Liz Truss says she will ‘absolutely’ not cut public spending despite warning of £62bn shortfall
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.
“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.”
An Israeli hostage said “I miss my freedom” in a video released by the terror group Palestinian Islamic Jihad.
Alexander Troufanov was among the dozens of people taken prisoner by militants during the 7 October attacks last year.
And while many hostages have since been released or liberated – or found dead – Mr Troufanov’s family are still hoping for his safe return.
“I miss my family, I miss my friends, I miss my life, I miss my freedom,” he says in the video, released by the militant group on Wednesday. His family have authorised its use by media organisations.
“I miss so many things. I want to return home safe and sound.”
His mother, Lena, said she was relieved to see her son alive but was “very worried to hear what he is saying”.
“I urge that every effort be made to secure his immediate release and that of all other hostages. They have no time left,” she said.
Mr Troufanov was taken from Nir-Oz. Pic: Bring Them Home Now
In a message to her son, Lena implored him to keep being strong and hold on.
“Do not lose hope, we will not stop fighting for your release until you are here with us, at home.”
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Read more:
Palestinians in northern Gaza on brink of starvation
A timeline of events since 7 October
The video, which Sky News has not yet been able to independently verify, was released by Palestinian Islamic Jihad.
The organisation is proscribed as a terror group by the UK and other countries and has been fighting alongside Hamas in Gaza.
At least 1,200 people were killed and about 250 people taken captive during the 7 October attacks last year, according to Israel.
More than 43,000 people have been killed in Gaza in the fighting that has raged for more than a year now, according to the Hamas-run health ministry.
World
Thousands evacuated in Spain as residents cover cars in plastic wrap – just two weeks after floods killed 220
Thousands of people have been evacuated from their homes in the Costa del Sol as storms are set to bring fresh misery to parts of southern Spain.
More than 220 people were killed in the country’s worst floods in modern history just two weeks ago, with homes and buildings destroyed and streets turned to rivers of mud.
Now, people are covering their cars in plastic wrap and anchoring them to lamp posts as part of efforts to prepare for more flooding.
Authorities have issued a red alert for heavy rain in the Costa del Sol, with areas around Malaga and Granada also subject to warnings that up to 180 millimetres (7 inches) could fall in 12 hours.
Winds of up to 74 mph (119 kmph) and high seas were also predicted for Tarragona, Barcelona and Murcia.
National weather office AEMET also placed parts of Catalonia in northeast Spain on a red alert, with areas along the coast in Tarragona at high risk of “very strong to torrential rain”.
A man walks through a flooded street after the Campanillas river overflowed, due to heavy rains in Malaga, Spain. Pic: Reuters
Pic: Reuters
Videos on social media showed deep water filling some of Malaga’s main streets this afternoon as residents were told to stay at home.
Police closed roads, bus lines across the city were suspended along with some high-speed trains, and parts of Malaga airport were underwater.
Staff at the Hospital Clinico were filmed wading through water after the laboratory area flooded.
Empty train tracks near a beach, as Spain braces for fresh flooding, near Tarragona. Pic: Reuters
Meanwhile, people living close to the Campanillas River were told to leave their homes as the water began to rise.
Earlier, 3,000 homes were evacuated as a precaution on the banks of the Guadalhorce River.
In the tourist resort of Marbella, a waterspout was seen moving for several minutes through the sea just off the coast.
The opening tie of the Billie Jean King Cup Finals tennis event between Spain and Poland was also postponed because of the storms.
Previously flood-hit areas around Valencia were issued a less severe weather warning prompting some schools to close until Friday.
Thousands of workers are still removing mud and debris that has accumulated on the roads and clogged sewage pipes and drains in towns around Valencia after the recent deadly floods.
There were fears the mud-filled sewers would struggle to cope even if the new downpours weren’t as torrential.
A man walks past stacked up cars after floods in Catarroja. Pic: AP
Flooding in Spain two weeks ago left cars damaged and covered in mud. Pic: Reuters
Army personnel clean a drainage system blocked by mud in Paiporta, Valencia. Pic: Reuters
As the new weather front moved in, authorities confirmed the bodies of two young brothers who went missing when floods hit their home in October had been found.
Ruben and Izan Matias, aged 3 and 5, were discovered in separate locations near Catarroja, almost six miles downstream from their house in Torrent, according to the Civil Guard.
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How Ukrainian units are downing Russian drones
It comes after thousands of people marched in Valencia over the weekend to demand the resignation of the region’s president following the response to the devastating flooding.
Protesters filled the centre of the eastern Spanish city and chanted “killers!” as they called for Carlos Mazon to go, while others dumped muddy boots outside a regional government building.
