Former Prime Minister Liz Truss has sent a legal 'cease and desist' letter to Sir Keir Starmer, the leader of the UK’s opposition Labour Party, demanding he stop claiming she 'crashed the economy.' Truss’s lawyers argue that Starmer's repeated accusations are 'false and defamatory,' alleging harm to her politically, particularly in light of her loss of the South West Norfolk seat during the general election.

The legal threat follows Truss’s resignation as Prime Minister in 2022 after just 49 days in office, a period marked by soaring borrowing costs following her government’s mini-budget, which led to market turmoil.

Starmer’s spokesperson stated that he 'absolutely stands by' his criticisms of the previous government’s economic record, referencing the damaging impact of Truss’s policies, including rising mortgage bills.

In response, Truss asserted on social media that Starmer would not repeat his claim because 'he knows it's a lie.' The situation has further escalated with the pound reaching its lowest level in over a year and government borrowing costs hitting their highest in 16 years, amid warnings from economists about the potential need for tax rises or spending cuts to address the economic fallout.

Truss’s lawyers have warned Starmer of potential legal action if the defamatory statements continue, urging him to cease spreading what they describe as misleading information about her tenure.

Truss maintains that the market reaction following the mini-budget was not an economic 'crash' and that the media and political establishment forced a reversal of her policies.

Meanwhile, members of the Conservative Party continue to argue that Labour’s economic plans would fail to alleviate the damage caused by rising borrowing costs.