than 30 points ahead of the Conservatives, many backbenchers are concerned about the prospect of losing their seats at the next election.
Senior MP Charles Walker said on Friday the conversation is no longer about winning, but how much the party loses by.
But the prime minister declined to comment on whether her party is heading towards electoral defeat, responding that “100% of her focus” is on supporting “the British public and British businesses through this difficult winter”.
World
‘Almost like a game of target practice’: British surgeon says IDF shooting Gazans at aid points
A British surgeon who recently returned from Gaza has told Sky News that there is “profound malnutrition” among the population – and claims IDF soldiers are shooting civilians at aid points “like a game of target practice”.
Dr Nick Maynard spent four weeks working inside Nasser Hospital, where a lack of food has left medics struggling to treat children and toddlers.
The conditions inside the hospital, in the south of the Strip, have been documented in a Sky News report.
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Malnourished girl: ‘The war changed me’
Dr Maynard told The World with Yalda Hakim: “I met several doctors who had cartons of formula feed in their luggage – and they were all confiscated by the Israeli border guards. Nothing else got confiscated, just the formula feed.
“There were four premature babies who died during the first two weeks when I was in Nasser Hospital – and there will be many, many more deaths until the Israelis allow proper food to get in there.”
Palestinians wait to receive food from a charity kitchen in Gaza City. Pic: Reuters
In other developments:
• Israel and the US have recalled their teams from Gaza ceasefire talks
• US envoy Steve Witkoff has accused Hamas “of failing to act in good faith”
• France has announced that it will recognise the state of Palestine
• An influential group of MPs is calling on the UK to “immediately” do the same
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‘Starvation used as a weapon’
‘They were shells’
Dr Nick Maynard has been going to Gaza for the past 15 years – and this is his third visit to the territory since the war began.
The British surgeon added that virtually all of the kids in the paediatric unit of Nasser Hospital are being fed with sugar water.
“They’ve got a small amount of formula feed for very small babies, but not enough,” he warned.
Dr Maynard said the lack of aid has also had a huge impact on his colleagues.
“I saw people I’d known for years and I didn’t recognise some of them,” he added. “Two colleagues had lost 20kg and 30kg respectively. They were shells, they’re all hungry.
“They’re going to work every day, then going home to their tents where they have no food.”
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Ex-Gaza aid worker claims personnel shot at Palestinians
IDF ‘shooting Gazans at aid points’
Elsewhere in the interview, Dr Maynard claimed Israeli soldiers are shooting civilians at aid points “almost like a game of target practice”.
He has operated on boys as young as 11 who had been “shot at food distribution points” run by the US and Israel-backed Gaza Humanitarian Foundation.
“They had gone to get food for their starving families and they were shot,” he said.
“I operated on one 12-year-old boy who died on the operating table because his injuries were so severe.”
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Gaza deaths increase when aid sites open
Dr Maynard continued: “What was even more distressing was the pattern of injuries that we saw, the clustering of injuries to particular body parts on certain days.
“One day they’d be coming in predominately with gunshot wounds to the head or the neck, another day to the abdomen.
“Twelve days ago, four young teenage boys came in, all of whom had been shot in the testicles and deliberately so.
“The clustering was far too obvious to be accidental, and it seemed to us like this was almost like a game of target practice.
“I would never have believed this possible unless I’d witnessed this with my own eyes.”
Palestinians brought to Nasser Hospital after being shot by Israeli forces, according to hospital officials and eyewitnesses. Pic: AP
Sky News has contacted the Israeli Defence Forces for comment.
An IDF spokesperson previously told Sky News it “strongly rejected” the accusations that its forces were instructed to deliberately shoot at civilians.
“To be clear, IDF directives prohibit deliberate attacks on civilians,” the spokesperson said, adding that the incidents are “being examined by the relevant IDF authorities”.
Read more:
Medics at Nasser hospital struggle to feed children
Gaza food situation ‘worst its ever been’
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Israeli military show aid waiting inside Gaza
The Gaza Humanitarian Foundation has been managing the supply of aid to Gaza since Israel lifted an 11-week blockade in May.
It has four aid distribution sites, all of which are located in Israeli military zones, with journalists prohibited from entering.
More than 1,000 people have been reported killed while trying to receive food aid since the GHF took over, according to the UN.
UNRWA, its relief agency for Gaza, has heavily criticised the scheme.