One banner read: “Our hands are stained with mud, yours with blood.”
Headlights illuminate a group of soldiers smoking and drinking steaming cups of coffee on the side of a road in northeastern Ukraine.
A fine sleet on another freezing night falls on the silhouetted barrel of a Soviet-era anti-aircraft gun mounted on an ancient, battered lorry.
These are the men of a mobile air defence unit, preparing for another night of tracking and attempting to shoot out of the skies the Russian drones heading for cities and power plants across Ukraine.
We joined the units over 48 hours in the southern sector of the city of Sumy, near the border with Russia.
Captain Serhii, of the 117th Brigade, is a commander in charge of 160 of these men in eight mobile units protecting this area of northeastern Ukraine.
Commander Serhii looking for drones on his scanner
We met up with him in an empty car park next to a high-rise apartment block in Sumy.
Sitting in his 4×4 he squinted in concentration as his scanner showed a handful of drones on a flight path heading towards us from Russia.
Air raid sirens blared in the background.
He signalled for us to follow, and he sped off into the night weaving through checkpoints along empty, darkened country roads.
He had said the drone was near, but we were confused when he suddenly pulled off the road and jumped out of his cab.
Within moments the skies were lit up by mobile anti-aircraft batteries firing into the sky.
Tracers from the bullets flew over our heads and above us we could hear the monotonous sound of the drone as it passed overhead.
Searchlights reflected off a dank, dense fog that had enveloped the countryside criss-crossed in the sky as the units tried to spot the drone.
They didn’t spot or hit the drone, and slowly the sound of its motors grew dimmer and dimmer until there was silence.
“You can see the current weather conditions, it’s foggy, so we’re basically working off sound alone, as thermal imaging and other devices can’t pick them up,” Captain Serhii told me.
“A spotlight is completely pointless, the speed of these drones isn’t particularly high, so technically, we could hit them, but the weather makes it impossible,” he added.
Every night across Ukraine the tarpaulin covers are pulled off these Soviet-era anti-aircraft guns and prepared for action.
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On battered trucks they rumble into the night to take up defensive positions.
These old guns are the country’s main defence against an increasing number of drone attacks from Russia.
The units here say they mostly encounter two types of drones which are usually deployed at the same time: Gerberas and Shaheds.
Gerberas do not carry an explosive payload but instead are designed to confuse Ukraine’s air defence, while the Iranian-supplied Shahed drones carry explosives with pre-programmed targets.
One of the soldiers, Volodymyr, tracks the drones on a handheld tablet. All the men wait, watch the screen, and listen.
“They generally fly between 200-300m up to 3km,” Volodymyr tells me.
“If they’re flying lower than 300m above sea level, the radar won’t pick them up.”
The men start to gather around their anti-air battery unit as a drone flies closer towards our location.
Stuart Ramsay and Volodymyr
The gunner then jumps onto the truck and searches for the target on a radar attached to his weapon.
He will fire when it’s within a 10km range of his position.
The night-time silence in the middle of the field is suddenly shattered by the deafening sound of firing as the gunner goes for the drone.
Then in the fields all around us other units join the attack – it’s so dark we had no idea they were even there.
It’s absolutely relentless.
Captain Serhii tells me their critical job would be made easier with more sophisticated weapons like the American-made Patriot system.
“We need a stronger, more automated air defence system that operates independently of human involvement,” he said.
“Winter is approaching, and our guys who are on duty 24/7 will face incredibly tough conditions, they aren’t made of steel, so having an automated system would be ideal.”
Anti-aircraft unit firing at drones from their truck
He believes any political negotiations with Russia will just end badly for Ukraine.
“A frozen conflict is typically just a temporary pause, and you can’t trust [Russian President Vladimir] Putin, because any agreement made will likely work in Russia’s favour,” he told me.
“They’ll stockpile resources, more Shaheds, rockets, soldiers, even North Koreans, and then they’ll return, and they’ll come back stronger than they did in 2022.”
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We join another mobile unit, this time by the side of an empty road as they track another Iranian Shahed drone.
It’s flying in our direction and they’re waiting to see if it will come into range.
It does, and they too attack – firing powerful rounds at their target.
The red, orange, and yellow flashes of colour as the weapon fires light up an otherwise pitch-black sky.
In the 48-hour period we spent with the anti-aircraft units in this part of the Sumy region, Russia deployed a record number of drones into Ukraine.
Ukraine, for its part, deployed a record number of drones against Russia too, but the number is dwarfed by the Russian assault.
Night after freezing night these Ukrainian defenders, hundreds of them around this city, will man these guns.
The last line of defence – not good, but better than nothing.
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