Liz Truss’s lawyers have sent a cease and desist letter to Sir Keir Starmer over his claims she “crashed the economy”.
The letter says Sir Keir has repeatedly claimed the former Conservative prime minister crashed the economy with the September 2022 mini budget is defamatory and will “likely continue to cause serious harm to her reputation”.
It focuses on the Labour leader’s claims made in June last year during the general election campaign, and says accusations she crashed the economy were made with the purpose of damaging public opinion of Ms Truss as she stood as a parliamentary candidate.
Ms Truss, who stepped down as prime minister in under two months in charge, lost the South West Norfolk seat she had held since 2010 to Labour’s Terry Jermy in last year’s election.
Sir Keir’s spokesman said the prime minister has no plans to “moderate his language” based on the letter.
He also questioned whether Ms Truss will be writing to the “millions of people up and down the country” who shared Sir Keir’s view.
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Image: The letter calls for Sir Keir Starmer to stop saying Liz Truss crashed the economy
The letter also says it is “false” to claim the mini budget crashed the economy and provides details of a definition of “crash of the economy” by Dr Andrew Lilico, an expert from right-wing thinktank the Institute of Economic Affairs and managing director of economic consultancy Europe Economics.
Market movement following the mini budget did not constitute a “crash”, the letter says, and accuses Sir Keir of displaying an “ignorance of basic economics” by doing so.
Following the mini budget, which included £45bn of unfunded tax cuts, the UK government’s long-term borrowing costs rose sharply by 0.3 percentage points over a day.
The pound then fell to record lows against the dollar, and there was another sharp rise in the cost of long-term government borrowing by 0.5 percentage points after then chancellor Kwasi Kwarteng hinted there would be further tax cuts.
This led to rising mortgage rates, with hundreds of products withdrawn, and an impact on UK pension funds.
What is a cease and desist letter?
A cease and desist letter demands the recipient immediately stop “unlawful activity”.
It is a serious warning and can be the first step towards starting court proceedings.
They often threaten severe legal actions if the recipient does not cease (stop) and desist (does not repeat).
This could include an application for an injunction – a court order to refrain someone from doing something.
Cease and desist letters normally state what action will be taken and the consequences if the demands are not met.
However, the letter from Liz Truss’s lawyers does not have any threat of legal action, just a request to cease and desist saying she crashed the economy and asks for Sir Keir to “refrain from causing any further damage to our client”.
Ms Truss’s lawyers blamed the interest rate changes on the Bank of England, “in particular by its poor handling of the liability-driven investment bonds (LDI) crisis, and its regulatory failures”.
It points out the Bank of England is independent of government and says: “Thus the relevant rate changes were not ’caused’ by our client.
“These facts were clear as early as May 2024, if not before.”
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‘Do you take any blame for your premiership?’
The letter argues there was “no rise in unemployment…no sustained loss of wealth”, and no “enduring economic impacts”.
It says Ms Truss and the mini budget did not play “a significant causal role in the financial market volatility of September/October 2022” and said almost everything, in fiscal terms, had been announced before the mini budget.
The letter requests Sir Keir “immediately cease and desist” from repeating she crashed the economy on an “amicable basis”.
“This request is made in the context of the basic levels of civility which is due between senior politicians, and we trust that you will respond accordingly,” the letter says.
Scientists are turning detective to work out what British dolphins are up to beneath the waves – by using forensic-style DNA techniques on their poo.
Conservationists have been studying the 250 or so bottlenose dolphins living in Cardigan Bay, west Wales, over many decades.
Up to now, they have only been able to observe the dolphins as they surface to breathe or play, identifying the animals from the unique marks on their dorsal fins to establish which animals were hanging out together and where.
Image: Dolphins in Cardigan Bay. Pic: Sarah Perry/WTSWW
But now for the first time scientists are using DNA excreted by the dolphins in their poo to build a more complete picture of their lives.
It allows them to identify the sex of individuals and how they are related to other animals. Signficantly, it also shows what the dolphins have been eating.
Image: Dolphin poo. Pic: Sarah Perry/WTSWW
Dr Sarah Perry, marine conservation manager at The Wildlife Trust of South and West Wales, said: “In order to be able to conserve them, we need to know why they’re here and a big a missing part of that is, what they’re feeding on.
“Is that changing at different times of the year? Are certain species of fish more important to them early on in the year, in the spring, and the summer months, and then does that change over the autumn and winter months?
“Are certain species important for younger animals? We don’t know that, so that kind of information, we need to find out.”
Image: Dr Sarah Perry
Catching dolphin poo involves a large element of luck.
