PMQs: Liz Truss grilled over financial turmoil as she faces MPs for first time since mini-budget

Liz Truss has faced MPs for the first time at PMQs following on from the mini-budget.

Labour leader Sir Keir Starmer quizzed the PM on the financial chaos following the mini budget – with Liz Truss saying she would stick to her pledge not to reduce public spending.

Starmer asked Liz Truss if she agrees that the turmoil in the markets had nothing to do with the budget following a crash in the pound and action from the Bank of England to aid markets.

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The Prime Minister responded saying that as a result of the Government’s action, the UK will see “higher growth and lower inflation”.

Prime Minister Liz Truss departs 10 Downing Street, Westminster, London, to attend Prime Minister's Questions at the Houses of Parliament. Picture date: Wednesday October 12, 2022.

“What we have done is we have taken decisive action. We have taken decisive action to make sure that people are not facing energy bills of £6,000 for two years. And I think we remember the Opposition is only talking about six months.

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“We’ve also taken decisive action to make sure that we are not facing the highest taxes for 70 years in the face of a global economic slowdown.

“What we are making sure is that we protect our economy at this very difficult time internationally. As a result of our action – and this has been independently corroborated – we will see higher growth and lower inflation.”

Starmer retorted telling MPs about a couple from Wolverhampton who were about to buy their first home but because the “Government’s borrowing spree sent interest rates spiralling”, their mortgage offer was withdrawn.

He asked the Prime Minister if she understands why they are “completely furious with her” adding "Who voted for this? Not home owners paying extra on their mortgages, not working people paying for tax cuts for the largest companies, not even most of the MPs behind the PM who know you can't pay for tax cuts on the never-never."

The Prime Minister replied: “The fact is that when I came into office, people were facing energy bills of up £6,000. The party opposite are shouting, but he is opposing the very package that we brought in, the energy price guarantee. That was the major part of the mini-budget that we announced.

"What we are doing is helping people with lower stamp duty, helping people with their energy costs, reducing inflation with our energy package and keeping taxes low.”