London Daily

Focus on the big picture.
Thursday, Jan 29, 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
Starmer Seeks Economic Gains From China Visit While Navigating US Diplomatic Sensitivities
Starmer Says China Visit Will Deliver Economic Benefits as He Prepares to Meet Xi Jinping
UK Prime Minister Starmer Arrives in China to Bolster Trade and Warn Firms of Strategic Opportunities
The AI Hiring Doom Loop — Algorithmic Recruiting Filters Out Top Talent and Rewards Average or Fake Candidates
Amazon to Cut 16,000 Corporate Jobs After Earlier 14,000 Reduction, Citing Streamlining and AI Investment
Federal Reserve Holds Interest Rate at 3.75% as Powell Faces DOJ Criminal Investigation During 2026 Decision
Putin’s Four-Year Ukraine Invasion Cost: Russia’s Mass Casualty Attrition and the Donbas Security-Guarantee Tradeoff
Wall Street Bets on Strong US Growth and Currency Moves as Dollar Slips After Trump Comments
UK Prime Minister Traveled to China Using Temporary Phones and Laptops to Limit Espionage Risks
Google’s $68 Million Voice Assistant Settlement Exposes Incentives That Reward Over-Collection
Kim Kardashian Admits Faking Paparazzi Visit to Britney Spears for Fame in Early 2000s
UPS to Cut 30,000 More Jobs by 2026 Amid Shift to High-Margin Deliveries
France Plans to Replace Teams and Zoom Across Government With Homegrown Visio by 2027
Trump Removes Minneapolis Deportation Operation Commander After Fatal Shooting of Protester
Iran’s Elite Wealth Abroad and Sanctions Leakage: How Offshore Luxury Sustains Regime Resilience
U.S. Central Command Announces Regional Air Exercise as Iran Unveils Drone Carrier Footage
Four Arrested in Andhra Pradesh Over Alleged HIV-Contaminated Injection Attack on Doctor
Hot Drinks, Hidden Particles: How Disposable Cups Quietly Increase Microplastic Exposure
UK Banks Pledge £11 Billion Lending Package to Help Firms Expand Overseas
Suella Braverman Defects to Reform UK, Accusing Conservatives of Betrayal on Core Policies
Melania Trump Documentary Sees Limited Box Office Traction in UK Cinemas
Meta and EssilorLuxottica Ray-Ban Smart Glasses and the Non-Consensual Public Recording Economy
WhatsApp Develops New Meta AI Features to Enhance User Control
Germany Considers Gold Reserves Amidst Rising Tensions with the U.S.
Michael Schumacher Shows Significant Improvement in Health Status
Greenland’s NATO Stress Test: Coercion, Credibility, and the New Arctic Bargaining Game
Diego Garcia and the Chagos Dispute: When Decolonization Collides With Alliance Power
Trump Claims “Total” U.S. Access to Greenland as NATO Weighs Arctic Basing Rights and Deterrence
Air France and KLM Suspend Multiple Middle East Routes as Regional Tensions Disrupt Aviation
U.S. winter storm triggers 13,000-plus flight cancellations and 160,000 power outages
Poland delays euro adoption as Domański cites $1tn economy and zloty advantage
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
PLA opens CMC probe of Zhang Youxia, Liu Zhenli over Xi authority and discipline violations
ICE and DHS immigration raids in Minneapolis: the use-of-force accountability crisis in mass deportation enforcement
UK’s Starmer and Trump Agree on Urgent Need to Bolster Arctic Security
Starmer Breaks Diplomatic Restraint With Firm Rebuke of Trump, Seizing Chance to Advocate for Europe
UK Finance Minister Reeves to Join Starmer on China Visit to Bolster Trade and Economic Ties
Prince Harry Says Sacrifices of NATO Forces in Afghanistan Deserve ‘Respect’ After Trump Remarks
Barron Trump Emerges as Key Remote Witness in UK Assault and Rape Trial
Nigel Farage Attended Davos 2026 Using HP Trust Delegate Pass Linked to Sasan Ghandehari
Gold Jumps More Than 8% in a Week as the Dollar Slides Amid Greenland Tariff Dispute
BlackRock Executive Rick Rieder Emerges as Leading Contender to Succeed Jerome Powell as Fed Chair
Boston Dynamics Atlas humanoid robot and LG CLOiD home robot: the platform lock-in fight to control Physical AI
United States under President Donald Trump completes withdrawal from the World Health Organization: health sovereignty versus global outbreak early-warning access
FBI and U.S. prosecutors vs Ryan Wedding’s transnational cocaine-smuggling network: the fight over witness-killing and cross-border enforcement
Trump Administration’s Iran Military Buildup and Sanctions Campaign Puts Deterrence Credibility on the Line
Apple and OpenAI Chase Screenless AI Wearables as the Post-iPhone Interface Battle Heats Up
Tech Brief: AI Compute, Chips, and Platform Power Moves Driving Today’s Market Narrative
NATO’s Stress Test Under Trump: Alliance Credibility, Burden-Sharing, and the Fight Over Strategic Territory
OpenAI’s Money Problem: Explosive Growth, Even Faster Costs, and a Race to Stay Ahead
×