Liz Truss has acknowledged she and her government lost the confidence of financial markets following the mini-budget of October 2022 – but has refused to apologise to homeowners for higher interest rates.
Talking to Sky News, the former prime minister blamed her downfall on the Bank of England, primarily governor Andrew Bailey. However, she said she did not meet Mr Bailey once during her time in office.
“I actually had a meeting set up – I wanted to meet him,” she said. “But I was advised that would be a bad idea. And perhaps I shouldn’t have taken that advice.
“But that advice came from the cabinet secretary and what I didn’t want to do is further exacerbate the [market] problems.
“In retrospect, yes, I probably should have spoken directly to the governor of the Bank of England at the time.”
Asked about the aftermath of the mini-budget, at which her chancellor Kwasi Kwarteng announced a series of unfunded tax cuts, without presenting evidence of how he would pay for them, Ms Truss said: “It’s fair to say that the government did not have the confidence of the markets…
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“But if you have organisations within the state, like the Bank of England, like the Office of Budget Responsibility, who are pretty clear to people they don’t support the policies that are being pursued and are essentially undermining those policies, then it is difficult to command the confidence in the markets – because the markets look to the government for that leadership.”
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A look back: Truss’s time as PM
During Ms Truss’s short time in office, the expected path for the Bank’s interest rate a year ahead rose from below 4% to around 6%.
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While those rates were increasing before the fiscal event, they shot up dramatically in the wake of the mini-budget, rising even further when, a few days later, Mr Kwarteng promised even more tax cuts.
That sharp increase in interest rates precipitated a short-lived crisis in UK financial markets, which triggered the near collapse of liability-driven investment (LDI) funds which underlie the pension market.
Asked whether she would apologise for the sharp rise in interest rates during her time in office, Ms Truss said: “I question the premise of what you’re asking me, because mortgage rates have gone up across the world.
“The issues that I faced in office, were issues of not being able to deliver the agenda because of a deep resistance within the establishment.”
She continued: “I think it’s wrong to suggest that I’m responsible for British people paying higher mortgages. That is something that has happened in every country in the free world.
“I’m not saying that I got everything absolutely perfect in the way the policy was communicated. But what I am saying is I faced real resistance and actions by the Bank of England that undermine my policy and created the problems in the market.”
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Since publication it has emerged that one of the quotes she used in the book, attributed to Mayer Amschel Rothschild, is in fact a fake quote, often used in an antisemitic context.
Ms Truss said: “I’m very sorry about that. It was a complete mistake. It was something I found online and I’ve said I’m very sorry to the British Board of Deputies for that.
“It will be removed from all future editions of the book and removed from the Online Edition.”
Asked whether she feels more at home in the US than in the UK these days, she said: “Well, I do like aspects of American politics. I believe that on economics the US has got it more right than the UK has.
“My heart’s in Britain. But I think you’ve got to be prepared to learn from other countries that have that success.”
You can watch the full interview with the former prime minister on Sky News’s Sunday Morning with Trevor Phillips programme from 8.30am this morning. Trevor is also joined by Energy Security and Net Zero Secretary Claire Coutinho, shadow justice secretary Shabana Mahmood and Reform UK leader Richard Tice.
The use of drones to fly drugs and weapons into UK prisons needs to be tackled “urgently” because it has become a threat to “national security”, the chief inspector of prisons has said.
Charlie Taylor added that police and the prison service had in effect “ceded the airspace” around HMP Manchester and HMP Long Lartin to organised crime gangs who are using the gadgets to deliver contraband to inmates.
The two high security prisons hold some of the most dangerous men in the country, including terrorists and organised crime bosses.
Mr Taylor’s warning comes after inspections of HMP Manchester, based in the city centre, and HMP Long Lartin, in Evesham, Worcestershire, found both prisons had “thriving illicit economies” of drugs, mobile phones and weapons.
Inspectors also found that basic security measures such as protective netting and CCTV had fallen into disrepair.
Some inmates at HMP Manchester, a category B jail which holds a small number of category A prisoners, had burned holes in windows so that they could receive regular deliveries by drone, the HM Inspectorate of Prisons watchdog said as it published the findings of the inspections.
It added that many of the drones had “increasingly large payloads” which “had the potential to lead to serious disruption and even escape”.
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Mr Taylor said: “It is highly alarming that the police and prison service have, in effect ceded the airspace above two high-security prisons to organised crime gangs which are able to deliver contraband to jails holding extremely dangerous prisoners including some who have been designated as high-risk category A.
