Liz Truss says she has ‘absolutely no shame’ in performing tax cut U-turn

Published

3 years ago

October 5, 2022

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Liz Truss says she had “absolutely no shame” in performing a dramatic U-turn on the government’s plan to scrap the 45p higher rate of tax.

The prime minister told Sky News’ political editor Beth Rigby she “took the decision very rapidly” to axe the policy, which was “becoming a distraction” from the rest of the government’s economic agenda.

But Home Secretary Suella Braverman told a Conservative Party fringe event hosted by The Telegraph that she was “very disappointed” by the policy reversal, adding that “members of our own parliamentary party staged a coup, effectively”.

Responding to Ms Braverman’s remarks, Levelling Up, Housing and Communities Secretary Simon Clarke also revealed that he objects to the U-turn, stating: “Suella speaks a lot of good sense, as usual.”

Ms Truss’s U-turn came on Monday morning – more than a week after the mini-budget on 23 September.

Politics Hub: Truss refuses to say if she trusts chancellor

The tax cut for the wealthiest 1% was one of a series of proposals in the government’s tax-cutting mini-budget that prompted turmoil in the markets over the past week, with the pound reaching record lows against the dollar.

The policy also received a bitter backlash from Tory MPs and the public, with Labour surging to opinion poll leads not seen since the early 2000s.

Ms Truss told Sky News that removing the 45p tax rate for those annually earning £150,000 or more “wasn’t a priority policy” for the government.

“I listened to people and I think there’s absolutely no shame in a leader listening to people and responding,” Ms Truss said. “And that’s the kind of person I am, and I’ve been totally honest and upfront with people.

“But everything I’ve done as prime minister is focused on helping people get through what is a very difficult winter and very difficult circumstances and putting our country on a stronger footing in the future.”

Announcing the U-turn yesterday, Chancellor Kwasi Kwarteng said: “We have listened.”

In an earlier broadcast round on Tuesday morning, the PM repeatedly refused to say whether she trusted the chancellor following the 45p tax rate U-turn, instead saying the two work “very closely”.

Ms Truss was also probed on whether she supports increasing benefits in line with inflation, replying that a decision “will be made in due course”.

Ms Truss is facing a fresh battle with Conservative MPs over a potential benefits squeeze and cuts to public spending, after already being forced into making a policy U-turn on her tax cuts yesterday.

The PM has not ruled out a real-terms cut to benefits.

Penny Mordaunt became the first cabinet minister to openly oppose the idea of not uprating benefits with inflation, telling Times Radio: “I’ve always supported – whether it’s pensions, whether it’s our welfare system – keeping pace with inflation. It makes sense to do so. That’s what I voted for before.”

The leader of the House of Commons added: “We want to make sure that people are looked after and that people can pay their bills. We are not about trying to help people with one hand and take away with another.”

But despite growing pressure to outline her position on the issue, Ms Truss reiterated numerous times on Tuesday morning that “no decision has been made”.

Benefits are usually uprated in line with the consumer price index (CPI) rate of inflation from September, with the rise coming into effect the following April.

The Institute for Fiscal Studies estimates that each percentage point rise in CPI adds £1.6bn to welfare spending.

Speaking after Ms Truss’s interview round, former Conservative Party leader Sir Iain Duncan Smith said it “doesn’t make any sense” to not uprate benefits in line with inflation.

He told a Conservative party fringe event in Birmingham that he resigned as work and pensions secretary under former Conservative PM David Cameron in 2016 because the government had “lost the plot” over cuts to the welfare system and that it “would be a mistake to do that again”.

Earlier, Justice Secretary Brandon Lewis refused to give his position when asked about the government’s plans to uprate benefits on Sky News, telling Kay Burley: “There is a process around this that the Department for Work and Pensions, Chloe Smith, the secretary of state, works through.”

He said announcements will be made “over the autumn”, adding: “I’m not going to pre-judge what that will be.”

World

Israel attacks Houthi targets at three ports and power plant in Yemen

Published

4 hours ago

July 7, 2025

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Israel attacks Houthi targets at three ports and power plant in Yemen

Israel says its military has attacked Houthi targets at three ports and a power plant in Yemen.

