UK Truss defends the ‘disruption’ agenda in a speech

• Prime Minister Liz Truss pledges to ride out the turmoil unleashed by her tax-cutting economic agenda.
• The four-day gathering saw policy U-turns from the government and open rebellion from lawmakers who fear the party is doomed.
• The government’s stimulus package alarmed financial markets when it was announced Sept. 23.

U.K. Prime Minister Liz Truss pledged Wednesday to ride out the economic turmoil. Caused by her tax-cutting agenda, claiming that the “disruption” will result in a wealthier, more efficient Britain.

Truss stated, “I am prepared to make difficult decisions.” Many members of her party are sceptical.

Truss delivered a speech intended to lift the spirits of delegates. At the end of a tumultuous Conservative conference in Birmingham, England.

Many are depressed after a four-day gathering that saw the government reverse policy, dire opinion polls, and open rebellion from lawmakers who fear the party will lose the next national election under Truss, who took office just a month ago after winning a party leadership vote.

Truss has vowed to stick to her plan to reshape the British economy through tax cuts and deregulation in order to end years of slow growth. She called tax cuts “morally and economically correct,” and accused her opponents of being “anti-growth.”

Truss acknowledged that “these are stormy days” for a country still mourning the death of Queen Elizabeth II and rocked by Russia’s invasion of Ukraine after taking the stage to the strains of the 1990s hit “Moving on Up.”

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Truss dismissed a brief protest by two Greenpeace activists, who unfurled a banner in the hall reading “Who voted for this?” and were escorted out to boos from the audience.

During Truss’ speech, peace activists hold a banner that reads “Who Voted for This?” Getty Images / Oli Scarff / AFP

“There is always disruption when there is change,” Truss said. “Not everyone will agree. However, everyone will benefit from the outcome — a growing economy and a brighter future. That is exactly what we intend to deliver.”

Many Conservative Party members are already opposed to the plan. Truss’ first major policy, a stimulus package worth £45 billion ($50 billion) paid for by government borrowing, alarmed financial markets when it was announced on September 23. The pound fell to a record low against the dollar, forcing the Bank of England to intervene to support the bond market and avert a larger economic crisis.

Under political and financial pressure, the government scrapped the most divisive part of its budget proposal on Monday: a tax cut on earnings above £150,000 ($167,000) per year. This will result in a £2 billion savings, a small portion of the government’s £45 billion tax-cutting plan. Most economists believe that deep cuts in government spending will be required to pay for the remainder.

On Nov. 23, the government plans to release a fully costed fiscal plan alongside an economic forecast from the independent Office for Budget Responsibility.

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