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
Scotland’s Deputy First Minister has said he has never seen “financial strain and pressure” like that being experienced currently.
John Swinney, who was previously finance secretary for nine years – including during the financial crash of 2008 – appeared before MSPs on Thursday to discuss in-year cuts to the Scottish Government’s budget.
Prime Minister Liz Truss has insisted the Government’s tax-cutting measures are the “right plan” in the face of rising energy bills and to get the economy growing despite market turmoil sparked by the Chancellor’s mini-budget.
In her first public comments since the mini-budget market chaos, Ms Truss defended Chancellor Kwasi Kwarteng’s measures, insisting “urgent action” was needed, although she admitted the Government’s decisions have been “controversial”.
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