Defence minister Israel Katz confirmed the strikes, saying they were carried out due to repeated attacks by the Iranian-backed rebel group on Israel.

Mr Katz said the Israeli military attacked the Galaxy Leader ship which he claimed was hijacked by the Houthis and was being used for “terrorist activities in the Red Sea”.

It came after the Israel Defense Forces (IDF) issued an evacuation warning for people at Hodeidah, Ras Issa, and Salif ports – as well as the Ras al Khatib power station, which it said is controlled by Houthi rebels.

The IDF said it would carry out airstrikes on those areas due to “military activities being carried out there”.

Afterwards, Mr Katz confirmed the strikes at the ports and power plant.

Earlier in the day, a ship was reportedly set on fire after being attacked in the Red Sea.

A private security company said the assault, off the southwest coast of Yemen, resembled that of the Houthi militant group.

It was the first such incident reported in the vital shipping corridor since mid-April.

The vessel, identified as the Liberian-flagged, Greek-owned bulk carrier Magic Seas, had taken on water after being hit by sea drones, maritime security sources said. The crew later abandoned the ship.

The Houthi rebels have been launching missile and drone attacks against commercial and military ships in the region in what the group’s leadership called an effort to end Israel’s offensive against Hamas in Gaza.

Between November 2023 and January 2025, the Houthis targeted more than 100 merchant vessels with missiles and drones, sinking two of them and killing four sailors.

The Houthis paused attacks in a self-imposed ceasefire until the US launched an assault against the rebels in mid-March.

That ended weeks later and the Houthis have not attacked a vessel, though they have continued occasional missile attacks targeting Israel.

A renewed Houthi campaign against shipping could again draw in US and Western forces to the area.

The ship attack comes at a sensitive moment in the Middle East.

A possible ceasefire in the Israel-Hamas war hangs in the balance and Iran is weighing up whether to restart negotiations over its nuclear programme.

It follows American airstrikes last month, which targeted its most-sensitive atomic sites amid an Israeli war against the Islamic Republic that ended after 12 days.

How did the Houthis come to control much of Yemen?

A civil war erupted in Yemen in late 2014 when the Houthis seized Sanaa.

Worried by the growing influence of Shia Iran along its border, Saudi Arabia led a Western-backed coalition in March 2015, which intervened in support of the Saudi-backed government.

The Houthis established control over much of the north and other large population centres, while the internationally recognised government based itself in the port city of Aden.

World

‘We’ll never yield’: Millions of Iranians unite in mourning

Published

4 hours ago

July 7, 2025

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'We'll never yield': Millions of Iranians unite in mourning

Under the red flag of martyrdom, they beat their chests in memory of a fallen religious leader as the cleric recounts his fate outside one of Tehran’s oldest mosques.

Imam Hussein was tricked and martyred by his enemies in the seventh-century battle of Karbala. The crowd of grown men and women wept with grief as Hussein’s story was retold on Sunday.

Ashura is always deeply moving for the Shia faithful but this year even more so. It comes after the trauma of Israel’s surprise attacks on Iran.

There was a sense of emotional release and a chance for Iranians to come together in solidarity.

Ashura is also a reminder that Iran’s revolutionary leaders draw much of their power from the strength of religion in this country after a conflict its enemies hoped would see those same leaders toppled.

The festival has come at just the right time for its embattled government.

Iran’s supreme leader has appeared in public for the first time since Israel attacked his country. Ayatollah Ali Khamenei was greeted with ecstatic cheers by his followers at Ashura prayers.

His supporters told us they welcomed his return. “I was so happy that I didn’t know what to do,” said one woman. “This caused our big enemies the United States and Israel to receive a great slap in the mouth.”

“His appearance on TV for Ashura,” a young man told us, “showed that all the talk about him hiding and taking the path of peace with the United States is not true and it shows that he is holding his position strongly and steadfastly”.

We had been given rare access to Iran among a handful of journalists who were let in after the 12-day war.

Its scars aren’t hard to find – buildings left with gaping holes where Israeli airstrikes took out members of Iran’s elite, one after another.

And Abbas Aslani, an analyst with close ties to the government, says there is a fear it may not be over.

