Liz Truss is set to urge the government to cut taxes – and insist her plan to grow the economy would eventually have worked.
A year on from her disastrous mini-budget, the former Tory prime minister will also say it was unfair to suggest her programme of tax cuts, amounting to £45bn, was unfunded.
She and her chancellor, Kwasi Kwarteng, were in a “rush” to get “results”, she will admit during a speech at the Institute for Government thinktank in central London on Monday.
But Ms Truss will also blame her swift demise on reaction from the “political and economic establishment which fed into the markets”.
Her remarks come after the former governor of the Bank of England, Mark Carney, launched a scathing attack on Ms Truss – accusing her government of turning Britain into “Argentina on the Channel”.
In her speech, Ms Truss will say: “I was effectively forced into a policy reversal under the threat of a UK meltdown.”
She will also claim that describing her planned tax cuts as unfunded is “not a fair or accurate description”.
Ms Truss will add: “Independent calculations by the Centre for Economics and Business Research suggest that cutting the higher rate of income tax and the ‘tourist tax’ would have increased rather than decreased revenues within five years.
“So quite the opposite of being unfunded, these tax cuts could have increased funding for our public services.”
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1:33
Truss’s time as PM, one year on
The policies of her successor, Rishi Sunak, will come under fire too.
Ms Truss, who was in office for only 49 days, will claim Mr Sunak’s government has spent £35bn more than she would have had she remained in Downing Street.
“Investment would not have faltered in the North Sea, were it not for the windfall tax,” she will say.
“We would have got moving on fracking and lower energy bills would now be on the horizon.
“A more competitive rate of corporation tax would have persuaded the likes of AstraZeneca not to relocate elsewhere.
“There would have been more duty-free shoppers and a boom in the number of self-employed.”
Image: Liz Truss before resigning as prime minister last October
Ahead of Chancellor Jeremy Hunt’s Autumn Statement, Ms Truss will call for corporation tax to be reduced back down to 19%.
She will also suggest binning the tourist tax (VAT imposed on visitors) and abolishing the windfall tax.
Ahead of her address, Labour frontbencher Jonathan Ashworth has written to the prime minister, calling on him to block Ms Truss’s yet-to-be published resignation honours list.
In the letter to Mr Sunak, Mr Ashworth said: “Families and business across Britain are still paying (the) price for the Conservative Party crashing the economy and leaving working people worse off, with higher taxes, higher mortgages and higher food and energy bills.
“Despite this, it has been widely reported that Liz Truss has submitted up to 14 people to receive resignation honours.
“This means that those who crashed the economy, who left millions to pay more for their mortgage and who undermined our economic institutions could receive an award.
“I urge you to block these honours.”
Liberal Democrat deputy leader Daisy Cooper mocked Ms Truss.
She said: “Liz Truss giving a speech on economic growth is like an arsonist giving a talk on fire safety.”
Bhutan, known for investments in cryptocurrencies like Bitcoin, has launched a tourism crypto payment system in partnership with Binance Pay and DK Bank.
The system allows Bhutan travelers with Binance accounts to pay for services like tickets, hotel stays, tour guides and other products using at least 100 different crypto assets, including Bitcoin (BTC), USDC (USDC) and Binance-backed BNB (BNB).
The initiative also opens a payment gateway for businesses in Bhutan, enabling them to accept crypto payments through a QR code on a phone, according to an announcement by Binance on May 7.
“This is more than a payment solution — it’s a commitment to innovation, inclusion, and convenience,” said Damcho Rinzin, director of Bhutan’s tourism department.
Benefits for small businesses in remote areas
The partnership specifically targets small businesses in Bhutan, such as vendors and rural artisans who may never have had access to card terminals or payment infrastructure.
“Even Bhutan’s most remote businesses can now accept crypto through a phone, gaining access to international travelers with just a QR code,” the announcement said.
“No need to pack your wallet — hop on a journey of innovation and inclusion with just your Binance App,” Binance said in a post on X.
“World’s first national-level crypto tourism payment system”
Binance and Bhutan’s tourism department referred to the initiative as the “world’s first national-level crypto tourism payment system.”
