PMQs live: Liz Truss accused of being ‘lost in denial’ over mini-Budget effects, but pledges no spending cuts

Liz Truss’s second-ever PMQs saw her accused of being “lost in denial” by the Leader of the Opposition as she was loudly heckled from both sides of the House.

Sir Keir Starmer levelled heavy criticism at the Government’s mini-Budget which has caused market turmoil.

“Avoiding the question, ducking responsibility, lost in denial,” the Labour leader said. “No wonder investors have no confidence in her Government.”

However, Ms Truss was able to offer some new policy pledges, as she ruled out public spending cuts and committed to a ban on no-fault evictions.

Today’s PMQs marks her first time at the despatch box since last month’s mini-Budget sparked market turmoil.

Ms Truss kicked off the session by committing to end no-fault evictions as promised in the 2019 Tory manifesto.

It had been reported that the Government was planning to keep the process in place, which had been heavily criticised.

She also said she would “absolutely” not make spending cuts, a pledge that prompted audible gasps in the chamber.

The PM then faced a grilling on her economic plans by both sides of the House, as MPs got their first opportunity to question her proposals.

Sir Keir kicked off his questions by asking if the PM agreed with the Business Secretary, Jacob Rees-Mogg, that the turmoil in the markets had nothing to do with the mini-Budget.

Ms Truss said her Government had taken “decisive action” to help people with their energy bills.

She added that there was a “global economic slowdown” and it was a “very difficult time internationally”.

The Labour leader said that Government tax cuts and borrowing plans had prompted “spiralling” interest rates which has hurt those applying for mortgages.

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Some house buyers have been put “back to square one”, he added, and many were “completely furious with her” because they could no longer afford or secure a mortgage.

In response, Ms Truss pointed out the Government’s help on energy bills and said that “when I came into office people were facing energy bills of up to £6,000 a year”.

She added that interest rates were not just a UK problem but were “rising globally”.

Asking his third question, Sir Keir said: “The economy’s in turmoil, people are really worried. This is really not the time to descend into absolutely nonsense attacks about last night.

“There’s no point trying to hide it. Everyone can see what has happened. The Tories went on a borrowing spree, sending mortgage rates through the roof. They are skyrocketing by £500 a month.

“For nearly two million homeowners their fixed-rate deals are coming to an end next year. They’re worried sick, and everybody in this House knows it. They won’t forgive.

“They won’t forget, and nor should they. When will she stop ducking responsibility, do the right thing and reverse her kamikaze budget which is causing so much pain?”

Responding, Ms Truss said: “I’m genuinely unclear” – prompting jeers from the Labour benches – “as to what the Labour Party’s policy is on our energy price guarantee”

“It was the biggest part of our mini-Budget. Are the Opposition saying they want to reverse it and they want to see people facing energy bills of £6,000?”

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Ian Blackford, the SNP leader in Westminster, said Ms Truss was “ignoring the damage and chaos of the mini-Budget”.

He asked the PM if she would “give up her desperate plan to save her Chancellor’s skin by scapegoating the Governor of the Bank of England”.

Ms Truss repeated that she was helping people in the UK – including Scotland – with their energy bills.

John McNally of the SNP, said the Prime Minister and her Government were “outrageously flirting with disaster financially and socially” – with mortgage repayment rises set to outpace the support on energy bills.

Ms Truss concluded PMQs by appearing to acknowledge that the Tories were performing poorly in the polls, and told the Speaker: “I think the last thing we need is a general election.”

As well as grappling with a grim economic outlook, the Prime Minister was on Wednesday having to deal with a warring party and plots to oust her.

Immediately after PMQs, she was set to go on a charm offensive in a bid to shore up her leadership.

She was expected to hold lunches with backbenchers and tour the tea rooms in Parliament, before giving a speech to the 1922 Committee of Tory backbenchers on Wednesday evening.

Her attempts to win over rebel MPs come after her mini-Budget sparked market turmoil and sent shockwaves through the her party.

Ms Truss has already been forced to U-turn on the headline policy of scrapping the 45p tax rate for highest earners, in a bid to calm the markets.

Her Chancellor Kwasi Kwarteng has had to bring forward his medium-term fiscal plan from 23 November to Halloween.

Now, the PM is faced with the prospect of a UK recession and more criticism from the International Monetary Fund (IMF), which said the Chancellor’s tax cuts and energy support package had made the Bank of England’s battle against inflation more difficult.

Shortly after PMQS, the Commons was set to hear an urgent question on the UK’s current economic situation.

Mr Kwarteng will be unable to answer as he is in Washington DC for the International Monetary Fund’s annual meeting. Another Government minister will step in on his behalf.

This story is being updated…