London Daily

Focus on the big picture.
Wednesday, Jul 01, 2026

Liz Truss's government is living hour by hour

Liz Truss's government is living hour by hour

The Truss programme for government is dead. This is a hand-to-mouth government, living hour by hour.

If you pick up the hint of panic in the air, you're not the only one. Make that a stench. Anything apparently solid quickly becomes air.

Now, nearly every element of her prospectus has just been shredded by her new chancellor.

The statement that has just been delivered is the second yanking forward of an important economic moment for the country. Originally it was in the diary for November. Then Halloween. Now we've had it today.

"We will reverse almost all the tax measures" from the mini-budget, Jeremy Hunt said. What an extraordinary thing to hear.

Diaries are going out of fashion at Westminster but to be clear, there still will be a statement in a fortnight's time, alongside those numbers about the state of the economy from the Office for Budget Responsibility.

But so nervous are those in charge of the market reaction, that they dared not leave an announcement until mid-afternoon when he'll stand up in the Commons.

That's right - a government so petrified by the pace of events, dragging forward a statement by a fortnight isn't soon enough.

Not only has the planned cut in the basic rate of income tax been binned, so has the plan originally from Rishi Sunak to cut it in 2024.

The prime minister who promised to cut taxes by more than her rival over the summer, is now keeping them higher than he planned.

And even the flagship energy support package, the crutch upon which the prime minister has leant whenever asked a tricky question in the last few weeks, has shrivelled vastly.

It is now a six month package, not a two year one.

So if this feels a bit confusing this is where it is at: There had to be an interim statement before the interim statement, to try to steady the ship.

This is a ship where bits have already broken off and sunk, and where the navigation equipment - the very direction and purpose of this government - was ripped out and thrown into the sea with first the U-turns, then the ejection of a chancellor.

A ship where plenty of the crew are eyeing up the lifeboats, near certain the whole thing is going down soon enough.

"If polling suggests an alternative leader will lose fewer seats than she will, then she's had it," one MP not prone to exaggeration or shouting their mouth off tells me.

"Not many of us buy the idea that another leadership change is the worst case scenario. Nothing can be worse than where we are already," they said, adding "you can't sack your closest ally for carrying out your orders and call it pragmatism."

Yesterday Liz Truss invited Jeremy Hunt and his family to lunch at Chequers. He has gone from backbencher life on Friday morning to the prime minister's country retreat in Buckinghamshire 48 hours later for a three-hour meeting where I am told they were in "violent agreement".

Some in the Tory party see him as the real prime minister now, so enfeebled is the actual prime minister's authority. One source suggested they are working "in lockstep."

That's the very phrase they used to use about the bloke she blew out of the building on Friday lunchtime, the now former Chancellor Kwasi Kwarteng.

What we seem to be getting now is shock and awe in reverse - the Big Bang of radical policy ideas blitzed in one go, promised by Liz Truss when she took office - going backwards. Fast.

One source described today as a "down payment" on what the government is now promising.

Say whatever we can, as quickly as we can, to reassure the markets.

My sentence not theirs, but that's the thrust of it.

So in details terms, the focus today is tax. And the focus in a fortnight will be spending.

Even a chancellor moving as fast as this one can't negotiate detailed cuts across Whitehall over a single Sunday roast or whatever.

That discussion will start tomorrow in a cabinet meeting.

Remember: this is about two things: Restoring the government's financial credibility and propping Liz Truss up in office.


With things moving at such a breath-taking pace, here's how the rest of this afternoon shakes up:

Labour tried to haul the prime minister to the Commons to answer for what is going on. But she didn't turn up and instead sent Leader of the Commons Penny Mordaunt, putting back the chancellor's appearance by about an hour.

Liz Truss is meeting her backbenchers, offering to see them all this week. This evening, she is hosting what is being called a "reception" for her cabinet.

What on earth is a "reception" you might ask? Well, we have.

The gist of it seems to be trying to reassure her ministers and include them in forthcoming decisions - not least the government spending cuts to come, after they were frozen out of plans before the disastrous mini-budget.

I can bring you a little nugget about one of the things that set tongues wagging last week - that throwaway remark from the King when he met Liz Truss for their weekly audience at Buckingham Palace. You might recall that King Charles said "dear oh dear" as he exchanged small talk with the prime minister as she arrived.

Inevitably some couldn't help jump to the conclusion that he was somehow offering a commentary on the pickle she is in. I'm now told it was actually a nod of sympathy because of logistics - it was the prime minister's second visit to the Palace in a matter of hours.

