PM clarifies she does have faith in chancellor after mini-budget

Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng during a visit to a construction site for a medical innovation campus in Birmingham, on day three of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Tuesday October 4, 2022.Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng during a visit to a construction site for a medical innovation campus in Birmingham, on day three of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Tuesday October 4, 2022.
Prime Minister Liz Truss and Chancellor of the Exchequer Kwasi Kwarteng during a visit to a construction site for a medical innovation campus in Birmingham, on day three of the Conservative Party annual conference at the International Convention Centre in Birmingham. Picture date: Tuesday October 4, 2022.
Liz Truss insisted she trusts Chancellor Kwasi Kwarteng despite the U-turn over axing the top rate of tax.

It came after the already-embattled Prime Minister had earlier in the day declined three times to say she had trust in the chancellor.

There have also been mixed messages over whether he will be allowed to accelerate the timing of his plan to bring order to the public finances.

Hide Ad
Hide Ad

Speaking to reporters during her visit to a health research centre building site in Birmingham – where the Conservative Party Conference is taking place, Ms Truss was repeatedly pressed on whether she could trust her Downing Street neighbour after his humiliating climbdown over the plan to axe the 45p rate of income tax for top earners.

She declined to use the “trust” word, but said: “I work very, very closely with my Chancellor.

“We are very focused on getting the economy growing, and that’s what people in Britain want.

“We are facing difficult economic times, we are seeing rising interest rates around the world, very serious issues with energy prices and inflation, and we have acted decisively.”

Hide Ad
Hide Ad

But having failed to say she trusts the Chancellor during the visit, Ms Truss later did give that message during a round of broadcast interviews.

“I do trust the Chancellor, absolutely,” she said.

Despite the insistence that the pair are working closely together, there was confusion over whether the Chancellor’s medium-term fiscal plan would be brought forward from its scheduled November 23 date.

The plan, and the Office for Budget Responsibility forecasts due to be published along side it, are keenly awaited by financial markets which have been spooked by the scale of government borrowing.

Mr Kwarteng used his conference speech to say the medium-term fiscal plan would be published “shortly”, seen as a sign that it could be moved forward to October, rather than the end of November.

Hide Ad
Hide Ad

Allies of the Chancellor said the OBR can move quicker and “so can we”.

But while Treasury insiders were considering moving the statement forward, publicly Ms Truss and Mr Kwarteng insisted the November 23 date remained in place.

Ms Truss said: “We’ve got the date of November 23.

“This is when we’re going to set out the OBR forecasts but also our medium-term fiscal plan.

“And what we’ve done is we’ve had to take very urgent action to deal with the immediate issues we face, the energy price, the inflation and a slowing global economy.”

Hide Ad
Hide Ad

Mr Kwarteng then said “’shortly’ is the 23rd (of November)” and suggested people had been “reading the runes” incorrectly.

“It’s going to be November 23.”

During the joint visit to a site where a medical innovation centre is being constructed in Selly Oak, the Prime Minister operated a remote lifting device used to position panes of glass.

She joked “how much does this glass cost if I break it” as she used the machine to safely move the pane.

The pair have long been ideological allies and personal friends, it is understood.