Home Inverness colorado business Truss defends government record amid concerns over rising interest rates

Truss defends government record amid concerns over rising interest rates


Liz Truss said the government will do ‘what we can’ to support households over the coming months amid growing concerns over the pressure rising interest rates will put on millions of people across the country .

The Prime Minister insisted that her government would be there to help households through the cost of living crisis, but also stressed that she and the Chancellor for Growth were the antidote to some of the problems facing the country is facing.

But Ms Truss, who has been forced into two major U-turns in recent days amid outcry over the Kwasi Kwarteng mini-budget, offered no particular reassurance to households that could face a sharp rise in interest rates. interest in the weeks and months to come. .

Speaking to broadcasters as she attends a turbulent Conservative Party conference, she said the government would do ‘what we can to help people’.

Prime Minister Liz Truss arriving at the Hyatt Hotel in Birmingham during day three of the Conservative Party’s annual conference (Jacob King/PA)

Asked if the government might be able to help struggling households, she acknowledged people were ‘worried’ about the cost of living and rising inflation, but again said that interest rates were a decision of the Bank of England.

The Bank of England is expected to feel compelled to step in with another interest rate hike in the coming weeks, following the Chancellor’s mini-budget last month, to further calm markets .

Such a move would only add further pressure to homeowners and those trying to buy a home.

Ms Truss defended the actions her administration has taken so far on the cost of living.

“That is why we have acted decisively on the guarantee of energy prices. We are also doing what we can to help homeowners through stamp duty reductions. The reality is, however, that interest rates are set by the independent Bank of England. They make these decisions based on the evolution of inflation and other factors. The energy intervention that we have made is likely to reduce inflation by up to five points, which has a positive effect.

“But ultimately what we see in the world as a result of (Russian President Vladimir) Putin’s war in Ukraine is rising interest rates. So the Federal Reserve, for example, has pushed interest rates up, so we’ll do what we can to support people. But ultimately it’s a decision of the independent Bank of England.

Rising interest rates could spell hardship for millions of homeowners (Steve Parsons/PA)
Rising interest rates could spell hardship for millions of homeowners (Steve Parsons/PA)

Ms Truss, who again asked if households could expect support, said: ‘I understand this is a very, very worrying time for people. Remember where we were four weeks ago, people were facing energy bills of up to £6,000.

“We helped with those energy bills on every level. We’ve also helped businesses that might go bankrupt through a business energy program and we’re also rolling back the National Insurance increase to put more money back in people’s pockets.

“So yes, these are tough times, but we will do as government what we can to help people get through while ensuring that we build the positive economy of the future, because at the end of the day, it is economic growth that will deliver the higher wages, the greater opportunities for people that will enable us to succeed in the future.