Friday, March 29

Liz Truss addresses Tory conference with speech warning that change brings disruption – live | Politics


Liz Truss is about to deliver her first speech as leader, and prime minister, to the Conservative party conference. There are some in the party who also think it could be last; some of her critics have been speculating that she could be forced out by Christmas, because her first month in power has gone so badly, although it is hard to imagine a party ditching a leader so quickly.

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Normally a leader’s speech at conference last for around 50 minutes. We have been told this one will be about half that long, coming in at around 20 to 30 minutes.

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According to an extract released in advance, she is going to double down on her commitment to change an reform, telling members that this will bring “disruption” too. (See 9am.)

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In his Today interview Gordon Brown also warned that he did not think the financial crisis was over. Rising interest rates could clobber institutions in the “shadow banking” sector, he suggested. He told the programme:

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n

You’ve got problems with inflation, potentially problems with liquidity and solvency amongst companies. And you’ve got the potential for markets to be dysfunctional.

n

And I would be worried about the shadow banking – that’s the non-bank financial sector in this country.

n

And I would be very careful if I was the Bank of England and make sure that the supervision of that part of the economy is tightened up, because I do fear that, as inflation hits and interest rates rise, there will be a number of companies and a number of organisations that will be in grave difficulty.

n

So I don’t think this crisis is over because the pension funds have been rescued last week.

n

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Brown was prime minister at the time of the global financial crisis of 2008 and he was widely praised for his bank bailout response, which was followed by other governments around the world.

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Gordon Brown, the former Labour prime minister, said this morning that Liz Truss would provoke a “national uprising” if she refused to uprate benefits in line with inflation. Boris Johnson’s government said benefits would be uprated for 2023-24 in line with the September level of inflation (which may be close to 10%), which is the normal practice. But Truss has hinted benefits could rise in line with earnings, saving around £4bn, which would help fill the hole in government accounts left by her unfunded tax cuts.

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Brown told the Today programme:

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n

It’s divisive because we’re not in this together any more. It’s anti-work because 40% of those who would suffer are people on low pay in work. It’s anti-family because five million children would be in poverty.

n

And I think most of all, it’s immoral. It’s asking the poor to bear the burden for the crisis that we face in this country and for mistakes that other people have made, and it’s a scar on the soul of our country, it’s a stain on our conscience …

n

There will be a national uprising if this goes ahead because it is nothing to do with making the growth policies of the government work, it is simply making the poor pay the price.

n

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to uprate benefits in line with inflation would provoke ‘national uprising’, claims Gordon Brown”,”contributors”:[],”primaryDateLine”:”Wed 5 Oct 2022 11.15 BST”,”secondaryDateLine”:”First published on Wed 5 Oct 2022 09.00 BST”},{“id”:”633d3d8c8f0865e1775f487e”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

And here are some more lines from James Cleverly’s morning interview round.

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    n

  • Cleverly, the foreign secretary, said it was the obsessive media focus on the ab abolition of the 45% top rate of tax in the mini-budget that led to the government abandoning it, in a huge U-turn. He told Sky News:

  • n

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n

What you’re describing as a U-turn is the smallest element of a really big and significant support package to families, tax cut to families, stimulus package for the British economy.

n

You guys were constantly talking about the 45p tax rate, which is why we had to take it away, so that us guys could talk about the 95% of that package which was about cutting tax for working families, support for people trying to pay their energy bills, giving growth zones around the country, infrastructure investment for transport which unlocks the growth in the economy – that’s what we wanted to talk about and that’s what we will talk about.

n

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Cleverly is ignoring the fact that the media were focusing on the 45% tax rate decision because Tory MPs, and the country at large, were outraged about it.

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    n

  • He predicted that the Tories would recover their standing in the polls. He told Times Radio:

  • n

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n

This is a blip. It’s a necessary blip, but I’m absolutely confident when people see that growth, when they see their wages increase, when they see productivity increases, when they see the new rail, roads, when they feel those tax cuts, those voters will start coming back to us.

n

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    n

  • He refused to endorse what Suella Braverman, the home secretary, said yesterday about Tory MPs opposed to the 45% top rate of tax decision being engaged in a coup. He said Braverman “chose the words that she chose”, and he did not endorse them himself.

