Starmer: Truss has caused “grotesque chaos” and “utter vacuum” of leadership

Keir Starmer has questioned how the country can “get the stability it needs” as he argued that Liz Truss has created an “utter vacuum” of leadership and her government offers “grotesque chaos”.

Speaking in parliament after Labour was granted an urgent question following an emergency statement by Jeremy Hunt this morning on the government’s fiscal plans, the Labour leader told MPs that “the country is in an economic crisis made in Downing Street” for which “it is working people who will pay”.

Hunt confirmed this morning that the government would be reversing “almost all” of the tax measures announced by his predecessor Kwasi Kwarteng, who was sacked last week, and that the ‘energy price guarantee’ will be scaled back from April.

Labour tabled an urgent question following the announcement, calling on the Prime Minister to make a statement and take questions from MPs. The Prime Minister did not attend parliament, however, and Penny Mordaunt was sent in her place.

The Labour leader told parliament that the Conservatives have “lost all credibility” and highlighted that “government borrowing costs have soared” and “mortgage rates have ballooned” following the ‘mini-Budget’ delivered last month by Kwarteng.

“There is long-term damage that can’t be undone. Once you’ve crashed a car at 100mph, you’ve damaged it for good and you’re going to be paying much more on your insurance for years to come,” Starmer said.

“Now it’s time for leaders to lead, but where is the Prime Minister? Hiding away, dodging questions, scared of her own shadow. The lady’s not for turning up.

“Now it’s time to be honest about the mistakes they made. But what does the Prime Minister say? My vision is right. My mission remains. I sacked my Chancellor but I can’t tell you why.

“And now’s the time for consistent messaging, but what do we get? A Prime Minister saying absolutely no spending reductions – a Chancellor saying there will be cuts. A Prime Minister saying she’s in charge – a Chancellor who thinks he’s the CEO and she’s just the chair.

“How can Britain get the stability it needs when all the government offers is grotesque chaos? How can Britain get the stability it needs when instead of leadership we have this utter vacuum? How can Britain get the stability it needs when the Prime Minister has no mandate from her party and no mandate from the country?”

Mordaunt apologised on behalf of Truss for her absence this afternoon, saying that “the PM is detained on urgent business”. The Labour leader told MPs: “I guess under this Tory government, everybody gets to be Prime Minister for 15 minutes”.

The Chancellor, appointed on Friday following the sacking of Kwarteng, confirmed today that the government would abandon plans for a reduction of the basic rate of income tax from 20% to 19% next April, cuts to dividend rates, IR35 tax changes, VAT-free shopping for tourists and alcohol duty changes announced by his predecessor.

Hunt warned that there would be “difficult decisions” to come on taxation and spending, that all government departments would “redouble their efforts to find savings” and that “some areas of spending will need to be cut”.

The Chancellor also confirmed that the ‘energy price guarantee’, as originally unveiled by Liz Truss, will only last until April 2023 and said the government will launch a review to consider a “new approach”.

“Beyond that, the Prime Minister and I have agreed it would not be responsible to continue exposing public finances to unlimited volatility in international gas prices,” Hunt said this morning.

“So I’m announcing today a Treasury-led review into how we support energy bills beyond April next year. The objective is to design a new approach that will cost the taxpayer significantly less than planned whilst ensuring enough support.”

The planned cut to National Insurance contributions of 1.25 percentage points will still go ahead, Hunt confirmed, as will the decrease in stamp duty.