The prime minister, Liz Truss, has apologised for the “mistakes” she has made in her first few volatile weeks in office.
Speaking for the first time after almost all the tax cuts announced in last month’s mini-budget were scrapped, Ms Truss said: “I recognise we have made mistakes.
“I am sorry for those mistakes, but I fixed those mistakes. I appointed a new chancellor, we have restored economic stability and fiscal discipline,” she told broadcasters.
Chancellor Hunt urges Tories to ‘give Truss a chance’
“What I now want to do is go on and deliver for the public.
“We were elected on the 2019 manifesto, and I want to go on and deliver that.”
After a fifth Conservative MP – senior backbencher Sir Charles Walker – publicly called for her to go, Ms Truss said she was focused on “delivering for the British public”.
“We are in difficult economic times; we are in different international times with the war being perpetrated in Ukraine,” she said.
“Now is the time to focus on delivering, making sure we are delivering on our energy package.
“Before we stepped in, people were facing energy bills of up to £6,000. We have now put in place the energy price guarantee. We have reversed the national insurance increase and that’s what I am thinking about as prime minister.”
Ms Truss is battling to save her premiership after new chancellor Jeremy Hunt tore up the bulk of the economic strategy that brought her into office as prime minister just six weeks ago.
Ms Truss became PM after winning the Tory leadership contest on the back of promises to dramatically cut tax and upend the status quo in the Treasury.
But Ms Truss and her then chancellor Kwasi Kwarteng’s tax-slashing mini-budget unleashed turbulence in the financial markets, sending the pound to record lows against the dollar, interest and mortgage rates soaring, and forcing the Bank of England to intervene.
On Monday, Mr Hunt revealed he was reversing nearly all the tax cuts unveiled last month and said he would be setting up an economic advisory council to assist the government as it seeks to repair the damage caused by Ms Truss’s fiscal policies.
The changes Mr Hunt revealed include:
• No cuts to dividend tax rates
• Repeal of the easing of IR35 rules for the self-employed introduced in 2017 and 2021
• No new VAT-free shopping scheme for overseas visitors to the UK
• No freeze on alcohol duty rates
• Basic rate of income tax to remain at 20%, not reduce to 19% from April 2023
• Energy price guarantee only until April 2023
He also signalled there could be U-turns on other policy areas, including the windfall tax, pensions triple lock and pledge to raise defence spending.
The extraordinary events have led to some Tory MPs calling for Ms Truss to go, with Sir Charles Walker telling Sky News political editor Beth Rigby: “I think her position is untenable. She has put colleagues, the country, through a huge amount of unnecessary pain and upset and worry.”
He suggested she has one to two weeks to resign before MPs try to remove her.
But Mr Hunt has insisted Ms Truss will be prime minister at Christmas, as he called on rebel Tory MPs to “give her a chance”.
The prime minister’s press secretary also said there had been no point on Monday when Ms Truss thought her time was up.
With her position on the line, Ms Truss met the One Nation group of Tory MPs in Westminster on Monday evening.
Conservative Party chairman Jake Berry said there had been a focus on “unity” and he had not heard any irritation towards her in the meeting.
