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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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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.

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.”

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Outgoing Prime Minister Liz Truss making a speech outside 10 Downing Street, London before travelling to Buckingham Palace for an audience with King Charles III to formally resign as PM. Picture date: Tuesday October 25, 2022.
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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.”

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US woman Aimee Betro found guilty of conspiracy to murder Birmingham shop owner

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US woman Aimee Betro found guilty of conspiracy to murder Birmingham shop owner

A would-be assassin who flew from the US to kill a Birmingham shop owner as part of a violent feud has been found guilty of conspiracy to murder.

Birmingham Crown Court heard how Aimee Betro, 45, flew from the US to murder shopkeeper Sikander Ali at point-blank range outside his home in the Yardley area of the city in September 2019.

Prosecutors alleged that Betro hid her identity using a niqab when she tried to shoot Mr Ali – but the gun jammed, allowing him to flee.

Betro – originally from Wisconsin – was part of a plot orchestrated by co-conspirators Mohammed Nabil Nazir, 31, and his father, Mohammed Aslam, 56, who were in a violent feud with Mr Ali’s family.

Mohammed Nabil Nazir and Mohammed Aslam were jailed in November 2024.
Pic: West Midlands Police/PA
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Mohammed Nabil Nazir and Mohammed Aslam were jailed in November 2024.
Pic: West Midlands Police/PA

During her trial, Betro said she had travelled to the UK on two previous occasions, having met Nazir on a dating app.

Asked why she had paid a third visit to the UK, arriving at Manchester Airport from Atlanta around two weeks before the shooting, Betro told jurors: “To celebrate my birthday, and I won tickets for another boat party in London.”

The court was shown CCTV of Betro waiting for 45 minutes outside Mr Ali’s house on the night of 7 September 2019.

As Mr Ali arrived home, Betro approached him with a firearm, but the gun failed to fire. Mr Ali is seen jumping back into his car and reversing away, clipping Betro’s driver’s side door in the process.

CCTV image said to show Aimee Betro in Birmingham following the attempted shooting of Sikander Ali in September 2019. Pic: PA
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CCTV image said to show Aimee Betro in Birmingham following the attempted shooting of Sikander Ali in September 2019. Pic: PA

The court heard Betro then goaded Mr Ali’s father, Aslat Mahumad, with whom her co-conspirators had a feud, through text messages including: “Where are you hiding?”, “Stop playing hide and seek, you are lucky it jammed,” and asking him to meet her at a nearby Asda.

Jurors were told co-conspirators Nazir and Aslam had been injured during disorder at Mr Mahumad’s clothing boutique in Birmingham in July 2018, leading them to conspire to have someone kill him or a member of his family.

In the early hours of the next morning and just hours after the failed shooting, Betro booked a taxi and returned to Mr Ali’s home, where she fired three shots at the property, which was empty at the time.

She then fled back to the US the next day before becoming involved in another of Nazir’s plots to get revenge on a rival.

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Prosecutors also said Betro sent three parcels full of ammunition and gun parts to the UK on 16 October 2019.

The court heard the parts, which were wrapped in foil and paper inside three cardboard boxes, were addressed to a man from Derby, with Nazir tipping off the police with the intent to frame him.

While the packages were intercepted and the man arrested as part of what the prosecution said was Nazir’s “devious scheme”, his involvement in the plan eventually came to light, and he was released without charge.

Betro, it said, was seen at a post office 100 miles away from her home address in the US posting the parcels under a fake name.

In the case of each of those three packages, Betro’s DNA has been found on the gun parts and ammunition inside them.

Betro had claimed it was all a coincidence, saying the woman on the CCTV was another American who looked, dressed and sounded like her.

It was alleged that Betro was in Armenia when Nazir and Aslam were jailed for 32 years and 10 years respectively in November 2024, but was extradited in January this year to face her own criminal proceedings.

Jurors deliberated for almost 21 hours before convicting Betro of conspiracy to murder, possessing a self-loading pistol with intent to cause fear of violence, and a charge of illegally importing ammunition.

She was found guilty by majority verdicts on the conspiracy to murder and firearm charges, and by a unanimous verdict on the ammunition charge.

Speaking to Sky News, Detective Chief Inspector Alastair Orencas, from West Midlands Police’s Major Crime Unit, called Betro’s crime “a brazen attempt,” adding that there “doesn’t seem to be a whole lot of effort to avoid detection”.

“I think she fell foul of a really slick, dynamic law enforcement operation over here,” he said.

“I don’t know whether that was her perspective from America, that that’s how we operate, but zero tolerance around firearms, criminality on these shores.”

Betro was remanded in custody and will be sentenced on 21 August.

