May 28, 2023

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Lizz Truss, pressured to resign as Prime Minister, including by leading members of her own party

In London, Lizz Truss is being pressured to resign as Prime Minister, including by leading members of her own party.

She was questioned in Parliament on Wednesday for the first time since she abandoned her disastrous tax package, known as a mini-budget. “I’m a fighter, not someone who runs when the going gets tough”, this is how the head of the British government described herself.

Liz Truss:I made it very clear that I was sorry for the mistakes I made. But it was right that in the circumstances I should make the changes I have made, continue my work for the benefit of the British people. Mr. Speaker, we have guaranteed energy prices. We are helping people this winter and will continue to do so“.

Keir Starmer, Leader of the Opposition:A book is being written about the period in which he was prime minister in office. It looks like it will be out by Christmas. We don’t know the release date, or the title“?

“Mini-budget” – the bone of contention

Liz Truss was installed six weeks ago in 10 Downing Street. A week ago she still had another chancellor, meaning Chancellor of the Exchequer, another economic plan and was answering “absolute” when Keir Starmer, the Labor opposition leader, asked her if she ruled out cuts to public spending funds.

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Liz Truss

On September 23, Truss and her former finance minister, Kwasi Kwarteng, announced a fiscal package, the so-called mini-budget. However, the announced measures triggered market disturbances, the pound devalued, and pension funds panicked. There was even a reprimand from the International Monetary Fund.

The measures initially envisaged

Backed, Truss sacked the former Chancellor of the Exchequer, handing the reins of the Treasury to Jeremy Hunt, who has reversed most of the strategy.

Among the measures initially expected and abandoned, now there are: the plans to eliminate the increase in the profit tax, the plans to eliminate an income tax category, but also the shortening, from two years, to only six months, of the guarantee designed for to subsidize energy bills, both for consumers and businesses. And, as he admitted to MPs on Tuesday night, the decisions “PAINFUL” on public spending are now imminent.

Two days ago, Truss was forced to apologize to the British people for her mistakes.

Liz Truss:
I admit I made mistakes. I apologize for these mistakes. But I fixed them. We appointed a new finance minister. We have restored economic stability and fiscal discipline“.

Jill Rutter, Senior Research Fellow at UK in a Changing Europe:She saw many members of her own party turn against her. She saw the press that, as you know, cheered her during the (internal) party leadership election, and hailed her budget, how it is now turning against her and counting down her time (as prime minister). Truss has always prided herself on her resilience. But can he really want to give back more and more? He would have to be a very, very, very tough person to do that. But also someone who should see some kind of light at the end of the tunnel“.

There is no light at the end of the tunnel when it comes to the economy. The cost of living rose 10.1% in the last 12 months to September. Inflation increased, fueled mainly by higher food prices.

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