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Liz Truss has pledged not to cut public spending to balance the books in her first PMQs since the chancellor’s contentious mini-budget – despite a leading economics-focused think tank warning the government is billions short of the sums needed.

The prime minister insisted she was “absolutely” not planning public spending reductions, but vowed that taxpayers’ money would be used well.

Her pledge comes as the government continues to be under pressure for the market turmoil that erupted after the government announced its £45bn package of unfunded tax cuts last month.

Speaking to Sky News after PMQs, Mel Stride, the Chair of the Treasury Select Committee, said that Chancellor Kwasi Kwarteng should not take the reversal of some of his tax cuts “off the table”.

He said that “holding the line” on the measures announced in his mini-budget will be even more difficult following Ms Truss’ comments on public spending, and that 31 October – the date of the chancellor’s debt-cutting plan being published – is a moment for a “reset”.

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Tories ‘must get back to being fiscally responsible’

He told political editor Beth Rigby: “(Chancellor Kwarteng) has to be so careful that he doesn’t take any chances, he has to be sure the markets are going to like what they hear, that’s why I think rowing back on the tax cuts have to remain on the table.

“It’s extraordinarily important that whatever the chancellor comes forward with on the 31st, that it cuts it with the market.

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“If there is any doubt in his mind about anything he is doing, he would do well to think again, he has got to play it ultra safe.”

Truss says last thing country needs is a general election – politics latest

Economists have suggested that to gain a grip on the national finances, the government will have to make spending cuts or tax rises worth tens of billions of pounds.

The “Green Budget”, from the Institute for Fiscal Studies and Citi, the investment bank, warned this week that the chancellor would have to cut spending or raise taxes by £62bn if he is to stabilise or reduce the national debt, as he has repeatedly promised in recent weeks.

That shortfall is a direct consequence of the measures announced since the Truss government took office, which include its reversal of various tax increases such as corporation tax and national insurance and its energy price guarantee.

Chancellor Kwasi Kwarteng would instead have to carry out dramatic cuts, the think tank said, potentially reducing government investment and slashing public spending on departments that have already been squeezed during the austerity years.

The cost of government spending increased on Wednesday, with the pound falling against the dollar.

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‘Will she reverse “kamikaze budget”?’

‘Kamikaze budget’

At PMQs, Sir Keir Starmer reminded Ms Truss that during her leadership campaign over the summer she had pledged: “I’m not planning public spending reductions.”

Asked if she was going to stick to that, the prime minister replied: “Absolutely… We are spending almost £1tn of public spending. We were spending £700bn back in 2010.

“What we will make sure is that over the medium term the debt is falling. But we will do that not by cutting public spending but by making sure we spend public money well.”

The Labour leader once again called for the government to reverse their “kamikaze budget”, warning Conservative MPs that voters will not forgive their party if they “defend” it.

‘Ducking responsibility’

Sir Keir also accused the prime minister of “ducking responsibility” for the consequences of her government’s economic policies and of being “lost in denial”.

“Who voted for this?” he questioned.

Ms Truss responded: “The way that we will get our country growing is through more jobs, more growth, more opportunities, not through higher taxes, higher spending and his friends in the union stopping hard-working people getting to work.”

‘No-fault’ evictions pledge

Also during PMQs, Ms Truss committed to honouring a 2019 Tory manifesto pledge to scrap “no-fault” evictions of private renters in England.

There had been reports earlier this week that the government could try and shelve the commitment.

On Tuesday, Downing Street said no decisions had been made on whether to pause a promised ban on Section 21 notices, which allow landlords to evict a tenant without giving a reason.

Labour MP Graham Stringer asked Ms Truss: “Can the PM reassure the 11 million private renters in this country that she will carry out her commitment to get rid of no-fault evictions?”

Ms Truss replied: “I can.”

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‘PM ignoring mini-budget damage’

Energy help

The prime minister also announced that Jacob Rees-Mogg, the business secretary, is working on a scheme to help households and businesses bring down their energy costs.

Last Friday, Ms Truss ruled out launching an energy-saving public information campaign after warnings from the National Grid Electricity System Operator that planned three-hour power blackouts could be imposed in some areas.

