Liz Truss insists she will lead the Conservatives into the next general election, even though her U-turns have left her struggling to regain her authority.
The prime minister apologized for her errors after the new chancellor, Jeremy Hunt, rejected nearly all of her tax-cutting ideas to calm market turbulence.
She noted that her month-old premiership “has not been ideal,” but that she has “corrected” errors.
She added that it would have been “responsible” to alter the course.
She reaffirmed her commitment to fostering economic growth in the United Kingdom but conceded that it will now take longer to achieve.
She stated, “I am dedicated to the concept, but we will have to implement it differently.”
It follows a tumultuous day at Westminster, during which Mr. Hunt said that nearly all of the tax cuts announced in the mini-budget last month will be scrapped.
Investors have applauded the decision, but it has left Ms. Truss’ economic strategy in shambles barely weeks into her tenure as No. 10 minister.
Ms. Truss stated in her interview that she accepted responsibility for going “too far, too soon” and that she wanted to “apologize for the errors that have been committed.”
She stated that she was committed to a “low-tax, high-growth economy,” but that economic stability preservation was now the “priority.”
“I believe it is a sign of an honest politician to admit, ‘Yes, I made a mistake. I’ve addressed it, and now we must deliver for the people.’
It would have been utterly irresponsible for me not to act as I have in the national interest.
Ms. Truss remained mute as Mr. Hunt delivered a statement in the House of Commons to explain to MPs why the economic strategy presented by Kwasi Kwarteng one month prior was being scrapped.
Ahead of an economic statement on 31 October, in which he would provide additional details on a strategy to decrease the UK’s debt burden, the chancellor cautioned that “tough decisions” on taxes and expenditure remain.
Along with reforms to the pension triple lock, he stated that further windfall taxes on energy corporations could not be ruled out. This was a proposal that Ms. Truss frequently dismissed throughout her Tory leadership campaign.
Ms. Truss refused a Labour request to explain the U-turns to MPs herself before Mr. Hunt’s statement, with Commons leader Penny Mordaunt stating that the prime minister had been “detained on urgent business.” The prime minister later arrived in the Commons and sat next to Mr. Hunt before he began his statement.
Sir Keir Starmer, leader of the Labour Party, accused the Prime Minister of leaving an “absolute vacuum” in government, while one of his MPs joked that she had been “hiding beneath her desk.”
In sum, £32 billion of the £45 billion in tax cuts proposed in last month’s mini-budget have been scrapped, including April’s reduction of the basic rate of income tax from 20p to 19p.
A freeze on alcohol duty rates has also been repealed, as have reductions in dividend taxes and VAT-free shopping for international tourists.
Leadership dangers
After six months, the government’s energy support package, a program that Ms. Truss has regularly championed in defense of her leadership, will similarly be pared back.
Despite party rules prohibiting a formal leadership challenge for a year, the reversals have spurred some Tory MPs to quietly discuss how Ms. Truss could be removed from office.
Reportedly under consideration include the submission of letters of no confidence to push party leaders to amend the rules, or change the rules to allow MPs to bypass party members and choose a new leader themselves.
Ed Davey, leader of the Liberal Democrats, demanded a general election, telling that “the harm has already been done” by the mini-budget.
Shadow Chancellor Rachel Reeves backed calls for the dismissal of Ms. Truss, stating on BBC Breakfast that “the only thing left from the prime minister’s proposal is higher mortgage rates and bonuses for bankers.”
Ms. Reeves stated that Labour would fund a longer-term energy bill assistance program by eliminating non-dom status.
James Heappey, minister of defense, stated that the public “would not tolerate the Conservative Party ripping itself apart” with another leadership change.
Mr. Heappey added, “We have seen over the past three or four weeks the economic cost of political uncertainty.”
There appears to be little consensus over who should replace Ms. Truss if she is ousted.
Ben Wallace, secretary of defense, has dispelled rumors that he may replace Ms. Truss if she were to quit.
He told the Times that he will retain his current position and accused Tory MPs of engaging in “political parlor games.”
Five of the Prime Minister’s MPs have publicly urged her to resign, while others have told the press that they believe her time in power is up.
Ms. Truss has been holding talks with her cabinet members and backbench MPs to reassure her party of her control over the government.
She also met Sir Graham Brady, chairman of the committee that determines the Conservative party’s rulebook.
The treasurer of the committee has stated that a rule change is conceivable but noted that “approximately 60-70 percent” of the party’s representatives would need to endorse the move.
