Liz Truss Refuses to Apologize for Mortgage Rate Hikes During Brief PM Tenure

Former UK PM Liz Truss refuses to apologize for mortgage rate hikes during her brief tenure, blaming the Bank of England and economic establishment, sparking ongoing debate over government's role in the economy.

author-image
Trim Correspondents
New Update
Liz Truss Refuses to Apologize for Mortgage Rate Hikes During Brief PM Tenure

Liz Truss Refuses to Apologize for Mortgage Rate Hikes During Brief PM Tenure

In an interview on April 21, 2024, former UK Prime Minister Liz Truss declined to apologize for causing mortgage rates to increase during her brief tenure in 2022. Truss blamed the Bank of England and the "deep resistance within the British economic establishment" for the issues she faced, stating that the rise in mortgage rates was a global phenomenon and not solely due to her policies.

Truss defended her "disastrous mini-budget", which included £45 billion in unfunded tax cuts and caused the pound to fall sharply and government borrowing costs to soar, leading to a surge in mortgage rates to a 14-year high. She accused the Labour Party and journalists of promoting a false narrative about the events of autumn 2022 and claimed she is seeking to be truthful about the problems in the country in her new book.

The former Prime Minister acknowledged that her government lost the confidence of financial markets following her chancellor's mini-budget, but insisted that she is not seeking to "reinstate" herself as prime minister and has no desire to return to Downing Street. Truss said she regretted not meeting with the Bank of England governor at the time, but was advised against it.

Why this matters: Truss's refusal to take responsibility for the economic turmoil during her brief tenure as Prime Minister highlights the ongoing debate about the role of government policies in shaping the economy. The impact of her actions on homeowners and the broader financial market stability remains a contentious issue nearly two years later.

The Labour party has accused Truss of engaging in a "twisted victory lap" and holding her responsible for the rise in mortgage rates and home repossession claims since her time as Prime Minister. When asked if she would like to return to Downing Street, Truss firmly said, "No."

Key Takeaways

  • Liz Truss refuses to apologize for mortgage rate hikes during her 2022 tenure.
  • Truss blames Bank of England and "economic establishment" for issues she faced.
  • Truss defends her "disastrous mini-budget" that caused pound to fall and costs to soar.
  • Truss acknowledges loss of financial market confidence but denies seeking to return as PM.
  • Labour accuses Truss of "twisted victory lap" over mortgage rate and home repossession impacts.