Just one day after Liz Truss assumed office, the pound’s value has sunk to a low not seen since 1985, knocked by the UK’s worsening economic outlook and the strength of the US dollar.
Financial markets have been rattled by the new prime minister’s plans to boost the economy through tax cuts while also potentially providing around £100bn to cap energy costs in a support package expected to be unveiled on Thursday.
At their first PMQs clash, Sir Keir Starmer has accused Liz Truss of seeking to “protect Shell’s profits and give Amazon a tax break” rather than help households and public services weather the cost of living crisis, after she ruled out a windfall tax on energy firms.
The Labour leader warned Ms Truss would force taxpayers to “foot the bill” for her reported plans to freeze rocketing energy bills, dubbed a decades-long “Truss tax” by the SNP’s Ian Blackford.
Despite fears she was ditching party unity in favour of a “cabinet of cronies” upon entering No 10, one incoming minister told The Times: “I doubt she’ll last two years.”
