Truss refuses to commit to more tax cuts in apparent row-back on Kwarteng comments

Liz Truss has refused to commit to more tax cuts in an apparent row back of earlier comments from Kwasi Kwarteng.

Truss today told BBC London that it was important to be “fiscally responsible” and to “bring debt down over time”, after being asked if she would bring in more tax cuts.

Truss and Kwarteng’s package of tax cuts – including a cut to the top rate of Income Tax from 45p to 40p – will be funded by £45bn+ of extra borrowing and came just after announcing an estimated £100bn energy support package.

The chancellor on Sunday said there was “more to come” on tax cuts and supply side reform in an intervention that may have helped accelerate this week’s sell-off of UK bonds, according to some City figures.

There has been speculation that Kwarteng’s comments also angered Number 10 and that they were not agreed beforehand.

Truss’ apparent row back comes after a series of car crash interviews this morning, which have been roundly criticised.

Bond yields spiked during the hour of eight back-to-back BBC local radio interviews, which saw many long pauses from the Prime Minister and a lack of detail on her plans.

She went on a series of BBC local TV station interviews this afternoon and blamed the past week’s markets turmoil on “global factors”, like the war in Ukraine.

“I think we’re in a very serious situation. It’s a global crisis which has been brought about by the aftermath of Covid, and Putin’s war in Ukraine,” she said.

More to follow