“Bhutan’s model is the first to offer a fully integrated, end-to-end crypto payment system at the national level,” Binance’s announcement said, adding:
“It also addresses previous limitations by offering real-time confirmations, near-zero fees, and a fully licensed local bank handling settlements on the ground.”
Binance CEO Richard Teng emphasized that the system advances crypto payments in travel and “sets a precedent for how technology can bridge cultures and economies.”
“This initiative exemplifies our commitment to innovation and our belief in a future where digital finance empowers global connectivity and enriches travel experiences,” Teng added.
Bhutan holds multiple crypto assets
Bhutan’s launch of the payments system aligns with its broader embrace of digital assets.
According to Arkham, Bhutan’s commercial arm, Druk Holding and Investments (DHI), has added 374 Bitcoin to its stash since early January, increasing holdings to 12,062 BTC. Additionally, the entity holds modest amounts on chains like Polygon, BNB Chain and Base.
Crypto holdings of the Royal Government of Bhutan (DHI). Source: Arkham
While Bhutan has grown increasingly friendly to crypto adoption, regulating cryptocurrencies remains a legal gray area.
In 2020, Bhutan’s central bank, the Royal Monetary Authority (RMA), issued a warning against the Pi cryptocurrency, urging the public to exercise caution when investing in any crypto asset.
“The RMA would like to remind the general public to exercise due caution in making any investment in Pi or any other cryptocurrency as the implications, risks and use cases on the economy and financial systems are still to be ascertained,” the authority wrote.
Red Wall Labour MPs are demanding ministers “act now before it’s too late” and reverse the unpopular cut to winter fuel payments.
A number of MPs in the Red Wall – the term used to describe Labour’s traditional heartlands in the north of England – reposted a statement on social media in which they said the leadership’s response to the local elections had “fallen on deaf ears”.
They singled out the cut to the winter fuel allowance as an issue that was raised on the doorstep and urged the government to rethink the policy, arguing that doing so “isn’t weak, it takes us to a position of strength”.
The group, thought to number about 40 MPs, met last night following the fallout of local election results in England, which saw Labour narrowly lose the Runcorn by-election, as well ascontrol of Doncaster Council, to Reform.
In addition, Nigel Farage’s party picked up more than 650 councillors and won control of 10 councils in Labour strongholds such as Durham.
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Although Labour narrowly held on to mayoralties in Doncaster and the West of England, it lost control of Doncaster Council – the only local authority it had control of in this set of elections – to Mr Farage’s party, which also gained its own mayors in Greater Lincolnshire and Hull and East Yorkshire.
The MPs said the poll was the “big test for the prime minister” but that the party’s voters had “told us loudly and clearly that we have not met their expectations”.
Following the results, Sir Keir Starmer said the message he was taking away from the results was that “we must deliver that change even more quickly. We must go even further.”
His response has drawn an angry reaction from some Labour MPs who believe it amounted to ignoring voters’ concerns.
One of the MPs who was present at last night’s meeting told Sky News there was “lots of anger at the government’s response to the results”.
“People acknowledged the winter fuel allowance was the main issue for us on the doorstep. There is a lack of vision from this government, and residents don’t see it.”
Another added: “Everyone was furious”.
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3:02
‘I get it’, PM tells Sky News
Elsewhere in the statement, the MPs urged the party leadership to “visit our areas, listen and rebuild the social contract between government and the people”.
“The prime minister has shown strong leadership internationally, which must now be matched at home,” the statement read.
“The demands raised by new MPs from post-industrial towns where infrastructure is poor, with years of underinvestment, must be taken off the too-difficult-to-do list. Breakaway from Treasury orthodoxy, otherwise we will never get the investment we desperately need.”
It added: “The government needs to improve its messaging by telling our story and articulating our values in the language that resonates and is heard.
“Labour cannot afford to lose the Red Wall again as it reopens the route to a future of opposition and an existential crisis. Without red wall communities, we are not the Labour Party.
