'Difficult times' but we're on right road, insists PM

RESOLUTE Liz Truss insisted she is sticking with her Government's mini-Budget because Britain would face higher inflation and an economic slowdown without it.

- Sam Lister

The Prime Minister said she understands people face "difficult times" and that the country is in a "very serious situation".

She acknowledged parts of the plan were controversial but said it had been vital to act quickly to "get the economy going".

Ms. Truss added: "We had to take urgent action to get our economy growing, get Britain moving, and also deal with inflation.

"That means taking controversial and difficult decisions. I am prepared to do that."

And she said without her growth plan the UK would be "facing higher inflation and more likelihood of an economic slowdown".

One of the most controversial measures in last week's financial statement was the decision to end a cap on bankers' bonuses.

Ms. Truss insisted she was on "the side" of red-wall voters but she "wouldn't apologize" for also wanting the City to be a success.

The PM said the Treasury is working "very, very closely with the Bank of England.

Challenge

In a series of interviews with BBC regional radio stations, she added: "We are facing very difficult economic times. We are facing that on a global level.

"We won't see growth come through overnight. What is important is that we are putting this country on a better trajectory for the long term."

Chancellor Kwasi Kwarteng's £45billion tax-cutting package has spooked markets and forced the Bank to intervene.