PMQs: Truss insists against spending cuts
During Prime Minister’s Questions, Liz Truss insisted she “had no plans to make any cuts to public spending, but will ensure the government will “spend public money well”.
The Prime Minister was asked by Labour leader Sir Keir Starmer if she intended to stick to a pledge made during her leadership contest: “the Prime Minister said ‘I’m very clear, I’m not planning public spending reductions’. Is she going to stick to that?”
Truss replied, “Absolutely.”
The IFS warned yesterday that “fiscal tightening: of £62 billion would be needed by 2026-27 in order to bring down debt and fill in the gaps caused by Truss’ tax cuts. Despite the bleak economic outlook, pro-Truss publications penned a positive spin that attempted to relieve the doom and gloom.
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How significant is Liz Truss’s pledge on public spending cuts?
While the PM’s announcement feels like a big deal, in reality the situation is complication and caution is required.
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