The animals occasionally eject a cloud of waste material as they swim.
But it quickly sinks, so the scientists’ boat needs to be close enough for them to scoop it out of the sea with a fine-meshed net.
A sample is then sent to a lab at the University of Aberystwyth, where DNA is extracted for analysis.
Results so far suggest the dolphins are having to adapt to a change in fish species as the water warms.
Image: Dr Niall McKeown
Dr Niall McKeown, a marine biologist at the university, said: “We are seeing large amounts of sardine, sprat, and anchovy.
“This is quite interesting because these are species that are known to have increased in abundance in Welsh waters in recent years in response, we believe, to climate change.”
Image: Dr Niall analyses a sample
Scientists unsure why dolphin numbers are falling
But questions remain about the dolphins.
The number in Cardigan Bay seems to be falling, but scientists are not sure whether that’s a natural cycle or a response to other factors.
Boat noise and disturbance from some fishing activities, such as scallop dredging, could impact the animals, which rely on sound to communicate.
Dr Parry said: “How lucky are we to have such an important population of dolphins here? It’s crazy that we really don’t know that much about them.”
Sir Alan Bates has accused the government of presiding over a “quasi kangaroo court” for Post Office compensation.
Writing in The Sunday Times, the campaigner, who led a years-long effort for justice for sub-postmasters, revealed he had been given a “take it or leave it” offer that was less than half of his original claim.
“The sub-postmaster compensation schemes have been turned into quasi-kangaroo courts in which the Department for Business and Trade sits in judgement of the claims and alters the goal posts as and when it chooses,” he said.
“Claims are, and have been, knocked back on the basis that legally you would not be able to make them, or that the parameters of the scheme do not extend to certain items.”
More than 900 sub-postmasters were prosecuted between 1999 and 2015 after faulty Horizon accounting software made it look as if money was missing from their accounts.
Many are still waiting for compensation despite the previous government saying those who had their convictions quashed were eligible for £600,000 payouts.
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‘It still gives me nightmares’
After the Post Office terminated his contract over a false shortfall in 2003, Sir Alan began seeking out other sub-postmasters and eventually took the Post Office to court.
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A group litigation order (GLO) scheme was set up to achieve redress for 555 claimants who took the Post Office to the High Court between 2017 and 2019.
Sir Alan, who was portrayed by actor Toby Jones in ITV drama Mr Bates Vs The Post Office, has called for an independent body to be created to deliver compensation.
He added that promises the compensation schemes would be “non-legalistic” had turned out to be “worthless”.
It is understood around 80% of postmasters in Sir Alan’s group have accepted a full and final redress, or been paid most of their offer.
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‘Lives were destroyed’
A Department for Business and Trade spokesperson told Sky News: “We pay tribute to all the postmasters who’ve suffered from this scandal, including Sir Alan for his tireless campaign for justice, and we have quadrupled the total amount paid to postmasters since entering government.
“We recognise there will be an absence of evidence given the length of time which has passed, and we therefore aim to give the benefit of the doubt to postmasters as far as possible.
“Anyone unhappy with their offer can have their case reviewed by a panel of experts, which is independent of the government.”
Sir Keir Starmer could decide to lift the two-child benefit cap in the autumn budget, amid further pressure from Nigel Farage to appeal to traditional Labour voters.
The Reform leader will use a speech this week to commit his party to scrapping the two-child cap, as well as reinstating winter fuel payments in full.
There are now mounting suggestions an easing of the controversial benefit restriction may be unveiled when the chancellor delivers the budget later this year.
According to The Observer, Sir Keir told cabinet ministers he wanted to axe the measure – and asked the Treasury to look for ways to fund the move.
The Financial Times reported it may be done by restoring the benefit to all pensioners, with the cash needed being clawed back from the wealthy through the tax system.
The payment was taken from more than 10 million pensioners this winter after it became means-tested, and its unpopularity was a big factor in Labour’s battering at recent elections.
Before Wednesday’s PMQs, the prime minister and chancellor had insisted there would be no U-turn.
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Will winter fuel U-turn happen?
Many Labour MPs have called for the government to do more to help the poorest in society, amid mounting concern over the impact of wider benefit reforms.
Former prime minister Gordon Brown this week told Sky News the two-child cap was “pretty discriminatory” and could be scrapped by raising money through a tax on the gambling industry.
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Brown questioned over winter fuel U-turn
Mr Farage, who believes Reform UK can win the next election, will this week accuse Sir Keir of being “out of touch with working people”.
In a speech first reported by The Sunday Telegraph, he is expected to say: “It’s going to be these very same working people that will vote Reform at the next election and kick Labour out of government.”