Former Prime Minister Liz Truss has despatched a authorized “cease and desist” letter to Sir Keir Starmer demanding he cease saying he “destroyed the economy”.
His legal professionals argue that the repeated claims by Sir Keir are “false and defamatory”, and that he has been politically deprived by shedding the South West Norfolk seat within the common election.
Truss was Britain's shortest-serving Prime Minister, compelled to resign after solely 49 days in workplace when borrowing prices soared following her authorities's mini-budget.
Sir Keir Starmer's spokesman mentioned Truss must also write off “millions of people up and down the country” who, he mentioned, have seen their mortgage payments rise due to his financial insurance policies.
The spokesperson advised reporters that the Prime Minister “absolutely stands by” his language relating to the report of the earlier authorities.
Earlier, Commons chief Lucy Powell advised MPs: “We will not shy away from telling them the truth [the Conservatives] The economy collapsed”.
Speaking within the Commons, Treasury Chief Secretary Darren Jones mentioned the earlier Conservative authorities had “ruined people's lives across this country” by its “arrogance” and “recklessness”.
It comes because the pound fell to its lowest degree in a yr and authorities borrowing prices reached their highest degree in 16 years.
Economists warn that these rising prices might drive additional tax will increase or spending cuts as the federal government tries to satisfy its self-imposed rule of not borrowing for day-to-day bills.
Responding to an pressing query within the Commons, Jones insisted there was “no need for emergency intervention” in monetary markets.
Changes in borrowing prices are being pushed by “various international and domestic factors”, he mentioned.
Tory Shadow Chancellor Mel Stride mentioned Labour's tax rises would “swallow the British people with higher borrowing costs without any benefits”.
A “cease and desist” letter sometimes represents a warning that the recipient will face authorized motion if the alleged criminality continues.
In a letter despatched to Sir Keir on Wednesday, Truss's legal professionals say his statements about their shopper are “false and misleading”.
“Their publication is not only extremely harmful, but also extremely defamatory and indefensible… It would be difficult to avoid the conclusion that they were published in bad faith,” the letter mentioned.
Truss's legal professionals say they’re “seeking an amicable basis on which you will agree to stop the repetition of your patently factually incorrect and defamatory statements about our client.
“This request is made within the context of primary ranges of civility between senior politicians, and we belief you’ll reply accordingly.”
The letter argues that the movements in financial markets during Truss's tenure in Number 10 should not be classified as an economic crash.
In the weeks following Truss Chancellor Kwasi Kwarteng's mini-budget in September 2022, which included sweeping tax cuts, the market saw an increasingly adverse reaction and mortgage costs soared.
During the Conservative Party convention final OctoberTruss mentioned it will be “financial illiteracy” to suggest that the tax increase from Labor – at the time anticipated in Rachel Reeves's upcoming first budget – was a result of his economic legacy.
Last July, shortly after the Labor Party took workplace, civil servants modified paperwork He described the mini funds as “disastrous”, as he complained that it showed “gross” political bias.
Briefing notes on the King's Speech, which sets out the government's program of new laws – previously published on the government website – say the former PM's approach has damaged the UK's financial credibility.
The Cabinet Office said the documents had been “corrected and up to date”.
With inputs from BBC
