Liz Truss’ legal professionals have despatched a stop and desist letter to Sir Keir Starmer over his claims she “crashed the economy”.
The letter says Sir Keir’s continued declare the previous Conservative prime minister crashed the economic system with the September 2022 mini finances is defamatory and can “likely continue to cause serious harm to her reputation”.
It focuses on the Labour chief’s claims made in June final 12 months in the course of the basic election marketing campaign, and says accusations she crashed the economic system had been made with the aim of damaging public opinion of Ms Truss as she stood as a parliamentary candidate.
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Ms Truss, who stepped down as prime minister in beneath two months in cost, misplaced the South West Norfolk seat she had held since 2010 to Labour’s Terry Jermy in final 12 months’s election.
The letter additionally says it’s “false” to assert the mini finances crashed the economic system and offers particulars of a definition of “crash of the economy” by Dr Andrew Lilico, an professional from right-wing thinktank the Institute of Financial Affairs and managing director of financial consultancy Europe Economics.
Market motion following the mini finances didn’t represent a “crash”, the letter says, and accuses Sir Keir of displaying an “ignorance of basic economics” by doing so.
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The letter requires Sir Keir Starmer to cease saying Liz Truss crashed the economic system
The pound then fell to document lows towards the greenback, and there was one other sharp rise in the price of long-term authorities borrowing by 0.5 share factors after then chancellor Kwasi Kwarteng hinted there could be additional tax cuts.
This led to rising mortgage charges, with tons of of merchandise withdrawn, and an influence on UK pension funds.
Ms Truss’ legal professionals blamed the rate of interest adjustments on the Financial institution of England, “in particular by its poor handling of the liability-driven investment bonds (LDI) crisis, and its regulatory failures”.
It factors out the Financial institution of England is unbiased of presidency and says: “Thus the relevant rate changes were not ’caused’ by our client.
“These info had been clear as early as Could 2024, if not earlier than.”
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The letter argues there was “no rise in unemployment…no sustained loss of wealth”, and no “enduring economic impacts”.
It says Ms Truss and the mini finances didn’t play “a significant causal role in the financial market volatility of September/October 2022” and stated nearly every part, in fiscal phrases, had been introduced earlier than the mini finances.
The letter requests Sir Keir “immediately cease and desist” from repeating she crashed the economic system on an “amicable basis”.
“This request is made in the context of the basic levels of civility which is due between senior politicians, and we trust that you will respond accordingly,” the letter says.
