RECAP: Liz Truss BBC radio: Follow how PM's local radio appearance unfolded
It is her first media appearance following the mini budget as the UK faces economic turmoil Ms Truss defended Chancellor Kwasi Kwarteng’s measures, insisting “urgent action” was needed, although she admitted the Government’s decisions have been “controversial”.
Prime Minister Liz Truss has insisted the Government had to “take urgent action to get the economy growing” in her first public comments since the mini-budget market turmoil.
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The market angst in recent days has seen the Chancellor step up efforts to reassure the City about his economic plans after the International Monetary Fund (IMF) criticised the Government’s strategy. Chief Secretary to the Treasury Chris Philp insisted there would be no consideration “at all” for a change of course by the Government.
On Wednesday, the Bank of England launched an emergency government bond-buying programme to prevent borrowing costs from spiralling out of control and stave off a “material risk to UK financial stability”.
The Bank announced it was stepping in to buy up to £65 billion worth of Government bonds – known as gilts – at an “urgent pace” after fears over the Government’s economic policies sent the pound tumbling and sparked a sell-off in the gilts market.
The market turmoil had forced pension funds to sell Government bonds to head off worries over their solvency, but this was threatening to see them suffer severe losses.
Here’s how it unfolded.
Liz Truss to face questions in first media appearance amid mini-budget turmoil
Liz Truss on BBC Radio Bristol says that the UK faces economic problems due to the war in Ukraine and Vladimir Putin
Host James Hanson responds saying “This isn’t just about Putin. Your Chancellor on Friday opened up the stable door and spooked the horses so much you could almost see the economy being dragged behind them.”
Truss continues “This is about Putin and the war in Ukraine” to which the BBC Radio Bristol host responds saying: “So the Bank of England intervention yesterday was the fault of Vladimir Putin was it?”
BBC Radio host James Hanson asks whether pensions are safe amid the high cost of borrowing.
He asks Truss “I thought you believed in sound money, or have you changed your mind about that like you did about Brexit?”
John Acres on BBC Radio Stoke “We’re going to spend more on mortgage fees under what you’ve done based on predictions than we would have saved on energy”
Liz Truss says that she is shocked that anyone believes her government shouldn’t act over energy and she is “surprised” that anyone is suggesting that her energy measures shouldn’t have been taken.
Radio Stoke asks why a windfall tax would not be introduced.
Liz Truss says that she doesn’t believe such a method would deliver for the country
Asked how she was creating a fairer tax system, Liz Truss told BBC Radio Nottingham: “The reality is, people having lower taxes across the board – everything from national insurance to corporation tax to income tax – helps everybody because it helps grow the economy.
“It’s not necessarily popular to keep corporation tax low but I want to make sure we do because I want to make sure we attract investment into this country.”
The Prime Minister admitted: “Of course people who are better off tend to pay more taxes, so there’s a disproportionate effect there.”
Asked if there was any evidence that cutting the taxes of the most wealthy cut inequality, she said: “There’s plenty of evidence that if you have very high taxes they lead to lower economic growth.”
Asked whether she would stick to her plan, Ms Truss told BBC Radio Norfolk: “This is the right plan that we have set out.
“This is about making sure people are going into the winter not worried about high fuel bills, which is what we were looking at.
“It was simply unconscionable that we could have allowed that to happen.”