Only two days ago Downing Street had defended Ms Truss’s decision not to launch a “bespoke” energy-saving public information campaign during the energy crisis, saying it is down to individuals to decide what is right for them.

Mr Kwarteng has already dropped plans to abolish the 45% tax rate on earnings over £150,000 after internal criticism of the policy, though he has insisted he remains committed to the rest of his mini-budget.

Asked what happens after the Bank stops buying bonds on Friday, the chancellor said: “Well, it’s a matter for the governor.”

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At least 11 killed in Israeli strikes on central Beirut, Lebanese authorities say

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At least 11 killed in Israeli strikes on central Beirut, Lebanese authorities say

At least 11 people have been killed and 63 injured in an Israeli strike on central Beirut, Lebanese authorities have said.

Lebanon‘s health ministry said the death toll could rise as emergency workers dug through the rubble looking for survivors. DNA tests are being used to identify the victims, the ministry added.

State-run National News Agency (NNA) said the attack “completely destroyed” an eight-storey residential building in the Basta neighbourhood early on Saturday.

Footage broadcast by Lebanon’s Al Jadeed station also showed at least one destroyed building and several others badly damaged around it.

The central Basta neighbourhood in Beirut, where four people were killed in an Israeli airstrike
Image:
The central Basta neighbourhood in Beirut, where four people were killed in an Israeli airstrike

Map of Lebanon and Israel

The Israeli military did not warn residents to evacuate before the attack – the fourth targeting the centre this week.

At least four bombs were dropped in the attack, security sources told Reuters news agency.

The blasts happened at about 4am (2am UK time).

A seperate drone strike in the southern port cuty of Tyre this morning killed one person and injured another, according to the NNA.

The blasts came after a day of bombardment of Beirut’s southern suburbs and Tyre. The Israeli military had issued evacuation notices prior to those strikes.

Pic: AP
Image:
Pic: AP

Israel has killed several Hezbollah leaders in air strikes on the capital’s southern suburbs.

Heavy fighting between Israel and Hezbollah is ongoing in southern Lebanon, as Israeli forces push deeper into the country since launching a major offensive in September.

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‘Dozens’ of Palestinians killed in Israeli airstrike

US envoy Amos Hochstein was in the region this week to try to end more than 13 months of fighting between Israel and Hezbollah, ignited last October by the war in Gaza.

Mr Hochstein indicated progress had been made after meetings in Beirut on Tuesday and Wednesday, before going to meet Israeli Prime Minister Benjamin Netanyahu and defence minister Israel Katz.

According to the Lebanese health ministry, Israel has killed more than 3,500 people in Lebanon and wounded more than 15,000.

It has displaced about 1.2 million people – a quarter of Lebanon’s population – while Israel says about 90 soldiers and nearly 50 civilians have been killed in northern Israel.

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Vladimir Putin vows to increase production of Russia’s ‘unstoppable’ missile – as NATO and Ukraine to hold talks

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Vladimir Putin vows to increase production of Russia's 'unstoppable' missile - as NATO and Ukraine to hold talks

President Vladimir Putin has said Russia will ramp up the production of a new, hypersonic ballistic missile.

In a nationally-televised speech, Mr Putin said the intermediate-range Oreshnik missile was used in an attack on Ukrainian city Dnipro in retaliation for Ukraine’s use of US and British missiles capable of striking deeper into Russian territory.

Referring to the Oreshnik, the Russian president said: “No one in the world has such weapons.

“Sooner or later other leading countries will also get them. We are aware that they are under development.”

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Putin’s warning to the West

Russia war latest: Long-awaited US air defences arrive in Ukraine

He added: “We have this system now. And this is important.”

Detailing the missile’s alleged capabilities, Mr Putin claimed it is so powerful that using several fitted with conventional warheads in one attack could be as devastating as a strike with nuclear weapons.

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General Sergei Karakayev, head of Russia’s strategic missile forces, said the Oreshnik could reach targets across Europe and be fitted with either nuclear or conventional warheads – while Mr Putin alleged Western air defence systems will not be able to stop the missiles.

Mr Putin said of the Oreshnik: “There is no countermeasure to such a missile, no means of intercepting it, in the world today. And I will emphasise once again that we will continue testing this newest system. It is necessary to establish serial production.”

