Liz Truss sticks by plan but admits mistakes, and says top-rate tax cut was chancellor’s idea
Liz Truss has admitted that she “should have laid the ground better” for the government’s tax-cutting mini-budget after the pound slumped to a record low.
The prime minister said she has “learnt from that” and “will make sure in future we will do a better job of laying the ground”.
Ms Truss also doubled down on the decision to remove the top rate of income tax (45%) as “it’s part of an overall package of making our tax system simpler and lower” – but admitted the policy was not discussed with the cabinet.
“It was a decision that the chancellor made,” she said.
Liz Truss stands by mini-budget – Politics latest
Ms Truss told the BBC’s Sunday with Laura Kuenssberg programme: “I do stand by the package we announced and I stand by the fact that we announced it quickly.”
It comes after the cost of government borrowing spiked following the fiscal event last month.
Stressing that her government has “a very clear plan”, Ms Truss said she understands “how worried people are” as the country faces a “turbulent and stormy time”.
The PM later repeatedly refused to answer whether there will be spending cuts to public services under her government and declined to commit to rising benefits in line with inflation.
“This is something the work and pensions secretary is looking at,” she said.
Meanwhile, Conservative Party chairman Jake Berry said “markets can overreact” to new economic policy.
“Let’s see where the markets are in six months’ time,” he told Sky News’s Ridge on Sunday programme.
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‘Cut consumption or get a new job’
Mr Berry also confirmed that Conservative MPs who vote against the government’s plan for tax cuts will lose the whip.
It has been reported that some Tory MPs are preparing to vote with Labour to prevent measures announced by the chancellor on 23 September, including abolishing the top rate of income tax.
In a sign that the leadership is now indeed on a collision course with many of its own MPs over the mini-budget, former cabinet minister Julian Smith posted on social media: “The first job of an MP is to act in the interest of their constituents and in the national interest. We cannot clap for carers one month and cut tax for millionaires months later.”
Mr Berry also urged Tory MPs to unite behind Ms Truss and her programme, saying she had “a mandate both from colleagues and our membership”.
“I’m sure that if we do that it will lead ultimately to long-term electoral success,” he said.
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Conservative Mayor of the West Midlands, Andy Street, added that the government’s mini-budget showed “good leadership”.
“You can’t go on year after year without reviewing your core. That is good business. It’s good leadership,” he told Sky News’s Ridge on Sunday programme.
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Govt: No U-turn on tax plan
He continued: “So a different way of thinking was required. And the huge majority of investment in the financial statement was about that different way of thinking.”
But former cabinet minister Michael Gove accused Ms Truss’s plans of having the “wrong values” and hinted that he could vote against the tax-cutting measures in the Commons.
Mr Gove told the BBC Ms Truss was right to acknowledge that “there needs to be a recognition of mistakes”, adding: “But it is still the case that there is an inadequate realisation at the top of government about the scale of change required.
“Yes, the energy package was the most important thing in the fiscal event, but broadly 35% of the additional money that we are borrowing is not to cut energy costs, it is for unfunded tax cuts.”
But the PM vowed to “win the hearts and minds” of Tory MPs over her growth plan.
Ms Truss also ruled out publishing forecasts from the independent Office of Budget Responsibility ahead of the chancellor’s mid-term plan on 23 November.
While she argued that the government “simply didn’t have time” to publish OBR data alongside Mr Kwarteng’s mini-budget.
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Liz Truss ‘a danger to the economy’
It comes as Ms Truss and the Tories’ approval ratings again plummeted in a fresh poll – as Labour jumped to a 19-point lead.
The Opinium poll showed 55% of voters disapprove of the new prime minister and just 18% approve, which is worse than Boris Johnson’s final days in office.
Mr Kwarteng is no more popular after the pair doubled down on economic policies announced last week, with 55% also disapproving of him and 27% approving.
Mr Berry shrugged off the significant Labour leads in recent polls, telling Sky News they would look “very different” closer to the election.
World
Asianmarkets bounce back after Trump pauses higher tariffs for most countries – despite increasing those on China to 125%
Asian markets have reacted positively after Donald Trump paused his so-called “reciprocal” tariffs on most of America’s trading partners for 90 days, despite the US president increasing those on China to 125%.
There have been fears of a global recession and stock markets around the world had plummeted after Mr Trump announced his “Liberation Day” tariffs on Wednesday 2 April.
However, Japan’s Nikkei share average was up 8.2% by 3.50am BST, while the broader Topix had risen 7.5%.
Similarly, the S&P 500 stock index had jumped 9.5% and global markets bounced back following Mr Trump’s announcement on Wednesday that the increased tariffs on nearly all trading partners would now be paused.
