PM Rishi Sunak Defends Record as Liz Truss Budget Criticized

London (Parliament News) – Rishi Sunak defends his economic record against criticism following Liz Truss’s budget decisions, highlighting past warnings and deflecting accusations during parliamentary questioning.

Rishi Sunak has upheld his economic record after Sir Keir Starmer slammed former Tory PM Liz Truss’s decisions. The Labour leader stated Ms Truss had been accountable for a “disastrous kamikaze budget that triggered chaos for millions”. The PM alienated himself from his predecessor stating he had told Ms Truss her economic policies were “wrong”. 

What triggered Liz Truss’s downfall as PM?

Ms Truss became Britain’s shortest-serving prime minister when she was compelled to resign after just 49 days. Her mini-budget, which contained £45bn of unfunded tax cuts, initiated economic turmoil and led to her downfall as prime minister. She is currently promoting her new book Ten Years to Save the West and has expressed that her plan was aimed at boosting economic growth but was “undermined” by the Bank of England and the Office for Budget Responsibility.

How did Sir Keir Starmer critique Truss?

According to BBC, Sir Keir presented the subject of Ms Truss and her book at Prime Minister’s Questions, joking that he was the “proud owner” of a “rare unsigned copy”. “It is quite the read. She argues the Tory Party’s disastrous kamikaze budget that started chaos for millions was – her words – ‘the happiest moment of her premiership’.”

He questioned if the prime minister had “met anyone with a mortgage who agrees” adding that “tens of billions of pounds of unfunded tax cuts” had “left millions paying more on their mortgages”.

In reply, Mr Sunak stated: “Everyone knows that two years ago I wasn’t afraid to repeatedly warn about what her economic policies would lead to, even if it wasn’t what people wanted to hear at the time.” 

What warning did Sunak issue about Truss’s policies?

During the battle, with the Tory party in 2022, Mr Sunak had claimed that his opponent Ms Truss’s tax cut plans would “tip millions of people into misery”. “I was right then but I am also right now when I say that his [Sir Keir’s] economic policies would be a disaster for Britain” Mr Sunak described Sir Keir. He added: “When my predecessor was running for leader, to use his words, I did have the stomach to argue out loud about her economic policies and the conviction to say that they were wrong not once, but twice.”

What did Jeremy Hunt propose regarding National Insurance?

The Labour leader claimed that the Conservatives were currently engaging in £46bn worth of unfunded tax cuts, with its plan to scrap National Insurance altogether. 

Chancellor Jeremy Hunt, who utilised his Budget last month to cut National Insurance, has said he would like to scrap the tax altogether but stressed that this was “a long-term ambition”.

The Labour leader declared such a move could only be paid for by cutting the NHS, the state pension or increasing income tax – and asked the prime minister which one he would opt for.

How did Sunak address accusations about taxes?

Mr Sunak side-stepped the query, instead pointing out that his recent tax cuts amounted to “£900 for a typical worker” – although the IFS think tank calculates the figure is closer to £340 when other changes are taken into account.

He also recommended that instead of reading Ms Truss’s new book, the Labour leader should read the tax advice provided to his deputy, Angela Rayner.

Sir Keir hit back, blaming Mr Sunak for “smearing a working-class woman” while his family had “used schemes to avoid millions of pounds of tax” – a reference to the prime minister’s wife’s earlier use of the non-dom status.

What controversies surround Angela Rayner’s tax affairs?

Ms Rayner is confronting questions over where she was living before she sold a house in 2015, and whether it meant she should have paid tax on the profits. Greater Manchester Police have also stated they are investigating claims she may have falsely registered her address on the electoral roll.

Ms Rayner has vowed to resign if she is found to have perpetrated a criminal offence. She has resisted calls to issue professional advice she requested after the row over taxes broke out.

Sir Keir, who is sticking by his deputy, has stated he has not read the advice, although members of his team have