  • n

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    n

  • He said people should not be surprised by what Truss was doing because she set out her agenda very clearly during the Tory leadership contest. He said:

  • n

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n

The prime minister made it really clear what her philosophy was when she was running for the leadership. If people weren’t listening properly, I mean that’s more their problem than hers. She said that she was going to go for growth. She said she wanted to increase investment.

n

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claims 45% tax U-turn was necessary because of obsessive media focus on story”,”contributors”:[],”primaryDateLine”:”Wed 5 Oct 2022 11.15 BST”,”secondaryDateLine”:”First published on Wed 5 Oct 2022 09.00 BST”},{“id”:”633d3bbd8f08e5a4d389a0b9″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

And here are two more extracts from Liz Truss’s speech briefed to the media in advance. The PM will explain why she is focusing on growth (using an argument she has used many times before) and she will say there cannot be any more “drift and delay”.

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n

For too long, our economy has not grown as strongly as it should have done. For too long, the political debate has been dominated by how we distribute a limited economic pie. Instead, we need to grow the pie so that everyone gets a bigger slice. That is why I am determined to take a new approach and break us out of this high-tax, low-growth cycle. That is what our plan is about: getting our economy growing and rebuilding Britain through reform …

n

This is a great country. But I know that we can do better and we must do better. We have huge talent across the country. We’re not making enough of it. To deliver this, we need to get Britain moving. We cannot have any more drift and delay at this vital time.

n

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Good morning. Later this morning Liz Truss will deliver her keynote speech winding up what has been one of the most chaotic and dysfunctional party conferences organised by any major political party for years. The only one I can remember that was remotely similar was the Tory one in Blackpool in 2003, which saw the beleagured Iain Duncan Smith receive 19 standing ovations during his “the quiet man is turning up the volume” speech. A few weeks later, Conservative MPs decided to turn down the volume on Duncan Smith for good when they voted him out. Duncan Smith was the first Conservative leader elected by a ballot of party members. MPs concluded the members had just got the decision wrong, and many may be feeling the same way about Truss, the fourth Tory leader chosen by a leadership ballot.

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In extracts from her speech released overnight, Truss will restate her determination to change Britain, while admitting that change will bring “disruption”. She will say:

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n

The scale of the challenge is immense. War in Europe for the first time in a generation. A more uncertain world in the aftermath of Covid. And a global economic crisis. That is why in Britain we need to do things differently. Whenever there is change, there is disruption. Not everyone will be in favour. But everyone will benefit from the result – a growing economy and a better future. That is what we have a clear plan to deliver.

n

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The problem with this argument is that, by and large, people aren’t that fond of disruption. Britain in many respects is inherently conservative (one reason why it has often voted Conservative). The mini-budget was disruptive, but that contributed to mortgage products being withdrawn, and interest rates going up – triggering a fierce backlash against the Tories in the polls.

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James Cleverly, the foreign secretary, has been on the interview round this morning, and he acknowledged this when he told Times Radio the mini-budget had included “bitter-tasting medicine”. He said:

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n

Now the simple truth is, a number of people aren’t used to hearing about the stimulating effects of tax cuts about the growth effects of reducing regulation. And quite understandably, they are reacting to that. People don’t necessarily like bitter-tasting medicine, but it will make us all collectively economically feel better. And when they do start feeling better, I have no doubt at all, that will be reflected in the polls.

n

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Truss is due to deliver her speech in Birmingham at around 11am. Before she takes the stage, Jake Berry, the party chair, and Nadhim Zahawi, the Cabinet Office minister, are due to speak.

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I try to monitor the comments below the line (BTL) but it is impossible to read them all. If you have a direct question, do include “Andrew” in it somewhere and I’m more likely to find it. I do try to answer questions, and if they are of general interest, I will post the question and reply above the line (ATL), although I can’t promise to do this for everyone.

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If you want to attract my attention quickly, it is probably better to use Twitter. I’m on @AndrewSparrow.

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Alternatively, you can email me at [email protected]

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Key events

Liz Truss is about to deliver her first speech as leader, and prime minister, to the Conservative party conference. There are some in the party who also think it could be last; some of her critics have been speculating that she could be forced out by Christmas, because her first month in power has gone so badly, although it is hard to imagine a party ditching a leader so quickly.

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Normally a leader’s speech at conference last for around 50 minutes. We have been told this one will be about half that long, coming in at around 20 to 30 minutes.

