An unrepentant Liz Truss has sought to blame a left-wing infiltration of thinktanks, the Bank of England and other “institutions” for the market turmoil during her brief premiership.
Ms Truss was speaking at an Institute for Government event about what she believes are the issues with the UK economy.
Her 49 days as prime minister – the shortest ever – ended after attempts to reform the economy culminated with the Bank of England having to prevent pension markets from collapsing as markets expected interest rates to soar on borrowing to pay for tax cuts.
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3:46
Liz Truss’s rise and fall
Ms Truss did admit that she tried to go too far, too fast. She said: “It was certainly true that I didn’t just try to fatten the pig on market day but tried to rear the pig, fatten the pig and slaughter it on market day.”
But she did not apologise – despite being asked several times about her time in Downing Street – and pointed out that interest rates and gilt yields are now higher than when she was in office.
Sky’s economics and data editor Ed Conway explained that the “ham-fisted” way in which Ms Truss tried to change policy led to her losing the confidence of the markets, which set off “mines” and shook confidence in the UK’s economy.
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At the end of her speech, Ms Truss revealed she would be heading to the Conservative Party conference in Manchester, where she would be “saying more”.
This conference is Rishi Sunak’s first as leader.
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In her speech, Ms Truss said: “Certainly as a politician, trying to deliver what I believed people had voted for, there was a lot of institutional bureaucracy in the way.
“And even during the leadership election campaign, and maybe this did not make me popular with the OBR and the Bank of England, I pointed out that there was an orthodoxy in Britain about economic policy and I tried to challenge that orthodoxy.
“And I didn’t find a massive level of support, frankly, from those institutions.”
Image: Ms Truss is the UK’s shortest serving prime minister
She argued that, after the end of the Cold War, “free market economists went off to lucrative jobs in the city allowing academic institutions and think tanks to be captured by the left” – and this made her attempts to reduce tax and increase growth harder.
Ms Truss called on Mr Sunak to make cut taxes – saying her successor needs to cancel the rise in corporation tax, cut the top rate of income tax and reform IR35, as well as advocating for the return of VAT-free shopping for tourists.
The Bank of England was singled out by the former prime minister, arguing that they had kept interest rates too low for too long and extended an era of cheap money without warning of the consequences.
Mark Carney, a former governor of the central bank, accuse Ms Truss of contributing to a weakening of the UK’s economic standing and creating “Argentina-on-the-Channel” rather than “Singapore-on-Thames”.
Ms Truss said: “I’m afraid there’s quite a lot of finger-pointing going on from people like Mark Carney because they don’t want to admit their culpability or the culpability of their central banking associates in this.
“And I again think, of course politicians should be held accountable and responsible for what we do, but when there are people with significant power, you know, I don’t feel that the same questions are necessarily asked about them.”
Asked by Sky political correspondent Ali Fortescue if there was a credibility crisis when Ms Truss was in Number 10, the former leader said: “It’s very difficult if the government of the day has an economic policy that clearly, leading economic institutions in the UK and indeed internationally, don’t necessarily agree with.”
She pointed out comments by the IMF and Joe Biden when she was prime minister.
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Ms Truss added: ” I don’t regret the choice I made and if people say, well, you put the case back for free markets, what I think I have been able to do … this has given me a real insight into why it’s so difficult for governments to deliver, you know, a smaller state or tax cuts.
“It’s not just a problem that there isn’t enough political agreement, we actually have real institutional issues with delivering these things and that is what I’m going to be exploring further.”
Wes Streeting has defended plans to make over 70s take compulsory eye tests every three years – which could see them banned from driving if they fail, it is understood.
Ministers are considering “tougher” measures to tackle road deaths and injuries in England and Wales, which they believe have “remained stubbornly high under successive Conservative governments”.
Under the new proposals, first reported by The Times, the drink-drive limit would be lowered to match the current rules in Scotland.
Currently, the drink-drive limit is 35 micrograms of alcohol per 100 millilitres of breath in England and Wales, or 80 milligrams of alcohol per 100 millilitres of blood.
But this is expected to be lowered to 22 micrograms of alcohol per 100 millilitres of breath or 50 milligrams of alcohol per 100 millilitres of blood, to match the stricter levels already enforced in Scotland.
Those caught not wearing a seatbelt could also receive penalty points for the first time, while drivers found on the road without insurance could also face more severe consequences.
As well as this, plans are currently being drawn up to make those aged 70 or over take a compulsory eye test every three years when they renew their driving licence.
Those who fail this would lose their right to drive under the proposals. It’s understood that tests for other conditions, such as dementia, are also being considered.
