Lawyers for Liz Truss have written to Sir Keir Starmer, demanding that he stop the claim that the former prime minister “crashed the economy”. That letter says that these are “false and misleading” statements – potentially defamatory.They would have had the effect of skewing public opinion had it been heard in the run-up to the last general election in which Ms. Truss lost her South West Norfolk seat.
It, from Asserson lawyers, reports on statements made in June 2024 by Sir Keir on Ms. Truss having “crashed” the economy or to have “crashed” the economy. Its words are these: “Of particular concern are the false and defamatory public statements you made about our client in the lead-up to the UK general election from late May 2024.” The argument is that this was knowingly false and likely meant as a method of advancing political advantage as against Ms. Truss’ reputation.
Truss became the prime minister of Britain in September 2022. She was stepping down within less than seven weeks since then notorious mini-budget with its deep cuts to taxes. The budget, which included generous tax cuts, had caused a market backlash and was increasing mortgage interest rates. But her lawyers argue that the word “crash” is a misdescription of the economic damage done by those events. Referring to market movements during her tenure, the letter asserts, “Such rate movements cannot properly be described as a crash of the economy. To use such an expression is to display ignorance of basic economics and common usage of the term ‘crash’ when referred to an economy.”
The lawyers also contend that Sir Keir’s repetition of these allegations in the run-up to the 2024 general election implies an intention to cause harm to Truss’s reputation or for political leverage. They demand that the Prime Minister “immediately cease and desist” from making further similar statements.
During the Conservative Party conference in October, Ms. Truss referred to allegations associating tax rises by Labour with her legacy as “economic illiteracy.” She went ahead to bash what is in Rachel Reeves’ budget, ensuring her economic stewardship would be distanced from their impact.
