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DEFIANT Liz Truss broke her silence after days of turmoil yesterday, insisting there will be no U-turn on the mini-Budget.
The Prime Minister faced down her critics to insist she had the “right plan” to tackle rising energy bills and get the flat-lining economy growing.
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But she continued to be under fire — with top politicians in Germany and the US piling in to criticise her strategy, and some Tory MPs getting nervous about the prospect of spending cuts or reductions in the value of benefits.
Liz and Chancellor Kwasi Kwarteng have been attacked for failing to sell her £45billion in tax cuts to the money markets.
City traders are unhappy the Government has not spelled out a strategy for reducing overall Government spending to pay for the cuts.
In a series of interviews yesterday morning, PM Liz defended her plans and insisted she was not for turning.
She said: “We had to take urgent action to get our economy growing, get Britain moving and also deal with inflation. Of course that means taking controversial decisions.
“But I am prepared to do that as Prime Minister because what is important to me is that we get our economy moving.”
Ms Truss, who only entered Downing Street three weeks ago, said the public must be patient over seeing her plans, that were set out in the mini-Budget, begin to work.
She said: “Of course a lot of the measures that we’ve announced won’t happen overnight, and then we won’t see the growth overnight.
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“But what’s important is that we’re putting this country on a better trajectory for the long term. Of course there were elements of controversy, as there always are.”
Her comments came in a series of interviews with BBC local radio station breakfast shows where she started her fightback ahead of the Tory party conference this weekend.
She outright denied the economic package was a “reverse Robin Hood” deal that benefits the rich more than anyone else.
But the PM told BBC Radio Nottingham: “It’s not fair to have a recession. It’s not fair to have towns where you’re not having the investment.
“It’s not fair if we don’t get high-paying jobs in the future because we’ve got the highest tax burden in 70 years. That’s what’s not fair.”
Listeners heard several awkward moments during the interviews, especially on BBC Radio Stoke where there was 3.7 seconds of dead air.
The PM explained how her policies were aimed at “growing the size of the pie so everyone can benefit”.
Presenter John Acres hit back, asking whether that was “by borrowing more and putting mortgages up”.
Her comments came just a day after the Bank of England launched a £65billion intervention as the country’s pension funds teetered on the brink of collapse.
Chancellor Kwasi Kwarteng also spooked markets, sending the pound tumbling, after saying there would be more tax cuts on top of the mini-Budget.
The PM insisted her energy bailout for families and business — costing £60billion for the next six months — was the result of Russia’s invasion of Ukraine.
She said: “We are facing a global economic crisis brought about by Putin’s war.”
The Treasury says Ministers are being asked to “take a responsible and disciplined approach to spending” as Whitehall departments are forced to stick to existing budget limits, despite soaring inflation.
And the Resolution Foundation says the country is set for another era of devastating cuts — on a level not seen since ex-Chancellor George Osborne’s austerity drive — to pay for the tax-cutting package.
Ms Truss is facing a backlash over some of her measures, such as abolishing the 45p top rate of tax for those earning over £150,000.
Ex-Cabinet Minister Julian Smith said: “The Government must scrap 45p, take responsibility for the link between last Friday and the impact on people’s mortgages and make clear that it will do everything possible to stabilise markets.”
Tory backbenchers are getting jittery as those claiming Universal Credit and other welfare payments have no assurance they will rise in line with inflation.
There is also concern at the UK’s direction in the US, where Secretary of Commerce, Gina Raimondo said the policy “isn’t one that’s going to fight inflation in the short-term or put you in good stead for long term growth”.
German finance minister Christian Lindner said: “Germany is showing its economic strength in an energy war. Our relief package is effective, we don’t want to follow the UK’s path.”
Mr Kwarteng, visiting Darlington, Co Durham, yesterday, said: “What we are focusing on is delivering the growth plan.”
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POUND’S REBOUND
THE pound yesterday recovered to its highest level since last week’s mini-Budget — but the markets endured another rollercoaster day.
Uncertainty about interest rate rises led to lenders withdrawing more mortgage products.
Another 600 were pulled yesterday taking the total to 1,621 since Friday.
It will make it more expensive for homeowners to secure a mortgage. A two-year fixed for £180,000 is on offer with a 7.38 per cent rate from Aldermore. The cheapest is 3.92 per cent. A year ago it was just 1.5 per cent.
Mortgage rates are set by the base rate linked to the trading of government bonds known as gilts.
The Bank of England intervened yesterday to avoid a crash of the pension fund market after government bonds fell sharply in price and yields rocketed. Yields rise when bonds fall as investors want more return.
The Bank had to spend another £1.4billion to stabilise the market.
Rabobank analysts said: “The reality is the Bank has applied a temporary sticking plaster.”
The FTSE 100 fell another 1.77 per cent to 6,881.59 points. But the pound recovered to $1.10.