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Testing the Oreshnik will happen “in combat, depending on the situation and the character of security threats created for Russia“, the president added, stating there is “a stockpile of such systems ready for use”.

NATO and Ukraine are expected to hold emergency talks on Tuesday.

Meanwhile Ukraine’s parliament cancelled a session as security was tightened following the strike on Dnipro, a central city with a population of around one million. No fatalities were reported.

EU leaders condemn Russia’s ‘heinous attacks’

Numerous EU leaders have addressed Russia’s escalation of the conflict with Poland’s Prime Minister Donald Tusk saying the war is “entering a decisive phase [and] taking on very dramatic dimensions”.

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Russia’s new missile – what does it mean?

Speaking in Kyiv, Czech foreign minister Jan Lipavsky called Moscow’s strike an “escalatory step and an attempt of the Russian dictator to scare the population of Ukraine and to scare the population of Europe”.

At a news conference, Mr Lipavsky gave his full support for delivering the additional air defence systems needed to protect Ukrainian civilians from the “heinous attacks”.

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Absence of defensive shield should ring very loud alarm bells as UK faces Russian threats

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Absence of defensive shield should ring very loud alarm bells as UK faces Russian threats

Facing the threat of an attack from Russia, Sir Keir Starmer has finally revealed he will “set out the path” to raise defence spending to 2.5% of national income in the spring.

But merely offering a timeframe to reveal an even-further-off-in-the-future date for when expenditure will increase to a level most analysts agree is still woefully short of what is required is hardly the most convincing display of deterrence and overwhelming strength.

What the prime minister should perhaps instead be doing is making very clear to Vladimir Putin – with new NATO-wide military exercises and the immediate hardening of UK defences – that his government is prepared for any Russian strike and the devastating cost to Moscow would be so astronomical as to make even the thought of hitting a UK target utter madness.

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Russia’s missiles ‘ready to be used’

A failure to relay back to the Kremlin a genuinely resilient and tough message, raises the risk that the Russian president will increasingly regard Britain as vulnerable – despite the UK being a nuclear power and a member of the NATO alliance.

It should come as a surprise to no one that Mr Putin has ramped up the rhetoric against Britain and the United States in the wake of both countries allowing Ukraine to fire their missiles inside Russia in the past few days.

In a series of blunt messages, he first lowered the threshold for the use of nuclear weapons, then fired what he has described as a new kind of intermediate-range, “unstoppable” missile and finally warned that he has lots more of them, signalling that British and American military sites could be targets.

The warning clearly means UK military bases and warships, at home and overseas, are at higher risk.

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Yet there is little evidence that anything is being done to ramp up protection around them or signal publicly back to Russia in a meaningful way that such a move would not be wise.

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Sky News military analyst Sean Bell explains in more detail how ballistic missiles are used in conflict

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What are storm shadow missiles?
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Asked whether any changes have been made to put the UK military on a higher state of alert, a Ministry of Defence spokesperson said: “There has been no recent change to our general security posture across our bases in the UK or overseas.

“We constantly monitor the threats we face and our armed forces remain ready to protect the UK’s interests at home and abroad.”

There is also the inescapable – and well-known – fact that the UK lacks the ability to defend itself from large-scale missile attacks after decades of defence cuts.

It is a problem for all European NATO countries, but as Britain is the one that is being directly threatened by Moscow, then this absence of any kind of defensive shield should really be ringing very loud alarm bells.

The Russian leader has put his country on a war footing in the wake of his full-scale invasion of Ukraine.

Defence spending in Russia is set to rise by a quarter next year to 6.3% of GDP – the highest level since the Cold War.

UK military chiefs and the defence minister point to the cost to Russia – in terms of the number of soldiers killed and injured in Ukraine and the burden of the war on the economy – as a sign that the Kremlin is struggling.

But that is surely only regarding the data through a peacetime lens, rather than reflecting on the fact that Russia appears willing and able to absorb the cost and still keep fighting.

Unless the UK and its NATO allies wake up to the need to put their countries on some kind of war footing too, then their ability to counter Russian aggression and deter threats may be lost.

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