Speaking on Monday, Mr Streeting said the transport secretary is consulting and “considering a whole range of proposals”, which will be unveiled in the “not too distant future”.
It is understood that Heidi Alexander will unveil the measures in a new road safety strategy in the autumn.
Image: Transport Secretary Heidi Alexander is expected to introduce the changes as part of the government’s road safety strategy in the autumn.
Pic: Reuters
The health secretary also defended the plans around elderly drivers.
He told broadcasters: “It cannot be right that we’ve ended up in a situation where the NHS is hit with a £2 billion a year bill because we are not taking road safety seriously enough – particularly as we get older and the quality of our eye health deteriorates, that we’re not keeping a regular check.”
A Labour source said: “At the end of the last Labour government, the number of people killed and seriously injured on our roads was at a record low, but numbers have remained stubbornly high under successive Conservative governments.
“In no other circumstance would we accept 1,600 people dying, with thousands more seriously injured, costing the NHS more than £2bn per year.
“This Labour government will deliver the first Road Safety Strategy in a decade, imposing tougher penalties on those breaking the law, protecting road users and restoring order to our roads.”
It comes after 1,633 people died in road traffic accidents in 2024, with nearly 28,000 victims seriously injured.
Image: The UK Health Security Agency (UKHSA) has issued alerts across England
The UKHSA, a government agency for England, warned “significant impacts are likely” across health and social care services due to the high temperatures.
Parts of the country are facing a fourth heatwave of the summer, where highs pass a threshold on three consecutive days.
A yellow alert, also between 9am on Tuesday until 6pm on Wednesday, covers the North East, North West, Yorkshire, The Humber, and the South West.
Dr Paul Coleman, consultant in public health at UKHSA, said temperatures are forecast to rise above 30C (86F) across some areas which “can result in serious health outcomes” particularly for the elderly or those with serious health conditions.
“If you have friends, family or neighbours who are vulnerable, it is important to ensure they are aware of the forecasts and are following the necessary advice.
“Check in on them if you can to make sure they know that hot weather is on the way and how to keep themselves safe,” Dr Coleman said.
Image: Temperatures could peak in the low 30s on Tuesday, with a small chance of hitting 35C (95F)
Sky News meteorologist Christopher England said the high pressure that brought the warmth of the last few days via the “heat dome” effect is moving east, as low pressure moves in towards the west.
“On Tuesday, southern Britain can expect temperatures widely into the low 30s… perhaps exceeding 35C (95F) in places,” he said.
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2:11
Drought in England explained
On 1 July, the UK recorded its hottest day of the year so far with a temperature of 34.7C (94.4F) recorded at St James’s Park in central London.
The Met Office’s criteria for a heatwave are met when temperatures are above a certain level for three consecutive days. This threshold varies from 25C to 28C (77F to 82F) depending on the location.
Image: People enjoying the hot weather in North Shields in June. Pic: PA
Mr England added: “There’s around a 10% chance Wales may exceed its August peak temperature of 35.2C (95.3F) recorded at Hawarden on 2 August 1990.
“Expect some tropical nights too, with temperatures holding above 20C (68F).”
The UKHSA has issued advice for keeping cool: • close windows and curtains in rooms that face the sun • seek shade and cover up outside • use sunscreen, wear a hat and sunglasses • keep out of the sun at the hottest times, between 11am and 3pm • restrict physical activity to the cooler mornings or evenings • know how to respond to heat exhaustion and heatstroke
Around 30 residents have been evacuated from their homes in north London after a water main burst, leaving roads under 44cm (17in) of water.
Seventy firefighters were dispatched by London Fire Brigade to the area around Canonbury Street in Islington just after 10pm on Sunday.
People have been urged to avoid the area including Essex Road, Elmore Street, Halliford Street and Ecclesbourne Road – and warned against driving through floodwater.
Image: Canonbury Street in Islington experienced significant flooding. Pic: London Fire Brigade
Fire crews used flood barriers and sandbags to divert floodwater away from homes as they warned disruption was likely to continue into Monday afternoon.
Islington council also warned at 9am on Monday that Canonbury Street was closed from Essex Road up to Arran Walk.
A Thames Water spokesperson said: “We have now managed to stop the flow of water and ensure that the site is safe. We have also been able to move parked cars which were over another critical water main.
“We have a specialist team on site for those impacted by the incident, at Cedar Place on Essex Road, and are supporting customers who have been affected.
“To keep the public and our team safe, we’ve arranged equipment to help manage the traffic while we work in the road. We are sorry for the impact this may have on traffic in the area.”