“The government has to act now before it’s too late.”
The government has also drawn criticism for the winter fuel policy from outside Westminster.
On Tuesday, Welsh First Minister Baroness Eluned Morgan called for the cuts to winter fuel allowance to be reviewed in a landmark speech.
However, Downing Street has ruled out a U-turn on means testing the winter fuel payment.
The prime minister’s official spokesman said: “The policy is set out, there will not be a change to the government’s policy.”
They added that the decision was necessary “to ensure economic stability and repair the public finances following the £22bn black hole left by the previous government”.
The developer of the Hornsea 4 windfarm expansion has “discontinued” the project, blaming a surge in challenges including higher costs.
Orsted made the announcement while revealing a bigger than expected rise in first quarter profits despite increased headwinds facing its offshore wind interests.
The Danish firm secured funding for both Hornsea 3 and Hornsea 4 under the government’s auction of renewable energy “contracts for difference” last year.
The projects, when combined, would have more than doubled the size of the existing Hornsea windfarm off the East Yorkshire coast – already the world’s largest.
It had the potential to add 2,400 MW of peak capacity – enough to power 2.6 million homes.
But the company said on Wednesday that Hornsea 4 was no longer viable in its current form.
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It cited “several adverse developments relating to continued increase of supply chain costs, higher interest rates, and an increase in the risk to construct and operate Hornsea 4 on the planned timeline for a project of this scale”.
It added: “Orsted will evaluate options for future development of the Hornsea 4 project given the continuing seabed rights, grid connection agreement and Development Consent Order.”
Image: The existing Hornsea development is already the world’s largest by area
The decision represents a blow to the government’s green energy ambitions.
It wants to eliminate the UK’s reliance on natural gas for energy security which, it says, will erase the country’s exposure to price volatility, bring down bills and bolster the fight against climate change at the same time.
Orsted boss Rasmus Errboe said: “We remain fully committed to being an important partner to the UK government to help them achieve their ambitious target for offshore wind build-out and appreciate the work they’ve done to deliver a clear framework to support offshore wind.
“However, our capital allocation is based on a strict and value-focused approach, and after careful consideration, we’ve decided to discontinue the development of the Hornsea 4 project in its current form, well ahead of the planned Final Investment Decision later this year.”
A Department for Energy Security and Net Zero spokesperson responded: “We recognise the effect that globally high inflation and supply chain constraints are having on industry across Europe, and we will work with Orsted to get Hornsea 4 back on track.
“We have a strong pipeline of projects to deliver clean power by 2030 and our mission-led approach ensures we can steer our way through global pressures and individual commercial decisions to reach our targets.
“Through our mission we will deliver an energy system that brings energy bills down for good and bolsters Britain’s energy security as part of our Plan for Change.”
Dhara Vyas, the chief executive of industry body Energy UK, responded: “In 2024, wind overtook gas as GB’s largest source of power. Along with the broad range of technologies we have, wind has already and will continue to play a significant role in reducing our reliance on foreign fossil fuels, and building a resilient energy system powered predominately by British sources.
“Not only will this boost energy security, it will grow our economy and bring down bills in the long-term.
“The loss of such a big project will raise the stakes yet further for the forthcoming Contracts for Difference auction round, AR7.
“Whilst Orsted has been clear this is not a result of government policy, with offshore wind playing such a critical role in our future energy ambitions it’s vital that the government doubles down to ensure AR7 is a success.”
Greenpeace UK’s head of climate, Mel Evans, said: “It is a tragic irony that gas-driven inflation is threatening the very thing that promises to bring down the soaring cost of energy, which has sent inflation and manufacturing costs through the roof. Getting off volatile and expensive gas and making renewables the backbone of our energy system has never been more necessary than it is right now.
“Post-COVID supply chain breakdowns have also made everything much harder to build, on time or on budget.
“This is why the government must double down on its commitment to clean power and invest heavily in domestic wind manufacturing. This would help to overcome the supply chain issues faced by companies like Orsted and lower costs, which would be good for the government’s clean power plan, good for jobs and good for Britain.”