‘We have done the right thing’: Prime Minister Liz Truss defends mini-budget amid market turmoil
Liz Truss says her government has “done the right thing” in its mini-budget in order to get the economy growing.
Speaking to the BBC in a raft of local radio interviews this morning, the prime minister said “urgent action”, along with “controversial and difficult decisions”, needed to be taken to improve the situation in the UK.
She said she was “prepared to do that… because what is important to me is we get our economy moving, we make sure that people are able to get through this winter and we are prepared to do what it takes to make that happen”.
UK economy latest news: Minister insists government won’t change course
Markets were thrown into turmoil after the government announced its mini-budget on Friday, which included a swathe of tax cuts – such as scrapping the rate of income tax for top earners, reversing the National Insurance rise and cancelling an increase to corporation tax.
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Minister agrees tax cut only benefits wealthy
Economists feared the amount of borrowing needed to pay for the policies and, as a result, the pound plummeted.
The Bank of England was forced to intervene to stop some pension funds collapsing by launching a temporary bond-buying programme as an emergency measure to prevent “material risk” to UK financial stability.
Yet, speaking in public for the first time since the fallout, Ms Truss still said the government had “done the right thing by taking action urgently”, despite the trouble that has followed, and she still believed in “sound money”.
She said the Treasury was “working closely” with the Bank of England, reiterating its independence, but claimed there were “difficult markets around the world” due to the war in Ukraine and that the problem in the UK was not homegrown.
But while the PM kept saying the “biggest part” of the government’s interventions was on the energy bills – introducing a cap on the average bill of £2,500 and equivalent help for businesses – this was announced over a week before the mini-budget and not thought to be the main reason for the market’s reaction.
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Earlier, Chief Secretary to the Treasury Chris Philp admitted scrapping the top tax rate would only benefit the most wealthy in the country.
But questioned on whether that policy and others were fair to the wider public, the PM said: “The reality is having lower taxes across the board… helps everybody because it helps grow the economy and for too long the debate in this country has been about distribution, not how we grow our economy.
“It is not fair to have a recession, it is not fair to have a town where you are not getting the investment, it is not fair if we don’t get high-paying jobs in the future because we have got the highest tax burden in 70 years. That’s what is not fair.”
‘Sort this mess out’
The government is facing demands from opposition parties to recall parliament from its conference recess to deal with the economic problems.
At the end of his party’s conference on Wednesday, the Labour leader Sir Keir Starmer called on Mr Kwarteng to reverse Friday’s announcements “before any more damage is done”, telling Sky News that Ms Truss was a “danger” to the economy.
And this morning, Liberal Democrat leader Sir Ed Davey told Sky News: “Liz Truss, Kwasi Kwarteng and the rest of this amateur bunch need to get back to their offices, stop their conference and sort this mess out – come to parliament and be held accountable.”
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The Conservative Party conference is due to kick off on Saturday in Birmingham, but could be a tense affair, with several Tory MPs criticising their own government’s policies.
Several of the party’s big names, including former leadership contender and ex-Chancellor Rishi Sunak and previous Health Secretary Sajid Javid, are also thought not to be attending.
A 31-year-old man has been arrested on suspicion of murder after an elderly couple died following a fire at their home in St Helens.
Peter Eric Greener, 77, known as Eric, and his partner Sheila Jackson, 83, were caught in the blaze at their home on South John Street in the early hours of Tuesday.
Mr Greener died on Wednesday, while Ms Jackson died on Thursday.
Eric Greener. Pic: Merseyside Police
Sheila Jackson. Pic: Merseyside Police
Merseyside Police said an accelerant was used to start the fire.
On Sunday, the force said the suspect from St Helens had been arrested on suspicion of murder and remains in custody for questioning.
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Detective Superintendent Rachel Wilson said: “Although an arrest has been made, I would like to take this opportunity to remind people to pass on information directly to police or anonymously via Crimestoppers, and not to comment or post in any way which jeopardises this ongoing work.”
DS Wilson said “extensive enquiries” continue.
She added: “And to that end we are still appealing for anyone with information to come forward, particularly if you live in the area of South John Street and recall seeing or hearing anything suspicious at around the time of the incident.
“Please do not assume what you know has already been reported to us, as we can quickly make that assessment.”
UK
How e-bike riders are doing double the speed limit – and many of them work for fast food delivery firms
It’s lunchtime on Birmingham’s New Street.
Close to its many restaurants, food delivery riders are congregating on their bikes.
The area is packed with shoppers and workers.
PC Paige Gartlan is approaching with other officers. She’s on the lookout for illegally modified e-bikes – and she knows she’ll find them here.
“You can physically tell by looking at the bike that it’s generally going to be illegal – the battery pack is taped on to the sides and generally the size of the motor that’s on the back wheel,” she explains.
Sky News has been invited on an operation by West Midlands Police to find these bikes and get them off the streets.
PC Gartlan has been hit by one before. She’s had to tackle a rider to the floor after he drove into her.
Within minutes, she’s spotted a suspicious-looking bike. The rider makes a run for it – followed by plain-clothed officers.
PC Gartlan tests the bike – it’s showing a top speed of 52km/hr on the speedometer – just over 30mph.
PC Paige Gartlan with a seized e-bike
The speed limit for e-bikes in the UK is 15.5mph when using electric power for assistance.
I look up the street and another two riders have been detained. In less than an hour, officers have confiscated four bikes – all were being ridden by fast food delivery drivers.
The commotion is attracting a lot of attention.
“They are dangerous,” Sandra, who has just finished work, tells me.
Demoz had his bike taken by police
She’s stood watching the riders being questioned. She says she’s had near-misses herself and is worried for the safety of the elderly and children.
It’s not just West Midlands police officers here – immigration officials are carrying out checks too. They’re involved in a nationwide operation, which has seen more than 7,000 arrests in the last year – a 50% increase on last year.
Matthew Foster, the immigration enforcement lead officer for the West Midlands, tells me they’ve already found one individual who has entered the UK unlawfully.
“He’s been detained,” he says, “to affect his removal from the UK.”
Further down the street, police are loading illegally modified bikes on to a van – they’re destined to be crushed. One of them had belonged to Demoz.
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An e-bike seized by West Midlands Police
He’s on his way home, carrying a big box with the logo of one of the main fast food delivery firms on it.
He tells me he used to have an illegal bike, but he thought his new one was legal.
“I make a mistake, I have to say sorry, I will do better for the future,” he says.
I get in touch with the big delivery firms; Deliveroo, Uber Eats, and Just Eat.
Their representatives say they constantly remind workers of their safety obligations, and that they’re all working closely with the government to increase security checks on riders.
As he leaves, Demoz, now bike-free, tells me he’s thinking of changing his job.
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