Since Truss became prime minister in early September, two senior figures have left their posts. Her former chancellor, Kwasi Kwarteng, was sacked last Friday.
Earlier in the day, Truss had declared herself to be “a fighter, not a quitter,” amid calls for her own resignation at her first public grilling session since she sacked her finance minister and saw her economic agenda gutted.
Truss offered Parliament an apology — of sorts — as she came under withering criticism for first proposing big tax cuts and then reversing herself after her policies sent financial markets reeling.
“I’ve been very clear that I am sorry and I have made mistakes,” she told lawmakers in the House of Commons, where opposition members accused the new prime minister of governing with no viable plan and no mandate.
As Truss struggles, so does the British economy. Just a few hours before she appeared in Parliament, the government reported that inflation increased to 10.1 percent in September compared with prices last year. The higher cost of food was driving the spike.
The economy was in trouble before Truss became leader — though she arguably has made things worse. Energy costs are soaring, in part because of Russia’s war in Ukraine; the British pound is taking a beating; and the Bank of England has warned that a recession is likely before year’s end.
In her remarks, Truss blamed global head winds for the woes — and not her bungled plan for economic growth, which envisioned tax cuts for the well-to-do and corporations, paid for by deep borrowing and more debt.
Her appearance at prime minister’s questions, or PMQs — only her third since becoming leader of the country six weeks ago — found Truss mostly on the defensive. She lashed out at the opposition parties. But the opposition has not run Britain for the past 12 years. Her Conservative Party has.
Labour Party leader Keir Starmer asked Truss, “What is the point of a prime minister whose promises don’t even last a week?”
Starmer said that Truss’s now-defeated economic plan had sent adjustable mortgage rates soaring for homeowners, and charged that she had “trashed” the British economy.
“How can she be held to account when she is not in charge?” Starmer asked, referring to how her new finance chief, Jeremy Hunt, had presented an entirely new government policy this week. Some politicians and British media outlets have referred to Hunt as the “de facto prime minister.”
“I have acted in the national interest to make sure we have economic stability,” Truss retorted.
Reviews from the public have been brutal. One poll from YouGov found that only 10 percent of voters have a favorable view of Truss, making her the most unpopular prime minister the organization has ever tracked. Another survey found that most Conservative Party members — the small section of the population who voted her into office — would now like to see her resign.
If Truss stays in office, it may be less because she’s a fighter than because Conservative Party lawmakers — who would have to pressure or vote her out — are divided over who might replace her.
Foreign Secretary James Cleverly was among those in the party calling for patience. Speaking to Sky News, he said “going through another leadership campaign, defenestrating another prime minister” won’t “convince the British people that we are thinking about them rather than ourselves” or “convince the market to stay calm.”
“Being angry I get, I totally get it, but that’s an emotional response, not a plan,” he added.
The latest double-digit inflation figure is a 40-year-high and matches the number in July after a slight dip to 9.9 percent in August. The government’s target rate of inflation is 2 percent.
The figures published by the Office for National Statistics (ONS) on Wednesday showed that the rising costs were driven mostly by food prices, which jumped 14.5 percent compared with the same month last year. That was the largest annual increase since 1980.
“After last month’s small fall, headline inflation returned to its high seen earlier in the summer,” Darren Morgan, ONS director of economic statistics, said in a statement. “The rise was driven by further increases across food, which saw its largest annual rise in over 40 years, while hotel prices also increased after falling this time last year.”
The increases were somewhat mitigated by a drop in prices for gasoline and airline tickets, and the price of used cars has not increased as much as last year, he added.
Hunt responded to the figures, saying he understood that people across the country were struggling with higher bills.
“This government will prioritize help for the most vulnerable while delivering wider economic stability and driving long-term growth that will help everyone,” he said.
On Monday, Hunt announced that Truss’s previous pledge to help Britons with energy bills for the next two years had been junked because it was too expensive. Now, support will be guaranteed only until April 2023. Hunt said further help would then be “targeted.”
The government has so far refused to fund those subsidies with a windfall profits tax for oil and gas providers, as demanded by the opposition.
Experts have warned that because of rising global energy prices, bills could spike from an average of $2,800 a year to more than $4,500 next spring.
The squeeze on household costs hits those with the lowest incomes the hardest because they spend a greater proportion of their money on food, fuel and energy.