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According to an extract released in advance, she is going to double down on her commitment to change an reform, telling members that this will bring “disruption” too. (See 9am.)

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In his Today interview Gordon Brown also warned that he did not think the financial crisis was over. Rising interest rates could clobber institutions in the “shadow banking” sector, he suggested. He told the programme:

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n

You’ve got problems with inflation, potentially problems with liquidity and solvency amongst companies. And you’ve got the potential for markets to be dysfunctional.

n

And I would be worried about the shadow banking – that’s the non-bank financial sector in this country.

n

And I would be very careful if I was the Bank of England and make sure that the supervision of that part of the economy is tightened up, because I do fear that, as inflation hits and interest rates rise, there will be a number of companies and a number of organisations that will be in grave difficulty.

n

So I don’t think this crisis is over because the pension funds have been rescued last week.

n

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Brown was prime minister at the time of the global financial crisis of 2008 and he was widely praised for his bank bailout response, which was followed by other governments around the world.

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Gordon Brown, the former Labour prime minister, said this morning that Liz Truss would provoke a “national uprising” if she refused to uprate benefits in line with inflation. Boris Johnson’s government said benefits would be uprated for 2023-24 in line with the September level of inflation (which may be close to 10%), which is the normal practice. But Truss has hinted benefits could rise in line with earnings, saving around £4bn, which would help fill the hole in government accounts left by her unfunded tax cuts.

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Brown told the Today programme:

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n

It’s divisive because we’re not in this together any more. It’s anti-work because 40% of those who would suffer are people on low pay in work. It’s anti-family because five million children would be in poverty.

n

And I think most of all, it’s immoral. It’s asking the poor to bear the burden for the crisis that we face in this country and for mistakes that other people have made, and it’s a scar on the soul of our country, it’s a stain on our conscience …

n

There will be a national uprising if this goes ahead because it is nothing to do with making the growth policies of the government work, it is simply making the poor pay the price.

n

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to uprate benefits in line with inflation would provoke ‘national uprising’, claims Gordon Brown”,”contributors”:[],”primaryDateLine”:”Wed 5 Oct 2022 11.15 BST”,”secondaryDateLine”:”First published on Wed 5 Oct 2022 09.00 BST”},{“id”:”633d3d8c8f0865e1775f487e”,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

And here are some more lines from James Cleverly’s morning interview round.

“,”elementId”:”755803e5-838d-4e92-9742-44a96a135100″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    n

  • Cleverly, the foreign secretary, said it was the obsessive media focus on the ab abolition of the 45% top rate of tax in the mini-budget that led to the government abandoning it, in a huge U-turn. He told Sky News:

  • n

“,”elementId”:”06ce5334-8ac4-4bd0-b39b-90e5bdaaa380″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

n

What you’re describing as a U-turn is the smallest element of a really big and significant support package to families, tax cut to families, stimulus package for the British economy.

n

You guys were constantly talking about the 45p tax rate, which is why we had to take it away, so that us guys could talk about the 95% of that package which was about cutting tax for working families, support for people trying to pay their energy bills, giving growth zones around the country, infrastructure investment for transport which unlocks the growth in the economy – that’s what we wanted to talk about and that’s what we will talk about.

n

“,”elementId”:”f4a25e01-1bb3-4ed6-a3a0-5513c4a4ad48″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

Cleverly is ignoring the fact that the media were focusing on the 45% tax rate decision because Tory MPs, and the country at large, were outraged about it.

“,”elementId”:”c607234e-fb23-46f9-b0d4-7e3371247c13″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    n

  • He predicted that the Tories would recover their standing in the polls. He told Times Radio:

  • n

“,”elementId”:”1998cf4e-83c0-4741-b5a8-9526e6bcc1aa”},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

n

This is a blip. It’s a necessary blip, but I’m absolutely confident when people see that growth, when they see their wages increase, when they see productivity increases, when they see the new rail, roads, when they feel those tax cuts, those voters will start coming back to us.

n

“,”elementId”:”05aa76e1-7dd8-4c4d-a8a2-9ffe726e85bf”},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    n

  • He refused to endorse what Suella Braverman, the home secretary, said yesterday about Tory MPs opposed to the 45% top rate of tax decision being engaged in a coup. He said Braverman “chose the words that she chose”, and he did not endorse them himself.