Tariffs latest: Trump gives reasons for pausing some tariffs
In a post on his Truth Social platform, Mr Trump said the “90-day pause” was for the “more than 75 countries” who had not retaliated against his tariffs “in any way”.
He added that during this period they would still have to pay a “substantially lowered” 10% tariff, which is “effective immediately”.
It is lower than the 20% tariff that Mr Trump had set for goods from the European Union, 24% on imports from Japan and 25% on products from South Korea.
The UK was already going to face a blanket 10% tariff under the new system.
Mr Trump said the increased 125% tariff on imported goods from China was “effective immediately”.
He added: “At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other countries, is no longer sustainable or acceptable.”
Hours after Mr Trump announced the pause on tariffs for most countries, a White House official clarified that this did not apply to the 25% duties imposed on some US imports from Mexico and Canada.
The tariffs were first announced in February and Mexico and Canada were not included in the “Liberation Day” announcements.
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Donald Trump says China ‘wants to make a deal’
Hours before the 125% tariff on China was revealed, Beijing said it was increasing tariffs on US goods by 50%.
It meant tariffs of 84% would be enforced on US goods – up from the 34% China had previously planned.
Mr Trump spoke to reporters in the Oval Office. Pic: Reuters
China ‘want to make a deal’
Asked why he posted “BE COOL” on Truth Social hours before announcing his tariff pause, Mr Trump told reporters at the White House: “I thought that people were jumping a little bit out of line.”
“They were getting yippy, you know, were getting a little bit yippy, a little bit afraid,” he added.
Mr Trump continued: “China wants to make a deal, they just don’t know how to go about it.
“[They’re] quite the proud people, and President Xi is a proud man. I know him very well, and they don’t know quite how to go about it, but they’ll figure it out.
“They’re in the process of figuring out, but they want to make a deal.”
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White House press secretary Karoline Leavitt said the walk back was part of a grand negotiating strategy by Mr Trump.
“President Trump created maximum negotiating leverage for himself,” she said, adding that the news media “clearly failed to see what President Trump is doing here”.
US Treasury Secretary Scott Bessent also insisted Mr Trump had strengthened his hand through his tariffs.
“President Trump created maximum negotiating leverage for himself,” he said.
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Mr Bessent said Mr Trump decided to raise tariffs on China because Beijing hadn’t reached out to the US and instead increased its own levies on US goods.
Downing Street said that the UK will “coolly and calmly” continue its negotiations with the US.
A Number 10 spokeswoman said: “A trade war is in nobody’s interests. We don’t want any tariffs at all, so for jobs and livelihoods across the UK, we will coolly and calmly continue to negotiate in Britain’s interests.”
Along the thin strip of beach and woodland known as the Vistula Spit which marks the northernmost demarcation between Poland and the Russian exclave of Kaliningrad, there is not much in the way of a border.
Just some torn wire fencing and a few rotten posts which seem to stagger drunkenly into the shallows of the Baltic Sea.
Beneath a sign barring entry, we find a couple of empty bottles of Russian cognac and vodka.
It doesn’t feel like the edge of NATO territory.
This doesn’t feel like the edge of NATO territory
“I don’t see much protection. It’s not good,” says Krzysztof from Katowice, who has come to inspect the border himself.
“We have to have some kind of scare tactic, something to show that we are trying to strengthen our army,” says Grzegorz, who lives nearby.
“At the same time I think I would not base the defence of our country solely on our army. I am convinced that Europe or America, if anything were to happen, will help us 100%.”
Poland is investing massively in its defence, with military spending set to hit 4.7% of GDP in 2025, more than any other NATO country.
Polish Prime Minister Donald Tusk has said he will introduce voluntary military training for men of any age, and women too should they wish, so the army has a competent reserve force in the event of war.
Border between EU and the Russian Federation
He is investing $2.5bn in stronger border fortifications between Russia and Belarus, a project called East Shield which will include anti-tank obstacles, bunkers and potentially minefields too.
Along with its Baltic neighbours, Poland is withdrawing from the Ottawa convention against the use of land mines. It hasn’t committed to using them, but it wants to have that option.
We’ve been granted access to one of the cornerstones of Polish, and European defence, which is a couple of hours drive from the Vistula spit at the Redowicze military base.
Aegis Ashore Poland
Aegis Ashore Poland, together with its sister site in Romania, are the land-based arms of NATO’s missile defence shield over Europe, which is run by the US navy.
They are symbols of the US commitment to NATO and to the protection of Europe.
The control room at Aegis Ashore Poland
And despite changes at the top of the Pentagon it is “business as usual”, says Captain Michael Dwan who oversees air and missile defence within the US Sixth Fleet.
