Former Prime Minister Liz Truss has hit back at Keir Starmer with a scathing legal warning, accusing him of peddling lies about her time in office.
Lawyers acting for Ms. Truss sent the Labour leader a cease and desist letter, demanding he stop claiming she “crashed the economy” during her short-lived premiership.
The fiery move comes as Truss fights to protect her reputation after relentless attacks from Starmer and Labour, who repeatedly blamed her government’s controversial “mini-budget” for economic turbulence back in 2022.
“False and Defamatory”
The letter, sent by top legal firm Asserson, doesn’t mince words. It brands Starmer’s accusations as “false and defamatory” and insists there’s no evidence to support his claim of an economic “crash.”
Quoting analysis from economist Andrew Lilico, Truss’s lawyers highlight that there was no recorded fall in GDP, no surge in unemployment, and no lasting damage to the economy during her time as PM. Instead, the letter points the finger at the Bank of England, citing its handling of the pension fund crisis and interest rate rises as the real culprits behind market turmoil.
The LDI Crisis: Not Truss’s Fault
The letter outlines how pension funds’ risky strategies involving Liability Driven Investments (LDIs) were at the heart of the chaos. It describes how the Bank of England’s actions during this time—specifically its interest rate decisions and bond sales—led to the spike in gilt yields, causing market volatility.
Far from causing a crash, Truss’s lawyers argue that her policies had minimal fiscal impact, with the mini-budget only introducing around £1 billion to £5 billion in new annual spending—a drop in the economic ocean.
“A Basic Lack of Civility”
The legal missive also calls out Starmer for his lack of decorum, saying his statements were not only “factually incorrect” but also a breach of the “basic levels of civility due between senior politicians.” Truss’s team is demanding that Starmer immediately stop making these claims, warning that they are causing ongoing harm to her reputation.
The letter reads:
“We trust that the spirit displayed by your Cabinet Secretary [in retracting similar claims] will be mirrored in your response to this request. False claims of this nature should not form part of public political discourse.”
Labour’s Favourite Line
Starmer has repeatedly used the phrase “Liz Truss crashed the economy” as a political weapon, including during the 2024 general election. Labour’s campaign heavily leaned on this narrative, despite evidence now emerging that challenges its validity.
The letter also raises eyebrows over the timing of Starmer’s comments, suggesting they were made to damage Truss’s credibility while she was running as a Conservative parliamentary candidate for South West Norfolk.
Will Starmer Back Down?
Downing Street has yet to respond to the legal warning, but the pressure is mounting on Starmer to address the claims. Truss’s allies insist she is determined to clear her name, with sources close to the former PM saying she is “not prepared to let these baseless accusations go unchallenged.”
One former Conservative MP told The Conservative Post:
“Starmer has been caught out. He’s been repeating these claims without a shred of evidence, and now Liz is calling his bluff. Let’s see how he wriggles out of this one.”
Truss Fights Back
Liz Truss, who served as Prime Minister for just 44 days, has faced fierce criticism for her economic policies, but her legal team argues that the facts tell a very different story. In their letter, they highlight how the economy actually grew in the months following her mini-budget and that unemployment remained at historic lows.
As the row intensifies, one thing is clear: Liz Truss isn’t going down without a fight. With this bold legal move, she’s sending a message loud and clear—she won’t let Labour rewrite history.
For a more in-depth analysis of the events surrounding the 2022 mini-budget and its aftermath, you may find the following video informative:
Main Photo: Picture by Simon Dawson / No 10 Downing Street