Commissioner general Philippe Lazzarini said: “The so-called ‘GHF’ distribution scheme is a sadistic death trap. Snipers open fire randomly on crowds as if they are given a licence to kill.”
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Just a fraction of the aid trucks needed are making it into the enclave, the UN has said, while multiple aid groups and the World Health Organisation have warned Gazans are facing “mass starvation”.
Mr Lazzarini quoted a colleague on Thursday and said malnourished Palestinians in the Gaza “are neither dead nor alive, they are walking corpses”.
Eleven Thai civilians and a soldier have been killed in clashes between Thailand and Cambodia, officials have said, as long-standing tensions in disputed border areas boiled over into open conflict.
Among those killed was an eight-year-old boy, the army said in a statement.
It said most casualties occurred in Si Sa Ket province, where six people were killed after shots were fired at a fuel station.
Smoke and fire in the Kantharalak district in Thailand amid clashes between Thailand and Cambodia. Pic: Army Region 2 via Facebook/Reuters
Another 14 people have been injured in three Thai border provinces.
Thailand’s health minister Somsak Thepsuthin confirmed the fatalities to reporters, adding Cambodia’s actions, including an attack on a hospital, should be considered war crimes.
Both countries accuse one another of starting the military clashes and have downgraded their diplomatic relations in the rapidly escalating dispute. Thailand has also sealed all land border crossings with Cambodia.
Early on Thursday, a Thai F-16 fighter jet bombed targets in Cambodia, according to Thailand’s army.
“We have used air power against military targets as planned,” Thai army deputy spokesperson Richa Suksuwanon said.
Cambodia’s defence ministry said Thai jets had dropped bombs on a road near the ancient Preah Vihear temple, saying it “strongly condemns the reckless and brutal military aggression of the Kingdom of Thailand against the sovereignty and territorial integrity of Cambodia”.
What has caused Thailand-Cambodia border clashes?
Thai people who fled clashes take shelter in Surin province. Pic: AP
Fighting has taken place in disputed border areas
‘Civilian areas targeted’
Clashes are ongoing in at least six areas along the border, the Thai defence ministry said.
Thailand’s foreign ministry said Cambodian troops fired “heavy artillery” on a Thai military base on Thursday morning and also targeted civilian areas, including a hospital.
“The Royal Thai Government is prepared to intensify our self-defence measures if Cambodia persists in its armed attack and violations upon Thailand’s sovereignty,” the ministry said in a statement.
A livestream video from Thailand’s side showed people, including children and the elderly, running from their homes and hiding in a concrete bunker as explosions sounded.
The clash happened in an area where the ancient Prasat Ta Muen Thom temple stands along the border between Thailand’s Surin province and Cambodia’s Oddar Meanchey province.
Thai people who fled clashes in Surin province, northeastern Thailand. Pic: AP
‘Conflict not spreading’
Thailand’s acting premier said fighting must first stop before peace talks can start.
Caretaker Prime Minister Phumtham Wechayachai told reporters there had been no declaration of war and conflict was not spreading into more provinces.
He said Cambodia had fired heavy weapons into Thailand without any specific targets, resulting in civilian deaths.
Earlier on Thursday, Cambodia downgraded diplomatic relations with Thailand to their lowest level, expelled the Thai ambassador and recalled all Cambodian staff from its embassy in Bangkok.
The day before, its neighbour withdrew its ambassador and expelled the top Cambodian diplomat in protest after five Thai soldiers were wounded in a land mine blast, one of whom lost part of a leg.
A week earlier, a land mine in a different contested area exploded and wounded three Thai soldiers, including one who lost a foot.
Relations between the southeast Asian neighbours have collapsed after a Cambodian soldier was killed in an armed confrontation in a disputed border area in May.
Read more on Sky News:
UK’s ‘tough choices’
‘Man-made starvation’ in Gaza
Man ‘scarred’ by Trump max security prison
Nationalist passions on both sides have further inflamed the situation, and Thailand’s prime minister was suspended earlier this month as an investigation was opened into possible ethics violations over her handling of the border dispute.
Listen to The World with Richard Engel and Yalda Hakim every Wednesday
Border disputes are longstanding issues that have caused periodic tensions between the countries. The most prominent and violent conflicts have been around the 1,000-year-old Preah Vihear temple.
In 1962, the International Court of Justice recognised Cambodian sovereignty over the temple area.
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