PM flounders as she struggles to defend financial turmoil in series of car crash radio interviews

29 September 2022, 11:47 | Updated: 29 September 2022, 11:52

Liz Truss struggled to answer questions and was lost for words at points as she defended her mini-budget and the economic turmoil it caused for the first time in a series of toe-curling radio interviews this morning.

Breaking her silence on the fall-out caused by her Government's bombshell fiscal statement, the PM grappled for answers at times struggling to explain the financial decisions.

Treasury minister Chris Philp also faced a bruising time defending the government's economic approach morning, and saw his justifications for the mini-budget branded "pitiful" by LBC host Nick Ferrari.

Truss's responses were strewn with long pauses as she defended the plans, saying the Government "had to take urgent action", despite it triggering a drop in the pound and forcing the Bank of England to buy £65bn of debt to settle markets and protect pensions.

She is under pressure to reverse the decision and sack her Chancellor Kwasi Kwarteng, but the embattled PM insisted it is "the right plan," and that she has to do what she believe is "right for the country".

In one of a succession of cringey encounters on local BBC stations, Truss was confronted over a claim that she had relieved the tax burden on working families - and her false claim that no households would face an energy bill over £2,500.

Read more: Chancellor’s mini-budget to pile on debt interest, warns Tony Blair Institute

Read more: "We had to take urgent action": PM defends mini-budget despite financial turmoil

The PM was challenged over giving 'scripted answers': “Prime minister - with respect that is the same scripted answer you’ve given to every local BBC radio station this morning," one presenter said.

"You’ve got the Bank of England stepping in now to try to clean up the mess a government has caused. That has never happened.”

Following a pause, Ms Truss blamed the “global economic situation” and Putin’s war in Ukraine, but was interrupted again.

“But this isn’t just about Putin," came the response. "Your Chancellor on Friday opened up the stable door and spooked the horses so much you could almost see the economy dragged behind them.”

In another exchange, Truss stopped short of guaranteeing that people's pensions would be safe.

She said: “Well, the Bank of England does a very, very good job on delivering financial stability.”

After being pressed for a direct answer, Truss said: “Well, the Bank of England do that and they do a very good job of it.”

BBC Radio Lancashire took Ms Truss to task on the Government's lifting the moratorium on fracking, despite uncertainties about its safety.

The announcement provoked anger from Tory MPs who represent areas where fracking could now take place.

But though Ms Truss insisted that it wouldn't take place without the consent of local people, she was unclear on what the consultation process would look like.

“Well ... the ... the energy secretary will be laying out in more detail exactly what that looks like, but it does mean making sure there is local support for going ahead.”

Presenter Graham Liver interjected: “It sounds like you don’t know.”

The PM replied: “Well, there are various detailed issues to be worked through, but I can assure [local Tory MP] Mark Menzies I will ensure there is local consent if we are to go ahead in any particular area with fracking.”

Later, she was put on the spot over her understanding of where fracking is actually taking place.

“You talked about how it was a success in other countries, but in America they do it in the middle of nowhere.

"Do you know actually where Preston New Road is, where they have been fracking?”

The PM paused, then replied: “Well I ... I don’t think I’ve been to that site in the past.”

Truss paused again before saying: “As I’ve said. we will only go ahead with projects where there is local consent. I’m very, very clear about that. We will make sure that local consent is in place.”

Kwarteng's economic package was met with alarm by leading economists, financial markets and some Tory MPs, and caused the pound to plummet to a record low.