Jeremy Hunt insists Liz Truss is still ‘in charge’ despite U-turn on economic plan

JEREMY Hunt has insisted Liz Truss is still "in charge" of the government despite Trussonomics being ditched.  

The new Chancellor insisted the party have 18 months to turn their fortunes around before an election as he signalled painful spending cuts to come.

Brought in to replace the sacked Kwasi Kwarteng and restore credibility to Downing Street, Mr Hunt is now widely seen as the most powerful figure in Government as he attempts to reshape the Prime Minister's own economic plans to reassure the markets.

But he told the BBC that Ms Truss remains ";in charge" and insisted voters can still put their faith in her.

He said: "She's listened. She's changed. She's been willing to do that most difficult thing in politics, which is to change tack.

"What we're going to do is to show not just what we want but how we're going to get there."

It comes ahead of a crunch two weeks for the Government, as Mr Hunt bids to put together a new fiscal plan - effectively a full Budget - that can restore some order to the chaos of Ms Truss's first few weeks in office.

While the new Chancellor warned of "difficult decisions" and fresh "efficiency savings" for all departments, he declined to get into specifics about potential new cuts or what promises could be axed in a bid to save money.

He told the BBC: "I'm not taking anything off the table.

"I want to keep as many of those tax cuts as I possibly can because our long-term health depends on being a low-tax economy. And I very strongly believe that."

One measure being considered is a delay to Mr Kwarteng's aim of reducing the basic rate of income tax by a year, according to the Sunday Times.

Ms Truss was meeting Mr Hunt at Chequers today as rumours continue to swirl of plots to oust the Prime Minister.

JOE BLOW

While this morning, in an extraordinary intervention, US President Joe Biden controversially joined in the criticism of Ms Truss' plan.

He told reporters: "I wasn't the only one that thought it was a mistake," and called the outcome "predictable".

Asked about her original economic strategy, he added that, while he disagreed with her plan, it is up to the British people.

Mr Biden also dismissed concerns about the strength of the dollar: "The problem is the lack of economic growth and sound policy in other countries."

The move is sure to be met with disapproval from Ms Truss and her team at No10 - with US presidents expected to stay clear of commenting on UK policy.

Biden has been widely criticised for his own economic policies - with just 32 per cent of the US public approving of his handling of inflation, according to a poll by .

And meanwhile, just 36 per cent approve of his handling of the economy as a whole.

The US economy shrank at a 0.6 per cent annual rate from April through June.

Republicans have branded soaring prices in the US while the American economy shrinks as the "Biden recession".

On Saturday, Bank of England Governor Andrew Bailey said he spoke to Mr Hunt after his appointment on Friday.

Speaking from Washington, he said the pair had a "meeting of minds" on the issue of "fiscal sustainability" as he noted that the Office for Budget Responsibility is now "very much back in the picture".

But he also warned that interest rates may have to be raised higher than initially expected to tackle inflation.

Questions also remain over whether the Government will be able to win enough support from a divided party for a series of painful decisions on tax and spending that have already prompted memories of the austerity era under David Cameron and George Osborne.

In an article for The Sun, Ms Truss admitted that sacking her friend and ideological soulmate Mr Kwarteng had been a "wrench".

But she added: "We cannot pave the way to a low-tax, high-growth economy without maintaining the confidence of the markets in our commitment to sound money."