Truss insists her growth plan will succeed as Starmer calls on Tory rebels to work with Labour for 'economic sanity'
1 October 2022, 23:18 | Updated: 1 October 2022, 23:33
Liz Truss has insisted her growth plan will succeed while Opposition leader Sir Keir Starmer calls on Tory rebels to work with Labour for "economic sanity".
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The Prime Minister declared that only her plan to transform Britain into a low tax, high growth economy would reverse the "current trajectory of managed decline".
The government previously announced billions of pounds of tax cuts as part of its mini-budget, causing the pound to slump, and forcing the Bank of England to step in to calm financial markets.
But Ms Truss said "tough decisions" needed to be made to get the country back on track, insisting that the public is more concerned with jobs and education than "what the polls were last year".
It came as the PM unveiled fresh plans to cut red tape for small businesses.
However, Labour leader Sir Keir Starmer said Ms Truss and Chancellor Kwasi Kwarteng's "disastrous ideology" would inflict pain on the whole country.
Read more: Truss admits mini budget caused 'disruption' but says Government is 'on your side'
Sangita Myska says the government gaslit the nation.
In her first paper interview since becoming Prime Minister, Ms Truss defended the major tax cuts, saying she wants to "bring people with me on this journey".
"Change is always something that people might find worrying," Ms Truss told the Telegraph.
"But what I’m fundamentally saying is we do have to change, and the status quo isn't an option."
She went on to say the major tax cuts were part of a "reset" to drive growth.
"That’s what people need to look at, they need to look at the fundamentals of what we’re doing and the way the British economy does need to change," she said.
"We cannot continue on the current trajectory of managed decline... We must take a new direction."
Ms Truss' comments come ahead of the Tory party conference, which is set to kick off in Birmingham on Sunday.
Read more: Tory describes Birmingham as a ‘dump’ after ‘mugging attempt’
She was quick to dismiss talk of Mr Kwarteng being removed as Chancellor too.
"The Chancellor is doing an excellent job and we are working very closely together," she said.
"The decisions that have been taken are the right decisions that had to be taken in a hurry."
Meanwhile, Sir Keir Starmer is urging Tory rebels alarmed by Chancellor Kwasi Kwarteng's mini-budget tax cuts to work with Labour to defeat them in the House of Commons.
"Neither the country nor Parliament has had any say on these measures. That is unacceptable," Sir Keir said in the same paper.
"The economy is not a laboratory experiment for the maddest scientists of the Conservative Party.
"Mortgages, pensions and family finances are not casino chips for a Government intoxicated by dogma.
"There are many decent Conservative MPs who know this. My message to them is that Labour will work with anyone to ensure some semblance of economic sanity is restored."
Taking aim at her critics, Ms Truss argued: "I think it’s a declinist mentality, the idea that Britain’s best days are behind us and that all this is about is managing the distribution between people, rather than growing the size of the pie.
"I believe we can grow the size of the pie. But we need to take the tough decisions to do that."
The recent sell-off of sterling prompted fears that millions of mortgage holders could face crippling rises in their repayments as the Bank moves to ratchet up interest rates to shore up the currency and put a lid on inflation.
The turmoil erupted after markets took fright at Mr Kwarteng's £45 billion package of unfunded tax cuts - the biggest in 50 years - while committing billions to capping energy bills for the next two years.
The changes have seen Ms Truss' popularity rate plummet, with Opinium's latest survey finding more than half the public - 55% - disapproved of the job she is doing against just 18% approving - a net rating of minus 37.
Support for Mr Kwarteng showed a similar drop, with 55% disapproving against 15% approving - a net rating of minus 40 - down 30 points on a week ago.
