Unrepentant Liz Truss lays blame for economic woes elsewhere – but admits going too far, too fast
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.
Politics latest: Starmer eyes better Brexit deal
Please use Chrome browser for a more accessible video player
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.
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.
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.”
Read more:
What was in the mini-budget?
2022 in political quotes
Truss says lettuce livestream was ‘puerile’
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.
Click to subscribe to the Sky News Daily wherever you get your podcasts
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.”
Thunderstorm warnings have been issued for large parts of the country, lasting from lunchtime until Monday night.
The Met Office says thunder and heavy downpours could cause flooding and travel problems.
Southeast England – including Kent, Sussex, Surrey, Hampshire and south London – could be affected from noon, says the forecaster.
Other areas affected are mid-Wales and most of northern England, stretching up past Glasgow into southwest Scotland.
That warning is in force from 1pm – with both alerts ending at 9pm.
Pic: Met Office
Pic: Met Office
“Spray and sudden flooding could lead to difficult driving conditions and some road closures,” says the Met Office, while there is also a small chance that roads and properties could be flooded.
Bank Holiday Monday has brought a grey and cloudy start for many, with forecasts ranging from 12C (53F) in the Hebrides to 18C (64F) in northern England at 1pm.
Get the latest Sky News forecast for where you live
However, it will become warmer, brighter and drier from Tuesday with high pressure forecast for much of the UK – and it should stay that way for next weekend.
Read more from Sky News:
Woman arrested after baby has cardiac arrest at Legoland
Sunak admits Tories may not win general election
London is expected to have 23C (73F) with sunny spells next Saturday and Sunday, according to the Met Office.
Highs of 20C (68F) are forecast in Edinburgh, while Cardiff is set for sunshine and 19C (66F), and Belfast likely to struggle with cloud but still feeling warm with a maximum of 20C.
West Ham have agreed a deal in principle with Julen Lopetegui to take over from David Moyes as manager at the end of the season, Sky Sports News understands.
Lopetegui, 57, has been out of work since leaving Wolves three days before the start of the season but has stayed in England in the hope of landing another job in the Premier League.
The Spaniard, who has also managed Porto, Spain, Real Madrid and Sevilla during an illustrious coaching career, looks set to take charge at the London Stadium at the end of the season after Moyes’ expected departure.
Julen Lopetegui. File pic: PA
West Ham are ninth in the league after Sunday’s 5-0 defeat at Chelsea.
Moyes, 61, who is out of contract in the summer, has faced increased questions about his future as his team have won only one of their previous nine league games.
He said he felt “really sorry” for West Ham fans after watching his side fall to a heavy loss at Stamford Bridge.
He said: “The fans have been great but I feel bad for them.
“I don’t normally have teams who get beaten like this but we are lacking some ingredients – mental toughness and leadership to get better results, or at least not get hammered.
West Ham United manager David Moyes during the Premier League defeat at Chelsea. Pic PA
“The fans played their part and I can only say I’m really sorry for how it played out.”
Asked if he was frustrated that the club was regularly being linked with other managers, he said: “I’ll talk to the board at the end of the season. We’ll do that then.”
The Scot, whose second spell as Hammers boss began in 2019, led the club to their Premier League points total of 65 in 2021, finishing in sixth place.
The following year they finished seventh and reached the semi-finals of the Europa League.
They went one better last year, winning the Europa Conference League final, the club’s first European trophy since 1965.
In November, Lopetegui told Sky Sports News he had unfinished business in the Premier League.
He said: “It’s why I’ve said no to different countries and different situations because I would like to stay here in England. I feel like our team here is just starting and we want to achieve our dreams.
“The way the country lives football here is special – it’s the best league in the world, the most competitive league in the world, the best environment for the players, coaches and fans too.”
-
Sports2 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Environment12 months agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Sports3 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports6 months agoGame 1 of WS least-watched in recorded history
-
Environment1 year agoGame-changing Lectric XPedition launched as affordable electric cargo bike
-
Sports1 month agoStory injured on diving stop, exits Red Sox game
-
Environment1 year agoTesla advances Powerwall pilot project with German electric company