London Daily

Focus on the big picture.
Friday, Jun 20, 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

0:00
0:00
Close
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
Trump Organization Launches 5G Mobile Network and Golden Handset
Towcester Hosts 2025 English Greyhound Derby Amid Industry Scrutiny
Gary Oldman and David Beckham Knighted in King's Birthday Honours
Over 30,000 Lightning Strikes Recorded Across UK During Overnight Storms
Princess of Wales Returns to Public Duties at Trooping the Colour
Red Arrows Use Sustainable Fuel in Historic Trooping the Colour Flypast
Former Welsh First Minister Addresses Unionist Concerns Over Irish Language
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
France Bars Israeli Arms Companies from Paris Defense Expo
King Charles Leads Tribute to Air India Crash Victims at Trooping the Colour
Jack Pitchford Embarks on 200-Mile Walk to Support Stem Cell Charity
Surrey Hikers Take on Challenge of Climbing 11 Peaks in a Single Day
UK Deploys RAF Jets to Middle East Amid Israel-Iran Tensions
Two Skydivers Die in 'Tragic Accident' at Devon Airfield
Sainsbury's and Morrisons Accused of Displaying Prohibited Tobacco Ads
UK Launches National Inquiry into Grooming Gangs
Families Seek Closure After Air India Crash
Gold Emerges as Global Safe Haven Amid Uncertainty
Trump Reports $57 Million Earnings from Crypto Venture
Trump's Military Parade Sparks Concerns Over Authoritarianism
Nationwide 'No Kings' Protests Challenge Trump's Leadership
UK Deploys Jets to Middle East Amid Rising Tensions
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
Germany Holds First Veterans Celebration Since WWII
U.S. Health Secretary Dismisses CDC Vaccine Advisory Committee
Minnesota Lawmaker Melissa Hortman and Husband Killed in Targeted Attack; Senator John Hoffman and Wife Injured
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
×