Liz Truss has insisted the government had to take “urgent action to get the economy growing” as she doubled down on the controversial mini-budget.
Last Friday’s fiscal event - which unveiled plans for massive unfunded tax cuts - has led to the pound plummeting in value and forced the Bank of England to step in to prop up the economy.
But in her first public comments on the crisis, the prime minister insisted: “This is the right plan that we’ve set out.”
She said she was prepared to take “hard” and “controversial” decisions to “get our economy and country moving”.
In an interview with Radio Leeds, she said: “We had to take decisive action to help people through this winter and next winter.
“I understand that families are struggling with their fuel bills. We had to take urgent action to get our economy growing, get Britain moving, and also deal with inflation.
“And of course, that means taking controversial and difficult decisions.
“But I’m prepared to do that as prime minister, because what’s important to me is that we get our economy moving, we make sure that people are able to get through this winter and we are prepared to do what it takes to make that happen.”
The prime minister has been accused of being missing in action after the pound dropped to a record low and the Bank of England was forced to inject £65 billion into the economy to protect people’s pensions.
Truss sought to place the blame for the economic turmoil on Vladimir Putin’s invasion of Ukraine, arguing it had pushed up global energy prices.
“Let’s remember why we’re here,” she said.
“We’re here because of Putin’s appalling war in Ukraine, that’s pushed up global energy prices.
“Countries are under pressure around the world, currencies are under pressure around the world. And that’s why it’s so important that this government took urgent action and within a week of becoming prime minister, I took urgent action on the energy bills.
“We’ve taken urgent action through our fiscal statement. And we will continue to make sure that we are on the side of people who work hard who do the right thing and making sure that people aren’t facing those very, very high energy costs.”
Truss admitted the growth “won’t come overnight” but added: “What’s important is that we’re putting this country on a better trajectory for the long term.”