Hannah Sidaway, specialist prosecutor from the Crown Prosecution Service in the West Midlands, said: “Only Betro knows what truly motivated her or what she sought to gain from becoming embroiled in a crime that meant she travelled hundreds of miles from Wisconsin to Birmingham to execute an attack on a man she did not know.”

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Thames Water crisis: Ministers line up administrator for utility giant

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Thames Water crisis: Ministers line up administrator for utility giant

Ministers have lined up insolvency practitioners to prepare for the potential collapse of Thames Water, Britain’s biggest water utility.

Sky News can exclusively reveal that Steve Reed, the environment secretary, has signed off the appointment of FTI Consulting to advise on contingency plans for Thames Water to be placed into a Special Administration regime (SAR).

Sources said on Tuesday that the advisory role established FTI Consulting as the frontrunner to act as the company’s administrator if it fails to secure a private sector bailout – although approval of such an appointment would be decided in court.

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Thames Water, its largest group of creditors and Ofwat, the industry regulator, have been locked in talks for months about a deal that would see its lenders injecting about £5bn of new capital and writing off roughly £12bn of value across its capital structure.

The discussions are said to be progressing constructively, although they appear to rely in part on the prospect of the company being granted forbearance on hundreds of millions of pounds of regulatory fines.

Responding to an enquiry from Sky News on Tuesday, a government spokesperson said: “The government will always act in the national interest on these issues.

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“The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities, including applying for a Special Administration Regime if that were to become necessary.”

Insiders stressed that FTI Consulting’s engagement by the Department for the Environment, Food and Rural Affairs (DEFRA) did not signal that Thames Water was about to collapse into insolvency proceedings.

A SAR would ensure that customers would continue to receive water and sewage services if Thames Water collapsed, while putting taxpayers on the hook for billions of pounds in bailout costs – a scenario the chancellor, Rachel Reeves, is keen to avoid at a time when the public finances are already severely constrained.

The SAR process can only be instigated in the event that a company becomes insolvent, can no longer fulfil its statutory duties or breaches an enforcement order, according to insiders.

Mr Reed has repeatedly stressed the government’s desire to avoid taking Thames Water into temporary public ownership, but that it was ready to deal with “all eventualities”.

“Thames Water must meet its statutory and regulatory obligations to its customers and to the environment–it is only right that the company is subject to the same consequences as any other water company.

The company remains financially stable, but we have stepped up our preparations and stand ready for all eventualities,” he told the House of Commons in June.

Thames Water, which has about 16m customers, serves about a quarter of the UK’s population.

It is drowning under close to £20bn of debt, and was previously owned by Macquarie, the Australian infrastructure and banking behemoth.

Its most recent consortium of shareholders, which included the Universities Superannuation Scheme and an Abu Dhabi sovereign wealth fund, have written off the value of their investments in the company.

The government’s SAR process has only been tested once before, when the energy retailer Bulb failed in 2021.

Bulb was ultimately sold to Octopus Energy with the taxpayer funding used to save and run the company since having been repaid.

Thames Water is racing to secure a rescue plan involving funds such as Elliott Management and Silver Point Capital, with a deadline of late October to appeal to the Competition and Markets Authority against Ofwat’s final determination on its next five-year spending plan.

Ofwat has ruled that Thames Water can spend £20.5bn during the period from 2026, with the company arguing that it requires a further sum of approximately £4bn.

Mike McTighe, a veteran corporate troubleshooter who chairs BT Group’s Openreach division, has been parachuted in to work with the funds.

The company said in its accounts last month that there was “material uncertainty” over whether it could be solvently recapitalised.

Earlier this year, Thames Water was fined a record £123m over sewage leaks and the payment of dividends, with Ofwat lambasting the company over its performance and governance.

In recent weeks, Thames Water has been engulfed in a row over the legitimacy of bonuses paid to chief executive Chris Weston and other bosses, even as it attempts to secure its survival.

Under new laws, Thames Water is among half a dozen water companies which have been barred from paying bonuses this year because of their poor environmental records.

The creditor group was effectively left as the sole bidder for Thames Water after the private equity firm KKR withdrew from the process, citing political and reputational risks.

The Hong Kong-based investor CK Infrastructure Holdings (CKI), which already owns Northumbrian Water, has sought to re-engage in talks about a rescue deal but has gained little traction in doing so.

News of FTI Consulting’s appointment also comes on the same day as a “nationally significant” water shortfall was declared across swathes of the country.

Last week, Sky News revealed that David Black, the Ofwat chief executive, was to step down following the publication of a government-commissioned review which recommended the regulator’s abolition.

He has been replaced by Chris Walters, another Ofwat executive, on an interim basis.

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UK weather: Water shortfall declared ‘nationally significant’ – as amber heat health alert set to strike

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UK weather: Water shortfall declared 'nationally significant' - as amber heat health alert set to strike

The water shortfall situation in England has been described as a “nationally significant incident”, with five areas officially in drought ahead of an amber heat health alert coming into force for large parts of the country.