  • n

“,”elementId”:”115a1d2d-a677-41b6-bd52-22fc68134e62″},{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

    n

  • He said people should not be surprised by what Truss was doing because she set out her agenda very clearly during the Tory leadership contest. He said:

  • n

“,”elementId”:”9ba29466-90c0-4ae3-9080-d9d661710e83″},{“_type”:”model.dotcomrendering.pageElements.BlockquoteBlockElement”,”html”:”

n

The prime minister made it really clear what her philosophy was when she was running for the leadership. If people weren’t listening properly, I mean that’s more their problem than hers. She said that she was going to go for growth. She said she wanted to increase investment.

n

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claims 45% tax U-turn was necessary because of obsessive media focus on story”,”contributors”:[],”primaryDateLine”:”Wed 5 Oct 2022 11.15 BST”,”secondaryDateLine”:”First published on Wed 5 Oct 2022 09.00 BST”},{“id”:”633d3bbd8f08e5a4d389a0b9″,”elements”:[{“_type”:”model.dotcomrendering.pageElements.TextBlockElement”,”html”:”

And here are two more extracts from Liz Truss’s speech briefed to the media in advance. The PM will explain why she is focusing on growth (using an argument she has used many times before) and she will say there cannot be any more “drift and delay”.

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n

For too long, our economy has not grown as strongly as it should have done. For too long, the political debate has been dominated by how we distribute a limited economic pie. Instead, we need to grow the pie so that everyone gets a bigger slice. That is why I am determined to take a new approach and break us out of this high-tax, low-growth cycle. That is what our plan is about: getting our economy growing and rebuilding Britain through reform …

n

This is a great country. But I know that we can do better and we must do better. We have huge talent across the country. We’re not making enough of it. To deliver this, we need to get Britain moving. We cannot have any more drift and delay at this vital time.

n

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Good morning. Later this morning Liz Truss will deliver her keynote speech winding up what has been one of the most chaotic and dysfunctional party conferences organised by any major political party for years. The only one I can remember that was remotely similar was the Tory one in Blackpool in 2003, which saw the beleagured Iain Duncan Smith receive 19 standing ovations during his “the quiet man is turning up the volume” speech. A few weeks later, Conservative MPs decided to turn down the volume on Duncan Smith for good when they voted him out. Duncan Smith was the first Conservative leader elected by a ballot of party members. MPs concluded the members had just got the decision wrong, and many may be feeling the same way about Truss, the fourth Tory leader chosen by a leadership ballot.

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In extracts from her speech released overnight, Truss will restate her determination to change Britain, while admitting that change will bring “disruption”. She will say:

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n

The scale of the challenge is immense. War in Europe for the first time in a generation. A more uncertain world in the aftermath of Covid. And a global economic crisis. That is why in Britain we need to do things differently. Whenever there is change, there is disruption. Not everyone will be in favour. But everyone will benefit from the result – a growing economy and a better future. That is what we have a clear plan to deliver.

n

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The problem with this argument is that, by and large, people aren’t that fond of disruption. Britain in many respects is inherently conservative (one reason why it has often voted Conservative). The mini-budget was disruptive, but that contributed to mortgage products being withdrawn, and interest rates going up – triggering a fierce backlash against the Tories in the polls.

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James Cleverly, the foreign secretary, has been on the interview round this morning, and he acknowledged this when he told Times Radio the mini-budget had included “bitter-tasting medicine”. He said:

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n

Now the simple truth is, a number of people aren’t used to hearing about the stimulating effects of tax cuts about the growth effects of reducing regulation. And quite understandably, they are reacting to that. People don’t necessarily like bitter-tasting medicine, but it will make us all collectively economically feel better. And when they do start feeling better, I have no doubt at all, that will be reflected in the polls.

n

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Truss is due to deliver her speech in Birmingham at around 11am. Before she takes the stage, Jake Berry, the party chair, and Nadhim Zahawi, the Cabinet Office minister, are due to speak.

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I try to monitor the comments below the line (BTL) but it is impossible to read them all. If you have a direct question, do include “Andrew” in it somewhere and I’m more likely to find it. I do try to answer questions, and if they are of general interest, I will post the question and reply above the line (ATL), although I can’t promise to do this for everyone.

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If you want to attract my attention quickly, it is probably better to use Twitter. I’m on @AndrewSparrow.

