Beautiful Virgin Islands

Tuesday, Jul 01, 2025

UK PM Liz Truss Apologises For "Mistakes" After U-Turn On Economic Plans

UK PM Liz Truss Apologises For "Mistakes" After U-Turn On Economic Plans

"I do want to accept responsibility and say sorry for the mistakes that have been made," Embattled UK Prime Minister Liz Truss said.

Embattled UK Prime Minister Liz Truss on Monday apologised for going "too far too fast" with reforms that triggered economic turmoil, but vowed to remain leader despite a series of humiliating climbdowns.

"I do want to accept responsibility and say sorry for the mistakes that have been made... we went too far and too fast," she told the BBC.

However, she said that she was "completely committed to delivering for this country" despite questions over who was now in control of government policy.

Her government on Monday axed almost all of its debt-fuelled tax cuts unveiled last month to avert fresh market chaos.

The shock move by new finance chief Jeremy Hunt -- parachuted into the job on Friday to replace sacked Kwasi Kwarteng -- leaves Truss's position in a precarious state, with Conservative MP Roger Gale saying that Hunt was "de facto prime minister".

Hunt estimated the tax changes would raise about £32 billion ($36 billion) per year, after economists estimated the government faced a £60-billion black hole. He also warned of tough spending cuts.

The chancellor of the exchequer said no government could control markets -- but stressed his action would give certainty over public finances and help secure growth.

"The prime minister and I agreed yesterday to reverse almost all the tax measures announced in the growth plan three weeks ago," Hunt told parliament, flanked by a grim-faced Truss.

The chancellor also announced the formation of an economic advisory council, featuring four experts outside of government.

Hours earlier, he had used a brief televised statement to announce the dramatic reversals to nervous markets, conceding last month's budget from his predecessor had harmed the public purse.

Truss told the BBC that she still believed in a "high-growth, low-tax economy", but that economic stability was "my priority as prime minister".

U-Turns


Hunt scrapped plans to axe the lowest rate of income tax, and curbed the government's flagship energy price freeze -- pulling the plug in April instead of late 2024.

After April, his department will "review" its energy support package, he said.

A proposed reduction in shareholder dividend tax was also binned, along with planned tax-free shopping for tourists and a freeze on alcohol duty.

The announcement comes as Truss's governing Conservative party tanks in the opinion polls amid the reversals and Britain's worsening cost-of-living crisis.

Truss fired her close friend Kwarteng on Friday after their recent tax-slashing budget sent bond yields spiking and the pound collapsing to a record dollar-low on fears of rocketing UK debt -- fuelling intense speculation over her political future one month after taking office.

Hunt's action on Monday sent the British pound soaring against the dollar and euro, while bond yields dipped.

'Difficult Decisions'


Tax reductions financed via borrowing were the centrepiece of last month's ill-fated budget.

Truss had already staged two embarrassing budget U-turns, scrapping tax cuts for the richest earners and on company profits, and is now facing calls to resign even from her own MPs.

"There will be more difficult decisions I am afraid, on both tax and spending, as we deliver our commitment to get debt falling as a share of the economy over the medium term," Hunt cautioned.

"All departments will need to redouble their efforts to find savings, and some areas of spending will need to be cut."

Hunt already stated that he was not taking anything off the table amid speculation of cutbacks on areas like defence, hospitals and schools.

He met over the weekend with the governor of the Bank of England, Andrew Bailey, and the head of the Debt Management Office for talks.

In the wake of the earlier turmoil, the BoE launched emergency buying of UK government bonds -- a policy that ended Friday.

The budget furore has reportedly sparked a plot to oust the prime minister.

UK media reported that senior Conservative MPs were plotting to unseat Truss.

'Death knell'


Monday's latest massive U-turn comes after Truss was elected Tory leader on a tax-slashing platform that analysts dubbed "Trussonomics".

"That sound you can hear is the death knell for Trussonomics, with the vast majority of her tax cutting plans now consigned to the bin," said Laura Suter, head of personal finance at stockbroker AJ Bell.

In two weeks' time, Hunt will unveil his medium-term fiscal plan alongside independent economic forecasts from the Office for Budget Responsibility.

But the main opposition Labour party, riding high in the polls, said the ruling Tories were responsible for "chaos and fiasco".

"This is a Tory crisis, made in Downing Street, but ordinary working people are paying the price," its finance spokeswoman Rachel Reeves told parliament.

Newsletter

Related Articles

Beautiful Virgin Islands
0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
Trump Administration Considers Withdrawal of Funding for Hospitals Providing Gender Treatment to Minors
Texas Enacts Law Allowing Gold and Silver Transactions
China Unveils Miniature Insect-Like Surveillance Drone
OpenAI Secures Multimillion-Dollar AI Contracts with Pentagon, India, and Grab
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Elon Musk Critiques Senate Budget Proposal Over Job Losses and Strategic Risks
Los Angeles Riots ended with Federal Investigations into Funding
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Education Secretary Announces Overhaul of Complaints System Amid Rising Parental Grievances
Massive Anti-Government Protests Erupt in Belgrade
Trump Ends Trade Talks with Canada Over Digital Services Tax
UK Government Softens Welfare Reform Plans Amid Labour Party Rebellion
Labour Faces Rebellion Over Disability Benefit Reforms Ahead of Key Vote
Jeff Bezos and Lauren Sánchez Host Lavish Wedding in Venice Amid Protests
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
North Korea to Open New Beach Resort to Boost Tourism Economy
UK Labour Party Faces Internal Tensions Over Welfare Reforms
Andrew Cuomo Hints at Potential November Comeback Amid Democratic Primary Results
Curtis Sliwa Champions His Vision for New York City Amid Rising Crime Concerns
Federal Reserve Proposes Changes to Capital Rule Affecting Major Banks
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Trump Escalates Criticism of Media Over Iran Strike Coverage
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
Big Four Accounting Firms Fined in Exam Cheating Scandal
NATO Members Agree to 5% Defense Spending Target by 2035
Australia's Star Casino Secures $195 Million Rescue Package Amid Challenges
UK to Enhance Nuclear Capabilities with Acquisition of F-35A Fighter Jets
Russian Shadow Payments via Cryptocurrency Reach $9 Billion
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Airlines Evaluate Flight Cancellations Amid Escalating US-Iran Tensions
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
×