Six further areas are experiencing prolonged dry weather following the driest six months to July since 1976.

Many river flows and water reservoir levels in England continue to recede compared to June despite some storms and showers in July, which helped mask that it was still the fifth-warmest July on record.

A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters
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A drone view from June shows vehicles using a bridge to pass over a dry section of the Woodhead Reservoir. Pic: Reuters

A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA
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A general view of Lindley reservoir near Otley in West Yorkshire with low water levels in June. Pic: PA

Drier conditions have returned in August and now parts of the country are bracing for the fourth heatwave 2025, with today’s amber alert covering the East Midlands, West Midlands, East of England, London, and the South East.

Temperatures are forecast to rise above 30C (86F) in some areas, possibly even soaring past 35C (95F) in the south, threatening this year’s heat record of 35.8C (95.4F) in Faversham, Kent, on 1 July.

A milder yellow heat health alert is in place for the South West, North East, North West, Yorkshire and The Humber.

The alerts by the UK Health Security Agency (UKHSA) are due to be in place from 9am today until 6pm tomorrow, and put more pressure on struggling public water supplies and navigational waterways.

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People enjoy the weather in Barnes on Monday. Pic: PA
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People enjoy the weather in Barnes on Monday. Pic: PA

A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters
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A man stands on a paddleboard with his dog near the beach at Rhos-on-Sea, Wales. Pic: Reuters

‘We are calling on everyone to play their part’

The National Drought Group (NDG), which includes the Met Office, government, regulators, water companies, the National Farmers’ Union, Canal & River Trust, anglers, and conservation experts, met at the start of the week to highlight the water-saving measures each sector is taking.

The group praised the public for reducing their daily usage, after Yorkshire Water reported a 10% reduction in domestic demand following the introduction of their hosepipe ban, which saved up to 80 million litres per day.

“The situation is nationally significant, and we are calling on everyone to play their part and help reduce the pressure on our water environment,” said Helen Wakeham, NDG chair and director of water at the Environment Agency.

“Water companies must continue to quickly fix leaks and lead the way in saving water.

“We know the challenges farmers are facing and will continue to work with them, other land users, and businesses to ensure everyone acts sustainably.”

Current drought situation in England

– Drought has been declared in: Yorkshire, Cumbria and Lancashire, Greater Manchester Merseyside and Cheshire, East Midlands, West Midlands.

– Areas in prolonged dry weather (the phase before drought) are: Northeast, Lincolnshire and Northamptonshire, East Anglia, Thames, Wessex, Solent and South Downs.

– Yorkshire Water has a hosepipe ban in place for all its customers, while Thames, South East, and Southern Water have postcode-specific bans.

– Reservoirs fell by 2% last week and are now 67.7% full on average across England. The average for the first week of August is 80.5%.

– The lowest reservoirs are Blithfield (49.1%), Derwent Valley (47.2%), Chew Valley Lake (48.3%), Blagdon (46.3%).

– Rainfall in July was 89% of the long-term average for the month across England. This is the sixth consecutive month of below-average rainfall.

– Across the country, 51% of river flows were normal, with the rest below normal, notably low or exceptionally low.

– Two rivers – Wye and Ely Ouse – were the lowest on record for July.

– There are currently navigation closures or restrictions across sections of the Leeds and Liverpool, Macclesfield, Trent and Mersey, Peak Forest, Rochdale, Oxford and Grand Union Canal.

The rainfall at the end of July was welcomed by growers, even though the dry weather is set to have an impact on the harvest, with the National Farmers Union (NFU) noting how water shortages have impacted the growing season.

“Some farms are reporting a significant drop in yields, which is financially devastating for the farm business and could have impacts for the UK’s overall harvest,” NFU vice-president Rachel Hallos said.

Ms Hallos urged that investment in water infrastructure and a more effective planning system was urgently needed “to avoid the swing between extreme drought and flooding and to secure water supplies for food production”.

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Drought in England explained

The dry weather also impacts the health of the waterways, as low water levels reduce oxygen levels in the water, which can lead to fish deaths, more algae growth, and could prevent wildlife from moving up or downstream.

Water minister Emma Hardy said the government is “urgently stepping up its response” to respond to dry weather, including investment in new reservoirs, but called on firms to do their bit.

“Water companies must now take action to follow their drought plans,” she said.

“I will hold them to account if they delay.”

Tips for staying cool from the UKHSA

  • 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

“We face a growing water shortage in the next decade,” the minister warned, which she said is why building new reservoirs – something the government has criticised the previous administration for not doing – is so important.

The hot and dry conditions have also led to warnings of wildfires, following blazes near Wimborne in Dorset and at Edinburgh’s Arthur’s Seat over the weekend.

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