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Alternatively, you can email me at [email protected]

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Truss says this is a vital time. These are stormy days. We mourn the death of Queen Elizabeth, “the rock on which modern Britain was built”.

In these tough times, we need to step up. She says she wants to put Britain on a stronger footing.

I believe that you know best how to spend your own money, to get on in life, to realise your ambitions.

That is what conservatism is about.

She says she is not interested in how many two-for-one offers people buy at the supermarket, or in virtual signalling.

(The Boris Johnson was going to ban buy-one-get-one-free offers for unhealthy food items.)

Liz Truss is taking the stage now. She gets a standing ovation as she arrives.

She says it is great to be here in Birmingham. It’s fantastic to see cranes across the skyline building new buildings, the trams going down the streets, and the bull at the heart of Birmingham.

This is what a city with a Tory mayor looks like. It’s positive, it’s entreprising, it’s successful, and Andy Street is a human dynamo, delivering for the people of Birmingham.

In the video Truss is saying she wants to get rid of the “barriers and blockages” that stop people setting up their own firms.

A video is being shown about Liz Truss. In it she is talking about growing up in Leeds and going to a comprehensive school.

She says, when she saw the people might have to pay £6,000 for fuel, she thought that was not right.

It was right to take a decision to avoid that, she says.

And she says she needs to ensure energy security for the future too.

Liz Truss addresses conference with new YouGov polling showing here already less popular than Boris Johnson or Jeremy Corbyn ever were.

Liz Truss is already less popular than Boris Johnson and Jeremy Corbyn ever were

Liz Truss: -59 net favourability (1-2 Oct)

Boris Johnson worst score: -53 (July 2022)
Jeremy Corbyn worst score: -55 (June 2019)https://t.co/28mDtcnwSO pic.twitter.com/vsdXbzUaZs

— YouGov (@YouGov) October 5, 2022

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At the conference cabinet members are now taking their seats in the hall.

We are now waiting to Liz Truss to start – unless there is a surprise speaker coming on to introduce her.

Zahawi lists a string of other cabinet ministers, saying they are all delivering too.

And when they do deliver, “we will blow Labour out of the water”, he claims.

Zahawi says Liz Truss is the third female prime minister, and the third female Conservative PM. He goes on:

Labour – all talk, but all we see is trousers.

He goes on to talk about how Truss works in the cabinet room, at the cabinet table, surrounded by papers.

Our new prime minister has total clarity of what she wants. Se has the laser-like focus that is a prerequisite of a great CEO. And, crucially, she knows her own mind.

Zahawi says Truss has told him what she wants to deliver. And he says he is overseeing that “effectively as the chief operating officer of this administration”.

(Others in the cabinet might not be so happy about the promotion Zahawi seems to have awarded himself.)

Nadhim Zahawi. Photograph: Toby Melville/Reuters

Nadhim Zahawi, the Cabinet Office minister, is speaking now. He started by recalling being called a “race traitor” at university when he refused to join a leftwing group. He responded by joining the Conservatives, he said, and he said he was hooked on politics from that moment.

Liz Truss to address Tory conference

Liz Truss is about to deliver her first speech as leader, and prime minister, to the Conservative party conference. There are some in the party who also think it could be last; some of her critics have been speculating that she could be forced out by Christmas, because her first month in power has gone so badly, although it is hard to imagine a party ditching a leader so quickly.

Normally a leader’s speech at conference last for around 50 minutes. We have been told this one will be about half that long, coming in at around 20 to 30 minutes.

According to an extract released in advance, she is going to double down on her commitment to change an reform, telling members that this will bring “disruption” too. (See 9am.)

In Birmingham the concerence proceedings have started, and Jake Berry, the party chair, is speaking.

He starts by paying tribute to Liz Truss as a leader who delivers, and does what she promises.

He says that Truss promised to tackle energy prices and she promised to reverse the national insurance increase. Did she deliver? Yes.

He goes on:

There you have it. Conference will fondly remember another great female prime minister who like to say to the EU, “No, no, no.” Watch out Sir Humphrey. You’ve just got the “Yes, yes, yes” prime minister.

(If Berry had remembered the scene from When Harry Met Sally, or Molly Bloom’s soliloquy, he might have phrased that differently.)




www.theguardian.com

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