Former prime minister Liz Truss has lawyered up, sending a cease and desist letter to Sir Keir Starmer, demanding he stop accusing her of “crashing the economy.” Truss’s lawyers argue the Labour leader’s claims are not just unkind but also untrue—and they’re hitting her reputation where it hurts.
Did She Really Crash the Economy?
The row centres on Truss’s infamous 2022 mini-budget, which triggered chaos in the gilt market and sent the pound plummeting. Sir Keir has repeatedly blamed her for the economic turbulence, dubbing it an “economic crash.”
But Truss isn’t having it. Her lawyers cite a report from Andrew Lilico of the Institute of Economic Affairs, who claims the economy actually grew following the fiscal fiasco. According to the letter, there was no drop in output or surge in unemployment, meaning Starmer’s rhetoric is, allegedly, wide of the mark.
A Letter Fit for a Thriller
In a letter dripping with legalese and indignation, Truss’s team accuses Starmer of peddling falsehoods that caused her to lose her South West Norfolk seat in July.
The letter reads:
“We are writing in relation to statements you have made publicly in respect of our client which have caused and will likely continue to cause serious harm to her reputation.”
It goes on to demand Starmer “cease and desist” from repeating the claim or risk further legal action.
The lawyers also redirected some of the blame towards the Bank of England, accusing it of mishandling the “liability-driven investment” (LDI) crisis linked to pension funds, which made markets more sensitive to interest rate movements.
Borrowing Blues and Budget Woes
As this drama unfolds, Labour’s first budget is also under scrutiny, with borrowing costs climbing to a 17-year high. Investors aren’t feeling too chipper about the government’s fiscal plans, and the pound has taken another dive, reaching its lowest value since April last year.
Shadow Chancellor Mel Stride is expected to grill Rachel Reeves over the rising cost of public borrowing, adding yet another headache to Labour’s growing financial woes.
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