Speaking at her first Prime Minister’s Questions since the mini-Budget, Liz Truss said that the government is not planning to make public spending cuts in its economic strategy, as well as reassuring renters that the ban on no-fault evictions would be going ahead.
When challenged by Labour leader Sir Keir Starmer on when ministers could reverse what he described as a “kamikaze budget” that had brought major market turmoil, Truss said that she would ensure that the government “spends public money” well and would be carrying through its tax-cutting measures without having to reduce public expenditure.
Truss said that the mini-Budget would introduce measures that would "protect" the UK economy "at this very difficult time internationally".
Truss also pointed out that the mini-Budget had contained substantial support packages for households and businesses to help cover their energy bills and challenged Sir Keir on whether he’d revoke them.
Sir Keir denied that he’d withdraw those elements of the mini-Budget, telling MPs that this was a Labour idea in the first instance.
Truss also distanced herself from suggestions that her government’s mini-Budget was responsible for rising interest rates that were pushing up mortgage payments, saying that this was a situation that was also happening around the world and reminding MPs that interest rates are set by the Bank of England and not the government.
Truss said: "We are seeing interest rates rising globally in the face of Putin's appalling war in Ukraine.
"What we are making sure is that we protect our economy at this very difficult time internationally.
"As a result of our action - and this has been independently corroborated - we will see higher growth and lower inflation."
The PM also informed MPs that ministers were “working on a plan” to help companies and households use energy more efficiently through the colder months, after an upcoming public information campaign on reducing winter energy use was recently pulled.
When quizzed on the government’s decision to lift the ban on fracking in England, Truss offered assurances that the practice would only be carried out in areas where local residents and businesses supported it.
The prime minister could face a Commons rebellion on the issue, with reports having emerged which suggest that some Tory MPs are locked in talks with opposition parties in a bid to take the matter to a Commons vote.
One of Truss’ major statements during the session was her reassurance that the ban on no-fault evictions would be going ahead as planned. It is scheduled to become enshrined in law next year.
The ban was one of the pledges outlined in the 2019 Conservative election manifesto and will prevent landlords from evicting tenants without reason.
Asked whether she could reassure renters that the ban would be implemented, Truss replied: “I can.”
The Renters Reform Bill - which will take the ban to law - was outlined in May’s Queen’s Speech and will bring with it other changes, such as forming an ombudsman to manage disputes and making the Decent Homes Standard applicable to privately renting households.
Image by Prime Minister's Office on Wikimedia Commons