“The safety of staff, prisoners and ultimately that of the public, is seriously compromised by the failure to tackle what has become a threat to national security.
“The prison service, the police and other security services must urgently confront organised gang activity and reduce the supply of drugs and other illicit items which so clearly undermine every aspect of prison life.”
Inspectors found prisoners had been using the elements from their kettles to burn holes in their “inadequately protected” Perspex windows to allow the “entry of drones laden with contraband”.
The inspections at HMP Manchester and HMP Long Lartin, which took place across September and October 2024, also revealed other serious concerns around safety and security at both sites.
Mr Taylor felt the situation was so bad at HMP Manchester that he issued an urgent notification for improvement to the Justice Secretary Shabana Mahmood.
At Manchester, 39% of prisoners tested positive in mandatory drug tests, while at Long Lartin, 50% of those who responded to the watchdog’s survey said it was easy to get drugs and alcohol.
Violence and self-harm at both prisons was also found to have increased, which the watchdog said was partly driven by drugs and the accompanying debt prisoners found themselves in.
Meanwhile there had been six “self-inflicted deaths” at Manchester since the watchdog’s last inspection in 2021, with a seventh taking place after the most recent visit.
It is now one of the most violent prisons in the country, with a high number of serious assaults against prisoners and staff.
Many officers “lacked confidence, were demoralised, and were struggling to manage experienced prisoners who were serving long sentences for serious crimes”, the watchdog said.
Manchester was also found to have a chronic rodent infestation, while there was widespread dirt, damp and litter at both sites.
Prisoners at Manchester were also found to have used torn-up foam from mattresses and pillows to keep out the cold.
Inspectors found 38% of prisoners there were locked up during the working day and poor attendance at education and work was further fuelling the boredom, drug-taking, self-harm and violence.
At Long Lartin, which houses both category A and B prisoners, a continued lack of in-cell toilets for many prisoners led them to use buckets and throw bags of excrement out of the windows, many of which were not cleared up, the watchdog said.
The Ministry of Justice said in a statement: “This government inherited prisons in crisis – overcrowded, with drugs and violence rife.
“We are gripping the situation by investing in prison maintenance and security, working with the police and others to tackle serious organised crime, and building more prison places to lock up dangerous criminals.”
Reform UK has grown in support to within one percentage point of Labour according to a new poll for Sky News by YouGov which suggests Britain has entered a new era of three-way party politics.
Sir Keir Starmer looks set to spend the parliament locked in a fight with two right-wing parties after Labour support dropped sharply in the first YouGov poll since the general election.
This is the first of YouGov’s weekly voting intention polls for Sky News, shared with The Times.
It reflects a drop in satisfaction with the government, a rise in support for Reform UK, and shows how the Labour vote has split in all directions since the election.
Labour has retained 54% of their vote at the general election – 7% have gone to the Lib Dems, 6% to the Green Party, 5% to Reform UK, 4% to the Tories – while 23% of those polled did not say, did not know or would not vote.
Reform UK’s vote has grown since the general election at the expense of all other parties, with 16% of voters who backed the Tories at the ballot last year now saying they’d support Reform.
The judgement on Sir Keir’s first six months in office is damning, however.
Some 10% say the government has been successful while 60% say unsuccessful.
Older voters have turned away from Labour. Just 14% of over 65s would now vote Labour, down from 22% around the time of the election.
However, there are signs the Tory party remains a toxic brand. Reform UK are the least unpopular party, with a net favourability rating of -32, Labour a touch worse on -34 and the Tories down on -45.
YouGov interviewed 2,279 voters in Great Britain on Sunday 12 January and Monday 13 January.
A woman in her 40s has been arrested on suspicion of murder after the body of a man was found in Greater Manchester.
The man, in his 50s, was found dead at an address in Hope Hey Lane, Little Hulton, on Sunday morning after reports of concern for his welfare.
Following a post-mortem examination, Greater Manchester Police (GMP) said it had launched a murder investigation as his injuries were consistent with an assault.
Officers subsequently arrested the woman and she remains in police custody for questioning.
Detective Chief Inspector Neil Higginson, from the force’s Major Incident Team, said: “Sadly, following the discovery of a body at a property in Little Hulton, we have now launched a murder investigation, and we have a team of detectives working around the clock to understand the circumstances.
“We do not believe there to be a threat to the wider public, but you will likely see an increased presence of police in your area whilst we conduct further enquiries.
“If you have any information which may assist our investigation, or any dashcam, CCTV, or doorbell footage from the area in the last 24 hours, please get in touch with us.”
He added: “No matter how small the information may seem, it could be crucial to our investigation.”