“Our mission to work with NATO forces has been unchanged. And so our commitment from the United States perspective and what capability we bring to ballistic missile defence and the defence of NATO is championed here in Poland.”
The control room at Aegis Ashore Poland
As far as Russia is concerned, NATO’s two missile defence bases in Romania and Poland represent a NATO threat on their doorstep and are therefore a “priority target for potential neutralisation”, per Russia’s foreign ministry.
NATO says the installations are purely defensive and their SM-3 interceptor missiles are not armed and are not intended to carry warheads. Russia counters they could easily be adapted to threaten Russia.
Not the case, Captain Dwan says.
Aegis Ashore Poland
Aegis Ashore Poland
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“It’s not a matter of moving offensive weapons here into the facility, the hardware and the infrastructure is simply not installed.
“It would take months or years to change the mission of this site and a significant amount of money and capability and design.”
With so much marked “secret” on the site, it seems amazing to be granted the access.
But for NATO, transparency is part of deterrence. They want potential adversaries to know how sophisticated their radar and interception systems are.
They know that if they carried warheads on site, that would make them a target so they don’t.
Deterrence also depends on whether potential adversaries believe in the US’s commitment to NATO and to Europe’s defence.
On an operational level, as far as the troops are concerned, that commitment may still be iron-clad.
But as far as its commander-in-chief goes, there is still – as with so much around Donald Trump’s presidency – a great deal of uncertainty.
In the Oval Office on Wednesday afternoon President Trump suggested he might bundle a potential US troop drawdown in Europe together with the issue of EU trade and tariffs.
“Nice to wrap it up in one package,” he said, “it’s nice and clean”.
Probably not the way Europe sees it, not with a resurgent Russia on their doorstep, economic tailwinds breeding animosity and the notion of Pax Americana crumbling at their feet.
The defence secretary will urge “coalition of the willing” nations to increase pressure on Russia to end its war in Ukraine as plans to support peace ramp up.
John Healey and French defence minister Sebastien Lecornu will lead about 30 defence ministers in Brussels on Thursday as they discuss operational plans for a multinational peacekeeping force in Ukraine as part of the “coalition of the willing”.
They will look at each nation’s capabilities and how they could be best used to support Ukraine’s long-term defence and security as part of what the Ministry of Defence called a “reassurance force”.
UK and French military chiefs discussed planning with Ukrainian President Volodymyr Zelenskyy and his military chiefs in Kyiv last weekend.
Peace negotiations are ongoing between the US and Russia, however, US officials appear to be growing increasingly impatient with the lack of progress after Donald Trump publicly suggested a month ago Vladimir Putin wants to end the war.
Read more: Who’s in and who’s out of the coalition of the willing?
Leaders of nations part of the coalition of the willing at a summit in Paris on 27 March. Pic: AP
Last Tuesday, the Kremlin described the latest US peace proposal as unacceptable in its current form because it does not solve the “root causes” of the conflict.
Mr Putin wants to dismantle Ukraine as an independent, functioning state and has demanded Kyiv recognise Moscow’s annexation of Crimea and other partly occupied areas and pull its forces out, as well as a pledge for Ukraine to never join NATO and to demilitarise.
Secretary of State Marco Rubio said on Friday Mr Trump is not “going to fall into the trap of endless negotiations” with Moscow.
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Children killed in Russian missile strike
Despite the apparent impasse in talks, the coalition of the willing – which does not include the US – is continuing with its plans for when peace is agreed.
Mr Healey is expected to tell his fellow defence ministers: “We cannot jeopardise the peace by forgetting about the war, so we must put even more pressure on Putin and step up our support for Ukraine – both in today’s fight and the push for peace.
“Our commitment is to put Ukraine in the strongest position to protect Ukraine’s sovereignty and deter future Russian aggression.”
On Friday, the defence secretary and his German counterpart, Boris Pistorius, will chair the 27th meeting of the Ukraine Defence Contact Group at NATO’s headquarters in Brussels.
The group is an alliance of about 50 countries – all 32 NATO member states, including the US, and about 20 other countries – that has been supporting Ukraine by sending military equipment since Russia invaded in April 2022.
A Ukraine Defence Contact Group meeting – including the US defence secretary – in March. Pic: AP
Mr Healey and Mr Pistorius will “drive forward additional military support” as Russia continues to attack Ukraine.
The latest development in the war has seen Mr Zelenskyy say Ukraine has intelligence there are at least 155 Chinese citizens fighting for the Russian military.
On Tuesday, Mr Zelenskyy released a video of a Chinese soldier taken by Ukrainian forces, with another captured by Ukrainian forces, he said.
Chinese foreign ministry spokesperson Lin Jian denied claims there were “many more” Chinese citizens fighting alongside Russians in Ukraine.
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