London’s PM Truss Keeps Steering the Ship—Despite the Storm
Prime Minister Liz Truss scratched her head and issued a public apology on Monday (Oct 17) after a series of “mistakes” in her tax‑cutting and energy‑savings plans sent investor confidence down the drain and smashed her poll numbers. Only then did she decide not to hand the reins to someone else.
“I’m Taking Responsibility”
“I do want to accept responsibility and say sorry for the mistakes that have been made,” Truss said on the BBC. She explained that her intent was to help people slash their energy bills, but the approach “went too far and too fast.”
Rolling Back the Tax‑Cutting Adventure
Finance Minister Jeremy Hunt was snapped into office on Friday after Truss fired her close ally Kwasi Kwarteng. On Monday, Hunt pulled the plug on her biggest tax‑cut agenda, scrapping:
- Unfunded £45 billion in tax cuts
- Her sprawling energy support scheme (now trimmed to a two‑year run ending only in April)
Truss shrugged when asked if she was “prime minister in name only” – she pointed out that she appointed Hunt because she knew she had to shift gears.
“It would have been completely irresponsible for me not to act in the national interest in the way where I have,” she said. “It was right that we changed policy.”
The Fallout: Borrowing Costs & Mortgage Offers Lowered
The idea of massive, unfunded tax cuts hit the market hard. Bonds rallied poorly, borrowing costs spiked, lenders pulled back on mortgage offers, and the Bank of England suggested it might have to step in to keep pension funds afloat. Truss claimed she understood the “very difficult” impact on families and promised to do whatever she could help them.
Defiance Amid a Potential Revolt
Just months into her tenure, Truss is up against a possible rebellion from her own party’s lawmakers, rumored to be starting this week. Yet she remains sharp: “I’m sticking around because I was elected to deliver for this country. And that is what I am determined to do.”
She promises to lead the Conservatives into the next election—if the party lifts the hat off her in the meantime, she will still be ready.
Key Takeaways
Liz Truss apologises for policy blunders and accepts responsibility;
Hunt cuts back costly tax cuts and scales energy support;
Market backlash trips borrowing costs and triggers potential Bank of England intervention;
Political storm brewing as lawmakers might oust her, but she vows to stay on until the next election.
