Former Prime Minister Liz Truss has launched a scathing attack on Labour Chancellor Rachel Reeves, accusing her of pushing Britain “to the brink of economic crisis”.
In a new video statement, Truss blamed high taxes, excessive regulation and “disastrous net zero policies” for the country’s current economic woes.
The former Conservative leader claimed she had attempted to address these issues during her brief premiership in 2022, but was “undermined by the economic establishment”.
She said she was forced to reverse her policies before they could be implemented, following what she described as “a 24 hour onslaught from the mainstream media”.
The attack comes as it emerged Truss has sent a cease and desist letter to Labour leader Sir Keir Starmer over claims she crashed the economy.
Legal representatives for Truss wrote to Starmer stating such claims were “false and defamatory” and threatened legal action if he continues making them publicly.
The former PM’s lawyers argue that financial turmoil during her tenure was caused by the liability-driven investment (LDI) crisis, not her mini-Budget.
“Those rate movements were caused by the Bank of England, and in particular by its poor handling of the LDI crisis, and its regulatory failures,” her legal team wrote.
The Prime Minister’s spokesperson responded by questioning whether Truss would “be writing to millions of people up and down the country” who blamed her economic record for increased mortgage bills.
In her latest statement, Truss pointed out that current government gilt rates for ten and 30-year bonds are higher than during her 2022 premiership.
She criticised Rachel Reeves’s recent budget, claiming the Chancellor “borrowed far more” than Truss’s administration did in 2022, “but with no plans to pay it back through increased economic growth”.
Truss’s 48-day tenure as Prime Minister ended following market turmoil after her mini-Budget, which included sweeping tax cuts and a £150bn energy bill freeze.
“The people who sabotaged the mini budget have led us inexorably to the path we’re on now,” Truss said, arguing that reviving her policies was the only way to escape “the economic doom loop”.
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