UK (Parliament Politics Magazine) – Liz Truss, former Prime Minister, has warned the Labour leader to stop accusing her of crashing the economy and also sent a legal notice to Keir Starmer.
The British Prime Minister has been served with a letter from the ex-prime minister, demanding to stop alleging her.
Liz Truss’s lawyer’s response
Lawyers for the former prime minister argue the remarks made ahead of the general election are “false and defamatory” and could “seriously harm her reputation.”
As reported by the Independent, Ms. Truss’s legal team claims that comments made by Keir Starmer before elections contributed to her defeat in South West Norfolk.
Ms. Truss’s lawyers cite a report by Andrew Lilico of the Institute of Economic Affairs, arguing that there was no economic crash after her budget; instead, the economy saw growth following her policies.
What did the letter say?
The letter from the ex-prime minister’s legal team written to Sir Keir Starmer stated,
“We are writing in relation to statements you have made publicly in respect of our client which have caused and will likely continue to cause serious harm to her reputation.”
It added, “Of particular concern are the false and defamatory public statements you made about our client in the lead-up to the UK general election from late May 2024, at a time when you knew or ought to have known that those statements were false and the statements were likely to materially impact public opinion of our client whilst she was standing as the parliamentary candidate for the Conservative Party in South West Norfolk.”
The letter claims that the current Prime Minister’s statements are defamatory and damaging to the former prime minister’s reputation.
It also blames the Bank of England for its handling of LDI from pension funds, which made companies more exposed to interest rate changes.
Labour faces pressure as borrowing costs rise
The Labour government’s first budget faces growing pressure. On Wednesday, borrowing costs reached their highest level in almost 17 years, driven by bond market sell-offs and fears of stagflation.
The increase in government debt servicing costs threatens to reduce Labour’s financial headroom, raising concerns about how investors confidence in the UK’s fiscal stability.
Shadow Chancellor Mel Stride will inquire Chancellor Rachel Reeves in the Commons on Thursday about the rising pressure of borrowing outlook on the nation’s finances.
What did Keir Starmer say about Liz Truss?
The British Prime Minister has repeatedly condemned Liz Truss’s economic policies, particularly after her September 2022 mini-budget, consistently alleging that she damaged the economy in remarks that have provoked significant criticism from her supporters.
Rishi Sunak remarks about Truss’s policies
Prominent Conservatives, including Rishi Sunak, have criticised Liz Truss’s economic strategies. In April 2024, Sunak highlighted that he had previously warned about the effects of her economic policies despite the backlash at the time. He was not afraid to speak out regarding the risks that her policies posed for the British economy.
Liz Truss’s tenure as Prime Minister
Liz Truss’s 49 days as prime minister and the economic issues that followed were the major concerns of Labour’s election campaign, but few Tories backed her.
She was among the senior politicians who lost their seats in the party’s 2024 election defeat, as Labour wiped out her 2019 majority of 26,195.
The September 2022 mini-budget announced £45 billion in tax cuts without funding, which caused panic in financial markets and a rise in mortgage rates. Truss was forced to resign within two weeks after taking office.