The pace of her premiership, for all the wrong reasons from her point of view, shows no sign of slowing.

Newsletter

Related Articles

0:00
0:00
Close
UK Government Confirms Rejected Asylum Seekers to Remain Amid Enforcement Challenges
UK-China Economic Talks Focus on Services Trade and High-Value Sectors
Buckingham Palace Revamp Plans Unveiled to Modernise Royal and Public Facilities
Two Dead After Light Aircraft Crash in Essex Field, Investigation Underway
Princess Diana Marked at 65 With UK Tributes Reflecting on Her Public Legacy
England Teachers Face New Pay Cap Rules for Academy School Leaders Under Education Reform
Dublin Security Alert Escalates After Stabbing and Reports of Transport Disruption
UK Government Faces Scrutiny Over £10,000 Asylum Living Cost Contribution Requirement
England Prepares World Cup Knockout Match Against Democratic Republic of Congo
Northern Rail Project Warned of HS2-Style Cost Risks by UK Parliamentary Committee
UK Tightens Asylum Rules as Most Rejected Applicants Expected to Remain in Country
UK Heat Health Alert Issued as Temperatures Expected to Exceed 30°C Across England
Halifax Brand to Disappear From UK High Streets in Lloyds Banking Group Restructuring
England Teachers Receive 6.6 Percent Pay Rise Over Two Years as Schools Warn of Budget Strain
UK Defence Spending Plan Sparks Budget Clash as Regional Infrastructure Projects Face Pressure
Inquest Continues in Northern Ireland into Death of Noah Donohoe in Belfast
UK Travel Industry Calls for Suspension of New EU Border System During Peak Holiday Season
Telegraph Media Group Acquired by German Media Firm in £575 Million Deal Completion
House of Commons Warns Northern Rail Upgrade Risks Repeating High-Speed 2 Cost Overruns
UK Transport Unions Warn of Summer Strike Action Over Pay Disputes
UK Health Secretary Calls Maternity Care Review a “Watershed Moment” for NHS Reform
Nigel Farage Faces Questions Over £270,000 Payment Linked to Gold Marketing Firm
Labour Government Faces Internal Division Over North Sea Oil and Gas Policy Direction
National Screening Committee Invites New Proposals for UK Health Screening Programmes
UK and China Hold Industrial Strategy Talks on Trade and Export Growth Opportunities
UK Defence Funding Gap Widens as £4.7 Billion Shortfall Puts Pressure on Spending Priorities
United Kingdom Faces Historic Demographic Shift as Deaths Forecast to Exceed Births in England and Wales
United Kingdom Introduces Major Motability Scheme Reforms Targeting £1 Billion in Long-Term Savings
Global Billionaire Numbers Rise 13 Percent Amid Artificial Intelligence Stock Boom
Body of Fifteen-Year-Old Boy Recovered from Manchester Reservoir
Major Rail Disruption in UK After Cows Stray Onto Intercity Tracks
UK Launches National Campaign to Reduce Water Consumption After Heatwave
Foreign Secretary David Lammy Raises Case of UK Woman Death with US Authorities
Shetland Islands Council Approves Subsea Tunnel Plans Linking Major Islands
Telegraph Media Group Takeover by German-Led Consortium Completed
Resident Doctors in England Accept Government Pay and Conditions Deal
Andy Burnham Sets Out Ten-Year Economic Vision Amid Labour Leadership Debate
Asylum Seekers in UK Face £10,000 Contribution Requirement Under New Law
UK Government Moves to Break Apple and Google App Store Dominance
New UK Steel Tariffs and Import Quotas Aim to Shield Domestic Industry
Damning Report Exposes Failures in Maternity and Neonatal Care Across England
Government Data Reveals Five Billion Pound Shortfall in UK Defence Budget
Prime Minister Keir Starmer Unveils Three Hundred Billion Pound Defence Investment Plan
UK Crime and Policing Act 2026 Comes into Force with New Justice System Reforms
UK Prime Minister Hosts NATO Secretary General Mark Rutte for Security Talks at Downing Street
UK Tightens Oversight of Emissions Trading Scheme Through New Ministerial Directions
UK Issues Statement at UN Security Council on Violence in the West Bank
UK Environment Agency Clears Illegal Waste Site in West Yorkshire After Court Action
UK Resident Sentenced for Fraudulently Claiming £30,000 in Covid Business Loans
UK Launches Taskforce to Help Young People Claim Dormant Child Trust Fund Savings
×