“The Iranian government and the army are prepared for a new round of conflict, because they think that the other party, specifically Israel, is not to be trusted in terms of any ceasefire,” he said.

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At the Ashura ceremony, the crowd chants, “we’ll never yield to humiliation” – an age-old message for Iran’s enemies today as they brace for the possibility of more conflict.

World

What is the possible Gaza hostage and ceasefire deal – and what challenges could lie ahead?

Published

10 hours ago

July 6, 2025

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What is the possible Gaza hostage and ceasefire deal - and what challenges could lie ahead?

An Israeli delegation is heading to Qatar for indirect talks with Hamas on a possible hostage and ceasefire deal in Gaza.

The development comes ahead of a meeting between Israeli Prime Minister Benjamin Netanyahu and US President Donald Trump in Washington DC on Monday aimed at pushing forward peace efforts.

The US leader has been increasing pressure on the Israeli government and Hamas to secure a permanent ceasefire and an end to the 21-month-long war in Gaza.

Mr Trump said on Tuesday on social media that Israel had agreed “to the necessary conditions to finalise” a deal on a truce.

And Hamas, which runs the coastal Palestinian territory, said on Friday it has responded to the US-backed proposal in a “positive spirit”.

So what is in the plan?

The plan is for an initial 60-day ceasefire that would include a partial release of hostages held by the militant group in exchange for more humanitarian supplies being allowed into Gaza.

The proposed truce calls for talks on ending the war altogether.

The war in Gaza began after Hamas attacked Israel on 7 October 2023, killing 1,200 people and taking 250 others hostage. Dozens of hostages have since been released or rescued by Israeli forces, while 50 remain in captivity, including about 30 who Israel believes are dead.

The proposal would reportedly see about half of the living hostages and about half of the dead hostages returned to Israel over 60 days, in five separate releases.

Eight living hostages would be freed on the first day and two released on the 50th day, according to an Arab diplomat from one of the mediating countries, it is reported.

Five dead hostages would be returned on the seventh day, five more on the 30th day and eight more on the 60th day.

That would leave 22 hostages still held in Gaza, 10 of them believed to be alive. It is not clear whether Israel or Hamas would determine who is to be released.

Hamas has sought guarantees that the initial truce would lead to a total end to the war and the withdrawal of Israeli troops from Gaza.

A Hamas official has said Mr Trump has guaranteed that the ceasefire will extend beyond 60 days if necessary to reach a peace deal, but there is no confirmation from the US of such a guarantee.

Possible challenges ahead

And in a sign of the potential challenges still facing the two sides, a Palestinian official from a militant group allied with Hamas said concerns remained.

The concerns were over humanitarian aid, passage through the Rafah crossing in southern Israel to Egypt and clarity over a timetable for Israeli troop withdrawals.

Hamas’s “positive” response to the proposal had slightly different wording on three issues around humanitarian aid, the status of the Israeli Defense Forces (IDF) inside Gaza and the language around guarantees beyond the 60-day ceasefire, a source with knowledge of the negotiations revealed.

But the source told Sky News: “Things are looking good.”

The Times of Israel reported Hamas has proposed three amendments to the proposed framework.

According to a source, Hamas wants the agreement to say that talks on a permanent ceasefire will continue until an agreement is reached; that aid will fully resume through mechanisms backed by the United Nations and other international aid organisations; and that the IDF withdraws to positions it maintained before the collapse of the previous ceasefire in March.

Mr Netanyahu’s office said in a statement that changes sought by Hamas to the ceasefire proposal were “not acceptable to Israel”.

However, his office said the delegation would still fly to Qatar to “continue efforts to secure the return of our hostages based on the Qatari proposal that Israel agreed to”.

Another potential challenge is that Mr Netanyahu has repeatedly said Hamas must be disarmed, which is a demand the militant group has so far refused to discuss.

Hamas has said it is willing to free all the hostages in exchange for a full withdrawal of Israeli troops and an end to the war in Gaza.

Israel rejects that offer, saying it will agree to end the war if Hamas surrenders, disarms and goes into exile – something that the group refuses.

Previous negotiations have stalled over Hamas demands of guarantees that further negotiations would lead to the war’s end, while Mr Netanyahu has insisted Israel would resume fighting to ensure the group’s destruction.